• Business Summary

    Complimenting the supply of wood pulp logs, shavings, and chips to be delivered by truck for processing plant to be located northeast Florida fiscal incentive industrial zone in order to manufacture wood briquettes and/or wood pellets to be loaded in rail and then bounded to closest deepwater port for export to European commercial and/or industrial rising bioenergy market.

     

  • Management

    Mr. Reis devoted 4 years for the intensive investigation of the wood-to-energy market in Florida, accumulated a network of engineers, consultants and individuals directly involved in the wood-to-energy business in the U.S. and abroad.

 

Customer Problem

In order to comply with the directives for reducing CO2 emissions of the Kyoto Protocol, the entire european energy industry must, by 2020, make use of at least 20% renewable resources in its power grid.

 

  • Product / Services

    The pellet combustion or co-generation is considered a carbon-neutral cycle, for the reason that it will release back into the atmosphere the same amount of CO2 it was consumed during the tree growth period through the process of photosynthesis (offset operation); whereas fossil fuel add on to the atmosphere what was already stored within the earth crust. Consequently, making the wood-pellets a clean source of renewable energy.

 

Target Market

The wood-to-energy market is poised to grow from a 2 billion to a 20 billion dollar per year market in the next 10 years. A conservative increase in demand of 18% after 2010, it is estimated that demand could comport 80 million tons per year by 2020; with an optimistic increase of 25% after 2010, it is estimated a demand of 140 million tons per year by 2020. The pellet production in 2009 was close to 13 million tons per year.

 

Customers

Utility power plants, co-generating along coal, in Europe, are by far the largest consumers of pellets, but it can also be bagged for residential use. Briquette are mostly for commercial/light industrial market.

 

Sales / Marketing Strategy

Industrial production requires a small number of buyers. The production would be sold for a handful of bulk buyers in contracts of 2-3 years. The bargaining power is all in the hands of the producer of wood-pellet. Thus, there is room for competition among buyers and security for the producer in an eventual breach of contract. Sales for takeoff can begin negotiations through export websites, company may be noticed by ads in energy magazines.

 

Business Model

We will monetize operations by the bulk sales of wood briquette/pellets at 135 Euro per metric ton through payments received in the form of Commercial Letter of Credit.

 

Competitors / Advantage

Without government intervention by putting a price on CO2 emissions, the biomass-to-energy industry would have a harder challenge in order to compete with economics and cultural habits of coal and oil usage. But, as we know, coal has price in Europe and oil is finite source of energy. The massive demand for this product virtually eliminates competition, leaving only room for improving product quality and efficiency, which is already happening.

Strategic geographical location which improves business economics. We will apply the biomass torrefaction technology in industrial plan which in return may save up to 40% in total business cost within 5 years.