Biodigester Inc'

1
Biodigester Inc.

• Mike McKevitt
• Jimmy Wright
• Iain Stables
• Dave Puech

2
Business Proposal

• Manure Biodigester incorporated into a 5,000
  head feedlot
• Situated near Rosetown in west central
  Saskatchewan

3
Project Overview

• Process raw manure into two value added products
• Methane gas which will be burned to generate
  electricity
• An enriched form of fertilizer

4
Methane Gas

• Produced during microbial breakdown of manure
• Used to create electricity

5
Fertilizer

• More concentrated form than the raw product
• Can be classified as an organic fertilizer
• Can be sold in bulk liquid form or may be dried
  and packaged

6
Long-term Benefits

• Environmental
• Reduction in air, soil and water pollution
  associated with ILOs
• Added jobs to the rural economy
• Adding to the profitability and long term
  viability of a farming enterprise

7
Facility Layout
8
Physical Product Flow
9
Capital Budget
10
Marketing

• Products
• Energy will be marketed as environmentally
  friendly
• Fertilizer will promoted as an organic fertilizer

11
Future Markets

• Dry packaged fertilizer
• Needs addition of a water press to the facility
• Gives the opportunity to sell to gardeners,
  greenhouses, etc

12
Pricing Strategy

• Price received for energy will be controlled by
  SaskPower
• Fertilizer price will be determined by market
  forces

13
Promotion

• Will take place through brochures, web page and
  word of mouth
• Sales will be done directly without the need for
  distibutors
• Fertilizer sales will be targeted at golf courses

14
Marketing Budget
15
Sales Forecast
16
Financing Budget
17
Dividend Policy

• Estimated dividends paid to investors

18
Sales Forecast - Energy
19
Sales Forecast - Fertilizer
20
Sales Forecast Manure Removal
21
Organizational Structure
22
Employees

• General Manager
• Oversees day to day operations
• Marketing
• General office duties
• Technician
• Perform required maintenance
• Fill and monitor digester tanks

23
Employees contd

• Temporary Maintenance crew
• Seasonal employees
• Help with general upkeep of facility

24
General Assumptions

• Biodigester will be filled continuously and the
  fertilizer will be removed regularly
• Manure will be readily available year round
• The loan will have a fixed interest rate

25
General Assumptions

• Able to secure equity financing
• Inflation rates will remain at or near the same
  level
• Biodigester is able to contract the energy,
  fertilizer and manure removal

26
Conclusion

• Employee training will be critical
• Feasibility of a biodigester in Saskatchewan