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Caribbean Bio-Energy.ppt

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									Caribbean Bio-Energy


  Business Overview: Honduras Project
                            July 2010


             CONFIDENTIAL
Disclaimer
 This presentation contains certain statements, estimates and forecasts with respect to future
 performance and events. These statements, estimates and forecasts are "forward-looking
 statements". In some cases, forward-looking statements can be identified by the use of forward-
 looking terminology such as "may," "might," "will," "should," "expect," "plan," "intend," "estimate,"
 "anticipate,“ "believe," "predict," "potential" or "continue" or the negatives thereof or variations
 thereon or similar terminology. All statements other than statements of historical fact included in
 this presentation are forward-looking statements and are based on various underlying
 assumptions and expectations and are subject to known and unknown risks, uncertainties and
 assumptions, and may include projections of our future financial performance based on our growth
 strategies and anticipated trends in our business. These statements are based on our current
 expectations and projections about future events. There are important factors that could cause our
 actual results, level of activity, performance, or achievements to differ materially from the results,
 level of activity, performance or achievements expressed or implied in the forward-looking
 statements. These factors include, but are not limited to, (a) a decline in general economic
 conditions,(b) losses due to unidentified or unanticipated risks, (c) a lack of liquidity, i.e., ready
 access to funds for use in our businesses, and (d) competitive pressures. As a result, there can
 be no assurance that the forward-looking statements included in this presentation will prove to be
 accurate or correct. In light of these risks, uncertainties and assumptions, the future performance
 or events described in the forward-looking statements in this presentation might not occur.
 Accordingly, you should not rely upon forward-looking statements as a prediction of actual results
 and we do not assume any responsibility for the accuracy or completeness of any of these
 forward-looking statements. We do not undertake any obligation to, and will not update any
 forward-looking statements, whether as a result of new information, future events, or otherwise.




                                          CONFIDENTIAL
    Presentation Outline
   Purpose & Overview
   US Ethanol Demand
   Location, Site Plan, & Site Photos
   Flow Chart
   Caribbean Bio-Energy’s Proforma and Cost Structure
   US Ethanol Imports
   Honduran Demand & Political Outlook
   Investment Structure
   Key Risks
   Competitive Advantages



                         CONFIDENTIAL
Purpose & Overview
•   Demand for sugarcane-based ethanol will increase dramatically in
    the US due to the Renewable Fuels (RFS) II and the Low Carbon
    Fuel Standards in order to satisfy “non-cellulosic advanced” targets.
•   Central American and Caribbean countries will be the route for
    which most of the “advanced biofuels” will reach the United States
    due to the fact that trade treaties between the US and these regions
    allow for duty-free importation of anhydrous ethanol (avoiding the
    $0.54/gallon tariff). [US Representative Earl Pomeroy (D-ND) has
    introduced legislation to extend the tariff until 2015.]
•   Honduras is one of the countries in Central America that has the
    ability to ship ethanol to the US duty free. Moreover, Honduras is
    the only country that has passed biofuels legislation and enabling
    laws that will permit the country to blend at E-10 and sell E-100 as a
    fuel at retail fueling stations.
•   Honduras is a well-placed country to dehydrate ethanol and ship it to
    the US or sell it locally into the nation’s transportation fuel mix.

                                CONFIDENTIAL
Purpose & Overview (continued)
•   Caribbean Bio-Energy, Inc. (CBE) is a Honduras corporation formed
    in 2007 in compliance with local law to facilitate the ownership of the
    facility as proposed in this presentation.
•   An approximate 15 acre plant site has been secured within the port
    with a 20 year lease. The port facility at Puerto Castilla is fully
    improved and is the deepest port in the Caribbean with over 16
    meters in depth and existing dock design to accommodate ships up
    to 65,000 tons in dead weight capacity.
•   PRAJ, a worldwide leader in the ethanol industry, will design and
    construct the 110 million gallon dehydration facility in their industrial
    complex, located in India. This capacity is in concert with
    incorporating the use of 4 million gallon tankers unloading hydrous
    ethanol and reloading anhydrous ethanol from the plant twice each
    month for delivery to the U.S. and other potential markets. On site
    storage capacity is 12.5 million gallons with an expansion area
    within the site for additional tank storage.


                                 CONFIDENTIAL
Purpose & Overview (con’t)
•   The purpose of this presentation is to procure equity investors for an
    ethanol dehydration plant in Puerto Castilla, Honduras – located
    near the town of Trujillo.
•   Expected payback of original investment is less than two years and
    profits are expected to reach roughly $15-$20 million per annum.
•   The total turn key cost of the development at $30,000,000 includes
    the initial feedstock purchase of hydrous ethanol to start-up plant
    operations.
•   Construction of the plant will be approximately 10 months with the
    plant at full capacity within one year from start of construction.
•   Further expansion could also include production of ethanol from
    locally grown sugar cane in the surrounding environs.




                                CONFIDENTIAL
    Presentation Outline
   Purpose & Overview
   US Ethanol Demand
   Location, Site Plan, & Site Photos
   Flow Chart
   Caribbean Bio-Energy’s Proforma and Cost Structure
   US Ethanol Imports
   Honduran Demand & Political Outlook
   Investment Structure
   Key Risks
   Compeititive Advantages



                         CONFIDENTIAL
     US Ethanol Demand
   Ethanol use in the U.S. is projected at 36 billion gallons by 2022 due to the
    RFS2 mandate. Current U.S. production is projected at 12.6 billion gallons.

   President Obama has proposed a 5-year extension of the $0.54/gallon
    tariff along with the continuation of the $0.46/gallon VEETC.

   Infrastructure for distribution and blending facilities are under construction to
    accommodate consumer demand and convenience. Neat ethanol is
    currently being piped on the Colonial pipeline from the southeastern US to
    the northeast.

   RFS2 calls for increase use of “advanced biofuels” that obtain a 50%
    reduction in greenhouse gas emissions. Brazilian sugarcane-based ethanol
    has been rated as an advanced biofuel by the US EPA and should carry a
    price premium in the future.

                                     CONFIDENTIAL
                        Historical US Ethanol Demand
                        25,000

                        24,000         Production
                        23,000
                                                 10,756,000,000 Gallons --2009
                        22,000

                        21,000

                        20,000

                        19,000
                                                                                                     9,236,000,000 Gallons -- 2008
                        18,000
Million Barrels/Month




                        17,000

                        16,000

                        15,000
                                                                                                   6,485,472,000 Gallons -- 2007
                        14,000

                        13,000

                        12,000
                                                                                                             4,884,348,000 Gallons -- 2006
                        11,000

                        10,000

                         9,000

                         8,000

                         7,000                                                                              3,904,362,000 Gallons -- 2005
                         6,000
                                 Jan      Feb   Mar      Apr       May        Jun            Jul           Aug     Sep      Oct      Nov     Dec

                                                 Ź2005    ŹŹ2006     ŹŹ2007         ŹŹ2008          2009



                                                                    CONFIDENTIAL                                   Source: Hart Energy
Future US Ethanol Demand




                           Source: Hart Energy


            CONFIDENTIAL
    Presentation Outline
   Purpose & Overview
   US Ethanol Demand
   Location, Site Plan, & Site Photos
   Flow Chart
   Caribbean Bio-Energy’s Proforma and Cost Structure
   US Ethanol Imports
   Honduran Demand & Political Outlook
   Investment Structure
   Key Risks
   Competitive Advantages


                         CONFIDENTIAL
Puerto Castillas, Honduras




              CONFIDENTIAL
Puerto Castillas, Honduras




              CONFIDENTIAL
Site Location in Port




               CONFIDENTIAL
PICTURES OF THE SITE




         inside secured port facility where where dehydration
  AreaArea inside secured port facilityethanol ethanol
  facility will be located.
        dehydration facility will be located.


                            CONFIDENTIAL
PICTURES OF THE SITE




 Container storage on paved dock facility. Entire dock area has
 a security fence with a guard at the main gate.


                          CONFIDENTIAL
PICTURES OF THE SITE




      Part of existing tank farm at the port.


                     CONFIDENTIAL
PICTURES OF THE SITE




   View to dock facilities from outside secured area;
                       ship at port.


                        CONFIDENTIAL
PICTURES OF THE SITE




             Extensive docking space; container ship
             docked. Dock capacity 65,000 tons dead
             weight.
            Extensive docking space;
         container ship docked. Dock
 Extensive docking space at port; container ship docked.
      capacity 65,000 tons dead weight.



                                       CONFIDENTIAL
    Presentation Outline
   Purpose & Overview
   US Ethanol Demand
   Location, Site Plan, & Site Photos
   Flow Chart
   Caribbean Bio-Energy’s Proforma and Cost Structure
   US Ethanol Imports
   Honduran Demand & Political Outlook
   Investment Structure
   Key Risks
   Competitive Advantages



                         CONFIDENTIAL
 Flow Chart: Brazil-Honduras-US



                                                  Transportation
         Brazil Hydrous Ethanol                    $0.14/gallon
               $1.30/gallon




US Refinery              Transportation                   Honduras Processing
$1.90/gallon              $0.05/gallon                        $0.19/gallon


                                   CONFIDENTIAL
Hydrous Ethanol Feedstock Costs

   Much has been written about feedstock costs due to high sugar
    prices, which hit historical highs in 1Q2010.

   Prices rose due to poor harvest conditions in Brazil; and India hit is
    third year of its 3-year down cycle in sugarcane production.

   Since surpassing $0.30/pound in 1Q2010, sugar prices have fallen
    to $0.15/pound due to an expected bumper sugarcane crop in Brazil
    and the first year in the 3-year up-cycle in Indian sugarcane
    production.

   By 2011, hydrous ethanol FOB export prices from Brazil should fall
    to roughly $1.10-$1.20/gallon -- back to their historical average.
Hydrous Ethanol Feedstock Costs
                                Brazilian Ethanol FOB US$/Gallon

 $2.50


 $2.00


 $1.50


 $1.00


 $0.50


 $0.00
                                                      Nov-07




                                                                                                            Nov-08




                                                                                                                                                                  Nov-09
                           May-07




                                                                                 May-08




                                                                                                                                       May-09
                                             Sep-07




                                                                                                   Sep-08




                                                                                                                                                         Sep-09
                                    Jul-07




                                                                                          Jul-08




                                                                                                                                                Jul-09
         Jan-07




                                                               Jan-08




                                                                                                                     Jan-09




                                                                                                                                                                           Jan-10
                  Mar-07




                                                                        Mar-08




                                                                                                                              Mar-09
                                                                                                                               Source: Hart Energy


                                                                        CONFIDENTIAL
Transportation Route
 Logistical Costs for ocean freight transport of ethanol to the US
 through the Caribbean vary from $0.20/gallon to $0.40/gallon over
 the previous three years.




                             CONFIDENTIAL
 US Ethanol Prices
                           Rack Ethanol Prices
         Weekly national price average, non-discounted rack fuel ethanol
                       cents per gallon, Industry Survey and DTN, www.dtn.com
               January 1, 2007, through previous week - Week runs Saturday through Friday
295
285                                                                              186.45      cpg
275                                                                                  DOWN 3.55
265                                                                                  3/12/2010
255
245
235
225
215
205
195
185
175
165
      1/

        3/ 7

        5/ 7

        7/ 7

        9/ 7



        1/ /07

        3/ 8

        5/ 8

        7/ 8

        9/ 8



        1/ /08

        3/ 9

        5/ 9

        7/ 9

        9/ 9



        1/ /09

        3/ 0
        11 7




        11 8




        11 9
        12

          12

          12

          12

          12



          12

          12

          12

          12

          12



          12

          12

          12

          12

          12



          12

          12
           /1




           /1




           /1
             /0

             /0

             /0

             /0

             /0



             /0

             /0

             /0

             /0

             /0



             /0

             /0

             /0

             /0

             /0



             /1

             /1
              2




              2




              2




                0
                                                                             Source: Hart Energy


                                             CONFIDENTIAL
    Presentation Outline
   Purpose & Overview
   Worldwide Ethanol Demand and Production
   Location, Site Plan, & Site Photos
   Flow Chart
   Caribbean Bio-Energy’s Cost Breakdown, Proforma
    and Cost Structure
   US Ethanol Imports
   Honduran Demand & Political Outlook
   Investment Structure
   Key Risks
   Competitive Advantages



                        CONFIDENTIAL
           CBE COST BREAKDOWN
                                                        CBE Cost Structure - Puerto Castilla, Honduras
                                          EXHIBIT "A"
                                                                                     Cost Per
Site and Civil Work                                                                   Gallon Soft Costs
         Permitting                                     $     100,000                                      Land Lease & Port Fees Constr. Period   $   300,000
         Engineering                                    $   1,400,000                                      Government Fees & Consultants           $   300,000
         Soil Boring, Survey, etc.                      $      50,000                                      Construction Admin., Acct., Overhead    $   480,000
         Site Roads, Lighting, Etc.                     $    150,000                                      Developer Fee & Services                          *
         Tank Berm                                      $    600,000                                      Insurance                                $ 150,000
Sub Total Site Work                                                     $ 2,300,000 $    0.02             Legal                                    $    75,000
                                                                                                          Rolling Stock                            $    60,000
Plant Costs                                                                                               Financing Costs                          $ 1,250,000
         Tank Foundations                               $   2,800,000                                     Contingency                              $ 800,000
         Plant Foundations                              $     370,000                         Sub Total Soft Costs                                               $ 3,415,000 $    0.03
         Ethanol Storage Tanks (4)                      $   5,520,000                         SUB TOTAL CONSTRUCTION/DEVELOPMENT                                 $ 27,298,000 $   0.25
         Ancillary Tanks (4)                            $     640,000                         Start-Up Costs
         Dehydration, Cooling Tower, Molecular Sieves
         Instruments, Lab                               $   4,480,000                                       Beginning Feedstock & Working Cap.     $ 2,300,000
         Steam System, Boiler                           $   2,200,000                                       Process Engineering & Startup          $ 100,000
         Water & Water Treatment                        $   1,500,000                                       Pre-production Payroll                 $ 142,000
         Fire Protection                                $     250,000                           Sub Total Start-Up Costs                                         $ 2,542,000 $    0.02
         Electrical                                     $   1,700,000                           GRAND TOTAL                                                      $ 29,840,000 $   0.27
         Administration Building                        $     325,000
         Computers, Etc.                                $     150,000                           *Developer fee of $600,000 deferred to payment from operating profits.
         Shipping Costs                                 $     250,000
         Contractor Fees & General Cond                 $   1,398,000
Sub Total Hard Costs                                                    $ 21,583,000 $   0.20




                                                                                 CONFIDENTIAL
         CBE Revenue & Profit Forecast
                    CARIBBEAN BIO-ENERGY, INC. - FORECASTED STATEMENTS OF OPERATIONS & RETAINED EARNINGS
                                                           Years Ending One through Five
                                    CONSTRUCTION               Year 1                 Year 2                Year 3               Year 4               Year 5
REVENUES
     Ethanol (1)                    $    34,770,000    $        171,000,000     $     209,000,000      $   209,000,000       $   209,000,000      $   209,000,000
     TOTAL                          $    34,770,000    $        171,000,000     $     209,000,000      $   209,000,000       $   209,000,000      $   209,000,000

GALLON AMOUNT PER YEAR                   18,300,000              90,000,000           110,000,000          110,000,000           110,000,000          110,000,000

COST OF REVENUES
     Hydrous Ethanol (2)            $   (23,058,000)   $        (113,400,000)   $    (138,600,000)     $   (138,600,000)     $   (138,600,000)    $   (138,600,000)
      Production Costs (3)          $    (3,294,000)   $         (16,200,000)   $     (19,800,000)     $    (19,800,000)     $    (19,800,000)    $    (19,800,000)

                                    $   (26,352,000)   $        (129,600,000)   $    (158,400,000)     $   (158,400,000)     $   (158,400,000)    $   (158,400,000)

GROSS PROFIT                        $     8,418,000    $         41,400,000     $      50,600,000      $    50,600,000       $    50,600,000      $    50,600,000

GENERAL & ADMIN EXP (4)             $      (300,000)   $            (600,000)   $        (750,000)     $       (750,000)     $       (750,000)    $       (750,000)

INTEREST EXPENSE (5)                $              -   $          (1,800,000)   $      (1,517,500)     $     (1,235,000)     $       (952,500)    $       (670,000)

NET INCOME                          $     8,118,000    $         39,000,000     $      48,332,500      $    48,615,000       $    48,897,500      $    49,180,000

PORT COST                           $              -   $            (500,000)   $        (500,000)     $       (500,000)     $       (500,000)    $       (500,000)

TRANSPORTATION COST (11)            $    (4,575,000)   $         (22,500,000)   $     (27,500,000)     $    (27,500,000)     $    (27,500,000)    $    (27,500,000)

NET INCOME BEFORE TAXES
                                    $              -   $                    -   $                 -    $                -    $               -    $               -
INCOME TAXES                                           $                    -   $                 -    $                -    $               -    $               -

NET INCOME AFTER TAXES              $     3,543,000    $         16,000,000     $      20,332,500      $    20,615,000       $    20,897,500      $    21,180,000

NET INCOME (LOSS)                   $     3,543,000    $         16,000,000     $      20,332,500      $    20,615,000       $    20,897,500      $    21,180,000

DEBT REPAYMENT (6)                  $              -   $          (2,825,000)   $      (2,825,000)     $     (2,825,000)     $     (2,825,000)    $     (2,825,000)
INVESTMENT PREFERRED RETURN (7)     $      (735,000)   $            (735,000)   $                -             0                    0                    0

EQUITY REPAYMENT (8)                $              -   $         (10,500,000)   $        (600,000)     $              -            0                     0
RETAINED EARNINGS per year (9)      $    (2,453,700)   $          (1,600,000)   $      (2,033,250)     $    (2,061,500)      $    (2,089,750)     $     (2,118,000)
EARNINGS DISTRIBUTION (10)                             $
                                                               CONFIDENTIAL
                                                                     340,000    $      14,874,250      $    15,728,500       $    15,982,750      $    16,237,000

RETURN PER GALLON PROCESSED                   $0.19                     $0.18                  $0.18                 $0.19                $0.19                $0.19
      Notes to Revenue & Profit Forecast
Note to Schedules
1. This is dehydrated anhydrous ethanol Gulf Coast U.S.
2. Hydrous or wet ethanol @ 105% of anhydrous amounts to account for 5% water content from Brazil.
3. Production costs per Praj estimate using current costs & quantities of fuel oil, utilities, water, labor, etc. this location @
$0.19 per gallon.
4. Estimated annual expense and executive compensation.
5. Interest calculated at 10% on debt of $18,000,000 through construction and initial re-payment period.
6. Estimated principle payments for retirement of construction debt financing.
7. Preferred return paid to investors on investment equity prior to re-payment of original investment capital @ 7%.
8. Re-payment of equity investment capital principle amount in years one and two. Development fee paid year three.
9. Retained earnings is 10% of annual net income per year after construction period. (see note below)
10. Earnings distribution. Available for distribution to owners on a percentage ownership basis.
11. Shipping costs @ $0.25 per gallon.
General Notes:
- Retained earnings held for working capital and reserves.
 - Plant capacity is 110,000,000 gallons per year. Storage capacity 12,500,000 gallons.
 - Ethanol revenues projected @ $1.90 per gallon.
 - Hydrous ethanol from Brazil at a cost of $1.20 per gallon.
 - Construction period is 10 months construction, 2 months production.
 - Debt repayment period is over first 7 years of operation.
Income Note: Ethanol is a commodity and the price per gallon fluctuates in both the acquisition price of hydrous ethanol
from Brazil & the wholesale sales price of ethanol in the U.S. based on actual or perceived supply & demand in U.S. &
European markets. The prices, as used in this proforma, reflect general market pricing in June 2009.




                                                        CONFIDENTIAL
CBE Production Costs
                                 Pro duction Costs Including Hydrous Eth anol @ $1.40 pe r Gallon
                                                                              Data to be filled in gray cells
Capac ity of the Dehydrator                                                                         110 MGPY
Capac ity of the Dehydrator                                                                  1,189,571 Lit/day
Strength of Anhydrous Alc ohol % v/v                                                               99.8%
Working days per year                                                                                350
Feed Alcohol Conc entration % v/v                                                                  95.0%
Hydrous Alc ohol Pric e                                                                              0.37   $/Lit FOB Port of Santos
Transportation Cost (approx)                                                                            0   $/Lit
Landed Hydrous Alc ohol Cos t                                                                        0.37   $/Lit
                                                                                                                                               u
                                                                                                                                              Q ic k Tim e ™ a nd a
                                                                                                                                                dec om p re s s o r

                                                                                                  1.40045   $/Gal                      are n eed ed to s e e th is pi c ture.




Bunker Oil / Fuel Oil # 6                                                                             1.5   $/Gal




                                                                            Utilities Cost
Soft Water                                                                                           0.05 $/m3
                                                                                                                             V ikr a m:
Steam                                                                                                32.5 $/MT               C an be reduced to zero by
Elec tric ity                                                                                        0.14 $/kW               using a high pressure boiler
                                                                                                                             coupled w ith turbine



                                               Consumpti on fi gure s for raw mate rial, auxil i ari ue s & util i tie s
                                                                         PRAJ MSDH
Efficiency or Recovery of Dehydration                                            99.60%                Actual f igure 99.6~99.8 %
Consumption of feed alcohol( lit /day)                                           1254695

Cooling wat er flow rat e m3/hr (not t he act ual consumpt ion)                          2400
T emperat ure rise of cooling wat er                                                 310C -->370C
Cooling wat er make-up m3/day                                                            1440               2.5 % make up f or 7 0C temp. rise of cooling
                                                                                                            w ater
St eam consumption kg/Lit of Et hanol                                                    0.55               Actual 0.45-0.5 kg/Lit at 3.5 Bar(g) or 50 psig

St eam consumption per day MT /day                                                      654.26
Instrument air (7 kg/cm2) Nm3/hr                                                         100                Electricity included in utilities
Elect ricit y for the dehydrat or without t he utilities kW/hr                           100
Elect ricit y for the ut ilit ies (Cooling T ower, pumps, inst rument air                350
compressor, boiler)kW/hr
                                                                                             50             This incudes f ill-up/emptying the ship of 8 mln
Elect ricit y for St orage Sect ion (Including t ransfer pumps)                                             gallon
T otal elect ricity consumpt ion in dehydrat or+ut ilit ies+st orage kW/hr               500                This is averaged out figure
Replacement of molecular sieves                                                  120 MT once in 5 years     PRAJ guarantees lif e of desiccants f or 5-7
                                                                                                            years




                                                                      CONFIDENTIAL
  CBE Production Costs
                                               Daily cost of operation without cost of manpower

Feed Alcohol ( 95 % v/v)                                                         464,237
Cooling water make-up                                                                72.00
Steam                                                                           21,266.55
Electricity                                                                      1,680.00
Replacement of molsieves calculated on per day basis @ US $                        308.57 Replacement once in 5 years at estimated
540,000 for 120 MT estimated in 2013 approx.                                               price after 5 years.
                                                                                 487,564
Fuel Ethanol Variable Production Cost                                               0.410 US $/Lit
                                                                                    1.551 US $/Gal


                                                                Fixed Cost

Maintenance @ 0.25% of Plant Fixed Mechancial Asset                                62500 On Annualized Basis
Labor                                                                            291,000 On Annualized Basis
                                                                                 353,500

Total Fixed Production Cost                                                         0.001 US $/Lit
                                                                                   0.0032 US $/Gal

Total Net Production Cost                                                           0.411 US $/Lit
                                                                                    1.555 US $/Gal
    Presentation Outline
   Purpose & Overview
   Worldwide Ethanol Demand and Production
   Location, Site Plan, & Site Photos
   Flow Chart
   Caribbean Bio-Energy’s Proforma and Cost Structure
   US Ethanol Imports
   Honduran Demand & Political Outlook
   Investment Structure
   Key Risks
   Competitive Advantages



                         CONFIDENTIAL
                        US Ethanol Imports
                        3300


                        3000
                                     2009   - 203,784,000
                                     gal
                        2700
                                     2008   -   517,314,000 gal
                                     2007   -   430,248,000 gal
                        2400         2006   -   722,106,000 gal
                                     2005   -   135,828,000 gal
                        2100
Million Barrels/Month




                        1800


                        1500


                        1200


                        900


                        600


                        300


                           0
                               Jan          Feb       Mar      Apr   May      Jun   Jul      Aug    Sep     Oct     Nov       Dec


                                                        2005         ŹŹ2006         ŹŹ2007         ŹŹ2008         ŹŹ2009   Source: Hart Energy



                                                                           CONFIDENTIAL
   US Ethanol Imports by Country
   High Brazilian Feedstock Prices & Elimination of Duty-Drawback Limited US
                            Ethanol Imports in 2009
                                  2004     2005      2006    2007        2008       2009
          Brazil                  2,052    822      10,783   4,415       4,608      125
          Canada                   148      77       196      58           83       219
          China                                      791
          Costa Rica               491     753       769     1,184        872       170
          El Salvador              128     563      2,108    1,730       1,667      786
          Jamaica                  723     810      1,898    1,714       2,401      2,044
          Trinidad and Tobago              209       648     1,081       1,618      1,021
          Virgin Islands (U.S.)                               62         1,068       87
          Venezuela                                                                 150
Barrels                           3,542    3,234    17,193   10,244     12,317      4,602
Gallons                           148,764 135,828 722,106 430,248       517,314    193,284
                                                             Source: Hart Energy


                                     CONFIDENTIAL
    Presentation Outline
   Purpose & Overview
   Worldwide Ethanol Demand and Production
   Location, Site Plan, & Site Photos
   Flow Chart
   Caribbean Bio-Energy’s Proforma and Cost Structure
   US Ethanol Imports
   Honduran Demand & Political Outlook
   Investment Structure
   Key Risks
   Competitive Advantages



                         CONFIDENTIAL
Honduran Geo-Political Outlook
                   Honduras has a coveted location, being
                    on the Atlantic side of the Isthmus and
                    having deep water ports with direct
                    shipping routes to U.S. markets on the
                    Gulf Coast and East Coast.

                   Puerto Castilla area has 200,000 acres
                    or more of land available for local
                    feedstock production. [Need 42,000
                    acres to support a typical sugar-cane
                    based sugar/ethanol plant.]

                   The constitutional crisis that plagued
                    the country in 2009 has passed. Free
                    and fair elections in 4Q2009 seated a
                    conservative candidate as President of
                    Honduras. His pro-business and pro-
                    US mentality is already attracting
                    investment in the country.

              CONFIDENTIAL
Honduran Ethanol Demand
   In 2009, Congress passed enabling legislation for the biofuels law: It allows
    ethanol blending up to10% and establishes a mechanism to move the country to
    a full flex-fuel transportation infrastructure using Brazilian E-100 engine
    technology.

   Ethanol will avoid the $1.15/gallon tax on gasoline, making it very competitive in
    the marketplace.

   There are substantial tax benefits and subsidies for the production of ethanol
    produced from local feedstocks.

   More importantly, locally produced ethanol will be allowed to be mixed with up to
    49% percent dehydrated ethanol to help increase supplies in the marketplace.
    Having a local partner producing ethanol could be the gateway of establishing a
    second market for Caribbean Bio-Energy production.

   For Honduras to achieve E-10, it would roughly need 9 million gallons of
    ethanol.


                                      CONFIDENTIAL
 Regional Ethanol Demand
Honduran ethanol demand will be roughly 10 million gallons a year when the country
goes to E-10, which is expected in the near future.

              CAFTA+DR FUEL DEMAND


                                                                   Regional demand, if Central
                                                                    America goes FFV, could
                              Costa Rica
                                19%                              surpass 1.3 billion gallons on an
               Rep. Dom                                              energy equivalent basis.
                 29%
                                                                            CAFTA+DR FUEL DEMAND
                                       El Salvador
                                                              (GALLONS)            Gasoline         Diesel
                                           14%                Costa Rica            192,108,000    199,416,000
                                                              El Salvador           139,482,000    151,074,000
                                                              Guatemala             255,906,000    258,342,000
         Nicaragua
            5%
                                                              Honduras               85,470,000    124,362,000
                                                              Nicaragua              54,474,000     83,832,000
               Honduras   Guatemala
                  8%                                          Rep. Dom              297,906,000    160,104,000
                            25%
                                                              TOTAL               1,025,346,000    977,130,000

                                                                      Source: Hart Energy




                                               CONFIDENTIAL
    Presentation Outline
   Purpose & Overview
   Worldwide Ethanol Demand and Production
   Location, Site Plan, & Site Photos
   Flow Chart
   Caribbean Bio-Energy’s Proforma and Cost Structure
   US Ethanol Imports
   Honduran Demand & Political Outlook
   Investment Structure
   Key Risks
   Competitive Advantages



                         CONFIDENTIAL
Investment Structure
Debt and Equity                                                  Ownership
Development Cost: $30,000,000               100%                 Developer 40%
Development Loan $19,500,000                 65%                 Investor(s) 60%
Investment Equity: $10,500,000               35%
Investment                                                        Priority Repayment         Equity Repayment
     Amount           Ownership         Preferred Return            of Investment                 Period

                                   7% annual on all              Yes, before any developer       Estimated 36
                                   outstanding equity balances   profit or fees.
   $10,500,000           60%                                                                     months, or less
Investment                            Production            Production         Production           Production
Return             Production      Year 2 Inv Profit        Year 3 Inv       Year 4 Inv Profit    Year 5 Inv Profit
Construction         Year 1             @ 60%              Profit @ 60%          @ 60%                @ 60%
   Period
 Preferred         Preferred            Profit               Profit               Profit               Profit
 $735,000          $735,000           $8,924,550           $9,437,100           $9,589,650           $9,742,200
                    Equity
                  $10,500,000
                 Profit $204,000


                                                CONFIDENTIAL
   CBE Management Team

Dan E. Christensen: President of Caribbean Bio-Energy, a Honduras corporation.
Co-founder and former C.O.O and C.F.O, and board member for Green Plains Renewable
Energy (GPRE) and construction manager for two 50 million gallon GPRE ethanol plants.

Moises Starkman: Honduran citizen. Former Honduran ambassador to Israel and
Greece. A former Government minister and currently adviser to the President of Honduras.
Authored the biofuels legislation in Honduras. Works closely with the private and public sector
for Caribbean Bio-Energy Project.

Other

Local Owner: Commitment from the third largest Honduran sugarcane producer to invest in
5% to 10% ownership of Caribbean Bio-Energy.

Contractor & Process Provider: Preliminary plant design and construction contract
proposals in place from Praj Industries and Menalco Construction for project construction.



                                          CONFIDENTIAL
    Presentation Outline
   Purpose & Overview
   Worldwide Ethanol Demand and Production
   Location, Site Plan, & Site Photos
   Flow Chart
   Caribbean Bio-Energy’s Proforma and Cost Structure
   US Ethanol Imports
   Honduran Demand & Political Outlook
   Investment Structure
   Key Risks
   Competitive Advantages



                         CONFIDENTIAL
Key Risks
   Removal (or significant reduction) of US ethanol import tariff – UNLIKELY

   Elimination of ethanol tariff reduction in CAFTA+DR – UNLIKEY

   Brazilian feedstock prices rise or not available -- HAPPENED IN 2009 DUE TO VERY
    WET HARVEST SEASON CAUSED BY EL NINO WEATHER PHENOMENA; UNLIKELY
    IN 2010, 2011 and 2012

   Brazilian currency appreciates, thereby reducing profit margins – UNLIKELY – US
    CURRENCY HAS BEEN APPRECIATING SINCE DECEMBER 2009.

   US ethanol prices fall below $1.60/gal. -- UNLIKELY, US CORN ETHANOL
    PRODUCERS WILL BE AT BREAK EVEN

   Local environment becomes politicized, raising costs – HAPPENED IN 2009 WHEN
    FORMER PRESIDENT ZELAYA TRIED TO CHANGE THE CONSTITUTION TO GAIN
    RE-ELECTION. DEMOCRACY WORKED; NEW PRESIDENT WILL RESPECT LAW.
    HONDURAS GAINED CREDIBILITY BY ALLOWING INSTITUTIONS TO WORK.


                                       CONFIDENTIAL
    Presentation Outline
   Purpose & Overview
   Worldwide Ethanol Demand and Production
   Location, Site Plan, & Site Photos
   Flow Chart
   Caribbean Bio-Energy’s Proforma and Cost Structure
   DR-Cafta Trade Accord & Tariff Outlook
   Honduran Demand & Political Outlook
   Investment Structure
   Key Risks
   Competitive Advantages



                         CONFIDENTIAL
    Competitive Advantages
   Local connections: excellent relations with the Honduran government and port authority.
    Local partner is a sugarcane grower and mill owner.

   Low feedstock cost: using Brazilian sugarcane avoids food versus fuel controversy,
    keeps pricing low for feedstock given land availability.

   Lower operating costs: long-term deferment and/or elimination of local Honduras taxes
    with free trade zone status.

   High oil/gasoline prices: coupled with U.S. corn feedstock costs, high oil prices give
    competitive advantage to cane-based ethanol prices.

   Experience: management team has several years of biofuels & automotive technology
    experience in the US and Latin American markets.

   Easy access to markets: Southeastern and eastern United States represent a large
    ethanol market with easily access by tanker transportation.

   Strategic location: for worldwide access to European and U.S. markets and feedstock
    supply from Brazil and Caribbean.


                                         CONFIDENTIAL

								
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