FOR BIOFUEL PLANT
Client
Korean Conglomerate with Interest in Biofuel Industry
Products & Services
- Market Entry Study
- Strategy Business Planning
Description of Project
Client
Eco Solutions is an industry leader in South Korea specializing in environmental engineering and bio-energy.
Background
Eco Solution’s subsidiary in Malaysia wanted to setup a biofuel plant with annual production capacity of 200,000 Metric Tons in POIC Sabah with a funding requirement of RM550 million.
Challenges & Expectations
This Biofuel plant requires a stable supply of raw materials from the local suppliers to ensure smooth production.
Due to the lack of market intelligence and experience in the Malaysia market, the Client sought for consultation and advice on securing the supply of raw material which will help them to enter into a long-term contract arrangement.
Our Role on the Project
Scope of Services
Our scope was to develop a business plan for the set-up and operations of the biofuel plant, including the advice on potential partnership for the business.
Solutions / Outcomes Delivered
- Market research and value chain analysis on the biofuel industry in Malaysia including the key players.
- Developed a financial model for the business to forecast the financial outlay and working capital requirement.
- Estimated the initial investment required and potential returns under various circumstances in terms of ROI, IRR and NPV of the project.
- Due diligence on potential third party plantation companies for off-take of agreements.
- Advised on generic corporate strategies, pricing and hedging structures, options, risks and opportunities on the deal.
