investor presentation biomass energy enhancements, llc where money meets idea

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INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

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Page 1: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

INVESTOR PRESENTATION

Biomass Energy Enhancements, LLC Where Money Meets Idea

Page 2: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Cautionary Statement

The following document contains certain forward-looking statements and forward-looking information, which is based on current expectations, estimates, projections, assumptions and beliefs. By their nature, forward-looking statements involve a number risks and uncertainties, because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements may be identified by words such as “believes”, “expects”, “anticipates”, “projects”, “projected”, “pro forma”, “intends”, “forecasted”, “forecast”, “assumed”, “should”, “continue”, “seeks”, “may”, “will", "estimates”, “estimated”, “future”, “could”, “probably” or similar words or expressions or by discussion of strategy, goals, plans, intentions or projections of revenues, earnings, segment performance, cash flows, contract awards, market size, industry trends, expenses and future financing.

It is believed that the expectations reflected in the forward-looking statements and forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct, and such forward-looking statements and information should not be unduly relied upon, because the actual future results may differ materially from the plans, goals, and expectations set forth in such forward-looking statements. The forward-looking information and statements are only as of the date they are made. All subsequent written and oral forward-looking statements made are qualified by the cautionary statements in this section. There is no undertaking or assumption of any obligation to update or revise any of the included forward-looking statements or information, whether as a result of new information, changes in expectations or circumstances, future events or otherwise.

Page 3: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Confidentiality Statement

The information in this document is confidential to the person or entity to whom it is addressed and should not be disclosed to any other person or entity. It may not be reproduced in whole, or in part, nor may any of the information contained therein be disclosed without the prior consent of the Company which is being featured in this document. A recipient may not solicit, directly or indirectly (whether through an agent or otherwise) the participation of another institution or person without the prior approval of the directors of the Company which is being featured in this document.

The contents of this document have not been independently verified and they do not purport to be comprehensive, or to contain all necessary information to make an investment decision. No representation, warranty or undertaking, expressed or implied is or will be made or given and no responsibility or liability is or will be accepted by the company being featured in this document or by P2P Financial Inc., doing business as Optimize Capital Markets, or by any of its directors, employees or advisors in relation to the accuracy or completeness of this document or any other written or oral information made available in connection with Optimize Capital Markets.

Any form of reproduction, dissemination, copying, disclosure, modification, distribution and or publication of this material is strictly prohibited.

Page 4: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

$15,000,000 Financing

Biomass Energy Enhancements, LLC (BEE) provides a technology that beneficiates biomass (all herbaceous and woody biomass) by removing entrained salts, minerals, and other contaminants that would otherwise preclude their use as a feedstock for solid, liquid and/or gaseous biofuels. The BEE process also improves the bulk and energy densities of biomass. Our end product has an equal or better BTU value than coal with much fewer toxic emissions than coal produces. BEE will offer systems ranging in size between one ton per hour and 20 tons per hour to the biomass fuels and chemicals industries.

Biomass Energy Enhancements, LLC

The use of biomass-derived fuels is substantially constrained because:• High moisture content and low bulk and energy densities of biomass are too low to justify high handling and transportation costs• Entrained salts, a high volatile content, and low energy density of biomass precludes its use as a solid boiler fuel• Available biomass drying technologies use a lot of energy and, do not remove entrained salts and minerals.Millions of tons of biomass are discarded as waste each year• Decaying biomass produces methane, a potent greenhouse gas• Typically 50% to 70% of trees harvested for lumber are wasted• Approximately 50% of the energy content of food crops is not utilized

Solving the Industry’s Problems

The Solution: Biomass Energy Enhancements

Page 5: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Market Opportunity

Page 6: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Market Opportunity

Bark and Sapwood Forestry Residues

B.C. Hog Fuel As Rec’d Beneficiated (D %)

LHV (BTU/lb.) 2687 9234 243%

M/C 70% 12% 71%

Sodium (ppm) 4552 426 91%

Chloride (ppm) 5053 406 92%

Sulfate (ppm) 3928 481 88%

10 Tons @ 70% Moisture content

2.7 Tons @ 10% Moisture content

Energy Stored in As Rec’d Biomass: 2687 BTU/lb. x 2000 lb./Ton x 10 Tons = 53.7 MMBTU

Energy Content of Beneficiated Biomass: 9234 BTU/lb. x 2000 lb./Ton x 2.7 Tons = 49.9 MMBTU

Energy Required to Beneficiate Biomass: 250 BTU/lb. x 2000 lb./Ton x 10 Tons = 5 MMBTU (from boiler)

Energy Content of Volatiles Removed from Biomass (Recovered and Recycled) 53.7 – 49.9 = 3.8 MMBTU

\6.7 Tons of Water

0.6 Tons of Volatiles and Salts

$60.00/Ton x 2.7 Tons = $162.00

$5.00/Ton x 10 Tons = $ 50.00

2.7 Tons @ 12% moisture content

$6.00/MMBTU x 5 MMBTU = $30.00

Page 7: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Market opportunity exceeds $1 Trillion Worldwide

Exceeds $135 Billion Worldwide

US and Canada exceeds$265 Billion

World Estimates exceed $300 Billion

Market Size

Total Available Market

Distributed Energy Market

Page 8: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Competitive Advantages

• Disruptive technology affords first-mover advantage

• Ease of manufacturing allows multiple suppliers and vendors

• Technology and products protected by an array of pending patents

• Technology beneficiates all varieties of plant-based biomass feedstocks equally well

• The BEE is the only technology that allows customers to access contaminated low-cost and plentiful biomass stockpiles

• Technology lends itself to international licensing

Core Strengths & Advantages

Page 9: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Product / Tech. Components• Proprietary process algorithms and controls - The BEE technology employees well understood biomass pre-treatment

techniques in various combinations to achieve the desired results in the most economical way possible. A customized process algorithm (recipe) is provided to the customer at the time of purchase. The algorithm is encoded directly into the controls system of the platform prior to delivery and installation.

• “Continuous batch” bioreactors - BEE’s proprietary automated bioreactor feed system assures the reliable operation of its bioreactors so that a near continuous stream of beneficiated biomass is produced with consistent quality.

• Rapid depressurization system - The BEE process typically employs at least three distinct biomass pre-treatment steps. One of these steps is referred to as “steam explosion.” As its name implies, the technique requires that the bioreactor be depressurized as close to instantaneously as possible in order to achieve optimum results.

• Dewatering and densification - After the beneficiated biomass leaves the bioreactor, it undergoes a process of dewatering and densification. The degree of dewatering and densification is established by the customer’s specification. In some cases, the customer may elect to compact the beneficiated biomass into extremely dense pellets or briquettes.

• Water/solvent recovery and contaminant disposal - BEE’s objective is to offer a system to that meets the definition of “zero discharge.” This stringent standard requires that essentially all contaminants recovered from the biomass are removed from the liquid effluent stream prior to discharge. In fact, the BEE system produces water that can be surface discharged without the need for special permits. The recovered contaminants are encapsulated for routine disposal in regular landfills.

Page 10: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Core TechnologiesFeatures

Scalable – Systems available from one ton per hour (output) to 20 tons per hour, or larger

Customizable – Our modular design allows us to offer the tailored solutions that our customers need

Flexible – All of our systems are delivered with preprogramed algorithms (“recipes”) designed according to the customers specifications

Reliable – The BEE systems will be built by qualified manufacturers from the best materials and components. Our systems will likely operate for many thousands of hours with only minor maintenance. Installation and major maintenance services are available.

Efficient - BEE’s proprietary system is extremely efficient. The BEE process uses less than half the energy that conventional thermal biomass dry technologies use to remove moisture plus, the BEE system removes entrained salts and other contaminant along with the unwanted moisture.

Clean – The water removed from biomass feedstock through the BEE process is suitable for surface discharge. Discharged water will satisfy all governmental regulations. The system will capture and destroy volatile organic compounds and will separate and encapsulate contaminants extracted from the biomass for landfill disposal.

Page 11: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Intellectual Property• “Midstream, flexible method for beneficiating many varieties of biomass into an end product suitable for use as feedstock for

various types of energy production”; Philip James Scalzo and Carleton Drew Tait, US Provisional Patent Application No. 61/867,952, Patent Pending

• “A transportable system for converting biomass residues into electricity and biochar/activated carbon”; Philip James Scalzo and Carleton Drew Tait, US Provisional Patent Application 61/971,329, Patent Pending

• “An enabling process for the use of contaminated biomass for downstream energy production”; Philip James Scalzo and Carleton Drew Tait, US Provisional Patent Application 61/974,876, Patent Pending

• “A solid fuel consisting of beneficiated biomass and coal suitable for combustion in existing boilers”; Philip James Scalzo and Carleton Drew Tait; US Provisional Patent Application 62018830, Patent Pending

• Have now completed filing 19 U.S. Patents with over 300 claims and PCT International Patent protection

Page 12: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Marketing Strategy

Product Strategy

• BEE’s primary objective is to get its proprietary technology into the market as quickly as possible so that it may enjoy “first mover advantage.” The fact is that no other company or technology (as far as we know) is as focused on the “midstream” biomass beneficiation market as is BEE. BEE’s control system allows the operator to select both the chemistry and operating conditions necessary to produce a beneficiated biomass that is best suited for the customer’s downstream application.

Pricing Strategy

• Pricing will be based on the customers avoided cost based on the processed biomass vs. unprocessed biomass and the benefit created for that market or customer. The price compared to the current estimated manufacturing costs, it has been determined that in all studied cases we would enjoy a 100% mark-up over cost. This pricing strategy would allow the capital recovery for a customer to be achieved in between 3 to 5 years based on these case studies.

Promotion Strategy

• Our strategy is to focus on the markets that have exhibited the highest return on investment for the customers that utilize BEE’s process. This will create a foothold into that vertical market and allow us to build on the momentum created and capture the market share. This will mandate BEE as the “Go To” supplier for Enhanced Biomass.

Geography of Distribution

• The potential markets are diverse and global as almost every downstream biomass based process, to varying degrees, would benefit substantially by using BEE beneficiated biomass.

Page 13: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Key Milestones

Sept. 2012Establishment of Kaysville, UT R&D Facility

Jun. 2014Formation of Biomass Energy Enhancements, LLC through the merger of CTP Biomass Technology Group and North American Biomass

May 2015U.S. Patents with over 300 claims and filing of PCT International protection

Jun. 2015First sale of a 4TPH Platform

Mar. 2016Delivery, installation, testing and acceptance of the first 4 TPH Platform.

Mar. 2014Commissioning of 1 TPD Demonstration Platform.

Page 14: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Management TeamChas Fritz, CEOChas Fritz is a seasoned executive with a strong record of leadership and achievement in media and telecommunications CEO Role, private equity, business development, sales and marketing, strategic planning, finance, business valuations, and operations. Experience includes strong financial and Sales driven skills with an evangelistic ability to motivate and lead organizations. Executive level contacts that is deep into the global media and telecommunications market. Accustomed to highly responsible, results oriented positions with proven skills in Leadership, Management, Sales, Strategy- Development, Team-building, Finance and Persuasive Communications. Strong Public experience as both Chairman of the Board and CEO positions. Expertise in Mergers and Acquisitions, Alternative Energy Markets and Project financing. Ability to drive IP Licensing and Technology Licensing.

Charles Hess, COOPrior to becoming a founding partner of BEE, Mr. Hess was Chief Operating Officer for North American Biomass, Inc. and Vice President of Operations for EMB Energy, Inc. Has proven senior management experience in the private and public sectors including: new business start-ups, business operations, corporate affairs, internal and external communications, public and community relations, corporate contributions, government affairs, media relations, investor relations and administration. In addition, he has outstanding communication skills with the ability to organize, motivate and lead a team to exceed set goals and objectives. Mr. Hess has particular expertise in the organizing, drafting and implementation of corporate documentation, contracts, financial, business and marketing plans.

Page 15: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Management Team

Dr. Doug Van Thorre, Director of IPPrior to becoming a founding partner in BEE, Dr. Van Thorre has been working exclusively in the research and development area of the extraction and manipulation of carbohydrates for a broad range of renewable resource or “green chemistry” applications. This research and subsequent discoveries led him to the founding a Company, Biorefining, Inc., in 2000, one that is completely devoted to the maximum processing and utilization of annually renewable resources. At Biorefining, Inc., Dr. Van Thorre was issued two patents and had fourteen patent applications pending.

Michael L. Catto, Vice President of ManufacturingMr. Catto brings strong leadership to BEE and extensive experience managing growth companies. Most recently, Mr. Catto was the Executive Vice President of Operations for Biothera, Inc., a start up Biotech Company that has two INDs in Phase 2 trials. Previously, Mr. Catto was President of Niro Atomizer Food and Dairy, Inc., a U.S. subsidiary of the Danish company Niro A/S. He also managed his own Engineering and consulting businesses in which he specialized in engineering and operations related to food, dairies, pharmaceuticals, and municipalities and worked internationally on numerous design/build projects.

Philip J. Scalzo, CTOPrevious to BEE, Mr. Scalzo was Chief Executive Officer for North American Biomass, Inc. Mr. Scalzo’s long-standing expertise in the energy industry place him at a top level of industry professionals. He has testified before Congress and written numerous papers and articles about all aspect of energy utilization ranging from nuclear to biomass. He has 30 years in the power sector and 10 years of direct responsibility for managing operations of a several billion-dollar fleet of energy assets.

Page 16: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Management Team

Russell Taylor, VP of Marketing & Business DevelopmentMr. Taylor brings over 20 years of experience from the commercial finance arena. His strengths lie in his time management, goal setting, presentation skills and his ability to motivate and manage people. He has a unique ability to create long term relationships and work with all to obtain common goals. He is responsible for the development of strategic associations that foster advocacy, investment and sales across all of the company’s technical and operational areas.Prior to joining BEE, Mr. Taylor was a founder of North American Biomass, Inc.; Solar Nation Inc., and is also a managing member of TFT Management, LLC. Over the past several years he has obtained funding in excess of $200 million USD for commercial projects throughout the United States.

Drew Tait, Chief Science OfficerPrevious to BEE, Dr. Tait was Chief Science Officer for North American Biomass, Inc. His previous experience included; Chief Scientist, Triton Scientific, 2007 – 2012; Chief Scientist for the Energy Technology Center and Senior Scientist for the CBRNE Center within the Oklahoma State University Multispectral Laboratories (UML), Virginia Beach, VA 2007 – 2010 and North Salt Lake, UT 2010 – 2012; Chief Science Officer & Senior Vice President, Internal Research and Development, EMB Energy, North Salt Lake, UT 2010 – 2012 and Chief Science Officer, US Biomass, Kaysville, UT 2011 – 2012 Dr. Tait’s broad range of dynamic experience and education place him at the forefront of helping develop the BEE products.

Page 17: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Projected Revenues

$15,650,000 $63,983,158

$119,938,141

$294,468,953

$655,367,465

Page 18: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Use of ProceedsCategory Amount

COGS $7,500,000

G&A $3,000,000

Product Development $800,000

Warranties $375,000

Engineering $600,000

Business Dev., Marketing, Legal, Investment Banker Fees $2,725,000

TOTAL $15,000,000

Page 19: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea

Updates (since May 1, 2015)

• BEE has now progressed from a start-up company to a go-to-market business. The Company has completed a full set of engineering documents with a best of breed engineering/manufacturer firm, Munro Manufacturing (http://leandesign.com/)

• Partnered with Foster Wheeler (https://www.fwc.com/) a first-in-class site engineering firm capable of world-scale projects;

• Partnered with a top equipment manufacture, Lee Manufacturing (http://www.leecontracting.com/);

• Established a customer pipeline with an expectation of approximately 187 4TPH systems over the next five years;

• Sixty-Seventy percent of the funds from the current offering of $15MM will be used to build the first 3-4 units for the Company’s customers.

Page 20: INVESTOR PRESENTATION Biomass Energy Enhancements, LLC Where Money Meets Idea