Blue Sky Biomass - Project Description and Opportunity Document
-
Upload
martin-tindall -
Category
Economy & Finance
-
view
762 -
download
4
description
Transcript of Blue Sky Biomass - Project Description and Opportunity Document
B l u e S k y B i o m a s s
RENEWABLE ENERGY RESOURCES DELIVERING PRODUCTION AND DISTRIBUTION OF INDUSTRIAL GRADE
WOOD PELLETS FOR EXPORT AND DOMESTIC POWER GENERATION
www.blueskybiomass.com www.facebook.com/blueskybiomass
PRESENTED BY:
KRONOS INTERNATIONAL INVESTMENTS LIMITED
Securities Law Disclaimer: The information contained herein has been prepared for informational purposes and is not an offer to buy or sell or a solicitation of an
offer to buy or sell any security or to participate in an investment strategy. Any offering of securities shall be pursuant to a definitive
Confidential Private Placement Memorandum, LLC Operating Agreement, Investor Suitability Questionnaire and Subscription
Agreement, which may supersede this information in its entirety. This summary is intended to be distributed to and viewed only by
Accredited Investors and Non-US Investors as defined by the Securities Act of 1933.
Kronos International Investments Limited
Blu
e S
ky B
iom
ass
C O N C E P T
Consolidate several startup tree, pellet and green waste removal companies
Construct modular pellet plants, initially in Georgia, Oklahoma and California then across the United States
Source waste wood product, such as city waste, forest clean up, invasive plant removal
Plant and grow biomass specific forests **
Produce wood pellets for export and domestic consumption, in clean power production and heat generation
Distribute and sell distribute wood pellets via rail, road and sea
Certify and sell carbon offset credits and other clean energy compliance credits
** Blue Sky Biomass uses select strains of Paulownia trees, that are specifically grown to create high
yielding, annually harvested biomass feedstock to maximize product delivery.
Project finance is to be supplied through foreign investment in US job creation,
through a United States Citizenship and Immigration Service
EB5 – Employment Based Investment Visa Program.
Kronos International Investments Limited
Blu
e S
ky B
iom
ass
E N G E N - B S R
Blue Sky Biomass partners have licensed the select strain of paulownia trees known as Engen-BSR™. These
deciduous hardwood trees are pest and disease resistant, combined with their fast growth, (appx 20-25ft / year)
makes the Engen-BSR specifically suited for biomass feedstocks production.
Producing annually over 32 tonnes per acre, the Engen-BSR trees regenerate themselves from the stump without
replanting, producing annual rotational harvesting for a period of up to 50 years.
Kronos International Investments Limited
Blu
e S
ky B
iom
ass
W O O D B I O M A S S P E L L E T S
Wood biomass pellets are renewable energy resources. Small nuggets of compressed wood fiber sawdust,
pellets are used worldwide to generate heat and energy for the following reasons:
Compact size and portability
High energy density
Low moisture content (below 10%)
Carbon Neutral power generation and reduced overall emissions
Easily adaptable to automated combustion systems
A variety of wood sources (“feedstock”) can be used to produce pellets.
The use of waste wood products, including invasive species management, combined with fast growth,
renewable forests, create a reliable and consistent inventory, an easy-to-plan harvesting cycle, and a well-
defined supply chain.
Kronos International Investments Limited
Blu
e S
ky B
iom
ass
B I O M A S S P E L L E T FA C I L I T Y P R O F O R M A
Kronos International Investments Limited
Blu
e S
ky B
iom
ass
B I O M A S S F O R E S T P R O F O R M A
Acres 3,000.00 UNIT TOTAL Y1 Y2 Y3 Y4 Y5 Y6 Y7
Trees planted 2,040,000
yrs 2-11 harvest 2,040,000 2,040,000 2,040,000 2,040,000 2,040,000 2,040,000 2,040,000
Annual tonne's 200,000 200,000 200,000 200,000 200,000 200,000 200,000
$per/tonne (wet) 3% increases 40$ 8,000,000$ 8,240,000$ 8,487,200$ 8,741,816$ 9,004,070$ 9,274,193$
INCOME
2-10 yr harvest 91,711,034$ 8,000,000$ 8,240,000$ 8,487,200$ 8,741,816$ 9,004,070$ 9,274,193$
Total Income 91,711,034$ -$ 8,000,000$ 8,240,000$ 8,487,200$ 8,741,816$ 9,004,070$ 9,274,193$
EXPENSES Y1 Y2 Y3 Y4 Y5 Y6 Y7
1,500,000$ 1,500,000$
1,980,000$ 180,000$ 180,000$ 180,000$ 180,000$ 180,000$ 180,000$ 180,000$
Admin Annual 640,390$ 50,000$ 51,500$ 53,045$ 54,636$ 56,275$ 57,964$ 59,703$
640,390$ 50,000$ 51,500$ 53,045$ 54,636$ 56,275$ 57,964$ 59,703$
2,561,559$ 200,000$ 206,000$ 212,180$ 218,545$ 225,102$ 231,855$ 238,810$
300,000$ 300,000$
Tree Planting 300,000$ 300,000$
6$ 12,240,000$ 12,240,000$
225$ 6,750,000$ 675,000$ 675,000$ 675,000$ 675,000$ 675,000$ 675,000$ 675,000$
403,182$ 200,000$ 20,000$ 20,600$ 21,218$ 21,855$ 22,510$ 23,185$
70,000$ 70,000$
Harvesting ($3.00 per tonne) 6,878,328$ 600,000$ 618,000$ 636,540$ 655,636$ 675,305$ 695,564$
2,292,776$ 200,000$ 206,000$ 212,180$ 218,545$ 225,102$ 231,855$
1,280,780$ 100,000$ 103,000$ 106,090$ 109,273$ 112,551$ 115,927$ 119,405$
Total Project Costs YR 1-10 3% Increases 37,837,404$ 15,865,000$ 2,087,000$ 2,123,960$ 2,162,029$ 2,201,240$ 2,241,627$ 2,283,226$
Total EBITDA 53,873,631$ (15,865,000)$ 5,913,000$ 6,116,040$ 6,325,171$ 6,540,576$ 6,762,444$ 6,990,967$
YEARLY CASH FLOW YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7
135,000$ 3,024,000$ 4,570,020$ 5,447,596$ 9,029,788$ 15,792,231$
16,000,000$ 8,000,000$ 8,240,000$ 8,487,200$ 8,741,816$ 9,004,070$ 9,274,193$
(15,865,000)$ (2,087,000)$ (2,123,960)$ (2,162,029)$ (2,201,240)$ (2,241,627)$ (2,283,226)$
6,048,000$ 9,140,040$ 10,895,191$ 11,988,172$ 15,792,231$ 22,783,198$
50% 16,000,000$ 3,024,000$ 4,570,020$ 5,447,596$ 2,958,384$ -$
135,000$ 3,024,000$ 4,570,020$ 5,447,596$ 9,029,788$ 15,792,231$ 22,783,198$
Total Revenue 91,711,034$
(37,837,404)$
53,873,631$
Fertilizer per Acre
Land Prep
Pest cntrl & Fencing
Field Trucks
FINANCIAL SUMMARY
Balance
Total Expenses
Expenses
Development Costs
Trucking ($1.00 per tonne)
Return of Capital
Prior Year
Income
Labor Maintenance
Net Operating Capital
Net Profit
PRODUCTION
Seedlings/Planting/Warranty
Foreman w/burden
Land Lease
Contingency
Kronos International Investments Limited
Blu
e S
ky B
iom
ass
C A R B O N C A P I TA L PA R T N E R S
Blue Sky Biomass has engaged Green Giant Venture Fund to produce the Project Design Documents and
secure forward and future sales of the Carbon Credits and other environmental commodities that are
created through the plantations and biomass use as fuel replacement for coal.
Green Giant Venture Fund has taken an equity stake position in Blue Sky Biomass. As an operating
partner has also agreed to develop and forward sell/broker the Climate Reserve Tonnes (CRT credits)
available for these projects under North America's Climate Action Registry Forestry protocol.
Green Giant Venture Fund is a registered service provider for;
World Bank- Carbon Finance
United Nations Framework for Convention on Climate Change –
Clean Development Mechanism Bazaar
Kronos International Investments Limited
Blu
e S
ky B
iom
ass
E - 4 P H I L O S O P H Y
E N V I R O N M E N T A L
Environmental responsibilities are paramount to Blue Sky Biomass. Projects undertaken must create a positive
environmental impact above any outcome that may occur without the project proceeding.
E C O N O M I C
Economic responsibility is essential for any company. Thorough economic analysis is conducted prior to any Blue
Sky Biomass project proceeding beyond the evaluation stage. As well as addressing environmental
responsibilities, Blue Sky Biomass projects are designed to provide a positive economic impact to the local
community and region where any project is located, in addition to targeted shareholder value..
E M P L O Y M E N T
Blue Sky Biomass recruits staff from local communities where the project is located. Biomass plantation projects
are often developed in remote regions where local communities have experienced high unemployment.
Creating jobs for the community can provide not only provide an injection of capital into the local economy, but
deliver lasting results in other areas including education and job training.
E D U C A T I O N
In all of Blue Sky Biomass projects, staff are trained and educated in the latest green technologies to ensure we
remain at the forefront of the industry. This education provides staff, many of whom are located in remote areas
and developing communities, with skills that can be passed on to family and friends.
Kronos International Investments Limited
Blu
e S
ky B
iom
ass
N E X T S T E P S
Complete First Round Private Placement to secure $500,000.
Secure Second Round Private Placement to secure $2,500,000.
Complete Form S-1 Securities Registration, Audit and Preparation for IPO and Public Listing.
Complete Regulatory Compliance for Capital Raising of $88mil through debt issuance under the United States Customs and Immigration Service EB-5 Employment Based Investment Visa Program. The Georgia Project already has approval to proceed to fund $38m for initial round of foreign investment.
Formalize letter of intent for the sale of initial annual pellet supply; a) 110,000 tonnes per year of pellets at US$145 per tonne. B) 440,000 tonnes per year of pellets at US$145 per tonne.
Complete land leases for Georgia and California and secure further land parcels.
Prepare for first 2,000,000 tree planting at Georgia and California.
Complete contracts for removal of Eastern Red Cedar with Oklahoma Department of Agriculture.
Complete contracts for waste wood management in Georgia.
Select pellet plant contractor and order first three (3) pellet plants.
Prepare Project Design Document and other carbon credit certification and commence credit sales.
Complete contracts for shipping and product distribution.
Commence Initial Public Offering to secure $50,000,000 for additional pellet plants and forests.
C O N TA C T I N F O R M AT I O N
Kronos International Investments Limited
999 18th Street Suite 3000 Denver, Colorado 80202
Phone: +1 (720) 398-6611 Fax: +1 (720) 221-0446
Green Giant Venture Fund
Angra Dos Reis RJ Brazil and La Jolla California.
Phone: +1 (858) 352-6490 Alt: +1 (858) 888-2575
SAFE HARBOR AND FORWARD-LOOKING STATEMENTS: This document may contain certain "forward-looking statements" with respect to certain World Property Company plans,
goals and expectations regarding its future financial condition, performance, results, strategy and objectives. Words such
as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "could", "would", "might", "will" and
variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any
statements that refer to expectations, beliefs, plans, projections, objections, performance or other characterizations of
future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking
statements in this document are forward-looking statements are based upon current expectations and assumptions
regarding anticipated developments and other factors affecting the World Property Company and are not historical facts,
nor are they guarantees of future performance.
B l u e S k y B i o m a s s
Kronos International Investments Limited
Blu
e S
ky B
iom
ass
E B - 5 V I S A P R O G R A M I N F O R M AT I O N
• Blue Sky Biomass , in conjunction with Kronos International Investments, intends to leverage the EB5 Foreign Investment program to provide the capital required to fund its projects to be located, initially Georgia and Oklahoma.
• The EB-5 Investment Visa program for Immigrant Investors is a United States program visa created by the Immigration Act of 1990. This type of visa provides a method of obtaining a green card for foreign nationals who invest money in United States companies. To obtain the visa, individuals must invest $1,000,000 (or at least $500,000 in a "Targeted Employment Area" - high unemployment or rural area), creating or preserving at least ten jobs for U.S. workers.
• Investments can be made directly in a job-generating commercial enterprise (new, or existing - "Troubled Business"), or into a Special Purpose Fund, overseen by a Regional Center, which assumes the responsibility of creating the requisite jobs. Currently, a total of 10,000 EB-5 Visas are available in each calendar year.
• At the end of September 2012, President Obama signed into law S. 3245 extending the EB-5 Regional Center Program for an additional three-year period. The program was reauthorized by the House of Representatives on September 13 in a vote of 412-3 and passed by the Senate in August 2012.
• If the foreign national investor's petition is approved, the investor and their dependents will be granted conditional permanent residence valid for two years. Within the 90 day period before the conditional permanent residence expires, the investor (or Fund Manager for the Special Purpose Fund) must submit evidence documenting that the full required investment has been made and that ten jobs have been maintained, or ten jobs have been created or will be created within a reasonable time period.
• Given the lack of conventional capital available post Global Financial Crisis, an increase in the use of EB5 has been observed. In 2011, 3,800 EB-5 applications were filed, compared to only 3,100 in 2007. Final numbers for 2012 have not been published yet, however industry insiders forecast approximately 7,000 applications were filed.
• The Unites States Citizenship and Immigration Service defines a targeted employment area as an area which, at the time of investment, is a rural area (not within either a metropolitan statistical area (as designated by the Office of Management and Budget) or the outer boundary of any city or town having a population of 20,000 or more), OR an area within an MSA or the outer boundary of a city or town having a population of 20,000 or more which has experienced unemployment of at least 150% of the national average rate.