Energy Forests: Biomass Pellets from Eucalyptus

Created on: 11 Dec 2014 Last updated: 27 Apr 2017
Project Location
Argentina
Chajari, Entre Ríos
Primary Industry
Clean Energy
Environment
Investment Amount
$0 to $10 Million
Investment Type
Equity Investment

Project Description

This project presents two profitability sources: on the one hand, producing biomass pellets using forest residue to be marketed in Argentina and abroad, and on the other, generating a store of value by buying marginal lands at very low prices, which will add a revalorization “plus” to the business due to the resulting increase in productivity. Currently, sawmill residue is used for biomass production. However, projections indicate that the price of sawdust will increase as the production of biomass pellet consolidates itself. As a result, the business model includes the purchase of marginal lands to ensure access to the main supply at costs that is lower than the market price, making this opportunity an important business with an IRR of 20.6% and a high land revaluation of 35% within a conservative scenario.

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