Building a Regional Bioeconomy Seminar. Sustainable Biojet / Green Diesel Solutions. Mike Cey (P.Ag. EMBA) Ag-West Bio Inc. Saskatoon, SK.

Transcription

1 Building a Regional Bioeconomy Seminar Sustainable Biojet / Green Diesel Solutions Mike Cey (P.Ag. EMBA) Ag-West Bio Inc. Saskatoon, SK.

2 Agrisoma: Building a Sustainable Biomass Value Chain Agrisoma is a commercial-stage, multi-national company expanding sales of Carinata seeds a non-food, sustainable crop grown to produce oil for biofuels and sustainably produced animal feed To date: Commercial production of Carinata seed products on over 32,000 acres Delivered more than 2.5 Million litres of feedstock (oil) for biofuels along with 19 Million pounds of sustainable feed meal Proven feedstock in multiple Hydrotreating processes Established the value chain necessary for scaling in North America, South America and Europe Strategic global relationships in place that build value Agrisoma is leveraging established oilseed value chains to scale Carinata as a economic and sustainable biofuels feedstock

3 Scalable Value Chain: Leveraging an Established Agricultural Value Chain Carinata has been efficiently moved through each step in the Value Chain Seeds Business Strong Gross Margin Lowest Risk Effective Inventory Management Farming Key customer Risk management important Options to mitigate commodity swings Elevation & Transportation High Volume Dependant Multiple locations and service providers Crusher Strategically located and operate on large volumes Meal value key component in crush equation Biofuel Manufacturer Global locations in proximity to crush Feedstock costs Regulatory environment

4 Carinata Agronomic Performance Carinata outperforms other feedstock crops Carinata vs Canola (Food Crop) Under Drought Focus on production in areas where other crops won t grow: Second crop option for winter production, or rotation in dryland Outperforms other crops in marginal soil zones under extreme environmental stress Extremely tolerant to drought, heat and frost high yields where other crops fail Full agronomic package developed for key production regions from planting to harvest

5 Oil and Meal Products from Carinata

6 Completed Commercialization Milestones Demonstrating Key Attributes for the Commercial Demand Currently in place: Sustainability Certification Regulatory Approvals Agronomic Performance Sustainable Business Model Established Supply Chain Comparable Feedstock Performance Agrisoma has aggressively demonstrated these key enablers at commercial scale to create a global opportunity

7 Agrisoma Seeds Business: Selling the Seeds that Feed the Value Chain Agrisoma develops new varieties of Carinata Have used multiple parties to develop contracting programs: Canada, USA, South America We have shipped, stored and crushed grain with major value chain partners Have successfully introduced and grown the crop in multiple geographies

8 Building a Global Biomass Supply Chain 90 Million Acres of Marginal Land and Second Cropping Canada USA Europe Southeastern USA Canola Pricing So. America Nurseries Focus on Commercialization in Low-Cost Production Regions (Hot, Dry, Second Crop Options) to Drive Economics and Scale Current Production Future Expansion Australia

9 Economic Sustainability: Checklist Farmer: Reduced risk profile for the farmer with competitive returns Good rotation benefits, no new equipment needed Clear pricing on contract and guaranteed demand Value Chain: Elevation and logistics with similar margins Margins (Crush) similar or better High protein meal for value capture Biojet Manufacturer: Can compete with existing feedstocks (including RINs) Ready to use, clean carbon, no clean up Traceability, full LCA and carbon monetization

10 Making History: Carinata Powers World s First 100% Biojet Flight The world's first civilian flight powered by 100% biofuel made from Carinata took off in Ottawa, flew over Montreal and back, with Popular Science showcasing this as the big story for sustainable biofuels

11 The Focus: Aviation - a Growing Market Limited by Emissions Aviation burns 60 Billion gallons of fossil fuel per year. Aviation emits 690 Million Metric Tonnes of CO2 per year From the first flight in 1903 to today we continue to burn more fossil fuels and emit more GHG 9% of transportation emissions growing to 15% if unabated Airborne (altitude) emissions are 2-3X more detrimental With 7 Billion people on the earth with over 3 Billion flying: more flights, more passengers, more emissions Greater consumption of animal protein, increasing demand for food from limited farmlands, increasing drought and demand on water resources

12 Aviation Has a Strategy to Reduce Emissions: Biojet is a Key Component

13 Biojet and Carbon Measures: The Key Enablers for Global Aviation Biojet and Carbon Credits are the key solution

14 The Carinata Advantage: Fuel plus Carbon Offsets Carinata can provide both fuel and carbon offsets The combination of the value add for Carbon has now risen in prominence as climate solutions are in demand This is a unique opportunity back by strong science, public policy and market demand for both fuel and offsets.

15 How does Carinata solve Aviation s Challenges? A low Carbon Fuel &Carbon Credits Aviation s Criteria for Renewable, Low Carbon Fuels : Made from Non- Food Sources Low Indirect Land Use Change Sustainable Production e.g., RSB Certified Competitive Economics of the System Carinata Meets and Exceeds the Criteria Non-food, Sustainable Production, low water demand Scalable within existing farming operations Ability to use existing farming and processing infrastructure Makes high quality biojet and feed by-product Can be grown globally

16 Sustainability is the Business Model Carinata is a sustainable and scalable feedstock option new drivers are in place to grow the business Aviation is now undertaking new business models that can leverage the sustainable advantage agriculture delivers Agriculture is recognizing the potential for dedicated industrial use crops, the need for sustainable production and new income options Carinata offers aviation and agriculture a new opportunity to achieve sustainability and to address mandated GHG reductions

17 Thank You Questions Comments