Post on 19-May-2015
WTIA Smart Biofuels PresentationJune 2010
OVERVIEWGeneral 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
0102030405060708090
100
WA LCFS(gCO2e/MJ)
(5)
20
45
70
95
120
RCO Biodiesel
Cellulosic Ethanol
Natural Gas
Soy Biodiesel
Petro Diesel
Electricity
California LCFS (gCO2e/MJ)
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 thatRCO biodiesel is one of the lowest carbon fuels made
3
RCO Biodiesel has
an 80% to 86%
Carbon Reduction
versus DieselGB
FUEL
GB
FUEL
GB
FUEL
0
1000000
2000000
3000000
RCO Biodiesel
Soy Biodiesel
Sugarcane Ethanol
Corn Ethanol
Petro Diesel
U.S. EPA(gCO2e/mmBtu)
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
WHY LOW CARBON FUEL IS IMPORTANT
5
RESTAURANT SERVICES BUSINESS
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Q108A Q208A Q308A Q408A Q109A Q209A Q309A Q409A Q110A Q210B
Quarterly UCO Collection
6
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
ACCELERATING GROWTH
Accelerating Growth In 2010
7
HOW WE SCALE RESTAURANT SERVICESGreenPartner 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
8
BIODIESEL BUSINESS
9
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
UNIQUE VALUE PROPOSITION
SUSTAINABLE COST ADVANTAGE
10
Gross
Margin
Production Cost
of Soy Biodiesel
Market Price of
Biodiesel
GB Fixed Production Cost of Biodiesel
on Captive Feedstock at 3 MGY Scale
Cost
Benefit of
Captive
Feedstock
11
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
MANAGEMENT
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
BOARD & ADVISORS
13
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
WELL POSITIONED FOR CONTINUED GROWTH