The Investancia business model consists of the acquisition of best suitable, previously deforested cattle land in carefully selected parts of the Paraguay Chaco. The acquired land is subsequently reforested with Pongamia tree varieties that are genetically selected (NOT genetically modified). Elite Pongamia allows for volume plantations and mechanical harvesting resulting in optimum yields per hectare. Once the trees have reached a minimum height, cattle are rotated back on to the same land. As such we create highly sustainable silvopastoral agriculture systems (trees + livestock). Our land, the trees IP and the applied plantation management systems form the base assets of the company. We simultaneously produce second generation Biodiesel feedstock, bio Oils for the chemical industry, Carbon (credits), Feed and Meat from our livestock. At the maturity of our trees after 5 years, and as a result of our compound land use, we anticipate above average return rates for our investors.
- Business Type:
- Industry Type:
- Market Focus:
- Internationally (various countries)
This company also provides solutions for other industrial applications.
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Paraguay is one of the few countries in South America in which investors can purchase and hold land directly and in any desired legal structure (which is not possible for example in Brazil, Argentina, and Uruguay).
Investancia proposes and operates tailor made land development programs for individual investors, investment clubs, family offices, private equity, green and carbon investment funds.
Under the program, an investment structure purchases cattle land in the Paraguay Chaco. We provide high level Paraguayan government support, references and land tittle guarantees for the land developments. We also apply small farmer and indigenous population support programs.
The cattle land that is owned directly by investors already shows existing cash flow and IRR when professionally managed.
The land is then gradually reforested during the regular cattle rotation process (no loss of cattle revenues) with our elite perpetual trees. The same land will now also produce for 50+ years second generation biofuel, protein, honey and carbon credits. Our elite tree genetics have been certified by the Ministry of Agriculture and are genetically adapted to the various region of the Paraguay Chaco.
The produced crude biofuel and carbon sequestering is presented for certification by the RSB (http://rsb.org) as second generation (use of non-food land) representing 100% GHG savings in relation to fossil fuel. The crude oil is exportable world-wide as premium biofuel feedstock.
Our planting program enhances considerably the returns on the land through the additional operations income from biofuel and protein. Additionally, the underlying land value will increase significantly because the land is transformed from deforested cattle land to high yielding “silvopasture” land (combination of cattle and forestry agriculture) with potential additional carbon credit income.
The economic and social impact of volume Pongamia plantations will be considerable for the Paraguay Chaco region. We estimate the following impacts per 10,000 hectare of Pongamia plantation:
- Creation of an estimated 250 direct permenant jobs
- Work force creation for the land preparation and planting of 3.8 million trees
- Work force for the harvesting of 180,000 tons of pods per year
- Crushing capacity for 180,000 tons per year
- Crude boidiesel production, consumtion and export of 43 million liters
- Infrastructure & irrigation maintenance
- Creation of tree nurseries operaton
- Cattle management
- Creation of apiculture
- Animal feed production from seedcakes
- Employees’ housing programs
- School programs
- Medical support progams
- Technology & know-how transfer
- Training of local workforce
- Best practices transfer
World Bank’s seven-principle code of conduct for responsible agro-investment
- Respecting local land rights
- Ensuring local food security
- Ensuring transparency and good governance
- Consultations with all stake holders
- Responsible agro-investing
- Social sustainability
- Environmental sustainability
We pre-select cattle land for certified reforestation land leases for individual investors, family offices and specialized funds to which we match long term production contracts with world-wide Renewable Diesel oil refineries and protein off-take agreements.
Our elite tree propagation and research center already represents world's largest dedicated elite pongamia tree production site. We have built an elite tree propagation capacity of 300,000 trees reaching over one million trees a year from 2018 onwards. The site of 1,000 hectares has over 1 km on the Rio Paraguay, one of south America's most navigated rivers directly bordering Brazil. The site has its own harbor, landing strip and can also be easily visited by road via Brazil.
Our Holding Company is based in Rotterdam in the Netherlands. The port of Rotterdam is Europe's largest producer of Renewable Diesel and the major biofuel hub for the European market. Crude oil from crushing from our site at the Rio Paraguay can reach all major harbors in the world by only using low cost, low carbon vessel transport.
We provide the world wide fast growing Low Carbon Fuel industry an alternative, non-food, feedstock to palm and UCO. Our feedstock is cost effective, high yielding and carbon negative produced by reforesting cattle land.
Investors in feedstock production have a rare opportunity to responsibly invest in a fast growing, fully sustainable agriculture practices of the future with income from Renewable Diesel feedstock, protein, cattle and possibly carbon credits.