International Business Meeting, Port-au-Prince, 1-2 October , 2009

HAITI: OPEN for BUSINESS OCTOBRE 1st 2009

investment opportunities in renewable energies

Dieuseul ANGLADE, eng. Director General

Bureau of Mines and Energy

International Business Meeting, Port-au-Prince, 1-2 October, 2009

BME

Presentation Plan

1. Overview of the energy Sector

2. Investment opportunities

3. Conclusion

BME

1. Overview of the energy sector

Haiti energy “consumption” matrix(% TOE)

hydro

Haiti energy “markets” matrix(USD)

Diesel(380 M) Wood-Charcoal

(150 M)

Wood

* Most wood-fuel consumed by SMEs (Moonshine, drycleaners, bakeries)

Biomass (wood & charcoal)

72%

Petroleumproducts

25%

Other petroleum fuels

BME

The energy demand

Transportation, industry and domestic consumption

• 380 000 tons de charcoal per year for families:a US$ 150 M market

• 200 000 tons of wood in the SMEs : a US$ 60 M market

• 130 millions gallons of diesel : a US$ 380 market

1. Overview of the energy sector

BME

2.1 Liquid fuels

bio-fuels (biodiesel)

Progressive substitution of 45 million gallons of diesel consumed by the thermal generators in power plants.

130 million gallons of diesel consumed yearly.

The telecommunications companies consume about 4% of the imported diesel.


BME

2.2 Cooking energies

WoodlotsProject of creation of woodlots in unused lands

Substitution of keroseneReplacement of kerosene lamps with lighting by small PV systems in rural areas

Briquette production

Production of briquettes from waste/renewable sources of biomass as substitutes for wood & charcoal


BME

2. Investment opportunities2.1 Wind Energy

• Lac Azuéï 10 km from P-au-P grid; 50 MW potential

wind speeds : 5 to 7 m/s.

• Northern Haiti Near Cap-Haitien grid; 2 MW potential

wind speed : 5 to 6 m/s.

The preliminary study is being executed by 3E, a Belgian firm.

Feasibility studies will be undertaken next.

BME

2.3 Solar energy

Solar panel assembly plants

Small PV rural solar projectsFor lighting, pumping, seafood and vaccine conservation


BME

The energy market is the second largest in Haiti after the food market.

There are already good examples of successful public-private partnerships in the Haitian Energy Sector, where the Government has committed to buying all the power produced for 5 to 15 years:

SOGENER, HAYTRAC, E-POWER

3. Conclusions

BME

The Government of the Republic of Haiti has also committing to the following actions :

• Elaboration and submission to the vote of Parliament a bill for the creation of the enabling framework for the acceleration of the use of renewable energy and the associated technologies ;

• Implementation of various forms of incentive mechanisms for the promotion of private sector investment in renewable energy (production and deployment);

3. Conclusions

BME

• Pursuing actions related to the development of biofuels, in particular: feasibility studies, R&D and the reinforcement of Public-Private partnerships;

• Carrying out a public awareness campaign for renewable energy, utilizing instruments designed to inform and motivate.

HAITI IS WORKING HARD TO MAKE THE ENERGY SECTOR A GROWING

AND SUSTAINABLE SECTOR

3. Conclusions

BME

THANK YOU

Dieuseul ANGLADE, Ing. Directeur General

Bureau des Mines et de l’Énergie

Email : [email protected] Web site: www.bme.gouv.ht

BME

IDB International Business MeetingInvestment in Wind Power Generation from an International

Investor’s Perspective

Rolando Gonzalez-Bunster


BasicEnergy

Economic and Commercial Aspects

• Country’s political situation should be stable and should present

macroeconomic growth in the short term.

• Payment risk needs to be minimal

– Capital for these projects migrates very easily. If too much risk is perceived in a certain

country and/or market, investors will identify alternate places to deploy their capital and

develop similar projects where less risk is perceived.

– Long Term (15-20 yr) Power Purchase Agreements (“PPAs”) are a must to secure financing.

• Involvement of multilateral funding is highly desirable.

– Commercial financing in developing countries tends to be very short term with high interest

rates which limits the possibilities to develop capital-intensive projects like wind power

projects.

Financing sources like IDB play a significant role in promoting these projects in developing countries.

BasicEnergy

Site Selection• Initial site selection is a very methodical and technical exercise.

– Once a site is selected, significant time and resources need to be dedicated to research its

feasibility.

• Wind atlases which contain macro wind measurements are not enough

(these only provide general guidelines). Site-specific towers need to be

erected in order to measure wind behavior for at least one (1) year.

• For financing purposes, these site-specific measuring towers need to be

measure wind speeds at least 2/3rds the height of the expected hub height of

the wind turbines (as high as 100+ meters).

– These measurements need to be validated by independent third parties

An investor will typically invest in securing the site and purchasing wind turbines once the site is validated by site-specific wind measurements

BasicEnergy

Permitting• Too much bureaucracy hinders project development.

• In countries where wind projects have not been developed, authorities are

typically hesitant to fast-track permitting - this creates a barrier against

developments.

– Other countries are competing for these projects and are willing to have more streamlined

permitting processes.

• Permitting is required for financing, hence if the permitting process is not

clear and streamlined, achieving financing can become challenging.

A single point permitting window is highly desirable

BasicEnergy

Technical and Construction Aspects

• Available offloading ports are one of the early items that need to be

identified when making an investment decision.

– The lack of proper infrastructure to offload the equipment from the ships could easily

eliminate the chance for a successful project.

• Access to site from to the unloading point to the each of the towers’ location

is also an important task that needs to be performed early on in the

investment decision process.

– If too much investment is required due to: 1) poor road conditions; 2) tight curves that don’t

allow blade transportation; or 3) Mountainous terrain; then project feasibility can be

jeopardized.

• Access to grid as close to the site as possible.

– A long transmission line can increase project cost significantly and threaten the project’s

feasibility.

• Terrain profile can influence balance of plant costs

BasicEnergy

Carbon Credits• Although the variable costs of wind projects are minimal, the construction

aspect is very capital-intensive. As such, power prices need to be high

enough to repay the financing and allow for an acceptable return to the

investor. Energy prices are typically not enough to allow for this.

• To solve this issue, carbon credits are one of the few lifelines to make

projects feasible.

• The current Clean Development Mechanism (CDM) expires 2012. Difficult

to predict carbon credit impact on a project’s economics post 2012.

• A wind project in Haiti would displace Diesel (no. 2) generation – this is a

“cleaner” fuel than Coal or Heavy Fuel Oil which results in less carbon

credits than the same project could generate in other countries with a

“dirtier” energy matrix.

BasicEnergy

THANK YOU!

Rolando Gonzales Bunster, Basic Energy

BasicEnergy

Prospects for Jatropha curcas

cultivation in HaitiCHIBAS

CHIBASInternational Business Meeting, Port-au-Prince, 1-2 October, 2009

Why Jatropha?• Haiti presently imports over twice as much diesel fuel as gasoline (ethanol is a

substitute of gasoline)

• Haiti heavily depends on diesel for the production of electricity

• Feedstock for ethanol production would compete for the best arable land; which is

limited

• Ethanol would have a relatively small local market

• Oil processing and production of bio-diesel is scalable

• Plant oil can be used directly (for local electric power generation, mills, irrigation, and

small industry)

• And Jatropha is potentially a multipurpose crop (reforestation & restoration of

degraded land, biodiesel, SVO, charcoal briquettes, high protein animal feed and

honey)

CHIBAS

CHIBAS

> USD 350 M

> USD 150 M

> USD 60 M

Energy matrix (Market)

% o

f en

ergy

mix

(m

arke

t)To

ns o

f O

il E

quiv

alen

tThe market for Biodiesel

* Most of the wood is not sold on the market

*

• How much land can be usedto grow Jatropha ?

• Expected yields ?• What are the profits from

growing Jatropha ?

Mapping the risks (red):

Land use, environment,

areas suitable for food crops,

other socio-economic risks, etc…

Land availability for Jatropha

CHIBAS

Land use map

Land availability for Jatropha

CHIBAS

A B

In green: area where you can grow Jatropha with limiting the negative impacts.

A: >800,000 ha

B: >500,000 ha

There is enough land to meet Haiti’s diesel market!

A multipurpose cropThe markets for Jatropha

Edible Jatropha

• Oil & Biodiesel (liquid biofuels) 100 million gallons (280 M USD)

• Charcoal briquettes80,000 ton (23 M USD)

• High protein animal feed550,000 ton (165 M USD)

• Honey12,000 ton (36 M USD)

Non edible Jatropha

• Oil & Biodiesel (liquid biofuels)100 million gallons (280 M USD)

• Charcoal briquettes200,000 ton (60 M USD)

• Honey12,000 ton (36 M USD)

CHIBAS

Working with small holdersMaximizing profit along the value chain

• Integrate small holders to the Jatropha value chainThere is an opportunity to develop a market chain integrating small holders

and producers; one that is profitable to ALL the actors of the value chain

(IDB market study)

• “Lwil Agogo” – building strategic alliances along the value chainProfitable businesses integrating the small holders and producers

CHIBAS

CHIBAS at the service of the local agro-industry

1. CHIBAS will be improving, releasing and promoting the use of improved

Jatropha varieties as multipurpose crops (food/feed and energy);

2. CHIBAS is a technical center to serve the farmers and the agribusiness

sector in getting access to the best and most adequate technology and the

best agricultural practices;

3. CHIBAS realizes feasibility studies to establish plans for the formulation of

project designs (or projects) and investment strategies (including a

complete sustainable and profitable value market chain assessment)

maximizing incomes for the farmers and the local communities.

CHIBAS

THANK YOU!

Gael Pressoir, CHIBAS, Executive DirectorGeneticist & Plant [email protected]: gael_pressoirPhone: +509 3465 0449

CHIBAS

mailto:[email protected]

Can the biodiesel value chain be an opportunity for Private Sector Investments in Haiti?

BID & USAID-DEED

Source: Biodiesel Value Chain Feasibility Study for Haiti – IDB and USAID/DEED


The study has considered 3 lines of business

FARM BUSINESS

JATROPHA PRODUCTION CENTER (JPC)

BIODIESEL

Jatropha pressingChemical plant

Oil

Cake

Machine to press jatropha

Solid fuel-pellet

IDB & USAID-DEED

FARM JATROPHA PRODUCTION CENTERBIODIESE

LINDUSTRY

Final products considered in the study

Final products subject to more investigation but with potential

% Shown as % of dry fruit.

Notes:

GENETICR&D

SEEDS

The main products have been considered

IDB & USAID-DEED

Logical FrameworkOpportunity:• There is a market

• Private Investments provide good returns

• 3A benefits are huge

Challenges:• Entrepreneurship• Regulation & Public

Investments• R&D best crops• Focus of development

actors: arid/semi-arid lands

Strategic Options for Haiti:

• Private Sector

• Public Sector and Development agencies

Scenario we can accomplish together

IDB & USAID-DEED

Except for the small scale biodiesel plant, the three businesses present NPV positive in all scenarios

Farm business:NPV/ ha

Jatropha Production Center businessNPV/ JPC

Biodiesel business:NPV/ industrial plant

Income/ ha1 = $229

1 Income in fifth year

2 5 19 4 46 186

$ 689,774 $ 3,123,851

$ 674,215

$ 43,945,922

$ 3,395,491 $ 688,714

700 ha 6,500 ha 65,000 ha

Variation of NPVs according to oil prices and jatropha land productivity

Asumption:Diesel pump price in Haiti: $2,31

IDB & USAID-DEED

$US2,5/gallon and 200gl oil/ha seem to be the break-even point for the Haitian biodiesel business

Break-even point

Assumptions:• Diesel price at pump in Haiti• Oil price (JPC business): 50% diesel price• Jatropha dry fruit (Farm business): 10% oil price• JPC business includes pellets business

Variation of NPVs according to oil prices and jatropha land productivity

($US / gal) ($US / gal)

($US / gal)

IDB & USAID-DEED

The economic impact in terms of development of each business is also significant in all scenarios analyzed

700 ha 6500 ha 65000 ha

$ 229 $ 229 $ 229

$ 218 $ 218 $ 218 Salary

Profits

238 2210 22100Jobs

$447/ha

35 195 260 3250 32502600

$ 554

$ 664

$ 554

$ 709$ 664

$ 554

2 5 19 4 46 186

700 ha 6,500 ha 65,000 ha

$1000-1150/ha

Farm business:Income/ ha

Jatropha Production Center businessIncome/ ha

Biodiesel business:Income / industrial plant

194,000 gl/year

1,8MM gl/year 18MM gl/year

$ 29,284

$ 573,341

$ 7,304,394

IDB & USAID-DEED

For a scenario of 500,000 ha of jatropha planted, 450,000 jobs can be created. Also, $460 of income per year can be generated for a minimum of 250,000 producers

(1) From the fifth years and on

500,000HECTARES

• 250,000 owners• 184,000-203,000 jobs

(170,000 approximately on the farms)

• Income per capita(1): > $460/ owner (=$2000/ owners with the JPC’s) > $220/ worker

• Environment: • Replace the entire charcoal market ($320M)• Renewing arid lands for fruit crops in the future

450,000 jobs

Attractive vision because:• scheme of farm owners integrated with the JPC’s• arid or semi-arid land• can possibly be a transitory and complimentary culture• efforts both focused and at a national scale

VISION

IDB & USAID-DEED

THANK YOU!

Eduardo Almeida, BID

IDB & USAID-DEED

Eucalyptus Project for Biomass Production

FGV - BID


Agroclimatic Zoning Land Capability

Methodology

FGV - BID

Eucalyptus

Phase 1 – Land Suitability

FGV - BID

Eucalyptus in the World

Source: ABRAF, 2007

FGV - BID

Haiti Energy Matrix

Area Covered by Forest:

3,8%Source: IEA.

FGV - BID

Biomass Project

Manufacturing

Firewood Stove

Bricket

FGV - BID

18 month

Process of Forest Production

FGV - BID

Forest Management Population (trees/ha) 3,460Spacing (m) 1,70 × 1,70 Cutting cycle (years) 4° and 7°

4° year- 1.730 trees 200 m³/ha

7° year-1.730 trees 350 m³/ha

Average in 7 years 50 m³/ha/year

Biomass ProductionFire wood production per ha year (50% Humidity) 31,6 tBiomass production per ha year (10% Humidity) 15,8 t

Forestry Project

FGV - BID

0

20000

40000

60000

80000

100000

120000

1 2 3 4 5 6 7 8 9 10 11 12

Project Production

Biomass Volume t

Biomass ProductionTotal biomass production in the 4°, 5° and 6° year 40.000 t per yearTotal biomass production After 7° year 110.000 t per year

Forestry Project

Total area: 6.000ha – 1.000ha per yearEarly planting First harvest

FGV - BID

Biomass Project

BPF Natural Gas Firewood (50% humidity) charcoalBiomass (10%

humidty)

9.700 Kcal/Kg 9.065 Kcal/Kg 2.400 Kcal/Kg 7.365 Kcal/Kg 4.600 Kcal/Kg

FGV - BID

Total Investments per unit of 1.000ha, USD

Forestry Unit

Nursery investment for seedling USD 980.000

Investment in Infrastructure Forestry USD 950.000

Investment in machine shop USD 200.000

Others USD 100.000

Production cost per ton of eucalyptus (50% of humity) (1) USD/t 32

Industrial Plant Valor

Installed capacity t/hour 20,40

Year production after 7° year of biomass (10% of humidity) t 110.000

Industrial Investment USD 9.000.000

Grid investment - low voltage USD 50.000

Infrastructure investment USD 150.000

Water well USD 50.000

Production cost of Biomass USD/t 25

Economic issues after 7° year Valor

Sale price of biomass (bripell) USD/t 200

Annual revenue USD 22.000.000

EBITDA USD 15.090.000

IRR % 26%

(1) Considering harvest and transport in radius of 80 Km and average of 12 years.

Project Production Bripell with Eucalyptus Biomass

FGV - BID

Thank You!

Cleber Lima Guarany

[email protected]

FGV - BID


The Biodiesel Haiti project

Biocarburants d’Haiti, SA


Who we areBiocarburants d’Haiti S.A.

Haitian Corporation established in 2007 Major stakeholders: 4 local entrepreneurs: Reynold

Roy, Reginald Noel, Georges Garnier, Pascale Oriol Paid up capital: us $ 120,000 Present activity: production of biodiesel on an

experimental basis out of used vegetable oil collected from local restaurants

Current production: 500 gal /month sold to individuals


What do we want to do ?

Based on experience acquired over the past 2 years:

Transform current activity into a biodiesel production project out of jatropha oil


How do we want to do it? Phase 1 : use 1200 hectares of land located in

plateau central and owned by one of the major stakeholders to plant jatropha.

Phase 2 : encourage small farmers to participate in a jatropha plantation program (with the help of winner project usaid)

Incentives will include: free seeds from our nurseries, technical assistance and a guaranteed purchase agreement at a pre approved price


Our production Goal: 1 Million gallons of biodiesel

Phase 1: 300 gal/ha/year

for a total production : 360,000 gal of biodiesel

Expected time to full output : 3 years

Phase 2: 640 000 gal out of jatropha plantations own by small farmers

Expected time to full output: 3 years from end of phase 1


Target Market

Private industries with electricity generation capacity (generators)

currently 22 % of Haiti’ s diesel consumption or 25 M gal / year


2011 2012 2013 2014 2015 2016 20170

0.5

1

1.5

2

2.5

3

3.5

YearM

ark

et

sh

are

(%

)

At today’s diesel price of $ 2.80 we expect to be 10 to 15 % cheaper

At today’s price, sales at end of phase 2 will amount : $ 2.5 millions

Expected net profit on sales : 21 %


What price?

2011 2012 2013 2014 2015 2016 2017

-20

-15

-10

-5

0

5

10

15

20

25

YearT

RC

-ac

tio

n (

RO

E, %

)

What is the estimated investment?

2,8 Millions us $ for plant and related equipment as well as

plantation program


What are we looking for in potential partners?

Help in refining and completing project document

Equity financing Assistance in securing bank financing Technical, logistical and managerial

support once project launched


THANK YOU!

Reginald Noel, Biocarburants d’Haiti SA, [email protected]



WINECO-TEVASAEthanol plant

TEVASAInternational Business Meeting, Port-au-Prince, 1-2 October, 2009

Terminal VarreuxWHARF SPECIFICATION

DRAFT 11.0 METERS FOR WHARF 9.8M FOR TANKERS

LOA 190 METERS MAXFENDERS YOKOHAMA

LIST OF TANKS

46,000 BBLS 1646,000 BBLS, WITH FLOATING ROOF 225,000 BBLS 217,500 BBLS 18,300 BBLS 4

TEVASA

Caribbean Basin Initiative (CBI)

TEVASA

• Ethanol produced/processed in beneficiary countries are permitted to enter the US duty- free

• Ethanol has to originate from bio-mass sources and has to have undergone a full transformation process in the CBI country

• Tax saving of US 54 cents a gallon

30 million gal.year dehydration plant

TEVASA

• In full operation by mid 2010• Expansion possible to 60 M gal• Corresponding tanks and infrastructure

additions to accommodate the increased volume are planned

30 million gal.year dehydration plant

TEVASA

• In full operation by mid 2010• Expansion possible to 60 M gal• Corresponding tanks and infrastructure

additions to accommodate the increased volume are planned

Processing ethanol for the US market

TEVASA

• Final stages of negotiations• Ethanol will originate from Brazil and after

processing in Haiti it will be exported to US for further blending with gasoline

Plant Layout

TEVASA

THANK YOU!

Maulik Radia, TEVASA, Managing Director [email protected]

TEVASA


ENERSA

Renewable Energy For a Better World

Transforming Haïti’s energy challenges into wealth and job creating opportunities


ENERSA

COMPANY PROFILE• Haïti’s only designer and

MANUFACTURER of solar panels and solar appliances

• Small, young,… but the FASTEST GROWING solar company in the country (700% growth)

2007 2008 2009 E 2010 P

Sales $US 40000 100000 700000 2000000

250 000

750 000

1250 000

1750 000

2250 000

Company Sales History & Projections 2007 - 2010

• Socially responsible company– Trained from scratch & employed so far

18 solar technicians (almost all of them youth from Cité Soleil)

– Investing in our Human Resources – Investing in environmental projects– Supporting youth initiatives

– Industry leader in number of installations (in just over 2 years of operations)

– From 800 sq ft, moving to new 10,000 sq ft facility

• Widest covered geographic area

– 58 towns & remote villages… and counting– contracts in all 10 departments of the country

In very little time, we became the best local partner for nationwide solar projects

ENERSA

SOLAR as a strategic solution

Haïti in excellent radiation zone 750,000 to 1M households without access

Grid Access12%

Other Sources

22%

No Electricity66%

HAÏTI ELECTRICITY ACCESS

• Making PV affordable & accessible• Reducing the country’s dependence

on imported fossil fuel• Creating jobs

So, we’re in the business of Socioeconomic Development

Germany has 10 times that, just in solar PV- 1,500 MW PV installed in 2008 alone

Spain Installed 1,800 Mw PV in 2008

has an OVERALL installed capacity of about 360 MWwhile Haïti

Estimated total PV installed : only 700 Kw

SOLAR STREET LIGHTMARKET VALUE ADDED CHAIN

ENERSA

15%

15%

28%

14%

21%

7%

PV MARKET VALUE ADDED CHAIN

Si- Feedstock

Wafer

Cell

Module

BOS

Installation

Manufacturing Division

Installation Division

43%

Si- Feedstock

Wafer

Cell

Module

BOS

Installation

Solar appliance

59%

MANUFACTURING as a wealth creating option

ENERSA

OUR PRODUCTS

Mobile phone chargerSTANDARD model

Mobile phone chargerBELT model

Mobile phone chargerBELT model plus

CHAJMANSmall BusinessMobile phone Charging station

Solar Lamp- Light- Radio- Mobile phone

Solar Home System- 3 Lights- Radio- Mobile phone

Solar Module PS-X- 30W- 60W- 120W

NATIONAL TEAM WORK

Components from other Haïtian

industrial companies as

much as possible

ENERSA

OTHER PRODUCTS & SERVICES

Village Mini Central Solar Plant

Solar Irrigation Pump

Coffee Export Coop

Hospital

MULTI Kw INSTALLATIONS

4 main focus:a) Securityb) Costc) User friendlyd) Install. friendly

Custom design forspecific projects

STRONG R&D DEPARTMENT

ENERSA

OUR MAIN SUCCESSSOLAR STREET LIGHT

• Theft proof• hurricane proof• 12h of light per night• Fully automatic (ON/OFF) • 3 days autonomy• 25% cheaper than

imported

Designed in Haïti Solar panel made in Haïti LED light bulb made in Haïti Pole made in Haïti

ENERSA

FINANCING HAÏTI’S SOLAR REVOLUTON

Mezzanine FinancingInventory Loan$

Market segmentsfinancing mechanism

(credit / loan)$$$

Local component

supplier

Other local installers

Co

nsu

mer

Inst

itu

tio

ns

Go

vern

men

t

Manufacturing Division

Installation Division

Foreign component

supplier

Mic

ro

Bu

sin

ess

Ho

use

ho

ld

• Consumer appliances• OFF-Grid :

- Residential (SHS)- Commercial / Institutional- Stand-Alone Utilities

ECONOMICALLY VIABLE MARKET SEGMENTS

INDUSTRY STRUCTURE FLOW CHART

ENERSA

Opening solar market through

proper financing mechanism

5%

15%-20%

20% - 25%

50 % ( NOTE ABLE TO AFFORD )

Cash able

1 – 3 year credit

3 - 5 year credit

SOLAR HOME SYSTEM MARKET POTENTIAL

ECONOMICALLY VIABLE

50% penetration potential with proper financing

375,000 HH in Haïti$ 175 M market

200 M HH worldwideNeed subsidy

SOLAR NEEDS SUBSIDIES ? NO… NOT FOR ALL MARKET SEGMENTS

ENERSA

NO VILLAGE TOO REMOTE…

THANK YOU

Renewable Energy For a Better World

Our Greatest Achievement?

Changing people’s lives

COUNTING ON YOUR SUPPORT

PROFITABLE solar company, but…

Documents

International Business Meeting, Port-au-Prince, 1-2 October , 2009