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					Vermont Organics

 Vermont Organics Reclamation
Vermont Organics

 Vermont Organics Reclamation
Vermont Organics Reclamation
 Business Overview

Vermont Organics Reclamation
The Problem

• Dairy farming results in a continuous
  accumulation of manure that both ties up
  farm resources and is a known source of
  water contamination
   – net: a headache for the farmer
 The Opportunity
• Manure contains crop nutrients, water, and
  organics that can be reclaimed
   – net: a farm asset

          Vermont Organics Reclamation
VOR’s Business Idea

• VOR has shown the feasibility of stabilizing
  extracting nutrients from manure, stabilizing them,
  and custom mixing fertilizers using them

• Water for irrigation or wash and organics for bedding
  are valuable by-products

• VOR will take the technology to the farm in mobile
  manure management service modules

• For larger farm operations VOR will install and
  maintain permanent installations

            Vermont Organics Reclamation

  –   Company Overview    –   Competition
  –   Mission Statement   –   Goals and Objectives
  –   Value Proposition   –   Financial Plans
  –   Technology          –   Resource Requirements
  –   Business Concept    –   Risks
  –   Company Team        –   Key Issues
  –   Market Summary      –   Summary
  –   Opportunities       –   Contacting VOR

             Vermont Organics Reclamation
The Company

• VOR – Vermont Organics Reclamation, Inc.

  – A northwestern Vermont, science based business

  – That provides technology, systems, and services for manure
     o mobile service for smaller farms
     o permanent installations for the largest farms

  – Turning the problem of manure management into a farm
     o The method mitigates the issues of surface and ground water
       contamination by stabilizing and concentrating nutrients
     o And provides fertilizer tailor mixed to individual farm needs
     o And conserves water and organics for farm use
     o Reducing farm costs and increasing profits

             Vermont Organics Reclamation
Mission Statement

•   VOR is determined to establish and grow a
    manure management business that
    – Provides economic advantage to its farmer
      customers, large and small
    – Reduces the degradation of water resources by
      manure runoff
    – Provides a fair profit to its owners

•   VOR will grow its business consistent with
    its ability to satisfy these goals

            Vermont Organics Reclamation
VOR’s Message

• “We come to your location with mobile manure
  processors that transform accumulated manure
  into nutrient rich fertilizer, cake organics for
  bedding, and “grey” water suitable for irrigation,
  barn wash, or infiltration.”

      …Tim Camisa, President of Vermont Organics Reclamation.

             Vermont Organics Reclamation
The Value Proposition (1)

          VOR’s manure management services
          give the farmer

            Time to focus on Milk Production

 Realization of Manure’s Asset Potential

             Protection for water resources

          Vermont Organics Reclamation
The Value Proposition (2)

• Farmers are relived of manure management
  time and cost burdens

• Farms conserve their water and nutrient

• Farms turn manure waste into reducing
  expenses and even revenue

• Farms become proactive in the protection of
  water resources from runoff of manure
  nutrientsVermont Organics Reclamation
The Value Proposition (3)

•   VOR’s manure management services and nutrient extraction technology benefit
    farmers by:

     –   Relieving the farmer of the burden of manure management
           o   mobile waste management services tailored to individual farm accumulation rates
           o   Allows farmers to focus limited resources on their core business:
                   •   milk production
                   • herd management

     –   Providing an opportunity to turn manure waste into a farm resource
           o   Reclaimed Nutrients as fertilizer
           o   Reclaimed water for irrigation, barn wash, or infiltration
           o   Reclaimed organics as bedding

     –   Supporting permanent on-site installations for the larger farms

     –   Providing a proactive approach to reducing nutrient runoff contamination
           o   Manure contains high concentrations of nutrients: Nitrates (N), Phosphates (P), and Potassium salts (K) or NPK
           o   NPK are contaminants in runoff with serious consequences on the quality of streams, lakes, and ground water.
           o   Spreading manure on farmlands may soon require more than 2.5 acres per cow and $150 / year in operational cost
           o   VOR’s technology and services allow the dairy farmer to avoid the costs of owning and maintaining land and
               spreading equipment for the purposes of waste disposal
           o   VOR’s approach buffers farmer from further tightening regulations

                          Vermont Organics Reclamation
Science Based, Practical

  – VOR has demonstrated a unique electrocoagulation technique for
    stabilizing the nutrients
     o Phosphorus (P), Nitrogen (N), and Potassium (K)

  – The system is being demonstrated in a mobile unit that
    transforms raw manure into useful components at the farm!
     o   Stabilized nutrients custom mixed to each farm’s needs
     o   Benign grey water for irrigation, barn wash, or infiltration
     o   Cake organics for bedding material
     o   Reducing the volume of waste
  – Mobile Service Modules provide manure processing
     o at the farm
     o at the farm’s pace

               Vermont Organics Reclamation
VOR Program

 •   The VOR Program:
 •   Standard mechanical modules
      + Proprietary nutrient             •Saves Time
        extraction by
        + compact configuration
          + focused knowhow              • Saves Money
            + farm specific program
     A unique solution to
     environmentally friendly            • Protects the
     manure management that                Environment
     conserves the farmer’s
         …time, water, and
               Vermont Organics Reclamation
                ...and money
VOR Process Flow

       Vermont Organics Reclamation
Business Concept (1)

       …an Asset
          … not a problem

         Vermont Organics Reclamation
Business Concept (2)

• Today,
  – the nutrients in manure are inefficiently processed
  – 80-90% of nutrients are water soluble and contaminate
    water resources
  – Methane generators make inefficient use of the organics in
    manure and waste nutrients
  – Regulatory constraints continue to tighten
  – Too much time and money goes to manure management

            Vermont Organics Reclamation
Business Concept (3)

• The nutrients in manure are
  inefficiently processed:
   – Spread in solid or liquid
     form across cropland
       o 80-90% of Phosphorus is     • VOR technology efficiently
         subsequently leached into     extracts the nutrients
         surface and ground water       – 80-90% of nutrients
   – Digested into methane                retained as water soluble,
       o High use of methane to           but stabilized, compounds
         provide process heat             suitable for use in fertilizer
         reduces efficiency             – leaving “grey” waste
       o Produces unwanted                water, virtually free of
         contaminant gases (S02,          Phosphorus
         CO2, …)
       o 90% Phosphorus escapes         – And caked organic bedding
         as nutrient rich waste           material
         water that contaminates
         surface and ground water
• Running head-on into
  environmental conflict
               Vermont Organics Reclamation
Business Concept (4)

• VOR’s business plan calls for
   – Making the nutrient extraction technology available at the
      o Mobile collection service that goes to the farm
      o Permanent at farm installations

   – Enabling sludge dehydration for
      o At farm custom fertilizer mix
      o Regional commercial fertilizer mixing plants
      o Organic base for compost production

   – Providing the farmer with
      o   More time
      o   Reduced costs
      o   Reclaimed resources and value
      o   Proactive participation in protecting the environment
               Vermont Organics Reclamation
Overall Concept
                                                            At the Farm

               VOR                                           VOR
              Process                                       Process
              (Mobile)                                      (Fixed)

At Farm Use          At Farm Use              At Farm Use

                            Regional           Compost
                             Plant              Plant

                                                     Central Facilities

                  Vermont Organics Reclamation
Business Concept (5)

• VOR’s business plans:
  – Building on laboratory demonstrated technology1

  – A demonstration of the complete apparatus and extraction
    process is underway at the Montagne Farm, St. Albans Bay,

  – Commercial mobile unit is planned to be built in Summer 2005

  – Pilot trials of the mobile service is planned to be available in
    Autumn 2005

  – Pilot dehydration and mixing trials are planned to be initiated in
    Spring 2006

  – Mobile Service is planned to begin in Spring 2006

  1 - The Lake Champlain Basin Manure Management Demonstration Project, August 15, 2003

                            Vermont Organics Reclamation
Business Concept (6)

• VOR’s regional targets:
  – Vermont
     o Franklin & Addison Counties
     o Other Vermont Counties
  – New York State
     o St. Lawrence Valley
     o Mohawk Valley
  – Quebec / Ontario
  – New England States

           Vermont Organics Reclamation
Overall Concept - Operations
                                                            At the Farm

               VOR                                           VOR
              Process                                       Process
              (Mobile)                                      (Fixed)

At Farm Use          At Farm Use              At Farm Use

                            Regional           Compost
                             Plant              Plant

                                                     Central Facilities

                  Vermont Organics Reclamation
Service Options

• The farmer chooses -
  – mobile or fixed location service
  – frequency of service
  – at farm custom mixed fertilizer
    or off-farm shipment of organics and
  – Use of “grey” water to irrigate, wash, or

          Vermont Organics Reclamation
The VOR Team
•   Management:

     – Tim Camisa, President and CEO.                   Mr. Camisa is Director of the Kendall Center for Rural
        History and Technology. He is also a businessman and real estate developer in northwestern Vermont. His
        business acumen combined with his fervent interest in mitigating the contamination of lakes and streams by
        farm runoff has led him lead this science based, entrepreneurial venture.

     – Michael Rooney, CFO.           Mr. Rooney has a BS in Finance and Marketing from the University of
        Vermont. He has eighteen years experience in managing diverse businesses in Vermont.

     – Rick Jeffrey, Field Maintenance manager.                    Mr. Jeffrey has extensive experience in the
        maintenance of building support systems and engines for commercial businesses. His responsibilities
        include the operation and maintenance of VOR’s installed systems.

•   Technical Advisors:

     – Roland Luxenberg, President of Aquaterra.              Mr. Luxenberg is an expert in water, wastewater, and
        soils contamination assessment and treatment. He holds a degree in Civil Engineering from MIT. His efforts
        will be directed toward developing strategies and techniques for the re-use of the final wastewater effluent.

     – Dr. Frederick Wiseman, Professor at Johnson State College.                 Dr. Wiseman holds PhD in
        Geosciences from the University of Arizona. His experience in writing grants and managing the associated
        public and governmental awareness projects will be an integral part of VOR’s public relations efforts.

                       Vermont Organics Reclamation
Market Summary
•   Smaller dairy farms
     – Fewer than 500 animals
     – Candidates for VOR’s mobile
     – 1300 in Vermont
     – Larger dairy farms
     – More that 500 animals
     – Candidates for VOR’s
                                        • Vermont – Statewide $45M
       permanent installations            /year
     – 100 in Vermont
•   Initial focus in Vermont.
     – Manure management market         • USA Market estimated to
       estimate:                          exceed $ 1.3B
          o Vermont        - Franklin
            $ 10M /yr
          o Vermont        - Addison
            $ 8M /yr
•   Longer Term
     –   New York
     –   Quebec / Ontario
     –   New England
     –   Other USA / Canada Dairy
         Regions Vermont Organics         Reclamation
Market Estimates

  • Typical Vermont Dairy Farm Characteristics (500 Cows)

                             Milkers        Dry         Total

     # Cows / farm             335          165          500

     Manure Production        12.2          3.8         16.0
     (tons /yr /farm)

     Removal Cost ($/yr)     $61,138      $15,058      $76,194
     Total All Farms

   • $ 10.3M in disposal cost for Franklin County’s 45,000 cows!
   • $ 7.8M in disposal cost for Addison County’s 35,000 cows!
   • $ 45.6M in disposal cost in Vermont’s statewide 300,000 cows!

              Vermont Organics Reclamation
Market Potential

• The US Dept of Agriculture says that in the
  early 2000s there were:
  – 90,000 dairy farms
  – Averaging 100 cows each
  – Or 9,000,000 cows in the USA

• At $150 /cow /yr that represents a total US
  manure disposal market of $1.3B /year for
  dairy farms alone

          Vermont Organics Reclamation
USA Producers of Milk

•   Milk is produced in all 50 States, with total annual production currently around 170 billion pounds of milk.

•   Since 1970, milk production has risen by almost half, even though milk cow numbers have declined by
    about one fourth (from about 12 million to roughly 9 million in the early 2000s). Milk production per cow
    nearly doubled, from 9,700 pounds per year to nearly 19,000 pounds. Similarly, the number of dairy
    operations declined from about 650,000 in 1970 to roughly 90,000 in the early 2000s, while over the same
    time period the average herd size increased fivefold from about 20 cows to 100 cows.

•   The top 10 milk producing States during the late 1990s and early 2000s have been:

               New York
               New Mexico

•   Per US Dept of Agriculture Website!ut/p/_s.7_0_A/7_0_1OB?navid=SEARCH&mode=simple&q=dairy+cow+po

                        Vermont Organics Reclamation

• Potential in non-dairy business
  – Feed Lots
     o Hogs
     o Beef
     o Poultry
  – Fertilizer production
  – Franchising

            Vermont Organics Reclamation
Competition (1)

 • Manure management alternatives include
   – Traditional Overspreading
   – Manure Digesters
   – Centralized Haulers

 • VOR’s services and technology provide
   greater recovery of manures assets while
   protecting the environment from runoff

          Vermont Organics Reclamation
Competition (2)
   Manure Management Alternatives
   Type                   Pros                  Cons

   Traditional            •Time Honored         •Soluble Water Contaminants
   Overspreading          •Entrenched           Threaten Water Resources
                                                •Increasingly constrained
                                                •Inefficient use of resources

   Manure Digesters       •Has the public eye   •Inefficient in winter
                          •Energy source        •Retains Water Contaminant Threat

   Central Haulers        •Time management      •Defaults to overspreading or
                                                •Shortchanges asset value to farmer

                                                •Farm scale trials underway

                     Vermont Organics Reclamation
Goals and Objectives

 Summer 2003:   Technology Feasibility

 Summer 2005:   Demonstrate on farm scale (ongoing)

• Summer 2005:    Build mobile unit

• Autumn 2005:   Mobile unit pilot trials

• Spring 2006:   Commercial mobile service

• Spring 2006:   Pilot demonstration of
                 commercial dehydration & mixing

• Summer 2006:   Initial permanent installation in operation

            Vermont Organics Reclamation
Financial Plan

• VOR plans
  – to pilot mobile operations in 2005 to establish the
    R&D needs and operational cost parameters
  – Begin commercial operations in early 2006

• The immediate target is the more than $45M
  /yr spent on overspreading manure in

• VOR will need $500-750K over next 12mos
           Vermont Organics Reclamation
Resource Requirements

• VOR expects to detail the needs for
       •   Personnel
       •   Manufacturing Operations
       •   Service Operations
       •   Facilities
       •   R&D
       •   Distribution
       •   Promotion
       •   Financing

        over the next 90 days

            Vermont Organics Reclamation

• Risks:
  – Technical: efficiency of at farm scale
     o Ongoing testing at Montagne Farm

  – Operational: workable mobile configuration
     o $500-750K required

           Vermont Organics Reclamation
    Key Issues
•    Near term
     – VOR’s focus is on demonstrating operations at the
       Montagne Farm, St Albans Bay
     – Building the first mobile unit
     – Establishing and building its early mobile service client
        o Franklin County, Vermont
     – Key Issue: financing limits the rate of progress
        o $500-750K will be needed over next 12 months
•    Long term
     – Improving system efficiency
     – Growing client base
     – Establishing permanent installations

                 Vermont Organics Reclamation

  Developing, Deploying, and Operating an innovative
         alternative to manure management
                 and farm resource conservation…

  …Let’s talk about how VOR can help you

          Vermont Organics Reclamation
How to Contact VOR

             Tim Camisa

         Vermont Organics Reclamation

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