carbon culture final nsf i-corps presentation
TRANSCRIPT
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
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
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
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)
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
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
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
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
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
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.
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
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
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
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
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