G.E.T. Smart Fuels: General Bbiodiesel


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G.E.T. Smart Fuels: General Bbiodiesel

  1. 1. WTIA Smart Biofuels Presentation June 2010
  2. 2. OVERVIEW General Biodiesel Seattle (GBS) is the Leading Waste-to- Energy Biofuel Company in Washington Two Operating Segments: o Used Cooking Oil (UCO) Recycling Business (Restaurant Services) o Low Carbon Fuel Production (Biodiesel) Significant Growth in Both Businesses in 2009 and 2010 2
  3. 3. MARKET POSITION – LOW CARBON FUEL Business Model is Proving to be the RIGHT Model for Biofuels: o Market is Moving to “Low Carbon Fuels” o US EPA, CARB and WA Dept of Ecology and EU all agree that RCO biodiesel is one of the lowest carbon fuels made WA LCFS California LCFS (gCO2e/MJ) (gCO2e/MJ) 100 RCO Biodiesel has 120 90 80 70 an 80% to 86% 95 60 50 Carbon Reduction 70 GB 45 GB 40 30 FUEL versus Diesel FUEL 20 20 10 0 U.S. EPA (5) RCO Cellulosic Natural Soy Petro Electricity (gCO2e/mmBtu) Biodiesel Ethanol Gas Biodiesel Diesel 3000000 2000000 GB 1000000 FUEL 0 RCO Soy Sugarcane Corn Petro Biodiesel Biodiesel Ethanol Ethanol Diesel 3
  4. 4. WHY LOW CARBON FUEL IS IMPORTANT December 2009: EPA announces it will regulate CO2 Transportation is… o The largest source of CO2, which is the most prevalent GHG o Accounts for 29% of total U.S. GHG emissions o Fastest-growing source of U.S. GHGs, accounting for 47 percent of the net increase since 1990
  6. 6. ACCELERATING GROWTH Quarterly UCO Collection 160,000 140,000 120,000 Accelerating Growth In 2010 100,000 80,000 60,000 40,000 20,000 0 Q108A Q208A Q308A Q408A Q109A Q209A Q309A Q409A Q110A Q210B o Consistent, Reliable, Branded Recycling Solution o Customer Service Innovation, Fixed Cost Optimization and Economies of Scale o Providing Collection Customers with the Ability to Brand Their Carbon Reduction Efforts through UCO Recycling – GBS “GreenPartner” Program 6
  7. 7. HOW WE SCALE RESTAURANT SERVICES GreenPartner Program Promotes Partnership with GBI o GBS tracks and promotes partner carbon reduction from used cooking oil recycled into biodiesel o Customers sign 10-year service agreements o Target FSEs, Property Managers, Institutions o Win-Win-Win for GBS and Customers o Over 3.5 million pounds of CO2 saved by GreenPartners in 2009 7
  9. 9. UNIQUE VALUE PROPOSITION General Biodiesel Offers a Highly Unique Value Proposition to Fuel Customers: o Locally sourced recycled waste streams, produced locally and sold locally o Lowest carbon fuel readily available today o ONLY Waste-to-Energy transportation fuel available in many areas General Biodiesel is Extremely Well Positioned in the Fuel Market 9
  10. 10. SUSTAINABLE COST ADVANTAGE Production Cost Market Price of of Soy Biodiesel Biodiesel Cost Gross Benefit of Margin Captive Feedstock GB Fixed Production Cost of Biodiesel on Captive Feedstock at 3 MGY Scale 10
  11. 11. MANAGEMENT Yale Wong, Chairman & CEO o Founder and CEO of Compass Communications (10 years) o Costco (6 years) Cameron Hewes, President & CFO o 11 Years Investment Banking & Private Equity Experience Hoby Douglass, Director of Sustainable Business Development o 20 Years Sales, Marketing and Brand Development in Manufacturing, Technology and Consumer Products Zach Shelton, Director of Sales o 15 Years Restaurant Industry Experience (Starwood Hotels, Kimpton Hotels, Consolidated Restaurants) Josh Haney, Chemist o 7 Years Pharma, MedTech & ISO 9000 Manufacturing Experience, 10 Patents 11
  12. 12. BOARD & ADVISORS Board of Directors o Yale Wong, Chairman & CEO o Gordon Gardiner, Swiftsure Securities o Dean Allen, CEO of McKinstry Company Advisory Board o Kurt Manchester, VP, Bardahl Oil (80-year global business in petroleum additives manufacturing) o Jerry Lee, CEO, Mulvanny G2 Architecture o Jon Van Gerpen, Professor and Chair, Biological and Agriculture Engineering at University of Idaho, one of the top biodiesel academics in the U.S., started the National Biodiesel Education Program Legal & Tax o Davis Wright Tremaine&Stoel Rives, Legal o RSM McGladrey, Audit & Tax 12
  13. 13. WELL POSITIONED FOR CONTINUED GROWTH Executing Against our Plan o Vertical Integration Allows us to Manage Absence of the Tax Credit o Rapidly Growing Captive Feedstock o Growing Customer Base for Biodiesel – Demand is Strong for Locally Produced, Recycled Product o $2MM Run Rate and Growing Rapidly GBS is Extremely Well Positioned in its Markets o 1 of 2 Consistently Operating Plants in WA o Only Operating Plant in Washington Using Recycled Feedstock = Lowest Carbon Fuel in the Market The Macro Environment Continues to Move in Our Direction o Gulf Oil Spill o Energy Security Remains Highly Visible  US Trade Deficit Driven By Oil Imports o Low Carbon Fuel Standards  CA, OR, WA, BC 13