Credal Page 1 Team: Kai Date: 16 September 2012 Indian Institute Of Technology, Gandhinagar VGEC Campus, Off- Visat Gandhianagr Highway Chandkheda Ahmedabad India Tel: +918460714907 +919998383694 Email: [email protected][email protected]Skype username: sauryaprakash Indian Institute of Technology Gandhinagar Making Power Greener
31
Embed
A BPlan on using Green Algae to create Carbon Credits!
Detailed Business Plan around an innovative approach to create a company around Carbon Credits and MicroAlgae. I had worked on this as a part of small competition that I participated during School. We could't follow it up completely because nobody in the team had the real expertise on MicroAlgae.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
The use of fossil fuels for generation of energy is fraught with several serious
challenges. Among these, the release of very large amounts of CO2 poses a
significant environmental concern. The limited efficiencies of alternative sources of
energy as well as their higher cost complicate the scenario especially in a country
like India, which has only recently begun consuming energy at a higher per capita
rate than ever before. The countries large population and dependence on traditional
fuel sources for powering its infrastructure necessitate a nuanced approach to the
problem of CO2 emissions.
Credal is a medium sized carbon consulting and algae producing firm located in
Ahmedabad, India. It specializes in providing carbon sink solutions by leveraging on
algae for carbon sequestration. The algae sink absorbs emissions from the power
plants. This absorbed CO2 is quantified in terms of captured carbon and converted
into carbon credits. The credits are rationed or sold to the partners as per the
agreements. The company also provides algae which could serve as the raw
material for biomass and other algae based firms.
The company will begin its operation by partnering with the Torrent thermal power
plant in Ahmadabad. The carbon sequestration algae incubators will be set up near
the power plant. The initial batch of required algae for sequestering CO2 would be
bought from the local vendors. The carbon sequestration process will produce large
amount of algae which will be sold to the partners and algae based companies. In
the first phase, city municipal corporations and algae based food and cottage
industries would be targeted as potential customers for algae. Steel and fertilizer
plants like IFFCO, GSFC have been identified as potential second phase partners.
An initial capital of $ 12,21,000 would be invested for acquiring the land. $ 5,85,000
would be used for purchasing the initial stack of algae. A total fixed cost of $
81,40,600 will be needed for complete construction of the incubator. Details of the
cost have been provided in the Financial plan section of this plan. $ 15,84,900 is
required for running daily operations for the first 6 months. By the end of first year
revenue expected is $ 71,64,300. The projected revenue for the 2nd year is $
Credal
Page 4
1,43,28,700. The internal rate of return (IRR) is 19% and the payback period is 2.8
years.
The team constituting Credal comprises of Ravi Agarwal, Saurya Prakash Sinha,
Tarkeshwar Singh and Dipesh Dayama. Ravi and Dipesh are final year Mechanical
Engineering undergraduates while Saurya and Tarkeshwar are final year students
from the Electrical Engineering department. Their previous roles in firms and
organisations like Ricoh, UL, ISRO, IIM-A and several others have sharpen their
technical and marketing acumen. The team’s complimentary skill set and insight
gained in previous roles makes them apt for executing Credal.
Credal represents a paradigm shift in the operation of coal-based thermal power
plants, and forges a unique syncretic relationship between entities that normally do
not have overlapping objectives. Its model of operation is expected to revolutionize
the energy sector in the country and will usher in real emissions reduction without
comprising on installed power requirements.
Credal
Page 5
1. Company Description We are a start up firm that essentially specializes in generating Carbon Credits by
setting up Sequestration plant employing algae as trappers. Our motivation
lies in making the carbon emitting plants cleaner by reducing their emission in
the atmosphere. The idea of providing incentive for less emission has high a
potential of bringing down the reductions. This trading scheme has been
implemented in EU in two phases and there has been a decline of 11% in
emission which proves its effectiveness.
The dumping of emission coming out from the power, steel plants has been one
of the major challenges which India faces. Our approach here has been to reduce
carbon di oxide by channelizing the emissions into an algae incubator, which uses
algae for trapping carbon di oxide. The quantization of trapped by the algae will
have two benefits: one, it will help the plants to get rid of their emissions and
simultaneously it is going to generate credits in terms of trapped. The plant can
trade the credits depending upon the model agreement and generate revenue.
The end product of this whole process are two: carbon credits and algae. It is
expected that the revenue will be 60%-40% from the two products respectively. The
expectations have been justified in the monetary details provided in the Financial
Plan. The by product algae, generated from the plant will be traded as a raw material
for various businesses which rely on algae as the starting or intermediary
component. We are also considering the possibility of mixing algae with the waste
and using it as a landfill material in urban areas. We believe in openness and
collaboration and yes, we do know that we cannot do it alone. We have taken the
role of algae facilitators and kept he platform open for anyone to come and build on
our shoulders.
Credal
Page 6
1.1. Mission Statement We believe in the fact “make an effort where it hits the most”. Our company aims to
reduce the Green House Gases emissions from the globe leaving a cleaner and
greener environment for our generations. We work collaboratively to reduce
emissions and make it clean. Our focus on technology makes carbon market and
environment more integrated.
1.2. Goals and Objectives
Sustainability is our ultimate goal. The main revenue source is Dead Algae. We aim
to capture the market on a region wise basis starting with a relatively small region
and moving onto the bigger consumer regions. The company aims to increase its
revenue by developing sustainable and long term business partnerships. The initial
break-even point comes in the third year and from there the company has a constant
growth driven model.
The company aims to work on a constant growth driven model. Increasing the
efficiency of the incubator and new designs of incubator are our primary goals.
Further after the initial break-even, the company will invest in developing new forms
of genetically modified Algae for better efficiencies and customer specific products.
The target customer base will be focused upon and accordingly new forms of algae
will be developed.
The company plans to be an institutional seller of carbon credits in the later growth
stages. It aims to participate in Carbon exchanges rather than a retail selling. The
ultimate decision relies on Post-Kyoto treaty after 2012.
2. Products and Services The plant consists of various chambers containing algae. The emissions are
following the paths provided by the conduits and reach the Incubator. The algae
present inside the incubator absorbs the present and gradually with the
passage of time as it adapts to high environment, its capacity to absorb
rapidly increases. This makes the process more efficient with time as if previously
Credal
Page 7
30% of the carbon was getting absorbed then now it is absorbing 80%. Researchers
at MIT have confirmed the figures .There is some variation in the amount of
with the available sunlight and atmospheric conditions but the efficiency remains
more than 50%.
2.1 Incubator Design CAD Model
Figure 1: Plant Schematic with major units
Figure 2: Algae Incubator- flue gas intake from exhaust chimney
Credal
Page 8
Figure 3: Inner Sectional View of the Incubator with arrays of Algae beds
Figure 4: Inner Sectional View of the Incubator with arrays of Algae beds
2.2 Suppliers
The initial supply of Algae will depend on initial business partnership. The company
aimsto implement its first incubator at an Indian state Gujarat. The thermal power
plant near the city Ahmadabad has high carbon emissions and has sufficient space
to develop and implement the incubator there. As a result, initial algae will be
purchased from a firm located near the city. The supply chain logistics will be quite
simple as the Algae supplier delivers its product outside the state too. It has a high
algae supplying capacity and has the potential for supplying for a long period if more
algae is required.
Credal
Page 9
3. SWOT Analysis
Strength Weakness
Highly cost effective method for major
carbon dioxide emitting sectors
Low cost raw material
No problem of carbon dioxide
transportation
No exploitation of underground
resources unlike existing carbon
sequestration techniques
Self- sustaining system
Low infrastructure costs in India
Dead algae, low-cost and eco-friendly
method of biomass production
Tested, reliable and simple
technology
No change in existing power plant
design
Improper moderation may lead to
algae growth inhibition
High upfront costs
High incubator maintenance
Incubator limitations, if power plant
operates at full throttle
Opportunities Threats
Kyoto protocol is ending in 2012. The
expected cap is between 10-15%
Regions like Australia, New-Zealand,
Mexico, California are starting their
pilot trading scheme
India, being a fast growing nation, is
quite attractive for foreign
investments.
USA (biggest emitter) might not
comply with any post-Kyoto treaty
Presence of international market
players
Volatile carbon markets and present
low carbon prices
Environmental and human risks
associated with toxic and infectious
agents involved in algal processes.
Credal
Page 10
4. Marketing Plan
4.1 Market Size and Statistics The two products that shall come out of the entire process are the Dead Algae in the
form of biomass and the Carbon Credits and hence it is necessary to evaluate the
market opportunities for both of them individually. This shall help in making an
informed judgement about the growth opportunities for the firm.
4.1.1 Carbon Credits Market:
Under the Kyoto Protocol, the 'caps' or quotas for Greenhouse gases for the
developed Annex 1 countries are known as Assigned Amounts and are listed
in Annex B.[9] The quantity of the initial assigned amount is denominated in
individual units, called Assigned amount units (AAUs), each of which
represents an allowance to emit one metric tonne of carbon dioxide
equivalent, and these are entered into the country's national registry. In turn,
these countries set quotas on the emissions of installations run by local
business and other organizations, generically termed 'operators'. Each
operator has an allowance of credits, where each unit gives the owner the
right to emit one metric tonne of carbon dioxide or other equivalent
greenhouse gas. Operators that have not used up their quotas can sell their
unused allowances as carbon credits, while businesses that are about to
exceed their quotas can buy the extra allowances as credits, privately or on
the open market. This opened up a completely new market which has grown
exponentially in the last decade.
Some of the interesting statistics and observations about the
Carbon trading Market:
The Carbon markets worldwide grew by 11% in 2011 to reach a net size of
$176 billion1.
The transaction volume in terms of CO2 emissions reached 10.3 billion
tons.2
1Source: State and Trends of the Carbon market, 2012, World Bank Report
2Source:State and Trends of the Carbon market, 2012, World bank Report
Credal
Page 11
The European Union Allowance volumes increased to a valuation of $148
billion.
The imminent end of the first commitment period of the Kyoto Protocol has
brought in a lot of uncertainty in the prices of the Carbon certificates being
traded through the exchanges.
Under business as usual projections, the Carbon emission of the world
shall reach 56 Gig tons by 2020. Even if all the countries adhere to the
Copenhagen Accord the projections stand at 49 Gigatons of CO2
emissions annually.
The projected emission reduction demands for the period 2013-2020
worldwide is between 2156-2706 billion tons of CO2 emission reductions.
The minimum projected demand till 2030 for CER certificates is projected
at 8.9 Gigatons of CO2e.3
4.1.2 Algae (Biomass) Market:
The biomass market has seen a recent rise because of its increased
applications ranging from Biodiesel, organic foods and fertilizer based usages.
Some of the interesting statistics about the biomass market are:
The Global biomass market is expected to increase to $693 billion in 2015
from $573 billion in 2011. This corresponds to a CAGR of 3.9%.4
Primary solid biomass use for EU power and heat sector will increase to
146-158 Mtoe5 in 20206.
Bio-energy use will increase by 2.5 times till 2020.
The import requirement for Biomass for the European Union shall stand
somewhere between 26-38 Mtoe by 20207.
4.1.3 Algae Market:
Algae are grown commercially mainly for being processed into bio-fuels such
as ethanol and biodiesel and as neutraceuticals. While the utility of algae in
providing a variety of useful compounds has been known for a long time,
3Source: A Cost Curve for Greenhouse Gas Reduction, Report by McKinsey 4Source: http://www.environmentalleader.com/2010/09/20/biomass-market-to-hit-693-billion-by-2015/ 5Mtoe stands for Million tons of oil equivalent 6Source: Biomass 2020: Opportunities, Challenges and Solutions, Report by Eurelectric. 7Source: Biomass 2020: Opportunities, Challenges and Solutions, Report by Eurelectric
Credal
Page 12
appreciation for algae as a major fuel source is a recent phenomenon. In
particular, variations in the environmental culture conditions such as nutrient
supply, length of growth period and speed of operation can influence the bio-
molecular diversity of algal biomass. Notably, while the lipid and carbohydrate
content of algae vary widely across different species, they can both be
converted into forms that can be used as fuels. Nevertheless, nutrition and
health products continue to dominate the algae market and there are no
commercial algae plants operating with the consistent purpose of producing
bio-fuel. For prominent market players, see section 6.4.
The market for algae as a source material is extraordinary considering the
targeted annual processing of million tonnes or more of algae for most of the
companies listed in section 6.4. The market is still in its nascent stages
considering rapid technological developments pertaining to bio-fuel and
biodiesel refining from algal species. A conservative estimate of the relevant
algae market based on algal strain used, in terms of compatibility with existing
industries, is pegged at 1 -5 million tonnes annually. The vast majority of
current enterprises focus on the ability to process algae into fuels that can
compete with traditional petroleum and other fossil fuels. Thus, to an extent a
steep growth in the algae market especially in the context of bio-fuels has
been restricted by the price of petroleum. This is likely to change in the recent
future due to expansion of operations of the major players as well as
increased use of algal strains as feedstock and neutraceuticals.
4.2 Target Customers The product being presented is a B2B product and hence the customers are more
like partners who shall have a longer time horizon of partnership. These customers
in principle can be anyone who wants to buy carbon credits or algae. However the
following sectors shall be primary targets for the products:
Cement Industry: Cement manufacturing releases CO2 in the
atmosphere both directly when calcium carbonate is heated, producing lime
and carbon dioxide, and also indirectly through the use of energy if its
production involves the emission of CO2. The cement industry produces
about 5% of global man-made CO2 emissions, of which 50% is from the
Credal
Page 13
chemical process, and 40% from burning fuel. The amount of CO2 emitted by
the cement industry is nearly 900 kg of CO2 for every 1000 kg of cement
produced. With the increasing stringent impositions on pollution control, the
cement industry can be targeted as a major customer for the sale of Carbon
Credits.
Steel Industry: Today, the world steel industry accounts for between4 %
and 5 % of total man-made greenhouse gases. The average CO2 intensity for
the steel industry is 1,9 tons ofCO2 per ton of steel produced. Taking into
consideration the global steel production of more than 1,3 billion tons, the
steel industry produces over two billion tons of CO2.Over 90 % of emissions
from the steel industry come from iron production in nine countries or regions:
Brazil, China, EU-27, India, Japan, Korea, Russia, Ukraine, and the USA.
Thermal Power Plants: Thermal power plants are a primary contributor
to the total greenhouse gas emissions worldwide. Among the thermal power
plants, coal combustion results in greater amounts of carbon dioxide
emissions per unit of electricity generated (2249 lbs/MWh) while oil produces
less (1672 lb/(MW·h)) and natural gas produces the least 1135 lb/(MW·h).
According to a report published in 2008, out of the total 28 Gigatons of CO2
generated worldwide, 8 Gigatons was contributed by Coal based thermal
power plants. Cost of reducing CO2 emissions by a ton is estimated to be $25
to $30 and hence Carbon Credit shall be a favourable option for the industry
to undertake.
Financial Banks: The growth in Carbon trading as a commodity has
promoted the financial banks across the world to take significant positions in
the market. These banks deal with the Future trading of Carbon Credits where
they are made to deliver credits at the end of the fixed time period. The high
fluctuations and short time horizon provide opportunities of earning more for
each carbon credit sold to investment firms or brokerages.
Public Transportation Systems: Public transportation Systems form a
major component of voluntary Carbon offsets. These are generally
government owned and shall act as potential buyers of Carbon Credits.
Organic Food Industry: The organic food industry has seen a dramatic
rise in the last few years primarily because of the growing concern among
Credal
Page 14
people on the harmful effect of the use of fertilisers and pesticides in crop
production. Algae biomass shall have huge applications in this industry.
Organic Fertilizers: Organic fertilizers have seen wide adoption because
of the growing understanding among farmers about the long term problems
created by Chemical Fertilizers.
Bio-diesel plants: Algae has seen industry wide adoption in Biodiesel
production which is increasingly being tried and tested for the power
generation and transportation purposes. This makes biodiesel plants a
potential customer for the firm.
4.4 Prospective Partners The partners for the firm shall have the major role of providing the Carbon emission
that shall be used by the microalgae to multiply itself. In principle any carbon emitting
industry shall be potential partner for Credal. However, based on the carbon
emissions of different industries, the following can be highlighted as the priority for
partnering:
Thermal Power plants
Cement Industry
Steel Industry
4.5 Existing Market Players About 70 companies worldwide manufacture specific algal species for the
neutraceutical industry. Prominent among these are the Taiwan Chlorella
Manufacturing Company which produces nearly 400 tonnes of dry algal biomass per
year. In India, the algae Spirulina is widely produced in total amounts of close to 300
tonnes annually. Spirulina production and use has been widely promoted especially
in southern states as a sustainable for of rural agro-economic development. Dabur
and EID Parry are major producers of the algae in India. The global demand of
Spirulina alone is estimated at 5000 tonnes annually only half of which is met
currently.
In addition to the growing market of food and health products from algal sources,
several companies worldwide have begun start-up or pilot scale projects towards
using algae for biofuel production. Prominent among these is Algenol Biofuels, that
Credal
Page 15
uses cyanobacteria (species of blue-green algae) to prepare ethanol which can be
easily separated from the culture medium. Algenol Biofuels is currently at the pilot-
scale and is working in collaboration with the Dow Chemical Company, National
Renewable Energy Company and Georgia Institute of Technology. Sapphire Energy
is a start-up venture based in New Mexico and is engaged in the production of bio-
diesel from algae. Hawaii-based Cellana was previously prominent in feedstocks and
personal care products and has diversified into algae-bio-fuel production utilizing
industrial emissions of CO2. Solazyme specializes in algae-based jet-fuel production.
The US Navy purchased 150,000 gallons of the jet fuel at a total cost of $10 million.
Arizona based Heliae Development, LLC is involved in development of multiple algal
strains and products that are ultimately refined into jet fuel.
There are a lot of existing carbon brokers and wholesalers in USA and a few in India.
The potential market competitors to our firm are:-
AtmosClear Climate Club:- It is a USA based for-profit organization
providing carbon offsets to individuals and institutions. Consumers become an
AtmosClear Climate Club member by purchasing credits in blocks of 1, 3, 6,
12 and 25 tons. Buyers of these credits are provided with special deals from
sponsors of the program such as ski resorts. Offset projects include methane
trapping and renewable energy projects. They have invested at the Des
Plaines Landfill based northwest of Chicago, Illinois and have third party
verification by Environmental Resources trust. They charge a carbon price
varying from US $3-$25 per ton of CO2.
Atmosfair:- It is a Germany based for profit organization which provides
offsets for GHG created by air travel. Passengers can determine their travel
emission online through Atmosfair’s online calculator and then purchase
credits from them. The company invests in Gold standard CDM certified
climate protection projects. They have invested in electricity generation from
waste, projects in University of Rio (Brazil), solar heaters for kitchen at
schools, hospitals and temples in India and electricity projects in South Africa.
Under the CDM mechanism these projects are carried out according to Kyoto
rules and are monitored by UN accredited technical organization.
Credal
Page 16
The Climate Trust:- The Climate Trust is a US based not-for-profit
organization investing in emission reduction projects on behalf of businesses,
individuals and organizations. It is one of the largest offset buyers in USA.
The company invests in renewable energy, carbon sequestration,
cogeneration, material substitution and transport efficiency projects. It
manages the projects for over lifetime and retires credits on behalf of emitters.
Generated credits are exclusively owned by the company. It has invested in
Oregon Paper plant, wind farms in Oregon and Washington etc.. It has offset
4.5 million tCO2 till date. The average price range of the credit is US $6-$10
per ton of CO2 .
Terrapass:-It is a US based offering motorists a way to offer their car
emissions through the purchase of emission offsets. It works with wholesalers
and CCX to purchase credits and invests in GHG abatement projects.
Uniquely it publishes its transaction history online. It is certified by the
organization Green-e. It has offset 12000-15000 tCO2 till date. The average
price band of carbon credits is US $9-$12.
Although none of the above market players are involved in algae production but they
are solely into carbon management business. The above mentioned organizations
are some of the biggest carbon credits producers and sellers.
4.6 Pricing Strategy
The pricing strategy of a product is critical to its success. The product being
mentioned here is a B2B product which implies that pricing shall be a major
component of the marketing strategy. The Dead Mass produced from the processes
shall have a fixed pricing structure which shall be in sync with the market price for
each ton of biomass. However, the Carbon Credit pricing can have two possible
structures because of the possibility of Customer and raw material (carbon emission)
provider being the same. The following are the two possible partnering structures:
I. The first type of partnership will involve our company and the firm providing
carbon dioxide, as raw material, are the only stakeholders. Here the firm
providing emissions will be the same who will be using the credits generated
Credal
Page 17
and hence we will charge a carbon credit price of approximately $11 for the
service we are offering.
II. The second type of partnership will involve our company, the emission
provider and the credit purchaser. Here we will charge a carbon credit price of
$ 15-20 (approx.) to the third party and the emission provider will be given $5
(approx.) per ton of emission supply.
Note:- The carbon credit prices mentioned above are highly subjected to the
prevailing market prices of credits at the concerned time and volumes of purchase
and hence will be modified accordingly.
4.7 Initial Marketing Strategy 4.7.1. Web advertising (Google Ad sense)
The initial web presence will be communicated using the Google
advertising platform. It will help us target the potential partners and
consumers.
4.7.2. Approaching power plant through presentations and seminars
Approaching thermal power plants locally and offering joint
partnerships. This would be in terms of presentations and meetings.
4.7.3. Initiating partnerships with major players in this field
Approaching the existing players and persuading partnerships on
regional basis. Here we will approach different state governments for
developing initial partnerships with various state government ruled
bodies.
4.7.4. Inviting Universities Environmental and energy department to partner
with us.
Making our presence among the Universities and reaching out to the
academia. Company will provide internships for students and long term
relationships will be developed for promoting research in this field
helpful to the company. In the later stages we could sponsor some of
the PHD positions in the universities. These positions would be
focussed on the financial aspects of the environmental engineering.
Credal
Page 18
4.7.5. Presence in environmental conference
Conferences will provide us a platform to reach the interested group of
people and land for partners.
4.7.6. Floating a few ads in Business media (If budget permits)
A short commercial making our case could be floated in media.
5. Opportunity Estimation8 The opportunity size for the firm shall vary significantly with the growth of CO2
abatement ways that come up for the major Carbon emitting industries. Hence, it
becomes necessary to estimate the market left for the product after taking in
consideration these factors. An interesting insight about this was made in a report
published by McKinsey in 2007.The report discusses the cost curve for the
Greenhouse Gases reduction for various industries. It makes projects trends till 2030
and predicts the Global CO2 emissions to be 26.7 Gigatons in 2030. The report
further goes onto prove that 70% of these reductions shall be met by cost effective
ways where each ton of CO2 emission reduction shall have a marginal cost of less
than 40 Euro. The rest 30% shall act as the worst case market opportunity for the
firm which comes out to around 8.9 Gigatons per year in emissions.
6. Plant Operational Plan
The incubator is fed with the emissions coming out of the power plants. Suction
pumps placed at the bottom of the incubator are used for sucking the emission inside
the incubator. These pumps create a vacuum at the bottom which helps in circulating
the emission through the central conduit.
The incubator has algae plant beds which are placed at vertical positions. The
emitted gases are captured by the algae when passed through them. The efficiency
of capture depends upon the algae being used and the duration of the daytime. The
incubator has been designed while keeping in mind the sunlight requirements of
algae. A transparent borosilicate glass has been used of making the top of the
chimney for facilitating the sunlight to come in. Inside the incubators, reflectors have
been used to for spreading the sunlight across the algae beds. Each algae beds or
8Source: A Cost Curve for Greenhouse Gas Reduction, Report by McKinsey
Credal
Page 19
pond has a capacity of 5000 litres and has 250 kg of algae (Taking 50g of algae per
litre of water). The overall estimated size of the incubator is 3,200,000 litres and
contains 13.5 tonnes of algae at one go. The expected cost of the setup comes
somewhere around 3 Crores.
The incubator will be placed somewhere near the chimney and exhaust pipes from
the chimney would be connecting the plant to the incubator. The algae is getting
doubled in a time duration of 7-8 hrs. Meanwhile a sufficient amount of algae is
maintained inside the incubator so that the incubator could effectively reduce the
emissions. The doubled algae will be carefully taken out from the incubator after 48
hrs on a regular basis. Part of the algae would be kept in ponds for their renewable
after 48 hrs. The batch of algae taken out will be used for selling to other industries
which primarily uses the algae as the raw material.
The plant has conduits which are connected to each of the algae beds for supplying
water. The algae which have been exposed to the emissions are automatically
taken out from the incubator and loaded on the connected train trolleys. The whole
process of loading is automatic and does not involve any human intervention.
We will be using Programming Logic Controllers for making the system work
automatically. After every 48 hrs the existing batch of algae present in algae beds is
lowered and the algae present in it gets transferred to the trolleys. In a similar
fashion, the new batch of algae is spread onto it which is followed by immersing it in
water and then moving it to their respective places. The number of algae beds filled
will be depending upon the emission coming in, which would directly be depending
upon the capacity at which the plant is operating.
The excess algae are taken out and 10% of it is converted in to dry biomass by
keeping it isolated from the sunlight. The rest if the algae which is fairly rich in fat
content could be possibly employed for making algae oil, biodiesel and could also be
consumed (verify).
For scaling the incubator capacity, a number of similar incubators could be
connected in parallel and these together would be performing the same function as a
standalone incubator.
Credal
Page 20
7. Management and Organization Structure
The company’s management shall be divided into three different sections viz: the
Operations Division, the R&D cell and the Financial Section. Each of these shall be
headed by one individual and the three of them shall report to the Chief Executive
Officer of the company. The heads of the three divisions shall be called Chief
Operations Officer, Chief Technology Officer and the Chief Financial Officer. The
function and role of each of the divisions and their leads is mentioned below:
CEO: Ravi Agarwal, Mechanical Engineering, IIT Gandhinagar
He is passionate about working in Carbon markets and his intern at IIM Ahmedabad
introduced and gave him a broader perspective about carbon finance. He believes,
Economics to be a major market driving force which could generate momentum in
pushing reforms for climate change. He has held several managerial positions in the
college which has made him familiar with the intricacies of the job and made him
suitable for the role of CEO.
Ravi plans to take up an MBA after completion of his undergraduate studies. The
experience gained through this venture would facilitate him in understanding the