INVESTOR
PRESENTATION
Biomass Energy Enhancements,
LLC
Where Money Meets Idea
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$15,000,000 Financing
Biomass Energy Enhancements, LLC
Biomass Energy Enhancements, LLC (BEE) provides a technology that beneficiates biomass (all
herbaceous and woody biomass) by removing entrained salts, minerals, and other contaminants that
would otherwise preclude their use as a feedstock for solid, liquid and/or gaseous biofuels. The BEE
process also improves the bulk and energy densities of biomass. Our end product has an equal or better
BTU value than coal with much fewer toxic emissions than coal produces. BEE will offer systems
ranging in size between one ton per hour and 20 tons per hour to the biomass fuels and chemicals
industries.
Solving the Industry’s Problems
The use of biomass-derived fuels is substantially constrained because:
• High moisture content and low bulk and energy densities of biomass are too low to justify high handling and transportation costs
• Entrained salts, a high volatile content, and low energy density of biomass precludes its use as a solid boiler fuel
• Available biomass drying technologies use a lot of energy and, do not remove entrained salts and minerals.
Millions of tons of biomass are discarded as waste each year
• Decaying biomass produces methane, a potent greenhouse gas
• Typically 50% to 70% of trees harvested for lumber are wasted
• Approximately 50% of the energy content of food crops is not utilized
The Solution: Biomass Energy Enhancements
Market Opportunity
Market Opportunity
B.C. Hog Fuel
2.7 Tons @ 10%
Moisture content
$60.00/Ton x 2.7 Tons = $162.00
2.7 Tons @ 12%
moisture content
6.7 Tons of Water
0.6 Tons of
Volatiles and Salts
As Rec’d
Beneficiated
D (%)
LHV (BTU/lb.)
2687
9234
243%
M/C
70%
12%
71%
Sodium (ppm)
4552
426
91%
Chloride (ppm)
5053
406
92%
Sulfate (ppm)
3928
481
88%
Energy Content of Beneficiated Biomass: 9234 BTU/lb. x 2000 lb./Ton x
2.7 Tons = 49.9 MMBTU
\
Energy Content of Volatiles Removed from Biomass (Recovered and
Recycled) 53.7 – 49.9 = 3.8 MMBTU
10 Tons @ 70%
Moisture content
Energy Required to Beneficiate Biomass: 250 BTU/lb. x 2000 lb./Ton x
10 Tons = 5 MMBTU (from boiler)
Bark and Sapwood
Forestry Residues
$5.00/Ton x 10 Tons = $ 50.00
Energy Stored in As Rec’d Biomass: 2687 BTU/lb. x 2000 lb./Ton x 10
Tons = 53.7 MMBTU
Market Size
Total Available
Market
Solid Fuel
Market
Liquid Fuel
Market
Market opportunity exceeds $1 Trillion Worldwide
Exceeds $135 Billion Worldwide
US and Canada exceeds
$265 Billion
Distributed
Energy
Market
World Estimates exceed $300 Billion
Competitive Advantages
Core Strengths & Advantages
•
Disruptive technology affords first-mover advantage
•
Ease of manufacturing allows multiple suppliers and vendors
•
Technology and products protected by an array of pending patents
•
Technology beneficiates all varieties of plant-based biomass
feedstocks equally well
•
The BEE is the only technology that allows customers to access
contaminated low-cost and plentiful biomass stockpiles
•
Technology lends itself to international licensing
Product / Tech. Components
•
Proprietary process algorithms and controls - The BEE technology employees well understood biomass pre-treatment
techniques in various combinations to achieve the desired results in the most economical way possible. A customized
process algorithm (recipe) is provided to the customer at the time of purchase. The algorithm is encoded directly into the
controls system of the platform prior to delivery and installation.
•
“Continuous batch” bioreactors - BEE’s proprietary automated bioreactor feed system assures the reliable operation of its
bioreactors so that a near continuous stream of beneficiated biomass is produced with consistent quality.
•
Rapid depressurization system - The BEE process typically employs at least three distinct biomass pre-treatment steps.
One of these steps is referred to as “steam explosion.” As its name implies, the technique requires that the bioreactor be
depressurized as close to instantaneously as possible in order to achieve optimum results.
•
Dewatering and densification - After the beneficiated biomass leaves the bioreactor, it undergoes a process of dewatering
and densification. The degree of dewatering and densification is established by the customer’s specification. In some
cases, the customer may elect to compact the beneficiated biomass into extremely dense pellets or briquettes.
•
Water/solvent recovery and contaminant disposal - BEE’s objective is to offer a system to that meets the definition of
“zero discharge.” This stringent standard requires that essentially all contaminants recovered from the biomass are
removed from the liquid effluent stream prior to discharge. In fact, the BEE system produces water that can be surface
discharged without the need for special permits. The recovered contaminants are encapsulated for routine disposal in
regular landfills.
Core Technologies
Features
Scalable – Systems available from one ton per hour (output) to 20 tons per hour, or
larger
Customizable – Our modular design allows us to offer the tailored solutions that our
customers need
Flexible – All of our systems are delivered with preprogramed algorithms (“recipes”)
designed according to the customers specifications
Reliable – The BEE systems will be built by qualified manufacturers from the best
materials and components. Our systems will likely operate for many thousands of
hours with only minor maintenance. Installation and major maintenance services
are available.
Efficient - BEE’s proprietary system is extremely efficient. The BEE process uses less
than half the energy that conventional thermal biomass dry technologies use to
remove moisture plus, the BEE system removes entrained salts and other
contaminant along with the unwanted moisture.
Clean – The water removed from biomass feedstock through the BEE process is
suitable for surface discharge. Discharged water will satisfy all governmental
regulations. The system will capture and destroy volatile organic compounds and
will separate and encapsulate contaminants extracted from the biomass for landfill
disposal.
Intellectual Property
•
“Midstream, flexible method for beneficiating many varieties of biomass into an end product suitable for use as feedstock for
various types of energy production”; Philip James Scalzo and Carleton Drew Tait, US Provisional Patent Application No. 61/867,952,
Patent Pending
•
“A transportable system for converting biomass residues into electricity and biochar/activated carbon”; Philip James Scalzo and
Carleton Drew Tait, US Provisional Patent Application 61/971,329, Patent Pending
•
“An enabling process for the use of contaminated biomass for downstream energy production”; Philip James Scalzo and Carleton
Drew Tait, US Provisional Patent Application 61/974,876, Patent Pending
•
“A solid fuel consisting of beneficiated biomass and coal suitable for combustion in existing boilers”; Philip James Scalzo and
Carleton Drew Tait; US Provisional Patent Application 62018830, Patent Pending
•
Have now completed filing 19 U.S. Patents with over 300 claims and PCT International Patent protection
Marketing Strategy
Product Strategy
Pricing Strategy
Promotion Strategy
•BEE’s primary objective is to
get its proprietary
technology into the market
as quickly as possible so that
it may enjoy “first mover
advantage.” The fact is that
no other company or
technology (as far as we
know) is as focused on the
“midstream” biomass
beneficiation market as is
BEE. BEE’s control system
allows the operator to select
both the chemistry and
operating conditions
necessary to produce a
beneficiated biomass that is
best suited for the
customer’s downstream
application.
•Pricing will be based on the
customers avoided cost
based on the processed
biomass vs. unprocessed
biomass and the benefit
created for that market or
customer. The price
compared to the current
estimated manufacturing
costs, it has been
determined that in all
studied cases we would
enjoy a 100% mark-up over
cost. This pricing strategy
would allow the capital
recovery for a customer to
be achieved in between 3 to
5 years based on these case
studies.
•Our strategy is to focus on
the markets that have
exhibited the highest return
on investment for the
customers that utilize BEE’s
process. This will create a
foothold into that vertical
market and allow us to build
on the momentum created
and capture the market
share. This will mandate BEE
as the “Go To” supplier for
Enhanced Biomass.
Geography of
Distribution
•The potential markets are
diverse and global as almost
every downstream biomass
based process, to varying
degrees, would benefit
substantially by using BEE
beneficiated biomass.
Key Milestones
Mar. 2014
Commissioning of 1
TPD Demonstration
Platform.
Mar. 2016
May 2015
U.S. Patents with over 300
claims and filing of PCT
International protection
Delivery, installation,
testing and acceptance of
the first 4 TPH Platform.
Sept. 2012
Jun. 2014
Jun. 2015
Establishment of
Kaysville, UT R&D
Facility
Formation of Biomass
Energy Enhancements,
LLC through the merger
of CTP Biomass
Technology Group and
North American
Biomass
First sale of a 4TPH
Platform
Management Team
Chas Fritz, CEO
Chas Fritz is a seasoned executive with a strong record of leadership and achievement in media and telecommunications CEO
Role, private equity, business development, sales and marketing, strategic planning, finance, business valuations, and
operations. Experience includes strong financial and Sales driven skills with an evangelistic ability to motivate and lead
organizations. Executive level contacts that is deep into the global media and telecommunications market. Accustomed to
highly responsible, results oriented positions with proven skills in Leadership, Management, Sales, Strategy- Development,
Team-building, Finance and Persuasive Communications. Strong Public experience as both Chairman of the Board and CEO
positions. Expertise in Mergers and Acquisitions, Alternative Energy Markets and Project financing. Ability to drive IP Licensing
and Technology Licensing.
Charles Hess, COO
Prior to becoming a founding partner of BEE, Mr. Hess was Chief Operating Officer for North American Biomass, Inc. and Vice
President of Operations for EMB Energy, Inc. Has proven senior management experience in the private and public sectors
including: new business start-ups, business operations, corporate affairs, internal and external communications, public and
community relations, corporate contributions, government affairs, media relations, investor relations and administration. In
addition, he has outstanding communication skills with the ability to organize, motivate and lead a team to exceed set goals
and objectives. Mr. Hess has particular expertise in the organizing, drafting and implementation of corporate documentation,
contracts, financial, business and marketing plans.
Management Team
Philip J. Scalzo, CTO
Previous to BEE, Mr. Scalzo was Chief Executive Officer for North American Biomass, Inc. Mr. Scalzo’s long-standing expertise
in the energy industry place him at a top level of industry professionals. He has testified before Congress and written
numerous papers and articles about all aspect of energy utilization ranging from nuclear to biomass. He has 30 years in the
power sector and 10 years of direct responsibility for managing operations of a several billion-dollar fleet of energy assets.
Dr. Doug Van Thorre, Director of IP
Prior to becoming a founding partner in BEE, Dr. Van Thorre has been working exclusively in the research and development
area of the extraction and manipulation of carbohydrates for a broad range of renewable resource or “green chemistry”
applications. This research and subsequent discoveries led him to the founding a Company, Biorefining, Inc., in 2000, one that
is completely devoted to the maximum processing and utilization of annually renewable resources. At Biorefining, Inc., Dr. Van
Thorre was issued two patents and had fourteen patent applications pending.
Michael L. Catto, Vice President of Manufacturing
Mr. Catto brings strong leadership to BEE and extensive experience managing growth companies. Most recently, Mr. Catto was
the Executive Vice President of Operations for Biothera, Inc., a start up Biotech Company that has two INDs in Phase 2 trials.
Previously, Mr. Catto was President of Niro Atomizer Food and Dairy, Inc., a U.S. subsidiary of the Danish company Niro A/S. He
also managed his own Engineering and consulting businesses in which he specialized in engineering and operations related to
food, dairies, pharmaceuticals, and municipalities and worked internationally on numerous design/build projects.
Management Team
Drew Tait, Chief Science Officer
Previous to BEE, Dr. Tait was Chief Science Officer for North American Biomass, Inc. His previous experience included; Chief
Scientist, Triton Scientific, 2007 – 2012; Chief Scientist for the Energy Technology Center and Senior Scientist for the CBRNE
Center within the Oklahoma State University Multispectral Laboratories (UML), Virginia Beach, VA 2007 – 2010 and North Salt
Lake, UT 2010 – 2012; Chief Science Officer & Senior Vice President, Internal Research and Development, EMB Energy, North
Salt Lake, UT 2010 – 2012 and Chief Science Officer, US Biomass, Kaysville, UT 2011 – 2012 Dr. Tait’s broad range of dynamic
experience and education place him at the forefront of helping develop the BEE products.
Russell Taylor, VP of Marketing & Business Development
Mr. Taylor brings over 20 years of experience from the commercial finance arena. His strengths lie in his time management,
goal setting, presentation skills and his ability to motivate and manage people. He has a unique ability to create long term
relationships and work with all to obtain common goals. He is responsible for the development of strategic associations that
foster advocacy, investment and sales across all of the company’s technical and operational areas.
Prior to joining BEE, Mr. Taylor was a founder of North American Biomass, Inc.; Solar Nation Inc., and is also a managing
member of TFT Management, LLC. Over the past several years he has obtained funding in excess of $200 million USD for
commercial projects throughout the United States.
Projected Revenues
$655,367,465
$294,468,953
$119,938,141
$63,983,158
$15,650,000
Use of Proceeds
Category
Amount
COGS
$7,500,000
G&A
$3,000,000
Product Development
$800,000
Warranties
$375,000
Engineering
$600,000
Business Dev., Marketing, Legal, Investment Banker Fees
TOTAL
$2,725,000
$15,000,000
Updates
(since May 1, 2015)
• BEE has now progressed from a start-up company to a go-to-market business. The
Company has completed a full set of engineering documents with a best of breed
engineering/manufacturer firm, Munro Manufacturing (http://leandesign.com/)
• Partnered with Foster Wheeler (https://www.fwc.com/) a first-in-class site engineering
firm capable of world-scale projects;
• Partnered with a top equipment manufacture, Lee Manufacturing
(http://www.leecontracting.com/);
• Established a customer pipeline with an expectation of approximately 187 4TPH systems
over the next five years;
• Sixty-Seventy percent of the funds from the current offering of $15MM will be used to
build the first 3-4 units for the Company’s customers.