g.e.t. smart fuels: general bbiodiesel

13
WTIA Smart Biofuels Presentation June 2010

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Page 1: G.E.T. Smart Fuels: General Bbiodiesel

WTIA Smart Biofuels PresentationJune 2010

Page 2: G.E.T. Smart Fuels: General Bbiodiesel

OVERVIEWGeneral Biodiesel Seattle (GBS) is the Leading Waste-to-Energy Biofuel Company in Washington

Two Operating Segments:

o Used Cooking Oil (UCO) Recycling Business (Restaurant Services)

o Low Carbon Fuel Production (Biodiesel)

Significant Growth in Both Businesses in 2009 and 2010

2

Page 3: G.E.T. Smart Fuels: General Bbiodiesel

0102030405060708090

100

WA LCFS(gCO2e/MJ)

(5)

20

45

70

95

120

RCO Biodiesel

Cellulosic Ethanol

Natural Gas

Soy Biodiesel

Petro Diesel

Electricity

California LCFS (gCO2e/MJ)

MARKET POSITION – LOW CARBON FUEL

Business Model is Proving to be the RIGHT Model for Biofuels:

o Market is Moving to “Low Carbon Fuels”

o US EPA, CARB and WA Dept of Ecology and EU all agree thatRCO biodiesel is one of the lowest carbon fuels made

3

RCO Biodiesel has

an 80% to 86%

Carbon Reduction

versus DieselGB

FUEL

GB

FUEL

GB

FUEL

0

1000000

2000000

3000000

RCO Biodiesel

Soy Biodiesel

Sugarcane Ethanol

Corn Ethanol

Petro Diesel

U.S. EPA(gCO2e/mmBtu)

Page 4: G.E.T. Smart Fuels: General Bbiodiesel

December 2009: EPA announces it will regulate CO2

Transportation is…

o The largest source of CO2, which is the most prevalent GHG

o Accounts for 29% of total U.S. GHG emissions

o Fastest-growing source of U.S. GHGs, accounting for 47 percent of the net increase since 1990

WHY LOW CARBON FUEL IS IMPORTANT

Page 5: G.E.T. Smart Fuels: General Bbiodiesel

5

RESTAURANT SERVICES BUSINESS

Page 6: G.E.T. Smart Fuels: General Bbiodiesel

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Q108A Q208A Q308A Q408A Q109A Q209A Q309A Q409A Q110A Q210B

Quarterly UCO Collection

6

o Consistent, Reliable, Branded Recycling Solution

o Customer Service Innovation, Fixed Cost Optimization and Economies of Scale

o Providing Collection Customers with the Ability to Brand Their Carbon Reduction Efforts through UCO Recycling – GBS “GreenPartner” Program

ACCELERATING GROWTH

Accelerating Growth In 2010

Page 7: G.E.T. Smart Fuels: General Bbiodiesel

7

HOW WE SCALE RESTAURANT SERVICESGreenPartner Program Promotes Partnership with GBI

o GBS tracks and promotes partner carbon reduction from used cooking oil recycled into biodiesel

o Customers sign 10-year service agreements

o Target FSEs, Property Managers, Institutions

o Win-Win-Win for GBS and Customers

o Over 3.5 million pounds of CO2 saved by GreenPartners in 2009

Page 8: G.E.T. Smart Fuels: General Bbiodiesel

8

BIODIESEL BUSINESS

Page 9: G.E.T. Smart Fuels: General Bbiodiesel

9

General Biodiesel Offers a Highly Unique Value Proposition to Fuel Customers:

o Locally sourced recycled waste streams, produced locally and sold locally

o Lowest carbon fuel readily available today

o ONLY Waste-to-Energy transportation fuel available in many areas

General Biodiesel is Extremely Well Positioned in the Fuel Market

UNIQUE VALUE PROPOSITION

Page 10: G.E.T. Smart Fuels: General Bbiodiesel

SUSTAINABLE COST ADVANTAGE

10

Gross

Margin

Production Cost

of Soy Biodiesel

Market Price of

Biodiesel

GB Fixed Production Cost of Biodiesel

on Captive Feedstock at 3 MGY Scale

Cost

Benefit of

Captive

Feedstock

Page 11: G.E.T. Smart Fuels: General Bbiodiesel

11

Yale Wong, Chairman & CEO

o Founder and CEO of Compass Communications (10 years)

o Costco (6 years)

Cameron Hewes, President & CFO

o 11 Years Investment Banking & Private Equity Experience

Hoby Douglass, Director of Sustainable Business Development

o 20 Years Sales, Marketing and Brand Development in Manufacturing, Technology and Consumer Products

Zach Shelton, Director of Sales

o 15 Years Restaurant Industry Experience (Starwood Hotels, Kimpton Hotels, Consolidated Restaurants)

Josh Haney, Chemist

o 7 Years Pharma, MedTech & ISO 9000 Manufacturing Experience, 10 Patents

MANAGEMENT

Page 12: G.E.T. Smart Fuels: General Bbiodiesel

Board of Directors

o Yale Wong, Chairman & CEO

o Gordon Gardiner, Swiftsure Securities

o Dean Allen, CEO of McKinstry Company

Advisory Board

o Kurt Manchester, VP, Bardahl Oil (80-year global business in petroleum additives manufacturing)

o Jerry Lee, CEO, Mulvanny G2 Architecture

o Jon Van Gerpen, Professor and Chair, Biological and Agriculture Engineering at University of Idaho, one of the top biodiesel academics in the U.S., started the National Biodiesel Education Program

Legal & Tax

o Davis Wright Tremaine&Stoel Rives, Legal

o RSM McGladrey, Audit & Tax

12

BOARD & ADVISORS

Page 13: G.E.T. Smart Fuels: General Bbiodiesel

13

Executing Against our Plan

o Vertical Integration Allows us to Manage Absence of the Tax Credit

o Rapidly Growing Captive Feedstock

o Growing Customer Base for Biodiesel – Demand is Strong for Locally Produced, Recycled Product

o $2MM Run Rate and Growing Rapidly

GBS is Extremely Well Positioned in its Markets

o 1 of 2 Consistently Operating Plants in WA

o Only Operating Plant in Washington Using Recycled Feedstock = Lowest Carbon Fuel in the Market

The Macro Environment Continues to Move in Our Direction

o Gulf Oil Spill

o Energy Security Remains Highly Visible US Trade Deficit Driven By Oil Imports

o Low Carbon Fuel Standards CA, OR, WA, BC

WELL POSITIONED FOR CONTINUED GROWTH