Let’s start with a concrete example. Replacing an old boiler at a Sugar mill will costs about 12M USD. This increases the heating efficiency from 60% to 80%, freeing up to 65,000 ton of bagasse per year. With a cost of capital of 15%, this translates into a 28 USD/ton of biomass.
Compare this with 50 to 60 USD/ton for the wood plantations which are the feedstock for the biomass pellets supplied to Japan, Korea and the EU… Half the cost.
Bagasse is a excellent renewable fuel. It is used around the world for power generation. The most striking example is Brazil, with 7GW of installed capacity. In Indonesia, PLN is not purchasing electricity generated from bagasse at a reasonable price. Indonesian mills have therefore not invested in the efficient use of bagasse, effectively wasting this fuel.
There are a limited number of sugar mills that are large enough to feed a torrefied pellet plant once optimized. It will not be sufficient to supply the entire regional biomass demand. This means a chance to generate long term producer surplus, since the cost is lower than that of wood plantations, which will likely remain the feedstock setting the price equilibrium.
This is your chance to secure
Other important aspect:
Unlike utility scale solar and wind, MOBIONU’s projects do not require approvals from ESDM or PLN, making it a much likely to succeed and faster to execute.
At current market prices for biomass pellets, our projects yield about 15% unlevered. These return can be further enhanced through carbon credits.
With most costs tied in CAPEX, it becomes to offer what international buyers have looking for: secure long-term agreements at a fixed price to match their FiT revenues.
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