American lime tech business plan outline 082409


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American lime tech business plan outline 082409

  1. 1. American Lime Technology EXECUTIVE SUMMARY BUSINESS PLAN <ul><li>September 14, 2010 </li></ul>
  2. 2. Intent <ul><li>This summary document is intended to serve as a draft outline for the American Lime Technology business plan, which will provide one-year and three-year guidance for the company’s business operations. </li></ul>
  3. 3. Objectives: Summary <ul><li>Launch pilot residential projects </li></ul><ul><li>Develop North American supply chain </li></ul><ul><li>Initiate key product testing and certifications </li></ul><ul><li>Develop educational and training programs </li></ul><ul><li>Develop distributorships </li></ul><ul><li>Identify and enter agreements with suppliers of accessory products </li></ul>
  4. 4. Objectives | One Year <ul><ul><li>American Lime Technology will supply materials and provide technical support for a minimum of 100 units (2,500 sq. ft = 12,5 tons of Hemcrete) in North America. </li></ul></ul><ul><ul><ul><li>American Lime Technology has completed marquee projects in Asheville, North Carolina: the Martin-Korp Residence and the Buscher Residence (Nauhaus Project). </li></ul></ul></ul><ul><ul><li>American Lime Technology will establish binding agreements and make necessary investments to establish a Canadian hemp supplier and a processing facility as necessary to ensure a North American supply of processed hemp. </li></ul></ul><ul><ul><ul><li>Negotiations are underway with Alberta, Manitoba and Ontario provinces, government and private sectors </li></ul></ul></ul>
  5. 5. Objectives | One Year (cont’d) <ul><ul><li>American Lime Technology will enter into a license agreement with Lhoist USA and will build a blending facility that has the capacity to produce the proprietary HB® Tradical Binder. This location will be selected with the following criteria in mind: </li></ul></ul><ul><ul><ul><li>Centralized location that facilitates shipping throughout the United States and Canada. </li></ul></ul></ul><ul><ul><ul><li>Proximity to rail and/or water transportation </li></ul></ul></ul><ul><ul><ul><li>Capacity for specialty production and small batch runs </li></ul></ul></ul><ul><ul><ul><li>Nearby or in house warehouse facilities </li></ul></ul></ul><ul><ul><ul><li>Network of facilities that could provide expansion capabilities </li></ul></ul></ul>
  6. 6. Objectives | One Year (cont’d) <ul><ul><li>American Lime Technology will identify and apply for viable Canadian government and private grant funding to underwrite the most critical product testing and evaluation. </li></ul></ul><ul><ul><li>American Lime Technology will commission the most critical product testing and evaluation protocols that are necessary to legitimize the product in the American and Canadian construction markets, with the highest priority being: </li></ul></ul><ul><ul><ul><li>Combustibility testing </li></ul></ul></ul><ul><ul><ul><li>Thermal performance evaluation </li></ul></ul></ul>
  7. 7. Objectives | One Year (cont’d) <ul><ul><li>American Lime Technology will participate in ongoing, organized efforts to promote the mainstream acceptance and understanding of industrial hemp. </li></ul></ul><ul><ul><ul><li>American Lime Technology officers/representatives will speak at sustainability and/or hemp conferences. </li></ul></ul></ul><ul><ul><ul><li>American Lime Technology will support industry lobbying efforts through membership and active participation in the Industrial Hemp Association. </li></ul></ul></ul><ul><ul><li>American Lime Technology will develop an AIA CES Hemcrete® educational presentation to be delivered to architects and specifiers in target markets by distributors and at industry conferences. </li></ul></ul>
  8. 8. Objectives | One Year (cont’d) <ul><ul><li>American Lime Technology will produce product literature to support the production introduction and sales cycle: </li></ul></ul><ul><ul><ul><li>Product introduction & UK history </li></ul></ul></ul><ul><ul><ul><li>Performance & environmental benefits </li></ul></ul></ul><ul><ul><ul><li>Construction techniques & considerations </li></ul></ul></ul><ul><ul><ul><li>Longterm energy savings projections </li></ul></ul></ul><ul><li>American Lime Technology will identify potential manufacturers and suppliers of accessory products that are used in the construction of Hemcrete® structures, including spray equipment and formwork </li></ul>
  9. 9. Objectives | Three Year <ul><ul><li>American Lime Technology will secure regional distributors for Tradical® Hemcrete® in North America that provide coverage and technical support for target markets. </li></ul></ul><ul><ul><li>American Lime Technology will secure municipal construction projects in Canadian hemp-producing provinces. </li></ul></ul><ul><ul><li>American Lime Technology will secure a major private commercial project in the United States and will have an annual minimum of 1,000 unit projects (=12,500 Tons of Hemcrete). </li></ul></ul>
  10. 10. Objectives | Three Year (cont’d) <ul><ul><li>American Lime Technology will establish training programs for regional distributor representatives, specifiers, and installers. </li></ul></ul><ul><ul><li>American Lime Technology will be executing construction projects using Canadian grown and processed hemp shiv. </li></ul></ul>
  11. 11. Objectives | Three Year (cont’d) <ul><ul><li>American Lime Technology will complete all recommended American and Canadian testing protocols for Hemcrete®, as per the Kubala Washatko material evaluation report dated 3/17/2009. </li></ul></ul><ul><ul><li>American Lime Technology will complete International Code Council certification. </li></ul></ul><ul><ul><li>American Lime Technology will launch an installer and specifier certification training program. </li></ul></ul><ul><ul><li>American Lime Technology will launch an umbrella marketing plan that ensures consistent branding and messaging of Hemcrete® among distributors. </li></ul></ul>
  12. 12. Target Market Overview | One Year <ul><li>Residential construction will be the initial focus of market development while product testing and evaluation is being conducted in anticipation of commercial and government use. </li></ul><ul><li>Hemp Technologies, LLC , in its capacity as distributor, and American Lime Technology has completed two residential projects, including the Buscher House, which is a Passivhaus project using Tradical® Hemcrete®. </li></ul>
  13. 13. Target Market Overview | Three Year Geographic Construction Type Decision Makers Notes Southeast USA Residential & Commercial Building Owners/Specifiers Asheville area has active support through Hemp Technologies LLC, based in Asheville, NC. Southwest USA Residential & Commercial Building Owners/Specifiers The southwest, particularly California, is a leader in sustainable construction, including strawbale. Pacific Northwest USA Residential, Commercial & Municipal Government Officials/Building Owners/Specifiers The State of Oregon has legalized the production of hemp and is an emerging advocate in a progressive region. Canada Residential, Commercial & Municipal Government Officials/Building Owners/Specifiers The provinces of major Canadian producers and processors of hemp
  14. 14. Target Market Overview | Three Year (cont’d) <ul><li>The southwest, particularly California, has a tradition of strawbale and adobe construction, which will facilitate the introduction of Hemcrete®. </li></ul><ul><li>Northern California’s wine producing region is a desirable market: </li></ul><ul><ul><li>Sustainable, unique winery facilities provide a marketing edge. </li></ul></ul><ul><ul><li>Winery facilities offer Hemcrete® exposure to thousands of visitors. </li></ul></ul><ul><ul><li>Wineries have special thermal and sanitary needs that are well-suited to Hemcrete®. </li></ul></ul><ul><ul><li>The alcohol industry has proven to be more recession-proof than business generally, with affordable to midpriced wine holding up particularly well. </li></ul></ul><ul><li>Completion of recommended product testing and evaluation protocols will open the commercial and municipal building market to Hemcrete®. </li></ul>
  15. 15. Target Market Overview | Three Year (cont’d) <ul><li>Canadian and Oregon municipalities are target markets for government construction due to the region’s growing hemp production and associated economic benefits. </li></ul><ul><li>Hemcrete® is also suitable for retrofitting into historic structures, making restoration architects and specialty contractors a viable target market. </li></ul>
  16. 16. Overview of Competition Installation System Competitive Products Notes Cast Hemcrete® Strawbale construction Both systems are all-natural, low impact, breathable, fire-resistant, mold-resistant and offer high thermal performance benefits. Hemcrete® benefits include less specialized construction techniques; more flexibility; and thinner walls. It is also easier to cut Hemcrete® to access services or to install new plumbing and electric. Adobe Traditional construction method restricted to the arid southwest.
  17. 17. Overview of Competition (cont’d) Installation System Competitive Products Notes Sprayed Hemcrete® Insulating foam and sprayed-in cellulose, cementitious, and fiberglass insulation Hemcrete® offers environmental benefits that none of these products can claim. It contains no petroleum products; no added chemicals, and it uses only agricultural byproducts (the hemp shiv). It is mold, pest, and fire-resistant. Hemcrete® does not settle, and it is also breathable, which prevents moisture from becoming trapped in the walls. It is also easily cut, which makes it relatively easy to access services .
  18. 18. Overview of Competition (cont’d) Installation System Competitive Products Notes Hemcrete® structural blocks Concrete masonry units (CMUs) The Portland Cement Association is attempting to position CMUs as a sustainable construction material, arguing that most of the units are manufactured and used locally, which is requiring less energy for transportation. They also state that cement comprises only 3 pounds out of every 20-25 pound block. Assuming that cement comprises 3 pounds of every CMU, it can be estimated that the production of CMUs contributes approximately 2,620,000,000 pounds of carbon dioxide every year in North America alone.
  19. 19. Key Elements to Success <ul><li>Establishment of a North American supply chain </li></ul><ul><ul><li>Importing Tradical® HF and Tradical® HB from Lime Technology UK is only feasible during the introductory phase of Hemcrete®: </li></ul></ul><ul><ul><ul><li>High shipping costs </li></ul></ul></ul><ul><ul><ul><li>Long lead time </li></ul></ul></ul><ul><ul><ul><li>Fluctuation in pound versus the dollar introduces variability into the pricing model </li></ul></ul></ul><ul><ul><ul><li>Importation excludes Hemcrete® from inclusion in LEED-rated structures. LEED emphasizes locally sourced material to reduce the overall carbon footprint of the building. </li></ul></ul></ul><ul><li>Trained specifiers and installers will be essential for successful projects in light of Hemcrete®’s unique characteristics. </li></ul>
  20. 20. Key Elements to Success (cont’d) <ul><li>Recommended product evaluations and certifications must be attained in order to make Hemcrete® viable in terms of building codes, health and well being standards, safety requirements, and LEED system ratings. </li></ul><ul><li>A network of trained distributors is essential to lead sales efforts and to provide regional product and training support for key target markets. </li></ul>
  21. 21. Potential Obstacles to Success <ul><li>Status of industrial hemp in the United States </li></ul><ul><ul><ul><li>Stigmatizes industrial hemp: </li></ul></ul></ul><ul><ul><ul><ul><li>Prevents hemp from being a domestic product, which would encourage American private and public investment in hemp products. </li></ul></ul></ul></ul><ul><li>North American economic climate </li></ul><ul><ul><li>Limits the availability of investment and financing options </li></ul></ul><ul><ul><li>Has stalled the construction market </li></ul></ul>
  22. 22. Potential Obstacles to Success (cont’d) <ul><li>Regional differences in building codes & environmental demands </li></ul><ul><ul><li>The United States relies on local requirements due to climate, economics, and local priorities. </li></ul></ul><ul><ul><li>Varying sustainability policies: may be implemented at the local levels; or states are driving environmental policy with statewide efficiency and environmental mandates. </li></ul></ul><ul><ul><li>Product testing and certification, along with highly skilled regional distributors, will be key to addressing this issue. </li></ul></ul>
  23. 23. Potential Obstacles to Success (cont’d) <ul><li>Increasingly crowded marketplace </li></ul><ul><ul><li>Cement producers, block manufacturers, and insulation manufacturers are aggressively recasting their products as green choices., and they have large marketing budgets to support their efforts. </li></ul></ul><ul><ul><ul><li>Leads to “greenwashing,” which creates skepticism among many consumers. </li></ul></ul></ul><ul><ul><ul><li>With few clearly defined parameters for what defines a green. </li></ul></ul></ul>
  24. 24. Potential Obstacles to Success (cont’d) <ul><li>Customer motivations </li></ul><ul><ul><li>Research suggests that the primary drivers for residential buyers of green homes are energy efficiency, reduced operating costs, and health benefits. </li></ul></ul><ul><ul><li>Non-residential occupants report that operating costs; employee retention and performance; brand enhancement and health benefits. </li></ul></ul><ul><ul><li>Climate change and carbon liability are not reported as primary motivators for either group, which suggests that the carbon-negative position of Hemcrete® is less compelling than demonstrated health benefits, thermal efficiency and comfort that green design offers. </li></ul></ul>
  25. 25. Projected Company Growth <ul><li>American Lime Technology anticipates completion of 100 projects between 2010 and 2012. These projects will serve as models for Hemcrete® use in North America. </li></ul><ul><li>During the completion of these projects the goal will be to bring some to the commercial and municipal sectors. Operating costs during this time will be supplemented by upfront investment. </li></ul>
  26. 26. Time Line <ul><li>The target is to have an operational facility in Alberta, Canada to coincide with the 2012 harvest. </li></ul><ul><li>The business plan and funding will have to be completed by September 2011, there is a one year lead time on the equipment. </li></ul><ul><li>Complete growing trials in 2011 with the straw being processed at the ARC pilot facility. This will provide some fiber for market testing and shiv for exemplar contraction projects. </li></ul><ul><li>Preliminary feasibility studies should be completed by April 2011. </li></ul>
  27. 27. Key Management Team <ul><li>Mario Machnicki, Managing Director of American Lime Technology </li></ul><ul><li>Ian Pritchett, Founder, Lime Technology UK </li></ul><ul><li>Mike Duckett, Hemp Technology </li></ul><ul><li>Representative, Hemp Decortication Facility </li></ul><ul><li>Investor Representative(s) </li></ul>