Columbia Basin Biofuels Summit Todd Ellis Director of Business Development Agenda Imperium Renewables Grays Harbor Market Opportunities Questions Biofuels Market Economics Production Misconceptions Imperium About Imperium Renewables • Northwest’s first commercial (5 million gallons a year) refinery. • Founded by John Plaza in late 2003 as Seattle Biodiesel. • Privately funded by the founders as well as leading venture capital firms including Nth Power, Technology Partners and Vulcan Capital. • Building 100 million gallon biodiesel plant (one of the nation’s largest) in Grays Harbor, Washington. • The company expects to begin production at the plant in 2007 and have 400 million gallons of capacity on line by 2008. Biofuels Market Economics Production Misconceptions Imperium About Imperium Renewables We sell directly to leading fuel distributors including • Pacific Northwest Energy Company (SC Fuels) • Associated Petroleum Products • Pettit Oil • SeaPort Petroleum • Genesee Home Heating We also sell our glycerin in 275 gallon totes About Imperium Renewables • Building 100 million gallon biodiesel plant (the nation’s largest) in Grays Harbor, Washington. • Off-take agreement with large industrial user. • Tri-modal logistics • Expect to begin production in mid-2007. About Imperium Renewables • New plant will bring economic benefit to cities of Hoquiam and Aberdeen while establishing Washington as the leader of this new industry. • The $60 million plant will create British Columbia 250-350 indirect jobs Seattle and at least 50-60 permanent jobs Idaho once the plant is online. Grays Harbor Oregon Biofuels Market Economics Production Misconceptions Imperium US Biodiesel Production Projected US Demand* (in million gallons) (in million gallons) 80 1,200 70 1,000 60 50 800 40 600 30 400 20 200 10 75 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 * Projections based on current state and federal usage mandates as of August 2006. Biodiesel: supply vs. demand Europe leads the way Total Gap = 12.8 million tons = 3.8 billion gallons Gap = 6.7 m Gap = 3.4 m Gap = 2.4 m 2005 Production Capacity 2010 Expected Demand Source: Morgan Stanley Research 2005 US diesel usage = 62 billion gallons A small share is a big opportunity Billions % of Sector of gallons total market Potential Biodiesel Market TOTAL 62 Source: US Energy Information Administration Biofuels Market Economics Production Misconceptions Imperium • US Navy, Air Force, Marines Who Uses Biodiesel? • Medford School District (NJ), • US Forest Service, Postal Service, Warwick Public Schools (RI), Department of Agriculture, National Parks, Chicago School Transit (IL), Deer GSA Valley School District (AZ), St. Johns Public Schools (MI) • Cities of Seattle, Philadelphia, St. Louis, Keene (NH), Berkeley, Chattanooga • States of Washington, Alabama, Connecticut, Delaware, New Jersey, • Florida Power & Light, Omaha Public Missouri, Virginia, North Carolina Power, Austin Energy, San Diego Gas & Electric, Florida Power & Light, Madison • More than 250 major commercial Gas & Electric, Duke Power, Alabama fleets including John Deere, Power, Georgia Power, Reliant Energy, Budweiser, New Belgium Brewery, Pacific Gas & Electric, Commonwealth Alcoa, Cliff Bar, LL Bean, Fetzer Edison Vineyards, Jones Soda Co. • Transit of Northern Kentucky, NJ Transit, SW Ohio Transit, TriMet Transportation (Portland, OR), Cincinnati Metro, Twin Cities Transit (MN), King County Metro Biofuels Market Economics Production Misconceptions Imperium What’s driving market growth? • State legislation ◦ 4 states have usage mandates (+ 5 pending) ◦ 41 states offer production or usage incentives • EPA ultra low sulfur diesel regulations ◦ Biodiesel aids lubricity at even 1% • Biodiesel Blenders’ Credit • Concerns about environment & energy security • USDA Bioenergy Program Growing demand for biodiesel Five states have enacted Renewable Fuel Standards, and another six are in process. Highlights include: • Washington - Starting in 2008, all diesel sold retail must contain 2% biodiesel; expected to increase to 5% by 2010. • Portland, OR - Starting July 2007, all diesel sold in the city must be 5% biodiesel; in 2010, that increases to 10%. By 2010, these mandates alone will require the use of over 73 million gallons of biodiesel each year. Any Questions?
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