INTEGRATED

A Plan for Indonesia

Abstract
This document contains an overview for investment and development of an Agricultural Project critical to
Indonesia. The successful development of this project would be an example for the world.

Douglas Craig Morrison

dcm@rapidnrgintl.com
Contents
Overview ...................................................................................................................................................... 3
Location ........................................................................................................................................................ 3
Climate: East Kalimantan ......................................................................................................................... 3
Benefits of Integrated Self Sustaining Farming ............................................................................................ 4
Types of biomass heating systems ........................................................................................................... 5
Pellet-fired........................................................................................................................................... 5
Agricultural pellet systems ............................................................................................................... 5
Production Process....................................................................................................................................... 5
Raw materials: Feedstock Pellets ............................................................................................................. 5
Production .................................................................................................................................................... 7
Production Process....................................................................................................................................... 7
Markets ........................................................................................................................................................ 8
Biomass Animal Feed ............................................................................................................................... 8
Biomass Use by Livestock ......................................................................................................................... 8
Raw Material ................................................................................................................................................ 9
Napier Grass ............................................................................................................................................. 9
Other grasses ........................................................................................................................................... 9
Production developments. ......................................................................................................................... 10
Production Numbers .................................................................................................................................. 10
Land Numbers ........................................................................................................................................ 10
Equipment Numbers .............................................................................................................................. 10
Numbers Overview................................................................................................................................. 11
Biomass Gasification Power Plant .......................................................................................................... 11
Power Requirements.............................................................................................................................. 12
PLN Power Purchase Agreement........................................................................................................ 12
Project Timeline ......................................................................................................................................... 13
Equipment .................................................................................................................................................. 13
Funding....................................................................................................................................................... 16
Three Year Forecast ................................................................................................................................... 17
Overview

Rapid NRG International (Rapid) is a New Zealand based company with a focus on
commodities (coal, iron ore, oil, & petrochemicals) and infrastructure development. Rapid NRG
International Singapore is a wholly owned subsidiary with a focus on sustainable/green
agricultural systems. We believe investment and deployment of micro self-staining energy and
cattle feed farms can benefit all of humanity by the reduction of CO2 by reducing the overall
need of fossil fuel energy generation. Rapid has invested considerable manpower hours and
financing in developing a solution which can greatly benefit developing counties in Tropical
Climate Zones (TCP) with a focus on Indonesia. Our understanding of the impact self-sustaining
agriculture products for cattle feed and energy generation is not alone. Top UN climate
scientists have noted that responsible biomass energy production is carbon neutral, reduces
demand for fossil fuels, and incentivizes forest growth. That’s why the International Panel on
Climate Change (IPCC) predicts that bioenergy (including wood biomass) will provide 35
percent of electricity and 75 percent of fuels stocks by 2050
Our goal is to create a standalone integrated self-sustaining farming system (ISSFS), which is
harmonious with the environment, with local partners in an Indonesian PMA.

Location
The initial deployment would be in East Kalimantan, Indonesia. The location’s climate and
ecosystem is ideal for deployment of our project.

East Kalimantan is a province of Indonesia. Its

territory comprises the eastern portion of Borneo. I
has a population of about 3.5 million, and its
capital is Samarinda.

Climate: East Kalimantan

East Kalimantan has two different climates and is dominated by Af. And Cfb

Tropical rainforest climate Af Samarinda, Tarakan, Maratua Bohesilian

Oceanic climate Cfb Long Yiin / Pelaah, Long Berayang

Seventy five percent of East Kalimantan’s climate is classified as tropical. There is a great deal
of rainfall in East Kalimantan, even in the driest month. The Köppen-Geiger climate
classification is Af. The temperature here averages 26.8 °C. About 1819 mm of precipitation
falls annually.
Precipitation is the lowest in September, with an average of 104 mm. The greatest amount of
precipitation occurs in January, with an average of 189 mm.
At an average temperature of 27.2 °C, May is the hottest month of the year. The lowest average
temperatures in the year occur in January, when it is around 26.4 °C.
Between the driest and wettest months, the difference in precipitation is 85 mm. The variation in
temperatures throughout the year is 0.8 °C.

Benefits of Integrated Self Sustaining Farming

In the 2015 United Nations Climate Change Conference known colloquially as “COP 21,” the
conference laid the groundwork for the world’s nations to work together to bring down carbon
emissions. The agreement recognizes the “importance…[of] sustainable management of forests
and enhancement of forest carbon stocks” to carbon mitigation efforts, and later calls on all
signatories to “take action to conserve and enhance, as appropriate, sinks and reservoirs of
greenhouse gases…including forests.”
UN-supported scientists at the Intergovernmental Panel at Climate Change (IPCC) have long
recognized that soil and biomass—including forest biomass—are hugely important carbon
sinks, pulling enormous quantities of man-made carbon emissions out of the atmosphere every
year. As the science makes clear, our forests are part of a natural cycle that is contributing to
net reductions in atmospheric carbon that, depending on how it is measured, could be as much
as a billion metric tons each year.

As the agreement suggests, incentivizing sustainable forest management is one way to grow
those carbon sinks even more. Healthy markets for forest bioenergy—which we know spur
growth in America’s forests and help prevent forestland from being converted into non-forest
uses—are vital to accomplishing that goal.

In addition to spurring forest growth, UN scientists have also long recognized the carbon
benefits of replacing fossil fuels with forest bioenergy wherever possible. Here’s how a special
UN IPCC report on forestry and land use summarizes it:

Biomass energy can be used to avoid greenhouse gas emissions from fossil fuels by
providing equivalent energy services: electricity, transportation fuels, and heat. The
avoided fossil fuel CO2 emissions of a biomass energy system are equal to the fossil
fuels substituted by biomass energy services minus the fossil fuels used in the biomass
energy system. These quantities can be estimated with a full fuel-cycle analysis of the
system. The net effect on fossil fuel CO2 emissions is evident as a reduction in fossil
fuel consumption.
The report also drives home that when it’s done responsibly, biomass energy production is
carbon neutral:

For biomass energy to lead to an overall reduction in greenhouse gas emissions, land
use and land-use change emissions of the biomass energy system must also be
included (Marland and Schlamadinger, 1995). For example, if biomass is harvested and
subsequently regrows without an overall loss of carbon stocks, there would be no net
CO2 emissions over a full harvest/ growth cycle. In this way, land can be used
continuously for the production of biomass energy to avoid fossil fuel CO2 emissions

The use of biomass in heating systems is beneficial because it uses agricultural, forest, urban
and industrial residues and waste to produce heat and electricity with less effect on the
environment than fossil fuels. This type of energy production has a limited long-term effect on
the environment because the carbon in biomass is part of the natural carbon cycle; while the
carbon in fossil fuels is not, and permanently adds carbon to the environment when burned for
fuel (carbon footprint).

Types of biomass heating systems

The use of Biomass in heating systems has a use in many different types of buildings, and all
have different uses. There are four main types of heating systems that use biomass to heat a
boiler. The types are Fully Automated, Semi-Automated, Pellet-Fired, and Combined Heat and
Power.

Pellet-fired

The third main type of biomass heating systems is pellet-fired. Pellets are a processed form of
wood, which make them more expensive. Although they are more expensive, they are much
more condensed and uniform, and therefore are more efficient. Further, it is relatively easy to
automatically feed pellets to boilers. In these systems, the pellets are stored in a grain-type
storage silo, and gravity is used to move them to the boiler. The storage requirements are much
smaller for pellet-fired systems because of their condensed nature, which also helps cut down
costs. These systems are used for a wide variety of facilities, but they are most efficient and
cost effective for places where space for storage and conveyor systems is limited, and where
the pellets are made fairly close to the facility.

Agricultural pellet systems

A subcategory of pellet systems is boilers/burners capable of burning pellet with higher ash rate
(paper pellets, hay pellets, straw pellets). One kind is PETROJET pellet burner with rotating
cylindrical burning chamber. In terms of efficiencies advanced pellet boilers can exceed other
forms of biomass because of the more stable fuel characteristics. Advanced pellet boilers can
even work in condensing mode and cool down combustion gases to 30-40 °C, instead of 120 °C
before sent into the flue.

Production Process
Raw materials: Feedstock Pellets
Initially, Rapid will utilize existing grass plantation sources. In addition, we can source waste
product from agricultural producers. While the initial sourcing will be from 3rd party sources, the
business will commence establishment of its own Napier grass plantations. This will provide a
more secure long term source of Napier grass product, as well as ensuring supply cost does not
become restrictive. It is intended that all future plantations would be company owned / leased.
Indonesia provides an ideal growing environment, in terms of temperature, water, and land
structure.
Napier grasses are fast growing and high yield. Once initial planting is completed, Napier
grasses have a 90 day growing phase before they are ready for initial cutting. Harvesting is
accomplished by effectively mowing with a forage harvester.
After harvesting, the grass crop enters another growth cycle
to be harvested continually every 30 days.
The first stage of the production process (drying of cut
grasses) will be located in the plantation regions. Cut grass
has a moisture content of approximately 75%. Removing
this moisture at the source point reduces transport costs to
the pellet processing lines.
Production

Production will commence with:

v the existing 5,000 MT per month pellet production line
v use of a developed factory facility. The facility developed will house up to a further 2 pellet plants /
10,000 metric tons production per month
v additional production lines will be installed in additional facility, as required;
v each production line will have a 60,000 MT output capacity per annum;
v we plan to manufacture biomass pellets as cubes as the output of cubes per input of raw material
is a multiple greater than output of conventional pellets and will also be a differentiating point of
benefit in our marketing structure.
The land acquired should have large tracts of plantation grown Napier and other grasses, as well as high
protein plant species used for combining with the core grasses. The blending techniques are used to
create higher value cattle feed products, which command premium prices to end users.

Production Process
The production process can be broken down into 10 key stages;
1. Raw material sourcing, either from 3rd party suppliers or from own plantations
2. Grasses cut using a forage harvesting machine
3. Cut wet grasses then dried in biomass powered rotary drying machines to remove 75% of
moisture content,
4. Transport dried grass to factory / pellet production lines
5. Where necessary use hammer mills to reduce bulk of grasses- for animal feed this is not required.
6. Blend other grasses and herbs to produce premium stock feed ration
7. Run through pellet machines in pelletizing lines to reduce bulk by 80%
8. From pellet machines via conveyor belt to automatic bagging machines
9. Bagged pellets loaded into containers via forklifts
10. Container shipped to customers
Markets
The initial markets should be domestic Indonesia. There is a growing cattle market in Indonesia and the
need for non-GMO organic feed pellets infused with vitamin/nutrient additives not in grazing grasses.

Biomass Animal Feed

The scale of the dairy production industries in our key markets is significant, India having some 50 million
dairy cattle, and China having some 100 million dairy cattle. Large scale cattle facilities have up to
500,000 head of cattle. Producers are continually enhancing production and management techniques,
striving to improve milk production yields.
The demand for feed pellets by such milk producers is seeing significant development, whilst at the same
time there is insufficient supply capacity available to them within the Asian region. While supply capacity
is available from other sources, such as North America, the transport distance (which can result in a
degraded product), and cost is a deterrent to the Asian customer groups. Further, North American
climates limit growing season length.
The key markets for our animal feed pellets are Korea, India, New Zealand and China. Our relationship
network have long established linkages with end users in the Korean, Indian and Chinese markets, as
well as other potential target markets, such as Japan and existing supply requirements from end users.

Biomass Use by Livestock

Feed is what links livestock to land use, both directly via grazing and indirectly via traded grain or forage.
Here we classify feed into four commonly observed types: (i) grain, usually fed as concentrates, (ii) grass
for direct grazing and as silage; (iii) occasional feeds, such as cut-and-carry forages and legumes, and
roadside grasses; and (iv) stovers (fibrous crop residues).
Globally, livestock consumed ∼4.7 billion tons of feed biomass in 2000, with ruminants consuming the
bulk of feed (3.7 billion tons compared with 1 billion tons by pigs and poultry). Overall, grasses comprise
some 48% (2.3 billion tons) of the biomass used by livestock, followed by grains (1.3 billion tons, 28%).
Occasional feeds and stovers comprise the rest and are significant sources of feed in certain regions.
Occasional feeds are of importance in SAS and LAM, where supplementation with fodder crops is
common, whereas stovers are a key feed resource in most of the developing regions, comprising
sometimes up to 50% of the diet of ruminants in these regions.
Livestock in the developing regions are the main users of grasses, stovers, and occasional feeds (73%,
95%, and 90%, respectively, of the total global consumption of each feed), which is explained by higher
ruminant livestock numbers in these regions and the need for obtaining feed from multiple sources.
In terms of feed grain, the developing world uses 59% of total grain use, as a result of the significant
increases in monogastric production in parts of the developing world over the last 20 yrs.
Regional estimates of global feed consumption by livestock species: (A) grains, (B) grass, (C)
occasional feeds, (D) stovers (all in million tons of DM).
Raw Material
Napier Grass
v Where possible the company will focus on using non-genetically modified (non-GMO) grasses as
the raw material used to process into cattle feed.
v Initially we plan to work with the Indonesian Ministry of Agriculture to focus on specific grasses
which are native to the region and non-modified.

Other grasses
v Mombasa guinea grass is a fairly new grass for Indonesia. It grows tall like Napier grass but is
very succulent, can be grown from seed (seed is available in Indonesia) and is disease free.
v It is a bigger guinea grass than the Si Muang (Purple guinea). Mombasa produces 20% more
dry matter.
v Mulato II hybrid brachiaria, seed of which is also available.
Production developments

A 10,000 ha plantation in East Kalimantan will provide access to the needed raw material. The
key issue will be negotiated price for the lease of the land and our operating costs.
In our financial model, we use $50 per metric ton to acquire dry Napier Grass allowing our
sources a 100% margin.
From the plantations we lease, we can harvest wet Napier @ $5 per metric ton and lose 80% of
the weight in drying to give us a raw material price of $25 per metric ton.
This wet grass can be air dried which is very energy efficient or we can use rotary dryers which
are not energy efficient however our revenue and profit projections use rotary drying to allow a
worst-case cost scenario.
We are in the early stages of working with Leaf Resource’s patented Glycell process of breaking
down the grasses. Glycell is a disruptive process using waste glycerol from the ethanol industry
as our catalyst negating the need for rotary dryers nor hammer mills in our process.
With rotary dryers removed from our process, we could lower our cost of dry Napier to $10 per
metric ton compared to the $50 per metric ton above. Also there would be no electricity or
biomass input drying costs.
It also has the benefit of another 2 product lines
1. The sale of cellulosic C6 and C5 sugars to renewable chemical industry, and
2. The sale of remediated glycerol for $800 per metric ton. We buy the waste glycerol
catalyst for $200 per metric ton and after process restores it to a high-quality glycerol
that can be reused in the renewable chemicals industries (including beer and other
fermentation industries).

Production Numbers
Land Numbers
10,000 ha with suitable water and fertilizer (fertilized using waste from palm oil plants) the readily
available confirmations suggest 30-50 ton per ha (TPHa). If we use the higher number of 50 TPHa, to
keep the equipment at 100% operational production, we would need 6,000 Ha. At 30 TPHa the full
10,000 ha would be needed.

If we operate at the higher 50 TPHa, the remaining 4,000 ha could be used for cattle.

Equipment Numbers
The equipment should be run in the following manner:

1. 2 x 10-Hour shifts per day

a. By allowing 2 x 10-hour shifts per day the machines could each average a maximum of
20 bone-dry tons per day.
2. 4 hours per day for Preventive Maintenance
 a. Note: the equipment has automatic lubrication so production could be higher over more
hours per day.
3. All the pellet machines are rated at minimum 0.5 ton per hour and a maximum 1.5 ton per hour.
We can use an average of 1 ton per hour using 4 machines = 80 tons average per day.

Numbers Overview

PRODUCTION NUMBERS OUTPUT

TOTAL PRODUCTION PER DAY (MT) 80
TOTAL PER MONTH (MT) 2,400
TOTAL CATTLE PER METRIC TON OF PELLETS 4
TOTAL CATTLE SUPPORTED MONTHLY 9,600

PRODUCTION IN METRIC TONS PER HA (LOW) 30

PRODUCTION IN METRIC TONS PER HA (LOW) 50

Biomass Gasification Power Plant

Manufacture: Chong Zhou Henging Energy Equipment Co., LTD

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Power Requirements
v The power requirements are under 900 KW
v The Biomass unit produces continuous 2 MW
v There would be 1.1Mw to sell to PLN on a PPA basis
o 1.1 Mw instant, ie, 1.1Mw x 24 hours -= 26.4 Mwhrs per day, or 26,400Kwhr per day.
o End of year deployment would be 3x2 MW plants

PLN Power Purchase Agreement

v PPAs are take or pay therefore what we produce PLN will buy.
v All PPAs have a contractually agreed MW so if you have a 1.1 MW biomass base load operation
with a PPA PLN could pay for 1,000x24 =24,000 Kwh per day
v PLN pays for renewable energy between 8.5 cents to 11.1 cents per Kwh.
o The different ranges being applied to low voltage grid connections and medium voltage
grid connections.
o At 8.5 cents, 24,000 Kwh could generate gross revenues of $2,400 per day subject to
PLN regulations.
v Future growth
v Another 2MW Biomass Gasifier Power Plant which could be supported by existing grass pellet
production or third-party biomass for a 3,000x24 =72,000 kwhr per day
o At 8.5 cents, 72,000 Kwh could generate gross revenues of $6,120 per day or $2.2m
annually, subject to PLN regulations.

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Project Timeline

Notes:

v From funding to first harvest, assuming all permits and licenses in place, is 180 days.

Equipment
MACHINE LIST MANUFACTURING NO. CAPACITY NUMBER USD
GRASS CUTTER 9DF800 5 ton per hour 1 $ 25,000.00
DRYER - 10 TONS PER HOUR 20 tons 1 $ 420,000.00
HAMMER MILL 2 of 3 ton per hour. 2 $ 250,000.00

PELLET COOLER YSKLN4 2 $ 25,800.00

ROTARY DISTRIBUTION SYSTEM new automatic 2 $ 35,000.00

SIMPLE SCREENER JD150x113 1 $ 900.00

BIG DIP BELT CONVEYOR YDPJ-60 24 meter 1 $ 12,500.00

MULTIPLE CONVEYOR LINES EX FEED BINS 10 meters 1 $ 5,390.00
CONVEYOR FROM DRYER TO HAMMER MILL 5 meters 1 $ 2,500.00
ANIMAL FEED RING DIE New 4 4 $ 1,600.00

13
WEIGH BRIDGE 50 ton $ 17,000.00
UP & DOWN BELT ROLLER 20 $ 20.00
SEALED CIRCLE 20 $ 3.00
BEARING FOR ROLLER new spares 12 $ 40.00
KEY BLOCK 20 No Cost
COUPLING 2 $ 170.00
STEEL CIRCLE 4 pairs $ 90.00
OIL PUMP 1 spare $ 1,700.00
PELLETIZER 1.5TON Rotexmaster 6 ton/hr 4 $ 142,857.14
ELECTRICAL MAIN SWITCH NO.1 1 $ 17,142.86
ELECTRICAL MAIN SWITCH NO.2 1 $ 8,571.43
ELECTRICAL MAIN SWITCH NO.3 1 $ 8,571.43
ELECTRICAL WIRING AND LIGHTING 1 $ 80,000.00
SPARE ELECTRIC MOTORS FOR LINES 12 new 25 used 12 $ 34,285.71
TOOLS AND EQUIPMENT ( WELDERS, ETC) $ 40,000.00
TOTAL $ 1,129,141.57

Machine List
Saw Dust Machine
Manufacture: YULIM: YM-600BM Rotary distribution unit

Saw Dust Machine

New Grass Shredder

Hammer mill
Manufacture: Rotexmaster: 65x180

14
Rotary Dryer & Furnace

50-Ton Weight Scale

Pelletizer 1.5ton 4 unit

Manufacture: Rotexmaster: 560

15
Funding
START UP COSTS
LAND DUE DILIGENCE
CROPS
CLEARING (MAX ESTIMATED PRICE)
TUBULARS AND PLANTING
EQUIPMENT
GRASS CUTTER
DRYER - 10 TONS PER HOUR
HAMMER MILL
PELLET COOLER
ROTARY DISTRIBUTION SYSTEM
SIMPLE SCREENER
BIG DIP BELT CONVEYOR
MULTIPLE CONVEYOR LINES EX FEED BINS
CONVEYOR FROM DRYER TO HAMMER MILL
ANIMAL FEED RING DIE
WEIGH BRIDGE
UP & DOWN BELT ROLLER
SEALED CIRCLE
BEARING FOR ROLLER
COUPLING
STEEL CIRCLE
OIL PUMP
PELLETIZER 1.5TON
ELECTRICAL MAIN SWITCH NO.1
ELECTRICAL MAIN SWITCH NO.2
ELECTRICAL MAIN SWITCH NO.3
ELECTRICAL WIRING AND LIGHTING
SPARE ELECTRIC MOTORS FOR LINES
TOOLS AND EQUIPMENT ( WELDERS, ETC.)
FORGE HARVESTOR (X2) FINANCED
TIPPING 25MT TRUCKS (X4) FINANCED
SHIPPING, INSTALLATION, AND TESTING
FEES, TAX AND OTHER
FACILITIES DEVELOPMENT
CEMENT PAD FOR EQUIPMENT 20K SQFT
CEMENT PAD FOR GASIFIER 20K SQFT
OUTER HOUSING FOR EQUIPMENT
OUTER HOUSING FOR GASIFIER
BIOMASS GASIFIER
2MW GASIFIER (@1.5M EACH)
SHIPPING
INSTALLATION
UNITS USD
$150,000.00
$300,000.00
$500,000.00
2 $50,000.00
2 $840,000.00
2 $500,000.00
2 $51,600.00
2 $70,000.00
2 $1,800.00
2 $25,000.00
2 $10,780.00
2 $5,000.00
2 $3,200.00
2 $34,000.00
2 $4,000.00
2 $6,000.00
2 $600.00
2 $340.00
2 $180.00
2 $3,400.00
2 $285,714.28
2 $34,285.72
2 $17,142.86
2 $17,142.86
2 $160,000.00
2 $68,571.42
2 $80,000.00
2 $500,000.00
2 $500,000.00
2 $250,000.00
2 $230,000.00
$35,000.00
2 $70,000.00
2 $70,000.00
2 $70,000.00
3 $4,500,000.00
3 $750,000.00
3 $750,000.00
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ROADS $300,000.00
LAND LEASE/ACQUISITION FEE $-
LABOR FIRST 8 MONTHS $1,447,833.20
GRAND TOTAL $12,691,590.34

EQUIPMENT ON HAND $1,134,378.57

FUNDS TOTAL NEEDED $11,557,211.77
10% OVERAGE RESERVE $1,155,721.18
GRAND TOTAL NEEDED $12,712,932.95

Notes:

To provide accuracy we need a feasibility study including site visits, weather, climate and rainfall
confirmations of the specific land under consideration including soil tests. We will bring business
consultant, Agricultural Scientist, cattleman and Animal Nutritionist.
1. Questions such as how intensively has the soil been farmed before, what soil type,
drainage?
2. What fertilizing regime has been used?
3. Is it jungle now?

Three Year Forecast

Description Yr. 1 Yr. 2 Yr3

Production Pellets Metric Tons 60,000 150,000 170,000.00
Cost of Production ($) $945,000.00 $6,615,000.00 $8,280,000.00
Sales Revenue $5,873,160.00 $18,750,000.00 $26,096,320.00
Gross Profit ($) $4,928,160.00 $12,135,000.00 $17,816,320.00
Additional Costs (SGA) $(1,694,299.88) $(1,859,219.87) $(1,859,219.87)
Amortization $(530,000.00) $(530,000.00) $(530,000.00)
Corporate Tax * 15% $(405,579.02) $(1,461,867.02) $(1,461,867.02)
Net Profit $2,298,281.10 $8,283,913.11 $13,965,233.11
Notes:

1. Includes repayment of the loan starting at month 6 with 6% per year interest.
2. Loan fully repaid by month 23

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