Mexico - Feedstock for Biofuels -PROBIOSIMBTEC

8/13/2019 Mexico - Feedstock for Biofuels -PROBIOSIMBTEC

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Feasibility Feedstock Mexico

Prepared bPrometheaSimbiotec,


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The Raise and Use of Funds

Develop companyowned/controlledfarm for oilfeedstockproduction

Developrelationships withother oil producersthat allow forpooled distributionandcommercialization

Develop UMexican vefor capital

Foment reMexico

Understanproduction$1,000,000raised.

Understantransportatshipping co

different po


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The Opportunity Defined

Create a production anddistribution channel for biodieselfeedstock exports from Mexico tothe USA.

Maximize certain advimport/export made pNAFTA.

Retain benefits of U.Sand/or renewable dieto producers or blend


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The Value Proposition

Reap higher ma

Offer competitiv

ceilings for buyfloors for produ

Reduced volatility = Reduced risk = CapitalizationOpportunity


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WANT

1. Floor price2. Upside participation3. Lower farm costsdirectly related to f

4. Stability


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Widescreen Presentation

This template is formattedwith a 16:9 widescreenaspect ratio. Its a greatway to take advantage oflaptops, televisions andprojectors equipped withwidescreen displays.

Even if you do nowidescreen displacan still create anpresent 16:9 slidePowerPoints Slid

always resizes yoto fit any screen.

The model of Mexagriculture has nosignificantly since1970s.

Level of farmtechnology hincreased

Multinationacorporationshave used Nform corporasubsidiaries cooperative


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What Crop?Jatropha is a possib

So are more traditio

The more traditionalhave the benefit of ffarms and farmer wicultivation and proce

experience.

The introduction of ntypes is also attracti


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The Current Landscape

Biodiesel in Mexico is produced from animal fatand used cooking oil.

Other feedstock opportunities includes palm oil,sunflower, safflower, canola, and soybean.

Mexican government is interested in jatropha,but does not have a current action plan.

SENER estimates that more than 2 million ha areavailable for palm oil production (currently 15,000ha), and approximately 1 million ha are available for

jatropha cultivation.

Biodiesel

From jatropha

From canola

From sunflower

From used cooking oil/tallow

Source: SENER-BID-GTZ 2006


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Widescreen PicturesSuitable Areas for Biodiesel FeedstockProduction (SENER 2007)


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What are the challenges?

Cementing thedistribution channel

Forming therelationships and

entities necessaryforcommercializationand customs

passage

A real probleMexican agrsegment is c

compliance aenforcement


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Supply and Demand

Mexico does not produce enand oilseeds to meet internathe countrys food and livest

import sizable volumes of th

commodities to make value-products, primarily for the do

Truck capacity isapproximately 4,000 gallons

of feedstock.


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The Legal Landscape


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What Mexico Wants

April 26, 2007, theMexican Congressvotedoverwhelmingly for

the BiofuelsPromotion andDevelopment Law

Products thacompete withfood.

Increased

generation ostocks

Increasedexportation b

Mexican enti


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Mexican Government Agenc

SENER - the Secretariat of Energy (SEN

Permits biofuels related concerns

SAGARPA - the Secretariat of Agriculture

Permits agricultural concerns

The scope of the concern determines whether permits are required Additional permits are required at the State and Local levels of gove


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Location Selection

A variety of agricultupolitical, and econom

need to be considersuitable location is s


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Location Selection

Prefer areas oflesser conflictingactivity

Prefer areas that

want U.S.investment dollarsand have supportingpolicies and

infrastructure.


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CONCLUSIONS

Prefer areas that currentlyhave less U.S. directinvestment, all things beingequal


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QUESTIONS

?Todd Ryan Gregory HillManaging Principal & FounderPromethean [email protected]
mailto:[email protected]:[email protected]


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Contact Information

Todd Ryan Gregory HillManaging Principal & FounderPromethean [email protected]
mailto:[email protected]:[email protected]

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Mexico - Feedstock for Biofuels -PROBIOSIMBTEC