carbon culture final nsf i-corps presentation

15
Our technology converts forestry waste (slash) into biochar, a soil amendment. Carbon Cultures A team from the University of Washington Jenny Knoth, Lead • International Paper Co. for 6 years after M.S. • UW Forestry Ph.C. Jeff Canin, Mentor • Venture analyst, investor, and advisor • Cleantech EIR @ UW ~40 landowner-related conversations ~50 biochar users, channels, influencers

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Page 1: Carbon Culture Final NSF I-Corps Presentation

Our technology converts forestry waste (slash) into biochar, a soil amendment.

Carbon CulturesA team from the

University of Washington

Jenny Knoth, Lead • International Paper Co. for 6 years after M.S. • UW Forestry Ph.C.

Jeff Canin, Mentor • Venture analyst, investor, and advisor • Cleantech EIR @ UW

Daniel Schwartz, PI • ChemE Professor • Department Chairman

~40 landowner-related conversations

~50 biochar users, channels, influencers

Page 2: Carbon Culture Final NSF I-Corps Presentation

The Business Model Canvas - #1

Distribution

C - SequestrationR.E.Credits

Landowners

Blanket sale/Franchise

Waste Removal

Air QualityImprovement

Landowners-Wood waste generators

IPKnow HowDistributors

Personal Assistance

Personal Assistance

DirectSale

Sale of Biochar

Biochar userIndustrial

Biochar userRetail Gardening

Biochar userAgricultural

Biochar usersEnergy

Wholesale

Retail

Franchise

Service For Waste Removal

Low costReliable Char

source

Reduce Run Off

Increased SoilProductivity with

Lower inputs

Crew Training

Secure feedstock

Marketing

RelationshipsWith

Landowners

Blanket Manufacturer

BiocharAdvocates

PeoplePeople

FieldOperation

CapitalFixed costs

Low costSupply

Page 3: Carbon Culture Final NSF I-Corps Presentation

Carbon Cultures:Carbon Cultures: Scalable technology Scalable technology can connect two markets can connect two markets

New Markets – BiocharNew Markets – BiocharAgricultural and HorticulturalAgricultural and Horticultural

Soil AmendmentSoil Amendment

U.S. Agriculture$10 – 50 B/yr(≈ 60 Mt/yr @ >$160/t)

WA State Ag$100 – 700 M/yr

NW Organics/Hort≈ $ 100 M/yr

(@ $1000/t)

U.S. Forestry Slash≈ $1B/yr

(≈ 200 Mt/yr @ $5/t)

NW Slash≈ $100M/yr

Ready Partners≈ $10M/yr

Existing MarketExisting MarketDisposal of Forestry SlashDisposal of Forestry Slash

costs landownerscosts landowners

Page 4: Carbon Culture Final NSF I-Corps Presentation

Carbon Cultures:Carbon Cultures: Scalable technology Scalable technology can connect two markets can connect two markets

New Markets – BiocharNew Markets – BiocharAgricultural and HorticulturalAgricultural and Horticultural

Soil AmendmentSoil Amendment

U.S. Forestry Slash≈ $1B/yr

(≈ 200 Mt/yr @ $5/t)

NW Slash≈ $100M/yr

Ready Partners≈ $10M/yr

Existing MarketExisting MarketDisposal of Forestry SlashDisposal of Forestry Slash

costs landownerscosts landowners

U.S. Agriculture$10 – 50 B/yr(≈ 60 Mt/yr @ >$160/t)

WA State Ag$100 – 700 M/yr

NW Organics/Hort≈ $ 100 M/yr

(@ $1000/t)

Page 5: Carbon Culture Final NSF I-Corps Presentation

Biochar UsersBiochar Users• Nurseries

• Industrial charcoal

e.g., Kingsford, Royal Oaks

• Organic farmers

• Composting firms

• Specialty Retail

• Ecologically Conscious Landscapers

Trusted AgentsTrusted Agents • Advocates

• Horticultural Educators

• Researchers

Getting out of the building to learn from…Getting out of the building to learn from…

Forest Waste Forest Waste GeneratorsGenerators

• Tribal

• Industrial

• Government

• The Nature Conservancy

Field trialsField trials

• Pack Forest Field tests

• U.S. Forest Service

• Yakama Nation

Page 6: Carbon Culture Final NSF I-Corps Presentation

Here is what we learned from…Here is what we learned from…

• Evidence for high value of biochar in nascent market• Minimum viable product needs emissions control• Education and research needed

“DNR will work to change the permitting required for technologies that can reduce emissions.”

- David Grant, WA Department of Natural Resources

• Minimum viable product needs emissions control

Page 7: Carbon Culture Final NSF I-Corps Presentation

Here is what we learned from…Here is what we learned from…

“Most of the biochar producers I have talked with are selling for $2,000/ton.”

- Jim Archeluta, U.S. Forest Service

• Minimum viable product needs emissions control• Evidence for high value of biochar in nascent market

Page 8: Carbon Culture Final NSF I-Corps Presentation

Here is what we learned from…Here is what we learned from…

• Evidence for high value of biochar in nascent market• Minimum viable product needs emissions control• Education and research needed

“If Terry Lyngso suggests it, I might adopt it for my garden.”

- Julie Day, Stanford Horticulturist

“People are ready to start thinking about the complex system of their soils. If biochar works, then great!” - Terry Lyngso, Lyngso Horticultural Materials

• Minimum viable product needs emissions control• Evidence for high value of biochar in nascent market• Education and research needed

Page 9: Carbon Culture Final NSF I-Corps Presentation

Biochar UsersBiochar Users• Education and research

needed for new market

• Big difference selling “true believers” vs.

“others”

• USFS pays $2000/ton for bulk biochar (wow!)

• Main channel is via composter/blender

Here is what we learned from…Here is what we learned from…

Forest Waste Forest Waste GeneratorsGenerators

• Burn permitting is getting tougher and more costly

• Smoke reduction highest value proposition

Field trials Field trials ✔ Pack Forest (several)

• Minimum viable product needs emissions control• Evidence for high value of biochar in nascent market• Education and research needed

Page 10: Carbon Culture Final NSF I-Corps Presentation

Revenue & Cost FlowsRevenue & Cost Flows

Carbon CulturesCarbon CulturesContractors - logging - piling - disposal

Contractors - logging - piling - disposal

OperationOperation

MarketingMarketing

Blanket& training

Blanket& training

Land OwnerLand OwnerContract for

Slash disposal

Contract for

Slash disposalBlanket

& training

Blanket& training

R&DR&D

Alone, this is not the basis of a venture backed business.

Page 11: Carbon Culture Final NSF I-Corps Presentation

Revenue & Cost FlowsRevenue & Cost Flows

Carbon CulturesCarbon CulturesContractors - logging - piling - disposal

Contractors - logging - piling - disposal

Ag UserHort User

Organic User

Ag UserHort User

Organic User

OperationOperation

MarketingMarketing

Blanket& training

Blanket& training

Land OwnerLand Owner

Amendm

ent Sales

Amendm

ent Sales

Contract for

Slash disposal

Contract for

Slash disposal

BiocharpurchaseBiochar

purchase

Blanket& training

Blanket& training

Composter/Blender

Composter/Blender

Bulk

purchaseBulk

purchase

Retailpurchase

Retailpurchase

R&DR&D

Page 12: Carbon Culture Final NSF I-Corps Presentation

The Business Model Canvas - #1

Distribution

C - SequestrationR.E.Credits

Landowners

Blanket sale/Franchise

Waste Removal

Air QualityImprovement

Landowners-Wood waste generators

IPKnow HowDistributors

Personal Assistance

Personal Assistance

DirectSale

Sale of Biochar

Biochar userIndustrial

Biochar userRetail Gardening

Biochar userAgricultural

Biochar usersEnergy

Wholesale

Retail

Franchise

Service For Waste Removal

Low costReliable Char

source

Reduce Run Off

Increased SoilProductivity with

Lower inputs

Crew Training

Secure feedstock

Marketing

RelationshipsWith

Landowners

Blanket Manufacturer

BiocharAdvocates

PeoplePeople

FieldOperation

CapitalFixed costs

Low costSupply

Page 13: Carbon Culture Final NSF I-Corps Presentation

The Business Model Canvas - Evolution

Distribution

C - SequestrationR.E.Credits

Landowners

Blanket sale/Franchise

Waste Removal

Air QualityImprovement

Landowners-Wood waste generators

IPKnow HowDistributors

Personal Assistance

Personal Assistance

DirectSale

Sale of Biochar

Biochar userIndustrial

Biochar userRetail Gardening

Biochar userAgricultural

Biochar usersEnergy

Wholesale

Retail

Franchise

Service For Waste Removal

Low costReliable Char

source

Reduce Run Off

Increased SoilProductivity with

Lower inputs

Crew Training

Secure feedstock

Marketing

RelationshipsWith

Landowners

Blanket Manufacturer

BiocharAdvocates

PeoplePeople

FieldOperation

CapitalFixed costs

Low costSupply

Page 14: Carbon Culture Final NSF I-Corps Presentation

The Business Model Canvas – Current Working Version

Distribution

Landowners

Blanket sale/Franchise

Waste Removal

Air QualityImprovement Landowners-

Wood waste generators

IP &Know How

Distributors Personal Assistance

Personal Assistance

Sale of Biochar

Biochar user -Retail Gardening

Landscape Designer

Biochar user -Agricultural

Wholesale

Retail

Franchise(long term option)

Reduce Run Off

Increased SoilProductivity with

Lower inputs

Crew Training

Marketing

RelationshipsWith

Landowners

Blanket Manufacturer

BiocharAdvocatesEducation

PeoplePeople

FieldOperation

CapitalFixed costs

WA DNR

Page 15: Carbon Culture Final NSF I-Corps Presentation

Next steps for Carbon Cultures…Next steps for Carbon Cultures…

- USDA SBIR submitted (May, 2012 decision)

- Competing in B-School Jones Foundation Milestone Achievement Awards ($25k).

- Company reforming as C-Corp. (Davis Wright Tremaine retained)

- Technology Alliance Innovation Showcase (January, 2012 in Seattle).

- License Option under negotiation with UW

- Emission control being added to technology