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 PROJECTS
PALM OIL, IVORY COAST
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Palm Oil, Ivory Coast - Competitive edge
DekelOil's management team
Our management team comprises highly qualified experts in the agriculture, finance and energy fields, each of whom has acquired broad know-how and experience in his respective area/s of expertise. Additionally, the members of our team are well acquainted with international markets for viable alternative sources to fossil fuel energy – knowledge that is of extreme importance in this green energy project.
DekelOil's senior executives have also proven their capabilities in initiating and establishing new, large-scale, successful projects around the world, including in developing countries. Moreover, they are familiar with Ivory Coast, where the Rasin Group (of which DekelOil is a member) has been active since 2000, and where it has established fruitful business relations with governmental, public and private entities.
Furthermore, the financial backing and professional support of the Rasin Group, with its presence and established infrastructure and business connections in various countries worldwide, will be extremely helpful to DekelOil's activities, including in marketing, sales and distribution.
Secured supply of feedstock
DekelOil has already entered into 2 consecutive 40-year land lease agreements for 52,000 hectares of existing oil palm plantations, with exclusive rights to their crops. It is thus assured a constant supply of feedstock for the production of palm oil.
It is important to note that the green energy project carried out by DekelOil does not necessitate any deforestation whatsoever – it relies solely on existing plantations, and new ones that will be planted on unforested land – an important consideration from an environmental viewpoint.
Fixed feedstock prices
As DekelOil will be using oil palm fruit produced by plantations fully under its control, it will also benefit from control over its price. This is particularly important in view of the fact that, depending on the size of the oil extraction facility, feedstock prices may account for up to 75% of the total production costs. A fixed, attractive price will thus reduce total production costs and allow better financial planning.
Vertically structured enterprise
DekelOil is establishing the green energy project as a vertically integrated operation in the interest of ensuring feedstock supplies, and increasing efficiency and cost-effectiveness. An integrated business entity will manage all the activities carried out within the framework of the project, from the agricultural work, through palm oil production to its sales and distribution. The continuous supply of palm oil fruit from DekelOil's own plantations is of particular importance, as the main obstacle to increased biofuel production is the availability of feedstock, the demand for which exceeds the supply.
High level R&D capabilities to further enhance profitability
Within the framework of the green energy project, DekelOil intends to carry out important research activities with the purpose of developing improved oil palm seeds. These will grow into oil palms that produce larger crops, which will also be more evenly distributed throughout the year. The improved seeds will be used to replace low-yielding oil palms in DekelOil's plantations, and will also be used to establish new plantations on the additional land secured by the company for this project.
Improved oil palm seeds may also be sold on the market to oil palm farmers, as an additional source of income.
Favorable conditions in Ivory Coast
Conditions in Ivory Coast are favorable with respect to several aspects:
Oil palms are indigenous to Ivory Coast, and grow well under its tropical conditions, producing abundant fruit.
Ivory Coast is presently enjoying a period of accelerated development and growth, following years of political turmoil. At present, the country is both politically and economically stable, the rate of inflation is relatively low, the currency is stable and the banking sector and related financial industries are organized and reliable.
Within this context, the government of Ivory Coast is promoting the increase of palm oil production, including the establishment of palm oil extraction plants, of which there is a shortage in the country. Palm oil production is viewed as a means of achieving economic and professional development. Moreover, its export is an excellent source of foreign currency.
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