Bibit Foundation-Phil Rickard

Poverty Alleviation through Green Energy Solutions

Combined Group • Over 300 MW of projects.

• Indonesia Focus.

• Diversified Proven Team of professionals.

• Local and Central Government support at the highest

levels.

• On track to become Indonesia’s largest and most

successful renewable energy group. • 8 companies and subsidiaries.

“To provide farmers in developing countries with

sustainable income through production of green,

renewable biofuel from agricultural byproducts.”

| Bibit Foundation 3

WE SEED THE MARKET


Population

Commitment

Over 15% (= 39.33 million) of Indonesia’s 259 million people are

farmers

Most of Indonesia’s farmers grow rice

The income of average Indonesian farmers is less than $3/day;

while 48% of them live in poverty on less than $1.25/day

Farmer’s

Income

Source: BPS Indonesia (2012)

The Base of the Pyramid


Rice Production




There is a Dark Side to the Charm



Indonesia produced approximately

65.39 million tons of rice in 2011

Following bi-annual harvest, the

husk and stalk remain; Indonesian

rice cultivation produces over 100m

tons of this byproduct

Though in some areas, some stalk is

fed to animals, the majority of stalk

is burned

Farmers burn rice stalk to clear

paddy; this represents a health

hazard to individuals in the area

and a waste of potential energy

| Bibit Foundation

Production

11

Current

Disposal

The Bibit press enables point-of-harvest processing of rice byproduct into high-

density pellets that enable efficient, low-cost transportation to the digester site

The Bibit press was designed with the following objectives:

1. Simplicity: easy to use by anyone in the family with minimal training, does not require fuel or electricity

2. Durability: long-lasting, can be left outdoors without issue

3. Affordability: existing units built for less than $50. Can be manufactured in China for ~$25

| Bibit Foundation | Initial Presentation | April 2012 12

| Bibit Foundation | Initial Presentation | April 2012

Transportation

Consistent supply of rice biofuel is essential for successful power generation; there

are two challenges to successfully building this supply chain

Fermentation and energy

production may occur some

distance from rice farming

Transporting unprocessed rice stalk is

logistically unfeasible because of

volume

Farmer Participation in Supply Chain

As rice production in Indonesia is

done by small-holders, thousands of

family farmers will be integral

members of the supply chain

Bibit Foundation has found solutions to

both of these issues

13

| Bibit Foundation

RICE STRAW

Density: 70kg/m3loose,100kg/m3bailed

Energy Density: 1.4GJ/m3

1 hour operation of 1MW engine:

BIBIT BIO-PELLETS

Density: >500kg/m3

Energy Density: 7.7GJ/m3

1 hour operation of 1MW engine:

14

26 m3

5 m3

Profit from sale of fuel pellets made with the Bibit Foundation press can

increase family income by 36%

increase in household income for

many farmers

The average farmer with .4ha paddy can produce 2.8 tonnes stalk from each harvest

This stalk can be processed into 5 cubic meters of biopellets for each harvest, or 13 cubic meters yearly

If Bibit Foundation purchases biopellets from farmers at 200,000 IDR/t, the

average farmer can yield an additional 1.4M IDR per year

An

nu

al In

co

me

(ID

R 1

,000)

| Bibit Foundation | Initial Presentation | April 2012 15

-

1.000

2.000

3.000

4.000

5.000

6.000

Avg Farmer Farmer with SAWA

Pellet Income Farming Income

Bibit Foundation Impact on Farmer Income

| Bibit Foundation

Association/

Cooperative Rice Mill / Rice Processing Complex

16

Farmer

Farmer

Farmer

200 – 300 farmers

Association/

Cooperative

Farmer

Farmer

Farmer

200 – 300 farmers

Option 1: Engage Association or Cooperative

Work with Association or Cooperative leadership to

implement pelletization program – training,

encourage processing, and aggregate pellets

+ Training

+ Potential for many families to share a press

Option 2: Engage Rice Mills or RPC

Contract Rice Mill or RPC to collect pellets

+ Use previously established supply chain

- Will still need Association or Cooperative to ensure

pellet production and help with training

Bibit Foundation is currently

building relationships with both of these points in the supply chain

| Bibit Foundation

Association/Cooperative

17

• MUK collects 20-30 farmers and get

together into a KelompokPetani

• Provides loan (e.g. 2 jt) to each

member of the group at the

beginning of the planting season

• Farmer uses loan to rent paddy, buy

fertilizer, etc

• MUK provides 3-4 trainings to each

group at the beginning of the

planting season

• MUK’s mission is to help increase

farmer livelihoods through extension

of microloans and other non-

financial programming

Kelompok Petani (30 farmers)

Kelompok Petani (30 farmers)

Microfinance

Organization

e.g. Koperasi Mitra

Usaha Kecil

BIBIT

FOUNDATION

• Bibit Foundation could partner with MUK to distribute

presses to each of the groups (could be shared by a

few families)

• MUK would then include training on how to process

pellets in already scheduled group training

• MUK has ongoing relationships with these farmers and

could be a good resource to gain acceptance of the

program by farmers


Meet Pak Ngatijan (50), an

Indonesian farmer

Currently supports his family on

less than US $100 per month

Has created and sold his first

2m3 of Bibit bio-pellets

Sale of Bibit bio-pellets

enabled him to double his

family’s income for August

2012

Health: burning rice stalk produces large amounts of smoke, that can be harmful to the respiratory health of farmers and their families

By providing farmers with a profitable alternative to burning rice byproduct,

famers and their families can reduce risk of respiratory ailments

Ecology: farmers’ local environments benefit from recycling rather than burning rice byproduct

The Bibit press has been field tested by several farmers in Indonesia


| Bibit | In 20

Biomass Power Producers

Eco-friendly Pulp Mills

Horticultural-based company (soil aeration)

Healthy animal bedding manufacturers

Panel Board Manufactureres

Composites industry (WPC decking, materials and furniture)

Potential Sales Outlets


Harvest

Market

$ Seeds

Rice


Harvest

Market

$ Seeds

Rice

Stalk

Burn

Changing a 3,000 year old supply chain


Harvest

Market

$ Seeds

Rice

Stalk

Pellets

$ Seeds

Rice

One of the reasons why the farmers burn the rice husks and stalks is

because they believe that this will fertilize the land

24

Bibit Foundation will help farmers with the fertilizer

issue

| Bibit Foundation

HOW TO DEAL WITH THIS?

STEP 1: Make the farmers understand

that, scientifically, partial or incomplete burning of the rice husk will cause air pollution (smoggy air)

STEP 3: Give the farmers some choices

and offer to provide the necessary and supplementary fertilizer

STEP 2: Educate the farmers on how rice husk is not as effective as manure when

it comes to fertilizing the soil



Documents

Bibit Foundation-Phil Rickard