Carbon cultures lecture 3 value prop

Carbon cultures lecture 3 value prop






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Carbon cultures lecture 3 value prop Carbon cultures lecture 3 value prop Presentation Transcript

  • Biochar Consumers $50 – 250 MM/yr U.S. Slash ≈ 200 MM tons/yr WA State ≈ 5.8 MM tons/yr Ready Partners ≈ 2 MM tons/yr U.S. AG ≈ 60MM tons/yr Landowners $0-10 MM/yr WA State AG ≈ 800K tons/yr Organic/Retail ≈ 200K tons/yr Hypothesis: 2 Customer Segments
  • Hypotheses: 1. C6 Systems will operate in a 2-sided market 2. We will make money selling biochar Landowners Biochar Consumers
  • Value Proposition Hypothesis… - Reliable low cost supply ( some customer evidence ) - Reduced fertilizer/water inputs w/ Biochar ( some data ) - Reduced Run-off - Landowners demand clean/safe/cheap waste wood removal ( fact ) Hypotheses: 1. C6 Systems will operate in a 2-sided market 2. We will make money selling biochar
  • Biochar Users Agriculture: What is the value of adding SOC? What is the value of reducing fertilizer runoff? Nitrification? How much per acre is spent on inputs? What are biochar benefits worth? Retail: What kind of soil amendments do your customers look for? What benefit do you see from adding biochar to your product line? What price range do you anticipate to sell biochar? Advocates: Describe what holds this market back? Who are the early adopters? What defines biochar quality? Market Makers: What is the supply availability and pricing trends? Getting out of the Building Landowner What are they paying now? What is the value of risk mitigation? (fire) What is improved air quality worth? Can our technology lengthen the burn season? (policy change) What is the annual burden of waste removal?
    • Speak With Biochar Users
      • Nurseries
      • Community sponsored Ag
      • Organic farmers
      • Specialty Retail
      • Ecological Conscious Gardeners
    • Learn from Trusted Agents:
      • Advocates
      • Market Makers - Today
    Getting out of the Building
    • Speak With Landowners
      • Tribal (on-going)
      • Corporate (on-going)
      • Government (on-going)
      • NGO ’s (on-going)
      • e.g. The Nature Conservancy
    • Perform Trial Burns on Customer Land -
      • Pack Forest Field test
      • Dept. Natural Resource
      • Yakama Nation
  • The Advocate Retailer Don Larson, Assistant Manager Common Ground Organic Garden Supply and Education Center, a 501 (c)3 “ I think our Board would approve an order within two weeks. I know a great speaker to develop an educational program around its use.” Key: Desire, No Supply
  • The Eco-Garden Designer/Landscaper Phone Interview Key Learning Susan Damon - Role of Influencers Alice’s Garden Design - Biochar as part of gardener’s Seattle, WA portfolio…big mark-up. “ Our customers would use biochar to sweeten soil, darken the soil, build soil carbon, and they’d also like knowing they are helping support forest health.” “ Our customers would be willing to use it and pay more, on my advice. ”
  • The Skeptical Institutional Grounds Crew Key Learning - Again, role of influencers - Cost sensitive - More conservative than UW “ We use minimum inputs, and match native plants to soil.” “ We recycle most of our materials, and have good practices” “ Change would need to be cheaper.” Julie Day Stanford Horticulturist “ If Terry Lyngso suggested it, I might adopt it for my garden.” Ted Tucholski Stanford Grounds Manager
  • EVERY Landowner is enthusiatic Phone Interviews + Visits + Commitment Letters M. Reese Lolley Phil Rigdon The Nature Conservancy Yakama Nation EVERY landowner offers test sites and their fire crews.
  • EVERY Landowner is enthusiatic Phone Interviews + Visits + Commitment Letters Wade Boyd Sr. Vice President (ret.) Longview Fibre All industrial and private landowners face a problem with slash and landing piles. It costs real money to treat slash and burn landing piles. Currently I have several easily accessible landing piles you can use for business development.
  • The Business Model Canvas Distribution C - Sequestration R.E.Credits Landowners Blanket sale/ Franchise Waste Removal Air Quality Improvement Landowners- Wood waste generators IP & Know How Distributors Personal Assistance Direct Sale Sale of Biochar Biochar user- Industrial Biochar user - Retail Gardening Biochar user - Agricultural Wholesale Retail Franchise Service For Waste Removal Reliable Low Cost Char source Reduce Run Off Increased Soil Productivity with Lower inputs Crew Training Secure feedstock Marketing Relationships With Landowners Blanket Manufacturer Biochar Advocates People Field Operation Capital Fixed costs
  • Still don’t have enough facts… - Retail and wholesale pricing, optimal packaging talking to a market maker ( today ), buyers, retail stores, gardeners, and key gardening influencers from each segment - Economic case for reduced inputs talk to academic experts , trade/advocacy associations - Reduced Run-off talk to regulators, vegetable pre-processors. - Optimal model for serving landowners talking about this dimension of problem with landowners and assess internal financial trade-offs. Hypotheses: 1. C6 Systems will operate in a 2-sided market 2. We will make money selling biochar