Entrepreneurs de la bio

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Entrepreneurs de la bioéconomie
FBi/SITTM Technologies
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The bioeconomy a new economic cycle
Whats Next?
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Markets of the Bioeconomy

• Biofuels 80 B (potential Canada)
• Bioplastics 10 B (potential Canada)
• Pharmaceuticals 40 B (Canada)
• Nutraceuticals 100 B (world)
• Biopesticides 1 B (potential Canada)
• Food from the forest 675 m (actual)
• Consumer goods from forests 125 m (actual)

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Governments are promoting bioeconomy5-10 year
planning horizon

• Climate change is a recognized global issuelink
  to fossil fuels
• Country wide legislations compelling the use of
  biofuels
• Reduce carbon emissions
• Stimulate regional economies
• Clean air policies
• Municipal governments are getting involved to
  support community survival

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Scientists are promoting bioeconomy20 year
planning horizon
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Four presentations about entrepreneurship in the
bioeconomy

• Presentation 1 the financial argument
• Presentation 2 the academic argument
• Presentation 3 the corporate argument
• Presentation 4 the psychological argument

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Presentation 1 The financial argument

• Numerous bioproducts opportunities each with
  unique
• Rate of return on capital invested
• Capital investments 1-10,000,000
• Cash flow
• Equity/debt ratios
• Private and public financing
• Business plans
• Sustainability of resourceslong term procurement
  strategy
• Corporate structuring/accountability
• Payback period2-10 years

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Non Timber Forest Products
Opportunity Investment Return on Investment Jobs Created Risk Factor
Ground hemlock 200,000 5-10 gt20 seasonal Labour, accessibility of resource in the region
Fiddlehead ferns 25,000 50-75 gt10 seasonal Labour, market demand, buyer prices
Wild mushrooms 50,000 5-30 gt10 seasonal Labour, market demand, buyer prices
Wild blueberries 0 to 100,000 5-10 gt10 seasonal Labour, market access, available land
Birch syrup 50,000 50-90 3 seasonal Market demand, buyer prices
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Energy Sector Opportunities
Opportunity Investment Return on Investment Jobs Created Risk Factor
Biodiesel 2,000,000 25-50 5 full-time Feedstocks and markets must be secured
Energy crops and natural fibres variable 5-15 Part time Needs to be supported by local research to assess productivity
Creating energy conservation communities 100,000 10-30 2 full time Need to secure subsidies for start up
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The wild side
Opportunity Investment Return on Investment Jobs Created Risk Factor
Cultivation of specialty plants (marijuana) in mine shafts 2,000,000 5-15 5 Must be associated with operating mine or must be dry shafts
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Presentation 2 academic argument

• To private sector Small scale, decentralized
  bioeconomy businesses are emerging
• To governments Foolishness is the act of
  repeating the same mistakes while expecting
  better outcomes
• To NGOs New approaches based on the
  democratization of knowledge are emerging because
  the most critical energy decisions will be made
  at Home Depot stores at 1017 on Saturday
  mornings

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Presentation 3 corporate argument

• Lets invent Maudit Bon Monde Inc (MBMI)
• 100 shareholders
• Bioeconomy business
• MBMIs First Shareholders Meeting
• Two investment opportunities
• Now at 10.00/share
• Later on the presentation at ?/share (my
  choice).

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MBMIs First Shareholders Meeting

• Lets invent Maudit Bon Monde Inc (MBMI)
• 100 shareholders
• Our goal increase shareholder value to 1 B
  within 5 years
• Our vision capitalize on trends in the
  bioeconomyparticularly energy sector
• Our values the bioeconomy can be used to
  generate profit while benefiting humankind
• Goal of meeting find market focus, technology
  implementation strategy

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How to position MBMI energy

• CIPO 1080 patents on biomass transformation
• Google search
• 15,200,000 hits on biomass
• 6,220,000 hits on biofuels
• 850,000 hits on bioenergy solutions
• Bioeconomy is being introduced

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What we have to do to be credible

• Outstanding management team with accountabilities
• Protection of Intellectual Property
• Enough cast to support cash flow requirements
• Regulatory issues-labor, environment, electrical
• Shortest distance between a good idea and making
  money

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Hubberts Peak is ushering bioeconomy

• The amount of oil under the ground is finite
• Pre-peak rapid rise discoveries
  infrastructure
• Post-peak rapid decline resource depletion

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Energy facts

• One barrel of oil 6.1 Gigajoules--10/GJ
• One car/light truck 34, 43, 52 GJ/year
• Steel fabrication 18 GJ/tonne
• Paper fabrication 24 GJ/tonne
• One dry tonne of biomass 18 GJ
• Panicum (switchgrass) 8/GJ
• One house 116 GJ/year
• Space heating 70 GJ
• Hot water heating 25 GJ
• 4 of Canadas energy comes from biomass

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Overview of biofuel technologies

• Fermentation (Corn, woodethanol)
• Combustion (all biomass types)
• Gasification (all biomass types)
• Pyrolysisbio-oil
• High temperaturesyngas
• Catalytic conversion to methanol, biodiesel,
  ethanol
• Transesterification process-fats to biodiesel
• Wood pellets, chips

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Bioeconomy market failures (things we dont want
MBMI to do)

• IPO syndrome-they will buy it because its green
• To access markets, bioproducts (bioenergy) must
  be
• Cost-effective in comparison to fossil fuels
• Trouble-free for consumers
• Be culturally acceptable
• Have the same distribution infrastructure as
  fossil fuels
• Commoditization of feedstocks
• Must underwrite less than two of the above risk
  factors

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Technology size-where is there potential for
revenues?

• Large scale
• Address large markets, own and operate green
  energy technologies
• E.g Atikokan Generating Station
• Small scale
• Fit technology to end users, sell and/or license
  technology
• E.g. small scale biodiesel manufacturing

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Stick it to the ManTM

• The Frankentank v.2

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The Frankentank v3

• Patent pending (CIPO)
• ESA/CSA pending
• 220 V, single-phase
• 250 L batch in 8 hours
• 2 hours hands-on-time
• Dry-wash technique
• Methanol recovery
• Spill containment

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A few Frankenthoughts
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Market opportunity

• Permit fuel/users to invest in technology to meet
  their needs/regional needs
• Reduce transport costs of biomass
• Take advantage of
• Emerging gasification
• Emerging biodiesel
• Emerging biooil technologies

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Business opportunities social entrepreneuship

• Development of technologies to fit the
  Democratization of Energy/Knowledge
• Deployment and operations of small scale
  technologies
• Working with communities to support their needs
• Managing the development processthere is no
  consulting firm out there that that can provide
  the ultimate consultant out there
• Project definition/management/delivery

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Why biodiesel is the buzz

• Diesel price increasing at 0.12 per L per year
  in Ontario
• 5 biodiesel target in Canada
• Culturally acceptable

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Diesel in Canada - 2004
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Viscosity-Temperature Curves
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The Biodiesel Reaction is simple
3) Purified Biodiesel
1) Waste Vegetable Oil
2) Raw Biodiesel (A) and Crude Byproduct (B)
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Quality Standard ASTM D6751
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Tailpipe Emission Reductions
US DOE National Renewable Energy LabLow Sulfur
Diesel vs. B20 (October, 2006)
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Energy Return on Investment
Energy Density of Diesel 36 MJ/L
Energy Density of Biodiesel 33 MJ/L
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Biodiesel Tax Advantages
Canada-Wide Road Tax on Diesel
BC B5-B50 15.0 /L exemption MB 11.5 /L
exemption ON 14.3 /L exemption QC 16.2 /L
exemption NS 15.4 /L exemption PEI 20.8 /L
in discussions AB 9.0 /L no exemption SK
16.5 /L no exemption NB 16.9 /L no
exemption NFL 16.5 /L no exemption YK 9.1
/L no exemption NWT 7.2 /L no exemption NU
9.1 /L no exemption
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Long term business strategy

• Develop market for product 5 continents
• Create a distribution system for Stick-it-to-The
  ManTm technologies
• Secure partnerships to develop new
  technologies/products
• Acquire companies with complementary technologies
• Create manufacturing strategies worldwide
• New venture manage process for other
  businesses.

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Business opportunity managing the development
process on behalf of private sector/communities

• Idea to market
• Reducing technology risks
• Reducing market risks
• Finding the right talent to support small
  businesses
• Finding subsidies to support small businesses

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Psychological argument risk and benefits

• Goal is 1 B in value
• 75 grants and loans from governments
• Massive worldwide opportunities
• Great management team
• Current share value 10/sharebecause we still
  are not certain to have success

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Businesses are convergence of systems

• Resource
• Technology
• Markets
• Financial parameters
• Corporate structure
• Psychology (testicular fortitude)