Carbon cultures lecture 7 partners

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The document outlines Carbon Cultures' potential revenue models, including: 1) A fee-for-biomass model where they charge landowners a fee to remove waste biomass from properties. 2) Generating revenue from the sale of biochar and consulting services to help clients implement biochar systems. 3) Potential franchise models are discussed where Carbon Cultures licenses their pyrolysis technology and provides training to partners. The document also discusses packaging and pricing biochar for different market segments and notes some key contacts made with potential partners.

Education Technology Business

Revenue Model
November 8, 2011

Operation Carbon Cultures
Fee for
Marketing Jenny Knoth
Biomass
Dan Schwartz

Jeff Canin

Land Owner Carbon Direct
Cultures Model

Services:
Waste Removal
Revenue Biochar
Generation
Consultation Sales

Biochar
Sales
November 8, 2011
Hypothesis
Carbon Cultures

Fee for Jenny Knoth

Biomass
Franchisee Fee or Free Quality
Certification Dan Schwartz

Fee or Free Jeff Canin
Hypothesis Hypothesis

Pryolysis Marketing Franchise
Land Owner System Training Leads
Model ??
First Look
Fee or Free

% Biochar
Revenue Carbon Sales
Generation Cultures Hypothesis

How will we price our product? (biochar, not system)

New product in existing market
– not directly competing with compost
more of an additive value

Interviews gave us range of feedback

Depends on Packaging

Packaging of Biochar

 Smaller high end market
 Bulk – customers buy by the pound
 Ground to small size
 Larger mainstream market
 Bagged or mixed in with compost – 1.5 cu yard
bags, or smaller 2.2L bags

 Large scale landscape level supplier
 Truck load unprocessed
 Maybe left on site – restoration

Competitor’s Pricing and Packaging

Large delivered or shipped bags 1.0 cu yards
Biochar Solutions = $300 listed on web

Small bags sold retail and mail order – 2.2 dry liters
3 brands = $4- $6 retail

Not found as an “add-in” in compost or soil mixes

Truck load bulk - Forest Service pays ~$1500/t

Rough Income Statement:
Cost Revenue Income
Biomass Fee Biochar Sale
$5-10/ton $1500 –
$4000 /ton
Blanket
$5000
Durable but?
Blanket /Tech
Sale
License
?
Rental

Operations
$50/ton

The Business Model Canvas Channel Hypothesis Still = B 2 B

Air Quality Landowners-
Landowners Crew Training Improvement Wood waste
Personal
generators
Assistance
Blanket Secure feedstock Waste Removal
Manufacturer Biochar user -
C - Sequestration Retail Gardening
Education Landscape Designe
R.E.Credits
WA DNR Marketing
Increased Soil Biochar user-
Distributors Productivity with Industrial
Lower inputs
IP & Direct Sale
Biochar Know How Biochar user -
Reduce Run Off Retail Agricultural
Advocates Relationships
With Wholesale
Landowners Reliable Low Cost
Biomass
Char source
Franchise Contractors

Field Blanket sale/
Distribution Operation Franchise
Sale of Biochar
Capital
Service For
People Fixed costs
Waste Removal

Some important Missed Calls...

Royal Oak, LLC (2nd largest charcoal company)

Cedar Grove Compost – Trying to break the ice

SunGro – big soil amendment company, local

Rainier Wood Recyclers – waiting on call back

Etc.

Good Contacts Made:

Jake at Rexius – knows about biochar wants more quantitative data so he knows
the economic value

Rob Harrison. PhD soil scientist – gets our first cubic yard for a replicated trail in a
high-vis area. Demonstrate how less inputs will still be high gain – fertilizer and
pesticide holding, etc

Carson Sprenger – Enthusiast, consultant – noted desperation of landowners..
Might be place to start franchise??

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