Business sector Seed production / bioethanol production
Nature of business The project initiator – Seed plant will receive raw materials at a fixed price to them, because farmers are satisfied by barter scheme: to give Seminte-Argo instead of 1 kg of seeds – 4 kg of maize. Due to this, the cost of bioethanol will remain the next 5 years, the lowest in Europe – up to 0,3 euro
Date business incorporated Seminte-Agro, 2004.
Date of first sale June 2011
Business stage Start-up on basis of seed plant
Funding required 300,000 euro equity and 4,700,000 euro loan
Funding use product development
The development strategy envisages the involvement of the plant at the first stage of the investor, who will receive up to 30% share holding, instead tranche of 4,7 million USD.
Bioprod-Agro is a resident of scientific and industrial technology park “Academy” (Kishinev), having the right to manufacture in Causen sity, taking
advantage of all the benefits of a resident techno-park (VAT exemption).
1 Executive Summary
1.1 Business Proposition
Ltd. Bioprod-Agro based on production capacity of Seminte-Agro LTD (shareholder), which has assets of more than $ 10 million.
Ltd. Bioprod Agro – the only moldavian company that has has a license to produce bio-ethanol.
Research project leader, who is also technical director: Michael Kuyban – the first innovator on biofuels, lobbyist, who achieved benefits in the production of bio-fuels
1.2 Products Overview
Future production is projected for complex processing of renewable biological starch and sugar-containing raw materials: corn or flour to fuel ethanol and dry fodder yeast. Production wastes are processed in DGS – sold livestock, and some dried out and goes to the production of energy. Provided the building (from profits) of unit to produce liquid carbon dioxide from the carbon dioxide emitted during alcoholic fermentation.
Prices: bioethanol – 540 euro/ton, liquid carbon dioxide – 45 euro/ton, DGS – 50 euro/ton, gluten – 450 euro/ton, maize embryos – 250 euro/ton.
1.3 Market Overview
According to the Directive of the European Parliament and the Council of the European Union on 08.05.2003, № 30 “On measures to stimulate the use of biofuels and other renewable fuels in the transport sector” should be achieved by using ethanol in fuel is not less than 5.75% to 31.12. 2010. Up to 31.12.2006 and thereafter every two years, the Commission must be European-sky Parliament and the Council of the European Union report on the evaluation of the EU to expand the use of biological and other renewable fuels. The demand for bioethanol will be millions of tons.
Related products, such as high-performance feed supplements for livestock, poultry and pig farming, are promising for export to Russia and the CIS countries, especially the corn germ, corn gluten and corn distillers dried. This facilitates implementation in Russia national project on agriculture and livestock development. Russian livestock acute shortage of premix in feed additives with high content of amino acids in high-forage-type embryos of maize meal, maize gluten and dried residues.
1.4 Target Clients
Vertical UK – will buy bioethanol in Rotterdam.
Franzelutsa (main baker and food producer in Moldova) – will buy liquid carbon dioxide, maize embryos, gluten).
Pig farms – will buy DGS.
Carmez (largest producer of sausages) will buy gluten.
1.5 Strategic alliances
1. Smerechinsky G.- CEO and owner of “Automas – Agro” (shareholder of Seminte-Agro).