Global Social Entrepreneurship Competition University of Washington February 28, 2008 John Paul Scott Brewster

Market Need Problem Oil prices continue to increase Global warming continues to worsen Plantation biofuel models create food/fuel tradeoff Opportunity Decentralized energy production Increased employment opportunities Lower environmental footprint Solution

The Business PLAN Develop biofuel production and consumption at the village level, starting in Ghana HOW Jatropha Local Partners Capacity Building RESULTS Economically Viable Social Benefits Environmental Benefits

Jatropha Value Proposition Electricity Generation Presscake & Fruit Hulls Hardy Hedgerows Clean Lighting Economically Competitive FarmersCommunity Increased incomes and crop productivity; better land management Lower fuel costs & environmental impact; electricity for battery charging & refrigeration

Excess Seeds Saplings & Financing Excess Seeds Business Ecosystem (Village Scale) Biodiesel Processor Entrepreneur Farmers Carbon Markets Carbon Credits Business Model

Summary of Revenue Streams Saplings Seeds to Processor Carbon Credits Farmers Seeds to Entrepreneur Presscake Oil Sales to Community Seeds to Akan Entrepreneur

Hedgerows Incremental Revenue Better Land Management Eliminates Food/Fuel Trade-off

Co-CreationCapacity BuildingDecentralized WealthRural EnhancementMaintain BiodiversityTop-DownExtractiveConcentrated WealthRapid UrbanizationMonoculture Plantation Model

Akan Energy Scale-Up Plans

Business Ecosystem Financial Summary Total NPV of $113K NPV of $27K NPV of $24K Within each business ecosystem… Entrepreneur Farmers

Social Return on Investment (SROI) Inputs Access to saplings Access to financing Access to equipment Activities Capacity building Microenterprise development Training Outputs Increased agricultural production Localized fuel production & consumption Outcomes Increased incomes Reduction in poverty Energy self- sufficiency Reduced oil importation Lower carbon emissions Benefits (NPV at Yr 8)Single EcosystemAkan Energy Farmer Earnings$71K$29M Fuel Savings$44K$11M Oil Imports Reduced (BBL)1.5K160K Carbon Credits2.5K240K 94,000 Households Benefit by Year 8

Questions?

Appendix

Management Team Founders – John Paul: 7 years experience w/ emerging market social ventures at World Resources Institute & Acumen Fund; work experience in India, Ghana & Nepal – Scott Brewster: Background in chemical engineering in the energy industry; has experience in the evaluation of biofuel related investment opportunities. Advisors – Dr. Stuart Hart Author, Capitalism at the Crossroads Founder, Cornell's Center for Sustainable Global Enterprise – Dr. Tralance Addy Founder of Waterhealth International & Plebys International Experienced Ghanaian entrepreneur – Dr. Mark Milstein Director, Cornell's Center for Sustainable Global Enterprise

Where We Are Today Some Givens... Feasible Model Strong Local Demand/Need Significant Financial, Social & Env. Returns Jatropha Cultivation & Seed/ Oil Yields Ownership of Press (Entrepreneur, Community, Cooperative) And Many Moving Parts… Need to Further Develop Model w/ Help of Local Partners Jatropha, Oil, & Carbon Price Fluctuations Revenue Sharing Agreements Equipment Suppliers & Costs

Scale Up Plans Next Steps Years 1 & 2 Years Feasibility Study Work w/ Local Partners Stress Test Assumptions Feasibility Study Work w/ Local Partners Stress Test Assumptions Pilot 10 Ecosystems Iterate & Revise Model 30 More Ecosystems Finalize Model Pilot 10 Ecosystems Iterate & Revise Model 30 More Ecosystems Finalize Model Full Scale Up 50 Ecosystems per Year Break-Even by Year 7 Full Scale Up 50 Ecosystems per Year Break-Even by Year 7 $20 K$300 K$500 K

Business Ecosystem Assumptions Year 1: Plant saplings Year 3: First harvest Year 5: Seeds harvested exceeds local demand

Sensitivity Analysis: Entrepreneur

Sensitivity Analysis: Akan Energy

CostYieldEnvironment Required Inputs Food / Fuel Trade Feasibility for AE Model Jatropha Palm Sunflower Soy Bean Rapeseed Diesel N/A Biofuel Comparison

Entrepreneur Equipment Details Capacity: kg seed / hour (assume 60kg for model) Engine: 8 hp motor, capable of running on jatropha oil Fuel consumption: 1.5 liters / hours (est.) Oil Recovery: approximately 87% Uses: any hard seed with more than 25% oil content Lifetime: needs to be replaced every 5-10 years Cost: Approximately $2000 USD Sundhara / Sayari Mechanical Screw Oil Press

Future Markets Jatropha Climate in 50% of Africa 1080 Million Ha Jatropha Seeds 300 MT Seeds / Yr 100 Million MT Jatropha Oil

Akan Energy - Pro Forma

Entrepreneur- Pro Forma

Farmer - Pro Forma

Fin Model Assumptions