Energy Business Development Opportunity

Opportunity Summary

Management:

President: Mr. Vebhi Koc
VP Business Development: Mr. David Zeidman
 
Industry: Energy production; renewable
 
Number of Employees: 12
 
Amount of Financing sought: (v3.2)
4.5m euros towards 50% equity
 
Current Investors (private investors):
50 % Turkish Nationals
50% U.S. and Australian Multi-nationals
(golden share w/veto held by U.S. multi-national)
 
Use of Funds: 
3.5m euros CAPEX for 12MW cogen establishment
1.0m euros feedstock / operating costs
 
IRR: 26% with TREFIT PPA 5 year outlook
Dividend: 23m euros
 
Note: IRR/ROI includes debt service on 9m euros and excludes taxes (20% corp) and depreciation.
 
 
 
Business Description:
 

BTP will establish/operate an off-the-shelf 12MW Co-Generation facility utilizing readily available low-cost ‘2nd Generation non-food biomass biodiesel’ (BTP NexGEN Biodiesel) as feed to ten MW diesel electric generation systems (DEGs) with the waste-heat of the ten MW DEGS captured by two MW Combined Heat & Power (CHP) modules thereby producing a total of  12MW of renewable electricity.
 
Business Marketplace:
The country of Turkey has amended the Renewable Energy law (#5346) by approving a Renewable-Energy Feed-In Tariff (TREFIT). The terms of the TREFIT Power Purchase Agreement (PPA) for biomass is a 20 (twenty) year term period at 14 (fourteen) cents euro per kWh with no digression until year 11 (eleven).   
 
Company Summary:
BTP is an independent owner, operator, and developer of the BTP NexGEN biodiesel refinery; a commercially viable renewable (no technical barriers; TŰV certified August 2009) 2nd Generation non-food biomass biodiesel pilot plant facility with an operating production capacity of 13,500 metric-tons-per-year (tpy) established/commissioned in August 2008.  The company originally established its first commercial 1st Generation biodiesel refinery in 2005 which was retired in 2006 as a direct result of price swelling in the food oil feedstocks.
 
Management: Mr. Vehbi Koc, a metallurgical engineer and member of the board of directors of the biodiesel association in Turkey has 5 years hands-on biodiesel operation/engineering experience.   Mr. David Zeidman, an Intellectual Property Analyst/Software-System Engineer has 4 years of hands-on experience in cleantech operations including but not limited to founding/co-founding/managing three cleantech ventures since 1995
. 
 
Investment Highlights
BTP has shifted from a producer of non-food biodiesel for transport usage to a power-generating focused company and has a strong growth profile given its ability to enter the highly profitable Turkish power generation marketplace with the initial establishment / commissioning of a 12MW BTP PowerGen CoGen facility by the 3rd quarter in 2010.   Implementation of the co-generation project will be conducted by an experienced Power Utility Integrator Service provider with oversight / validation by a reputable third party ISO certified engineering company.  
 
Development Profile
BTP expects to establish/commission additional BTP NexGEN Biodiesel and BTP PowerGen CoGen facilities ultimately reaching an additional net renewable electric production capacity of 60MW within three years requiring an additional 50m euros in CAPEX.   Furthermore, by the end of year-1 BTP will commission a biogas system utilizing readily available agricultural waste which will complement the BTP PowerGEN system thereby realizing an operating cost of 7.5 cent euro per kWh from year-2.
  R7 R8 R9 R10 R11 R12 R13
12MW BTP PowerGEN and 14,965 tpy BTP exGENfacilities and biogas 8.760.000 m3py(agr.waste) Investment Year-0 (establishmentRespond to this opportunity months) Year-1 Year-2 Year-3 Year-4 Year-5
Gross Revenue   € 0 € 14,515,200 € 14,515,200 € 14,515,200 € 14,515,200 € 14,515,200
Operating Expenses (increasing 4.0% annually from year-2)   € 0 € 8,794,188  € 9,145,956  € 9,511,794  € 9,892,265  € 10,287,956 
Net before debt service, taxes and depreciation (EBITDA) € 16,500,000  € 0  € 5,721,012  € 5,369,244  € 5,003,406  € 4,622,935  € 4,227,244 
EBITDA Margin     39.4% 37.0% 34.5% 31.8% 29.1%