Periodic Reporting for period 1 - CCP (Feasibility assessment on sustainable bulk products, made from coconut fibers)
Reporting period: 2016-03-01 to 2016-07-31
CocoPeople identified several low value and high value B2B and B2C business cases, e.g. transport pallets, semi-structural automotive components, roof tiling, and furniture. Based on the evaluation of product specifications and characteristics of these applications with potential customers in the most relevant market segments, we concluded at an early stage that CocoPallets are the most viable first application for coconut composite materials. Further research and advancements in coconut composites technology will eventually allow for market penetration of high-value applications of pressed coconut fiber material in the long run, such as semi-structural automotive components.
Although transport pallets belong to a specific niche market, the impact of making pallets from coconut waste can be very large, especially from an environmental point of view. Transport pallets are a large scale application, that currently claim a vast amount of resources. CocoPallets will substantially reduce greenhouse gas emissions and pollution, due to (1) the reduction of deforestation and transportation, (2) the use of waste materials, (3) the absence of harmful resins and synthetic materials and (4) the elimination of pest pretreatments. The current focus of CocoPeople on marketing their CocoPalelts has only been temporarily limited and will be broadened in the long term future, to include high value B2C products. The likelihood of success of these ventures will only increase with the experience from pallets.
- Explore the business cases for pallets made of coconut composites.
- Elaboration of a business plan, based on transport pallets as most promising field of application in the short term, and the Asian export market for pallets as the most appropriate niche.
CocoPeople identified several low value and high value B2B and B2C business cases, e.g. transport pallets, semi-structural automotive components, roof tiling, and furniture. Based on the evaluation of product specifications and characteristics of these applications with potential customers in the most relevant market segments, we concluded at an early stage that CocoPallets are the most viable first application for coconut composite materials. A dynamic financial model was built to project profit and loss, cash flows and study the elasticity/sensitivity of different parameters. The data obtained from the market, showed that CocoPeople is likely to be a profitable venture.
Progress has been realized in the development of the manufacturing processes. The most important activities and the corresponding achievements are the set up of a production partnership with a Malaysian wood processing company, the building of the first production cell (which is capable of pressing pallets from coconut husk waste), the successfull production of a batch serie of 200 CocoPallets (while optimizing the production process parameters), and the creation of a conceptual factory outline based on the in depth understanding of the production process.
Effort has also been put in investigating the feasibility of a coconut husk supply chain, including the quantitative modelling of the supply chain. This indicated that the raw materials of coconut husks should be compacted in bales and transported over water in barges. This lead to the conclusion that a factory should ideally be located on the shore to enable direct offloading.