The document describes a proposed project called CobelecTM that would create wealth from crop residues in South Africa. It would convert maize cobs into electricity and potentially biochemicals. A 7MW pilot power plant is proposed, with the potential for expansion to 35MW. The project aims to address South Africa's need for renewable energy while creating new revenue streams from agricultural waste. Initial financial projections estimate returns of over 50% with a payback period of around 3.5 years. A $14.1 million investment is sought to fund development and construction of the first phase.

1. Cobelec™: Creating Wealth From Crop Residue September 2010
Cobelec™
Creating Wealth from Crop Residues
Philipp Steiner & Bradford Wills
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2. Cobelec™: Creating Wealth From Crop Residue September 2010
About DalinYebo (Since 2001)
 Technology Development & Transfer:
 Commercialisation of award-wining process to make
biobased chemicals, sold to Australia and licensed in
India.
 Successful VC exit in 2007
 Biorefinery/Co-gen Business Owners:
 Secure biomass supply chains
 Production facilities for chemicals & energy
Top:$30million Biobased chemicals plant (Australia), integrated
into a sugar mill that has a 16MW co-generation
plant.
Bottom:$20million greenfields biorefinery (India) with ±2MW co-
generation plant.
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3. Cobelec™: Creating Wealth From Crop Residue September 2010
Ask: $0.6m Series-A + $13.5m Series-B
 Cleantech Investment
 “A”: 12 months to BFS
 “B”: 18 months to start-up
 Smart technologies
 Agricultural residues
 Electricity
 Future: Chemicals, using waste
heat
 ±3.5 years payback
 IRR >50% (10 years)
 Enterprise value ±$30m
 Exit proposition (5 years)
 Replications (Carbon copies)!
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4. Cobelec™: Creating Wealth From Crop Residue September 2010
South Africa’s Problem!
 South Africa needs additional 10,000GWh RE by 2013
 Biomass provides low-cost (base-load!) RE
 REFIT program tariff for solid biomass is R1,18/kWh (US 16.5c/kWh)
 215MW IPP generated power online @ R1,25/kWh in Cape (US 17.5c/kWh)
 To avoid power crisis need small, decentralised generation
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5. Cobelec™: Creating Wealth From Crop Residue September 2010
Opportunity for (at least 5) Cobelecs - 35
MW
 SA Biomass Resources (2004):
Power stations and areas  Sugar Cane Trash – 5.3mil ton/yr
suitable for RE projects  Forestry Waste – 3.1mil ton/yr
 Maize residues – 9.5mil ton/yr
 Biomass - most suitable RE source in
SA inland agricultural region
 Using proven technology:
 9,500,000tons of cobs=
 9,120 GWh (1,106MW)
 Cobelec™’s Alpha Project
 Starting at 7 MW
 Expandable to 35 MW
©2010 Google
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6. Cobelec™: Creating Wealth From Crop Residue September 2010
Renaissance of the Cob
Cobelec™ integrates into existing maize
value chain
Harvest + 1. State-of-the Art Collection
 Grain is separated from plant
during harvesting
 Leaves required for soil nutrients
Grain Storage Cob Storage  Tow-behind cob collection trailer
2. Clean Combustion
 Low density problematic in
stoker boiler
Process +
 Biomass fouling of boiler
 Indirect Combustion
(Gasification)
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7. Cobelec™: Creating Wealth From Crop Residue September 2010
Unique Solution:
Corncobs to Electricity (& Chemicals)
Alpha Site (10,000 ha)
 7MW power station
 Expansion (>50,000 ha):
 35MW at marginal (20%-50%) costs
and/or
 Biobased chemicals
Beta Site
 10-20MW power station (& chemicals)
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8. Cobelec™: Creating Wealth From Crop Residue September 2010
Beyond Energy: Biobased Chemicals
 Extracted from corncobs, furfural is an industrial chemical with a
growth prognosis of 20-25% pa, due to demand for “biobased”
products.
 We have 30,000tpa of orders (LOI)
1200
Requirements
1000  A Working Cobelec
Furfural Markets: Past & Forecast Business
800
’000 (tpa)
 US$16 million additional
600
investment
 ROI > 50%
400
200
0
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9. Cobelec™: Creating Wealth From Crop Residue September 2010
7 MW Cobelec™ Projections (no chemicals)
 EBIT of ±$7 million pa
 After tax IRR > 50%
 Forecast return on investment
(after tax): >50%
 Payback period: ± 3.5
 Est. $3.6 million pa extra revenue
for biomass suppliers (i.e. farmers
– $70 - $85/ha)
 New Jobs: 12 direct + 40 indirect
Excluding Carbon Credits!
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10. Cobelec™: Creating Wealth From Crop Residue September 2010
Purpose Driven & Focused Team
 Philipp Steiner, CEO: Built teams for successful project
and business start-ups; International IP/technology
transfers.
 Brent McKeon, Marketing: Several global chemical product
start-ups; Commodity marketer.
 Harvey Wilson, Projects: Multi-million $ turnkey
contracts.
 Bradford Wills, Engineering: Technology selection and
improvements; manufacturing specialist.
 Principals of our USA JV partner*: Over 60 years of energy
conversion experience.
 Network of Specialists:
 EIA, plant pathology, farming
 Biomass combustion, IPP/PPA expertise
* dyGenesys Bio-Technologies, LLC TM & © 2010, DalinYebo Trading and Development (Pty) Ltd, All Rights Reserved 10

11. Cobelec™: Creating Wealth From Crop Residue September 2010
Preliminary Risk Assessment
 Operational 
 Technology /☐
Base Case
 Agricultural 
 Agreements
 Supply/Offtake ☐
BFS
1 yr: $0.6m Viable Case
Enterprise Value
Cum. CAPEX 10yr: $30m
Total: $13m
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12. Cobelec™: Creating Wealth From Crop Residue September 2010
History, Progress and Future Work
Pre-feasibility Feasibility Project Operation
6mth 6-12mth 12-18mth >15yr
Power
Concept Viability BFS
Plant
5yr
Completed
1. Biomass Supply 2. Collection/ Conversion 3. Electricity Off take
 Negotiations with two Technology  Agri-Corp wants to buy
“Agri-corps”  Equipment in commercial electricity/waste heat
 MOU to supply biomass operation  Energy specialist engaged
 Each has >>450,000tpa  Suppliers confirmed (successful PPA)
(60,000tpa for 7MW) equipment availability
 Quotes/ estimates
provided
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13. Cobelec™: Creating Wealth From Crop Residue September 2010
The Investment – The Exit
 $14.1million
 Projections (Free Cashflow Yr10):
 Two rounds of financing
 IRR: >50%
 Series-A: Completion of BFS
 ROI: >50%
 $0.6 million
 10% NPV: > $13 million
 In exchange for equity in
Cobelec (Pty) Ltd*  Post-money valuation: ±$30 million
 Series-B: Project Finance  Exit:
 Equity: $3.4 million
 “$15 million Strategy”: Trade
 Project Loan: $7.7 million sale to “Agri-Corp”
 Working Capital: $2.5 million
 “$30 million Strategy”: IPO
 Possibility of “Agri-Corp” as
co-investor
* to be formed TM & © 2010, DalinYebo Trading and Development (Pty) Ltd, All Rights Reserved 13

14. Cobelec™: Creating Wealth From Crop Residue September 2010
-1.3t eCO2 / MWh
flickr.com/photos/davipt) © photolibrary.com
DalinYebo Trading & Development (Pty) Ltd Suite 287A Innovation Centre
311 (Gate #9), Rick Turner Rd
Philipp Steiner & Bradford Wills
University of KwaZulu-Natal
www.dalinyebo.com DURBAN 4041
info@dalinyebo.com Republic of South Africa
Phone: +27(0) 31 260-1593
Fax: +27(0) 31 261-4123
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