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.

Company details

De Ploeg 18 , Wezep , NA 8091 Netherlands

More Office Locations Locations Served

Business Type:
Technology
Industry Type:
Agriculture
Market Focus:
Internationally (various countries)

This company also provides solutions for environmental applications.
Please, visit their profile in environmental-expert.com for more info.

Why: deep-sea-drilling and soil-fracking for a one-time, risky and ecologically disastrous gain?

Why: using energy to cut virgin forests to grow trees and then cut them again?

Why: producing energy on already tired and scarce fertile land that we need to grow food on?

Why: procuring energy with systems that require a lot of water that is also already scarce?

When: you can plant perpetual Trees on non-food land that stores Carbon and produce Biofuels and animal Feed allowing cattle grazing to produce Food and do this Profitably and Responsibly for the next generations to come.

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Biodiesel is generally seen as the best alternative for petroleum diesel made from fossil oil. “First generation” biodiesel, made from the oils of edible crops such as corn, soy, and palm are technically adequate substitutes for petroleum diesel.
 
However, these vegetable oils are not perfect solutions. They compete with the food supply and use expensive agriculture resources such as water and high-quality soil thereby driving up costs.
 
World economies such as Europe, the US and Brazil are all pushing the use of  Biofuels through diesel mixture mandates. Most of these economies have begun to  strongly promote the production of second generation biofuels applying double counting rules.
 
Based on these assured future markets and considering the food-versus-fuel debates, there is a tremendous opportunity for “second generation” biodiesel crops.
 
Of these second generation biodiesel crops, the Pongamia tree, with a life time of 50-100 years is the best identified alternative.

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Our 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.

In the light of our use of land and resources, deforestation and fossil fuel combustion are the largest anthropogenic sources of carbon dioxide to the atmosphere causing climate change.

The most positive impacts on climate change are therefore reforestation and the appropriate use of land for the production of energy and food.

Next generation or sustainable agriculture can be defined as 'an integrated system of plant and animal production practices having a site-specific application that will last over the long term'.

First generation biodiesel, made from the oils of edible crops such as corn, soy, and palm are technically adequate substitutes for fossil diesel.

However, these vegetable oils are not perfect solutions. They compete with the food supply and use expensive agriculture resources such as water and high-quality soil thereby driving up costs.

An additional requirement for second-generation biodiesel is a minimum CO2 emission savings of 30%-50% in comparison to fossil fuels.

World economies such as Europe, the US and Brazil are all pushing the use of

biofuels through diesel mixture mandates. Most of these economies strongly promote the production of second generation biofuels applying double counting rules.

Based on these assured future markets and considering the food-versus-fuel debates, there is a tremendous opportunity for “second generation” biofuel crops.

The next generation agriculture must however enable biofuels to be produced on non-food soils from perpetual vegetable crops that reforest and preserve existing cattle land without the use of fossil based fertilizers, pesticides or equipment.

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:
 
Economic

  • 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

Social

  • 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