13
METHANELECTRICAL Business Plan Competition 2012 a Digital Safari Greenbizz Company Mt. Diablo High School Concord, California 94520 Marily Abad | Dat Ngo Tyler Endo | Gabriela Arevalo

Methane Electric Business Plan

Embed Size (px)

Citation preview

Page 1: Methane Electric Business Plan

METHANELECTRICAL

Business Plan Competition 2012a Digital Safari Greenbizz CompanyMt. Diablo High SchoolConcord, California 94520

Marily Abad | Dat Ngo Tyler Endo | Gabriela Arevalo

Page 2: Methane Electric Business Plan

We are Methane Electrical, a determined company run by four intelligent and driven individu-

als who were inspired to find a solution to the growing problem of food waste. Methane Elec-

trical aims to reduce the food waste and allow companies to take a step toward ecological

self-sufficiency by producing some of their fuel and fertilizing needs using our product to con-

vert local wastes. Inspired by the structure and functions of a cow’s digestive system, Methane

Electrical has created a device, affectionately called “The Gut” that converts organic food

waste into methane. We have also incorporated an electrical generator to our product to

ensure that the methane created from the food waste can be used effectively to power up

a company’s building or equipment. Furthermore, just as cows excrete their feces, so will our

machine. A separate tank attached to The Gut contains the feces which can be used as fertil-

izer or can even be additionally sold depending on what the consumer decides to do with it.

We plan on making The Gut well known throughout a wide range of businesses by having

various methods of publicity. This will include, appearances on local and nationwide news

stations discussing the features and benefits of purchasing The Gut. We will also be participat-

ing in many trade shows to showcase our product and let as many business personnel know

about The Gut as possible. Methane Electrical also plans to provide demonstrations at our

main headquarters so anyone who is interested in buying The Gut for their business will be able

to come in and get all the information needed in order to purchase the amazingly convenient

Gut.

What makes Methane Electrical stand out compared to any other potential competitors is

that we provide top service and an amazing product that produces Methane which is the

cleanest burning fuel. When consumers buy our product over the ReCyclone or any other

device similar to ours, they can be rest assured that The Gut will do its job disposing their food

waste and providing them with electricity, while also helping the environment.

Within the first five years of our company, Methane Electrical plans to increase earnings and

production in order to get maximum profit. The prices of the three different Guts vary in cost

depending on size. The small Gut is priced at $10,000, the medium Gut is priced at $20,000,

while the large gut is priced at $50,000.

Methane Electrical is requesting funds for initial production and distribution starting at

$2,000,000. The profit that investors will make from our company will be tremendous, as seen

on the financial projections. Any person who invests in our company will surely be pleased with

the income they will receive within the fifth year of selling The Gut.

HistoryOn a chilly winter night Marily Abad, and her long time business partner Tyler Endo, were at Jack’s

Bar & Grill having a business meeting to discuss matters regarding their organizational work in Si-

erra Leone. As hours passed and the restaurant began to close, Marily and Tyler started walking

towards the parking lot to their cars. On the way they saw the kitchen workers at Jack’s hauling

about 10 bags full of leftover food to the nearest dumpster. This sparked curiosity in Marily’s mind

as she wondered where all of that leftover food goes. With this, Marily started a conversation with

one of the workers and asked him why they couldn’t give the food to a homeless shelter to make

good use of all that wasted food. In response, the worker said they couldn’t do anything with the

food but throw it away and have it be sent to a landfill.

Upon arriving home, Marily couldn’t shake the image of all that wasted food being thrown away,

so she decided to do some research about food waste in the United States. What she found out

was quite alarming. 40% of all food waste produced in America is not eaten which amounts to

more than 29 million tons of food, waste each year. She also found out that nationwide, food

scraps make 17% of what we send to landfills. Within the next day she called up her business

partner, Tyler, along with two good friends she had met within the Digital Safari Academy, Dat

Ngo and Gabriela Arevalo, and together they discussed how they could reduce food waste in

America.

With hours of brainstorming, research, and gallons of coffee, a light bulb finally flickered and the

four individuals came up with a device they affectionally called “The Gut”. This device would

turn organic food waste into methane by mimicking the digestive system of a cow. The methane

created from The Gut could then be used for electricity, thus, giving birth to a new company

called Methane Electrical.

Mission StatementTo reduce the amount of food waste nationwide while also making companies

ecologically self-sufficienct by providing them a way to create fuel and fertilizer

using a digester to convert local wastes.

Exec

utive Sum

ma

ry

Co

mp

any Pro

file

Page 3: Methane Electric Business Plan

Meet the Executives

Chief Executive Officer

Marketing Director

Marily Abad is the driving force behind Methane Electrical. With three

years of experience in the Digital Safari Academy (DSA), she has ob-

tained the necessary skills of communication, organization, and the

ability to diligently direct a group. In her first year in the DSA, Ms. Abad

took on her first leading role by managing a group of four, including her

current colleague, Tyler Endo, to create a country development plan

for Sierra Leone which aims to help infants and mothers. Ms. Abad was

also involved with a summer long internship program in which she had

to create web designs, logos, and brochures for specific clients. After

her experience with designing she became the creative director for

Digital Safari Designs where she lead a group of five people to create

web content and a promotional video for the Cerebral Palsy Center

in Oakland. Her three years of experience in the DSA, as well as the

many leadership positions she has had, and her exceptional ability

to delineate tasks, makes Ms. Abad outstandingly qualified for the

position as the CEO for Methane Electrical.

Dat Ngo has acquired skills in multimedia and creative process-

ing from being in the DSA for three years. In his first year in the

Academy, he took on different roles such as creating paper

advertisements and leading a group to develop a country

plan for Benin, Africa. In his second year, he became head

in marketing for the Northern California Family Center creat-

ing different kinds of marketing content for that company.

Mr. Ngo also interned at Contra Costa Televsion as well as

the Martinez Water Shed project, producing an advertise-

ment for Martinez Water Shed’s Car Wash Kit. He has taken

many roles of leadership, from being freshmen class presi-

dent to being Student Body President. In those years at

Mt. Diablo High School, he gained a significant amount

of knowledge on how to appeal to different audienc-

es. Over all, Mr. Ngo’s many skills make him perfect

to be the Marketing Director for Methane Electrical.

Gabriela Arevalo has had a significant amount of experience work-

ing with numbers and statistics. She is extremely talented in com-

ing up with innovative solutions to financial problems. Ms. Arevalo

is in charge of cash flow, company liabilities, financial obligations,

and the expense control of the company. She has taken classes

that have made her more proficient in the work that she does, such

as Statistics and Calculus. Ms. Arevalo joined the Digital Safari Acad-

emy in 2009 to be able to work diligently with her peers. She has worked

with numerous amounts of companies and organizations assisting

them with heir financial needs. A combinations of her critical think-

ing, determination, and out-going personality has made Ms. Arevalo

the top choice to be the Chief Financial officer for Methane Electrical.

Tyler has always believed in hands-on learning and how

objects physically worked. A member of the Digital Sa-

fari Academy, Tyler uses the skills he has gained to cre-

ate designs on three-dimensional computer programs

and then making those same designs come to life. In past

years her has helped the current CEO of Methane Electri-

cal, Marily Abad, in developing a country plan for Sierra

Leone that help s in giving medical attention to infants and

mothers as well as educating expectant mothers on how to

properly give birth and take care of themselves while preg-

nant. With his creativity, intelligence, hands-on ability, and his

compassion for people and the environment, Tyler makes for

an extremely well rounded Chief Technical Officer for Meth-

ane Electrical.

Chief Financial Officer

Chief Technical Officer

Page 4: Methane Electric Business Plan

2. Four Chambers

3. Collective Tank4. Electric Generator

No longer will companies, farmers, restaurants, and institutions have to helplessly

and mindlessly send their food scraps to non-environmentally friendly landfills. The Gut

provides companies a quick and amazingly convenient way of disposing their organic food

waste while also providing them with an electrical source and organic fertilizer.

Inspired by a cow's digestive system, The Gut contains 4 chambers filled with enzymes ready

to convert organic food waste into methane, which is the cleanest burning fuel source with its

byproducts being only water and carbon dioxide. Once the food waste is converted it is then

transported through the electrical generator which has the ability to attach to a building's elec-

trical socket, or piece of equipment. Thus, having the ability for a building or a peice of equip-

ment to be run on methane, all provided just from organic food waste.

Just as real cow's excrete waste, so will The Gut. This will be collected in our seprate, state of the

art, stainless steel tank. Companies who own The Gut will have the option of using it as fertilizer, or

selling it, depending on their preference.

Environmental benefits:- It will reduce food waste produced nation-

wide by 25%

- It will reduce the consumption of harmful

fossil fuels currently being used as an energy

source

- It will create organic fertilizer which is much

better than commercial fertilizer

1. Conveyor belt

Prod

uct Info

rma

tion

Consumer Benefits-Turns your trash into electricty

- Provide a rich, organic fertilizer from the

digested wastes

- Amazingly convenient

- Easy to use

Features:1. Conveyor belt to have food scraps

easily transported into the four chambers

2. Four chambers inside a stainless steel

tank that contain a mixture of water and

cow dung which has enzymes/bacteria

to break down food and create meth-

ane

3. A tank containing the “feces” and

indigestible items that can be used as

fertilizer

4. An electrical generator that will con-

vert the methane into electricity to

power buildings or equipment

Page 5: Methane Electric Business Plan

Ma

rketing

Ana

lysis

Opportunity Assessment

A staggering 40% of all food produced in America gets mindlessly

thrown away which accounts for 29 million tons of food waste

each year. Millions of tons of fruit and vegetables rot in fields and

orchards or are plowed over each year. Some of these edible crops

are left behind because they are misshapen or discolored. Major

retail grocery chains are more likely to throw away fruits, vegetables

and even entire hams and roasts than donate to distribution cen-

ters or use it for other useful alternatives Although federal and state

laws protect grocers from liability, many stores expressed concerns

that donated food could sicken recipients, even if it has yet to

reach its expiration date.

Institutions such as schools, hospitals, or prisons have colossal

amounts of food that are intended for students, pateints, and

inmates, however tons of the left over food get wasted with no

valuable place to go. Restaurants alone dump tens of thousands

of tons of edible food every year. A vast majority of the nations

restaurants and eateries don’t do anything useful with their food

and mindlessly haul it to landfills.

Food scraps make up 17% of what we send to landfills. When we contribute more

trash to landfills we are greatly contributing to the significant and growing problem of

Global Warming. The more trash, especially food waste, that sit and rot in a landfill,

the more massive amounts of harmful toxins get emitted into Earth's atmosphere. This

is why Methane Electrical has come up with an innovative solution on decreasing

food waste in the world, resulting in less trash being sent to landfills and cleaner air.

With The Gut, companies, farmers, restaurants, and institutions will be provided a

quick and convenient way to dispose of their food waste, while also receiving some-

thing back. Molded after a cow’s digestive system, the organic food waste will pass

through four chambers and with the help of enzymes and bacteria, get converted

into methane and transported into the electrical generator, providing an electrical

source to power a company’s building or equipment. Furthermore, just as real cow’s

excrete their waste, so will our machine. Farmers will be able to use it as organic

fertilizer, or other companies can sell it, depending on their preference. With The Gut,

companies can take a step toward ecological self-sufficiency by producing some of

their fuel and fertilizing needs using a digester to convert their very own trash.

Page 6: Methane Electric Business Plan

Competitive AnalysisMethane Electrical stands out compared to any other potential competitors. We provide

top service and an amazing product that produces Methane which is the cleanest burn-

ing fuel. When consumers buy our product over any other device similar to ours, they can

be rest assured that The Gut will do its job disposing their food waste and providing them

with electricity, while also helping the environment.

Sapphire Energy is a company that uses sunlight, carbon dioxide, and their main com-

ponent, algae, to produce gasoline, diesel and jet fuel. This poses a potential competitor

because they are similarly making an alternative fuel source like our company. They pro-

duce “green” gasoline from a synthetic crude oil made from algae. According to Sapphire

Energy, this “green crude” meets fuel quality standards and is compatible with existing en-

ergy fuels. Although this may seem promising, oil extraction from algae is a much debated

topic because it is currently connected with significant costs. Environmental effects extract-

ing oil from algae is also a controversial topic because some environmentalist think that the

solvents used to extract oil can be very harmful to humans.

Sapphire Energy Power Master Methane ElectricalClean Alternative Fuel

Meets Air Quality Standards

Conducts Electricity

Produces Organic Fertilzer

Another potential competitor is a device called the Recyclone Powermaster created by

Inergy Plus Technologies. The ReCyclone is a universal recycling system, recycling the world's

wastes. The recyclone grinds up waste to be recycled or burned for electricty. It turns agri-

cultural waste into compost and organic fertilizer. It grinds the waste using a 200 to 400 elec-

tric motor. The recylclone's moving arm can spin as fast as 650 miles per hour. The recyclone

can extract the gold from circuit boards. Circuit boards can contain between 80 to 1500

grams of gold, which is up to 800 times the concentration of gold found in gold ore.

Methane Electrical will have limited negative effects to the environment and to humans.

All our machine, “the gut”, needs is grass to produce methane that can be used as an

energy source. We won’t need to upset plant diversity or contribute to more deforesta-

tion. We will be getting our grass from open fields which will not interfere with any other

species. Using methane as an energy source will also not harm the environment as much

as other alternative fuels. Methane is the cleanest burning fuel with the only byproducts

being water and carbon dioxide. In comparison to Sapphire Energy, Methane Electri-

cal will not need to pay extensive amounts of money to produce our biofuel. Using our

methane for an alternative fuel is clearly the greenest and most effective way.

Page 7: Methane Electric Business Plan

Customer ProfileMethane Electrical’s “The Gut” mainly targets

to companies or institutions who generate food

waste, or food manufacturing and processing

facilities, schools, supermarkets, hospitals, pris-

ons, restaurants, and food courts. Food service

providers (e.g., supermarkets, institutions, restau-

rants) commonly produce large quantities of

food waste each day. These food service provid-

ers are considered, large-scale food waste gen-

erators, which the EPA encourages to find a way

to use the waste in a productive manner. The US

alone, produces 34 tons of food waste, in which

are separated between the three groups.

Beyond, capitalization and processing factories,

Methane Electrical’s minor targets are farm lands.

Farm lands use fertilizers containing phosphorous

and nitrogen oxide, which with rain fall it leads to the

ocean creating algae on the surface of the ocean,

thus blocking the sun light resulting in killing everything

below, i.e. coral, fish, sea plants, etc. Farmers can feed

our product the grass they have, and producing their

own, clean fertilizer and leading to less algae forming

on ocean surfaces, also using the Methane to power

their farm. Alongside with clean fertilizer, farmers will

have a better environment within their farm. Their grass

and stock will be cleaner, due to the fertilizer. And the

farmers will not waste money on fertilizer, because they

will have their own, and will have more to have better

equipment for themselves.Data shows how much food waste each group

produces; Food Processing factories are the big-

gest contributors by producing, 15 tons of waste.

As for Institutions, i.e. Schools, Hospitals, and Pris-

ons, produce 10 tons, and Restaurants produce

9 tons.

0

3.75

7.50

11.25

15.00

Food ProcessingInstitutions

Restaurants

Food Waste before “The Gut,”

Food Waste after “The Gut.”

Methane Electrical’s primary target is Food Pro-

cessing factories, due to they are the biggest

contributors, and Institutions and Restaurants,

are our secondary consumers of “The Gut.” Our

customers will also benefit from “The Gut” be-

cause, it will reduce the amount of food waste

they produce, and when it is converted to Meth-

ane, the gas can be used to power their busi-

ness/institutions. With the US producing 34 tons

of food waste, Food Processing factories with 5.1

tons of food waste, Institutions producing 3.3 tons

of waste, and Restaurants with 1.9 tons.

Algae on the Ocean’s SurfaceAlgae after “The Gut”

0%

5.0%

10.0%

15.0%

20.0%

Algae on the Oceanʼs Surface

Page 8: Methane Electric Business Plan

Ma

rketing

Plan

Product:Methane Electrical will manufacture a mechanical version of the cow's digestive system,

that will reduce the amount of food or organic waste in the US. Made from stainless steel,

the gut will have four chambers containing the enzymes in a cow's digestive system. And

the waste can be fed into one end of the gut and undergo the same process as cows

do when they consume food. This will result in methane that is able to conduct electricity

through an attachable generator, and organic fertilizer which can be used to the consum-

ers advantage, either selling it or using it for themselves. Our product can last a lifetime,

however the steel is expected to rust and subside, and Methane Electrical will replace the

steel product and restore the whole device if needed.

Price:Pricing of the Gut will vary depending which size you select, small ($10000), medium

($20000) or large (&50000). However there will be available discounts if consumer will

come into headquarters, watch the demonstration of the device and but immediately up

front. The discount will go up to 20% price will vary depending on size.

Placement:Initially, the gut will be located at headquarters, however when purchased the gut will ne

shipped in order to spread the device throughout the nation. Trained sellers/technicians will

then be available on call for any technical difficulties or general question. Methane Electri-

cal will not be distrubing The Gut to retail stores, and we will be our own distributors.

Promotion: A majority of our marketing funds will go into the creation of our promotion team.We will

be hiring a group of highly skilled and sociable people who’s main job will be to make

Methane Electrical known. This will include appearances on the news where we discuss the

various features and benefits of The Gut. In addition, demonstrations for the product will

be displayed at trade shows where an area will be dedicated to the Gut and everyone

can see the features. We will also have our promotion team gather people from various

companies and bring them to our headquarters to view The Gut and get more information

about it.

Page 9: Methane Electric Business Plan

Financ

ial Pla

n

Price and Sales Model:Methane Electrical will have three sizes of The Gut that vary in cost. The smallest Gut will

be priced at $10,000, our medium Gut will be priced for $20,000, and the large Gut will be

50,000. Methane Electrical is its own distributor, therefore not needing a retail price and

being sold at wholesale price.We determined the prices for these buy estimating how

much it would cost to make the product itself, while also marking up the price in order to

reach maximum profit. We plan to sell The Gut to companies, restaurants, and institutions

such as schools, prisons, and hospitals, that produce vast amounts of food waste. We plan

to sell our product by showing our potential consumers the benefits and abilities of The

Gut through the news, trade shows, and even inviting potential consumers to our main

headquarters to view a live demonstration. We will be attracting these people through our

promotional team. The small and medium Gut will be targted more towards smaller com-

panies and restaurants, while the large Gut is focused on big food processing companies.

Sales and Revenue:Within the first five years of our company we plan to increase earnings and production to

get maximum profit. With the first year only focusing on introducing The Gut to potential

companies, we predict that in the second year we will already be selling 800 of the small

Gut, 300 of the medium Gut, and at least 1 for the large gut. Our total revenue for our sec-

ond year will be around $11 million. On our fifth year mark we plan on selling 6,100 of the

small Gut, 1,700 of the medium Gut, and 35 of the large Gut. Our total revenue for the fifth

year will then be around a whopping, $96,750,00. This expresses a remarkable growth from

year one alone to year five, as seen on the fincial chart. We’ve decided to focus much of

our sales on the small and medium Gut because smaller businesses such as restaurants and

institutions like hospitals and prisons are more prevalent and would be likely to buy these

more convenient sizes of the Gut. In result, our company has chosen to rise up the price of

the largest Gut since we will only be selling very few to big companies per year.

Cost of Good:For the purpose of this project it is assumed that the cost of goods for our company’s product

comprises 40% of our revenue and is composed of the following individual items: stainless steel

imported from China, rubber for the conveyor belts, as well as rubber latex to make the four

chambers in The Gut. Stainless steel will cost about 33 cents per pound. Our rubber will be recy-

cled from tires which charges 17 cents per pound while latex will cost around $2.50 per pound.

Advertising and Marketing Expenses:For the purpose of this project it is assumed that 20% of our operations budget will go towards

sales and marketing, which is equivalent to $1 million dollars within the first year. We plan to target

our potential customers through appearances on the news, where we will discuss the benefits and

advantages of our product will have. Business will see us on the news also even even watch dem-

onstrations in person at trade shows, where we will have an area dedicated to The Gut. In addition,

businesses can even come to our headquarters and see the demonstration and decide if they are

interested to purchase our product.

Net Revenue Growth

YearsRevenue Growth from year 1 to year 5.

Net Profit

YearsProfits display from year 1 to year 5.

Page 10: Methane Electric Business Plan

]

Financial Model

Year 1 Year 2 Year 3 Year 4 Year 5Sales Product/Revenue Source

1 The Gut:small

Projected Units Sold 0 600 1,100 2,500 6,100 Sales Growth 83% 127% 144%

2 The Gut:Medium

Projected Units Sold 0 250 500 850 1,700 Sales Growth 100% 70% 100%

3 the Gut:Large

Projected Units Sold 0 1 3 10 35 Sales Growth 200% 233% 250%

Income

Gross Revenues1 The Gut:small $- $6,000,000 $11,000,000 $25,000,000 $61,000,000 2 The Gut:Medium $- $5,000,000 $10,000,000 $17,000,000 $34,000,000 3 the Gut:Large $- $50,000 $150,000 $500,000 $1,750,000

Total Gross Revenue $- $11,050,000 $21,150,000 $42,500,000 $96,750,000

Cost of Goods1 The Gut:small $- $2,400,000 $4,400,000 $10,000,000 $24,400,000 2 The Gut:Medium $- $2,000,000 $4,000,000 $6,800,000 $13,600,000 3 the Gut:Large $- $20,000 $60,000 $200,000 $700,000

` $- $4,420,000 $8,460,000 $17,000,000 $38,700,000

Gross Profit $- $6,630,000 $12,690,000 $25,500,000 $58,050,000 Gross Margin 0% 60.0% 60.0% 60.0% 60.0%

Financing Founders $750,000 Friends & Family $250,000

Series A Round $6,500,000 Series B Round $2,000,000

Net Income $7,500,000 $8,630,000 $12,690,000 $25,500,000 $58,050,000

ExpensesProduct Development $5,200,000 Marketing $500,000 $4,000,000 $4,000,000 $6,000,000 $8,000,000 Company Formation $250,000 Operations (Fixed Cost) $1,000,000 $4,440,000 $8,548,800 $17,170,976 $39,043,420

Total Expenses $6,950,000 $8,440,000 $12,548,800 $23,170,976 $47,043,420

ProfitNet Profit (EBITDA) $(6,950,000) $(1,810,000) $141,200 $2,329,024 $11,006,580 Net Operating Margin -16.4% 0.7% 5.5% 11.4%

Cash FlowBeginning Balance 0 $550,000 $740,000 $881,200 $3,210,224

Ending Balance $550,000 $740,000 $881,200 $3,210,224 $14,216,804

1 2 3 4 5

$(8,000,000)

$(6,000,000)

$(4,000,000)

$(2,000,000)

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

Row 50

Financial Projection ModelPe

rce

nta

ge

of S

hare

s

The pie chart displays the percentage each Investor and Founder receives.

Sources and Uses of Funds:Our operating money will come from our sales income and the investment made by our

series A investor. In addition, about a million dollars has come from each of the four found-

ers. Our Series A investor has granted us $6.5 million dollars. This represents 45% ownership

of Methane Electrical. We plan on spending this money on advertising The Gut, renting a

building for our headquarters, hiring laborers, and paying for the overall production of the

Gut. In order to continue with our company, we are seeking for our Series B funding to start

at $2,000,000. This represents 30% ownership of Methane Electrical. As seen on the financial

projections, the profit for our investors will be tremendous.

Company Valuation:By the end of our fifth year Methane Electrical will be worth about $41 million. If our projec-

tions hold true, an investment of $6.5 million in Series A would get investors $18.5 million,

which three times the amount they originally paid for. Furthermore, Series B investors would

get a remarkable $12 million return, with an investment of $2 million. This is six times the

amount that was invested. Again, if our projections hold, each founder will gain a profit of

$2 million at the end of year five. With an investment of a million dollars, the four founders

will see a $6 million return, still representing a 15% ownership of Methane Electrical. With

such good financial outcomes, Methane Electrical truly believes that there is no better

company to invest in.

Page 11: Methane Electric Business Plan

Life C

ycle

Ana

lysis

As with any product that's made there is both negative and positive effects on the

environment. Although the production of The Gut inevitably comes with costs to the

environment, Methane Electrical believes that the benefits from using our product

will out weigh any negative effects that may come with the production of The Gut.

Acquiring:Methane Electrical will be obtaining stainless steel from China since stainless still

from there is much cheaper. We will be transporting this by shipping boats which will

contribute to pollution because of the drastic amount of sulfur dioxide that will get

emitted into Earth's atmosphere by the boat itself. We will also need rubber latex

to create the four chambers and passage tubes inside of The Gut. This will require

harvesting the latex from trees, which may devastate habitats for different organ-

isms. Methane Electrical will be purchasing the electrical generator as a whole

entity, which will also need to be shipped to our manufacturing head quarters. Our

four chambers will contain enzymes and bacteria needed to break down the food

waste which will come from a mixture of water and actual cow dung.

Manufacturing:The Gut will be manufactured right here in the United States making it more con-

venient and effective to distribute amongst the different states. This will reduce

transportation costs since we are not manufacturing The Gut overseas or in another

country. Creating The Gut in the U.S. will also provide new jobs for many unem-

ployed Americans. With the currently high rate of unemployment in America right

now, Methane Electrical hopes to acquire many eager individuals to be apart of

the production of The Gut.

Transporting:The transportation of our product will include trucks that will bring The Gut to the lo-

cation of the customer. This will pose an environmental problem because the large

trucks we will be using will emit diesel soot, carbon monoxide, nitrogen dioxide, and

sulfur dioxide which are toxins that are very harmful to Earth's atmosphere. Large

trucks emit as much pollution as 150 cars. However, Methane Electrical plans to

convert these trucks into using methane instead of diesel or gasoline because meth-

ane's only byproducts consist of water and carbon dioxide when burned or used as

fuel, which is much less detrimental to the environment.

Using:The use of the Gut will not cause pollution to the environment because all possible

pollutants from the the Gut will be contained, unless there is a malfunction with our

state-of-the-art, stainless steel tanks, and methane leaks out. This would contribute

highly to Global Warming since methane is toxic when not burned for fuel usage.

The Gut could also possibly create unpleasant odors from the feces that will be

produced, again, only if our stainless steel tanks malfunction and leakage occurs.

However, Methane Electrical is confident that our highly protective stainless steel

tanks will not malfunction and release pollutants or bad odors. With the usage of

The Gut, companies will be able to take a step toward ecological self-sufficiency by

producing some of their fuel and fertilizing needs using The Gut to convert their own

wastes. The use of our product creates the perfect win-win situation.

Disposing:The enzymes and microbes in The Gut will last a lifetime and will never need to be

touched or replaced. If the stainless steel tank happens to deteriorate or malfunc-

tion, our highly skilled technicians will come to the customers location and fix it. The

Gut is 100% recyclable since it is only made of stainless steel and rubber which are

both 100% recyclable.

Page 12: Methane Electric Business Plan
Page 13: Methane Electric Business Plan