VPOMEWES – The Total Palm Oil Mill Solution

VPOMEWES – The Total Palm Oil Mill Solution

Project Cost: RM3,100,000

Amount Invested : RM100,000

Amount Required : RM3,000,000

Knowledge / Experience Required: finance

Proposed Investor’s Role: part-time

Industry:
energy / natural resources
agriculture

Project Stage: Startup

EXECUTIVE SUMMARY:

Company History: Company History:

Mr. Rama, the Technical Director, is a marine engineer by profession and has over 20 years of experience in the Oil & Gas Industry. He recently quit his job to venture into this project, which he has been developing in his mind for more than a decade. He has spent thousands of hours in designing and redesigning his version of transporter before finally decided to build the actual unit for commercial purposes.

Mr Gopal, the CEO, is a degree holder in the field of Agribusiness, majoring in Financial Management and has worked with local banks and finance companies before. Currently, he is teaching Physics and Additional Mathematics at an international school. He is also a member of MENSA Society International.

Product / Service Description:

We are planning to introduce The Total Palm Oil Mill Solution, which will reduce the BOD level to below 20 parts per million as under the Environmental Quality Act (1974), the Department of Environment has set a limit of 100 parts per million (ppm) for BOD levels before a mill is allowed to discharge is effluent into the surrounding environment.

Business Opportunity:

The processing of oil palm fresh fruit bunches (FFB) primarily for palm oil also results in the production of wastes, in the form of palm oil mill effluent (POME), empty fruit bunches, mesocarp fibre and shell.
When the industry was at its infancy in the 1960’s, ignorance compelled us to dispose POME into the waterways or to adopt other methods at our convenience. By the 1970’s the growth of the industry was literally exponential, bringing along with it pollution, which the waterways could no longer handle – so much so that palm oil processing became synonymous with POME pollution.
Tonne for tonne, the oxygen depleting potential of POME is 100 times that of domestic sewage. The industry thus faced a major problem, as it virtually lacked any proven technology to treat POME.
It also results in the leaching of contaminants that pollute the groundwater and soil, and in the release of methane gas into the atmosphere.
On average, for each ton of FFB (fresh fruit bunches) processed, a standard palm oil mill generate about 1 tonne of liquid waste with biochemical oxygen demand (BOD) 27 kg, chemical oxygen demand (COD) 62 kg, suspended solids (SS) 35 kg and oil and grease 6 kg
POME is a non-toxic waste, as no chemical is added during the oil extraction process, but will pose environmental issues due to large oxygen depleting capability in aquatic system due to organic and nutrient contents. The high organic matter is due to the presence of different sugars such as arabinose, xylose, glucose, galactose and manose. The suspended solids in the POME are mainly oil-bearing cellulosic materials from the fruits.
Dozens of methods have been developed to control POME pollution, including decanting and drying, evaporation, coagulation, flotation, ultrafiltration, and various
However, there has yet to be any mill in the world which is operating on a zero-discharge basis
Our VPOMEWES system is close to that and on top of that will also produce additional energy to be recycled and fertiliser as added revenue.

Revenue Model:

We plan to introduce our system to over 100 over palm oil mills in Malaysia for RM5 million each (for complete setup). Total cost setup is estimated to be in between 3.5-4 million and therefore, can expect RM1 million profit from each system. We have the capacity to make 4 units per year.

Management Team:

Management Team: Mr. Rama, the TD will head the project and will be in-charge of the whole team
Mr Gopal will be in-charge of overall managemennt and Finance.
Mr. Rajasegaran, a very experienced personnel in the industry, is willing to join full time once the fund is available to start the project.

Current Status: Current Status:

We have already set-up office, fabyard and also done initial brainstorming sessions as well as crucial FEA studies on main truss. Comprehensive Gantt chart is available upon request.

Funding Milestone:

Funding Milestone: We need RM 1 million to start the project as we need to make a miniature model which will be used for demonstration purposes. Once it’s done, we need to get into the marketing part of it by inviting the major players in the market and demonstrate to them.

Business Valuation:

Business Valuation: We propose profit sharing of 30% with the investor.

Expected Return On Investment:

Expected Return On Investment: It’s 30% for the first year itself and estimated to be 40% from second year onwards. Comprehensive cash flow analysis is available upon request.

Investment Risk and Mitigation:

Most of the palm oil mill owners are generally reluctant to any ideas to reduce the POME as it involves a lot of money. They only comply when government gets serious in making them comply with the Law

Exit Strategies:

Investors can exit by giving 3 months notice and all their investments will be paid in full. However, it is only applicable after 6 months.

CONTACT PERSON:

T Gopal Thirumalai
Kuala Lumpur

CAPITAL.MY