VOR Business Overview

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VOR
Vermont Organics Reclamation
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VOR
Vermont Organics Reclamation
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(No Transcript)
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• Business Overview

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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

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VORs 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

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Contents

• Company Overview
• Mission Statement
• Value Proposition
• Technology
• Business Concept
• Company Team
• Market Summary
• Opportunities

• Competition
• Goals and Objectives
• Financial Plans
• Resource Requirements
• Risks
• Key Issues
• Summary
• Contacting VOR

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The Company

• VOR Vermont Organics Reclamation, Inc.
• A northwestern Vermont, science based business
• That provides technology, systems, and services
  for manure management
• mobile service for smaller farms
• permanent installations for the largest farms
• Turning the problem of manure management into a
  farm asset
• The method mitigates the issues of surface and
  ground water contamination by stabilizing and
  concentrating nutrients
• And provides fertilizer tailor mixed to
  individual farm needs
• And conserves water and organics for farm use
• Reducing farm costs and increasing profits

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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

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VORs 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.

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The Value Proposition (1)
VORs manure management services give the farmer
Time to focus on Milk Production
Realization of Manures Asset Potential
Protection for water resources
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The Value Proposition (2)

• Farmers are relived of manure management time and
  cost burdens
• Farms conserve their water and nutrient resources
• Farms turn manure waste into reducing expenses
  and even revenue
• Farms become proactive in the protection of water
  resources from runoff of manure nutrients

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The Value Proposition (3)

• VORs manure management services and nutrient
  extraction technology benefit farmers by
• Relieving the farmer of the burden of manure
  management
• mobile waste management services tailored to
  individual farm accumulation rates
• 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
• Reclaimed Nutrients as fertilizer
• Reclaimed water for irrigation, barn wash, or
  infiltration
• Reclaimed organics as bedding
• Supporting permanent on-site installations for
  the larger farms
• Providing a proactive approach to reducing
  nutrient runoff contamination
• Manure contains high concentrations of nutrients
  Nitrates (N), Phosphates (P), and Potassium
  salts (K) or NPK
• NPK are contaminants in runoff with serious
  consequences on the quality of streams, lakes,
  and ground water.
• Spreading manure on farmlands may soon require
  more than 2.5 acres per cow and 150 / year in
  operational cost

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Science Based, Practical

• UNIQUE TECHNOLOGY
• VOR has demonstrated a unique electrocoagulation
  technique for stabilizing the nutrients
• Phosphorus (P), Nitrogen (N), and Potassium (K)
• FARM SPECIFIC PROGRAM
• The system is being demonstrated in a mobile unit
  that transforms raw manure into useful components
  at the farm!
• Stabilized nutrients custom mixed to each farms
  needs
• Benign grey water for irrigation, barn wash, or
  infiltration
• Cake organics for bedding material
• Reducing the volume of waste
• Mobile Service Modules provide manure processing
• at the farm
• at the farms pace

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VOR Program

• The VOR Program
• Standard mechanical modules
• Proprietary nutrient extraction by
  electrocoagulation
• compact configuration
• focused knowhow
• farm specific program
• A unique solution to environmentally friendly
  manure management that conserves the farmers
  assets
• time, water, and nutrients
• ...and money

• Saves Time
• Saves Money
• Protects the
• Environment

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VOR Process Flow
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Business Concept (1)

• Manure
• an Asset
• not a problem

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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

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Business Concept (3)

• VOR technology efficiently extracts the nutrients
  
• 80-90 of nutrients retained as water soluble,
  but stabilized, compounds suitable for use in
  fertilizer
• leaving grey waste water, virtually free of
  Phosphorus
• And caked organic bedding material

• The nutrients in manure are inefficiently
  processed
• Spread in solid or liquid form across cropland
• 80-90 of Phosphorus is subsequently leached into
  surface and ground water
• Digested into methane
• High use of methane to provide process heat
  reduces efficiency
• Produces unwanted contaminant gases (S02, CO2, )
• 90 Phosphorus escapes as nutrient rich waste
  water that contaminates surface and ground water
• Running head-on into environmental conflict

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Business Concept (4)

• VORs business plan calls for
• Making the nutrient extraction technology
  available at the farm
• Mobile collection service that goes to the farm
• Permanent at farm installations
• Enabling sludge dehydration for
• At farm custom fertilizer mix
• Regional commercial fertilizer mixing plants
• Organic base for compost production
• Providing the farmer with
• More time
• Reduced costs
• Reclaimed resources and value
• Proactive participation in protecting the
  environment

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Overall Concept
At the Farm
Digester
VOR Process (Mobile)
VOR Process
VOR Process (Fixed)
At Farm Use
At Farm Use
At Farm Use
Regional Plant
Compost Plant
Central Facilities
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Business Concept (5)

• VORs 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, Vermont
• 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

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Business Concept (6)

• VORs regional targets
• Vermont
• Franklin Addison Counties
• Other Vermont Counties
• New York State
• St. Lawrence Valley
• Mohawk Valley
• Quebec / Ontario
• New England States

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Overall Concept - Operations
At the Farm
Digester
Initial Focus
VOR Process (Mobile)
VOR Process
VOR Process (Fixed)
At Farm Use
At Farm Use
At Farm Use
Regional Plant
Compost Plant
Central Facilities
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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 nutrients
• Use of grey water to irrigate, wash, or
  infiltrate

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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 VORs 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 VORs public relations
  efforts.

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Market Summary

• Smaller dairy farms
• Fewer than 500 animals
• Candidates for VORs mobile services
• 1300 in Vermont
• Larger dairy farms
• More that 500 animals
• Candidates for VORs permanent installations
• 100 in Vermont
• Initial focus in Vermont.
• Manure management market estimate
• Vermont - Franklin 10M /yr
• Vermont - Addison 8M /yr
• Longer Term
• New York
• Quebec / Ontario
• New England
• Other USA / Canada Dairy Regions

• Vermont Statewide 45M /year
• USA Market estimated to exceed 1.3B

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Market Estimates

• Typical Vermont Dairy Farm Characteristics (500
  Cows)

• 10.3M in disposal cost for Franklin Countys
  45,000 cows!
• 7.8M in disposal cost for Addison Countys
  35,000 cows!
• 45.6M in disposal cost in Vermonts statewide
  300,000 cows!

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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

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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
• CaliforniaWisconsinNew YorkPennsylvaniaMinnes
  otaIdahoTexasMichiganWashingtonNew Mexico
• Per US Dept of Agriculture Website
  http//www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_
  1OB?navidSEARCHmodesimpleqdairycowpopulatio
  nx14y12

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Opportunities

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

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Competition (1)

• Manure management alternatives include
• Traditional Overspreading
• Manure Digesters
• Centralized Haulers
• VORs services and technology provide greater
  recovery of manures assets while protecting the
  environment from runoff

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Competition (2)
Manure Management Alternatives
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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

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Financial Plan

• VOR plans
• to pilot mobile operations in 2005 to establish
  the RD 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 Vermont
• VOR will need 500-750K over next 12mos

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Resource Requirements

• VOR expects to detail the needs for
• Personnel
• Manufacturing Operations
• Service Operations
• Facilities
• RD
• Distribution
• Promotion
• Financing
• over the next 90 days

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Risks

• Risks
• Technical efficiency of at farm scale
• Ongoing testing at Montagne Farm
• Operational workable mobile configuration
• 500-750K required

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Key Issues

• Near term
• VORs 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 base
• Franklin County, Vermont
• Key Issue financing limits the rate of progress
• 500-750K will be needed over next 12 months
• Long term
• Improving system efficiency
• Growing client base
• Establishing permanent installations

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Summary
Developing, Deploying, and Operating an
innovative alternative to manure management
and farm resource conservation Lets talk
about how VOR can help you
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How to Contact VOR
Tim Camisa President 802-862-1924 eacw_at_together.ne
t