g.e.t. smart fuels: general bbiodiesel
TRANSCRIPT
WTIA Smart Biofuels PresentationJune 2010
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
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)
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
5
RESTAURANT SERVICES BUSINESS
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
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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
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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
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BIODIESEL BUSINESS
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
SUSTAINABLE COST ADVANTAGE
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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
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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
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
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BOARD & ADVISORS
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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