INTEGRATED CARBON   DEVELOPMENT   AN INNOVATIVE  BUSINESS MODEL AMERICANA Conference Montreal, March 23, 2011
Outline1. Biothermica:   History & Carbon activity2. Business model:   Integrated carbon development3. Carbon projects:   ...
1. BIOTHERMICA
Biothermica                            Brief historySince 1987: We develop patented airpollution control and greenhouse ga...
Biothermica            Carbon opportunityEmergence of carbon frameworks since 2005Ex: Kyoto Protocol (regulatory, internat...
Biothermica          Carbon activity statementDeveloper and investor in carbon projectsTechnologies: Proprietary to Biothe...
Why methane destruction?             Low production cost    VAMOX® system               Solar & Wind     $US 3-6/tCO2e1   ...
2. BUSINESS MODEL:INTEGRATED CARBON    DEVELOPMENT
Biothermica manages            all project componentsProject development:Securing methane rightsProject financing and stru...
Advantages of being                 integratedAbility to optimize all project components tomaximize carbon credit producti...
Project development:            securing methane rightsCoal mine or Landfill site is original owner of methanerights (owne...
Development approach            Model 1: Royalty basedNo investment by the resource owner,Biothermica is sole investorTran...
Development approach           Model 2: Joint InvestmentBiothermica and resource owner share:  Capital investment  Operati...
3. CARBON PROJECTS
El Salvador landfill gas carbon project                 Project overviewLocation: Nejapa landfill,El Salvador (Central Am....
Innovative carbon project insurance                World Bank MIGAMultilateral InvestmentGuarantee Agency (MIGA)Insurance ...
Carbon credit productionApril – October 2006:Construction of LFG collectionand destruction system216,000 Certified Emissio...
Project team & pictures
Carbon credit monetization and          Sale of major interest in projectFebruary 2007: 325,000 CERs sold tothe government...
CER pricesApril 2007 – April 2008
ALABAMA COAL MINEMETHANE CARBON PROJECT
Alabama coal mine methane project          Introduction – VAM emissionsUnderground coal mine ventilation air methane (VAM)...
Alabama VAM demonstration project               Project overview1st VAM project in AmericaProprietary technology: VAMOX®De...
Project milestonesApril 2008:     Authorization from US Mine Safety &                Health Administration (MSHA)January 2...
Overview of system and shaft     at WE Mine No. 4
Alabama Project                             Main Results   Availability rate                 92%   Average VAM concentrati...
Moving forward        Agreement with Walter EnergyOct. 2010:     Biothermica & WE announce               agreement to deve...
Thank you!    Raphaël Bruneau     Director, Carbon markets      +1-514-488-3881 # 226raphael.bruneau@biothermica.com   www...
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20110323_Americana Presentation

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Presentation of company's business model and projects at Canada's biannual environmental trade show

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20110323_Americana Presentation

  1. 1. INTEGRATED CARBON DEVELOPMENT AN INNOVATIVE BUSINESS MODEL AMERICANA Conference Montreal, March 23, 2011
  2. 2. Outline1. Biothermica: History & Carbon activity2. Business model: Integrated carbon development3. Carbon projects: El Salvador landfill gas carbon project Alabama coal mine methane carbon project
  3. 3. 1. BIOTHERMICA
  4. 4. Biothermica Brief historySince 1987: We develop patented airpollution control and greenhouse gas reduction technologies Since 1995: We develop, finance, build and operate landfill methane Gazmont landfill gas power plant (25 MW) destruction and energy projects Montreal, CanadaSince 2005: We monetize the carboncredits generated by our landfill gasand coal mine methane installations VAMOX® system Alabama, USA (Coal mine methane)
  5. 5. Biothermica Carbon opportunityEmergence of carbon frameworks since 2005Ex: Kyoto Protocol (regulatory, international) Climate Action Reserve (voluntary, USA)Monetary value for the reduction of greenhousegas emissions: Price on carbon ($/tCO2e)Opportunity for developers of various greenhousegas reduction project types
  6. 6. Biothermica Carbon activity statementDeveloper and investor in carbon projectsTechnologies: Proprietary to BiothermicaRevenues: recurring sale of carbon credits (not equip.)Project types: Landfill methane and coal mine methane Destruction and/or energy generationCarbon standards: Regulatory and voluntaryScope: North America and international
  7. 7. Why methane destruction? Low production cost VAMOX® system Solar & Wind $US 3-6/tCO2e1 $US 20-35/tCO2e2Landfill gas destruction Carbon capture & storage $US 5-10/tCO2e $US 60-80/tCO2e2 1 High VAM concentrations 2 McKenzie, 2009
  8. 8. 2. BUSINESS MODEL:INTEGRATED CARBON DEVELOPMENT
  9. 9. Biothermica manages all project componentsProject development:Securing methane rightsProject financing and structuringMethane destruction technologyProject construction and operationCarbon monitoring, verification & registrationMonetization of registered carbon credits
  10. 10. Advantages of being integratedAbility to optimize all project components tomaximize carbon credit production and revenuesControl over technology, operations& monitoring (monitoring expertise)Control over corporate and financial structure
  11. 11. Project development: securing methane rightsCoal mine or Landfill site is original owner of methanerights (ownership of resource)Methane rights are essential to claim ownership andlegal right to sell carbon creditsObjective is agreement with resource owner on: Transfer of methane rights Allocation of carbon credit revenues
  12. 12. Development approach Model 1: Royalty basedNo investment by the resource owner,Biothermica is sole investorTransfer of methane rights to BiothermicaResource owner benefits from royalty paymentsEx: percentage of Biothermica carbon credit salesMain advantage for resource owner:No financial risk
  13. 13. Development approach Model 2: Joint InvestmentBiothermica and resource owner share: Capital investment Operational costs Carbon credit revenuesPossible creation of a Joint Venture dedicated toproject operationsAdvantage for both Parties:Strong alignment of interests
  14. 14. 3. CARBON PROJECTS
  15. 15. El Salvador landfill gas carbon project Project overviewLocation: Nejapa landfill,El Salvador (Central Am.)Carbon standard:CDM of Kyoto ProtocolInvestor: Biothermica 100%2 phases: Methane destruction (P1) Energy generation (P2)
  16. 16. Innovative carbon project insurance World Bank MIGAMultilateral InvestmentGuarantee Agency (MIGA)Insurance against expropriation,war, civil disturbance, andgovernment letter of approvalunder CDMQ1 2006: Secured first everMIGA support for a carbonproject
  17. 17. Carbon credit productionApril – October 2006:Construction of LFG collectionand destruction system216,000 Certified Emission Reductions (CERs)generated from October 2006 to April 200820% above initial CER projections as of April 2008
  18. 18. Project team & pictures
  19. 19. Carbon credit monetization and Sale of major interest in projectFebruary 2007: 325,000 CERs sold tothe government of Luxembourg,(Forward sale, on 2006-2012 production)April 2008: Sale of major interest in project to AES,international energy companyStrong cash position for investment in future carbonprojectsFull project cycle, from development to project sale
  20. 20. CER pricesApril 2007 – April 2008
  21. 21. ALABAMA COAL MINEMETHANE CARBON PROJECT
  22. 22. Alabama coal mine methane project Introduction – VAM emissionsUnderground coal mine ventilation air methane (VAM)large volumes of low concentration methane (0.2 -1.2%)300 million tCO2e/y globallyChina: 40% of VAMUS: 15%Ukraine: 15% US Mine Ventilation Shaft
  23. 23. Alabama VAM demonstration project Project overview1st VAM project in AmericaProprietary technology: VAMOX®Demonstration of technology andfinancial viability of carbon activityLocation: Walter Energy MineAlabama, USAInvestor: Biothermica 100%Carbon standard:Climate Action Reserve
  24. 24. Project milestonesApril 2008: Authorization from US Mine Safety & Health Administration (MSHA)January 2009: Project commissioningFebruary 2010: Project listed with Climate Action ReserveJune 2010: Registration of 1st year of carbon credits
  25. 25. Overview of system and shaft at WE Mine No. 4
  26. 26. Alabama Project Main Results Availability rate 92% Average VAM concentration 0.9% (High) Carbon credits (1st year) 25 931 CRTs1 Total expected credits (09-13) 120 000 CRTs Average CRT price (09-10) $6/CRT Viability demonstrated for high VAM concentrations1 Climate Reserve Tons
  27. 27. Moving forward Agreement with Walter EnergyOct. 2010: Biothermica & WE announce agreement to develop VAM projectsProject 1: High VAM concentration 2 full-scale VAMOX® units 330,000 tCO2e/year Planned start date: Q4 2011 Carbon standard: CAR or WCI regulatory system
  28. 28. Thank you! Raphaël Bruneau Director, Carbon markets +1-514-488-3881 # 226raphael.bruneau@biothermica.com www.biothermica.com

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