Frequently asked questions

Our investment products are quite simple, but not easy. That is why we’ve listed the most frequently asked questions on this page. Can't find your question on this list? Please feel free to drop us a line and we'll get back to you as soon as we can.

General

Project Pongamia

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General

Corekees is a sustainable investment platform. We believe that investing in sustainability, and making a healthy return, should be possible for everyone. That's why we fund profitable sustainability projects together with private investors. Thanks to the money we make available, these projects increase their impact. The projects' proceeds flow back to our investors in the form of yield so that they too are rewarded for their efforts.

As a company, we want to make as big a positive impact as possible. The best way to measure this is through the United Nations Sustainable Development Goals. These goals define 17 sustainable development objectives to promote prosperity while protecting the planet from climate change. Corekees contributes to 9 of the 17 goals:

(#2: No Hunger) Due to the growing world population, the demand for meat and soy is increasing. As a result, more and more land is being deforested in South America. Project Silva's Silvopasture farming method prevents further direct or indirect land-use change (ILUC), provides reforestation instead of deforestation and ensures the continuity of food production.

(#7: Affordable and Sustainable Energy) The crude oil from the nuts of our Pongamia trees are qualified as Hydrotreated Vegetable Oil (HVO) or Renewable Diesel. Once refined, this green renewable diesel is cleaner than fossil fuels and itself cleaner than conventional biodiesel.

(#8: Fair Work and Economic Growth) In the reforestation area of Project Silva in Paraguay, all local workers are paid above the local minimum wage. They are also provided with high-quality facilities to work and live. This is an essential part of the company's philosophy.

(#9: Industry, Innovation and Infrastructure) In our reforestation area on the Rio Paraguay river, the border between Brazil and Paraguay, modern agricultural methods are applied. In addition, facilities are being developed to press the nuts, and ports are being built from which the raw Pongamia oil is shipped to refineries. Our oil is then used for sustainable transport, which results in a large reduction of CO2 emissions.

(#11: Sustainable Cities and Communities) Cars, trucks and ships can be powered by 100% renewable fuel. Aircraft are certified to fly on a 50/50 renewable diesel blend. The whole process from refining to the use of HVO fuels and the permanent CO2 compensation of the trees has a positive climate impact compared to the use of fossil fuels. This means that more CO2 is compensated by our Pongamia trees than is emitted by oil in its entire life cycle.

(#12 Responsible Consumption and Production) Reforestation and expansion of cattle land naturally recreate roads. Once the trees are planted, they do not require fertilization or intensive maintenance (such as watering). At the same time, the cattle eat from the grass next to the trees and from the protein that comes from the nuts of the trees. The shell of the nuts can also be used as natural manure, for example, to fertilize the trees. This method is called: Silvopastoral Agriculture which means that the land is used for trees and cattle.

(#13: Climate Action) Our Pongamia trees were only planted on marginal land deforested more than 10 years ago. Therefore, Project Silva involves effective reforestation. No additional deforestation occurs, and the cattle that already walked on this land continue to use it. Therefore there is no Indirect Land Use Change. Furthermore, the roots of the Pongamia tree give nitrogen to the soil. This provides natural fertilization, which enriches the soil. Because the trees also provide shade for the grazing cattle, the land is used more efficiently than land without trees.

(#15: Living on the land) The indigenous inhabitants of the Paraguayan Chaco are directly involved in Project Silva. The cutting and planting of trees create local employment, and the provision of their land also provides additional income for local farmers.

(#16: Partnership to achieve goals) Corekees Foundation only enters into partnerships with sustainable organizations and parties with good intentions. Therefore we have chosen Investancia as our Premium Partner. Investancia is a specialist in the field of sustainability, reforestation and oil in Latin America. Furthermore, we work together with people and organizations who pursue the same goals and ambitions. Examples are SHV Energy, Climate-KIC and GoodFuels.

The AFM regulates the Dutch financial markets and protects investors and organisations. For some (financial) products, a license is required. Stichting Corekees offers bonds, which are considered (financial) securities by Dutch law. There is an exception to the ban on offering these (Article 3:5 of the Financial Supervision Act). An investment in securities is exempt https://www.afm.nl/nl-nl/consumenten/themas/advies/voorbereiden/vrijstelling) from the prospectus obligation if the total counter value of the securities offered is less than €5 million, calculated over a period of 12 months.

These offers however, must be reported to the AFM through an information document. We have done this, and you can read all about it here.

When you invest at Corekees, your investment is directly linked to you. As soon as you pass away, Dutch inheritance law comes into effect. Your Corekees investment is then part of your inheritance. We cannot and should not do anything with it on our own.

In practice, your next of kin or your written will shall appoint an executor who will be responsible for the settlement of your will. For this person - and your next of kin - it is useful if you have a note somewhere about your investment at Corekees. When your executor reports to us, we will work with him or her to handle the settlement of your Corekees investment.

The Pongamia Tree

The Pongamia Pinnata tree is native to India and Australia. Here the oil of the trees has been used as lamp oil for a thousand years. A little shorter ago, researchers started selecting specific genetics to cultivate Pongamia trees commercially. From the nuts of the trees comes a non-edible oil, and from the pulp, a by-product is used as protein food for people or livestock. Corekees' trees use selected genetics ('elite trees') widely used in Australia, the United States, and Paraguay. The trees are drought-tolerant, require no fertilizer, root quickly, are stable and, relatively soon after planting, have a high yield for many years. Elite trees result from a careful selection over many years, without any genetic modification; researchers have only brought together the strongest trees with the best characteristics. Just like nature does.

The Pongamia tree sucks CO₂ from the air, emits nitrogen as a natural fertilizer for the soil and produces nuts. These nuts have a moon-shaped shell. The core of the nut contains about 40% oil, the pulp that remains after pressing the oil is used as protein food for people, protein feed for livestock or as bio-fertilizer. The husks of the nuts are used as biomass. This means that the Pongamia tree is a tree crop with one of the highest yields in modern agriculture.

The crude oil from the Pongamia nut is a vegetable oil like any other (olive, peanut, soy, etc.). Where one type is suitable for eating, other types are suitable for other uses. The oil that comes from the nuts of the Pongamia tree is very suitable for producing green, renewable fuel. The refinery process converts the raw Pongamia oil into fuel as Hydrotreated Vegetable Oil (HVO). To make it technical:, HVO uses high temperatures and high pressure to break down the larger molecules from the vegetable oils into shorter hydrocarbon chains used in diesel engines. Renewable diesel is a "drop-in" fuel that can decarbonize existing diesel engines without changing the existing infrastructure.

For the production, planting and maintenance of the trees, we work together with Investancia. Investancia is the biggest Pongamia tree company in the world. The Investancia head office is located in Rotterdam. The tree farm and research centre (the 'Estancia') are located in Carmelo Peralta, Paraguay, next to the river that separates Paraguay and Brazil. Please visit investancia.com for more information.

The term of the Project Silva bonds is 20 years. After 20 years, the bond is redeemed. Corekees pays lease to the owners of the land where the trees are planted. In practice, these are almost always local cattle farmers. We pay these farmers to rent for the use of their land; the only thing we ask in return is that the farmers remove their cattle from the land in the first year after planting. After that one year, the cattle can return to the land because there is no risk of trampling on the trees. The trees will not be cut down and will continue to compensate CO₂, even after the 20-year term is over.

Yes, why should we do it otherwise? In addition to the reforestation benefits, the independent company MEO Carbon Solutions impacted the CO₂ and greenhouse gas emissions calculated. The trees offset CO₂ throughout the year. Even if you include the transport and refining of the crude oil and the fuel use, the total process offsets more CO₂ than it emits! Use the calculation tool to see how many flight hours you offset with the total number of trees you want to buy.

The land

The reforestation area is located in the province of Alto Paraguay in the northeast of the country, not far from the Rio Paraguay river. This river is the border between Paraguay and Brazil. The reforestation areas are accessible by unpaved roads in the Chaco or by boat from the Brazilian side. Investancia's tree farm also has its own airstrip for small planes. The river is wide enough for large cargo ships to dock just next to the reforestation areas to load our crude oil. A short distance upstream, there is a natural roundabout (a small island) where the ships can turn around, load our oil and transport it to refineries worldwide.

We don’t. Thanks to our activities, we actually increase biodiversity! We only plant on marginal land. This island has been deforested for more than 10 years and is not suitable for agriculture. The land is now used exclusively for cattle grazing, and our trees just add to that. The cattle don't eat from the trees, but they do enjoy the shade of the branches. In theory, we can plant 1000 trees per hectare. However, we only plant 250 per hectare so that there is space for the indigenous flora and fauna. The trees house many birds, and in the spring of 2021, Jaguars have been spotted for the first time in a long time!

Our initiative is called a reforestation program for a reason. All the trees we plant will remain in the ground even after the 20 years are up. Then local ranchers will graze their cattle among the trees, just as they did when they were Corekees. We only use land that was deforested more than 10 years ago and is marginal (=not suitable for growing food). This makes it an official reforestation project.

The young trees are grown in greenhouses on the tree farm. These greenhouses have a current production capacity of 1 million trees per year but will be scaled up to 5 million trees per year between 2021 and 2030. Methods are constantly being developed to increase capacity. The tree farm is located in an area where marginal land that was deforested +10 years ago is abundant. Don't hesitate to contact us directly if you would like to place a larger order of trees with us (>10,000).

Investing Project Pongamia

Each tree cost €20. one tree equals one bond. Of this, €8.90 is used to purchase the tree's genetics and to plant the tree. For the first harvest, the trees and reforestation areas are kept in optimal condition. This costs €3,60 for the first four years, which is already included in the purchase price of the tree. After these 4 years, we subtract the maintenance costs of the following year from the revenues of the oil and protein. Furthermore, we charge €3,40 for overhead costs (personnel, legal and marketing) and €3,10 for administration, transaction and conversion costs (from Euros to Dollars). €1,00 per tree remains as a management fee for Corekees.

We have opted for a purchase contract with a fixed price per kilogram of nuts. This is so that we can offer our investors a certain security in the return. Our purchase contract states that if "market prices rise or fall significantly due to, but not limited to, unforeseen circumstances..." We can renegotiate the price or terminate the contract. Thus, we retain the ability to respond to any inflation. However, our expectation is that this renegotiation will not come from inflationary increases, but rather, for example, from increases in the price of the green oil (HVO) that our trees produce.

Your bonds are purchased under Dutch law. Because they are bonds with redemption and interest, they are part of your assets (box 3). In the Netherlands, tax is only levied on assets above a limit of €50,000 ($59,400). If your assets are lower than this, you do not have to pay wealth tax, and you do not even have to file a tax return. Is your capital more than €50.000? Then a cumulative tax is applicable. Through this link, you can read all about it and see what percentages apply to you. Do you still have questions about this? Please contact us.

Every quarter we give an order to our reforestation partner with how many trees we want to plant. Each tree you invest in is part of a batch. Batches are a few thousand trees in size. All trees in the batch are harvested and pressed at the same time. Of course, we cannot keep track of whether your tree has produced more or fewer nuts than your neighbour's tree. Therefore, we pay each bondholder proportionally to the number of trees you keep within a batch. This has the advantage that the production and the payout are averaged over those few thousand trees.

Each bond is equivalent to one average tree of the batch. The trees are mature in the 7th year after planting. In that year, we will start paying back €20 per tree. The repayments will be spread over the rest of the 13 years after that. The rest of the income coming from the nuts is a variable interest. Until the 7th year, you only receive this variable interest. This is paid from the year that you can harvest (year 3 or 4) and all the years after that. From year 7 until year 20, you will receive redemption + interest. We will transfer the repayments and interest to your bank account, which is known to us.

Yes, shortly after the harvest time. The harvest takes place in November/December. We have signed an ongoing purchase contract that allows us to sell the nuts directly at a fixed price per kilogram of nuts. The return of the first harvest was paid out at the end of 2021. Return payments are always announced by e-mail to the relevant bondholders. In that email, we tell them about the realization of the return and any particularities of that harvest year.

Trees are a product of nature. Therefore, there is always a risk of disappointing crop yields or other setbacks. If this happens, it will affect the redemption and/or interest of that year. We will pay out the missed redemption proportionally over the remaining years of the bond. As Corekees, we don't get paid either (except for the initial fee) if you don't get paid. We are, so to speak, in the same boat.

RISKS PROJECT PONGAMIA

The first year is crucial in the development of a healthy tree. In that year, the trees are planted in a greenhouse and repotted to a larger pot. After 3 to 6 months, the trees are laid to rest under shade cloth and planted in the ground after 6 to 9 months - depending on season and weather. This is the crucial period for the tree but the responsibility of our reforestation partner. If a tree does not survive this period, it plants a new tree. After the first year, the trees are in the ground and care such as watering or fertilizing is no longer necessary. The trees are no longer guaranteed. Your tree is part of a batch of a few thousand trees, and the revenues are shared equally. If several trees do fall, it will hardly be noticeable in the harvest yields.

We work with an agricultural product. This means that an exact prediction is impossible. Nature cannot be predicted.

Although the Pongamia tree has been extensively researched and developed scientifically, the concept of the Pongamia tree and its oil (Hydrotreated Vegetable Oil) is relatively young. Unforeseen circumstances like frost or long periods of drought can negatively influence the production of the trees. Read all about the risks in our information document.

Our reforestation partner Investancia has registered its subsidiary in the Paraguayan Chamber of Commerce and meets all the necessary permits and legal requirements. They sell the protein feed to local farmers and the crude oil to big (international) oil companies. Even in political unrest, it is unlikely to affect our business operations as we adhere to all regulations and laws set by the local and national governments. Consult our brochure for more political risks.

The 'tree factory' we do business with is located on the 'Rio Paraguay' - the river that separates Brazil and Paraguay and flows into the Atlantic Ocean near Buenos Aires. The Rio Paraguay is, in fact, the artery for our crop yields. Buenos Aires, however, is still more than 1500 kilometres from our trees. The river itself, therefore, has no direct threat from a rising sea level. It does face the threat of erosion. This is dealt with by building 'quay walls' in the period when the river is at its lowest so that the waves of passing traffic do not slowly erode the ground.

Project Pongamia Subscription

You can certainly save for your grandchild. You can do this by independently saving trees monthly and sharing the proceeds or contributing directly to your grandchild's trees. The 'transfer fee' that normally applies to transferring trees/bonds to another name does not apply when the trees are transferred from (grand)parents to (grand)children. Not sure what is best for your situation? Please contact us to discuss this.

You decide what happens to the trees once your child turns 18. You can stop the subscription and enjoy the return on the trees for another 20 years, or you can continue to save if it suits you. There is no fixed end date attached to the subscription. The 'transfer fee' that normally applies to transferring trees/bonds to another name is not applicable if the trees are transferred from (grand)parents to (grand)children.

You save for trees every month. We expect the first harvest in the 3rd or 4th year after your initial investment. The trees mature in the 7th year after planting. The first payouts are expected in the first year of harvest (generally year 3 or 4 after planting) and every year after that. The payments take place annually because the trees are harvested once a year. The return is paid out on the account number that is known to us. For the payment, you will receive a message from us.

If you no longer want to save for trees, the monthly withdrawals from your bank account will stop. Of course, all the trees you have saved at the moment of stopping will remain yours, and you will still benefit from the returns 20 years after the last tree.

For example, you save 1 tree every month for 10 years. Then you have saved a total of (10 x 12 trees =) 120 trees. After saving for 10 years, you stop the subscription. The trees you saved in year 1 are still yours for (20 - 10 =) 10 years. The trees you saved in year 10 are still yours for (20 - 0 =) 20 years. Calculate your return on the project page.

Frequently asked questions

General

The Pongamia Tree

The land

Investing Project Pongamia

RISKS PROJECT PONGAMIA

Project Pongamia Subscription

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About Corekees

General

The Pongamia Tree

The land

Investing Project Pongamia

RISKS PROJECT PONGAMIA

Project Pongamia Subscription

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