Executive Summary
This business plan utilizes a $300 million budget over 5 years to produce biochar from coconut husks/shells in the Dominican Republic (DR) and the Philippines, with CAPEX spread evenly over 60 months. In the DR, 3 BST-50 machines, installed in Month 1, process 108,900 tons/year of feedstock, generating ~$9.8 million in annual revenue at full capacity. In the Philippines, 208 machines are installed at ~3 machines/month, scaling to $679.5 million annual revenue by Year 5. Total 5-year net profit is projected at ~$2.82 billion, with a remaining $380,000 for contingencies.
Company Overview
Industry
Biochar production from agricultural waste.
Locations
Dominican Republic (initial contract) and Philippines (expansion).
Mission
Convert coconut husk waste into high-value biochar sustainably.
Vision
Lead global biochar production using tropical feedstock.
Market Analysis
Feedstock Supply
- DR: 120,450 tons/year (15 tons/hour × 22 hours/day × 365 days/year), using 108,900 tons/year.
- Philippines: >7,550,400 tons/year for 208 machines.
Product
Biochar, sold at $300/ton for agriculture and carbon sequestration.
Demand
Rising need for sustainable soil amendments and carbon credits.
Competitors
Few large-scale biochar producers; advantage from low-cost feedstock.
Operations Plan: Dominican Republic
108,900
Tons/Year Feedstock
3 machines × 36,300 tons/year
3
BST-50 Machines
Installed Month 1, Year 1
32,670
Tons/Year Biochar
3 × 10,890 tons
$4.26M
CAPEX
3 × $1,420,000
Operations Plan: Philippines
7.55M
Tons/Year Feedstock
Scales to 7,550,400 tons/year by Year 5 (208 × 36,300 tons)
208
BST-50 Machines
Installed ~3/month over 60 months
2.26M
Tons/Year Biochar
Scales to 2,264,320 tons/year by Year 5
$295.36M
CAPEX
208 × $1,420,000
Financial Plan: CAPEX
Financial Plan: OPEX
Financial Plan: Revenue and Net Profit
$299.62M
5-Year CAPEX
$88.11M
5-Year OPEX
$1.51B
5-Year Revenue
$1.43B
5-Year Net Profit
Remaining Budget: $380,000
Payback Period: ~2.5 months by end of Year 5
ROI: ~95.24%/year
Risk Analysis
Feedstock Supply
DR limited to 120,450 tons/year; Philippines requires verification of >7,550,400 tons/year.
Market Risks
Biochar price volatility ($300/ton assumed).
Operational Risks
Delays in machine delivery/installation, labor shortages.
Mitigation
Phased rollout reduces initial risk, contingency budget ($380,000), maintenance funds.
Implementation Timeline
1
Year 1
- Month 1: Install 3 DR machines.
- Months 2–12: Install 3 PH machines/month (33 total).
2
Years 2–4
Install 3 PH machines/month (36/year).
3
Year 5
Install 3 PH machines/month for 11 months, 4 in Month 12 (37 total).
4
Operations
Machines operational from the following month, scaling production annually.
Summary
Spreading CAPEX over 5 years allows for a controlled rollout, mitigating risks associated with rapid scaling. The DR operation generates steady profits from Year 1, while the Philippines scales to significant returns by Year 5. With a 5-year net profit of ~$1.43 billion and a low payback period, this venture remains highly viable.
Detailed OPEX Breakdown
Phase 2: Biochar to Sustainable Aviation Fuel (SAF) Production Plan
Overview
Phase 2 converts 2,296,990 tons/year of biochar (32,670 tons DR, 2,264,320 tons PH) from Phase 1 into SAF oil using pyrolysis and ATJ/FT technologies. The $2.3B CAPEX is spread over 5 years, installing 92 SAF-100 plants (1 DR, 91 PH) at ~1.5/month. Each plant processes 100,000 tons/year biochar, producing 30,125 gallons/year SAF. Operations scale with installations, reaching full capacity in Year 5, generating ~$2.07B/year revenue and ~$1.84B/year net profit.
Operational Plan: Dominican Republic (Phase 2)
32,670
Tons/Year Biochar
Input from Phase 1
1
SAF-100 Plant
Installed Month 1, Year 1, operational Month 8
9.8M
Gallons/Year SAF
Full capacity output
$25M
CAPEX
For 1 SAF-100 plant
Operational Plan: Philippines (Phase 2)
2.26M
Tons/Year Biochar
Input from Phase 1
91
SAF-100 Plants
Installed ~1.5/month over 60 months
679.3M
Gallons/Year SAF
By Year 5 at full capacity
$2.28B
CAPEX
For 91 SAF-100 plants
Financial Plan: CAPEX (Phase 2)
Financial Plan: OPEX (Phase 2)
Financial Plan: Revenue and Net Profit (Phase 2)
$2.3B
5-Year CAPEX
$512.3M
5-Year OPEX
$13.5B
5-Year Revenue
$13.0B
5-Year Net Profit
Payback Period: ~2.2 months by end of Year 5
ROI: ~113.32%/year
Risks and Mitigation (Phase 2)
Feedstock Stability
Ensure biochar quality consistency. Implement quality control systems.
Market Risks
SAF price volatility ($6.69/gallon assumed). Hedge through forward contracts.
Operational Risks
Technology scaling, maintenance downtime. Allocate contingency funds, train staff.
Regulatory Risks
Compliance with ASTM D7566, CORSIA. Engage certification bodies early.
Conclusion
Phase 2 transforms 2,296,990 tons/year of biochar into 689,097,000 gallons/year of SAF, generating ~$13.03B in net profit over 5 years with a $2.3B investment. The phased rollout aligns with Phase 1, ensuring scalability and high ROI, positioning the project as a leader in sustainable aviation fuel production.
Environmental Impact
Significant carbon sequestration through biochar production and reduced aviation emissions with SAF.
Financial Success
Combined 5-year net profit of ~$14.46B from both phases with strong ROI.
Scalable Model
Proven approach that can be replicated in other coconut-producing regions globally.
Strategic Partnerships
Opportunity for collaboration with airlines, agricultural sectors, and carbon credit markets.
