The Company is seeking funding to develop a manufacturing facility that at full capacity will produce 115,200 kilolitres of wheat-based bioethanol per annum. This bioethanol will then be sold to major companies as an additive to regular unleaded petrol (e.g. E10 and E85) or equivalently exported. This will strongly position the business to take charge and be ahead of the growing trend in the growing biofuel market where limited competition exists in Australia.
Revenue can also be sourced by selling by-products produced during bioethanol's fermentation process. These include:
These by-products will be predominantly sold to regional markets to producers of high nutrient agricultural protein meal supplements and land-based fertilisers.
Helios’s Ethanol Plant is out to raise a total of USD $130 million with parties supplying a combination of debt/equity financing. At full production, the plant will generate total revenue of USD $99m and a net profit of USD $41m annually, which is 41.4% profit according to current wheat prices. The founders have the means to get this project deployed as soon as they receive as little as USD $30m. Optimal construction variation starting points are already outlined depending on investor capital available, to begin with.
Equity partners will own a piece of the project and receive both capital growth and dividend disbursements based on the level of ownership secured by the invested equity. Debt funders will receive interest payments at a healthy negotiable interest rate with payback within eight years. All serious offers will be fielded.
Strong team and expertise. The founder is a highly experienced engineer and researcher. He is the inventor and holder of 6 patents.
Patent protected project. The project commercialises a patent that the founder has successfully registered in Australia - A system for producing gas from organic waste (Patent No: 2010201398-Australia).
Long term purchase contract already secured. A Swiss-based global ethanol mogul has entered into a long-term monopoly purchase contract to purchase Helios’s bioethanol. Other global companies have also expressed interest in Helios’s suite of products.
All necessary government, certifications and approvals are already secured.
Property site and partners to build the project already secured.
The timing for the Project is optimal for the following reasons:
1. Growth in local and international ethanol markets
International and regional ethanol markets have experienced a consistent rise in the past five years, with approximately 149,830 kilotons consumed globally in 2018, a growth of 194% in a decade. Similarly, the Australian market has also undergone growth in ethanol consumption between 2013/14 and 2016/17 from 331 million litres to 565 million litres consumed in ethanol-blended fuels. It is projected that the global ethanol market will witness a significant surge in demand, from US$49 billion in 2017 to US$55 billion in 2026.
2. Increasing support and preference for biofuels and ethanol in public policy
Currently, the New South Wales (NSW) and Queensland (QLD) governments have both put in place mandates that require petrol fuel suppliers and retailers to sell biofuel-blended fuel.In addition, national laws and regulations (such as the Fuel Quality Standards Act 2000 and Fuel Quality Standards Regulations 2019) and green energy programs have also been established to drive growth in the consumption and hence the demand for biofuels. Limited Australian supply of ethanol to meet increasing demand. In the Australian market, there are primarily only three established producers of ethanol with a total capacity of producing approximately 440 million litres per annum, which does not meet the current demand.