Global Social Entrepreneurship Competition University of Washington February 28, 2008 John Paul Scott Brewster
Jan 15, 2016
Global Social Entrepreneurship CompetitionUniversity of Washington
February 28, 2008
John PaulScott Brewster
Market Need
The Business
Jatropha Value Proposition
Hardy
Farmers Community
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
FarmersCarbon
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-Creation
Capacity Building
Decentralized Wealth
Rural Enhancement
Maintain Biodiversity
Top-Down
Extractive
Concentrated Wealth
Rapid Urbanization
Monoculture
Plantation Model
Akan Energy Scale-Up Plans
Business Ecosystem Financial Summary
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 Ecosystem Akan EnergyFarmer Earnings $71K $29M
Fuel Savings $44K $11M
Oil Imports Reduced (BBL) 1.5K 160K
Carbon Credits 2.5K 240K
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 TodaySome 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
• 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 saplingsYear 3: First harvestYear 5: Seeds harvested exceeds
local demand
Sensitivity Analysis: Entrepreneur
Sensitivity Analysis: Akan Energy
Cost Yield Environment Required Inputs
Food / Fuel Trade
Feasibility for AE Model
Jatropha
Palm
Sunflower
Soy Bean
Rapeseed
Diesel N/A N/A N/A
Biofuel Comparison
Entrepreneur Equipment Details
Capacity: 70-100 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 contentLifetime: needs to be replaced every 5-10 yearsCost: 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