Presentation1 bio fuelsbusinessplancontactpagesmokeycharcoalshellsPresentation Transcript
Spicewind KobaMaronOil CompanyAbstract Spicewind Pacific Group is a company that has been involved in the Republic of the Marshall Islands (RMI) since 1970. Primarily with the development of Fisheries, and the logistics pertaining to the development of our own Inter-Island Air Cargo/Passenger Service. The majority of these early activities took place during the years when this vast Pacific Ocean area was still the “District of the Marshall Islands.” A group of Atolls and Islands under a United Nations Trusteeship administered by the United States. Substantial changes in the Micronesian Area have taken place since the unsettled period noted above. Due to constant and positive changes, we have renewed our attention toward further development in this vibrant Central Pacific area holding valuable seafood resources, and vital biomass feedstock for the renewable alternative Bio-Diesel and Bio-Jet Fuels necessary in today’s world of green energy products, and the requirement for a reliable Air Transportation Service for the area with connections to the outside. Recognizing the growing importance of renewable – sustainable non-fossil based fuels, we are now involved in the cultivation and further development of over 1,000,000 coconut trees within the RMI. We will refine the coconut oil into approximately 20,000,000 gpy of Bio-Diesel and Bio-Jet Fuels. 2
Abstract (Cont.) We seek serious U.S. Grants, Equity, Angel or Venture Capital to begin immediate operations . Our company holds 25 year renewable licenses and permits allowing us to establish and implement the foregoing programs to their fullest, on an early schedule, with the utmost expediency. In addition we are providing a protected investment opportunity, along with extraordinary tax breaks for the U.S. Citizen or Company actively participating with us in our area of operations. These are legal incentives written into law between the U.S.A. and the RMI, within a “Compact of Free Association.” At this time we seek sufficient funding that will allow us to begin the refining of our coconut oil into Bio-Diesel and Bio-Jet Fuels ASAP. Within the parameters of our operational domain is a Dept. of Defense Army Missile Test Site, including a large airfield and support base, which provides research and testing facilities that cover most of the Kwajalein Atoll (The largest Atoll in the world). This airfield is important because U.S. Transports and other military aircraft use it as a major refueling base as they travel between the U.S. to other destinations across the Pacific/Asian Basin. They must refuel here, or at the RMI Capital Atoll of Majuro Airport. There is nothing else available. The U.S. Air Force has issued a directive that all U.S. Air Force aircraft will utilize at least 50% of Bio-Jet Fuel by the year 2016, doubling the importance of the kwajalein Airfield, not only to the Air Force, but to us as well. 3
Abstract (Cont.) The above order virtually guarantees us a market in our own backyard supplying the DoD with the proper Bio-Jet Fuels; Thereby saving the DoD the logistical task and expense of transporting the bio-jet fuels from other very distant sources and have it readily available to the Air Force aircraft refueling on Kwajalein, Wake Island, Guam, Okinawa, as well as other U.S. Air Bases within Japan. Our area (within U.S. Judicial District 9) of operations also qualifies us for U.S. Grants and Loan Guarantees through the U.S. Energy Dept., and the USDA Rural Development Agency. Our Fishing Vessels, Outer Island Generators, Fish Processing Facilities, our turbo-prop aircraft, and our Boeing 737 Cargo aircraft will also be earning extraordinary revenues through overhead cost savings by utilizing the bio-jet, and bio-diesel fuels provided by our own coconut oil, green organic biomass, macro-algae oil, and our own processing and refining facilities. While we await supply contracts from the U.S. Defense Logistics Agency, and DESC Pacific, we will sell our Bio-Diesel Fuel to the giant Tuna Purse Seiners and Long Liners from Taiwan and South Korea, whom utilize Majuro as an important unloading and provisioning base for their Central Pacific activities. 4
Costs/Expensesto Establish Immediate Production of Bio-Diesel Fuel - Based Upon Coconut Oil (CNO) Feedstock Only COCONUT OIL PRODUCTION – MARSHALL ISLANDS One Coconut Tree will produce over 300 ripe coconuts per year. Coconuts grow and ripen throughout the year. One mature tree = 300 ripe coconuts. Based upon the last official land survey, and tree count/growth throughout the Marshall Islands, we are figuring an average of 40,000 trees on each Atoll. There are 25 major Atolls with 1,200 Islands providing us with approximately 1,000,000 coconut trees. 1,000,000 trees will produce approximately 300,000,000 coconuts per year. It requires 15 mature/ripe Marshall Island Coconuts to produce one gallon of Virgin Fresh Coconut Oil. 300,000,000 Coconuts divided by 15 = 20,000,000 gallons of oil per year. Or, 54,794 gallons per day (rnd to 50,000). 5
Costs/Expenses (Cont.)Production Costs/Revenue Expectations – Three Full Years One coconut costs us between $.06 and $.08 – Additional transportation, handling, and refining will bring our cost to about $1.25 per gallon of Bio-Diesel Fuel Oil. At the present time the cost of diesel fuel in Majuro from Mobil Oil (Exxon) is hovering around $4.50 per gallon, and rising. At the going price of Mobil Oil - $4.50 per gallon, we have a rather large gap between the cost of producing a gallon of diesel fuel, and the extreme sales price. We have the advantage of setting our own price to the public allowing us considerable leeway in costs, and gross or net revenue. For this proposal we will use an arbitrary sales price of $2.50 per gallon. $2.50 X 5,000 gallons per day = $12,500. Deduct $1.25 per gallon for direct costs, handling/transport/processing/refining, etc. $6250 in costs per day, or about $2,187,500 net revenue (before taxes) for the year. We are using 350 working days for the year. If we implement our facility equipment to increase our production to 12,500 gpd, we can expect an increase in net revenue to $5,468,750 for the second full year; a total of $7,656,250 for the 1st full 2 years. With the placement of another 12,500 gpd refining unit in Kwajalein or Majuro, and still selling at a low of $2.50 per gallon, the 3rd year production would be $10,937,500. By the end of our 1st full 3 years of production, we will have generated: $18,593,750. 6
Costs/Expenses (Cont.)Administrative Costs and Revenues 3 yrs Operations 3 Year Production Costs for additional Refining Equipment … $ 1,900,000 Maintenance and Operation of Refining Facility 10% .. 1,859,375 Administrative – Office, Utilities, Communications … 600,000 Salaries/Wages (2 salary / 10 hourly @ $172,000 per yr. 516,000 Total Costs & Expenses … $ 2,975,377 Adjustable Gross Revenue … $18,593,375 Adjustable Net Revenue … $15,619.998 Corporate Taxes (flat tax-14%) … $ 2,186,800 Net Revenue … $13,433,198 7
ADVANTAGESThe Importance of Renewable Sustainable Feedstock(Real Cheap is also Good) In order to provide a continuous supply of Bio-Diesel, and/or Bio-Jet Fuels, we must also have a continuous (sustainable and renewable) feedstock having the chemical structure/make-up that can provide a component oil that is acceptable for further processing and refining into viable Bio-Diesel and Bio-Jet Fuel. It is also important that another Feedstock, with the feasibility/viability , along with the acceptable attributes of the other; is also cheap, plentiful, and available on a year 'around basis without seasonal, energy demanding, cultivation or harvesting procedures. In the Marshall Islands, we are fortunate in having not one or two, but three major Feedstock resources available on a year 'round basis: #1. Pure Coconut Oil, which will provide us with up to 20,000,000 gpy. #2. Organic Waste Products (Biomass) over 850,000 tons per yr. #3. Algae Oil (Macro Algae) over 2 billion gpy by the year 2020 INITIAL PROCESSING/REFINING EQUIPMENT #1. Green Fuel America – TechMatic Bio-Diesel Refining Equipment. Fully proven out and already operating commercially throughout the world at over 20 locations, refining up to 12,500 gpd. (See full description & details in attachment) 8
ADVANTAGES (CONT.)Initial Processing/Refining Equipment (Cont.) #2. Our Biomass Feedstock Processing Plant involves the implementation of a U.S. Patented (Mitchell Technology) Plasma Arc Gasification Method that attains “Catalyzed Ionic Impact in sequential gasification and chemical transformation of our Biomass Feedstock. This Biomass Feedstock is made-up of fallen Palm Fronds, Island foliage, and other green organic waste on our 1,200 Islands. Our Macro Algae Seaweed pulp will also be utilized as a viable Biomass Feedstock, after component oils have been extracted. (Complete processing/refining data is attached) 9
Broad Based Production Schedule TIMING: FROM START-UP TO COMMERCIAL PRODUCTION Our Pure Coconut Oil production will reach a capability of 16,000,000 gpy within 24 months of start-up. Start-up meaning when contracts are signed and funding is in place. 350 days is used for one year. 5,000 to 25,000 gpd production level. We expect that our Biomass Oil Production will reach 220,000,000 gpy, or about 628,571 gpd within 4 years of start-up. Macro Algae Oil Production will reach one billion gpyby the 8th yr from start-up. By the year 2020 we can expect to be producing a minimum of 3,531,143 gpd of Feedstock Oil from combined CNO, Biomass from Green Waste, and Algae pulp. Our initial 1st 2 yrs. will utilize Coconut oil only, as Feedstock for the production of our initial Bio-Diesel Fuels for immediate local sales. However, over the 1st five years of operations, we can expect a minimum increase of at least 10% per year. 3rd year provides revenue of approximately…. $13,200,000 4th year …………………… $14,520,000 5th year …………………… $15,972,000 Total adjusted gross revenue.. $43,692,000 (Coconut Oil only) 10
Broad Based Production Schedule (Cont.) ORGANIC WASTE PRODUCTS BIOMASS FEEDSTOCK (With Loosely based figures) Note: Capacity of initial refinery will be upgraded from 5,000 gpd to 25,000 gpd at the beginning of 2nd yr and up to 50,000 gpd by the end of fifth year of production. Start-up plan calls for “Mitchell Technology” to begin joint venture operations during our 3rd year of operations. Initial Biomass Plasma Arc Regenerator for processing green waste and algae pulp from our organic waste Feedstock will go on line during the 3rd year of operations. 3rd year thru 5th year - Green Waste Biomass Feedstock will be providing component oils for the Bio-Jet refinery production , in addition to coconut oil. During one full year, we are able to amass about 825,000 tons of Biomass Feedstock for our green organic waste products processing facility. Costs of Green Waste handling , transportation will approximate $10,000,000 per year, or about 10% of the Gross Income from the refinement of Biomass oil into Bio-Jet Fuel, and final sale to U.S. DOD for roughly $97,700,000 gpy. First full year of Biomass production (3rd year) will provide about 825,000 tons of Biomass Feedstock that will provide 95,700,000 gallons of component oil for our Bio-Jet Fuel refinery facilities, which will produce about 76,560,000 gpy of Certified per Air Force Specifications - JP-8 Bio-Jet Fuel. Material difference is made up of highly valuable superheated gas/thermal heat, chemicals, and fertilizer products. (Cont. next page.) 11
Broad Based Production Schedule (Cont.) ORGANIC WASTE … WASTE BIOMASS … (Based upon loose Estimates-due to unknowns) 4th year revenues ………………………………. $172,260,000 Less Costs/Expenses … About $10,000,000 .. 162,260,000 5th year revenues (plus 10% over 4th year) …… $178,486,000 Less Costs/Expenses … About $10,000,000 .. 168,486,000 Total Adjusted Gross Revenue $503,006,000 BIOMASS ONLY ALGAE OIL MACRO ALGAE/SEAWEED We have noted that many proposals forecast production levels from 1,000 to 13,000 gallons per liquid acre of Algae Oil produced through many diverse methods of growing and extracting oil from algae. We will use a minimal figure of 1,000 gpa. Throughout our domain of operations, we are in control of over 4,000 square miles, or 2,560,000 acres of protected tropical saltwater lagoons. Using a minimal figure of 1,000 gpa provides us with a production of 2,560,000,000 gpy. We expect to have at least half of this liquid acreage in a perpetual growing mode, harvesting and extracting algae oil (Macro Algae/Seaweed), and processing the algae pulp as biomass Feedstock by our 8th year of operations. (Cont. next page) 12
Broad Based Production Schedule (Cont.) In this proposal, we estimate that we will have planted, are growing, and extracting oil from at least 320,000 acres during our 5th year of successful operations. We can expect 320,000,000 gpy of Macro Algae Oil by the end of our 5th year. We further estimate that initial costs will be high during this period. Up to about $100 per acre, or $32,000,000. In addition, we expect to increase our production capability to a minimum of 1,500,000,000 gpy with an additional six separate processing and refining facility centers – in full production by 2020. 5th year revenues ………………………….. $720,000,072 Less Direct Costs ………………………….. 32,000,000 Total Adjusted Gross Revenues …………... $688,000,072 Algae Oil/Biomass Five year Revenues: Coconut Oil Only … $ 43,692,000 Biomass Only …….. 503, 006,000 Macro Algae Only ... 688,000,072 Total 5 year Only …. $1,214,698,072 13
Contacts Gunther W. Mothes Spicewind Pacific Group 240 Suffolk Street, Corona, CA 92882 Tel: 1-951-737-4577 e-mail: email@example.com IroijLaplap Senator LitokwaTomeing Partner, Spicewind Pacific Group P.O. Box 417, Majuro, MH 96960 R.M.I. Tel: 011-692-625-5318 e-mail: firstname.lastname@example.org Takyo Ishiguro Partner, Spicewind Pacific Group Gunther Mothes Mgr. P.O. Box 185, Majuro, MH 96960 R.M.I. Jim Lajian Mgr., Outer Islands Spicewind Pacific Group P.O. Box 1346, Majuro, MH 96960 R.M.I. Hidetoshi Kobayashi Partner, Spicewind Pacific Group Applic Company, Tokyo, Japan Tel: 81-3-3918-4460 e-mail: email@example.com Dr. C. Kenneth Mitchell, JV Partner, Mitchell Technology 7428 Edgewater Ave., Las Vegas, NV 89123 Tel: 1-702-540-0217 e-mail: firstname.lastname@example.org
Total Funding Required ….. 1st full year costs … $5,500,000 ... staged thru 1st year
Immediate Start-up Funds 1st year preparation, necessary equipment, and operation costs related to procurement of necessary equip. Immediate: $2,376,000 later during 1st year
set-up of Refinery and Processing Bldgs. Funding (Cont.) Next Page
Funding Required (Cont.) ImmediateLater
#7 Purchase advanced supplies of chemical catalysts
for refining start-up and funds for coconut purchases … $ 300,000$ 250,000 Total Immediate Funding Required At Start-up of Operations... $2,376,000 $2,681,000 Total Amount of Funds Necessary Through the First Year………….. $5,057,000 ( Includes approximately $443,000 Reserve Funds )
Initial production will begin during the 7th month of 1st year of operations. Revenue will begin flowing in the following week. Our entire production will be virtually sold out from the day we begin refinery operations. Local RMI Government, Chinese and South Korean Fishing Vessels will be our immediate and primary customers. Once the word is out, most of the Japanese Fishing vessels operating across the Central Pacific will also come in to fuel.
Production will stay steady at 5000 gallons per day of bio-diesel fuel for the next 5 months. We can expect to produce a minimum of 750,000 gallons over the final 150 days of our first year of business.
Our cost to refine one gallon of Bio-Diesel Fuel will be $1.25. Based on the current range of local (RMI) prices (Mobil Oil @ about $4.50 per gal.) we will price ours at about $3.75 or $4.00 per gal. Using a sales price of $3.75 X 750,000 gals. we can expect an adjusted (less $1.25 cost per gal. for CNO) gross profit of : $1,875,000. Less RMI flat tax of 14% - or $262,500, will provide a net profit of $1,612,500 for our first year. This income will nullify having to use the same amount from our original investment – bringing that amount down to: $3,444,500
Our 2nd year of production will be our first complete year – or our first full two years in business. Including our five months net revenue during first year we can add $3,923,750, less RMI taxes, a combined Net Profit of $5,536,250 at the end of our complete 2nd year.
Funding (Cont.) next page
Summary Of Prospectus
Previous page noted initial expenditures along with revenues generated during the last 5 months of the first year of operations, and the full 2nd year of operations.
In a separate file I have included complete descriptive material illustrating the capabilities of our intended refinery facilities. This also contains an assumption re budgetary information describing costs and likely profits obtainable through the use of this equipment and utilizing our coconut oil feedstock.
We will undoubtedly choose to expand to 12,500 gpd production of Bio-Diesel Fuel by the end of 2nd year. Placing the 5,000 gpd facility on bio-jet production providing Jet-A and J-5 Bio-Jet Fuels.
At a full year of refining 12,500 gpd, producing approximately 4,562,500 gals.of Bio-Diesel fuel, and selling at $3.75 per gallon, we will generate gross revenues of approximately: $17,109,375 . 1,825,000 gals. Of bio-jet fuel will provide a gross revenue of approximately: $6,843,750.
Total Gross Revenues 3rd year ……. $23,953,125
Less costs of processed CNO ……… $15,968,750 Adj. Gross Income
Less 14% RMI taxes ………………. $13,733,125 Net Income 3rd year
Combined with 1st & 2nd year …….. $19,269,375 Total Net over 3 years
(Above figures do not include $1.00 per gal. tax credit).
Please refer to attached files for detailed information: Gunther W. Mothes
Additional Revenue Sale-able Side Products From Coconut Processing We must also include a very important source of revenue from our Coconut Oil based Bio-Diesel, Bio-Jet fuel processing/refining production. Valuable side products that we will accumulate, process and market are as follows: 1. “Cake” – derived from the coconut meat after oil/water has been extracted/cold pressed, this product is sold as Animal Feed, and/or Fertilizer. Price varies, but will generally be higher in price then most cake, as ours will be from fresh coconut meat, and not from Dried Copra. 2. “Coconut Husk” will be dried, shredded into “wood chips,” sacked in retail bags for export, and sold as “Coconut Husk Smoke Chips” for BBQ smoking; and to commercially smoke fish, chicken, beef & pork products. 3. “Carbonized (charcoal) Coconut Shell” – crushed, fine meshed into custom sized specialty particles for use as water filters, air filters and various other specialty filtering requirements. Refer to links below for detailed information re Carbonized Coconut Shells. http://catalogs.indiamart.com/products/granular-activated-carbon.html http://www.ohiopurewater.com/shop/customer/home.php?cat=474http://coconutboard.nic.in/charcoal.htm http://coconutboard.nic.in/activatd.htm http://www.buyactivatedcharcoal.com/coconut_activated_charcoal_powder_1250_bulk http://www.buyactivatedcharcoal.com/products_all Additional Revenue (Cont.)
Additional Revenue (Cont.) We can expect additional revenue income, half again as much as the price we will charge for one gallon of the refined Bio-Diesel fuel; also from both the “Coconut Husk BBQ Smoke Chips,” and the custom graded “Carbonized Charcoal Coconut Shell” particles. The fresh coconut “Cake” will be sold by the ton as high nutrient animal feed, or as fertilizer. The fresh “Cake” can also be sold as bakery, and/or other food supplements; dependent upon quality and packaging of the fresh coconut cake product. The above side products will be sold and exported on an fob Majuro schedule. The revenue from these side products could very well help defray a large part of our production costs for the bio- Jet and Bio-diesel fuel. Certified Bio-Jet Fuel From Coconut Oil CCe Mm rtified Bio-Diesel Fuel From Coconut Oil