Agriculture What is Biodiesel?
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
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
Imperium
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. British Columbia
Seattle Idaho
• The $60 million plant will create 250-350 indirect jobs and at least 50-60 permanent jobs 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
800
50 40
600
30
400
20
200
10
75 0
0 1999 2000 2001 2002 2003 2004 2005
* Projections based on current state and federal usage mandates as of August 2006.
2006 2007 2008 2009 2010 2011 2012
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
Source: Morgan Stanley Research
2010 Expected Demand
2005 US diesel usage = 62 billion gallons A small share is a big opportunity Sector
TOTAL
Billions of gallons
62
Source: US Energy Information Administration
% of total market
Potential Biodiesel Market
Biofuels
Market
Economics
Production
Who Uses Biodiesel? • US Forest Service, Postal Service, Department of Agriculture, National Parks, GSA • Cities of Seattle, Philadelphia, St. Louis, Keene (NH), Berkeley, Chattanooga • Florida Power & Light, Omaha Public Power, Austin Energy, San Diego Gas & Electric, Florida Power & Light, Madison Gas & Electric, Duke Power, Alabama Power, Georgia Power, Reliant Energy, Pacific Gas & Electric, Commonwealth Edison • Transit of Northern Kentucky, NJ Transit, SW Ohio Transit, TriMet Transportation (Portland, OR), Cincinnati Metro, Twin Cities Transit (MN), King County Metro
Misconceptions
Imperium
• US Navy, Air Force, Marines • Medford School District (NJ), Warwick Public Schools (RI), Chicago School Transit (IL), Deer Valley School District (AZ), St. Johns Public Schools (MI) • States of Washington, Alabama, Connecticut, Delaware, New Jersey, Missouri, Virginia, North Carolina • More than 250 major commercial fleets including John Deere, Budweiser, New Belgium Brewery, Alcoa, Cliff Bar, LL Bean, Fetzer Vineyards, Jones Soda Co.
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?
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
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
Imperium
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. British Columbia
Seattle Idaho
• The $60 million plant will create 250-350 indirect jobs and at least 50-60 permanent jobs 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
800
50 40
600
30
400
20
200
10
75 0
0 1999 2000 2001 2002 2003 2004 2005
* Projections based on current state and federal usage mandates as of August 2006.
2006 2007 2008 2009 2010 2011 2012
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
Source: Morgan Stanley Research
2010 Expected Demand
2005 US diesel usage = 62 billion gallons A small share is a big opportunity Sector
TOTAL
Billions of gallons
62
Source: US Energy Information Administration
% of total market
Potential Biodiesel Market
Biofuels
Market
Economics
Production
Who Uses Biodiesel? • US Forest Service, Postal Service, Department of Agriculture, National Parks, GSA • Cities of Seattle, Philadelphia, St. Louis, Keene (NH), Berkeley, Chattanooga • Florida Power & Light, Omaha Public Power, Austin Energy, San Diego Gas & Electric, Florida Power & Light, Madison Gas & Electric, Duke Power, Alabama Power, Georgia Power, Reliant Energy, Pacific Gas & Electric, Commonwealth Edison • Transit of Northern Kentucky, NJ Transit, SW Ohio Transit, TriMet Transportation (Portland, OR), Cincinnati Metro, Twin Cities Transit (MN), King County Metro
Misconceptions
Imperium
• US Navy, Air Force, Marines • Medford School District (NJ), Warwick Public Schools (RI), Chicago School Transit (IL), Deer Valley School District (AZ), St. Johns Public Schools (MI) • States of Washington, Alabama, Connecticut, Delaware, New Jersey, Missouri, Virginia, North Carolina • More than 250 major commercial fleets including John Deere, Budweiser, New Belgium Brewery, Alcoa, Cliff Bar, LL Bean, Fetzer Vineyards, Jones Soda Co.
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?
