Alternative Fuels Americas, a full-spectrum seed-to-pump green energy developer focused on multi-feedstock biofuel production via a vertically integrated biodiesel production process, as well as the roll out of feedstock infrastructure throughout Central America, was pleased to report today that they have now confirmed access to enough private land in Costa Rica to supply the feedstock for some 2M gallons of biodiesel annually, as the company has successfully extended some 150 agreements to landowners.
This is a huge coup for AFAI ahead of their primary Jatropha fields maturing. Jatropha is a high-yield feedstock that can grow on marginal land and naturally repels most pests and pest-borne diseases. The lands selected for the agreements reported on today were vetted by aerial/satellite reconnaissance for containing high concentrations of precisely the kind of wild feedstock the company’s program was developed to utilize. All told, the company’s initial refining capacity in Costa Rica should be around 6M gallons per year at full capacity, generating roughly $22.7M in revenues, and AFAI has already managed to secure offtake agreements for $14M in product.
Securing of these 150 key agreements provides AFAI with immediate access to raw material, rapidly accelerating the revenue timeline for the company’s Costa Rica model and, given the resounding success with the first round of landowner agreements, AFAI is confident that the additional targets they have identified in the region will pan out nicely. Several sites in the area have been identified as containing optimal concentrations of wild feedstock. AFAI will be looking to ramp up their scalable refining capacity, while also expanding their wild feedstock program to encompass these new areas once things get rolling.
This immediately accessible wild feedstock forms a solid backstop for AFAI’s Jatropha tree cultivation program, which has exceptional economics thanks to the remarkable characteristics of the tree, including factors like the seed having up to 65% oil content, something which ultimately makes the plant capable of sustaining commercial expectations and needs when grown by the field. The company’s Jatropha plantations benefit from extensive experience with the tree, which fruits roughly three times per year, and AFAI has managed to overcome many of the technical challenges that have led to the demise of other operators attempting to harness this plant for its maximum yield. The proper plant science and conditioning is required to get the most out of Jatropha and novices who rushed into the cultivation of the tree early on in the biofuel industry, enchanted by its possibilities, largely failed to achieve the proper mix of hydration, fertilization, and organism/environment conditions.
CEO of AFAI, Craig Frank, explained that these successful negotiations effectively concluded the third phase out of four in the company’s development plan, the first having consisted of stabilizing the necessary feedstock supply through agricultural trials and the second focusing on demonstrating marketability through securing of the aforementioned offtake agreements. Mr. Frank was clearly excited about the accelerated revenue timeline and lauded the accomplishments the company has made thus far in Costa Rica as being a real hallmark to investors of AFAI’s drive, as well as their demonstrated ability to meet development targets.
The way AFAI has dodged all the pitfalls that usually snare other biofuel developers is quite a story in itself, but the real story here is the rapidly advancing staged entry of AFAI into a global biofuel market projected to exceed a whopping $500B by 2019 alone. One key aspect of AFAI’s success has been to establish the model up front and leading sector publication Bloomberg Biofuels has pointed out the importance of offtake agreements, while Biofuels Magazine has underscored the strategic significance of low-cost raw material inputs. AFAI has executed in both areas extremely well, with the four offtake agreements lined up even being for buyers in Costa Rica itself, further sweetening the underlying profitability.
Everything is in place for expansion of the wild feedstock program and the company’s highly scalable refining model will surely be able to compensate as their Jatropha comes online. AFAI is definitely a company to keep an eye on for further developments as they enter and wrap up the final phase of their development in Costa Rica.
For more info on Alternative Fuels Americas, visit www.AlternativeFuelsAmericas.com
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