Greentech Lead U.S: VayuGrid, a biofuel supply chain
company based in Bangalore, has signed a MOU to create a biofuel cluster
around its VayuSap, an elite, high-yield Pongamia,
in Ethiopia Africa.
VayuGrid’s IP in elite Pongamia combines high-yield plant
technology along with customized practices to ensure economic returns that
assure such biofuel parks are financially sustainable to governments and
investors. Also, management of these plantations can be carried out by
local labor.
The cluster will create a$2.5M biofuel investment
opportunity and is part of a larger government plan to develop a biofuel
park in Ethiopia. This park is a critical step to reduce the country’s
commitment of 87percent of free cash on imported crude while at the same time
creating local job opportunities and an ecosystem of value added
businesses.
Phase 1 is a 2,000 plus acre footprint under a
collaborative model involving the participation of a local partner bringing in
land and labour, investors putting the capital and VayuGrid providing the IP
and downstream contracts, thereby creating a sustainable and replicable
business model.
The long term goal is to create biofuel cluster and replicate
a certain scale of footprint in 100,000 acres. During a recently concluded
roadshow in Addis Ababa, Ethiopia, Doctor Abera Deressa, former state
minister for Agriculture, indicated that Pongamia tree products can be an
important factor in community development and environmental protection.
“VayuGrid is bringing together local and global
businesses that are dependent on crude and looking for ways to hedge against
currency fluctuations while ensuring a predictable supply of green
energy,” said Doug Peterson, CEO, VayuGrid. “Our biofuel
clusters ensure a sustainable biofuel supply for downstream markets and high
returns for governments, land owners and investors.”
Ethiopia was chosen strategically based on the
economics and agriculture. Its large land bank of arid and unproductive land
lends itself perfectly to creating a green energy supply base for local and
global markets over the next 60 years.