Blue Biofuels, Inc. · OTC:BIOF
Blue Biofuels — Investor Presentation (November 2020)
35 slides from Blue Biofuels's investor presentation, Nov 30, 2020
Slide 1: A Revolutionary process that converts Cellulosic Feedstocks into Sugar and Lignin
https://www.dmt‐int.com/news/buhler‐miag‐flourplant A Revolutionary process that converts Cellulosic Feedstocks into Sugar and Lignin for use in Biofuels and Bioplastics production November 30, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements • This document contains forward‐looking statements. Statements other than statements of historical fact contained in this document may be forward‐looking statements, including, without limitation, management’s expectations, intentions and beliefs concerning the results of
Slide 3: Mission
Mission To produce renewable fuels and biodegradable plastics from cellulosic materials at lower cost than from corn or fossil fuels In an environment friendly and CO2 neutral process Patent‐pending revolutionary Cellulose to Sugar (CTS) process converts cellulose to sugar and lignin, then subsequen
Slide 4: Cellulosic Biofuels
Cellulosic Biofuels Ethanol mixed into gasoline Cellulose Sugar Ethanol and converted Forestry Waste to other fuels Gasoline Blue Biofuels CTS 2.0 converts any cellulose matter to King Grass sugar and lignin Jet Fuel quickly, completely and economically. The sugar is converted to ethanol, which can
Slide 5: Biodegradable Bio-Plastics
Biodegradable Bio‐Plastics Cellulose Lignin Biodegradable Bio‐Plastics Utensils Farm Waste Blue Biofuels CTS 2.0 converts any cellulose matter to sugar and lignin Cellulosic quickly, completely Cups portion of and economically. The lignin is converted Municipal solid to bioplastics, which Waste can
Slide 6: Biofuels Market Size: Hundreds of Billions of $ per year
Biofuels Market Size: Hundreds of Billions of $ per year • Ethanol: 15 billion gallons of ethanol produced each year in the US alone : 10 % of gasoline volume is mandated to be ethanol. If cellulosic ethanol becomes available on large scale this is likely to grow. Presently exports are down due to t
Slide 7: Plastic Products Market Size: Over a Hundred Billion $/yr
Plastic Products Market Size: Over a Hundred Billion $/yr Target Market: • Plastic Straws: over 500 billion straws per year. • Plastic Utensils: 40 billion per year. • Plastic Cups: 500 billion used each year. • Coffee Cups: 16 billion disposable coffee cups used each year. Later Phase: • Plastic ba
Slide 8: Cellulosic Biofuel Production: Historical Challenges
Cellulosic Biofuel Production Historical Challenges of Competing Cellulosic Sugar Generation • Most other companies processes employ corrosive chemicals to hydrolyze the hemi‐cellulose component requiring expensive metallurgy. • The combination of reactive chemicals, high temperatures, and reaction
Slide 9: Blue Biofuels CTS Process a Technology Breakthrough!
Blue Biofuels CTS Process a Technology Breakthrough! • Blue Biofuels has a new patent‐pending and proprietary technology that efficiently and effectively converts cellulose into its components of sugar and lignin. • It is extensively proven in prototype CTS 2.0 reactors to be 1500+ times more energy
Slide 10: Cellulosic Biofuel Production: Competing Technologies
Cellulosic Biofuel Production Competing Technologies • Four primary, costly, inefficient, and wasteful methods of breaking down cellulose exist today. • Cellulose is “recalcitrant,” termed by scientists, because of how difficult it is to break down in an economic manner, until now… • The CTS process
Slide 11: Blue Biofuels Biomass Strategy
Cellulosic Biofuel Production Blue Biofuels Biomass Strategy • Blue Biofuels’ CTS 2.0 can convert cellulose into sugar and lignin with a rapid mechanical process, no waste, 95+% conversion for a very low cost. • The technology can, at last, make use of the abundant quantities of waste lignocellulosi
Slide 12: Biomass Feedstock I: Forestry or Agriculture Waste
Cellulosic Biofuel Production Blue Biofuels Biomass Feedstock I: Forestry or Agriculture Waste • Forestry Waste is about 1/3rd of total forestry biomass. • Often left after logging of trunks. • Consistent supply in quantity available in Canada and elsewhere. • Plans to make deal with forestry compan
Slide 13: Biomass Feedstock II: MSW to Sugar
Cellulosic Biofuel Production Blue Biofuels Biomass Feedstock II: MSW to Sugar Yearly the USA produces 250+ million tons of municipal solid waste, the paper, wood, and yard trimming fractions represent 46.7 % of this 250 million tons. This means the cellulosic waste fraction is 116 million tons per
Slide 14: Biomass Feedstock III: King Grass to Sugar
Cellulosic Biofuel Production Blue Biofuels Biomass Feedstock III: King Grass to Sugar • Cultivate Giant King Grass in Florida under contract with farmers and ranchers. • Excellent yield/Acre. • King Grass already successfully grown in Florida. • Available for commercial harvest in first year after
Slide 15: Cellulosic Ethanol v Corn Ethanol
Cellulosic Ethanol v Corn Ethanol • Regular fermentation and distillation converts sugar into ethanol just like in the widely used process to make wines and beers. • Presently, most ethanol is made from Corn with ~40% of the US corn harvest used for ethanol production. • Ethanol from corn or sugar c
Slide 16: Renewable Fuel Standard
Renewable Fuel Standard • The EPA adjusts the renewable fuel mandate each year. The US EPA renewable fuel standard (RFS) mandates the blending of renewable fuel into fossil fuels sold, or companies pay a fine. Cellulosic ethanol is the smallest category (D3) and mandated volume for 2020 is: 590 MM g
Slide 17: Historic Corn and Ethanol Prices
Historic Corn and Ethanol Prices Year Corn ($/bushel)1 EtOH ($/gallon)2 2008 5.30 1.60 2009 3.75 1.79 2010 4.30 2.33 2011 6.80 2.16 2012 6.92 2.46 2013 5.69 1.89 2014 4.16 1.37 2015 3.78 1.43 2016 3.60 1.49 2017 3.62 1.39 2018 3.70 1.28 2019 3.85 1.35 2020 4.30 1.37 1Average closing price taken from
Slide 18: Our Feedstock Beats the Competition
Our Feedstock Beats the Competition Feedstock Giant King Grass Corn Corn Stover (used in CTS process) $3.25/bu $4.00bu $4.75/bu Corn or Biomass Input Cost $30/BDT1 $35/BDT $40/BDT $135/BDT1 $167/BDT $198/BDT $60/BDT $70/BDT $80/BDT Avg % of Feedstock that 66% 66% 66% 66% 66% 66% 72% 72% 72% Is Con
Slide 19: CTS Ethanol beats the competition
CTS Ethanol beats the competition Expected Cost Comparison based on 60 million gal/year production facility Acid/Enzyme Hydrolysis Component Blue Biofuels CTS Cellulosic Corn Ethanol Process Cellulosic $3.25/bu $4.00/bu $4.75/bu Corn or Biomass Input Cost $25/BDT0 $35/BDT1 $55/BDT2 $35/BDT1 $55/BDT2
Slide 20: Ethanol Industry: Current Reality
Ethanol Industry: Current Reality • 10% gasoline blend mandate is solidly in place in the US. • Needed as anti‐knocking agent. • Lower carbon footprint than gasoline. • Year‐round E15 gasoline approved for sale by US government in 2019. • 10% ethanol‐gasoline blend beginning in China. • Cellulosic b
Slide 21: Market Penetration Opportunities
Market Penetration Opportunities 1. Joint Venture to bolt‐on CTS 2.0 to existing corn ethanol facilities and/or MSW facilities. 2. Selling licenses to MSW facility to produce sugar and lignin, or license to existing corn ethanol facility owners to convert to cellulosic fuels. 3. Buying corn ethanol
Slide 22: Growth Strategy in Biofuels
Growth Strategy in Biofuels Blue Biofuels’ CTS 2.0 technology is expected to be the lowest cost producer of ethanol. • 2,300 ethanol producers worldwide; over 200 in the US. • Almost all use corn starch or sugarcane to make ethanol and all would benefit from a lower cost method of obtaining feedstoc
Slide 23: Biodegradable Bioplastics
Biodegradable Bioplastics Highest Purity Lignin: • Unlike lignin from other companies, our lignin remains unmodified due to our chemical‐free process. Test reveal it to be the highest purity lignin. • With a moderate amount of capital to recover the lignin, our lignin would have many potential value
Slide 24: Further Investment opportunities
Further Investment opportunities After finalizing the CTS 2.0 reactor, the following opportunities may be available for commercialization: • $5‐10 million: JV to bolt‐on CTS 2.0 to corn ethanol and/or MSW facilities. • $25 million: 8 MMgpy CTS 2.0 Demo Plant generating $13 MM/yr in profits. • $90 ‐
Slide 25: Current Situation, Nov. 30, 2020
Current Situation, Nov. 30, 2020 • Developed CTS 2.0 in 2018 that is 1500+ times more energy efficient than original technology; currently patent pending. • Wiped millions in debt off the books and exited Chapter 11 on September 17, 2019, with no class impaired. • New Company, new technology, new na
Slide 26: Management Team
Management Team • Ben Slager, CEO & Chairman of the Board • Ben is a serial entrepreneur with 30 years of professional experience in starting, developing, and selling technically innovative companies. He was the Founder and CEO of NedCard and MicroIdentt a company assembling chips for bank cards and
Slide 27: Management Team
Management Team • Anthony Santelli, Ph.D, CFO & Board Member • Anthony is the Founder of AES Financial Advisors, LLC, an entrepreneurial consulting firm that has started, helped finance, or turnaround various private companies and micro‐cap publicly traded companies concentrating in the mining and e
Slide 28: Management Team
Management Team • Patrick Simms, VP of manufacturing & engineering. • Patrick has a record of innovative technical, operations, business development, and project management over a 50 year career including senior management positions at various companies. He has successfully scaled up and commerciali
Slide 29: Management Team
Management Team • George Bolton, Board Member • George is a seasoned business professional with deep experience in agriculture production. From the management of fertilizer and chemical plants, to the development and integration of a precision farming system for a national fertilizer and chemical di
Slide 30: Management Team
Management Team • Charles Sills, Government Relations & Board Member • Charles has extensive experience planning & directing international energy and environmental initiatives, having served as a member of the Danube Task Force and other major infrastructure projects. He has been engaged in the rene
Slide 31: Management Team
Management Team • Ned Burke, Board Member • Ned has been in the financial services industry for 36 years, having recently retired as CEO of ALPS Holdings Inc. He became President of ALPS in 2000 and CEO in 2005 when ALPS was acquired by PE firm Lovell Minnick Partners. Ned grew revenues 20 fold duri
Slide 32: Advisory Board
Advisory Board • Gerry David, Advisory Board Member • Gerry is a Senior Executive, Entrepreneur, Consultant, and Board Member with more than 40 years of success across the consumer products, manufacturing, and high‐tech industries. He has led comprehensive turnarounds of both public and private comp
Slide 33: Advisory Board
Advisory Board Steven Sadaka, Advisory Board Member • Founded StevenDouglas in 1984 and it is currently the 30th largest executive search firm in the country with 16 offices and 350 employees. Steve’s expertise is in attracting talent, building effective leadership teams and creating high performing
Slide 34: Advisory Board
Advisory Board Richard Bindler, Advisory Board Member • Richard Bindler is currently the Managing Partner for Bindler Investment Group (BIG). BIG invests family assets primarily in early stage, relatively illiquid investments. Prior to BIG, Rich spent 28 years as a senior level executive at Bernstei
Slide 35: Address and Contact
Address: 3710 Buckeye Street, Suite 120 Palm Beach Gardens, FL 33410 Contact: Ben Slager, Chief Executive Officer [email protected] 561‐717‐0571 Anthony Santelli, Chief Financial Officer [email protected] 561‐359‐8222 Website: www.bluebiofuels.com November 30, 2020
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