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MISSION STATEMENT
Global Fuels Alt.e's mission is to become the Largest Single Site Producer and Distributor of Ethanol/Renewable Fuels in California. Established in 2005, the Company will began constructing a large-scale Ethanol Production Facility in Kern County, California. Global Fuels Alt.e's long-term plan is to construct additional plants in Latin America.
Global Fuels AltE, LLC (GFA) is positioned as a Next Generation Renewable Energy "Vertical Integrated Bio-Fuels Producer" challenged to meet the US mandated RFS of 17 bbgpy of cellulosic bio-fuels. Global Fuels AltE, LLC intends to employ a cradle to grave business model, producing its energy crops, processing, refining and marketing of products. The company is negotiating to acquire a 77,000 acres alternative energy ranch to grow its non-food, positive climate-change, sustainable energy crops, namely, bamboo and other grasses. The site presently has wind power projects, abundant water rights and a cattle ranch.
According to the report "Destination Iowa" getting to a sustainable bio-fuels future, renewed interest in energy security and global warming in the US has spurred amazing changes in Iowa over the last decade, bringing bio-fuel refining to small towns and making farmers into energy producers. This transformation has created jobs (directly and indirectly). Surging corn prices have benefited some, but have caused a host of other problems, from pricing small farmers out of the market to putting conservation land back into production- increasing concerns about air and water pollution as well as the loss of economically important recreational and hunting areas. Current world agricultural system, like the world energy system is unsustainable. Unless it’s fixed, rising production of both fuels and food will wreak havoc.
The business model eliminates the volatility in feedstock cost fluctuation coupled with elevated commodities pricing, which historically leads to low and unpredictable revenue projections. Grains based bio-fuels processors presently spend 70% of cost for feedstock. GAF’s "Vertical Integrated Bio-Refinery" operating model reduces feedstock cost to less than 40%. In addition to reducing dependence on foreign oil, fostering a domestic bio-refinery industry model after petrochemical refineries is a primary objective of the Bio-Mass Program. Existing industries such as wet-mill corn processing and pulp and paper mills fit the multiple-products-from-bio-mass definition of a bio-refinery, but the goal is to foster new industries converting lignocellulosic bio-mass into a wide range of products, including ones that would otherwise be made from petrochemicals. As with petrochemical refineries, the vision is that the bio-refinery would produce both high-volume liquid transportation fuel (meeting national energy needs) and high-value chemicals or products (enhancing operation economics)
Milestones
Site location(s) identified with preliminary feasibility plans
Next Generation Multi-Feedstock Conversion Technology
Worldwide Exclusive Technology Marketing rights
Identifying/Secured a sustainable, non-food, positive-climate change friendly feed-stocks
World-Class Joint Venture Partners
According to the report "Destination Iowa" getting to a sustainable bio-fuels future, renewed interest in energy security and global warming in the US has spurred amazing changes in Iowa over the last decade, bringing bio-fuel refining to small towns and making farmers into energy producers. This transformation has created jobs (directly and indirectly). Surging corn prices have benefited some, but have caused a host of other problems, from pricing small farmers out of the market to putting conservation land back into production- increasing concerns about air and water pollution as well as the loss of economically important recreational and hunting areas. Current world agricultural system, like the world energy system is unsustainable. Unless it’s fixed, rising production of both fuels and food will wreak havoc.
The same report poses the following question: When will the negative effects of corn ethanol begin to outweigh any positive economic benefits? One of the limits to grain ethanol is the amount of land available for growing the feedstock. Even if the entire US corn harvest for 2006-2007 were devoted to ethanol, it would still provide only enough fuel to replace 15% of current national gasoline use.
The other main limit to corn ethanol is the ability of the environment to cope with more acres under production, and the associated rise in fertilizer and pesticides use. Currently, more than any other US crop - so much, in-fact, that 70 % of the energy inputs needed to grow the corn is embodied just in the fertilizer. Producing fertilizers is one of the most carbon intensive processes associated with ethanol production
These studies provide important new evidence to reinforce a message that the World Watch Institute produced in its pioneering 2007 book, Biofuels for Transport: "Because increases in the land area used to produce feedstock’s can result in large releases of carbon from soil and existing biomass, they can negate any benefits of biofuels for decades." Now, it turns out, the expansion of some biofuel crops could actually make the world’s climate problem worse.
As one of the Science studies concluded, "Biofuels made from waste biomass or from biomass grown on abandoned agricultural lands planted with perennials incur little or no carbon debt and offer immediate and sustained GHG advantages."
World Watch worked with the Sierra Club on the report, Destination Iowa: Getting to a Sustainable Biofuels Future, which sets forth recommendations on how, the state of
Iowa, a leading U.S. ethanol producer, could do just that. Some of the report’s suggestions for moving toward a more sustainable biofuels future include:
Accelerate development of cellulosic biofuel technologies and the infrastructure to harvest, transport, and process the new crops.
Provide incentives for low or no-till agriculture, the planting of cover crops, and the creation of riparian buffer zones.
Support farmers who want to invest in sustainable fuel crops such as perennial grasses or fast-growing trees.
Reduce tax subsidies for food-based biofuels and increase subsidies for fuels with a low-carbon footprint, such as waste and cellulose-derived biofuels.
Increase investment in solar, wind and other forms of renewable energy that provide greater climate benefits than today’s bio-fuels do.
Vertical Integrated Bio-Refineries may achieve public objectives with less distortion and move the bio-economy to next generation outputs. Executing on a business model of a sustainable, non-food-stock, non-climate change inputs platform that delivers stabilized feedstock cost, green jobs development, lessens the dependence on foreign fossil fuels, a competitive fuel extender and GHG reducer gives the company a significant competitive advantage. A strategically located pre-zoned 470 acres California site has passed pre-feasibility study with the capacity to build multiple bio-fuels facilities and create joint-venture efforts in other alternative energy sources.
"Ethanol blending could help ease U.S. refining bottlenecks and that could be ultimately reflected in lower prices at the pump," said Eric Wittenauer, an analyst at AG Edwards in St. Louis. While ethanol is typically produced from the starch contained in grains such as corn and grain sorghum, it can also be produced from cellulose. Cellulose is the main component of plant cell walls and is the most common organic compound on earth. It is more difficult to break down cellulose to convert it into usable sugars for ethanol production. Yet, making ethanol from cellulose dramatically expands the types and amount of available material for ethanol production. This includes many materials now regarded as wastes requiring disposal, as well as corn stalks, rice straw and wood chips or "energy crops" of fast-growing trees and grasses.
Producing ethanol from cellulose promises to greatly increase the volume of fuel ethanol that can be produced in the U.S. and abroad. A recent report found the land resources in the U.S. are capable of producing a sustainable supply of 1.3 billion tons per year of biomass, and that 1 billion tons of biomass would be sufficient to displace 30 percent or more of the country's present petroleum consumption.
Importantly, it offers tremendous opportunities for new jobs and economic growth outside the traditional "grain belt," with production across the country from locally available resources. Cellulose ethanol production will also provide additional greenhouse gas emissions reductions.
2008 Traction include
Complete startup funding process
Establish Corporate Infrastructure
Finalize Strategic Partner Relationship
Finalize Sites Options
Complete the permitting/Compliance Process
Complete Design Phase and begin Construction
These are just five of the dozens of companies working on a replacement for today’s corn or sugarcane-based ethanol. It’s a packed party, and with no clear leader in the field, the company to get to market first will have a significant advantage.
Several cellulosic ethanol companies, such as Cambridge, Massachusetts-based Verenium, have already begun work on pilot or demonstration plants. Many more, such as Broomfield, Colorado-based Range Fuels, say they plan to make their next-generation ethanol commercially available before the end of the decade.
But besides speed to market, what will it take to be successful in this competitive industry? The simple and predictable answer is cost, say analysts, and that will be driven by two major factors. The first is the cost of processing the biomass, like wood chips, into ethanol, and the second is securing a steady stream of low-cost feedstock.
Global Fuels will develop the largest permitted single-site in CA, with its site strategically located in the heart of the dairy/livestock and refinery and terminals markets. This coupled with energy crop production gives the company a distinct advantage in distribution cost over other plants in the market. The Destination Site is planned to become the cornerstone of an anticipated Energy Corridor
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Company
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Feed-stocks
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On-Line Date
|
Target Cost
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Capacity
|
|
Global Fuels
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Energy Crop
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2010-2011
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Under $1.00
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55,000,000
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|
Coskata
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Ag –energy crop
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2010-2011
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Under $1.00
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Not known
|
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Lanza Tech
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Flue Gas/Syngas
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2010-2011
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Undisclosed
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Not Known
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Mascom
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Wood-grass
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2010
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Under $1.40
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Not Known
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Range Fuels
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Wood Chips,Ag
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2009
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Undisclosed
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Not Known
|
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Zeachem
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Wood Chips
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2009
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Under $1.00
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Not Known
|
.
Global Fuels AltE, LLC, A California Limited Liability Company, is an Early-Stage Bio-Fuels Producer. The company’s mission is to capture a significant amount of the projected 4 billion-gallon annual bio-fuels market in California. The plant will produce cellulosic ethanol as its main product and several other additional co-products.
rack price ethanol $2.25
Phase 1
55mmgpy
Years after construction completed
Global Fuels AltE, LLC’s management team, consultants and advisors are highly qualified industry professionals with vast experience with startup, project management/development, corporate finance, securities, legal, engineering, conversion technology, plant construction and operations, farming/growing operations, purchasing and marketing. Consultants and advisors will be retained during the startup and development phase. The company, consultants and advisors are supported by global and industry leading strategic relationships. The company welcomes additional "smart-money" investors groups that that can contribute to the success of the company.
Global Fuels AltE, LLC is a business development company with a focus on alternative fuels. The company will implement a Vertical Integrated Bio-Fuels Business Plan. The company has an experienced team to actively support its startup, development and growth strategy and take it to profitability as the ever-changing bio-energy market matures. Year one of plant operations reflects a pro forma of $111,375,000 revenue, ethanol only, with EBITDA of $43,999,000 prior to tax/energy credits and co-product sales.
Global Fuels AltE, LLC is seeking to raise $5,000,000 from private investors for Early-Stage Development Funding. The company is a closely held corporation with one principal shareholder, an outside advisory board and the to-be-formed Board of Directors.
Global Fuels AltE, LLC plans to execute an exit strategy in year 3 through Merger, Acquisition or Public Offering.
Michael Walsh, executive vice president of the Chicago Climate Exchange (CCX), said it's very realistic to imagine $5 to $10 billion a year emerging in a carbon credit market for agriculture," he adds. Better yet, that's a second crop on top of the commodities you grow.
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(000)
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Year 1
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Year 2
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Year 3
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Year 4
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Year 5
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|
Revenue
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$111,375
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$148,500
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$196,875
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$222,750
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|
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Expenses
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$ 22,826
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$ 23,671
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$ 24,620
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$ 25,715
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|
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COGS
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$ 44,550
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$ 59,400
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$ 78,750
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$ 89,100
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|
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EBITDA
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$ 43,999
|
$ 65,429
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$ 93,505
|
$107,935
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