Conversion of Cooking Oilto Biodiesel(A pilot Project)

Prepare for higher pump prices of petrol and diesel with subsidy cut

Monday May 12, 2008

Diesel subsidy scheme in 6wks, petrol next

Sunday April 27, 2008

By GLADYS TAY

COMMENTBy V.K. CHIN

Transporters: Drop diesel subsidy, cut road tax

Saturday April 26, 2008

Diesel Consumer Price

RM1.58

RM2.58

RM3.58

USD 100

USD 120

USD 180

“Used cooking oil can be purchased for the

purpose of manufacturing bio-diesel”

Basically suitable for:Cooking oil

Palm oilCoconut oilJatropha

Potential Economics

Purchase of Used Cooking Oil RM0.80-1.50/litre

Processing of Bio-diesel RM 0.30-0.50/litre

Administration and operating costs RM0.20-0.30/litre

Potential Litre Cost RM 1.30-2.30/Litre

Test Market Size (Estimation)

• 45 Buses @ 40 Litres Per Day

• 1800 litres per day

• 9000 litres per week

Revenue Per Week 9000 litres X RM2.30 = RM20,700

X 3.00 = RM27,000

Based on 52 weeks RM1.07-1.4 million turnover pa

Potential Net Return (annual)

Revenue: RM 1.04-1.4 Million

Fixed Costs: RM 93-140K

Variable Costs (cooking Oil + Processing): RM514 – 936K

Net Return (Before Taxes) = RM 324-433K

Based on 350K InvestmentROI = 92.57-123%

Stakeholder Benefits

Successful Commercialization in area of national importance

Opportunity to go for first taker advantage with business model

Opportunity to prove business/academic relationships work

Recycling Fuel SecurityDomesticInnovation

Ability to Organise Collection of Cooking Oil

Ability to Convert Cooking Oil to bio-diesel efficiently

Ability to maintain strategic customers

Potential Venture Modus Operandi

Bio-diesel Venture Vehicle

KUKUM Engineering Bhd Welli Bhd

UniMAP

Technical Service Agreement

JV Agreement

Sales Agreement

Techno-fund

Critical External Events

Future of Diesel Subsidy