1. Putting Ontario Out Front: What the Green Energy
Act and the State of the Economy Mean to
Renewable Energy Development
Ontario Investment and Trade Centre Collaboration
Speaker Series 2009

2. Agenda
Who We Are and Where We Came From
Building Biogas in Ontario
Trends in Renewable Energy
Ontario: Opportunity & Challenges
How Ontario Investment and Trade Can Help

3. Who We Are
• A Toronto-based renewable energy company specialized in biogas
• Utilizes agricultural and food processing by-products in order to create baseload
renewable energy and organic fertilizer
• Developing a pipeline of projects, which will be owned and operated by the
company
• Targeted to have five industrial biogas installations closed and under construction
by end of 2009
• High calibre team with over 20 years of biogas commissioning and operating
experience
• Working with Krieg & Fischer, the world’s top biogas engineering firm with over
with 120 plants in operation
• Developed strategic relationships with government agencies and academic
organizations within Canada and several US States
• Backed by a Boston-based private equity firm with over US$4 billion of invested
and committed capital

4. The Early Days of StormFisher
• Started by three entrepreneurs from the Ivey MBA in 2006
• Began market research phase in summer 2006: RESOP was
in draft and we saw this as an opportunity for entrepreneurs
to get in
• Landed on biogas as best opportunity through a research
report we developed for Ivey & Ontario Centres of
Excellence The Silver Bucket
• Bootstrapped through to early 2008
• In February 2008, closed a $350 million funding partnership
with a Boston-based private equity company
Bas van Berkel Chris Guillon Ryan Little
President VP Finance VP Business
Development
• Finance, Engineering • Finance, Biology • New Venture Creation
• Stubborn • Cheap •“Big Picture” (i.e. can’t add)

5. StormFisher Today
Key Facts
• Projects in Active Development: 5
• Projects in Development Pipeline: 36
• Total Megawatts in Development Pipeline: 120 MW
Renewable Electricity Fertilizer Green Natural Gas Carbon Credits Organic Diversion
• Pipeline of over • Utilize Ag by- • Produce biogenic • Offset 15,000 • Divert over
120 MW of products to natural gas, tonnes of carbon 50,000 tonnes
clean, renewable produce high- reducing reliance dioxide per year per year of
electricity grade organic on fossil fuels at each facility organics from
fertilizer landfills at each
facility

6. StormFisher’s Biogas Process

7. Benefits of Biogas Production

8. Environmental Stewardship
• Substantially reduce
transportation distances as biogas
installations are strategically
located in food processing clusters
• Support the production of clean,
renewable energy and, in so
doing, improve air and water
quality
• Recycle valuable nutrients which
will be returned to agricultural
producers
• Decrease emissions of methane
gas, one of the most potent
Biogas is the highest-yielding form of energy production there is in
greenhouse gases, through the terms of carbon offsetting. This figure shows the full carbon
reduction of land filling and land lifecycle of biogas from digestion of by-products —the only form of
energy production that is actually net carbon reducing
application of organic by-products

9. Energy and Nutrient Cycle
Organic By-Product
Diversion
Divert high nutrient organic by-products
from landfills and provide an end-to-end
solution for manure management
Organic Fertilizer
Anaerobic Digestion
Distribution
Use anaerobic digestion to capture
Return nutrients to land from distribution biogas (~60% methane)
as high-grade organic fertilizer
Nutrient Pelletizing Methane Capture
Reduce greenhouse gas emissions from
Create organic fertilizer from nutrient
capturing methane from animal manure
rich digestate
and degrading of organic by-products
Clean Electricity and
Renewable Energy Credits
Natural Gas
Reduce greenhouse gases by reducing
reliance on fossil-fuelled energy Combust the biogas to create clean
production electricity or upgrade to pipeline grade
natural gas
Energy Distribution
Distribute electricity and/or natural gas
into the local supply grid

10. Agenda
Who We Are and Where We Came From
Building Biogas in Ontario
Trends in Renewable Energy
Ontario: Opportunity & Challenges
How Ontario Investment and Trade Can Help

11. Europe’s Success
• Over 4,000 facilities in operation,
predicted to exceed 20,000 by 2015
• 400 companies involved in biogas
development in Germany alone
• Biogas will account for 17% of
Germany’s electricity mix by 2020
• Well developed renewable energy
purchase programs throughout
Europe
• The model for Ontario’s Renewable
Energy Standard Offer Program
(RESOP) and proposed Feed In Tariff
(FIT)
“Three years ago in Germany companies like
StormFisher were less developed than you
already are, and today they are on the stock
exchange and have 300 employees.”
-Gerhard Klammer, GE Energy

12. Biogas in Denmark
• Denmark is where biogas in Europe began • Snertinge, Denmark
• Fewer, larger plants than Germany and • Heats three nearby villages
Austria; less focus on energy crops • Pig and cattle farm sludge, food and
• Started as a way to handle large amounts medicinal industry waste, municipal
of pig manure sewage waste
• We build larger, centralized plants along • Built in 1996
the Danish model
Map: Jens-Bo Holm-Nielsen, University of South Denmark

13. Model Plant
• Our plants follow a design philosophy based on the Werlte plant in Germany, a
similarly-sized plant to the ones StormFisher is designing for North America
StormFisher’s plants are
closely modelled on this
facility in Germany. Our
plants will process the
same feedstock and output,
and the same quantity of
energy. StormFisher has
also retained the same
biogas development firm to
build its North American
plants.
• Location: Werlte, Germany
• Developer: Krieg & Fischer Ingenieure GmbH
• Construction: 2002-2003
• Energy Output: 2.6 MW electricity

14. Our Plants in Development: London Cogeneration Facility
Output 2.85 MW electrical
Feedstock 140,000 tonnes manure and food processing by-products
Technology Proven anaerobic digestion; GE Jenbacher for reciprocating engines
Commercial Operation 2010

15. Our Plants in Development: Listowel Natural Gas Facility
Output 205,000 mmBTU – natural gas
Feedstock 140,000 tonnes manure and food processing by-products
Membrane filtration, solid/liquid separation, gas upgrading, pelleting, AD
Technology
facility
Commercial Operation 2010

16. Agenda
Who We Are and Where We Came From
Building Biogas in Ontario
Trends in Renewable Energy
Ontario: The Opportunity
Ontario: The Challenges

17. Public Appeal of “Green” Increasing: Energy, Food, Waste
Consumers are
becoming increasingly
concerned about the
carbon footprint of the
food they buy, as
evidenced by this
article in the Financial
Times about
Schweppes’ efforts in
the UK
StormFisher’s partnership with
Inniskillin Wines was covered by over
180 news agencies in 15 countries and
12 languages.
Sales of Inniskillin products spiked
following the announcement and
emails of support poured in.

18. Renewable Energy Investment: Global
• Insights about renewable energy investment are becoming clichés about
renewable energy investment:
– It will be one of, if not the most, important new industries of the century
– Energy and the environment are two of the world’s most important challenges and are
directly related
– Canada can be a big player in renewable energy
Source: Renewable Energy Policy Network for the 21st Century

19. Legislators Are Rallying Behind Renewables
• Green Energy Act (Ontario) and
Stimulus Bill (US) are indicators of
new priorities and opportunities
for business
• Will the effects trickle down to
business in time to make a
difference in a failing economy?
• Trends in capital-intensive
businesses today
“This field of greentech could be the largest
economic opportunity of the 21st century.
There’s never been a better time than now to
start or accelerate a greentech venture.”
- John Doerr, Venture Capitalist, KPCB

20. We Are Not Alone in Our Desire Build a Green Economy
• We are in a competitive landscape – many parts of North America are moving in the
same direction
• How do we stack up against our neighbours?
• How do we translate lofty goals into streamlined regulation?
• What are our advantages and disadvantages relative to other jurisdictions?
– Workforce profile
– Incentives at the provincial/state and federal level
– The rules of the game are different particularly relative to individual states
– Strategic location vis-à-vis markets – where to manufacture?
US - Federal Michigan

21. Agenda
Who We Are and Where We Came From
Building Biogas in Ontario
Trends in Renewable Energy
Ontario: Opportunity & Challenges
How Ontario Investment and Trade Can Help

22. What the Biogas Industry Could Mean to Ontario
• The biogas industry is not just about
electricity:
– Reduced costs and safer disposal for food
processing companies’ organic by-products
improves competitiveness
– Solves a nutrient management problem for
dairy farmers
– Increases supply of non-chemical fertilizer;
a new high-value, niche product for the
fertilizer industry
– Creates major opportunities in academia,
laboratory services and biotechnology

23. The Green Energy Act
• Best news for our industry in a long time
• Minister Smitherman clearly the right leader for the job:
bold, willing to ruffle feathers
• Devil is in the details:
– Timing? Political process versus investors’ attention Project Risk
spans
– Will the regulations be investment friendly and take
into account a developer’s investment process? Project Spend
– If I was in solar, I would be mad!
– How will disparate features of the Act like
manufacturing, renewable energy generation and
conservation efforts line up to greatest benefit?
Source of solar data: Ontario Power Authority, Proposed Feed In Tariff

24. The Competitive Landscape
• We’re not the only ones driving green energy...
VT: (1) RE meets any ME: 30% by 2000
MN: 25% by 2025 10% by 2017 - new RE
increase in retail sales by
(Xcel: 30% by 2020)
*WA: 15% by 2020 2012; (2) 20% by 2017
☼ NH: 23.8% in 2025
ND: 10% by 2015
WI: requirement varies by
MA: 4% by 2009 +
utility; 10% by 2015 goal
MT: 15% by 2015 1% annual increase
OR: 25% by 2025 (large utilities)
5% - 10% by 2025 (smaller utilities) RI: 16% by 2020
SD: 10% by 2015
CT: 23% by 2020
☼ *NV: 20% by 2015 ☼ OH: 25%** by 2025
*UT: 20% by 2025 IA: 105 MW ☼ NY: 24% by 2013
IL: 25% by 2025 ☼ NJ: 22.5% by 2021
☼ CO: 20% by 2020 (IOUs)
CA: 20% by 2010 *10% by 2020 (co-ops & large munis)
☼ PA: 18%** by 2020
MO: 11% by 2020
☼ MD: 20% by 2022
☼ NC: 12.5% by 2021 (IOUs)
☼ AZ: 15% by 2025 10% by 2018 (co-ops & munis) ☼ *DE: 20% by 2019
☼ DC: 11% by 2022
☼ NM: 20% by 2020 (IOUs)
10% by 2020 (co-ops) *VA: 12% by 2022
TX: 5,880 MW by 2015
HI: 20% by 2020
☼ Minimum solar or customer-sited RE requirement
* Increased credit for solar or customer-sited RE
**Includes separate tier of non-renewable “alternative” energy resources
Source: DSIRE: www.dsireusa.org July 2008

25. Agenda
Who We Are and Where We Came From
Building Biogas in Ontario
Trends in Renewable Energy
Ontario: Opportunity & Challenges
How Ontario Investment and Trade Can Help

26. What Works for Trade?
• Waterloo-based solar company, Arise
Technologies
• Developed solar PV cells
• Received $6.5 Million from
Sustainable Development Technology
Canada
• Courted by Invest in Germany to join
the 55 other solar companies
operating in Germany
• Offer included €25 Million grant
including €9.5 Million for the
construction of a plant
• Streamlined, grant championed by
Invest in Germany, funds approved in
seven months

27. What Works for International Trade?
My takeaways from the Arise story:
• This is a well-known story in renewable energy worldwide and gave lots of
profile to Invest in Germany
– Big moves like this make international headlines and tell investors and
businesses which countries are aggressive
• Choose niches of excellence rather than a scattergun approach
– Germany is focused heavily on solar now
– Canada has (had?) an advantage in hydrogen – perhaps an area of focus
• Know your competition – particularly individual states
– What are our strengths compared with them, but also our limitations?
• Government granting agencies must act like investment companies
– The best companies out there are too busy to be looking at foreign
government incentives
– Most companies don’t know what is possible – package it for them, make it
specific to their companies

28. Our Activities with Your Federal Counterparts
• We are working with DFAIT currently to find buyers of our natural fertilizer
in the Middle East and for distressed or undervalued biogas assets in
Europe

29. Our Activities with Your Federal Counterparts
• Key (though limited) takeaways so far:
– Trade reps were most effective when they spent a
lot of time up front with us to zero in on criteria
– ‘Inter-agency’ efforts worked well – e.g.
established contact between Invest in Germany
and the Commercial Affairs at the Canadian
Embassy in Germany
– For us—and probably for companies like us—
DFAIT was our only window into the Federal
government. Are there any companies you deal
with who might be in the same situation
provincially?
– Help companies like us navigate domestic policy
by making intros – especially in this economy,
strong companies at home will be strong
companies abroad

30. Contact Information
Ryan Little
Co-Founder and Vice President, Business Development
411 Richmond Street East, Suite 200
Toronto, ON M5A 3S5
Toll-Free: 1.877.850.7680 x203
Fax: 1.866.575.4544
Email: rlittle@stormfisher.com
Web: www.stormfisher.com