CAPITAL.MY

Connecting Local Entrepreneurs with International Investors

Alternative Energy Electricity Generating System

Project Cost: RM3,000,000.00

Amount Invested : RM500,000.00

Amount Required : RM5,000,000.00 per 1 Megawatts

Knowledge / Experience Required: strategy; finance; sale & marketing

Proposed Investor’s Role:

Industry: energy / natural resources

Project Stage: seed

Information Memorandum:

Climate Scientist has long warn us that global warming is accelerating due to continuous rise of greenhouse gas emission of carbon dioxide into the atmosphere. The carbon dioxide is from fossil fuel based energy, many Government realize the need to promote the use of Alternative Energy to reduce the greenhouse emission and also because the price of fossil fuel such as Coal, Natural Gas will continue to rise, moreover these resources are not replenishable.

The focus of our concern is to generate electricity free from using fossil fuel, As at today there is no technology/product available to generate electricity that is consistent enough to replace the conventional method of generating electricity using feed such as Coal and Natural Gas.

Renewable Energy electricity that depends on natural resources such as Sun, Wind, River Water, EFB (empty fruit branch) and Gas from Land fills can only be supplementing electricity provider because most of these products/technologies depend on natural resources, which are not consistent enough as feed to generate consistent electricity.

After 2 and half years of research, we have develop a system/product that is able to generate electricity without the need of any feed such as Coal,Natural Gas, Diesel,Sun, Water, EFB and Land fills Gas, however, we just need a start up electricity for 5 minutes only.

In our system, we are able to generate electricity from 100Kw to 1Mw to 10Mw to 100Mw or more, our system is a modular system.

The process flow/technology of our system is already Patented with Malaysia Intellectual Property Organisation (MYIPO) and World wide Patent will be submitted soon.

Being a new product in the World, we need to build a working commercial pilot unit to demonstrate that our product/system is able to generate electricity consistent 24 hours seven days a week, this commercial pilot unit will be the showcase to the industry players locally and from overseas.

To build a commercial pilot unit with substantial electricity output for the industry players to test, we require RM3,000,000.00 of funding ( 400Kw system with consistent output for 24/7) note: 400Kw output is able to provide electricity to at least 340 houses with 2 air condition and basic amenities.

Most likely, after testing the output of our commercial pilot unit, the utility companies will award us Power Purchase Agreement for 21 years at agreed price per Kilowatt.

This year 2012, Energy Commission Of Malaysia will be calling for bidding for 4500Megawatts of electricity, equivalent to approximately RM680 million per month for 21 years. In Malaysia alone, demand of electricity increases between 3.5% to 4.2% per year i.e 680megawatts or approximately RM110 million per month. Our system is the cheapest per Megawatt compared to lowest system available now.

Contact Information

Azmi Mansor ( mansor.azmi@gmail.com)

Postal Address : 46, Jalan 33/70A, Desa Sri Hartamas
State : Kuala Lumpur
Post Code : 50480
Country : Malaysia

In stream gold prospecting and mining

Project Cost: RM 150,000.00

Amount Invested : RM 30,000.00

Amount Required : RM 120,000.00

Knowledge / Experience Required: general management; strategy; internationalisation

Proposed Investor’s Role: part-time; as consultant

Industry: others (Metal and Mining)

Project Stage: early expansion

Information Memorandum:

Started in Jan 2012,having involved extensively doing a river prospecting work using a gold detector and traditional method in river exploring for alluvial and small nugget of gold discovery. The selected site of prospecting work are based from the information provide by Mineral and geoscience data.The exploration has been focus along 8kms of river stream and the point of explorations has been determined by the result produced by gold detector and from the theory guided by pro.

Since my permit of explorations allow me to explore not more than 2msq with depth less than 5 foot.however my finding of gold are really driven me to apply a small scale of river mining using a portable mining machine,with a capacity of 5tons per hour. I have been submitted the applications for small scale mining permit and would be expected to be approved and awarded by mid of October 2012.

At present,i have been identified the supplier and suitable model of portable washing plant and the latest model of gold detector with the capacity of 15m in depth under water sonar signal amd 150m of range distance displayed by the attachable monitor and had been already provided the quotations.The supplier will be confirmed order after 30% of downpayment and will be prepared for shipment after 5 weeks from the date of downpayment had been made.

Since the gold mining explorations using hi-tec equipment are rare or never been practised in malaysia,the finance company seems to find themselves not having a good understanding of how this industry could generated income,however,based on my journal and recorded finding of alluvial gold,my calculatons will be equals to 5tons of processing will produced 3gms of alluvial gold..and 8kms of river with a 6 months of project completions,this industry are really provide an excellent ROI within a very shot period..with a more than 50% net profit margin,without any brain cracking to develop a good marketing theory,or suffer of business loss due to high operating cost.

Contact Information

Nik Mahadzir Nik Mat ( Nikmahadzir@gmail.com)

Postal Address : W2/31 Jalan Meranti,Pasir Mas
State : Kelantan
Post Code : 17000
Country : Malaysia
Telephone : 09-7909390
Fax : 09-7909390
Mobile: 012-3228539

Oil & Gas Manufacturing Fabrication & Machining Services

Leader in the design, and manufacture, maintenance and services provider of engineering disciplines to the oil and gas sector, upstream and downstream facilities, Industrial and Resource sectors throughout Asia, the Middle East, and Australia. With operations in all three major areas the company has strategic plans to increase market share in these regions.

The Company primarily began by servicing the heavy marine industry and carrying out heavy Business Opportunityfabrication for the mining industry. It later become a major supplier to the Oil and Gas sector by offering designing and manufacturing skid based water and chemical treatment equipment. It then involved installation, commissioning and planned maintenance of the equipment it produced. Typical systems included Water Treatment Plants, Oily Water Separation systems, Process/Metering Skids, Polymer Dosing/Chemical Injection Systems and Pump Stations.

The company has in recent years shifted its focus to take advantage of the growing market in the oil and gas industry by providing additional services such as complete EPCM packages and continued EPCC for both onshore and offshore activities. The Company today offers our clients a complete “Turn Key” packages, not only capturing the reliability and expertise of the Westralian systems, but also the continued site representation for field support.

The industry in general is continuing through a growth period as a result of increasing activities in the oil and gas sector as well as the mining industry. Due to experience in these market sectors, the intentions are for the business to continue the expansion into these focused market areas and have the manufacturing advantage of being the prime manufacturers as well as strategically locating itself to take advantage of the increasing levels of activity.

Key management has had considerable experience in this field, and has been involved in large scale projects in their individual capacities. The team has identified strong business prospects within the oil and gas sector, and will embark on its commercial plans within the next quarter. At present, management is in the midst of recruiting talent and resource in building and propositioning its products and services into the market.
The business strategy of the Company has always been to focus on providing an innovative product and high quality service to its customers. Revenue growth is expected to average over 30% over the next 3 financial years, with a major part of this contribution coming in from local companies.

FINANCIAL STATUS

The paid-up capital of the Company incorporated in Malaysia is RM1 million and Australia AU$500,000, and Abu Dhabi (AED$1 million).
Assets; Combined Malaysia/Australia AU$1.2million plus stock plus inventory
Current Project Values Australia; AU$ 1.5 million
Invoiced Value AU$ 1.3 million
Letters of Intent Value Australia; AU$ 5.1 million
Current Project Values Malaysia; MR$ 1.5 million
Invoiced Value MR$ 250,000
Letters of Intent Value Malaysia; MR$ 5.1 million
Project Negotiation MR$ 9.9 million
Project Negotiation Abu Dhabi AED$ 50 million
INVESTMENT PROPOSAL

It is the intention of the current corporate owner to relinquish shareholding in the total group for an investment into the organisation to allow the group of companies to meet the expansion strategy as set out.

The investor would see the shareholding being divided into a 60% / 40% ratio, for a investment of US$5 Million.

Should the investor not wish to take up shareholding, then the organisation is prepared to Profit share on all projects derived from the introduction in the region of introduction. This profit sharing would be at a rate of 5% to 8% of the net profit.

The Company is seeking private fund to invest in its group of companies in Malaysia, Australia and Abu Dhabi.

Seeking RM800K for Procure & Supply of Iron Ore Business

Project Cost: RM3.5m

Amount Invested : RM300k

Amount Required : Working capital

Knowledge / Experience Required: finance

Proposed Investor’s Role: full time

Industry: energy / natural resources

Project Stage: merger & acquisition

EXECUTIVE SUMMARY:

Our principle plan is to invite an investor for the total working capital or a collateral worth about RM800k for Exim Bank to provide the working capital. Of course the total working capital investment of RM3.5 million is preferred as it will immediately activate the implementation of the project whereby Exim Bank will require, the usual bank processing timing, about 2 months. We have everything ready including the stock to be crushed to suit the size required by the client.

Company History:

Company existed actively for 8 years as an International Procurement Company

Product / Service Description:

Secured Order in hand and upon success of first shipment, buyer intent for 3 years supply.

Business Opportunity:

Managed to convince a compliance international company worth about USD 20 billion. Source of supply is direct not third party.

Revenue Model:

Sale minus cost straight forward.

Management Team:

Combined experience of more than 20 years in similar trade from in house and contractors.

Current Status:

Confirmed Order by an established international company. Development cost more than RM300k. Projected sale of about RM4.0 million per shipment. Profit about RM400k per shipment.

Funding Milestone:

Local bank has reviewed business document with positive respond. Application to a local bank requires a collateral worth 20% of total working capital required valued at about RM800k.

Business Valuation:

Equity 50:50 of gross profit share. Sale minus cost received based on formal quotations from service providers and source of raw material.

Expected Return On Investment:

Within 2-3 months.

Investment Risk and Mitigation:

No risks. Stock available and buyer is confirmed with agreement.

Exit Strategies:

Appointment as company director and as shareholder of company with paid up capital of RM1.0 million and authorised capital of RM5.0 million. Client pays cash upon delivery FOB basis and directly to specific bank account. Investor can be the signatory of bank account.

Supporting Documents:

Confirmation Order from Mitsui to my company
Sale & Purchase Agreement
Letter of Intent signed between both parties for 3 years supply upon success of the first trial shipment
Latest Report for the extension of supply from 31 October 2014 to 31 January 2015
HSBC Letter of Support
Iron Ore Stock available
Full Report by CCIC on the available stock which is acceptable by Mitsui
Profit & Loss Projection based on actual quotation available
Empayar Baiduri SSM Report

CONTACT PERSON

Ridzwan Azizuddin ( ridz@ridzgroup.com.my)
Company Name: EMPAYAR BAIDURI SDN BHD
Postal Address : 13, Jalan Ibu Kota 5, Taman Ibu Kota
State : Gombak
Post Code : 53100
Country : Malaysia
Website : www.empayarbaiduri.com.my
Mobile: 0133747179

 

Stone Quarry operations in Peninsular Malaysia

Project Cost: RM2,500,000

Amount Invested : RM1,000,000

Amount Required : RM2,500,000

Knowledge / Experience Required:
general management
strategy
finance
production
sale & marketing
internationalisation

Proposed Investor’s Role:
full time
part-time
as mentor
as consultant

Industry:
energy / natural resources
manufacturing
industry products

Project Stage:
early expansion
start-up

EXECUTIVE SUMMARY:

Company History:

Our company has been awarded with a 30 years concession (ending 2043) by a state government to operate on a stone quarry to facilitate the state government infrastructure, development programs and their land reclaim projects with a guaranteed products buy-back from the government and open to those in contruction industry players.

Product / Service Description:

The quarry are generally used for extracting building materials, such as dimension stone, construction aggregate, sand, and gravel

Business Opportunity:

With 30years concession on this project and continuos products demand from the state government and other industry players, this is a low risk project.

Revenue Model:

All products produced from the quarry are contractualy bound to be sold back to the state government. However there is no restriction for the company to sell the same to other buyers mainly those from constuction industry.

Current Status:

All initials administrative are completed pending full operations.

Funding Milestone:

Our company has invested approx RM1mil in this project. Additonal funds are sort solely for operational purposes. With the additonal funds, the operation would start immediately.

Business Valuation: We are offering a ratio of 20:40:40(Investor).

Investment Risk and Mitigation:

This is state government project approved by the state via its investment GLC company. Investor(s) are welcome to view and evaluate all related approval papers and documentation related to this project including a site visit to the said quarry location.

Exit Strategies:

This is a long term investment. However subject to futher discussions, investor do has the option to exit after 12 months.

 

Waste to Energy Power Plant in Batticaloa, Sri Lanka

EXECUTIVE SUMMARY

The Office of the Ministry of Economic Development of Sri Lanka on March 2013 had given approval to XXXX (PRIVATE) LIMITED, a Company incorporated in Sri Lanka to build, operate and run the Batticaloa Waste-to-Energy Power Plant of 5 MW using Municipal Waste in the Eastern Province of Batticaloa in Sri Lanka.

Initially a subsidiary company of a Malaysian Company, listed in the Malaysian Bursa funded all the basic researches and feasibility studies and had obtained all the approvals, necessary to operate the Power Plant, on the understanding that the Company will come up with the total investment of the Project in exchange for 80% equity in XXXX. All approvals had since been obtained from an estimated expenses around US$ 200,000 for a period of 6 months. Unfortunately by late 2013, the Company could not proceed and was delayed. Ultimately the option to participate in the project expired.

Waste Studies for Batticaloa had been done by an independent waste management consulting group, HMRE Consulting Group , based in Germany, to confirmed the suitability and availability of Feed-stocks. Six municipals had signed the feed-stock agreements, plus a letter of assurance from the Deputy Minister that there will be sufficient feed-stocks to operate the Plant. A few meetings were held with the off-takers of Electricity, Ceylon Electricity Board, together with the officers from the Ministry of Economic Development and Ministry of Energy. Assurance had been given that the Ceylon Energy Board will sign the Power Purchase Agreement for the off-takes of electricity from the proposed plant, when the plant is in operation. Once XXXX is officially registered with the Board of Investment of Sri Lanka with new Investor/funders, official letter of approval will be issued, prior to official PPA been signed.

XXXX will be designing, fabricate and installed the latest advance gasification technology, using proven fluidized bed technology and maximizing the electricity output, based on turnkey installation. XXXX will jointly operate the plant for one year, after installation and commissioning. After the one year period, XXXX will be willing to enter into an Operation and Maintenance contract at a reasonable fee.

Another alternative will be for XXXX is to take minority Equity Stake out of the Foreign Portion of 80%, and be responsible for the management of the Power Plant’s operation.
The land for the site of the Power Plant has already been allocated with a size of 22 acres in Batticaloa Province with easy road access and also main power grid nearby, which will be part of the contribution by the XXXX to the Joint Venture project.

Based on the 10 years profitability projection, it is reasonable due to the favorable factors surrounding the project, to expect a Return of Investment (ROI) of 17%. ( If based on 80% Equity, it will be around 14%). In conclusion, the Waste to Energy Power Plant in Batticaloa in Sri Lanka, is a very viable project due to the fixed financial income with assurance of supply of sufficient feed-stocks, high rates for electricity off-takes, as well as world class technology, yet economical, more durable and little maintenance requirement.

 

Coal Mining in South Kalimantan – Indonesia

Project Cost: $ 3,451,554

Amount Invested : $ 46,296

Amount Required : $3.4 million

Knowledge / Experience Required:
general management
strategy
production
sale & marketing
internationalisation

Proposed Investor’s Role: as consultant

Industry: others (Mining)

Project Stage: start-up

EXECUTIVE SUMMARY:

Company History:

Begins with our experience in a mining company, We had formed a new company that fully dedicates its resources to trade minerals or others mine products. The expertise we gained from experience in a mine company, especially in the mine management, quality control of product until shipment, and trading coal.
We are from CV. Hidayah, as the Coal Mining, General Contractor and Trading in South Kalimantan precisely in Banjarmasin, South Kalimantan, Indonesia. The company is engaged in general contracting, coal mining and coal trading. Where the company has a license from the government of Indonesia to address the above-mentioned fields. Other than that the company is already registered in the notary\’s office in banjarmasin.

The company won the trust of the owner of the concession to mine in the area that they have, so we have letter the holder single partnership from the owner of concession. Mr. Syamsul Alam Ashady: Director has 9 years’ experience job in General Contractor, Trading and Mining and Heavy Equapment Dealer. 4 Year as managing operational company. In 2009 syamsul already holds 20 branch companies engaged in the automotive field as Purchasing Manager.

Mr. Syamsul Alam Ashady never plays a role as an operational manager at two different companies, namely in 2008 and 2012. Where the calculation as operations manager for 4 years. He handles general contractor companies, coal mining and coal trading. He had handled directly in the field of coal mining, so the direction and instruction to be more effective and efficient to achieve the desired targets.

Mr. Syamsul Alam Ashady focusing on the Energy and Natural Resources Industry and will continue to use a good relationship with several companies and international business development experience to build a CV. Hidayah as a major energy and power of Natural Resources in South Kalimantan – Indonesia.

Product / Service Description:

Coal Mining with Binuang, Province Tapin, South Kalimantan with an area of 543,10 hectares and deposit estimated that 30,000,000 MT with calorie value in Mine is GAR 4500 KCal. The stripping ratio is 1: 4 with a thickness of coal that is 4 – 8 meters. And the houling distance as far as 32 KM to Port/Jetty is KPP (Kalimantan Prima Persada) that have mileage to the vessel for 18 Hours.

Register for full business plan or contact the following person directly…

Investor Registration

CONTACT INFORMATION

Syamsul Alam Ashady ( syamsulalamashady@yahoo.co.id)
Company Name: CV. Hidayah
Postal Address : Jl. Nakula IV Blok VIIIC No.11 Rt.025 Rw.003 Komplek Bumi Pemurus Permai
State : Banjarmasin
Post Code : 70248
Country : Indonesia
Telephone : +625113264437
Website : n/a
Mobile: +6281351446500

Iron ore trading business seeking short term loan

Project Cost: Rm5 million

Amount Invested : Rm100000

Amount Required : Rm 4.9 million

Knowledge / Experience Required: finance

Proposed Investor’s Role: part-time

Industry:
energy / natural resources
trade

Project Stage: start-up

Information Memorandum:

Hi my name is Faiz and i am from Xplor Resources Sdn Bhd. We are a resources trading company based in Kuala Lumpur, Malaysia. We are currently involved in the trading of iron ore supplies and also metallurgical coal.

Our company has recently managed to reach an agreement with our buyer which is an international trading company based in Hong Kong to supply iron ore. We are seeking for a short term loan of rm 4.9 million fo a period of 6-12 month. The funds raised will be used as a working capital to acquire the supplies of iron ore at discounted price by purchasing in cash. We guarantee a return on invested capital of 1.5% each month up till the end of our loan term. We are planning to have the first shipment out in December 2012.

Contact Information

Faiz suffian ( Faizdsuffian@gmail.com)
Company Name: Xplor Resources Sdn Bhd
Postal Address :
Level 26, Menara Citibank,165 Jalan Ampang, Kuala Lumpur
State : Wilayah persekutuan
Post Code : 50450
Country : Malaysia
Telephone : 0321697350
Fax : 0321697312
Mobile: 0177612333

Iron ore mine land JV opportunity

Approximately 62,000 acres of iron ore mine land. We are not expecting one investor to take up the entire land but at least a minimum of 1000 acres. We have 2 nearby ports for logistic purpose. Interested investors have to do their own exploration in the land that we will provide.

SUMMARY

1. For 1000acres, estimated deposit is around 20million metric tonnes to 100million metric tonnes and its gona be surface mining.

2. Estimated grade is around 57 to 62.

3. Expecting a JV venture, where we will come out with the land and the investor to come out with the financial investment to operate the mine. The proposed JV share ratio will be 51% for the investor and 49% for the state government.

4. If the investor is not keen for JV, they can operate the iron ore mine by themselves 100% but some sort of profit sharing have to be agreed which is subject to negotiation.

5. The Geologist or COA ( Certificate of Analysis ) report is not available for the land as its still a virgin land with iron ore deposits. I sincerely advice you to bring your own geologist and do your own exploration to get a genuine result.

6. For 1000acres, the initial exploration work where rental of machinery needed and that will cost you approximately RM300k to RM500K. Secondly, approximately RM10 million to RM15 million over a period of 3 to 6 months during mining operation depending on the size of the operation. You will get a break even after a maximum of 7 to 10 months with a minimum production of 20k metrics ton per month.

7. What i have sent you is just a summary but document evidence will be presented in the meeting session if the investor is really keen to proceed. The documents are confidential in nature hence we will arrange a meeting session to table it.

Generating Carbon Credits from Energy Efficient Buildings

EXECUTIVE SUMMARY

Why this Project?

This paper explains the reasoning behind the Building Virtual Power Stations (BVPS) Project and how various stakeholders can gain from their involvement.

The world is undergoing enormous changes in climate, with the primary reason considered to be due to the emission of Greenhouse gases into the atmosphere from our use of fossil fuels from industrial activities. Activities such as generating and using electricity, transportation of goods and people, and even from our commercial scale agricultural activities.

What is a Virtual Power Station?

Part of the response to those outcomes are to reduce or modify the activities that generate those emissions. When reductions in energy usage are sufficient (we are using 1000MW coal burning power station as a standard power station size and type), either in an individual project or via the aggregation of multiple reduction activities, then it removes the need for construction of a new power station to cater for that energy usage. Therefore, by saving that energy usage, it can be considered that there has been a Virtual Power Station created; hence the Project is called “Building Virtual Power Stations”. And for every 1000MW of energy saved, there is a reduction of between 6M and 10M tonnes of CO2 (depending on the coal type used). For the purposes of this Project, a standard 8M tonnes of CO2 emission are saved every year for every 1000MW “Virtual Power Plant” built.

Energy Saving Areas

One area that is considered ripe for opportunity is in the reduction of energy usage (and resultant reduction in CO2 emissions) from commercial buildings and other business-related facilities. For example, Governments and businesses the world over (including Malaysia) are promoting Green Buildings standards, both for new buildings and for retrofitting, as well as encouraging energy reductions across business generally. Right now in 2010, the Malaysian government is providing funding through the Green Technology Funding Scheme (and other schemes) to enable businesses to increase the use of more energy efficient materials and practices. Many other countries are doing the same.

The opportunity presented in this paper is to use that lower energy environment to not only encourage the continued growth of the Green Building industry and the other sectors, but to capture the positive by-product of those activities; (i.e. the reduction in CO2 emissions), to create a pool of saleable Carbon Credits.

Aggregation and “Feed-In”

The way that would be done is to aggregate the CO2 savings generated under a UN Clean Development Mechanism (CDM) project, as the individual savings from any one building or facility are insufficient to warrant the costs involved in developing a CDM project. The emission reductions from “greening” buildings and facilities could be available from any developing nation (see more on the potential countries below).

A “feed-in base” will be established by partnering with Environmental Consultants who conduct environmental audits and reviews and recommend energy efficiency measures for governments and industry. As they finalise audits and recommendations are implemented, the savings will be “fed-in” to the Project for aggregation purposes. A similar approach has been taken in the forestry area, where farmers are paid to plant stands of trees and the resulting CO2 reductions are aggregated into a pool managed by the CDM project owner.
Again, micro projects in Africa where wood burning stoves have been replaced with solar stoves, provide another example of aggregation.

By branding the CDM Project “Building Virtual Power Stations” or BVPS, (a term coined by the Asian Development Bank for a similar project, although the ADB project was not aimed at “banking” carbon credits), the concept will be easily understood by government, business and the general public, allowing support to be gained from all sectors.

Benefits for Stakeholders and the broader community

The Project will be a hybrid social improvement and profit driven entity, and will derive revenues from the sale of the aggregated carbon credits. Business will have the opportunity for CSR branding, i.e. their owned buildings or the buildings they lease being a BVPS building, indicating both energy efficiency and social awareness. 35% of earnings will be used to fund social improvement projects in developing nations.

Environmental consultants will have opportunities to leverage off their existing activities, add value to their client transactions and improve their own brand image.

The Process
The process for establishing the BVPS CDM Project consists of:

1. Developing the Project Framework

2. Registering the Project with the UNFCCC

3. Undergoing the UNFCCC CDM Project Methodology Review

4. Gaining the partnership of Environmental Consultants currently conducting energy efficiency reviews for government and business clients

5. Creating an Energy Efficiency Review Data Management web based platform which enables Environmental Consultants to enter baseline and post-review implementation data into the system to assess energy savings and CO2 emission reductions.

Revenue Streams

Carbon Credit Unit (CER) Sales – The Project will aggregate the small CO2 emission reductions from multiple commercial sites and create a pool of saleable CERs. This pool will be made available to the market for those entities that require CERs to meet their mandatory compliance situations.

Government Grants and other funding – There are numerous grants and other types of funding available from Governments around the world – where relevant, the Project will apply for those funds to assist in the growth of the feed-in base.

Locations for Energy Efficiency Projects

CO2 emission reductions from all non-developed nations that are classified as Tier 2 countries under the Kyoto Protocol can be used in the aggregation process.

These include (but are not limited to) Malaysia, Indonesia, Singapore, Taiwan, Vietnam, Thailand, Philippines, Korea, China, all African countries and most South American countries. As can be seen, the scope for gaining feed-in projects is very large.

Competition & Challenges

Competition
Competition is always in place for any sector with profit potential. However, there are no known direct competitors providing this service; if there were, it would make the marketing and branding of the service even easier as there would be some awareness in the market. However, even with any current or future competitors, the market is so large that there is sufficient to share, and collaboration is even a viable option.

Challenges
Other challenges include:
.
Gaining UNFCCC approval and accreditation of the Project – it is believed that there are no inherent grounds for rejecting a Project application of this nature, however it is intended to use very experienced consultants to tailor the Project proposal to suit the UNFCCC CDM criteria.

Gaining sufficient “Feed-In” collaborators – as this project will provide consultants, governments and business with a convenient opportunity to participate in a program that uses already generated “products” (i.e. carbon credits or CERs), and will offer social community benefits and CSR / branding benefits for those organisations, it is believed there will be sufficient collaboration generated to achieve significant outcomes.

Funds Being Sought and Utilisation of those Funds

Projected Company Valuation
The valuation of the company (post-funding) based on 2 Virtual Power Plants being built every year (from Year 2) is USD$96M (based on 16M tonnes of CERs being available for sale at a wholesale price of USD$5 per tonne and nett margin of USD$2 per tonne x 3 years earnings).

Funds Being Sought
The funds being sought from investors are USD$1M, which will gain the investors 10% equity in the company. Based on the projected post-investment valuation of USD$96M, this is an 85% discount on the projected value for a stake of this size. Alternatively, a trade partner may agree to provide working capital as required for a negotiated percentage, or as a means of accessing funding via the Malaysian Government Green Technology Fund.

Use of Funds
In the case of direct investor funding, the promoter will receive USD$100,000 as payment for work and services performed in the establishment and ongoing management of the business. The remaining $900,000 will be utilised to as working capital to gain the UNFCCC accreditation for the Project, to build the collaboration networks for large scale “feed-in” and for marketing and branding to establish the Project as the leader in its field. The business will be self-funded from that point from CER sales revenues.

Alternative funding avenues will see a negotiated outcome for the Promoter.

Return on Investment and Investor Exit Strategy

Potential Exit Options
It is planned to explore potential synergy partners within the first 3 years of operation to locate trade sale and other exit options for investors. These partners may be environment related companies wishing to enhance their client value offering, or companies from other sectors who find the association with such a project of value to them.

Projected Returns
The investment of USD$1M will see dividends paid from year 3, with the intention at that time to retain 25% of earnings for future enhancements and expansion, while returning 75% of earnings to investors as dividends.

At year 3, investors may choose to utilise the entry of identified trade sale partners to exit with a projected payment of USD$9.6M for the 25% stake (based on projected value of $96M at that time) Alternatively, investors may opt to remain as longer term shareholders, should they see the future growth of the business as promising.


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