Corporate Presentation - OTCMKTS: BIOF A revolutionary process that converts cellulosic feedstocks into sugar and lignin for use in biofuels and ...
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1 Corporate Presentation A revolutionary process that converts cellulosic feedstocks into sugar and lignin for use in biofuels and bioplastics production OTCMKTS: BIOF
Forward Looking Statements This document contains forward-looking statements. Statements other than statements of historical fact contained in this document may be forward-looking statements, including, without limitation, management’s expectations, intentions and beliefs concerning the results of operations, performance, business prospects, and opportunities of Blue Biofuels, Inc., the general economy, the future financial position or results of Blue Biofuels, Inc., business strategy, growth opportunities, and plans and objectives of Blue Biofuels, Inc.. Prospective investors can identify many of these statements by looking for words such as “believe”, “expects”, “will”, “intends”, “projects”, “anticipates”, “estimates”, “continues” or similar words or the negative thereof. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. Forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance. Accordingly, prospective investors are cautioned not to place undue reliance on any forward-looking information contained in this document. Statements containing forward-looking information reflect management’s current beliefs and assumptions based on information in its possession as of the date of this document. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Statements containing forward-looking information involve significant known and unknown facts and uncertainties of both a general and specific nature, as well as numerous assumptions, including without limitation, assumptions relating to customer demand, expected growth, the successful completion of equity financings, the size of future equity financings, competitive advantages of Blue Biofuels, Inc., products and services, costs of material and services, access to capital, access to qualified personnel, production capacity, and required capital expenditures. Some of the factors that could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include: reliance on key personnel, general economic conditions, Blue Biofuels, Inc. limited operating history, industry conditions and trends, volatility of commodity prices, the lack of availability and cost of raw materials, uncertainty of future contractual terms, failure to secure patents or to maintain exclusive licenses, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, and ability to access sufficient capital from internal and external sources. The information contained in this document may identify additional factors that could affect the operating results and performance of Blue Biofuels, Inc. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and Blue Biofuels, Inc., disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. This document may contain future-oriented financial information and financial outlook information (collectively, "FOFI") about prospective results of operations, revenue, earnings before interest, taxes, depreciation and amortization (EBITDA), financial position, and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was made as of the date of this document and was provided for the purpose of giving a general overview of the business operations of Blue Biofuels, Inc. Blue Biofuels, Inc. disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. © 2021 Blue Biofuels, All rights reserved. 0913
Mission
To produce renewable fuels, biooriginated and biodegradable plastics, and other specialty
products from plant-based materials in an environmentally friendly and CO2 neutral
process.
Patented revolutionary Cellulose to Sugar (CTS) process
breaks down plant-based materials into sugar and lignin,
then subsequently into biofuels and biodegradable
bioplastics.
We can convert a wide variety of plant-based material
including forestry waste, agricultural byproducts and
waste, yard waste, the cellulosic portion of municipal solid
waste, hemp, and energy crops like elephant grass, etc.
Biofuels:
Cellulosic Ethanol, Cellulosic Jet Fuel, Cellulosic Gasoline,
Cellulosic Diesel
Bioplastics:
Biodegradable single use cups, utensils, straws, and more.
Biochemicals:
Ion exchange material, nanocellulose, etc.
© 2021 Blue Biofuels, All rights reserved.
0913
Intellectual Property Protection
CTS 2.0
The original issued patent is surrounded with a family of pending patents
in order to extend and expand the protection of our process, both domestically and abroad.
The company is in full ownership of its core technology.
One pending patent covers the
Three pending patents production of lignin from the
CTS process
Primary Patent: Covers our cover improvements in
our proprietary
proprietary system and One pending patent covers the
systems, upgrades to production of nanocellulose from
the CTS process.
method to convert cellulosic our technology, as well
materials into sugar. as new processes, and
equipment.
© 2021 Blue Biofuels, All rights reserved.
0913
Every Byproduct of The CTS 2.0 Technology is a Revenue Stream
Creating a Growing Global Market Size of ~$700B
Market Size
$350 million annually Market Size
$66 billion annually
Feedstock
& growing over 20% per year;
& growing 8% per year
high margin products
Ion
Exchange Sugars to
Specialty Biofuels
Chem.
Market Size
CTS 2.0
Market Size
$600 billion annually
& growing over Bioplastics LIGNIN CELLULOSE Nano
Cellulose
$350 million annually
3% per year & growing 20% per year
Sugar
Energy Specialty
Burn Chem.
Market Size Market Size
Virtually unlimited $600 million annually
& growing over 6% per year
© 2021 Blue Biofuels, All rights reserved.
0913
Cellulosic Biofuels
Ethanol mixed into gasoline
and converted to other fuels
Gasoline
C Blue Biofuels’
CTS 2.0 converts
E a wide variety of
L plant-based
cellulose into
Jet Fuel
L sugar quickly and
U economically.
L The sugar is
O converted to Diesel
ethanol, which
S can be converted
E into other fuels
as needed.
Sugar converts
directly to
Biogas.
Biogas
© 2021 Blue Biofuels, All rights reserved.
0913
Biodegradable Bioplastics
Bio-Plastics made from Lignin
Blue Biofuels' CTS 2.0
breaks down a wide
F variety of plant-based
E materials into its
components of sugars
E and lignin quickly and
D economically.
S The lignin may be used
T Lignin directly in ion
exchange membranes
O
or converted into
C bioplastics, which can
be made into a variety
K
of plastic products.
© 2021 Blue Biofuels, All rights reserved.
0913
Biofuels Market Size Ethanol
15 billion gallons of ethanol produced each year in the US alone.
10 % of gasoline volume is mandated to be ethanol.
If cellulosic ethanol becomes available on large scale this is likely to grow. Presently
2020 USD 141.56 billion exports are down due to trade restrictions with China. This gave some extra temporary
price pressure on the ethanol price.
2027 USD 245.48 billion (projected)
Current price per gallon $2.22
CAGR of 7.81% during 2021-2027 US Market $33 billion / Global market is double
Market Value Jet Fuel 18.3 billion gallons of jet fuel consumed in 2019 in the US.
2 Current price per gallon: $1.80
0 US Market $33 billion annually and $300 billion globally
2
1
Natural
2
Gas 30.5 trillion cubic feet of natural gas consumed in the US in 2020.
0
2 Current price/thousand cubic feet: $3.85
7
$117 billion market in the US / Global market is 4X
2021 projected growth 11.4%
0
© 2021 Blue Biofuels, All rights reserved.
2 4 6
0913
Plastic Market Size
Target Plastic products market size: 580+ billion annually
Market
Global plastic market is $600 billion annually
18.2 trillion pounds of plastic have been Target Market:
produced since 1950. Plastic Straws: 182.5 billion straws per year.
Plastic Utensils: 40 billion per year.
Plastic Cups: 500 billion used each year.
Coffee Cups: 16 billion disposable coffee cups used each year.
Phase
765 billion pounds of plastic produced annually
2
Disposable Plastic Packaging: billions of pounds per year.
© 2021 Blue Biofuels, All rights reserved.
0913
Cellulosic Biofuel Production
Historical Challenges of Competing
Cellulosic Sugar Generation
Most other technologies The combination of Their processes also These hydrolysis This result is a capex of
employ corrosive reactive chemicals, high require high levels of processes are slow- 4-6X and production
chemicals to hydrolyze temperatures, and expensive enzymes to reacting, requiring many cost of up to 2X that of
the hemi-cellulose reaction time create hydrolyze the key hours to achieve target a corn-based sugar
component requiring compounds that make cellulosic component yields (typically 48-72 process.
expensive metallurgy fermentation more into monomer sugars hours).
and leave a corrosive complicated. like glucose and
waste product. xylose.
© 2021 Blue Biofuels, All rights reserved.
0913Key Features
Blue Biofuels CTS Patented Process
is a Technology Breakthrough!
No enzymes No waste
Efficiently and effectively converts plant-based materials
into its components of sugar and lignin. required produced
(major cost advantage) (catalyst and water
It is extensively proven in prototype CTS 2.0 reactors to be are recycled)
significantly more energy-efficient than the CTS 1.0 reactor.
Elegantly simple reaction in a continuous flow reactor.
Minutes of total biomass reaction time for simultaneous
conversion of cellulose to fermentable sugars. (As a
comparison, enzymatic solutions can take several days for Almost zero Proven on a
the conversion.)
carbon wide range
Reactor parameters are being optimized for footprint of biomass
commercialization.
materials.
© 2021 Blue Biofuels, All rights reserved.
0913Cellulosic Biofuel Production
The CTS Process Revolutionizes Biomass Hydrolysis!
Hydrolysis Method → Alkaline + Enzyme Acid + Enzyme Bio-Solvent + Enzyme CTS 2.0
Full Conversion Time Days Days Days Minutes
Enzyme Cost High High High None
Chemical Cost Very high High Very high Very low
Thermal Cost High High Moderate Low
Capex Very high High High Moderate
Conversion % of Cellulose 85% 90% 90% 90+%
Competing Several primary, costly, inefficient, Cellulose is “recalcitrant,” termed by scientists,
Technologies: and wasteful methods of breaking because of how difficult it is to break down in
© 2021 Blue Biofuels, All rights reserved.
0913
down cellulose exist today. an economic manner, until now.Biomass Strategy
Blue Biofuels’ CTS 2.0 can convert This available cellulosic feedstock
cellulose into sugar and lignin with a would be enough to replace 45% of
rapid mechanical process with no waste. the US gasoline supply with a carbon
90+% conversion at low cost. neutral, green, lower cost, zero sulfur
alternative.
Leverage the abundant quantities of Feedstock outside of the US, both
waste lignocellulosic plant material waste and possible crops, is
from agricultural harvests, forestry, extensive and offers significant
municipal waste, landscape gardening additional growth opportunities
activities, municipal solid waste, and outside the US.
specially grown energy crop grown on
underutilized land such as abandoned
orange groves in Florida.
© 2021 Blue Biofuels, All rights reserved.
0913Biomass Feedstock I
Forestry Waste Agriculture Waste
Forestry waste is ~33% of total Agriculture waste is greater than
forestry biomass. agriculture products in quantity.
Often left after logging of trunks. Wheat straw and other waste
available in quantity, depending on
location.
Consistent supply in quantity
available in the Unites States, Steady supply of agricultural waste is
Canada and elsewhere. realistic.
© 2021 Blue Biofuels, All rights reserved.
0913Biomass Feedstock II
Blue Biofuels could produce 10 billion gallons of ethanol
from municipal solid waste (MSW) alone.
Municipal Solid Waste
MSW to Sugar 6.2%
3.3%
Other 4.5%
Glass
Wood
250+ million tons of municipal solid waste is produced
annually in the USA. 14.6%
Food
47% of the 250 million tons is paper, wood, and yard 27%
trimming Paper
116 million tons each year is cellulosic waste, with a
conversion ratio of one ton of feedstock into ~90 9%
gallons of ethanol, 10 billion gallons of ethanol could be Rubber, Leather, Textiles
produced from municipal waste alone.
Hundreds of separating facilities would be highly
interested in using our technology through a license or 13.5% 9.1%
joint venture to convert their cellulosic waste fraction Yard Trimmings Metals
into ethanol.
12.8%
Plastics
© 2021 Blue Biofuels, All rights reserved.
0913Biomass Feedstock III
Elephant Grass to Sugar
Cultivate giant elephant grass in Florida under Crops can also be grown in other parts
contract with farmers and ranchers of the country or world
Any rapidly growing tree, bush, or grass
Excellent yield/Acre: Up to 3000 gallons ethanol per acre can be utilized.
potential, versus 600 gallons per acre for corn.
Elephant grass already successfully grown in Florida.
Available for commercial harvest in first year after planting.
Year around crop on staggered planting and harvest cycle.
Non-invasive grass.
Robust against disease and climate conditions (except
several consecutive days of below freezing temperatures).
7-10 years between replanting. Hemp or hemp
waste Bamboo
© 2021 Blue Biofuels, All rights reserved.
0913There is tremendous controversy over using corn
as a fuel source instead of a food source.
CTS 2.0 Feedstock Summary
The CTS 2.0 technology uses waste products that are available in abundance, and specially grown energy crops like elephant
grass, switch grass, or hemp. Elephant grass could be grown on underutilized land such as abandoned orange groves in Florida.
Our environment-friendly, CO2-neutral, and zero sulfur process ensures that our products and by-products deliver a new level of
green innovation by providing less expensive and more effective renewable solutions.
Biomass Feedstock ≈Price/ton
The net social and economic Minimal differences in the amount of sugar $160 CTS 2.0 Feedstock costs 80% less than corn.
worth of food corn that can be obtained from grass v corn $143
$140
production in the U.S. is
Feedstock % Conversion into Sugar $120
$1,492 per hectare, versus a
$10 per hectare loss for $100 $95
biofuel corn production. $80 $75
$65
72%
$60
Research shows that the $40 $30 $30
66% $25 $25
environmental costs are
$20
much greater, and the
$0
benefits fewer, using corn
for biofuel instead of food.1 10 30 50 70
Corn Grass
© 2021 Blue Biofuels, All rights reserved.
0913
1. https://news.illinois.edu/view/6367/520569Renewable Fuel Standard EPA Mandates:
July 2021 average prices and 2020 mandates*
D-3: Cellulosic Biofuel: 590 million gallons for 2020.
The EPA adjusts the renewable fuel mandate each year. The US EPA RIN: $3.13/gal.
renewable fuel standard (RFS) mandates the blending of renewable fuel D-4: Biomass-Based Diesel: 2.43 billion gallons for 2020.
RIN: $1.66/gal.
into fossil fuels sold, or companies pay a fine. Cellulosic ethanol is the
D-5: Advanced Biofuel: 2.070 billion gallons for 2020.
smallest category (D3) and mandated volume for 2020 is: 590 MM gal. RIN: $1.65/gal.
With an original goal of 15 billion+ gal/year in 2022, the D3 mandate will D-6: “Conventional” Biofuel (Corn Ethanol): 15 billion gal for 2020.
RIN: $1.50/ gallon.
grow with the ability to supply cellulosic ethanol.
Total renewable fuel :
(20.090 billion gallons for 2019)
Every fuel category is defined by a
renewable identification number. (RIN).
* Sources:
Every RIN gives a different credit per
https://www.epa.gov/fuels-registration-reporting-and-compliance-help/rin-trades-and-
gallon specific for that fuel type. price-information; https://www.ecoengineers.us/
© 2021 Blue Biofuels, All rights reserved.
0913Cellulosic Ethanol v Corn Ethanol
Regular fermentation and Blue Biofuels will produce cellulosic ethanol through
distillation converts sugar into
ethanol just like in the widely used our Patented CTS 2.0 process.
process to make wine and beer.
Cellulosic ethanol gets the D3 RIN credit, currently worth
$3.13/gallon, in addition to the market price, resulting in
Presently, most ethanol is made potential total revenue of around $5.35/gallon.
from corn. ~40% of the US corn
harvest is used for ethanol
production.
Ethanol from corn or sugar cane,
has a market price of ~$2.22 per
gallon, including a D6 RIN credit of
$1.50/gallon.
© 2021 Blue Biofuels, All rights reserved.
0913Historic Corn and Ethanol Prices
Ethanol prices are directly linked to the price of corn, causing volatility in the market.
CTS 2.0 can deliver stable and lower costs by leveraging the abundance of available cellulose.
8 3
CORN ($/BUSHEL)1 Ethanol ($/gallon)2
7
2.5
6
2
5
4 1.5
3
1
2
0.5
1
0 0
1Average closing price taken from https://www.macrotrends.net/2532/corn-prices-historical-chart-data
2End of year prices from https://tradingeconomics.com/commodity/ethanol
© 2021 Blue Biofuels, All rights reserved.
0913Ethanol Industry
Current Status
10% gasoline blend mandate is solidly in place in the US
and beginning in China. Current ethanol price is ~$2.22
• Needed as anti-knocking agent.
Corn ethanol industry is breaking even at that price
• Lower carbon footprint than gasoline.
(based on present corn prices).
Year-round E15 gasoline approved for sale by US
government in 2019.
Cellulosic biofuel mandate of 590 million gallons for Consolidation and closure of small and medium size plants and
2020, up from 418 MM in 2019. destination plants is inevitable and has started to happen.
• Likely to increase in future years once someone can meet
the mandated volume economically. This will create opportunities for Blue Biofuels to acquire closing
plants at low cost and convert them into highly profitable
Carbon footprint of cellulosic < footprint of corn.
cellulosic ethanol plants.
© 2021 Blue Biofuels, All rights reserved.
08VProject Financing Opportunities
Building our own CTS 2.0 Buying corn ethanol Joint Venture to Selling licenses
facilities in the United facilities in financial bolt-on CTS 2.0 to outside the US to
States to convert Elephant distress due to corn existing corn MSW facilities to
Grass, farm waste, forestry ethanol market ethanol facilities produce sugar and
waste, or MSW into sugar conditions and and/or MSW ethanol or license to
and lignin, and further convert them to facilities. existing corn ethanol
converting them into cellulosic fuel and facility owners to
biofuels and bioplastic facilities. convert to cellulosic
biodegradable bioplastics fuels.
and other saleable
products.
© 2021 Blue Biofuels, All rights reserved.
0913Biofuels Growth Strategy
2,300 ethanol producers worldwide; over 200 in the US.
Blue Biofuels’ • Almost all use corn starch or sugarcane to make ethanol
• All would benefit from a lower cost method of obtaining feedstock sugar.
CTS 2.0 technology • The market for this technology is accelerating in both value and volume.
is positioned to be Opportunity to produce sugar
Sell cellulosic sugars to third party ethanol plants to produce cellulosic ethanol.
the lowest cost
Opportunity to buy ethanol plants in distress
producer of Convert them to produce cellulosic ethanol and other cellulosic biofuels.
ethanol. Opportunity to license the CTS 2.0 technology outside the US
Earn licensing fees and royalties.
Bio-Jet Fuel:
Ethanol-to-jet fuel is a high margin emerging opportunity
without the 10% blend ceiling.
Blue Biofuels has licensed the Vertimass process for the purpose of converting ethanol into jet fuel.
© 2021 Blue Biofuels, All rights reserved.
0913Biodegradable Bioplastics
Only a moderate amount of capital is
Bioplastic market size could grow into the hundreds of
needed to recover our lignin.
billions of dollars per year. Our sulfur- free lignin is an
excellent ingredient to make bioplastics from.
Blue Biofuels’
lignin is
sulfur-free.
© 2021 Blue Biofuels, All rights reserved.
0913Blue Biofuels’ Sugar
Additional opportunities include other biochemical/biopharma
operations such as Xylitol production.
In addition to being a preventive agent for dental
caries, Xylitol also:
• efficiently stimulates the immune system, digestion,
lipid and bone metabolism.
• helps in glycemic and obesity control; reduces ear and
respiratory infections.
• treats diseases that cannot be cured through antibiotics
or by surgery.
Xylitol is a particularly high value opportunity which
could generate $50M revenue with a xylitol split stream
from one of our plants.
© 2021 Blue Biofuels, All rights reserved.
0913
Source: https://pubmed.ncbi.nlm.nih.gov/32638045/CTS 2.0 Current Status
Patented Technology Lignin
Developed CTS 2.0 in 2018 that is a Lignin purification and sales are
patented energy-efficient continuous- expected in 2022. Lignin conversion
flow process with additional patents to bio-degradable bioplastics in
pending. process; expected to be commercially
CTS 2.0 ready by early 2023.
C TS 2 . 0 ex p ec ted to b e
co m m erc i a l l y rea d y
b efo re t h e en d o f 2 0 2 2 . Cellulosic Ethanol Facility
Semi-Commercial Scale
4th generation prototype processes Plans to build a CTS plant or acquire
30x the capacity as the 3rd generation. and retrofit a corn ethanol plant into a
Scaling up for higher volumes and 5th cellulosic ethanol facility, earning D3
generation semi-commercial scale RINs, while also making biodegradable
expected by early 2022. bioplastics from the lignin, and being
highly profitable.
© 2021 Blue Biofuels, All rights reserved.
0913Board of Directors
Ben Slager
Chairman
Serial entrepreneur with 30 years of professional experience in starting,
developing, and selling technically innovative companies that he sold to
large multinational companies. He holds 17 patents, including the
improved CTS process that is being commercialized by Blue Biofuels.
Anthony Santelli, Ph.D Peter Zimeri Ned Burke
Founder of AES Financial Advisors Owned 5 power plants, and a Financial services expert. As prior
& portfolio manager of two VC textile plant. Specializing in CEO of ALPS Holdings, he grew
funds. Expert in micro-cap running large industrial projects. revenues 20-fold. Serves on the
company leadership and George Bolton Extensive contacts in aviation. Charles Sills boards of 4 investment company
turnarounds. Government Relations complexes.
Seasoned executive with deep Leading expert in renewable
experience in the development energy. Led development of the
and integration of new worlds largest solar power
technologies for agriculture. generating facility. Former Naval
© 2021 Blue Biofuels, All rights reserved.
0913
Intelligence Officer.Executive Team
Ben Slager
CEO
Serial entrepreneur with 30 years of professional experience in starting,
developing, and selling technically innovative companies that he sold to
large multinational companies. He holds 17 patents, including the
improved CTS process that is being commercialized by Blue Biofuels.
Anthony Santelli, Ph.D. Patrick Simms Peter Cohen, Ph.D. Eric Libra, Ph.D.
CFO CFO VP Manufacturing & Engineering Laboratory Director
Director of Research
Founder of AES Financial Advisors & Successfully commercialized 15 Developer of 9+ analytical Process and scale up technology expert,
portfolio manager of two VC funds. biotech products including ethanol. methodologies, discovered anti- in pharma and specialty chemical fields.
Expert in micro-cap company Holds two patents – both cancer compounds, worked on Focused on the implementation of new
leadership and turnarounds. commercialized and ran two IPOs. trade secrets for NASA, Intel and technical methodologies and
USDA. optimizations.
© 2021 Blue Biofuels, All rights reserved.
0913CONTACT INFO
OTCMKTS: BIOF Ben Slager, Chief Executive Officer Address:
Ben@bluebiofuels.com 3710 Buckeye Street, Suite 120
561-717-0571
Palm Beach Gardens, FL 33410
Anthony Santelli, Chief Financial Officer
www.bluebiofuels.com
Anthony@bluebiofuels.com
561-359-8222
© 2021 Blue Biofuels, All rights reserved.
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