Nigeria - Business creation project

Describe your project or startup in a few words

Gnergy fuels sustainability through flexible financing options for businesses/employees to convert their fleets from petrol to CNG, tracks reduction in carbon credits for brokerage and connect stakeholders (maintenance workshops and refill stations).

01.01 Describe your project in more detail

Converting car fuel type from petrol to Compressed Natural Gas (CNG) in Nigeria helps car owners save about 76% of fueling expenses. However, businesses and individuals are unable to cover the initial set up cost which is significantly high. At Gnergy, we are lowering the barrier to the adoption of this cleaner and cheaper alternative fuel by providing initial car conversion (retrofitting) cost for businesses and individuals and providing flexible repayment options for them to spread this initial cost over a payment tenure.

01.02 What is the main problem you are trying to solve?

Businesses and employees who want to convert their fleets from petrol to CNG do not have the initial conversion cost. We provide this flexible payment options for them alongside a network of integrated stakeholders (Conversion companies and Refill stations). We also monetize the reduction in CO2 emission through credits for our customers.

01.03 Tell us the major benefits and/or advantages of using the product/service that your project intends to provide (at least 3).

The advantages are categorized as follows: 1. Economic: 60% cost cut for businesses and individuals 2. 30% reduction in Annual CO2 emissions (14.2 Million tons) resulting to cleaner environment. 3. Additional income source: More cashflow for businesses over carbon credits brokerage.

01.04 Please describe who exactly your project is aimed at serving. Who are the targeted beneficiaries?

Our product is targeted primarily at Businesses involved in logistic/delivery services, haulage, transport companies and every other Nigerian who owns a car on the road. The Nigerian market where we intend to toll out this pilot has over 22 million cars on the road at the moment.

01.05 When did you start working on your project?

2024-04-11

01.06 How many other partners are associated with your business venture?

3

01.07 Among the other partners, how many are female?

1

01.08 Please describe the profile of each of the other partners (skills, experience, etc.)

Esther Uwadia​ Gender: Female ​Role: Finance​ Background: Mechanical Engineering​ Experience: 2+ years across finance and power plant operations

01.09 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link here:

https://gnergytech.com

01.10 Which industry best describes your project?

a) Energy (equipment, services, sustainable energy and fuel)

02.01.01 My project contributes to the No poverty goal

4

02.01.02 No poverty - Justification

02.02.01 My project contributes to the Zero hunger goal

4

02.02.02 Zero hunger - Justification

02.03.01 My project contributes to the Good health and well-being goal

5

02.03.02 Good health and well-being - Justification

Annual CO2 emission from transportation sector in Nigeria is at 71.34 Million Tons. Between 2020 -2021, over 25000 people including children and women died in Rivers State from air pollution. With Gnergy Technologies providing the initial finance for conversion of vehicles from petrol and diesel to Compressed Natural Gas, we will reducing this pollution by 30 percent over the next 4 years. Contributing to Good health and wellbeing.

02.04.01 My project contributes to the Quality education goal

3

02.04.02 Quality education - Justification

02.05.01 My project contributes to the Gender equality goal

3

02.05.02 Gender equality - Justification

02.06.01 My project contributes to the Clean water and sanitation goal

4

02.06.02 Clean water and sanitation - Justification

02.07.01 My project contributes to the Affordable and clean energy goal

6

02.07.02 Affordable and clean energy - Justification

The cost of petrol in Nigeria is N620 per liter; 50 Liters of petrol will be N31000, and equivalent of that in CNG at N230/scm will be N11500, saving customers over 60% of their energy cost. and providing access to cleaner fuels. By lowering the barrier for the adoption of CNG, Gnergy is also helping them access cheaper and cleaner energy.

02.08.01 My project contributes to the Decent work and economic growth

5

02.08.02 Decent work and economic growth - Justification

More technician will be required to attend to the over 220 million Nigerians growing at an annual rate of 2.6%. As more people convert their vehicles from petrol to CNG, job opportunities will be created for more people closing the unemployment gap and providing economic growth for the nation. Transactions from Carbon credits accrued over time will also bring in economic growth due to growing foreign exchange.

02.09.01 My project contributes to the Industry innovation and infrastructure

4

02.09.02 Industry innovation and infrastructure - Justification

02.10.01 My project contributes to the Reduced inequalities goal

4

02.10.02 Reduced inequalities - Justification

02.11.01 My project contributes to the Sustainable cities and communities goal

4

02.11.02 Sustainable cities and communities - Justification

02.12.01 My project contributes to the Responsible consumption and production goal

4

02.12.02 Responsible consumption and production - Justification

02.13.01 My project contributes to the Climate action goal

7 - Strongly Agree

02.13.02 Climate action - Justification

At the core of what we do is our mission to fuel sustainability. As more businesses and people convert their fleets to use compressed natural gas, the overall pollution from this sector will decrease from the current levels of 71.36 million tons. We hope to be at the forefront of the Energy Transition agenda, providing cheap energy while protecting the environment.

02.14.01 My project contributes to the Life below water goal

4

02.14.02 Life below water - Justification

02.15.01 My project contributes to the Life on land goal

3

02.15.02 Life on land - Justification

02.16.01 My project contributes to the Peace justice and strong institutions goal

4

02.16.02 Peace justice and strong institutions - Justification

02.17.01 My project contributes to the Partnerships for the goal

3

02.17.02 Partnerships for the goal - Justification

05.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

2

05.02 The product/service we envision creating represents an entirely new type of product/service.

5

05.03 The product/service we envision creating could be described as a new technology.

4

05.04 The product/service we envision creating is an improvement on an existing product or service.

5

05.05 The product/service we envision creating could be described as an extension of a range of products or services.

2

05.06 The product/service we envision creating responds to a demand or need that has not been satisfied by other products/services.

6

05.07 The product/service we envision creating is a new version of an old product/service.

3

05.08 Justification

Our product offering represents a new type of product/service because we are serving a niche market of businesses and employees who are looking to transition to cleaner and cheaper fuels. Within our offering is access to finance, access to CNG refill station and conversion workshops across the nation. Our carbon emission tracking feature which aggregate emissions cut by each vehicle by using CNG is unique and novel, helping us create a life time value for our customers that goes beyond the loan tenure.

05.09 Who are your main potential competitors and what makes you stand out from them?

Our major competitors are commercial banks and other lending platforms. While many banks lend against individual cashflow, and collateral, we are providing finance against payrolls. We serve a niched markets which further differentiates from other lending platforms. Finally over ability to provide proceeds to our customers from carbon credit brokerages give us the potential to keep customers life time value (LTV) for many more years after the loan tenure.

10.06 Are you initiating actions within your community to promote the role of female entrepreneurs?

Yes. At the moment 25% of the business is owned by females. With a female leading the teams operations, we are not only encouraging female entrepreneurs but also ensuring that they are in positions of leadership.