Company Profile

FFC Energy Limited (FFCEL) is a special purpose public limited company which has been established and set up under the laws of Pakistan and is incorporated under the Companies Ordinance 1984. It is a subsidiary of Fauji Fertilizer Company Ltd. which is one of the biggest names in Pakistan’s corporate sector for decades, and is the largest fertilizer producer in Pakistan with 60 % of the fertilizer market share in the country.

FFCEL has developed Pakistan’s first Wind Energy Project at Jhampir, District Thatta, Sindh. The company has played a pioneering and leading role in developing Pakistan’s nascent wind power sector. With total installed capacity of 49.5 MW and consisting of 33 number of Nordex S77 1.5 MW wind turbines, FFCEL became Pakistan’s first wind power electricity generation company to achieve Financial Close on June 28, 2011.

After successful completion of construction works, installation and commissioning of wind turbines and other equipment, FFCEL Wind Farm was inaugurated by the then President of Pakistan, Mr. Asif Ali Zardari, on December 24, 2012. This project emerged as the Pakistan’s first grid connected operating wind power project after the declaration of its Commercial Operation Date on May 15, 2013 by CPPA.

FFCEL Wind Power Project has become Pakistan’s signature project and a major step towards achievement of self-sufficiency in energy production through renewable and indigenous resources. This Fast Track Project has provided over 200 GWh of cleaner and sustainable energy to the national grid and helped address electricity shortage in the country.

Associated Company

Fauji Fertilizer Company Limited

Fauji Fertilizer Company Limited (FFC) is the largest urea manufacturer in Pakistan. It was incorporated in 1978 as a joint venture between Fauji Foundation (a leading charitable trust in Pakistan) and Haldor Topsoe A/S of Denmark. The Company is operating three world scale urea plants with an aggregate design capacity of over 2 million metric tonnes per annum. The initial share capital of the company was 813.9 Million Rupees. The present share capital of the company stands above Rs. 8.48 Billion. Additionally, FFC has more than Rs. 8.3 Billion as long term investments which include stakes in the subsidiaries FFBL, FFCEL and associate FCCL.

In 1993 FFC together with Fauji Foundation participated as a major shareholder in a new DAP/Urea manufacturing complex with participation of major international/national institutions. The new company Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited) commenced commercial production with effect from January 01, 2000. The facility is designed to produce 551,100 metric tonnes of granular urea and 445,500 metric tons of DAP, revamped to 670,000 metric tons of DAP.

The initial share capital of the company was 813.9 Million Rupees. The present share capital of the company stands above Rs. 8.48 Billion. Additionally, FFC has more than Rs. 8.3 Billion as long term investments which include stakes in the subsidiaries FFBL, FFCEL and associate FCCL.

Thus FFC’s Marketing Group, the largest marketing network in the country, markets nearly 3.5 million metric tonnes of fertilizer per annum for both FFC and FFBL under its brand “SONA” which means gold.

The Company holds 50.88% stake in FFBL and 6.79% stake in Fauji Cement Company Limited. Besides it holds 12.5% stake in Pakistan Maroc Phosphore SA (PMP) in Morocco which meets the entire raw material requirement of FFBL’s DAP production.

The Company is listed on all three Stock Exchanges of the Country and is amongst the Country’s largest corporate entities. The Company’s securities are one of the most actively traded scrips on the Stock Exchanges. It is amongst the top 25 Companies at the Karachi Stock Exchange (Guarantee) Limited (KSE) since 1994 and has been declared first thrice in 1997, 2010 and 2011 respectively.

Company’s financial position has consistently strengthened since its inception. Recently the world renowned UK based business analyst PLIMSOLL has declared FFC as 14th most profitable and 38th largest company in world’s top 100 fertilizer manufacturers. In 2012 FFC contributed Rs 43.19 billion to Govt exchequer by way of taxes & levies with aggregate contribution of over Rs 204 billion since inception. The Company also saved Forex of US $ 1.06 billion for the Country in 2012 and over US $ 10 billion since inception by way of import substitution.

Towards its diversification policy, FFC has pioneered in the development of renewable energy in Pakistan by setting a landmark Wind Power Plant with a view to enhance Country’s energy security through green and clean power. The 49.5 MW grid connected wind farm has been successfully operating in Jhamphir, Sindh since May 16, 2013.

The Company has recently acquired Askari Bank limited as part of the Fauji Group with 60% shareholding.

The Company is also in the final stages of developing Fauji Fresh and Freeze (formerly Al Hamd Food Limited) to diversify in food processing industry, one of the fastest growing sectors in Pakistan and across the globe with a huge potential of further growth and development in future.

Company is also keen to expand its HR Technical Services business in potential markets in the Middle East and KSA. It is also considering various investment proposals both inland and abroad as part of business diversification strategy.

Along with financial progress, FFC CSR contributions in the areas of education, health, disaster relief and environment are significant. Company is striving to incorporate UNGC principles into its strategy and governance for a sustainable business.

Internationally FFC is well recognized as a member of International Fertilizer Association (IFA), Arab Fertilizer Association and UN Global Compact USA.

http://www.ffc.com.pk 

IMS Policies

Quality Policy

FFCEL is committed to attaining excellence in all areas of its operations. We continue to strive to improvement through coordinated efforts, feedback, and training and employee motivation. We are determined to ensure customer satisfaction, company’s productivity & profitability, occupational health, safety and care for our environment and continue playing our role in the development of renewable energy sector of Pakistan.

Environment Policy

FFCEL is committed to achieve environmental protection through compliance with all the applicable laws and regulations. An active pollution prevention program is followed with efforts for continual improvement in the environmental aspects related to operations.

Occupational Health and Safety Policy

FFCEL is committed for continual improvement in OH&S management and performance. We endeavor to ensure these through Company Employees consultation & participation, elimination of hazards, reduction in OH&S risks and fulfilling applicable legal & other essential requirements. It is our Commitment that Occupational Health & Safety Company Employees remains an essential business requirement in FFCEL Operations and Support Services. We resolve to provide safe and healthy working conditions to prevent ill health, incidents and injuries through corrective actions and pursuing OH&S Objectives.

FFCEL Wind Power Project Summary

Capacity

49.5 MW on Build, Own, Operate (BOO) basis

Location

Jhampir, District Thatta

Land Area

1,283 Acres/5.3 Sq. Km through Sub-Lease Deed with AEDB

Wind Turbines

Nordex $77, 1.5 MW HCV x 33 WTGs

Electrical System

Alstom, Pakistan, 22kV substal on & collection system, 132kV switchyard

Civil Works

Descon; Pakistan, 25 Towers as karachi + 100% Crane Availability

Project Cost

US$ 133.502 Million (Rs. 12.087 Billion)

O&M Cost

US$ 3 million/annum (Rs. 255 million)

Funding Plan

Debt 80% - US$ 106 million (Rs. 9 Billion) - by local banks only, Equity 20% - US$ 28 million (Rs. 2.4 billion), Debt terms - 10 years, Equity payback - 6 years

Levelized Tariff

US cents 15.332 / kWh (Rs. 14.965 / kWh)

Energy Production

143.6 GWh per annum (143.6 million units)

Project Life

20 years

Annual Net Profit

US$ 4.6 million or PKR 391 million

Guaranteed ROE

17% + Bonus Payment @ 10% of additional energy price

EPC Contractors

Joint consortium of Nordex & Descon with Joint & several liabilities. Nordex also acts as lead contractor

O&M Contractors

For 02 x years of warranty period & additional 03 x years. Joint consortium of Nordex & Descon with Joint & several liabilities

Applicable Policy

Policy for Development of Renewable Energy for Power Generation - 2006

Electricity Purchaser

NTDC through Energy Purchase Agreement (EPA)

GoP Guarantee

Issued by AEDB on behalf of GoP under Implementation agreement

Our Journey

  • 27 Feb, 2010

    EPC Contract Signed

  • 03 Nov, 2010

    Tariff

    FFCEL submitted petition on April 07, 2010. NEPRA announced tariff on August 10, 2010 & finally clarified on November 03, 2010

  • 28 Jun, 2011

    Financial Close

    After signing Land Sub-Lease, IA, EPA & Financing agreements

  • 07 Jul, 2011

    Site Handed Over for Construction Activities

  • 08 Jul, 2011

    Construction Start

    On opening LC for EPC contractors

  • 22 Oct, 2011

    First Foundation Excavation Commenced

  • 25 Dec, 2011

    First Foundation Construction Completed

  • 25 Jan, 2012

    First Wind Turbine Erection Completed

  • 21 Jul. 2012

    Last Wind Turbine Erection Completed

  • 22 Nov, 2012

    Construction Activities and Commissioning of all individual Wind Turbines and Electrical Equipment Completed

  • 24 Dec, 2012

    Inauguration of FFCEL Wind Power Project by the then President of Pakistan

  • 16 May, 2013

    Commercial Operation Date of FFCEL Wind Power Project

    After the completion of Reliability Run Test