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Presentation of company's business model and projects at Canada's biannual environmental trade show
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INTEGRATED CARBON
DEVELOPMENT
AN INNOVATIVE AN INNOVATIVE
BUSINESS MODEL
AMERICANA Conference
Montreal, March 23, 2011
Outline
1. Biothermica:
History & Carbon activity
2. Business model:
Integrated carbon development
3. Carbon projects:
� El Salvador landfill gas carbon project
� Alabama coal mine methane carbon project
1. BIOTHERMICA1. BIOTHERMICA
Since 1987: We develop patented air
pollution control and greenhouse gas
reduction technologies
Since 1995: We develop, finance,
Biothermica
Brief history
Since 1995: We develop, finance,
build and operate landfill methane
destruction and energy projects
Since 2005: We monetize the carbon
credits generated by our landfill gas
and coal mine methane installations
VAMOX® system
Alabama, USA
(Coal mine methane)
Gazmont landfill gas power plant (25 MW)
Montreal, Canada
Biothermica
Carbon opportunity
� Emergence of carbon frameworks since 2005
Ex: Kyoto Protocol (regulatory, international)
Climate Action Reserve (voluntary, USA)
� Monetary value for the reduction of greenhouse
gas emissions: Price on carbon ($/tCO2e)
� Opportunity for developers of various greenhouse
gas reduction project types
Biothermica
Carbon activity statement
� Developer and investor in carbon projects
� Technologies: Proprietary to Biothermica
� Revenues: recurring sale of carbon credits (not equip.)� Revenues: recurring sale of carbon credits (not equip.)
� Project types:
� Landfill methane and coal mine methane
Destruction and/or energy generation
� Carbon standards: Regulatory and voluntary
� Scope: North America and international
VAMOX® system $US 3-6/tCO2e1
Solar & Wind $US 20-35/tCO2e2
Why methane destruction?
Low production cost
Landfill gas destruction $US 5-10/tCO2e
Carbon capture & storage $US 60-80/tCO2e2
1 High VAM concentrations 2 McKenzie, 2009
2. BUSINESS MODEL:
INTEGRATED CARBON INTEGRATED CARBON
DEVELOPMENT
Biothermica manages
all project components
� Project development:
Securing methane rights
� Project financing and structuring
� Methane destruction technology
� Project construction and operation
� Carbon monitoring, verification & registration
� Monetization of registered carbon credits
Advantages of being
integrated
� Ability to optimize all project components to
maximize carbon credit production and revenues
� Control over technology, operations
& monitoring (monitoring expertise)
� Control over corporate and financial structure
Project development:
securing methane rights
� Coal mine or Landfill site is original owner of methane
rights (ownership of resource)
� Methane rights are essential to claim ownership and � Methane rights are essential to claim ownership and
legal right to sell carbon credits
� Objective is agreement with resource owner on:
� Transfer of methane rights
� Allocation of carbon credit revenues
Development approach
Model 1: Royalty based
� No investment by the resource owner,
Biothermica is sole investor
� Transfer of methane rights to Biothermica � Transfer of methane rights to Biothermica
Resource owner benefits from royalty payments
Ex: percentage of Biothermica carbon credit sales
� Main advantage for resource owner:
No financial risk
Development approach
Model 2: Joint Investment
� Biothermica and resource owner share:
� Capital investment
� Operational costs
� Carbon credit revenues � Carbon credit revenues
� Possible creation of a Joint Venture dedicated to
project operations
� Advantage for both Parties:
Strong alignment of interests
3. CARBON PROJECTS3. CARBON PROJECTS
El Salvador landfill gas carbon project
Project overview
� Location: Nejapa landfill,
El Salvador (Central Am.)
� Carbon standard:
CDM of Kyoto ProtocolCDM of Kyoto Protocol
� Investor: Biothermica 100%
� 2 phases: Methane destruction (P1)
Energy generation (P2)
Innovative carbon project insurance
World Bank MIGA
� Multilateral Investment
Guarantee Agency (MIGA)
� Insurance against expropriation,
war, civil disturbance, and war, civil disturbance, and
government letter of approval
under CDM
� Q1 2006: Secured first ever
MIGA support for a carbon
project
Carbon credit production
� April – October 2006:
Construction of LFG collection
and destruction system
� 216,000 Certified Emission Reductions (CERs)
generated from October 2006 to April 2008
� 20% above initial CER projections as of April 2008
Project team & pictures
Carbon credit monetization and
Sale of major interest in project
� February 2007: 325,000 CERs sold to
the government of Luxembourg,
(Forward sale, on 2006-2012 production)
� April 2008: Sale of major interest in project to AES,
international energy company
� Strong cash position for investment in future carbon
projects
� Full project cycle, from development to project sale
CER prices
April 2007 – April 2008
ALABAMA COAL MINE ALABAMA COAL MINE
METHANE CARBON PROJECT
Alabama coal mine methane project
Introduction – VAM emissions
� Underground coal mine ventilation air methane (VAM)
large volumes of low concentration methane (0.2 -1.2%)
� 300 million tCO2e/y globally � 300 million tCO2e/y globally
� China: 40% of VAM
US: 15%
Ukraine: 15%
US Mine
Ventilation Shaft
Alabama VAM demonstration project
Project overview
� 1st VAM project in America
� Proprietary technology: VAMOX®
� Demonstration of technology and � Demonstration of technology and
financial viability of carbon activity
� Location: Walter Energy Mine
Alabama, USA
� Investor: Biothermica 100%
� Carbon standard:
Climate Action Reserve
Project milestones
� April 2008: Authorization from US Mine Safety &
Health Administration (MSHA)
� January 2009: Project commissioning
� February 2010: Project listed with
Climate Action Reserve
� June 2010: Registration of 1st year
of carbon credits
Overview of system and shaft
at WE Mine No. 4
Alabama Project
Main Results
� Availability rate 92%
� Average VAM concentration 0.9% (High)
� Carbon credits (1st year) 25 931 CRTs1� Carbon credits (1st year) 25 931 CRTs1
� Total expected credits (09-13) 120 000 CRTs
� Average CRT price (09-10) $6/CRT
� Viability demonstrated for
high VAM concentrations
1 Climate Reserve Tons
Moving forward
Agreement with Walter Energy
� Oct. 2010: Biothermica & WE announce
agreement to develop VAM projects
� Project 1: � Project 1:
� High VAM concentration
� 2 full-scale VAMOX® units
� 330,000 tCO2e/year
� Planned start date: Q4 2011
� Carbon standard: CAR or WCI regulatory system
Thank you!
Raphaël BruneauDirector, Carbon marketsDirector, Carbon markets
+1-514-488-3881 # 226
www.biothermica.com
