Tuesday, February 28, 2012
Sunday, February 19, 2012
LATIN AMERICAN REPORT 2012: Colombian industrial growth exceeds Latin America's
Colombia's industrial growth in the second half of 2011 exceeded that seen in Latin America by 5.9%, according to the Joint Industrial Opinion Survey, reported Colombian investment website PortafolioThursday.
The report stated, "If we compare the situation in other countries, we find that Colombia grew ahead of countries like Brazil, Peru, Chile and Mexico, and in the second half was the fastest growing country in the region."
Colombia also displayed other positive economic signs, with foreign trade stimulated, interest and inflation kept under control and a favorable investment "climate of trust" maintained.
Among the positive highlights in the report were a 10.8% growth in retail trade, a 42.3% growth in overall exports and an 18.2% growth in non-traditional exports.
Colombia's encouraging economic performance also contributed to the recovery of the investment grading held by the Civets group of emerging economies, which includes Colombia, Egypt, Indonesia, South Africa, Turkey, and Vietnam. This is particularly promising given that major markets such as Spain, Italy and the United States remain troubled
Manuel Canales
Managing Director
CSDC Group Inc.
Thursday, February 16, 2012
ENERGIA EN AMERICA LATINA: Argentina y Brasil quieren empresa para hidroeléctricas; Argentina pide a Petrobras aumento de producción
MÁS DESTACADO EN AMÉRICA LATINA
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BRASILIA — Argentina y Brasil pretenden conformar una empresa binacional para administrar un complejo hidroeléctrico que tienen proyectado construir, informaron el jueves autoridades de ambos países.
El tema fue abordado en una reunión de los ministros Julio de Vido, de Argentina, y Edison Lobao, de Brasil, quienes indicaron que la empresa sería similar a Itaipú, administrada por una empresa binacional de Brasil y Paraguay.
"Vamos a crear una empresa en los moldes de Itaipú, con los perfeccionamientos que sean necesarios", declaró a periodistas Lobao, ministro de Minas y Energía, sobre la creación de la empresa binacional discutida con el ministro argentino de Plafificación Federal.
Una empresa binacional tiene a su cargo la administración de la planta hidroeléctrica de Itaipú, la segunda más grande del mundo, que reparte su energía entre Brasil y Paraguay.
En el caso de Argentina, Brasil tiene previsto construir el complejo hidroeléctrico Garabi-Panambi, sobre el río Uruguay en la frontera entre los dos países y con una capacidad instalada de 2.200 megavatios.
Para Lobao, la construcción del complejo hidroeléctrico "es un símbolo de la integración en América del Sur. En la medida que Argentina y Brasil están integrados por el sistema eléctrico, estamos dando el segundo gran paso para la integración. El primero fue Mercosur", la unión aduanera conformada por Argentina, Brasil, Paraguay y Uruguay.
Lobao indicó que la licitación para realizar los estudios de ingeniería y ambientales de la obra hidroeléctrica se celebraría entre el 6 y 7 de marzo en Buenos Aires.
Los dos países calculan que el proyecto tendrá un valor de 4.200 millones de dólares y su construcción podría tardar alrededor de cinco años.
"Vamos a crear una empresa en los moldes de Itaipú, con los perfeccionamientos que sean necesarios", declaró a periodistas Lobao, ministro de Minas y Energía, sobre la creación de la empresa binacional discutida con el ministro argentino de Plafificación Federal.
Una empresa binacional tiene a su cargo la administración de la planta hidroeléctrica de Itaipú, la segunda más grande del mundo, que reparte su energía entre Brasil y Paraguay.
En el caso de Argentina, Brasil tiene previsto construir el complejo hidroeléctrico Garabi-Panambi, sobre el río Uruguay en la frontera entre los dos países y con una capacidad instalada de 2.200 megavatios.
Para Lobao, la construcción del complejo hidroeléctrico "es un símbolo de la integración en América del Sur. En la medida que Argentina y Brasil están integrados por el sistema eléctrico, estamos dando el segundo gran paso para la integración. El primero fue Mercosur", la unión aduanera conformada por Argentina, Brasil, Paraguay y Uruguay.
Lobao indicó que la licitación para realizar los estudios de ingeniería y ambientales de la obra hidroeléctrica se celebraría entre el 6 y 7 de marzo en Buenos Aires.
Los dos países calculan que el proyecto tendrá un valor de 4.200 millones de dólares y su construcción podría tardar alrededor de cinco años.
Argentina pide a Petrobras aumento de producción
MÁS DESTACADO EN AMÉRICA LATINA
EEUU: Opositor cubano Biscet testifica vía telefónica ante Congreso por …
AFP - Hace 5 minutosUn militar muere en choque presuntos rebeldes Perú
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SAO PAULO, BRASIL - Argentina pidió el jueves que la filial local de la estatal brasileña Petrobras aumente su producción, dijo el ministro de Planificación Julio de Vido en una visita a Brasilia, como parte de una campaña para incrementar la declinante extracción de hidrocarburos en la tercera economía latinoamericana.
De Vido se reunió con el ministro de Minas y Energía brasileño, Edison Lobao, y se entrevistará por la tarde con la nueva presidenta de Petrobras, Maria das Gracas Foster.
"Queremos más petróleo disponible, más combustibles", dijo De Vido a periodistas al llegar al Ministerio de Energía en Brasilia.
El funcionario dijo que pediría a Brasil un aumento de la inversión de Petrobras en Argentina.
La empresa brasileña invirtió 344 millones de dólares en la exploración y producción de petróleo y gas en Argentina en el 2011, un 54 por ciento más que el año anterior, según dijo en una reciente nota a la Bolsa de Comercio de Buenos Aires.
Argentina, preocupada por una sostenida caída de la producción que está obligándola a importar hidrocarburos, dijo este mes que exigiría a las petroleras extranjeras que trabajen al máximo de su capacidad.
Además suspendió programas de incentivos económicos a grandes petroleras.
El miércoles arremetió contra la petrolera YPF, una filial de la española Repsol, prohibiendo sus operaciones de comercio exterior a raíz de una deuda de 8 millones de dólares con el fisco.
De Vido describió el incidente con YPF como un "problema entre públicos y privados".
"Simplemente estamos exigiendo que la empresa produzca en plenitud lo que es capaz de producir en Argentina", dijo a periodistas en Brasilia.
(Reporte de Leonardo Goy)
"Queremos más petróleo disponible, más combustibles", dijo De Vido a periodistas al llegar al Ministerio de Energía en Brasilia.
El funcionario dijo que pediría a Brasil un aumento de la inversión de Petrobras en Argentina.
La empresa brasileña invirtió 344 millones de dólares en la exploración y producción de petróleo y gas en Argentina en el 2011, un 54 por ciento más que el año anterior, según dijo en una reciente nota a la Bolsa de Comercio de Buenos Aires.
Argentina, preocupada por una sostenida caída de la producción que está obligándola a importar hidrocarburos, dijo este mes que exigiría a las petroleras extranjeras que trabajen al máximo de su capacidad.
Además suspendió programas de incentivos económicos a grandes petroleras.
El miércoles arremetió contra la petrolera YPF, una filial de la española Repsol, prohibiendo sus operaciones de comercio exterior a raíz de una deuda de 8 millones de dólares con el fisco.
De Vido describió el incidente con YPF como un "problema entre públicos y privados".
"Simplemente estamos exigiendo que la empresa produzca en plenitud lo que es capaz de producir en Argentina", dijo a periodistas en Brasilia.
(Reporte de Leonardo Goy)
Wednesday, February 15, 2012
ECONOMIA MUNDIAL: China dispuesta a ayudar más a una Europa enfangada en crisis de la deuda
El primer ministro chino, Wen Jiabao, espera a los presidentes del Consejo y de la Comisión Europeos, Herman Van Rompuy y Jose Manuel Durao Barroso, respectivamente, este martes 14 de febrero en el Gran Palacio del Pueblo de Pekín.El martes 14 de febrero de 2012, 7:33 AM EST
El gobierno chino dijo que está "dispuesto a participar más en la búsqueda de una solución a la crisis de la deuda en Europa", en la apertura este martes de una cumbre entre China y la Unión Europea en Pekín.
El primer ministro chino, Wen Jiabao, expresó esta disposición al abrir con el presidente de la Unión Europea, Herman Van Rompuy, y el de la Comisión, José Manuel Durao Barroso, la 14ª cumbre bilateral, dominada por las inquietudes que suscita la crisis de la deuda de Europa, principal importador mundial de productos chinos.
"Le corresponde a China tomar sus propias decisiones sobre su contribución a la estabilidad de la Eurozona", respondió Van Rompuy a Wen Jiabao, que no precisó cómo podría ayudar a la UE.
China indicó en varias ocasiones que le gustaría participar en el fondo europeo de rescate (FEEF) y luego en el Mecanismo Europeo de Estabilidad (MEDE), el fondo permanente de ayuda a los países de la Eurozona en apuros, que empezará a funcionar en julio.
Sin embargo, los dirigentes de la segunda economía mundial, dotada de las mayores reservas de divisas (unos 3,2 billones de dólares) no han tomado ningún compromiso sobre el monto con el que contribuirían.
"Nuestro mensaje del lado europeo es que Europa está haciendo lo que debe, y seguirá haciéndolo para restaurar la confianza", declaró por su lado Barroso.
En paralelo al apoyo chino, las negociaciones sobre el estatuto de economía de mercado, que China reclama desde hace tiempo, parecen estar en buen camino.
En el Foro Económico de Dalian, el pasado septiembre, Wen pidió que la UE le reconozca ese estatuto a China antes de 2016, la fecha prevista en el calendario de la Organización Mundial del Comercio (OMC).
Ese estatuto de economía de mercado ofrecería a China un mejor acceso al mercado europeo, protegiendo sus productos de las cláusulas contra la competencia desleal.
La cuestión, que por primera vez aparece en el comunicado común, deberá solventarse "de forma rápida y exhaustiva", dijo Van Rompuy, asegurando que existe la "voluntad política de buscar soluciones".
El presidente de la UE reiteró el pedido de la Unión de tener un mejor acceso al mercado chino.
Es "necesario jugar con las mismas armas, un mejor acceso al mercado (chino) para las empresas de la UE, y una mayor protección de los derechos de la propiedad intelectual", declaró.
"Nuestra relación es sólida. Hemos andado mucho camino desde el establecimiento de nuestra relación estratégica global en 2003 (...) pero sigue habiendo un potencial muy grande", dijo Van Rompuy al abrir las conversaciones.
Las dos economías son "tan interdependientes que un cambio en la tasa de crecimiento de uno de los dos socios estratégicos tiene un impacto directo y palpable en el otro", añadió.
Por último, Wen Jiabao declaró que China está "dispuesta a mantener un diálogo sobre todas las cuestiones, incluida la de los derechos humanos" con la UE.
Pekín y Bruselas mantienen un diálogo regular y discreto sobre esta cuestión, en las que se suelen abordar casos particulares.
Export Development Canada and China Development Bank partner to bolster commercial trade; Biofuels, materials raise $1.374B in equity in past 12 months
Export Development Canada (EDC) today announced the signing of an agreement with the China Development Bank Corporation (CDB) to identify projects between Chinese and Canadian companies that could be facilitated through partnered financing.
The signing ceremony was witnessed by the Prime Minister of Canada, the Right Honorable Stephen Harper, and the Vice-Premier of The People’s Republic of China, on the occasion of the 5th Canada China Business Forum. The Forum was held on February 9, 2012 in Beijing.
Under the agreement, EDC and CDB will focus on key sectors including transportation and aerospace, but will also encompass the machinery, energy, mining, and green technology sectors.
“For Canadian companies, having reliable long-term partners to support their export and investment efforts in China is vital to their success, and this partnership gives Canadian exporters access to an experienced and influential financier,” said Rajesh Sharma, Senior Vice-President, International Business Development, EDC.
While negotiating the agreement, EDC and CBD have already undertaken the development of potential financing structures that could be announced in the coming months.
Looking forward, EDC and CBD have also identified potential future opportunities to collaborate in the civil aviation sector, recognizing the strength of Canadian companies therein and the strength of demand within the Chinese market. Other potential sectors where there is interest and potential to bring both Canadian and Chinese content together are high speed rail, oil and gas projects are also underway.
EDC has two permanent representations in China, located in Shanghai and Beijing. In 2010, 375 Canadian companies used EDC products and services to help undertake more than CAD 4.0 billion in trade within the Chinese market.
Canadian merchandise exports to Canada for the period January to October 2011 were up 33 per cent year-on-year, reaching CAD 12.8 billion. This equals the total merchandise export trade to China from Canada for all of 2010.
In 2010, 954 Canadian exporters and investors in the transportation sector used EDC products and services to facilitate more than CAD 9.8 billion in international business.
Regionally, 2,753 Quebec companies undertook more than CAD 22 billion of their global trade using EDC’s products and services in 2010.
EDC has a permanent presence in Shanghai, Beijing, Singapore, Mumbai, New Delhi, Moscow, Istanbul, Düsseldorf, Abu Dhabi, Rio de Janeiro, São Paulo, Lima, Mexico City, Monterrey, Santiago and Panama.
For more information about CDB on their website.
EDC is Canada’s export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC’s knowledge and partnerships are used by more than 8,200 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and a recognized leader in financial reporting and economic analysis
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Manuel Canales
Managing Director
CSDC Group Inc.
Caribbean Sustainable Development Corp. Inc.
Ave. Winston Churchill Esq Max. Henriquez Urena
Edificio in Tempo - Suite 302 - Ens Evaristo Morales
Santo Domingo, Republica Dominicana
Biofuels, materials raise $1.374B in equity in past 12 monthsJim Lane | February 15, 2012Share33 equity transactions, averaging $40M – who got what, for what, from whom – what’s hot now?
In Florida, Biofuels Digest reported that advanced biofuels and biomaterials companies raised $1.374 B in equity financing in the past 12 months, based on deal flow reported in the Digest’s daily newsletter and online news service.
Overall, the Digest reported 33 transactions, including five successful IPOs, in eight categories.
The largest equity raise of the year was $227 million raised by Solazyme in its IPO. Other notable equity raises included $123M raised by Gevo and $150M raised by KiOR in their IPOs, a $72M raise by Renewable Energy Group in its IPO last month, and private rounds of $75 million by Fulcrum Bioenergy, $70 million by Joule Unlimited, $60 million by Enerkem, $50 million by Elevance Renewable Sciences, and $50 million by Renmatix.
Among categories with more than one equity raise in the past year, advanced fermentation technologies recorded the highest raise per transaction, at $57.24 million, primarily owing to the two successful IPOs from Solazyme and Gevo. Thermocatalytic technologies, including KiORs large IPO, averaged $51.14 million in seven transactions.
CategoryRaisedDealsAvg. size
Advanced fermentation$687.0012$57.25
Hybrid gasification-fermentation$39.002$19.50
Thermocatalytic$358.007$51.14
Cellulosic sugars$50.001$50.00
Crop technologies$111.008$13.88
XTL$45.002$22.50
Biocomposite$12.501$12.50
Transesterifcation$72.001$72.00
Advanced fermentation – $687M
In January, LanzaTech closed its Series C round with new investment totaling US $55.8 million led by the Malaysian Life Sciences Capital Fund. New investors include Petronas Technology Ventures Sdn Bhd, the venture arm of Petronas, the national oil company of Malaysia, and Dialog Group, a leading Malaysian integrated specialist technical services provider to the oil, gas and petrochemical industry. Specific investments in the round were not disclosed by the company. Existing investors Khosla Ventures, Qiming Venture Partners and K1W1 also participated in the round. To date, the company has raised more than $85 million
In July, OPX Biotechnologies announced that it raised $36.5 million in its Series C investment round. US Renewables Group led the C-Round investor syndicate, which also included new investor DBL Investors with participation by existing investors Mohr Davidow Ventures, Braemar Energy Ventures, Altira Group and X/Seed Capital. USRG managing director Jonathan Koch has joined the OPXBIO Board of Directors. To date, OPXBIO has raised $60 million with venture investors.
In May, BioAmber, a developer of bio-based succinic acid, raised $45 million in a Series B financing that will accelerate the commercialization of succinic acid and modified PBS (polybutylene succinate, a renewable, biodegradable polymer). The round was led by NAXOS Capital Partners and included Mitsui & Co, Sofinnova Partners, and the Cliffton Group. Proceeds will fund ongoing development work in the field of succinic acid, including the second generation organism being developed with Cargill, the technology licensed from DuPont that converts succinic acid to 1,4-butanediol (BDO).
In May, Cobalt Technologies announced that it had closed a $20M Series D funding round. The round was led by The Whittemore Collection Ltd., the investment vehicle of Parsons & Whittemore, formerly one of the world’s largest manufacturers of market pulp and builder of some 60 pulp mills in 28 countries.
All of Cobalt’s current venture investors also participated, including Pinnacle Ventures, Malaysian Life Sciences Capital Fund, VantagePoint Capital Partners, Life Sciences Partners, @Ventures, Harris & Harris and Burrill and Company.
In July, Elevance Renewable Sciences raised $50 million in a Reg D capital round with undisclosed investors. The company, which last raised $100 million in a capital round completed in December, declined to state use of proceeds. But the company is scheduled to start construction later this year on a $225 million project in Natchez, Mississippi.
In June, Avantium completed a $36M million financing round with new investors Sofinnova Partners, Aster Capital and De Hoge Dennen as well as existing investors Aescap Venture, Capricorn Cleantech Fund, ING Corporate Investments and Navitas Capital.
In May, Solazyme netted $227M in their IPO.
In March, Gevo raised $123.3 million in their IPO.
In December, Alta Vista Securities announced they had closed a $7M joint venture for three biofuel plants in the Philippines with Pacific Biofuels. Each plant will have a capacity to process 80,000 tons of agricultural waste per year, which will then produce about 37,800,000 liters of total biofuels products comprising of 30,240,000 liters of mixed alcohol and about 7,560,000 liters of LPG.
In December, TMO Renewables announced that it completed a £7.6 round ($11M) of financing. Taken in combination with £4.6m raised in January 2010, the proceeds will serve will serve as working capital as the company moves towards commercialization.
In January, Joule Unlimited announced the closing of a $70 million third round of funding, bringing its total to just over $110 million raised to date. The round included investments from both new and prior undisclosed institutional and private sources that joined Flagship Ventures, Joule’s founding venture capital investor.
In October, Plaxica raised a further £5m ($8M) in equity funding from Imperial Innovations, Invesco Perpetual and NESTA Investments. Plaxica has raised approximately £10m to date from its investors.
Hybrid gasification – fermentation – $39M
In October, ZeaChem announced it raised $19 million in Series C financing, led by Birchmere Ventures, and partner Sean D.S. Sebastian has joined the ZeaChem Board of Directors. Follow on investment was provided by existing investors Firelake Capital, Globespan Capital Partners, Mohr Davidow Ventures, PrairieGold Venture Partners and Spring Ventures.
In August, Coskata raised $20M in a Series D round of financing. The major investors from previous rounds participated, including The Blackstone Group, Khosla Ventures, Total Energy Ventures International (part of Total, one of the world’s major Oil and Gas groups), ATV, Globespan Capital Partners, General Motors, Arancia, and Sumitomo. Coskata plans a final close of the transaction in Q4 of 2011.
Gasification – thermo-catalytic – Fischer-Tropsch – Pyrolysis – $358M
In July, InEnTec converted itself from an LLC to a corporation under the laws of the State of Delaware, and has filed a Form D with the SEC disclosing a $20 million capital raise, with a goal of $69 million.
In June, Enerkem had closed a $60 million financing round that includes Valero Energy Corp. who joins existing investors Waste Management, Rho Ventures, Braemar Energy Ventures and Cycle Capital, who have each invested in the new equity round.
In June, KiOR raised $150 million in its IPO.
In April, Frontline BioEnergy announced that it has completed its Series B financing, and a set of transactions with SGC Energia that will bring new capital investment to Frontline, an agreement for SGC Energia to license Frontline gasification and gas conditioning technologies and a multi-year contract for Frontline to provide a range of engineering services to support SGC Energia.
In March, CoolPlanetBioFuels announced that Google Ventures has joined its $20 million Series B funding round.Google’s investment was undisclosed, though we note that previous reports focused on an $8 million Series B round, suggesting that Google Ventures invested as much as $12 million into the venture.
In February 2011, Fulcrum Bioenergy announced that it has closed a $75 millionSeries C financing. A portion of the financing will be used to fund the equity capital for the company’s Sierra BioFuels Plant, a commercial-scale production facility designed to convert household garbage to ethanol, renewable electricity and other high value chemical products.
In February 2011, the Oxford Catalysts Group has raised £21 million ($33M)before expenses from the conditional placing of 26,250,000 new shares, which will be used to accelerate the Group’s ongoing transition from a research and development organisation to a commercial product company.
Cellulosic sugars – $50M
In January, BASF announced plans to invest $30 million in the US technology firm Renmatix, as part of Renmatix’ $50 million Series C investment round.
Crop technologies – $111M
In January, Algae.Tec announced that a A$5M ($5M) Placement through Patersons Securities Limited had been successfully completed. The company announced last week that it had signed a binding MOU for a 50/50 equity joint venture with Shandong Kerui Group Holding, for the construction, in Dongying (Shandong province) of an 8.7 million gallons (33 million liter) algae biofuels facility. The proposed project would also generate 33,000 tones of biomass per year.
In December, NexSteppe raised $14 million in Series B Funding. The new round of funding was led by Braemar Energy Ventures, and as a result, Dennis Costello, Partner at Braemar, has joined the company’s Board of Directors. NexSteppe will use the proceeds from the round to scale up its sweet sorghum, high biomass sorghum and switchgrass breeding programs, and to advance its first products toward commercialization.
In October, Chromatin announced completion of a $10 million first closing of its Series D financing round that included two strategic investors — BP Ventures and Unilever Technology Ventures — as well as three investors who participated in earlier rounds of financing: Quantitative Investment Holdings, the Malaysian Life Sciences Capital Fund, and Illinois Ventures.
In October, Synthetic Genomics and Mexico-based Plenus announced the formation of a new company, Agradis. The privately held agricultural biotechnology company will focus on developing and commercializing products to sustainably improve crop production efficiency using new advances in genomics and plant breeding. Agradis has also announced the closing of a $20 million Series A financing round which will be used to establish the company infrastructure and to support product development and commercialization.
In August, Aurora Algae raised another $22 million, bringing its total fund raise to $72 million so far. The company has moved away from being a biofuels pure play to focusing on nutraceuticals. The newest funding round will go towards the building of its first commercial scale plant in Australia. The company is currently running trials at its pilot plant there. Greg Bafalis, Aurora CEO, stated, “Biofuels will eventually come, but they shouldn’t be your focus now.”
In April, seed breeding company Kaiima raised $18 million from Kleiner Perkins Caufield & Byers and current investors Draper Fisher Jurvetson (DFJ) and DFJ Tamir Fishman Ventures Ltd., bring in a total of $26 million in financing, to enhance its Clean Gene Multiplication technology.
In March, Solix Biofuels announced it had secured more than $16 million from Bohemian Ventures, The Southern Ute Alternative Energy Fund and I2BF Global Ventures, as the first part of its Series B financing round. The new funding will drive the commercialization of Solix’s industrial algae growth system, utilizing Solix’s proprietary, high-productivity photobioreactors.
In February 2011, Rosetta Green closed an initial public offering which raised gross proceeds of 21,900,960 NIS ($6.06 million).
XTL – $45M
In December, Agilyx raised $25 million in series-C funding led by Keating Capital, and the startup has already raised funds from Waste Management, venture firm Kleiner Perkins, French oil giant Total, and investors at Chrysalix Energy, Saffron Hill Ventures and Reference Capital.
In October, Siluria attracted $20 million for a technology platform to convert methane to chemicals, plastics, and fuels. Siluria’s Series B financing was led by the U.K. based Wellcome Trust, joining Siluria’s founding investors Alloy Ventures, ARCH Venture Partners, Kleiner Perkins Caufield & Byers, Altitude Life Science Ventures, Lux Capital, and Presidio Ventures in this Series B.
Biocomposite – $12.5M
In June, Cereplast entered into a Securities Purchase Agreement with select institutional investors. Under the terms of the purchase agreement, the company will raise $12.5 million in an offering of 7% senior subordinated convertible notes due June 1, 2016.
Transesterification – $72M
In January, Renewable Energy Group raised $72 million in its IPO.
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The Intrepid Investor: Ceres delays IPO; others in IPO queue shift, accelerate strategies
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Enerkem’s $125M IPO: The 10-Minute Version
Ceres $132M IPO scheduled for February 9
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Manuel Canales
Managing Director
Monday, February 13, 2012
Saturday, February 11, 2012
Friday, February 3, 2012
Thursday, February 2, 2012
The Future of Costa Rica: Leading Biofuel Production
Renewable Energy Farms are by no means a new concept, what is new however, is their rapid growth in some of the world’s most naturally abundant locations. Based upon the ideals of the above concept, Multi-purpose Real Estate is the latest project to incorporate environmental productivity with economical benefit. The company offers a potential buyer a chance to not only be owners of a self-sufficient piece of property but also offers them an opportunity in making their contribution to reducing green-house gas emissions. With added bonuses of providing local farmers with further work and helping promote a healthier lifestyle choice, property owners would own a share in a global movement. Ultimately, the question that needs answering is, what has given rise to this sudden demand for this industry? Based on EU regulations of ensuring 10% of all fuel at European pumps being biodiesel by 2020, governments in other countries are becoming increasingly open to the idea!
Central America is the ideal location for projects of this nature as there is a demand for emerging markets particularly in connection to the environment. Costa Rica, perhaps agriculturally the most prosperous of Central and South American countries has become the focal point of the bio fuel market. Combining the factors of real estate, low cost labour, biofuel markets and high yielding crop production gives way to the perfect formula for a successful business venture. UBA, formally known as United Biofuels of America have seized the opportunity and are based in Costa Rica permanently. Having joined forces with real estate developers, we have seen the birth of Multi-Purpose Real Estate.
Michael Klein, Chief Development Officer for UBA was quoted stating that “Multi Purpose Real Estate is one of the newest and most promising programs that we have launched in this initiative. Essentially we offer investors that are already in or will be entering land banking market in Central America, the ability to turn land that would be otherwise sitting unused into a Bio-oil Field that generates income while their land continues appreciating.” Summarizing the project to a tee, the concept has a USP (unique selling point) that would capture the imagination of many prospective buyers.
For the estimated price of $35,000, property owners would see returns of 30% or more each year! During the span of a 5 year contract, a prospective buyer could potentially make over $100,000 yielding almost three times their investment. The properties being located in ‘hot zones’ around Costa Rica have also meant that when it comes to re-sale, the land value would be much higher than the original purchase price.
One could potentially argue the ‘what’s the catch’ aspect of the project but the reality of it is that there isn’t one! Buyers are entitled to opting out at any time by selling their land on and following a 5 year agreement will be permitted to build on the property.
Now is the time to invest in the biofuel market for analysts predict a doubling of biofuel prices in as little as 5 years time! From an investment point of view, the current attraction is the substantial amount of return the buyer receives in the long term. With fuel resources estimated to run out during our lifetime, biofuel is the biggest investment out there. With fossil fuels fast depleting, biofuel production takes the lead. Costa Rica provides the biggest asset of the all, the crops themselves. Jatropha Curcas is a native crop originating in a town called Tempate. Exported in the 1700s, this plant has many extra uses pertaining to medicine, cosmetic surgery, latex and glycerin based products. Additionally, Costa Rica’s close proximity to major U.S cities, a stable government and currency and less stringent bureaucracy laws have made Costa Rica the perfect host to the perfect concept.
Foreign buyers’ share the same rights as local citizens, making the actual process of buying fairly hassle free. That aside, having outlined all the successes of this project, it would only seem fair to consider the potential risks involved. Though few and improbable, it is important to understand that almost every element of life carries risk. With regards to failures of the project, the two biggest issues MPRE (Multi-Purpose Real Estate) is faced with are that of natural disasters and the incompletion/ suspension of the new international airport construction. If the new international airport creation was to be deferred or cancelled then land value around the area would not appreciate as much. Similarly, if for reasons of natural disaster, a hurricane was to destroy the crops, then land will be damaged and productivity would come to a standstill leading to property value loss.
Photos from JatrophaWorld.org
By Jaz Chopra
Contributing Writer
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Manuel Canales
Managing Director
CSDC Group Inc.
Caribbean Sustainable Development Corp. Inc.
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