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Biodiesel Edge, Inc
 

Biodiesel Edge, Inc

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  • CARLOS R

Biodiesel Edge, Inc Biodiesel Edge, Inc Presentation Transcript

  • Carlos Castellanos Helena Chan Andrew Dunning Bernardo Menezes Carlos Rymer "The use of vegetable oils for engine fuels may seem insignificant today. But such oils may become in course of time as important as petroleum and the coal tar products of the present time." Rudolph Diesel:1912
    • Begin business in 2010-2012 with first biodiesel production plant in Guerrero, Mexico.
    • Jatropha, a high-yielding source of vegetable oil, will be main feedstock.
    • Biodiesel Edge seeks investments of $40-45 million for initial start-up.
    • Within five years, generate sales of over $200 million and returns of over 50%.
    Summary
  • Product
    • Biodiesel produced from Jatropha curcas , a tropical plant that produces seeds with high oil content.
    • Reduces carbon dioxide and pollutant emissions by more than 70%.
    • Jatropha can thrive in very poor soils with little rainfall.
    Feedstock Yield (gal/acre) Corn 18 Soybean 48 Jatropha 202
    • Geographic advantages
      • Pemex
      • Government Contacts
      • Government Incentives
      • Limited Competition
      • Climate
    • Production advantages
      • High Yields
      • Low Input Costs
      • Not compromising food
      • Usable By-products
    Competitive Advantages
  • Guerrero Location
  • Logistics
    • Jatropha seeds crushed to extract vegetable oil, which mixed with other reactants produces biodiesel.
    • Biodiesel then shipped by rail or tanker to Tula or Salina Cruz respectively, the two largest refineries owned by Pemex
    • Blended at refinery with diesel fuel for consumption.
    Type of transportation Distance Cost Rail Less than 500 miles 4-5 cents per gallon Rail Greater than 500 miles 12-14 cents per gallon Gas Tanker Any 2-4 cents per gallon
  • Equipment and Infrastructure Cost Large Scale-Plant (~13.5 million gallons/yr) $28,500,000 Land (~27,000 hectares) $2,200,000 Storage Tanks (10 units; ~100,000L) $2,000,000 Diesel Trucks (4) $1,000,000 Office Facility (1) $500,000 Farm Equipment and Land Preparation $7,000,000 Miscellaneous $1,000,000 Total $42,200,000
  • Cash Flow Year 1   Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Y1 Cash Receipts           Sales Receivables $9,330,817 $9,320,480 $9,314,278 $9,323,982 $37,289,558 Wholesale $9,281,250 $9,281,250 $9,281,250 $9,281,250 $37,125,000 Retail $49,567 $39,230 $33,028 $42,732 $164,558 Other Sources           Total Cash Receipts $9,330,817 $9,320,480 $9,314,278 $9,323,982 $37,289,558 Cash Disbursements           Cost of Production $1,696,512 $1,694,633 $1,693,505 $1,695,269 $6,779,920 Variable Labor $2,591,037 $2,588,166 $2,586,444 $2,589,139 $10,354,786 Advertising $125,000 $125,000 $125,000 $125,000 $500,000 Legal and Accounting $25,000 $25,000 $25,000 $25,000 $100,000 Communications $25,000 $25,000 $25,000 $25,000 $100,000 Office Supplies $50,000 $50,000 $50,000 $50,000 $200,000 Delivery Expenses $169,651 $169,463 $169,351 $169,527 $677,992 Depreciation $400,000 $400,000 $400,000 $400,000 $1,600,000 Property Tax $0 $0 $0 $0 $0 Total Cash Disbursements $5,082,200 $5,077,263 $5,074,300 $5,078,935 $20,312,698             Net Cash Flow $4,248,617 $4,243,218 $4,239,978 $4,245,047 $16,976,860             Cumulative Cash Flow $4,248,617 $8,491,835 $12,731,813 $16,976,860  
  • Cash Flow Year 2 Biodiesel Edge, Inc Cash Flow Projection (Year 2 by Quarter)   Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Y2 Cash Receipts           Sales Receivables $11,651,130 $11,640,793 $11,634,591 $11,644,294 $46,570,808 Wholesale $11,601,563 $11,601,563 $11,601,563 $11,601,563 $46,406,250 Retail $49,567 $39,230 $33,028 $42,732 $164,558 Other Sources           Total Cash Receipts $11,651,130 $11,640,793 $11,634,591 $11,644,294 $46,570,808 Cash Disbursements           Cost of Production $2,118,387 $2,116,508 $2,115,380 $2,117,144 $8,467,420 Variable Labor $3,235,355 $3,232,485 $3,230,762 $3,233,457 $12,932,059 Advertising $125,000 $125,000 $125,000 $125,000 $500,000 Legal and Accounting $25,000 $25,000 $25,000 $25,000 $100,000 Communications $25,000 $25,000 $25,000 $25,000 $100,000 Office Supplies $50,000 $50,000 $50,000 $50,000 $200,000 Delivery Expenses $211,839 $211,651 $211,538 $211,714 $846,742 Depreciation $400,000 $400,000 $400,000 $400,000 $1,600,000 Property Tax $0 $0 $0 $0 $0 Total Cash Disbursements $6,190,581 $6,185,643 $6,182,681 $6,187,316 $24,746,220             Net Cash Flow $5,460,549 $5,455,150 $5,451,910 $5,456,978 $21,824,587 Cumulative Cash Flow $5,460,549 $10,915,698 $16,367,609 $21,824,587  
  •  
  • 5-Year Summary of Income Projection   Total Y1 Total Y2 Total Y3 Total Y4 Total Y5 Sales           Wholesale $37,125,000 $46,406,250 $83,531,250 $120,656,250 $204,187,500 Retail $133,380 $166,725 $300,105 $433,485 $733,590 Total Sales $37,258,380 $46,572,975 $83,831,355 $121,089,735 $204,921,090             (V) Cost of Production $6,750,000 $8,437,500 $15,187,500 $19,743,750 $31,581,563 (V) Variable Labor $10,309,091 $12,886,364 $18,556,364 $23,092,364 $39,339,491 Cost of Goods Sold $17,059,091 $21,323,864 $33,743,864 $42,836,114 $70,921,053             Gross Margin $20,065,909 $25,082,386 $50,087,491 $78,253,621 $134,000,037 Total Expenses $12,120,000 $11,736,250 $18,387,250 $23,502,250 $31,777,500 Net Earnings $7,945,909 $13,346,136 $31,700,241 $54,751,371 $102,222,537
  • Questions?