Sugar mills

The lack of domestic demand for biomass is damaging Indonesian sugar mills. Foreign peers have invested in energy efficiency, freeing up sizable amount of bagasse, and generating up to 30% extra revenues. Most are generating power and reselling it to their national power utility, an option which is lacking in Indonesia.

The emergence of a global market for biomass pellets (see our intro video), has made it possible for Indonesian mills to finally join in on the profitable use of bagasse. But it is not a straight forward path for sugar companies as they need to:

• Invest significantly: About 25m USD to upgrade the efficiency of the mill and another 25m USD to build a torrefaction and pelletization plant
• Obtain certificates for origin and the quality of the pellets
• Operate the pellet plant and the manage logistics
• Secure long term buyers

Partnering with MOBIONU offers a simple and effective way for Indonesian sugar mills to extract more value from their cane, without having to invest or to expand their operational responsibilities.

The business model we propose, a profit-sharing Joint Venture, can generate up to 3m USD per year of additional profit for the owner of a sugar mill that processes 1 million tons of cane per year.

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