BUS-357

Steve Pohler

Eric Michel

Nate Gifford

Mark Dekker

Caleb Mutschler

Calvin College Business

Business Plan

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Table of Contents I. Executive Summary .................................................................................................................................... 3

II. Vision, Values and Mission Statement ...................................................................................................... 4

III. Industry Profile and Overview ................................................................................................................. 4

IV. Business Strategy ..................................................................................................................................... 6

V. Company Products and Services ............................................................................................................ 10

VI. Marketing Strategy ................................................................................................................................ 12

VII. Location and Layout .............................................................................................................................. 13

VIII. Competitor Analysis ............................................................................................................................. 14

IX. Green Gold Team ................................................................................................................................... 15

X. Plan of Operation .................................................................................................................................... 17

XI. Financial Forecasts ................................................................................................................................. 18

XII. Loan or Investment Proposal ................................................................................................................ 20

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I. Executive Summary Biodiesel is a growing buzz word in the energy market. Discussion about the current state of

energy production and availability has led to government restrictions and customer awareness of bad

practices. Recent studies have shown that that acre for acre, algae is the most efficient source of lipids

for the production of biodiesel.

Growing concern over CO2 emissions has led to an increase in awareness of harmful greenhouse

gases in plant effluent streams. Many solutions have been devised to remedy this problem. However,

many of these carbon capture and sequestration methods are too expensive. Thus, Green Gold of Grand

Rapids, MI, has developed a cost effective and sustainable solution.

Utilizing an algae photobioreactor, the carbon dioxide leaving in a plant’s stack gas can be

captured and converted into oxygen and algal biomass. This biomass can then be converted into a useful

biodiesel using a process that Green Gold has developed. Not only can Green Gold’s photobioreactor

eliminate the carbon dioxide in plant effluent streams, it can also quickly pay for itself from the valuable

biomass produced.

Pending legislature for more stringent regulation on CO2 emissions will bring about a strong

demand for cost effective carbon capture and sequestration techniques. Green Gold will be ready to

penetrate the market early and develop relationships with major chemical and energy companies.

Additionally, Green Gold will develop solutions for smaller companies with carbon sequestration needs.

Green Gold will be able to adapt our design to nearly any application and therefore service both large

and small companies producing carbon dioxide.

The executive team at Green Gold consists of several highly skilled and driven engineers. These

engineers have backgrounds in both research and process development. Additionally, our executive

team has experience in the fuel processing industry, crucial to the success of our production of biodiesel

from algal biomass.

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Green Gold will require initial startup capital in the range of 25 to 30 million dollars. This will

cover costs for research and optimization of our biodiesel production process. Additionally, this capital

will allow Green Gold to begin several smaller scale installations at local power and energy companies

who are interested in reducing CO2 and reaping the rewards of biodiesel production.

II. Vision, Values and Mission Statement To differentiate ourselves from the competition, Green Gold will dedicate itself to constantly

optimizing and improving our designs. Additionally, we will focus on unmatched customer service and a

dedication to honesty and trust. Green Gold sees itself as a multinational company with name

recognition in the energy and chemical industries.

Green Gold values individuals who are driven to continually improve themselves and their

organization. We seek people who are able to look for solutions to a variety of problems. In addition, we

believe that a deep commitment to the customer is of paramount importance. Developing the trust and

respect of our clients is essential to the life of Green Gold.

Green Gold is concerned about and committed to the proper use and stewardship of the earth's

resources. We believe this commitment will result in a company dedicated to the pursuit of a better

planet and in turn, a better organization. Our drive to constantly improve ourselves, deep commitment

to customer satisfaction and unparalleled expertise is at the center of Green Gold’s philosophy.

III. Industry Profile and Overview

A. Industry background and overview

The production of biodiesel from algae is a fairly new technology and as a result, there is not an

extensive industry background. There are two basic premises which define this industry. The first is that

current petroleum based fuels are becoming ever more difficult to acquire as companies must go to

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more and more remote places to obtain crude oil. The second is that the use of petro-fuels produces a

huge carbon debt which many believe to be having adverse effects on our environment. Using algae to

produce biodiesel is a carbon neutral means of obtaining fuels that work with our current energy

infrastructure and therefore appears to be a very attractive option for renewable energy advocates.

B. Major customer groups

Initially, Green Gold plans to market this product to current sources of CO2 emissions as a means of

mitigating the carbon footprint from running such processes. Mainly, Green Gold will be targeting coal

burning power plants as potential customers.

C. Regulatory restrictions

The only regulatory restrictions that are of concern to Green Gold’s process are the restrictions on diesel

fuel quality. Diesel fuel has certain cetane level requirements as well as maximum levels of SO2 and

other pollutants which it can contain.

D. Significant trends

In recent years, there has definitely been a large push for renewable energy sources and many

companies are pushing to establish new ways of producing energy without increasing our carbon

footprint. Algal biodiesel especially is one technology which has been getting a lot of attention in the last

year or two.

E. Growth rate

The growth rate of the industry is difficult to predict but there is a great potential for rapid growth as a

result of a decline in petroleum wells and the attractiveness of algae as a fuel source since it can be

grown on land not suitable for normal food crops.

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F. Barriers to entry and exit

Barriers to entry could be a concern as one issue that many who have researched this process have

faced is an inability to cost effectively produces the biodiesel on an industrial scale. A barrier to exiting

the industry should not be an issue as Green Gold will provide the design and initial training on

operating and maintaining the facility, but will not be involved past this.

G. Key success factors in the industry

The key to Green Gold’s success is to develop a highly effective algal growth process so as to maximize

algal growth and, corresponding to that, lipid production. We will also need an effective processing

design to perform the biodiesel conversion. From research, Green Gold believes such a process can be

developed with the expertise we possess.

H. Outlook for the future

The future for this business looks to be bright, which can be seen by the large amount of interest the

process has received recently. The conversion of algae into biodiesel is a viable process and will become

an important process in the near future as companies seek to reduce carbon emissions.

IV. Business Strategy

A. Desired image and position in market

Green Gold is in a position to capitalize on waste streams that have been emitting from power plants

and factories for years. Until recently the carbon being released from these sources has been largely

ignored, however the opportunity has sprung up for businesses to make a profit by cleaning up. Much

in the way that sulfurous compounds were required to be removed from coal plant stacks, there is now

demand for a carbon dioxide solution. Many companies are seeking solutions to carbon sequestration,

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but do not have the in house expertise or capabilities to realize an effective solution. Green Gold

intends to provide long term solutions for plants seeking to decrease or even eliminate carbon emissions

to the atmosphere. Because designs will be largely location specific and requirements vary from source

to source, Green Gold designs and implements solutions tailored to meet the needs of each customer.

Once implemented, the customer will take responsibility for managing and operating the system, with

the option for continued technical support service from Green Gold. The assets of Green Gold lie mostly

in the knowledge domain, with each solution using similar technology, however requiring site specific

solutions. Because of this, our product is providing effective solutions built around the algal uptake

process, on the commercial and industrial scale.

B. Company goals and objectives

1. Operational

In a nascent industry, we aim to stay at the forefront of the technology as industry and our own

proprietary knowledge develops, in order to offer competitive solutions to customers. Closely tied to

technology development, the efficient, environmentally sound and cost effective implementation of

solutions is also of primary importance. Our goal is to achieve results while minimizing capital and

energy resources required in the solution.

2. Financial

Green Gold’s short term goal is to grow quickly and establish itself as a leader in finding innovative

sequestration systems. Initially this will mean building the necessary capital to engage in design and

implementation work. To achieve this goal, only the essentials such as materials and design labor will be

considered necessary to run the business, as operating needs and contingency capital are the first

priority. First and foremost, establishing profit based on effective solutions is the goal.

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In the long term, Green Gold intends to use built capital to research more creative solutions.

Investment in process development is key to bringing further returns and helping the company to grow.

Following the startup phase and breakeven, revenue growth by 10% per year, increased cash flows and

a 10%+ operating margin are what the company is looking for in the long term.

3. Design Goals

The development of solutions that make sense on a customer to customer basis is of the utmost

priority; however the creation of these solutions under a flexible template is a desired goal as well. This

allows the security of working with methods that are proven, as well as the flexibility to investigate new

processes that may be later incorporated into the template.

C. SWOT Analysis

1. Strengths

• Creativity

• Flexibility

• Risk is based on project size, which is up to the company

2. Weaknesses

• No reputation to build from

• Small size means only certain projects can be undertaken

• Limited capital

3. Opportunities

• The market has room for expansion

• Business model has potential for solutions other than carbon capture

• Possible branching into further consultancy with companies

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4. Threats

• Larger firms with more capital

• A possible influx of companies with similar solutions

• Carbon sequestration becoming unnecessary or unpopular for corporations

D. Competitive Strategy

1. Cost leadership

To achieve successful cost leadership, GGC is continually focused on the efficiency of solutions. This

means a concerted effort to bring down the cost of implementing sequestration systems by researching

cheaper, longer lasting materials for use in the reactor systems, as well as making a more economical

use of the space and materials needed for the systems. On a practical level this means minimizing waste

streams as much as possible, as well as reusing waste energy as inputs to other components in the

process. Repurposing streams and unit operations to gain further functionality will serve our customers

by offering more efficient solutions, as well as contributing to lower company costs.

2. Differentiation

Our product is distinctive in that it directly recycles carbon produced from an ongoing process. The net

amount of carbon generated to produce the fuel is zero, as the process is simply repurposing it. This

means that though no carbon is being sequestered for good, no new carbon dioxide is released into the

atmosphere. Other techniques seeking to permanently sequester carbon in oil wells, reservoirs or other

sinks simply store the carbon in the hopes that it will stay there. The approach of Green Gold is to reuse

the carbon rather than stashing it away. We are in the position of a carbon neutral company, which still

produces a valuable product. This is important because if a cap and trade system never comes into

effect, Green Gold will still have a viable business plan that does not rely on government incentives.

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3. Focus

Green Gold is focused on providing solutions for companies that produce significant sources of carbon

dioxide from industrial processes, be they power generation, production or otherwise. Though the

market is confined to firms which produce carbon dioxide, the size of companies that we are prepared

to work with is large in scope. Though they can be a variety of sizes, an important characteristic of our

target market is a company with a concentrated source of carbon, such as a stack or gaseous effluent

stream. The industrial market is a large customer base, global in nature, which offers many possibilities

for expansion.

V. Company Products and Services A. Description

1. Product or service features

Green Gold will develop a plant specific design for sequestration, tailoring the basic design to

the size and location dependent needs of the customer. This will allow use of the intellectual property

developed in the original design, while still providing a specific, appropriately scaled design.

The plant designed will include the design of the photobioreactor—the reactor in which the

algae is grown, as well as the design of all the processing required to take the algae and produce a useful

biodiesel.

2. Customer benefits

Green Gold will provide consulting for the appropriate use of the biofuel produced as a service

to the customer. This consultation will entail the characterization of the biodiesel produced by the plant

for determination of the range of applications available. This will allow for better use of the fuels

produced, as well as the development of a greater context for the customer, helping the make decisions

such as whether to use or sell the biofuel produced.

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3. Uniqueness

This product provides unique value due to the design for use in connection with a stack gas

stream from a power plant. This directs the use of algae based biodiesel production to a new market.

Additional tailoring to the individual customer provides a solution specific to the needs of specific power

generation facilities in terms of stack gas concentration, volume, and temperature. This freedom

provides a much broader range of applicability and the ability to expand from just a single design to a

design that is workable for a variety of other sites and power plants

B. Patent or trademark protection

Any patentable process or unit developed through the base case design process or individual

and specific designs will be patented to ensure the innovation will continue to benefit Green Gold in the

future.

C. Description of production process

The process will be housed in a plant nearby a partner or customer power generation plant that

burns fossil fuels. The stack gas rich in carbon dioxide will be used as the primary feed to the process for

the growth of algae, along with a nutrient feed. An initial algae purchase must be made, but once

established, algae will rapidly propagate. Algae will be harvested such that growth will continue and

additional purchases will be unnecessary.

Operating costs for the plant will consist primarily of utilities, labor, and nutrients. Utilities

include all the electricity, water and steam used for heat exchange, water fed to the process, and all

other necessary utilities and services necessary for the operation of the plant.

The only suppliers that this plant requires are the partnering power plant for the CO2 stream,

and the supplier of the nutrients to be fed to ensure rapid growth.

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VI. Marketing Strategy Our team is designing a full scale algae photo bioreactor plant that can be used in conjunction with large

scale power plants. We are going to market our product toward the companies that own power plants.

We are striving to be an international company that can provide our product to power plants all over

the world. We can set up our design anywhere in the world with little or no adjustments to our product.

We are going to help these power plants clean up their CO2 emissions while producing algae which can

be separated and used for biodiesel fuel. Our plant design does not depend on any outside uses such as

sunlight or heat, so as long as there is electricity which a power plant will have our process can be built.

We are not limited to places that have lots of sun, like other algae growers, but we can grow our algae

without that making, our product valuable in places that are less ideal conditions. Our customers will

use our product to help reduce greenhouse gas emissions from there stacks. Pretty soon the U.S.

government along with the governments of the other countries will soon be putting a tax on greenhouse

emissions. By buying our product that charge will be significantly less, and they will make money by

being able to sell the biodiesel as fuel.

We are planning to get into the market at the right time. Right now, there is no tax on emissions, but will

be changed shortly. Since this is going to be a burden soon, the market will be exploding soon. The

market now is pretty small since all algae farmers, are still at the research stage. Recently the

production has been picked up by major companies. For example, within the last couple of months,

Exxon Mobil, has started trying to produce biodiesel from algae on their stack gases. Right now they are

still researching the best, way but soon they will have it all figured out. The time to get into the market

now, while there is still a chance for the best design to be figured out, once that is determined only

improvements can be made and then it will be a lot harder to start up in this market.

To advertise our product, we plan to make a website that will show what we are really about, it will

provide who we are, what we can give them, and why they should choose us. We will also give pitches

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to some of the companies close by. As our company expands we will give more pitches to more

companies. At first our budget for advertising will be very small. As the company expands, our budget

for advertising will as well. We will not advertise in any kind of media to start. Since we are planning to

work for business and not individuals we feel like advertising in the mainstream media would be a

waste. We would like to advertise in “Renewable Energy magazine.” This will help us to get our name

out their all over the country which is where we would like to be in the future.

We want to be competitive with our pricing. We will be one of the first to bring this product to market

and price it relatively high. We will at first try to make a high profit for all of the work we put into it

before we have made any profit. We will be at the same price as our competitors, but we will constantly

work to improve our process so we will always be ahead of the curve. We anticipate a gross margin of

50%. We will want to make a high profit margin because our product has so much work going into our

product before we can sell it to an actual corporation to make a profit. We plan to distribute our

product through trade magazines with energy and word of mouth. We will have a few energy plants

working closely with them and then we will show our ideas to others and hope that they hire us as well.

VII. Location and Layout

The recommended location for this business is in Grand Rapids, MI. Culturally, Grand Rapids is the ideal

site for Green Gold headquarters as the cultural attitude is one of environmental stewardship. Grand

Rapids is home to several state of the art research laboratories and medical schools showing their

support of cutting edge technology. From our headquarters, Green Gold will perform designs for coal

power plants and other sources of CO2 emissions across the country.

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VIII. Competitor Analysis

Currently, there are few competitors besides universities and research laboratories performing studies.

The two largest competitors for Green Gold’s market are Exxon Mobil and OriginOil.

OriginOil’s strength lies in advanced growing technologies which are patent pending. OriginOil has

designed a photobioreactor which uses LED light rods to stir the system and to provide specific

wavelengths of light to the system at specific times during the algae’s growth cycle. This technology

could give them an edge on efficient algae growth. OriginOil’s market strategy is also competitive as it

centers on a form of fuel which does not add to the carbon debt and also does not require a large

infrastructure change for implementation.

Another competitor to Green Gold’s process for biodiesel production is Exxon Mobil. The strength of

Exxon Mobil obviously lies in the vast resources at their disposal. Because of their large presence in the

petroleum fuels market, they have the experience in conversion processes for the biodiesel. Also, they

have teamed up with Synthetic Genomics, a highly successful research group specialized in genomics, to

study and optimize the growing process. Despite all of this, Exxon Mobil appears to be focusing strongly

on the research and optimization portion of the process. This means they are not looking to enter the

market to actually produce biodiesel on an industrial scale in the near future, allowing Green Gold to

break into the market.

Despite having strong competitors, Green Gold still has great potential to be successful as the market for

this product is growing rapidly. It will be impossible for one single organization to control the entire

market because of its vast size.

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IX. Green Gold Team Caleb Mutschler – Chief Executive Officer

Caleb was a Process Safety Consultant Intern with Siemens Oil and Gas Consulting with responsibilities in

overpressure scenario identification based on API 520/521 and ASME codes. These identified scenarios

included blocked outlets, overfilling, control valve failure, check calve failure, thermal expansion, and

external fire. Before coming to the Green Gold Team in 2010, Caleb also held positions at Herbrucks

Poultry Ranch, and JVR Builders. Caleb is very strong in being able to see where our future is, and

making sure the company gets there. From his experience Caleb’s other strength is building culture. He

is the type of person that takes his thoughts and beliefs and shares them with everyone around him.

Eric Michel – Chief Brand Officer

Eric was a Process Design Engineering Intern at CITGO Lemont Refinery with responsibilities to come

into compliance with new EPA regulations regarding fuel gas flow meter correction using temperature,

pressure and GC analysis. Eric joined the Green Gold team in 2010, after working for 2 years with CITGO

Lemont Refinery and Spectrum Restoration for 1 year. Eric has lots of creativity which will help since he

is responsible for the brands image. Eric will use the brand that is started now, and use it throughout the

company. Eric also has strong leadership attributes which will help him oversee marketing, advertising,

design, public relations, and customer service departments.

Steve Pohler – Chief Financial Officer

Steve was an International Intern at Boehringer-Ingelheim GmbH with responsibilities with optimizing

feed conditions in a pharmaceutical reaction scheme as part of a process development laboratory.

Steve came to the Green Gold Team in 2010, before being with us he held positions at Calvin College

Engineering Department, and Calvin College Student Academic Services, Calvin College Chemistry

Department. Steve is the type of person that is always on time and accurate with his information. This

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will be needed so that many important decisions that are based on this can be made. He is also able to

make quick but effective decisions on where to invest our money. He is also very effective at forecasting

our economic future and making sure that it is resilient.

Mark Dekker – Chief Operating Officer

Mark was a Chemical Engineering Intern at International Flavors and Fragrances Inc. where he

researched and tested new fragrance materials to meet new EPA VOC guidelines. He came to the Green

Gold Team in 2010, before he was part of this team he led a team for Green Valley Landscaping for 5

years. Mark has very specific skills which will help him be a very good COO. Mark has knowledge of the

business & industry that we are branching into, he understands modern management theories from the

extensive research he has done, and employs process/quality improvement techniques that he has

learned at his previous employers.

Nate Gifford – Chief Technology Officer

Nate was a Student Researcher for Calvin College Chemistry Department for 2 years where he worked

on computing specific reaction barriers for the decomposition of Trifluoroacetylacetone via Molecular

HF elimination. He is very familiar with the science behind our process and since joining Green Gold in

2010, has helped us out a lot. Since he has worked in the Research and Development of our design he is

well prepared to lead the efforts of the people working there now. He has combined his strong technical

skills with strong business development skills so that he is able to transform capital into future

technology that will keep our company viable in the future.

(All of the previous team member’s resumes are available in the appendix)

As you can see in the Green Gold Organizational Chart (located in the appendix) we are currently full

with the management team. Depending on the future of our company and as it grows we will add some

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new positions. The most likely new addition is a Chief Information Officer. At this point we have no

people involved with our IT department. We realize this is an important part that we are missing and as

we grow it will become even more critical.

Our Board of Directors will be appointed by our shareholders. At this point the five of us are our only

shareholders so we will elect the board which will in turn appoint us to our positions.

X. Plan of Operation A. Legal Form of Ownership

Green Gold’s legal status is a publicly owned corporation. This status protects our individual

employees from liability for Green Gold’s operations. Additionally, our profits enjoy lower tax rates

which will allow the company to reinvest and grow. This legal status also allows the company to more

easily seek outside investment. Our transferable shares will be listed on an exchange to incur public

investment to grow the company.

B. Company Structure

Each year shareholders elect or reelect individuals for the company’s board of directors. These

directors choose the current CEO, CFO, CBO and CTO. These positions then choose their subordinate

vice presidents and directors. A full description of the company’s structure can be found in the attached

organization chart.

C. Decision Making Authority

Day to day company decisions are made by the chief officers. The chief technology officer

directs the activities of the research and development division and the technical aspects of currently

deployed projects. The chief operations officer ensures that management is working effectively and

oversees the day to day performance of employees. The chief financial officer directs the fiscal actions

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of the company, develops company strategy and predicts future market conditions. The chief brand

officer oversees customer relations, marketing and protects and improves the image of the company.

D. Compensation and Benefits Packages

Green Gold’s compensation package is based on two metrics. First, the employees experience

and previous salary is determined. Second, the employee’s education level and certifications are

considered. From these two analyses a competitive salary is computed.

Green Gold offers a competitive benefit package. This package includes comprehensive medical,

dental and vision coverage. Employees enjoy paid holidays, vacations days and travel assistance. In

addition the package includes a 401k retirement savings plan and a pension plan to provide our

employees with a monthly retirement income for their lifetime.

XI. Financial Forecasts A. Key assumptions

The outlook of the market for carbon capture and conversion is quite good at the present time, and only

expected to grow in the future. Because of this, profits are expected to increase in future years based

on companies being introduced to Green Gold’s technology and track record. As our technology

matures, it is expected that the variable costs to design and build a plant will diminish as well. This is

due to experience as well as research that is ongoing in the company. Fixed costs are expected to

remain relatively constant from year to year, as the cost of materials and labor is the primary

contributor. The nature of Green Gold is such that operating costs, both fixed and variable, will remain

constant in the short term, at least until the growth of the company requires additional resources and

hires. As a design firm these costs are based on the workers who produce the designs as well as the cost

of materials and labor to produce and implement them.

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B. Financial Statements 1. Income statement (Annual, 3 years)

2. Balance sheet (Annual, 3 years)

3. Cash flow statement (Annually, 3 years)

Year 1 Year 2 Year 3

Sales revenue 10,000 25,000,000 28,000,000 Variable Cost of Goods Sold 10,000 20,000,000 10,000 Fixed Cost of Goods Sold 10,000 4,000,000 7,000,000 Depreciation 142,900 2,817,100 5,011,800 Gross Margin (152,900) (1,817,100) 15,978,200 Variable Operating Costs 50,000 4,000,000 500,000 Fixed Operating Costs 3,000,000 5,000,000 6,000,000 Operating Income (3,202,900) (10,817,100) 9,478,200 Interest Expense 40,000 320,000 560,000 Income Before Tax (3,242,900) (11,137,100) 8,918,200 Income tax (40%) (1,297,160) (4,454,840) 3,567,280 Net Income After Tax (1,945,740) (6,682,260) 5,350,920

Balance Sheet Year 1 Year 2 Year 3

3,212,900 23,817,100 10,521,800

1,010,000 43,000,000 31,000,000

2,000,000 16,000,000 10,000,000

Liabilities

Assets

Equity

Year 1 Year 2 Year 3

Beginning Cash Balance - 197,160 332,000 Net Income After Tax (1,945,740) (6,682,260) 5,350,920 Depreciation expense 142,900 2,817,100 5,011,800 Invested Capital (Equity) 2,000,000 16,000,000 - Increase (decrease) in borrowed funds 1,000,000 6,000,000 - Equipment Purchases (1,000,000) (18,000,000) (3,000,000) Ending Cash Balance 197,160 332,000 7,694,720

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C. Break-even analysis

D. Ratio analysis

XII. Loan or Investment Proposal As described in the financial forecasts, Green Gold is requesting an investment in the realm of

$30,000,000. The majority of this amount will be used in the second year for the purpose of constructing

the plant.

It is forecasted that revenues of the plant will increase significantly over time, as carbon taxes

continue to increase, and scarcity continues to drive the prices of petroleum and competitive energy

Sales revenue 10,000 25,000,000 28,000,000 Less: Variable Costs: Variable Cost of Goods Sold 10,000 20,000,000 10,000 Variable Operating Costs 50,000 4,000,000 500,000 Total Variable Costs 60,000 24,000,000 510,000 Contribution Margin (50,000) 1,000,000 27,490,000 Less: Fixed Costs Fixed Cost of Goods Sold 10,000 4,000,000 7,000,000 Fixed Operating Costs 3,000,000 5,000,000 6,000,000 Depreciation 142,900 2,817,100 5,011,800 Interest Expense 40,000 320,000 560,000 Total Fixed Costs 3,192,900 12,137,100 18,571,800 Income Before Tax (3,242,900) (11,137,100) 8,918,200

Year 1 Year 2 Year 3

Year 1 Year 2 Year 3Current 0.31 1.81 2.95

Total debt to total assets 0.99 0.14 -0.16

Total assets turnover 0.01 0.58 0.90

Profit margin on sales -194.57 -0.27 0.20

Return on common equity -0.97 -0.42 0.55

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sources higher. Predictions are based on countries in which carbon taxes are being implemented, the

most obvious example being the Canadian province of British Columbia, where the Carbon tax is set to

reach $30 US / metric tonne of CO2 emitted in 2012 (up from $20 in 2008). This increase in revenue and

therefore share value should afford the opportunity to 'cash out' quite easily.

The schedule on which this repayment becomes viable is dependent on the location of

partnering plants, and the biodiesel market, but is projected to be within 6-8 years.

The timetable for implementation and launch follows a 2 year plan. The design of the plant and

partnership development is scheduled to go forward in the first year. Plant construction and launch is

scheduled to go forward in the second year. Year three will consist of project maintenance, evaluation,

and improvement, along with further development of the partnership, and seeking for new

opportunities and partnerships for growth.

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Appendix