Bionic Palm integrated food & Jatropha farming model

© 2009, Bionic Fuel Knowledge Partners Inc., Oswego, NY, USA

STRATEGY BRIEFTHE INTEGRATED FOOD & FUEL FARMING AGRIBUSINESS MODEL

04/07/2023 1

Bionic Palm Limited, Ghana

Young Jatropha intercropped with maize at the BPL test farm


A LEADER IN AFRICAN AGRICULTURE METHODSThe basic elements of the BIONIC philosophy: Highest level of ecosystem compatibility

Recovery of land formerly lost to erosion and depletion Biodiversity Soil improvement & water efficiency Negative carbon footprint

Socially responsible Food security for Africa Local economic development for poverty reduction

Profitability for a sustainable business Constant revenue optimization Lowest per hectar capital expenditure in the industry

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BIONIC LOCATIONS

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BPL farm land

Capital area(population 3 Mio)

International Airport Atlantic Seaport

50 km radius


SATELLITE VIEW OF BPL LEASED FARM LAND

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To Tema/Accra

Test FarmLomobiawe West

Lomobiawe South

Lomobiawe North

Adibiawe North

Adibiawe South

To Aflao


EARLY RESULTS OF OUR TEST PROGRAM

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December 2008 June 2009Before we started the test farm Single Jatropha hedges planted in Dec 2008

Maize planted first time in May 2009

Transformation of Savannah soil is clearly visible


WHY WAS THIS MODEL DEVELOPED? Jatropha Curcas Linn (JCL) centered business model proved too risky

Stand alone JCL farm for Biodiesel is not profitable with current practices Future, high value products not yet fully defined (Biojetfuel, Biorefinery) Technologies for reduced production cost lag behind

Measures for drastic overall yield improvements are necessary Increased mechanization required, especially for harvesting Detoxification of press cake

Early revenue streams had to be identified for better cash flow Multiple revenue streams had to complement each other Risk exposure needed reduction to an acceptable level Unquestionable levels of sustainability had to be achieved

Agronomic sustainability Ecological sustainability Social sustainability Economic sustainability

Food vs fuel discussion had to be addressed Africa specific issues required adaptation

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THE CURRENT BIOFUEL GAP: CJO PRICES VS COST OF SEEDS Value chain is financially not working out for early producers Current use of Crude Jatropha Oil (CJO):

Biodiesel Electricity and heat from cogeneration Testing of future applications (Biojetfuel, Refining of specialty oils)

Assume a cif Rotterdam price of US$ 1000 per MT(Unrealistic for biodiesel & CHP electricity generation!)

results in approx. US$ 900 FOB Africa Translates in ex mill price of US$ 750 – 850 depending on location Packaging for transport US$ 100 Processing US$ 60 Seeds plus transport US$ 600

4 MT seeds needed per MT of CJO Assumed price of seeds at farm gate US$ 100 (doesn’t cover all of direct cost on a commercial farm!) Shipping and handling of seeds US$ 50

Optimistic, current cash flow projection per MT of CJO is US$ - 10 to + 90

2011 update: Most recent price indications are pointing at an average price of USD 1000 at the mill gate to be possible by year end

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JCL OUTLOOK IS POSITIVE JCL business will work when/if seed cost comes down and revenues go

up Cost of seeds will come down, when

JCL specific mechanization technology becomes available Combined harvesting and pruning BPL has developed its own low cost technology

Improved agronomic methods lead to significantly higher yields Core of BPL’s R&D program

High yielding domesticated cultivars become widely available (yield improvements 100% plus!)

Depreciation cost comes down due to reduced capital expenditure per ha- BPL is actively working on all these areas at its test farm and in a world leading Jatropha hybrid

breeding program –see http://bionic-palm.com/jatropha for details

Revenues will go up, when Advanced (non-biofuel) uses of CJO go online which justify higher feedstock prices Press cake becomes usable as animal feed (> value of min US$450 per MT)

Commercial chemical detoxification process announced for 2012/2013 (D1 et. al.) First non-toxic, high yield hybrid cultivars from BPL’s own breeding program (Bionic JcL3.0) available

now CJO as feedstock for biorefineries becomes a reality in quantities Biomass-to-fuel technologies are introduced to make use of JcL vast biomass

production04/07/2023 8

http://bionic-palm/jatropha


Benchmark yield calculation for a mature, best practice JCL field (per ha)(NB: Needs to be verified in individual test plantings)

Theoretical maximum yield = 7980 kg seeds or 1995 kg oil

SIMPLE JCL YIELD CALCULATION METHOD

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FactorNumber of plantsHarvests per yearNumber of branchesNumber of clustersFruits per clusterSeeds per fruitSeeds per kgOil extraction rate

influenced by> planting pattern> climate> pruning technique> soil quality, fertilizer> pollination, bees> ---> variety> technology, variety

numbers1900x2x35x3x10x3/150025% (mechanical extraction)


FOOD AND FUEL AT A 7:3 PLANTING RATIO Polyculture instead of JCL with some intercropping Availability of multiple revenue streams to generate early income Integration of the best properties from all types of crops Full sustainability within minimum time frame 2nd Gen Biofuel and biochar from more than 25 MT/ha of dry waste

biomass Overall negative carbon footprint through biochar sequestration Zero waste approach Synergies between various activities/revenue streams

Maximum JCL yield requires bees for pollination Waste biomass handling produces fertilizer BTL reduces fuel cost at farm and supplies energy for processing Biochar for soil improvement potentially creates carbon credits

Each revenue stream requires full management attention

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FOOD AND FUEL THRIVING SIDE BY SIDE

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Egg plants (Aubergines)

Ground nuts (Peanuts)

Three excellent examples of the food - JcL symbiosis Not the typical JCL intercropping approach

Hot pepper (Chili)


OVERVIEW OF THE IMPLEMENTATION PHASES

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Charcoal production in kilns

Roll out of bee hives and their population

General plantation roll out of total area (up to 5000ha per farm)

Early plantation roll out (up to 1000ha)

Testing and preparation

Food crop planting on maximum field size available for early revenue generation

Plantation Development

Proper clearing and plowing

Application of standard fertilizer and water management

Use of Jatropha DOC replacing standard NPK

Biochar program

Soil Management

Additional Revenue Streams

Slowly growing processing of JCL seeds

Carbon credits for CO2 sequestration


PROJECT MANAGEMENT PRINCIPLES A multi stream project requires strong complexity management Project needs break down into small, transparent sections Thorough testing prior to roll out is obligatory

Testing helps to adjust basic methods and techniques to the actual project environment Specific crops react differently in a farm specific environment Leadership team, supervisors and personnel need to be trained and tested

Build a detailed business case based on realistic data Plan with proven data only, no hearsay from the internet In depth continuous risk assessment

Permanently review and revise business model New information from internal and external sources to be checked for relevance Recognized errors and mistakes have to be corrected immediately

Manage cost daily on detail level Build and improve revenue constantly Strong strategic model couples with everyday simplicity

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PLANTATION DEVELOPMENT Adjust technology to local conditions

Manual labor vs. mechanization Preference for manual labor

• Often the lower cost alternative• Better quality plant handling• Supports social sustainability

Governed by• Availability of workforce• Time available for a certain job

Yield targets start very low Below 60% of standards advertised Preference for open pollinated planting material when ever possible

Development of an outgrower program early on Social responsibility to be exercised all the way Strong focus on community relations04/07/2023 14


TESTING AND PREPARATION (PROJECT PHASE 1)

Nothing has been taken for granted Study of environmental conditions

Soil, nutrients Climate Water rain/irrigation situation Local pests and rodents

Development of a first set of low risk cash crops (i.e. Maize, Sorghum, Millet) Identify best Jatropha planting method

Timing Equipment selection (types & numbers)

Investment limited to the absolute essential Use of locally available services Labor before mechanization

Low operating cost Focus on essential information not perfection of operations

Recording of all details and constant strategy review Identification and planning of all acquisition of equipment, resources and

material for roll out Time required: 15 months04/07/2023 15

Completed


EARLY ROLL OUT (PROJECT PHASE 2) Detailed planning of all aspects in this phase Continuously improve business plan

Follow up on all assumptions made Adjust to reality (cost, yields, market prices) Permanent update of risk assessment

Use enough land to reach stand alone profitability Planting approach

Limited number of cash crops used Start systematic Jatropha maintenance / pruning Start seed development program combining selection and breeding

Continue testing Test as many food crops as possible

Continuously adjust strategy as needed Time required 12-18 months

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Started


GENERAL ROLL OUT (PROJECT PHASE 3) Further roll out to the final size intended at a

suitable speed Roll out speed depends on financing strategy and

development of the relevant markets Firm strategy with little variance only should be built

by now Change the plantation economics

Pass break even on developed land Further expansion financed from cash flow only

Plantation constantly remains in a profitable state Soil improvement program combined with

permanent test efforts by now allows for higher value crops in the fields developed first04/07/2023 17


JATROPHA DOUBLE HEDGE PLANTING SYSTEM

3.0 m 3.0 m 3.0 m 3.0 m1.2 m 1.2 m 1.2 m 1.2 m

10.0 m 10.0 m 10.0 m

Space for cash

crops, i.e. maize,

sunflower, sorghum,

soy, beans,

groundnut

Space for cash

crops, i.e. maize,

sunflower, sorghum,

soy, beans,

groundnut

Space for cash

crops, i.e. maize,

sunflower, sorghum,

soy, beans,

groundnut

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After extensively testing many different planting patterns a double hedge row system was chosen

Best use of available space Irrigation and fertilizer cross effects Enables efficient mechanization for cash crops Enables mechanical JCL harvesting Main irrigation pipe and nitrogen fixing cover crop between rows

Approx 1900JCL plants per ha


THE FIRST DOUBLE HEDGES PLANTED IN 2010

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Feb 2011, planted in March 2010, seedlings, pruned once


FOOD CROPS BALANCED WITH JCL HEDGES

It is a challenging task to determine the optimal split of land use between JCL hedges and food crops

High flexibility is built into the double hedge system Adjustments should be made based on selected crops Degree of mechanization and equipment used

We looked for a planting pattern that is adjustable later on

Food crop area should be measured in a way that additional JCL hedges can be added later on Example: 10m wide area can be split later by another

double hedge in two 3,5m wide areas Distances optimized for effective mechanical

farming 04/07/2023 20


FOOD CROP PLANTING PRINCIPLES Maize is our commercial baseline crop

Locally available market infrastructure with transparent prices Crop rotation is a necessity

Rotation crops will be determined year by year based on situation Possible rotation cash crop examples: Sunflower, Sorghum, Soya Castor as a high value oil plant Many optional higher value crops have been successfully tested: Water melon, egg plant, tomato, hot and sweet pepper, onions, groundnut, okro

No till farming should be considered Crop selection based on market security and price levels

Detailed feasibility study before large scale planting Logistical advantage Focused on local food markets (Vegetables for Accra & Tema markets) Replace imports on cash crops

Irrigation program for best suited fields During test operations we decided full irrigation will take precedence of speed of growth 3 to 4 high value planting seasons become feasible per year Off (dry) season harvesting attracts extremely high market prices

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PLANTING MATERIAL SELECTION PRINCIPLES African origin where ever possible Domesticated African if necessary Open pollinated seeds have preference over hybrids Strictly no GMO BPL actively supports African seed development initiatives BPL promotes an open seed exchange mechanisms for

African farmers Out growers/smallholders will always be given a choice of

open pollinated seeds BPL runs its own breeding/seed farming initiatives where

suitable

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JATROPHA PLANTING PRINCIPLES No proven superior planting material identified from “commercial” sources

globally BPL’s own breeding platform is showing a range of positive results

Dedicated sub programs ready for role out to selected locations Agronomic practices and soil quality are key success factors

Difficult choice between seedlings, cuttings, direct seeding Cuttings currently have the strongest arguments on their side

Fastest growth Best selection possibilities Near 100% success rate Best pest resistance By far the most economic planting method

Special test currently under way: direct seeding with pre-germinated seeds JCL specific mechanization essential for JCL stand alone profitability

Soil preparation and improvements Initial one-time deep plowing to break heavy clay layers Addition of biochar, microorganisms & mycorrhiza

Water management In high humidity climates rain is not essential for good growth Measures to capture condensation are easy and advisable

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Mulching is a simple way to capture early morning humidity


PRUNING & EFFECTIVE USE OF JCL CUTTINGS

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Tropical savannah soils are extremely low on nutrients and organic matter

Unsustainable African agriculture practices have further degraded the soils through common slash and burn methods and migrant farming

Resulting erosion adds to the problem Burning sun quickly consumes organic matter Wind and rain wash out the nutrients

Effective soil management requirements Increased shade with stronger vegetation Stop erosion from wind and rain Improved storage capacity for water and

nutrients in the soil Introduction of nitrogen fixing cover crops

SOIL MANAGEMENT STARTING POINT

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SOIL MANAGEMENT IN THE MODEL Concept is based on continuous improvement cycles Jatropha hedges

Roots extract nutrients from lower levels of the soil Increase humidity storage in root system and through more shade Add organic matter and nutrients to top soil due to very fast growth Reduce erosion by wind and heavy rains

Fast growing cash crops Add organic matter to the soil (i.e. corn stover) Nutrients build up through fertilizer application Reduced new weed build up saves water and nutrients

Application of natural fertilizers Animal manure Nitrogen fixing crops

Returning Jatropha press cake to the field Adds high value nutrients and organic matter

Biochar program in combination with microorganism build up Builds up long term fertile soil (terra preta) for high value crops

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USAGE OF FERTILIZERS IN THE MODEL It is essential to become sustainable on nutrient application

ASAP Initially it is unavoidable to use standard NPK for the cash crops

Some positive side effect of surplus nutrients for the Jatropha hedges will occur

As soon as Jatropha press cake becomes available it will replace NPK

Jatropha press cake has a nutritional value similar to that of chicken manure Research data suggests that maize reacts better to Jatropha press cake

than to NPK Long term JCL press cake may also get useable as animal feed after

detoxification Through a biochar/mycorrhiza program a completely new

fertilization method will be designed Balanced crop rotation and cover crops will be utilized to

reduce external fertilizer application needs and cost04/07/2023 27


WATER MANAGEMENT AND IRRIGATION Utilization of the high humidity (70 – 85% near year round)

Capturing the morning condensation is sufficientfor growth all the way through the dry season

Shade from JCL bushes reduces evaporationfrom condensation water on the ground and the leaves

Flood control measures Drainage channels Surface shaping

Control of water logging Planting pattern

Irrigation for selected fields Drip or micro sprinklers Wind and solar powered

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Seedlings in a furrow mulched with y cashew leaves thriving at the peak of the dry season

Overflow channel in a dam to avoid excessive flooding


BIOFUEL & CHAR The BIONIC GROUP’s microfuel technology

Products: 2nd generation drop-in diesel fuel from biomass feedstock Biochar for soil improvement and carbon sequestration Proven process which utilizes microwave and zeolite catalysts

Biochar plus microorganisms create a new kind of top soil Mixing of biochar with compost and microorganisms

Possible side products Char from the microfuel process is a high quality sought after product with

very special properties ideal for replacing fossil carbon in many uses Activated carbon for filter technologies Replacing fossil coal in steel production with very high carbon credit potential Carbon for tire manufacturers Solid fuel for industrial boilers

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Honey business Excellent business in its own right Positive side effects for Jatropha pollination Additional possibility to generate jobs for community

Solid fuel & Charcoal Wood waste from clearing Wood waste from pruning Jatropha

Carbon credits Copenhagen conference Dec 2009 Carbon credits for biochar will most likely be possible after 2012

Green energy & Biochar Biofuel, optionally Biogas Electricity from Biofuel or Biogas

ADDITIONAL REVENUE STREAMS

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Foodto market

Jatropha seedsto oil press

Waste Biomass

Diesel fuel for farm equipment

and sale

Press cakeback to fields

as fertilizer

Jatropha Oil to markets

Field preparation

Planted Field

Waste wood from clearing

Solid fuel (wood pellets)to market

Charcoalto market

• Soap production (local)• SVO for generators (local)• SVO as transport fuel (local)• Biodiesel production (local& global)• Biojetfuel production (global)• Biorefinery feedstock (global)

microfuel plant

CORE MODEL OVERVIEW

Biochar to fields for soilimprovement and

carbon credits


REVENUE PROJECTION ON A PER HA BASIS Some indicative numbers on per ha revenues generated within

the model(Based on a mature, stable state which should be reached after 5 years from development)

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Waste biomass from field preparation (brush branches and roots)Solid fuel for industrial boilersCharcoal

Cash crop sales (maize) Multiples of this amount are possible with higher value crops like vegetablesJCL oil salesHoney salesJCL press cake (toxic) cost reduction of fertilizers by Biomass to Biofuel for sale cost reduction for fuel used at farm

Biomass to Biochar for sale assuming 25 MT dry mass/ha/yearWaste biomass from field maintenance free supply in return for free

biocharCarbon credits from biochar sequestration assuming 2 MT per

ha/year

US$ 100(one-time)

US$ 1600

US$ 1500US$ 50US$ 150US$ 200US$ 500

US$ 150


FULL SUSTAINABILITY BUILT INTO THE MODEL Economical Sustainability

Recovery of capital needed for land preparation will be reduced to 1.5 years Improved early revenue generation Reduction of preparation cost

It is our objective to break even on food crop revenues alone Environmental

Zero waste approach No external fertilizers (as soon as internal supply cycles work) No external energy Carbon negative footprint through biochar sequestration

Social Fair, safe jobs for farming community Outgrower/Small holder program

Agronomic assistance services Supply of planting material Elimination of marketing risk Integrated microfinance opportunities

04/07/2023 33


INDEPENDENT BPL R&D PROGRAMS Based on cooperation with first class organizations around

the world European genetic lab to develop DNA fingerprinting on a large selection

of accessions in order to identify most promising material for breeding Focused on results that can be implemented quickly within

the model Introduce no till farming practices and adapt to environment Improve JCL yields significantly

Transfer agricultural practices to JCL and adapt Trial of various soil amendments Trial of mycorrhiza inoculation Trial of best suited nitrogen fixing cover crops under the hedges Trial of growth regulators

Develop first in class hybrid seeds in a fully planned out crossing program

Very high potential First results expected after 24-36 months Parental material in place, first interspecific hybrids under investigation

Special focus on non-toxic planting materials04/07/2023 34


WHERE ARE WE TODAYDESIGN > TEST > BUILD > INTEGRATE >

IMPROVE Initial test programs completed at a growth point of 150 ha Fund raising for 5000 ha expansion far advanced Currently maintaining & commercializing the 150 ha test farm Testing the roll out procedures going from 150 ha 200 ha Developing bee farming (with a partner) Preparation for professional kiln based charcoal production

(with a partner) Completing the acquisition of additional 2500 ha farm land

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WHERE ARE WE GOING FROM HEREDESIGN > TEST > BUILD > INTEGRATE >

IMPROVE Rolling out min 100 ha per month year round (from mid 2011)

Kick off with completion of 1st financing round Start processing Jatropha oil (2011/2012)

Initial order for 500 MT of CJO under negotiation Press cake will start to come back to fertilize maize

Build up modern machine park (2011 through 2013) Cost reductions mainly on harvesting cash crops

Start microfuel project for waste biomass processing (2011/2012)

BTL fuel for farm equipment Biochar starts coming to the fields in quantities

Start an outgrower program on 40% of the BPL farm land (from 2011)

Small farmers to use similar technologies as developed in the BPL model Far reaching support program to stop annual migration of fields

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CONTACT US We usually have interesting opportunities available for

investors We offer consulting and management services in all areas of

our expertise

BIONIC PALM LIMITEDAccra, Ghana, PO Box [email protected]+233 245310298

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Lake Volta, Ghana

mailto:[email protected]

http://www.bionic-palm.com/

Date post:	01-Sep-2014
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Bionic Palm integrated food & Jatropha farming model

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