Afghanistan Rural Fuel

Project

With the Multi Functional Rural

Fuel Platform M.F.R.F.P. Clean Water

Renewable Diesel Fuel

Rural Electricity

Energizing Afghan

Rural Communities

Displace Opium cultivationwith rural fuel feedstocks

This is a proposal how Afghanistan's

rural poor might make money…

The world donates $300 billion every year…

…yet there are 1 billion people living on a $1 dollar per day…

It would be more efficient to mail $300 to each person every year to double their income to $2 per day than use the world’s existing aid system to lift

Afghanistan's rural poor out of poverty.

A poor person’s greatest need is a way to make money…

Household Electrification

Clean Water

Rural Development Aid can supply…

but a rurally produced diesel fuel replacement is the missing piece in the aid puzzle that can energize

rural communities and provide income generation opportunities for the rural poor trapped in the

poverty cycle…

The Rural Poverty Trap?

This dependence on biomass energy in rural areas has led to women dedicating long hours to wood and water gathering activities, ensnaring

them and their families in the rural poverty trap...

Biomass energy like wood, dung etc. accounts for on average 75% of the total energy consumption in developing regions...

Rural communities grow soy beans instead of opium…

…process soy beans into

vegetable oil, rural fuel and meal cake…

…process meal cake for human and animal diet

supplement…

…use vegetable oil to power a diesel engine and sell rural

fuel for cash…

…use diesel power for electricity

generation to charge LED

lanterns

and run the water maker.

Vegetable Oil can break the Trap?

Vegetable Oil

is a clean burning, renewable substitute for

petroleum based Diesel Fuel…

…2. or you can modify the vegetable oil to reduce it’s viscosity through a

chemical conversion process called Transestrification and produce

Biodiesel…

1. You can use a conversion kit to modify a vehicle and reduce a

vegetable oil’s viscosity on-board using engine heat…these are

commonly known as SVO kits.

How can vegetable oil replace diesel fuel?

Straight Vegetable Oil (SVO)

SVO is an acronym for “Straight Vegetable Oil” when used as a diesel fuel substitute.

Suitable oils are commonly found vegetable oils like soy, sunflower & canola…

Current Biodiesel Technology

Home Brew Refinery Containerized Refinery Industrial Scale Refinery

• A single tracer round shot into methanol tank destroys facility.

• A correctly place lighted cigarette in the on-site methanol tank

in a suicide mission destroys facility.• A methanol delivery tanker truck could be used as a suicide mission, a single tanker is capable of destroying refinery.

Small ↔ Large

The Challenges of using Methanol in a Biodiesel refinery in war torn regions are:

• You have to get the Methanol to the refinery. • Biodiesel is a different product from diesel fuel.

The Challenges of a Biodiesel refinery in a remote location:

The Rural Fuel Reactor

The reactor does not need Methanol and is capable of refining vegetable oil into

diesel fuel …

…this is not Biodiesel but Renewable Diesel.

This renewable diesel fuel meets all the existing

specification for petroleum derived diesel fuel – D975.

Rural Fuel Production Process

Heat

Feedstock Oil

Finished Fuel

Propane

Water

Vegetable Oil

Feedstock Reactions and Products

Liquids and Gasses

Carboxylic Acid

Carboxylic Acids, Hydrocarbons and EstersTriglyceride

Under heat, exist in vapor phase as

dimers of two monomers

Unsaturated Ketone

Paraffin

Cracking

Chemical Reaction

No Hydrogen or Methanol Needed

C3 backbone converted into

Propane

Triglyceride

Hydrocarbons

Carbon Dioxide WaterPropane

Triglyceride cracked into

Hydrocarbons

Oxygen converted into CO2 and water

Heat

Gasoline

Diesel

Kerosene

Heavy Fractions

Light Fractions

High quality fuel produced

The fuel produced has a high Cetane number of 63…

…and has an excellent cold flow properties of:

Cold filter plug -10 Deg C 14 Deg FCloud Point: 10 Deg C 14 Deg F

… when made from a soy oil feedstock which is necessary for the cold

Afghan winters.

Technology Scale Comparison

Biodiesel Refinery

Renewable Diesel Refinery

The Renewable Fuel Products Reactor

Processing Complexity Comparison

StripFFA’s

Renewable

Diesel from

a refinery

Renewable

Fuel

Products

Reactor

Add Methanol

Phase Separation

Biodiesel “1.0” Wash

MethanolRecovery

Blendwith

Diesel

Heat AddHydrogen

Crackwith

Catalyst

Fuel

Fuel

Heat Reaction

Distillinto

Fractions

Fuel

Distributed Refining

Centralized Refining

Distributed Refining

Enables an exponential improvement in feedstock, the software of the biofuel industry.

Petroleum Diesel Biodiesel Renewable Diesel

We call it Biodiesel “2.0”

Producing a vegetable oil derived diesel fuel replacement that is ready to use in any diesel engine overcomes the need to convert the vehicle to Straight Vegetable Oil

(SVO).

This kind of diesel fuel production technology overcomes the practical issues that plague making biodiesel using transesterification...

…and could be the missing piece of the aid puzzle.

TheM.F.R.F.P.Platform

The Multi Functional Rural Fuel Platform enables

poor, rural farmers to free themselves from the poverty trap by using

vegetable oil seed crops to energize their

communities…

The M.F.R.F.P.Multi Functional

Rural Fuel Platform brings…..

…plus brings electricity and clean water to their communities …

…a way for rural populations to earn money producing diesel fuel…

Renewable Diesel Fuel

Clean WaterRural Electricity

Multi Functional Platforms - MFP

Multi Functional Platforms (MFP’s) are used very successfully in countries like Mali as part of rural poverty alleviation programs.

The Multi Functional Rural Fuel Platform - MFRFP

Adding a rural fuel production capability to other typical Multi Functional Platform sub-systems creates the Multi Functional Rural Fuel Platform (MFRFP)…

+

Water pump for irrigation

Components of a Multi Functional Rural Fuel Platform (MFRFP)

Oil Seed Processor

Skywater water maker

Electric generator for lighting

Rural Fuel Processor

Diesel Engine

Flour Mill

MFRFP’s Oil Seed Processing

The prototype MFRFP uses an seed Expeller combined with a… …C.S. Bell Flour Mill

MFRFP miniaturized ExtrusionTechnology for processing oil seeds

The MFRFP will use a small, light weight, 60ib per hour Extrusion unit

that was co-developed for a NASA mission to Mars producing 50ibs of

meal cake and 1 gallon of oil per hour.

Extrusion has a number of advantages as the process applies heat and pressure which enables oil seeds to be processed, ready for

human and animal consumption directly out of the Platform.

The Lister Engine produces 12 hp and a torque of 84NM (8.4kg-m) at full power.Fuel consumption is 0.25 gallons per hour at 6 hp power output and 0.5 gallons per hour at full power.

Our Lister Engine runs on SVO…

MFRFP Diesel Engine Power The Lister Engine is one of the most

commonly used engines in developing countries and has proven to be extremely reliable in the field...

…The MFRFP uses Old Style Lister’s version which claims 100,000+ hours of 24/7 continuous operation which is 10+ years without the need for anything

more than routine maintenance.

The field units will in all likelihood use a regular 12 volt vehicle alternator as these are readily available pretty much anywhere in the world.

MFRFP Electricity Generation

The generator is connected to a series of outlets, 12, 120 and 220 volt. We can run most of our equipment in our shop from this unit so we gain a lot of experience being off

the grid ourselves…

The prototype MFRFP uses a

10KVA generator…

Rechargeable LED lanterns can be used in community households, brought to be recharged in a “Sandal” grid network and recharged daily using the MFRFP’s generator…

“Sandal Grid” Community Lighting

…an electric LED lantern can replace and provide more light than 3 kerosene lanterns...

…a small business opportunity is created collecting and recharging the community's electric lanterns daily.

MFRFP drives a Water Pump

The Prototype MFRFP is fitted with a 120 gallon per minute water pump…

…for irrigation…

MFRFP makes water from the air

Clean water is critical to any development effort that seeks to improve the lives of poor,

rural communities…

The MFRFP Platform is design to use a Skywater system coupled to a series of filters to produce good quality, drinking water without the

need for a well…

MFRFP drives a Tool Grinder

… a stone grinding wheel can easily be connected to a power takeoff shaft on the MFRFP…

Manual grind stones require tremendous physical labor and don’t

do the most efficient job…

What does the MFRFP look like?

How does a community purchase a Multi Functional Rural Fuel Platform?

We wish to create a micro bond finance system for

financing community level MFRFP infrastructure…

Proceeds from the sales of carbon credits are used to pay off the purchase costs of the MFRFP equipment and fuel

sales provide cash to all those individuals in the community providing services and products to the MFRFP enterprise...

similar toMuhammad Yunus’s

microfinance model…and supplemented with carbon

credits…

MFRFP Economics1 Gallon per hour Multi Functional Platform 8 Gallon per hour Fuel Reactor - Business Model in Afghanistan

Income StreamProduction Level 70,080 Gallons Per Year 192 Gals per day 8 gallons per hourPrice Per Gallon $140,160 $2.00 per gallonMeal Cake $0 $0.000 per ib 5,781,600 Ibs per year 15,840 Ibs per day 660 Ibs per hourTotal Income $140,160 Per Year

Variable Costs Oil ibs to gallonsSoybean Oil Cost $0 $0.00 per gallon $0.30 Per Ib 7.3 Conversion FactorSoybean Bushel Cost $0 $0.078 cents per ibPlant Operator $2,044 $0.70 per hour 8 hours per dayMFRFP Royalty $7,008 $0.10 per gallonTotal Variable Cost $9,052 Per Year

Service ContractEquipment $2,000Hotline $500Finance costs $36,250 Mirco Finance rate 25%Capital Repayment $14,500 Repayment timeframe 10 yearsTotal Annual Costs $53,250

Gross Margin $77,858 Per Year

Acreage per MFP 241Total Acreage 2409

Equipment Costs No of UnitsFuel Reactor $60,000 1Multi Functional Platforms $85,000 10 $8,500Total Capital Costs $145,000

MFRFP’s Carbon Accounting

22 * lbs of carbon dioxide per gallon of diesel50,000 Gallons of carbon diesel displaced per year

1,110,000 Total lbs of carbon dioxide displaced per year503 Total tons of carbon dioxide displaced per year$30 Price per metric ton of carbon dioxide

$15,105 Carbon credits per year per Platform$151,048 Carbon credits over 10 years

*CO2 emissions from a gallon of diesel = 2,778 grams x 0.99 x (44/12) = 10,084 grams = 10.1 kg/gallon = 22.2 pounds/gallon

Cash from fuel sales funds the vegetable

oil uplift system

Cash from Carbon Credits funds the purchase of the

MFRFP equipment

Land Available for AgricultureAfghanistan is 5 times bigger than Iowa and a little smaller than Texas, with a land mass of 250,000 square miles or 650,000 square kilometers and a population of approximately 30 million people.

There are approximately 22 million acres of land currently under agricultural cultivation in Afghanistan.

5% of that land or 1 million acres is estimated at being currently available for soybean cultivation.

At yields of 40 bushels per acre, 1 million acres of soybean will support 500 rural fuel reactors…

Soybeans available worldwide

No need to wait for an Afghan soy harvest as soy can be shipped from overseas to get the first year MFRFP production up and running….

…the operating MFRFP Platform and Fuel reactor demonstrate to the local farming community that there is a viable market for soy, so reducing the risk to the farmer that if the does plant for next year, the farmer will be able to sell the soybeans harvested into a local market….

…using shipping containers as on-site storage for imported soybeans, these containers can be used in the following years as local silo storage for the future soy harvests…

National Protein ImplicationsA person needs 65 grams of total protein per day and approximately ½ of that protein requirement for a healthy diet can be met using soy based protein.

Soy protein can be used to make soy milk and soy flour, which when used in a 10% rate is a great protein fortification for Naan bread, an Afghan staple food.

3 pounds (ibs) of soy meal cake produces 1 gram of protein. At this rate, 1 person’s annual protein needs can be met with 100 pounds of soy meal cake.

Cultivating 1 million acres with soybeans will produce 40 million bushels of soy or 2 billion pounds (ibs) of soy meal cake per year. 1 million acres of soybeans will produce sufficient protein for 20 million people.

This is sufficient protein to eliminate the entire Afghan protein deficiency that plays a large part in Afghanistan having the highest mortality rate for children under 5 years old, currently running at a stunning rate of 1 in 4.

Soy Milk

Naan Bread fortified with 10% soy flour

Afghan Diesel Market• An estimated 75 million gallons of Petroleum and Lubricants were used in

Afghanistan in 2004.• Diesel represents 60% of consumption - 40 million gallons per year.• Approximately 75 percent of all Petroleum and Lubricant products are

imported through three border points:

- Islam Qala - 30 percent

- Heratan - 25 percent

- Aqina - 20 percent. • Iran supplies 50 percent of the total Petroleum and Lubricant volume to

Afghanistan, Uzbekistan and Turkmenistan supply nearly 25 percent each.• Refined oil products are shipped over 700 miles by rail and truck from a

Turkmen refinery on the Caspian Sea. Fuel is trucked from four refineries in Pakistan passing through the Khyber and Salang Passes and delivery runs take a week at a time. On any given day, there are approximately 50 to 60 trucks coming to the wholesale market daily.

• Kabul, its surroundings and the Northern Region consume over 55 percent of the total volume of imported petroleum products.

• Kabul generates 35% of its electricity from diesel - all funded by USAID…

National Economic ImplicationsThe envisioned Afghan soybean industry and using soybean derived vegetable oil used as a diesel fuel production feedstock replacement has the potential to transform the prospects for many poor, rural Afghans…

500 Fuel Reactors installed throughout rural Afghanistan could produce approximately 35 million gallons of diesel fuel. This volume of diesel production would represent approximately $70 million dollars in sales revenue and replace most of Afghanistan’s diesel imports at 2004 levels.

Loan capital required for 500 systems would be approximately $90 million dollars.

$70 million dollars of economic income usually results in a 7 to 1 multiplication in economic activity. At this rate, 500 Fuel Reactors installed throughout rural Afghanistan could potentially result in $500 million dollars of economic activity. Adding this much economic activity into the rural communities would result in the tripling of the average rural Afghan’s per capita income, from the current level of:

$1 per day or $365 per year to

$3 per day or $1,095 per year.  

…roll out Micro Finance and Carbon program, install MFRFP equipment into rural communities…

Capital and personnel are needed to establish a Vegetable Oil Uplift System Center of Excellence in the region…

R&D Effort needed to investigate crop availability and suitability for area in need of Economic Development…

What are the first steps establishing an MFRFP program?

Military patrols are the keystone customer

The military patrols made into remote regions in Afghanistan can be used as a keystone customer

base to help speed up getting rural fuel platforms installed

around the country.

Rural villagers have an economic interest in helping the military patrols arrive at

remote villages safely to buy their fuel.

Locally produced diesel can reduce the price the military pays

for fuel at the front line and reduces the amount of fuel that

has to be sent into Afghanistan via vulnerable fuel convoys.

Village Scale Deployment

Expand program to other villages once model perfected…

A military commander who is looking to win over a village in his area can provide a reactor in return for the villagers providing fuel for his patrol vehicles…

The military can establish an economic link between their patrols and the villagers economic income. The more the military show up, the more fuel they can buy, the richer the villagers become and the more information on the insurgency that can be gleaned from this regular contact.

The more the military show up, the more the villagers will reject the insurgent influence and the more secure the village will become. The military become associated with village well being, security and economic prosperity, not the mayhem and destruction of the insurgency.

If successful…install seed crush equipment …supply with raw oil seeds…

If successful…local farmers will see seeds being processed in their community and will feel confident planting for the next season to meet this local oil seed demand.

How to start?

Install one Rural Fuel Reactor…supply with vegetable oil…sell fuel to a regular military patrol…

Identify a local US commander that is willing to pilot the concept, that works with a suitable local community…

Thank you for your time.

If you have any questions, please feel free to contact:Peter Bell at: 972-948-8355 info@mfrfp.com

http://www.mfrfp.org