BiocharBiochar ConsumersConsumers

$50 – 250 MM/yr$50 – 250 MM/yr

U.S. Slash≈200 MM

tons/yr

WA State≈5.8 MMtons/yr

Ready Partners≈2 MMtons/yr

U.S. AG≈60MMtons/yr

LandownersLandowners$0-10 MM/yr$0-10 MM/yr

WA State AG≈800Ktons/yr

Organic/Retail≈200Ktons/yr

Hypothesis: 2 Customer SegmentsHypothesis: 2 Customer Segments

Hypotheses: 1. C6 Systems will operate in a 2-sided marketHypotheses: 1. C6 Systems will operate in a 2-sided market

2. We will make money selling biochar2. We will make money selling biochar

LandownersLandowners Biochar ConsumersBiochar Consumers

Value Proposition Hypothesis…Value Proposition Hypothesis…

- Reliable low cost supply (- Reliable low cost supply (some customer evidencesome customer evidence))

- Reduced fertilizer/water inputs w/ Biochar (- Reduced fertilizer/water inputs w/ Biochar (some some datadata))

- Reduced Run-off- Reduced Run-off

- Landowners demand clean/safe/cheap waste - Landowners demand clean/safe/cheap waste wood removal ( wood removal (factfact))

Hypotheses: 1. C6 Systems will operate in a 2-sided marketHypotheses: 1. C6 Systems will operate in a 2-sided market

2. We will make money selling biochar2. We will make money selling biochar

Biochar UsersBiochar UsersAgriculture:Agriculture:What is the value of adding SOC?

What is the value of reducing fertilizer runoff? Nitrification?

How much per acre is spent on inputs?

What are biochar benefits worth?

Retail:Retail:What kind of soil amendments do your customers look for?

What benefit do you see from adding biochar to your product line?

What price range do you anticipate to sell biochar?

Advocates:Advocates:Describe what holds this market back?

Who are the early adopters?

What defines biochar quality?

Market Makers:Market Makers:What is the supply availability and pricing trends?

Getting out of the BuildingGetting out of the Building

LandownerLandownerWhat are they paying now?

What is the value of risk mitigation? (fire)

What is improved air quality worth?

Can our technology lengthen the burn season? (policy change)

What is the annual burden of waste removal?

Speak With Speak With Biochar UsersBiochar Users•Nurseries

•Community sponsored Ag

•Organic farmers

•Specialty Retail

•Ecological Conscious Gardeners

Learn from Trusted Learn from Trusted Agents:Agents:

•Advocates

•Market Makers - Today

Getting out of the BuildingGetting out of the Building

Speak With Speak With LandownersLandowners

•Tribal (on-going)

•Corporate (on-going)

•Government (on-going)

•NGO’s (on-going)

e.g. The Nature Conservancy

Perform Trial Burns on Perform Trial Burns on Customer Land - Customer Land -

•Pack Forest Field test

•Dept. Natural Resource

•Yakama Nation

The Advocate RetailerThe Advocate RetailerDon Larson, Assistant ManagerDon Larson, Assistant Manager

Common Ground Organic Garden Supply Common Ground Organic Garden Supply

and Education Center, a 501 (c)3 and Education Center, a 501 (c)3

““I think our Board would approve an order within two I think our Board would approve an order within two

weeks. I know a great speaker to develop an educational weeks. I know a great speaker to develop an educational

program around its use.” program around its use.” Key: Desire, No SupplyKey: Desire, No Supply

The Eco-Garden Designer/LandscaperThe Eco-Garden Designer/LandscaperPhone InterviewPhone Interview Key LearningKey Learning

Susan DamonSusan Damon - Role of Influencers - Role of Influencers

Alice’s Garden DesignAlice’s Garden Design - Biochar as part of gardener’s - Biochar as part of gardener’s

Seattle, WASeattle, WA portfolio…big mark-up.portfolio…big mark-up.

““Our customers would use biochar to sweeten soil, darken Our customers would use biochar to sweeten soil, darken

the soil, build soil carbon, and they’d also like knowing they the soil, build soil carbon, and they’d also like knowing they

are helping support forest health.”are helping support forest health.”

““Our customers would be willing to use it and pay more, Our customers would be willing to use it and pay more,

on my advice.on my advice.””

The Skeptical Institutional Grounds CrewThe Skeptical Institutional Grounds Crew

Key LearningKey Learning

- Again, role of influencers- Again, role of influencers

- Cost sensitive- Cost sensitive

- More conservative than UW- More conservative than UW

““We use minimum inputs, and match native plants to soil.”We use minimum inputs, and match native plants to soil.”

““We recycle most of our materials, and have good practices” We recycle most of our materials, and have good practices”

““Change would need to be cheaper.”Change would need to be cheaper.”

Julie DayStanford Horticulturist

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

Ted Tucholski

Stanford Grounds Manager

EVERY EVERY Landowner is enthusiaticLandowner is enthusiaticPhone Interviews + Visits + Commitment Letters

M. Reese Lolley Phil Rigdon

The Nature Conservancy Yakama Nation

EVERY EVERY landowner offers test sites and their fire crews.landowner offers test sites and their fire crews.

EVERY EVERY Landowner is enthusiaticLandowner is enthusiaticPhone Interviews + Visits + Commitment Letters

Wade Boyd

Sr. Vice President (ret.)

Longview FibreLongview Fibre

All industrial and private landowners face a problem with All industrial and private landowners face a problem with

slash and landing piles. It costs real money to treat slash slash and landing piles. It costs real money to treat slash

and burn landing piles.and burn landing piles.

Currently I have several easily accessible landing piles Currently I have several easily accessible landing piles

you can use for business development.you can use for business development.

The Business Model Canvas

Distribution

C - SequestrationR.E.Credits

Landowners

Blanket sale/Franchise

Waste Removal

Air QualityImprovement

Landowners-Wood waste generators

IP &Know How

Distributors

Personal Assistance

Direct Sale

Sale of Biochar

Biochar user-Industrial

Biochar user -Retail Gardening

Biochar user -Agricultural

Wholesale

Retail

Franchise

Service For Waste Removal

Reliable Low CostChar source

Reduce Run Off

Increased SoilProductivity with

Lower inputs

Crew Training

Secure feedstock

Marketing

RelationshipsWith

Landowners

Blanket Manufacturer

BiocharAdvocates

People

FieldOperation

CapitalFixed costs

Still don’t have enough facts…Still don’t have enough facts…

- Retail and wholesale pricing, optimal packaging- Retail and wholesale pricing, optimal packaging

talking to a market maker (talking to a market maker (todaytoday), buyers, retail stores, gardeners, ), buyers, retail stores, gardeners,

and and key gardening influencerskey gardening influencers from each segment from each segment

- Economic case for reduced inputs- Economic case for reduced inputs

talk to talk to academic expertsacademic experts, trade/advocacy associations, trade/advocacy associations

- Reduced Run-off- Reduced Run-off

talk to regulators, vegetable pre-processors.talk to regulators, vegetable pre-processors.

- Optimal model for serving landowners- Optimal model for serving landowners

talking about this dimension of talking about this dimension of problem with landownersproblem with landowners

and assess internal financial trade-offs.and assess internal financial trade-offs.

Hypotheses: 1. C6 Systems will operate in a 2-sided marketHypotheses: 1. C6 Systems will operate in a 2-sided market

2. We will make money selling biochar2. We will make money selling biochar