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RENEWABLE ENERGY PROGRAM FOR EUROPE

INITIAL BIOMASS PROJECT PROPOSAL: 1st PHASE

Project Proposal

1. Introduction of Project

Most of the European countries are experiencing electricity generation shortage; the
supply cannot match the basic needs of the population. This is due to various inadequate
and costly options made earlier on by governments and by many exogenous aggravating
factors which are worsening the situation as time goes. Many sustainable solutions are
available but the lack of focus to deliver low cost electricity is hindering the prospects for
the entire economy to develop. As a result, the cost of generating electricity being too
high as compared to other Regions of the world, the companies cannot produce
competitive products in their own domestic market impeding any long-term viable
business and production activities within the Region. Therefore, the need to get away
from the existing power generation systems which are unfortunately mostly based on
types of all good feedstock sources except the right and sustainable ones; especially for
countries importing oil. The challenge facing most of these countries is how to generate
enough low cost and sustainable electricity to cater for people needs (for both household
and for economic activities). GEO TECH ENGINEERING has therefore teamed up with
leading energy partners to propose an ambitious program covering the entire Europe
Region where it will be economically feasible. The program is broken down in five distinct
phases. The first phase consists in deploying within the West Europe sub-region ten
Biomass power plant projects of 10 MW to 35 MW through a power purchase agreement
to be signed with the in-country local utility company and backed up by the government.

GEO TECH ENGINEERING has decided to start in the northern part of Senegal, in the
district of Saint-Louis with its first 30 MW biomass power plant capacity to provide reliable
clean renewable base electricity 24/7; over 8,300 hours per year to inject 210,000,000
kWh into GREEN BIOLOGICS.’s grid sold at US$ 0.14 per kWh. GEO TECH
ENGINEERING is currently securing a 2,100 HA farm (99 years leased land at no cost)
which will produce an average of 100 metric ton per hectare of dried grass to be used as
feedstock for the direct combustion process by the power plant.

2. Business Model
The business model is based upon the carefully drafted “Take or Pay” provisions of the
Power Purchase Agreement to be signed between GEO TECH ENGINEERING and
GREEN BIOLOGICS. in England for the implementation of this first phase; the same
template is to be used thereafter with the local utility company backed up by the
government in the other hosting countries within the subregion.

a. Operational Plan:

GEO TECH ENGINEERING concept: Biomass Power Plant co-located with GEO TECH
ENGINEERING Power Grass dedicated energy crop farm. This is described as a closed
loop power plant. Water and sunshine come onto land and electricity comes out.
Elements of Closed Loop Biomass Power Plant:

b. Marketing Plan & Growth Strategy:

average selling price per kWh of US$ 0.14 and over 2 billion kWh of clean renewable
electricity to be injected into West European Grids. The potential to replicate this power
plant is huge, and the new financing opportunities may be of great help to achieve the
program ambition. the potential market is to be part of the energy mix as renewable
energy producer player that can provide up to 5% of the
1 billion European energy needs as our target by 2023. ty companies, governments,
Policy makers and indeed an efficient banking system in place to fund such programs.
3. Operational Timeline

• GEO TECH ENGINEERING is the project developer and will sign the Power Purchase
Agreement with GREEN BIOLOGICS.

• EPC contractor for power plant guarantees performance, cost and schedule
• Power plant and plantation in operation within 24 months from financial closing

5. Technology Description

GEO TECH ENGINEERING has acquired and secured the property rights to use and
grow its Power Grass all along the project lifespan within Europe. Below are shown some
characteristics of our unique feedstock.

5 m tall GEO TECH ENGINEERING Power Grass ready for harvesting.

GEO TECH ENGINEERING Power Grass can be harvested at 4-5 m tall twice a year for
at least seven years. It is a perennial grass; there is no need to replant it every year, as it
grows back itself.

GEO TECH ENGINEERING Power Grass has the highest yield of any crop in the world,
and this makes it the lowest cost feedstock producing the lowest cost biomass
electricity.
GEO TECH ENGINEERING Power Grass is extremely well-characterized.
It has been tested by many companies and laboratories and the results are consistent. A
sample of the data is provided below.

GEO TECH ENGINEERING


Sun Dried (as Power Grass
Power Grass Proximate Unit
received) (Bone dry)
Analysis
Total Moisture % 14 0
Volatile Matter % 65.68 76.37
Ash % 3.59 4.17
Fixed Carbon % 16.74 19.46
Total Sulfur % 0.11 0.13
HHV MJ/Kg 15.85 18.43
LHV MJ/Kg 14.52
Biomass power plants can also run on agricultural waste, but agricultural waste is
seasonal and is not generally available on long-term contracts. The agreement reached
to use this dedicated energy crop will give GEO TECH ENGINEERING the long-term
feedstock supply required since we are growing it in our own capacity at our co-located
farm. GEO TECH ENGINEERING Power
Grass is also suitable for making cellulosic biofuels such as ethanol and butanol,
and biochemicals and bio plastics. GEO TECH ENGINEERING Power Grass:
A tropical climate is needed for the GEO TECH ENGINEERING Power Grass to reach
its fullest potential. It does survive the South European winter freeze and is adaptable to
a wide range of soils, but it does not like to be waterlogged, grown in heavy clay soils, or
in former rice paddies. To achieve the high yields, it requires significant rainfall or irrigation
equivalent to about 1000 mm per year or more. If there is a long dry season, irrigation
may be needed. The GEO TECH ENGINEERING Power
Grass is a natural grass. It is not genetically modified, and it is not an invasive species.
To be a reliable source for a power
plant running 24 hours a day all year long, GEO TECH ENGINEERING Power Grass
must be professionally grown with good agronomy.
However, it is not difficult to grow, and the farm employee will be easily trained. Planting
and harvesting is anticipated to be
performed manually even though we could have opted for mechanization.
Our biomass power plant has high-efficiency- 30% and requires about 55 ha of GEO
TECH ENGINEERING Power Grass per megawatt.
Together with our prudent approach of a 25% reserve, it makes it 70 ha per megawatt.
Therefore our 30 MW power plant
would need 2100 ha of planted GEO TECH ENGINEERING Power Grass.
Schematic of a the 30 MW biomass power plant showing bales of GEO TECH
ENGINEERING Power Grass entering the plant at the bottom
left of the diagram, in parallel with rice husks or other agricultural waste shown at the top
left. The red boiler is specially
designed to burn straw. The boiler produces heat which boils the water shown in blue to
make high-pressure steam that is
forced through a turbine connected to a generator to produce electricity. This is the same
process that is used for coal or oil
fuelled power plants.
6. Industry Analysis
ELECTRIC POWER CONSUMPTION EVOLUTION (KWH PER CAPITA) IN SENEGAL
The Electric power consumption (kWh per capita) in Senegal was 196 in 2009, according
to a World Bank report, published in 2010. Electric power
consumption measures the production of power plants and combined heat and power
plants less transmission, distribution, and transformation losses and
own use by heat and power plants.
The latest figures show that the need for IPP generation is very strong as GREEN
BIOLOGICS. is still experiencing severe shortage to
meet the expanding demand for cheap electricity.
With the injection of 210 million kWh into the existing grid at a price of US$ 0.14, GREEN
BIOLOGICS. will be able to start lowering its
average price per kWh sold to its customers, while connecting many prospective new
rural household customers to its grid.
An extract of the latest figures related to power generation in Senegal (Source
GREEN BIOLOGICS.’s website):

 Power Generation: 2,617,770 MWH

 GREEN BIOLOGICS. (State owned) 1,800,026 MWH

 IPPs 817,744 MWH

 Turnover:

 Annual production sold: 2,062,567 MWH

 Average selling price kWh 118 CFA Franc (US$ 0.236 kWh)

 Total sale (CFA F Million): 243,383


 Customers:
 Number of registered customers: 880,082
 Average annual consumption: 2,975 MWH
NB: Conversion rate US$ 1 = CFA Franc 500
7. Project Impacts
a. Environmental Impact:
It is not anticipated any negative or significant environmental impacts in terms of GHG
reduction, air quality, energy
efficiency over other processes or water quality; instead the ash from the power plant will
be dispatched to local women
farmers to enhance their productivity. In addition, the power plant is carbon neutral as the
growing GEO TECH ENGINEERING Power Grass
plants breathe and store carbon dioxide from the atmosphere. Burning plants in the power
plant releases CO2 back into the
atmosphere. However, since the next crop of growing plants reabsorb the carbon dioxide-
it makes the overall process
carbon neutral. A final important point to stress is the savings made over fossil fuel for
equivalent power generation of 210,000,000 kWh per year.
b. Social Impact:

As indicated above, GEO TECH ENGINEERING has opted for manual planting and
harvesting as this will rather allow using direct labor and therefore injection additional
long-term cash in the local communities around the farm and the power plant. GEO TECH
ENGINEERING has also committed to its social responsibility in building and participating
in the proper running of medical facilities, promoting women and children literacy
programs as well as supporting schools in the immediate villages surrounding the project
site.
8. Proposed Investment / Financing Structure

The project total investment amounts to US$ 70 million financed by a third from Equity
and two third by debt.

9. Projected Data Summary


Operating Data
2015 2016 2017 2018
Summary
$29 400 $29 429 $29 458 $29 488
Turnover
000 400 829 288
$21 462 $21 195 $20 915 $20 619
Gross Profit
000 930 188 039
$11 686 $11 907 $12 113 $12 136
Income Before Tax
790 481 498 107
$11 686 $11 907 $12 113 $12 136
Net Income
790 481 498 107
$6 686 $13 594 $20 707 $27 843
Retained Earnings
790 271 769 876