SUKHA Alternative Energy

Suman Shakya MD, One Planet Solution Consultant / Service Provider, SAE Pvt. Ltd.

Just thinking does not make a positive difference.

Doing it does !

SUKHA Alternative Energy Pvt. Ltd.

New company Combined experience of over 60 years Produce Electricity from Poultry waste 1.25 mw Produce Organic Fertilizer 1000 mt annually Three promoters combined turnover in excess of NPR 25 Crores / USD 2.9 mil Subis, Khanal and Annapurna Poultry farms located around 2 km at East Chitwan

Promoters Background
Father of poultry in Nepal Established companies Well explored eco system Expanding bird capacity Setting up environmental control system Farms has bio gas plants

Promoters Experience
Experimented a lot Tried to implement many solutions Even produced electricity Subject to various researches Multiple promises No result

Problems
Waste management 20 tons of average poultry waste per day. High demand during season, low other times Problems in functioning consistency Community issues Cost to dispose Health risk due to air pollution and flies High cost of fuel during load shedding

Solution

Solution
Rather than wait, Jump Size does matter Combined strength - 200,000 birds Spreading risks 3 promoters Faster access to technology Seen it work in other countries Ready to make initial equity investment

Farm

Farm

Bird Cage

Transporting waste

Proposed system

The Math

Business Model
Revenue - Electricity and Organic Compost Fertilizer The 3 promoters themselves - buyers of electricity Current demand = production Price half of what is currently incurred using diesel Excess will be connected to the national grid whose substation is only 1.5 km away Organic compost fertilizer in high demand Selling price conservative, buyers available Excess gas to be sold

Business Model
Company led by Atul Khanal, MBA BE Team composition mix of engineering and operational skill set Replicable Immense possibility >15,000 farms Tested solution in other countries All three farms gearing for growth Double capacity in three years Expansion inevitable

Impact Environmental / Social

Elimination of waste extremely environment and health hazard Reduction of methane one cause of global warming Reduction in diesel pollution 80 liter a day Disposal of the waste health hazard, improved sanitation. Smell is a big nuisance Increase in awareness of bio gas plants Community benefit from excess gas/electricity

Impact Finance
Creates economic value while solving multiple environmental problems Integrated solution to multiple problems Supplier is supported by GIZ, IDCOL, IFC, SNB and KFW. Replication is easy

Financial Highlights
NPR Investment Capital Structure Equity 30% Loan 70% 18,459,000.00 43,071,000.00 217,164.71 506,717.65 61,530,000.00 USD 723,882.35

Cash Flow
Projected Cash Flow
12,000,000.00 10,000,000.00 8,000,000.00 6,000,000.00 4,000,000.00 2,000,000.00

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Financial Highlights
Interest Rate 11% Payback period 9yrs BEP (year 1 at 100% capacity) 84% NPV (net cash inflow basis) @ 9% NPR 5,137,458 IRR ( Net cash inflow basis) 9.98% Liquidity 2.57:1 in year 7 Loan repayment 7 years

Required Investment
70% of the project - USD 506,717.65 As debt long term loan to be taken up by the company At preferential interest rates Without exchange risks Support to understand technology transfer and project feasibility better 30% of the project - USD 217,164.71 Injected as equity by three partners in equal amount

Points to Ponder
Issues with locals Bird Flu Dollar Rate fluctuation Transmission lines

We are ready. Are you?

SUKHA Alternative Energy Pvt. Ltd.