What is Biodiesel? by 2X0Z9Gt


									                           Columbia Basin
                           Biofuels Summit

Todd Ellis
Director of Business Development
 Imperium Renewables
 Grays Harbor
 Market Opportunities
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
  and at least 50-60 permanent jobs

  once the plant is online.                 Grays Harbor
Biofuels       Market      Economics        Production            Misconceptions        Imperium

      US Biodiesel Production                             Projected US Demand*
            (in million gallons)                                (in million gallons)
 80                                               1,200
 50                                                800

 40                                                600
 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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