Working Prototype~ 3 ton Pile

Biochar Production4 hours = ~100 lbs

November 1, 2011

Carbon Cultures

Jenny Knoth

Dan Schwartz

Jeff Canin

Demand Creation

Press Contacts: http://www.forestbusinessnetwork.com/9555/turning-slash-piles-to-soil-benefit/#comment-3974

Already lots of BUZZ about our tech and our product

How will users hear about it?List companies in adjacent markets.List influencers.List key trade shows.List key trends.Begin to assemble advisory board.

Customer Creation - Biochar

Took sample biochar to three gardening retailersSmaller high end marketLarger mainstream marketLarge scale landscape level supplier

Get the char into the hands of INFLUENCERS

Seattle Tilth Alice’s Garden

Customer Creation - Biochar

Smaller high end market

Bulk – customers buy by the pound = $2 wholesale, $4 retail

Larger mainstream market

Bagged or mixed in with compost – 1.5 cu yard bags, or smaller 2.2L bags (retailed at $6). Can’t be too messy. Needs labeling

Large scale landscape level supplier

Would maybe take by the truck load and mix on site. Would take material not thoroughly converted and chip to mulch. Would not talk price -

Customer Creation - Blanket

Fire Squad Testing – Really.

Get the blanket into the hands of INFLUENCERS

Burn Crews

We are learning how they operate and where this fits in or where we can break in.

Spoke with Biomass Manager from Hancock Forest Management Group:

sells biomass at $2.5 - $5 / green toncrews need to get at least $25/gt to break even

Cost of Demand Creation:So far – Free Press, lots of time and some gas money

Cost of Customer Creation:Educational/promotional material for RetailersProduct – free samples for InfluencersWeb space

Channel Cost vs. Selling Price? Biochar makes sense

Price of biomass removal – Current practice includes machine time, trucking costsThey need to get at least $25/gt – hauling 150 tons a day

Selling Price of biochar – Forest Service worker said they pay $1000 - $2000/ tonRetail quantity sells at $2/lb = ~$4000

Unknown costs that we are working on – Product licensing or certification through state or othersBagging, handling after the burn

Channel Cost vs. Selling Price? Biochar makes sense

Quantity needed

???

Usually $4-6 cu yard

Mixed in with soil

???Distribution thru third party e.g. SunGro

Certifications

bagging$2/lb or

$4000/t

Small Packages

???Distribution

To Retailers

$1000/t

To

$2000/t

High Quality

Bulk

$25/tBiomass

Removal

UnknownPricePriceChannelChannel

Landowners-Wood waste generators

Biochar user-Industrial

Biochar user -Retail Gardening

Landscape Designer

The Business Model Canvas

Distribution

C - SequestrationR.E.Credits

Landowners

Blanket sale/Franchise

Waste Removal

Air QualityImprovement

IP &Know How

Distributors

Personal Assistance

Direct Sale

Sale of Biochar

Wholesale

Retail

Franchise

Service For Waste Removal

Reliable Low CostChar source

Reduce Run Off

Increased SoilProductivity with

Lower inputs

Crew Training

Secure feedstock

EducationMarketing

RelationshipsWith

Landowners

Blanket Manufacturer

FieldOperation

CapitalFixed costs

Channel Hypothesis Still = B 2 B

WA DNR

Biochar user -Agricultural

BiocharAdvocates

People

Summary of the “Get Out”:

5 good face to face interviews: produced 4 good leads

Responses from the Forest Business Network to Dan’s posts7 in total all with some input relevant here but not actionable at this time

Left messages, missed business hours – etc.

Working mostly with biochar demand and customer creation

Biochar demand will help activate the biomass conversion side of the business model - biomass revenue is down and non-existent currently.

More “Getting Out” - follow up with messages left and cold contacts with the 2nd highest producer of char - Royal Oak, LLC.