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Geothermal teaser indonesia

George Christelis
George Christelis

This document summarizes an investment opportunity for a 60 MW geothermal power plant project in Indonesia. Key points include: - The project requests $218 million USD for 65% equity stake and expects to generate 473,040 MWh annually. - Financial analysis shows an IRR of 15.2% for 30% equity and 13.56% for 40% equity over the 30-year concession. - The project has a positive NPV and is considered financially feasible given geothermal resources have been confirmed at the site.

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Investment Highlights Investment of USD 218 million: in return for flexible Equity offering from 65% to 75% on the negotiated tariff prices from USD 7.66 c/kWh to USD 6.99 c/kWh, respectively. Investment Payoff: According to the project development stages: Deal, Preliminary Survey Assessment, Exploration, Steam-Field Development and Power Plant Development. Operations and Maintenance costs will be paid by the revenue generated. Estimated Production: Net output of 60 MW (6 units of 10 MW). Production per year of: 473,040 MW (60 MW x 24h x 365 days x 0.9 CF). Estimated Revenue per Year: USD 36.23 million (at USD 7.66 c/kWh). Duration of the Concession: 30 Years after the Commercial Operational Date of the first unit of 10 MW starts producing. Power Purchase Agreement (PPA): Guaranteed after the geothermal resources confirmed by Feasibility Study. PPA will be signed with PLN (The State-owned electricity company) with demand guaranteed. Investor to Retain 100% of the Profits: until the payback period is reached. Levelized Cost of Energy (LCOE): The total LCOE is only USD 3.09 c/kWh. Geothermal Resources: Confirmed from available raw data. GHG Savings per Year: 458,576 tCO comparing with Coal. Financial Highlights for the Investment Equity funding level (between 30% - 40%) to be combined with Debt funding which will be applied once 50% of Equity has been contributed. IRR calculated at 15.2% for 30% Equity contribution with ROI of 276% and Equity payback of 4.7 years. IRR calculated at 13.56% for 40% Equity contribution with ROI of 226% and Equity payback of 6.02 years. WACC is calculated at 9.85% (40% Equity) and 9.49% (30% Equity) (based on an assumed cost of capital at 14%) The NPV of the project is a positive USD 17.6 million for 30% Equity contribution (WACC of 9.49%) and a positive USD 14.7 million for 40% Equity contribution (WACC of 9.85%). Over the 30-year concession the total project produces Revenue of USD 1,087 million and Total Operating Profit of USD 611 million before tax. Conclusion: Financial Indices indicate a feasible project since in both instances the IRR exceeds the WACC with a margin for safety and NPV is positive. Renewable Energy Geothermal Power Plant 60 MW In Indonesia Investment Opportunity 2018 for the development and construction of 60 MW Power Plant with an exceptional, well experienced management team, with over 30 years Industry Experience. * Flash Indonesia: The country has about 130 active volcanoes. Due to its geological nature, it has enormous geothermal potential, estimated at 29 GW (40% of worlds reserves). The country with the worlds fourth-largest population (about 260 million) direly lacks sufficient power supplies needed to boost a surging economy, a feat that is compounded by its geographic complexity. The countrys geothermal power experience got its start in 1983. * Indonesia: Geothermal Top Country in added capacity in 2017 and Worlds 2nd Largest Geothermal Producer in 2018: Source: ThinkGeoEnergy (May 2018) * Location of the Geothermal Prospect: Lampung Indonesia * Geothermal resources expectation:
Company History & Experience PT IBE: was established in Jakarta at the end of 2015 with the purpose of exploring opportunities in concession of geothermal power plants. PT IBE Scope of Works: Project management, Technical expertise, Legal support (contractual processes, permits, certification, etc.), Liaise with Institutions & Government and Financial support on assisting the investor. Shareholders & Experience: Experienced shareholders in geothermal concession power plants in Indonesia. Management team with over 30- years experience in managing field operation, studies and planning. At the exploration stage with geothermal resources proven with success ratio above 90% of the output expected. Complete Solution: Management team with capacity of managing all the stages of the geothermal power plant project: preliminary survey assessment, exploration, steam-field development, power plant development and operations & maintenance. References: Management team has been working, among others with Pertamina, Chevron International and Geo Dipa Energy. Has been involved in the major geothermal projects: Darajat (270 MW), Salak (375 MW), Sarulla (330 MW), Wayang Windu (227 MW), Ulubelu (110 MW). Geothermal Critical Success Factors Regulation & Legal Framework: Has been updated to address some issues identified by international financial institutions and investors. Management & Technical Team Experience: the proven experience and connections of PT IBEs shareholders within geothermal industry in Indonesia is a crucial CSF for the investment and all project success. Geothermal Resource & Wells: The prospect has high enthalpy, which is important to maximize the output per well drilled. Past track record of the well success rate and output success rate has been very high which is crucial to mitigate the risk of exploration. Electricity Production and Capacity Factor: Very important for the revenue, the electricity production is predictable for geothermal power plants (theoretically 24/7). and its high capacity factor (CF) of 90% turns the investment very attractive. Revenue = Electricity Production x CF x tariff Power Purchase Agreement (PPA) & Tariff: The PPA will be signed with PLN, with demand and transmission capability guaranteed. The payments can be backed by Indonesia Government. The tariff will be negotiated with PLN between the range of USD 7.66 cents/kWh to USD 6.99 cents/kWh, national and regional prices, respectively. Timeframe and Milestones Conclusion Asking price of $218 million for 65% equity within a secure, low risk investment and stable income for 30 years concession. * Indonesia Industry Trends: PPAs covering over 600 MW of renewables were reported as signed between March and August 2017. Indonesias Ministry for Energy and Mineral Resources estimates an overall investment of USD 1.7 billion in geothermal projects for 2018.A five-year 35 GW Programme (2015- 2019) was announced by President Joko Widodo in late 2014. The goal is to complete 35 GW of power generation projects by the end of his first term. Asia Development Bank and The World Bank, among others, are heavily financing the geothermal projects. Global Energy perspective of Indonesia Government for coming years: Source: 2014 NEP, BP Statistical Review of WE 2017 * Geothermal Energy: As a renewable resource, geothermal energy is unaffected by changes in hydrocarbon prices. It is also the only renewable source with a potential capacity factor above 90%. * LCOE of Renewables: Geothermal energy has a low power generation cost. This investment has a very attractive LCOE of $3.09 c/kWh, which is much lower than the global average. Contacts for this Investment Opportunity: George Christelis Partner M: +27 84 333-6444 M: +44 7502 973-250 E: george.christelis@adancorporate.com Carlos Leiria Partner M: +44 7880 992 123 E: carlos.leiria@adancorporate.com E: life1enterprise@gmail.com
Disclaimer: This presentation has been prepared by Adan Corporate UK LLP (ADAN or the Company) and Life One Enterprise Limited (Life One or the Company) solely for your information and for your use and may not be taken away, distributed, reproduced, or redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or published in whole or in part, for any purpose by recipients direct-ly or indirectly to any other person. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any per-son of such change or changes. This presentation may not be copied or disseminated in any manner. This document has been prepared by Adan Corporate UK LLP and Life One Enterprise Limited based on the data provided by the Company for the sole purpose described herein. This document does not constitute an offer to sell securities, nor a solicitation to make an offer to purchase or acquire any securities in the Company under Italian law and/or the law of any other jurisdiction. This communication does not constitute a document of offer or a prospectus or an offering circular or an offering memorandum regarding an offering of securities by the Company and cannot be the basis for any agreement or decision to invest. Investors may not subscribe to any of the securities referred to in this document on the basis of the information contained in this communication. Neither this presentation nor any other documentation or information (or any part thereof) delivered shall be deemed to constitute an offer of or an invitation by or on behalf of the Company. Any securities offered by the Company will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act). Furthermore, the financial instruments may not be sold in the United States of America without due authorization or existence of some kind of exemption from the need to obtain authorization pursuant to the Securities Act. The Company has not obtained authorization, nor does it intend to apply for authorization, to offer financial instruments in the United States of America. Neither this document nor any related presentation nor any copy thereofmay be taken or transmitted or distributed, directly or indirectly, into the United States, Canada, Japan or Australia.It is the responsibility of anyone that has access to this document to check whether such restrictions apply and if so to comply with such restrictions. Such restrictions and any breach thereof may lead to breach of current laws in that jurisdiction. The distribution of this document and any related presentation in other jurisdictions than Italy may be restricted by law and persons into whose possession this document or any related presentation comes should inform themselves about, and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdiction. The content of this document has a merely informative and provisional nature and is not to be construed as providing investment advice. The information contained herein does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this document. The statements contained herein have not been independently verified. No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reliability of the information contained herein. Neither the Company nor any of its representatives shall accept any liability whatsoever (whether in negligence or otherwise) arising in any way in relation to such information or in relation to any loss arising from its use or otherwise arising in connection with this presentation. The information contained in this document, unless otherwise specified is only current as of the date of this document. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the content of this document, without obligation to notify any person of such revision or changes. This document may not be copied and disseminated in any manner. By attending this presentation or otherwise accessing these materials, you agree to be bound by the foregoing limitations. This presentation includes certain forward-looking statements, projections, objectives and estimates reflecting the current views of the management of the Company with respect to future events. Forward looking statements, projections, objectives, estimates and forecasts are generally identifiable by the use of the words may, will, should, plan, expect, anticipate, estimate, believe, intend, project, goal or target or the negative of these words or other variations on these words or comparable terminology. These forward- looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the Companys future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Company participates or is seeking to participate. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. The Companys ability to achieve its projected objectives or results is dependent on many factors which are outside managements control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. All forward-looking statements included herein are based on information available to the Company as of the date hereof. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The Company provides information contained herein on a strictly confidential basis; by receiving this Document the recipient undertakes with the Company to maintain strictly confidential the contents of the document and the document itself. This Document may not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the written consent of the Company. Upon acceptance of the delivery of this document the recipient warrants and accepts the binding commitment that: (i) he/she has read and fully understood, and agrees to being bound by, and to respect, the content of this disclaimer; that (ii) he/she will treat all the information contained herein and received as strictly private and confidential and shall put into place all such measures needed to ensure such information is kept secure and protected. Private and Confidential Adan Corporate Small enough to care. Big enough to get you there.

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Geothermal teaser indonesia

  • 1. Investment Highlights Investment of USD 218 million: in return for flexible Equity offering from 65% to 75% on the negotiated tariff prices from USD 7.66 c/kWh to USD 6.99 c/kWh, respectively. Investment Payoff: According to the project development stages: Deal, Preliminary Survey Assessment, Exploration, Steam-Field Development and Power Plant Development. Operations and Maintenance costs will be paid by the revenue generated. Estimated Production: Net output of 60 MW (6 units of 10 MW). Production per year of: 473,040 MW (60 MW x 24h x 365 days x 0.9 CF). Estimated Revenue per Year: USD 36.23 million (at USD 7.66 c/kWh). Duration of the Concession: 30 Years after the Commercial Operational Date of the first unit of 10 MW starts producing. Power Purchase Agreement (PPA): Guaranteed after the geothermal resources confirmed by Feasibility Study. PPA will be signed with PLN (The State-owned electricity company) with demand guaranteed. Investor to Retain 100% of the Profits: until the payback period is reached. Levelized Cost of Energy (LCOE): The total LCOE is only USD 3.09 c/kWh. Geothermal Resources: Confirmed from available raw data. GHG Savings per Year: 458,576 tCO comparing with Coal. Financial Highlights for the Investment Equity funding level (between 30% - 40%) to be combined with Debt funding which will be applied once 50% of Equity has been contributed. IRR calculated at 15.2% for 30% Equity contribution with ROI of 276% and Equity payback of 4.7 years. IRR calculated at 13.56% for 40% Equity contribution with ROI of 226% and Equity payback of 6.02 years. WACC is calculated at 9.85% (40% Equity) and 9.49% (30% Equity) (based on an assumed cost of capital at 14%) The NPV of the project is a positive USD 17.6 million for 30% Equity contribution (WACC of 9.49%) and a positive USD 14.7 million for 40% Equity contribution (WACC of 9.85%). Over the 30-year concession the total project produces Revenue of USD 1,087 million and Total Operating Profit of USD 611 million before tax. Conclusion: Financial Indices indicate a feasible project since in both instances the IRR exceeds the WACC with a margin for safety and NPV is positive. Renewable Energy Geothermal Power Plant 60 MW In Indonesia Investment Opportunity 2018 for the development and construction of 60 MW Power Plant with an exceptional, well experienced management team, with over 30 years Industry Experience. * Flash Indonesia: The country has about 130 active volcanoes. Due to its geological nature, it has enormous geothermal potential, estimated at 29 GW (40% of worlds reserves). The country with the worlds fourth-largest population (about 260 million) direly lacks sufficient power supplies needed to boost a surging economy, a feat that is compounded by its geographic complexity. The countrys geothermal power experience got its start in 1983. * Indonesia: Geothermal Top Country in added capacity in 2017 and Worlds 2nd Largest Geothermal Producer in 2018: Source: ThinkGeoEnergy (May 2018) * Location of the Geothermal Prospect: Lampung Indonesia * Geothermal resources expectation:
  • 2. Company History & Experience PT IBE: was established in Jakarta at the end of 2015 with the purpose of exploring opportunities in concession of geothermal power plants. PT IBE Scope of Works: Project management, Technical expertise, Legal support (contractual processes, permits, certification, etc.), Liaise with Institutions & Government and Financial support on assisting the investor. Shareholders & Experience: Experienced shareholders in geothermal concession power plants in Indonesia. Management team with over 30- years experience in managing field operation, studies and planning. At the exploration stage with geothermal resources proven with success ratio above 90% of the output expected. Complete Solution: Management team with capacity of managing all the stages of the geothermal power plant project: preliminary survey assessment, exploration, steam-field development, power plant development and operations & maintenance. References: Management team has been working, among others with Pertamina, Chevron International and Geo Dipa Energy. Has been involved in the major geothermal projects: Darajat (270 MW), Salak (375 MW), Sarulla (330 MW), Wayang Windu (227 MW), Ulubelu (110 MW). Geothermal Critical Success Factors Regulation & Legal Framework: Has been updated to address some issues identified by international financial institutions and investors. Management & Technical Team Experience: the proven experience and connections of PT IBEs shareholders within geothermal industry in Indonesia is a crucial CSF for the investment and all project success. Geothermal Resource & Wells: The prospect has high enthalpy, which is important to maximize the output per well drilled. Past track record of the well success rate and output success rate has been very high which is crucial to mitigate the risk of exploration. Electricity Production and Capacity Factor: Very important for the revenue, the electricity production is predictable for geothermal power plants (theoretically 24/7). and its high capacity factor (CF) of 90% turns the investment very attractive. Revenue = Electricity Production x CF x tariff Power Purchase Agreement (PPA) & Tariff: The PPA will be signed with PLN, with demand and transmission capability guaranteed. The payments can be backed by Indonesia Government. The tariff will be negotiated with PLN between the range of USD 7.66 cents/kWh to USD 6.99 cents/kWh, national and regional prices, respectively. Timeframe and Milestones Conclusion Asking price of $218 million for 65% equity within a secure, low risk investment and stable income for 30 years concession. * Indonesia Industry Trends: PPAs covering over 600 MW of renewables were reported as signed between March and August 2017. Indonesias Ministry for Energy and Mineral Resources estimates an overall investment of USD 1.7 billion in geothermal projects for 2018.A five-year 35 GW Programme (2015- 2019) was announced by President Joko Widodo in late 2014. The goal is to complete 35 GW of power generation projects by the end of his first term. Asia Development Bank and The World Bank, among others, are heavily financing the geothermal projects. Global Energy perspective of Indonesia Government for coming years: Source: 2014 NEP, BP Statistical Review of WE 2017 * Geothermal Energy: As a renewable resource, geothermal energy is unaffected by changes in hydrocarbon prices. It is also the only renewable source with a potential capacity factor above 90%. * LCOE of Renewables: Geothermal energy has a low power generation cost. This investment has a very attractive LCOE of $3.09 c/kWh, which is much lower than the global average. Contacts for this Investment Opportunity: George Christelis Partner M: +27 84 333-6444 M: +44 7502 973-250 E: george.christelis@adancorporate.com Carlos Leiria Partner M: +44 7880 992 123 E: carlos.leiria@adancorporate.com E: life1enterprise@gmail.com
  • 3. Disclaimer: This presentation has been prepared by Adan Corporate UK LLP (ADAN or the Company) and Life One Enterprise Limited (Life One or the Company) solely for your information and for your use and may not be taken away, distributed, reproduced, or redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or published in whole or in part, for any purpose by recipients direct-ly or indirectly to any other person. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any per-son of such change or changes. This presentation may not be copied or disseminated in any manner. This document has been prepared by Adan Corporate UK LLP and Life One Enterprise Limited based on the data provided by the Company for the sole purpose described herein. This document does not constitute an offer to sell securities, nor a solicitation to make an offer to purchase or acquire any securities in the Company under Italian law and/or the law of any other jurisdiction. This communication does not constitute a document of offer or a prospectus or an offering circular or an offering memorandum regarding an offering of securities by the Company and cannot be the basis for any agreement or decision to invest. Investors may not subscribe to any of the securities referred to in this document on the basis of the information contained in this communication. Neither this presentation nor any other documentation or information (or any part thereof) delivered shall be deemed to constitute an offer of or an invitation by or on behalf of the Company. Any securities offered by the Company will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act). Furthermore, the financial instruments may not be sold in the United States of America without due authorization or existence of some kind of exemption from the need to obtain authorization pursuant to the Securities Act. The Company has not obtained authorization, nor does it intend to apply for authorization, to offer financial instruments in the United States of America. Neither this document nor any related presentation nor any copy thereofmay be taken or transmitted or distributed, directly or indirectly, into the United States, Canada, Japan or Australia.It is the responsibility of anyone that has access to this document to check whether such restrictions apply and if so to comply with such restrictions. Such restrictions and any breach thereof may lead to breach of current laws in that jurisdiction. The distribution of this document and any related presentation in other jurisdictions than Italy may be restricted by law and persons into whose possession this document or any related presentation comes should inform themselves about, and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdiction. The content of this document has a merely informative and provisional nature and is not to be construed as providing investment advice. The information contained herein does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this document. The statements contained herein have not been independently verified. No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reliability of the information contained herein. Neither the Company nor any of its representatives shall accept any liability whatsoever (whether in negligence or otherwise) arising in any way in relation to such information or in relation to any loss arising from its use or otherwise arising in connection with this presentation. The information contained in this document, unless otherwise specified is only current as of the date of this document. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the content of this document, without obligation to notify any person of such revision or changes. This document may not be copied and disseminated in any manner. By attending this presentation or otherwise accessing these materials, you agree to be bound by the foregoing limitations. This presentation includes certain forward-looking statements, projections, objectives and estimates reflecting the current views of the management of the Company with respect to future events. Forward looking statements, projections, objectives, estimates and forecasts are generally identifiable by the use of the words may, will, should, plan, expect, anticipate, estimate, believe, intend, project, goal or target or the negative of these words or other variations on these words or comparable terminology. These forward- looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the Companys future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Company participates or is seeking to participate. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. The Companys ability to achieve its projected objectives or results is dependent on many factors which are outside managements control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such forward looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. All forward-looking statements included herein are based on information available to the Company as of the date hereof. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The Company provides information contained herein on a strictly confidential basis; by receiving this Document the recipient undertakes with the Company to maintain strictly confidential the contents of the document and the document itself. This Document may not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the written consent of the Company. Upon acceptance of the delivery of this document the recipient warrants and accepts the binding commitment that: (i) he/she has read and fully understood, and agrees to being bound by, and to respect, the content of this disclaimer; that (ii) he/she will treat all the information contained herein and received as strictly private and confidential and shall put into place all such measures needed to ensure such information is kept secure and protected. Private and Confidential Adan Corporate Small enough to care. Big enough to get you there.