Biodigester Inc. Mike McKevitt Jimmy Wright Iain Stables Dave Puech.
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Transcript of Biodigester Inc. Mike McKevitt Jimmy Wright Iain Stables Dave Puech.
Biodigester Inc.Biodigester Inc.
Mike McKevittMike McKevitt
Jimmy Wright Jimmy Wright
Iain StablesIain Stables
Dave PuechDave Puech
Business ProposalBusiness Proposal
Manure Biodigester – Manure Biodigester – incorporated into a incorporated into a 5,000 head feedlot5,000 head feedlot
Situated near Situated near Rosetown in west Rosetown in west central central SaskatchewanSaskatchewan
Project OverviewProject Overview
Process raw manure into two value Process raw manure into two value added productsadded products
Methane gas which will be burned to Methane gas which will be burned to generate electricitygenerate electricity
An enriched form of fertilizerAn enriched form of fertilizer
Methane GasMethane Gas
Produced during microbial breakdown of Produced during microbial breakdown of manuremanure
Used to create electricityUsed to create electricity
FertilizerFertilizer
More concentrated form than the raw More concentrated form than the raw productproduct
Can be classified as an organic fertilizerCan be classified as an organic fertilizer
Can be sold in bulk liquid form or may be Can be sold in bulk liquid form or may be dried and packageddried and packaged
Long-term BenefitsLong-term Benefits
EnvironmentalEnvironmental Reduction in air, soil and water pollution Reduction in air, soil and water pollution
associated with ILO’sassociated with ILO’s
Added jobs to the rural economyAdded jobs to the rural economy
Adding to the profitability and long term Adding to the profitability and long term viability of a farming enterpriseviability of a farming enterprise
Facility LayoutFacility Layout
Physical Product FlowPhysical Product Flow
Capital BudgetCapital Budget
Site Costs 178,000
Equipment Costs 1,626,694
Net Working Capital 43,873
Total Capital Required 1,848,567
MarketingMarketing
ProductsProducts
Energy will be marketed as environmentally Energy will be marketed as environmentally friendlyfriendly
Fertilizer will promoted as an organic fertilizerFertilizer will promoted as an organic fertilizer
Future MarketsFuture Markets
Dry packaged fertilizerDry packaged fertilizer
Needs addition of a water press to the facilityNeeds addition of a water press to the facility
Gives the opportunity to sell to gardeners, Gives the opportunity to sell to gardeners, greenhouses, etcgreenhouses, etc
Pricing StrategyPricing Strategy
Price received for energy will be Price received for energy will be controlled by SaskPowercontrolled by SaskPower
Fertilizer price will be determined by Fertilizer price will be determined by market forcesmarket forces
PromotionPromotion
Will take place through brochures, web Will take place through brochures, web page and word of mouthpage and word of mouth
Sales will be done directly without the Sales will be done directly without the need for distibutorsneed for distibutors
Fertilizer sales will be targeted at golf Fertilizer sales will be targeted at golf coursescourses
Marketing BudgetMarketing Budget
2006 2008 2010 2012 2014
Vehicle(Lease, Fuel & Insurance) 10,776 10,776 10,776 10,776 10,776
Telephone 2,160 2,247 2,338 2,433 2,531
Brochures 1,590 1,931 2,345 2,848 3,458
Webpage 2,500 306 318 331 345
Total Marketing Expenses 17,026 15260 15,777 16,388 17,110
Sales ForecastSales ForecastYear 2006 2007 2008 2009 2010
Sales 367,400 361,888 389,526 397,316 405,263
COGS 147,543 316,538 265,128 224,163 191,611
Gross Margin 219,857 65,351 124,397 173,153 213,652
Expenses 80,503 73,321 68,683 63,724 58,422
Net Income Before Tax 139,354 (7,970) 55,714 109,429 155,230
Income Tax 15,106 0 5,175 11,862 16,827
Net Income After Tax 124,248 (7,970) 50,539 97,567 138,403
Total Net Cash Flow to Equity 332,933 190,299 191,451 191,240 192,818
Financing BudgetFinancing Budget
Total Financing Required 1,795,335
Long Term Debt 897,677
Owners Equity 897,677
Total Financing 1,795,335
Dividend PolicyDividend Policy
Estimated dividends Estimated dividends paid to investorspaid to investors
2006 2007 2008 2009 2010
(268,303) 59,057 184,792 185,834 185,490
Sales Forecast - EnergySales Forecast - Energy
2006 2008 2010 2012 2014
Quantity Sold (kWh)
1,500,910 1,500,910 1,500,910 1,500,910 1,500,910
Price($/kWh) 0.11 0.11 0.12 0.12 0.13
Revenue($) $165,100 $171,770 $178,710 $185,930 $193,441
Sales Forecast - FertilizerSales Forecast - Fertilizer
2006 2008 2010 2012 2014
Quantity Sold (m3)
26,600 26,600 26,600 26,600 26,600
Price ($/m³) 5.50 5.72 5,95 6.19 6.44
Revenue ($) 146,300 152,211 158,360 164,758 171,414
Sales Forecast – Manure Sales Forecast – Manure RemovalRemoval
Year 2006 2008 2010 2012 2014
Quantity Sold (kWh)
28,000 31,500 31,500 31,500 31,500
Price($/m³) 2.00 2.08 2.16 2.25 2.34
Revenue($) 56,000 65,545 68,193 70,48 73,815
Organizational StructureOrganizational StructureSaskEnergy
(30%)Biodigester
Founders (70%)
Board of DirectorsSaskenergy(1) Biodigester(2)
President/CEO
Manager
Technician
EmployeesEmployees
General ManagerGeneral Manager Oversees day to day operationsOversees day to day operations MarketingMarketing General office dutiesGeneral office duties
TechnicianTechnician Perform required maintenancePerform required maintenance Fill and monitor digester tanksFill and monitor digester tanks
Employees – cont’dEmployees – cont’d
Temporary Maintenance crewTemporary Maintenance crew
Seasonal employeesSeasonal employees
Help with general upkeep of facilityHelp with general upkeep of facility
General AssumptionsGeneral Assumptions
Biodigester will be filled continuously and the Biodigester will be filled continuously and the fertilizer will be removed regularlyfertilizer will be removed regularly
Manure will be readily available year roundManure will be readily available year round
The loan will have a fixed interest rateThe loan will have a fixed interest rate
General AssumptionsGeneral Assumptions
Able to secure equity financingAble to secure equity financing
Inflation rates will remain at or near the Inflation rates will remain at or near the same levelsame level
Biodigester is able to contract the energy, Biodigester is able to contract the energy, fertilizer and manure removalfertilizer and manure removal
ConclusionConclusion
Employee training will be criticalEmployee training will be critical
Feasibility of a biodigester in Feasibility of a biodigester in SaskatchewanSaskatchewan