GSR Energy, Ltd.

Company description

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GSR Energy Limited (GSR) was founded in Belize in 2009 as a joint initiative between Belize and US Nationals. GSR is a 1st generation bio-energy company developing project-based solutions to Belize's energy problems. GSR's Sugarcane Bio-Refinery Project is one of the winning projects for the 2012 IDEAS Energy Innovation for the Caribbean contest sponsored on the Inter-American Development Bank website. The US $ 200,000 grant award was used to perform the Pre-Production Feedstock Optimization and the bio-electricity plant Equipment and Process Design Optimization. Belize is dependent on Mexico for 75 % (230 GWh) of dispatchable electricity and the USA RFS-2 mandates for Advance Bio-Fuel (sugarcane) ethanol are currently left unfulfilled and are increasing from 1.5 to 4.0 billion gallons per year by 2022. GSR Energy Limited is developing a Brazilian-Designed, Fully-Integrated Sugarcane Bio-Electricity Plant and Bio-Ethanol Distillery (the “Bio-Refinery”) in the Orange Walk District of Belize. GSR will use only proven, leading edge Brazilian 1st generation bio-refinery technologies and practices. GSR’s Joint Venture partner is a Brazilian engineering firm with extensive experience in the design, build, finance and operation (DBFO) of sugarcane bio-refineries both within and outside of Brazil. GSR has negotiated all fixed costs and the price for bio-electricity is also fixed such that GSR's cost of production for ethanol is at least 43 % lower than sugarcane ethanol industry leader, Brazil and corn ethanol industry leader, the U.S. The tax rate is 0 % during the loan period and 1.75 % for ethanol thereafter. Project IRR: 33.4 % Total Capital Requirements: US $ 223 M Debt (78%): US $ 174 M (1 % for 10 years) GSR is sourcing Project Equity Investment in the Bio-Refinery Project. US $ 49 M Payback Period: 2 - 4 years