The Matilda

Spinning Wheel Energy, Inc.

“The Matilda”(a biodiesel plant)

To be constructed in Puerto Rico, USA

Biodiesel 101

Biodiesel Defined

• Biodiesel, n.- a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B-100 and meeting the requirements of ASTM D 6751.

• Biodiesel blend, n.- a blend of biodiesel fuel meeting ASTM D 6751 with petroleum-based diesel fuel designated BXX where XX is the volume percent of Biodiesel.

Biodiesel Raw Materials• Oil and Fat

– Sunflower– Beef tallow– Pork lard– Used Cooking oils– Soybean– Corn– Canola– Cottonseed

Alcohol

MethanolEthanol

Catalyst

Sodium hydroxidePotassium hydroxide

The Biodiesel Reaction

Yields

• Biodiesel• (100 lbs.)

• +• Glycerin• (10 lbs.)

Biodiesel Physical Properties

• High Cetane (>50 vs. 42)• Flash Point (260° F vs. 150° F)• Virtually Zero Sulfur• Meets 2006 ULSD rule• No Aromatic Content• Superior Lubricity• Integrates into existing petroleum infrastructure

B5 Performance Properties• Performance to B5 has Similar• Petrodiesel:• Torque• Horsepower• Mileage• Range• BTU Content

Environmental Attributes

• Energy Balance - for every one unit of energy needed to produce biodiesel, 3.2 units of energy are gained.

• Biodegradable and Non-Toxic - Tests sponsored by the United States Department of Agriculture confirm that biodiesel is safer than diesel and biodegrades as fast as dextrose, a test sugar.

• Greenhouse Gases – A 78% life cycle decrease in CO2 according to a USDA and DOE study.

Cleaner Emissions• Emission Type B100 B20 B2

• Total Unburned Hydrocarbons - 67% - 20% -2.2%

• Carbon Monoxide -48% -12% -1.3%

• Particulate Matter -47% -12% -1.3%

• Oxides of Nitrogen 10% 2% 2%

Biodiesel Health Properties

• Reduces particulate emissions

• Reduces targeted compounds thought to cause cancer: PAH, n PAH

• Biodiesel blends did not generate any unexpected new hydrocarbon species

• Significantly reduces the mutagen city of exhaust in both the gaseous and particulate phases

Enhanced Lubricity• Equipment benefits

• Superior lubricity

• B2 has up to 66% more lubricity than #2 Diesel

Goals• To build a biodiesel plant.

• Serve as a reference tool for key considerations and important questions ask and answer.

• Provide an overview of the biodiesel plant development process.

Key Considerations

• Biodiesel Demand• Legislation and Regulatory Issues• Feedstock Supply• Distribution• Industry Capacity and Competition• Technology Selection

•Biodiesel Demand

Diesel Usage

How is Biodiesel beingUsed?

• As a neat fuel (B100)• As a blending stock with petrodiesel (B20)• Alternative fuel providers• Emissions Reductions• In low levels with petrodiesel (B2)• Lubricity and Ultra Low Sulfur Diesel Fuel• Agriculture supporting its own product

On-Highway Market• Market for diesel 6.5 MBbls. • B20 in all on-highway diesel would require over

48 million gallons of B100 annually• Extremely Cost Sensitive• Market Needs• Education• Infrastructure• Incentives

Legislation and Regulatory Issues

Biodiesel Tax Incentives• Duty free importation of Equipment and

supplies• Enables biodiesel blends to be marketed

more competitive to diesel fuel• No value added tax on products• B100 sales; no income tax• Expires 2020• Implied investment risk

How will it affect price?

• Reduction sales price to consumer by the VAT amount.

• Reduction in the cost of standby power.

Feedstock Supply

Key Feedstock Issues

• Availability and Cost of Feedstock • Multiple Feedstock Opportunities • Quality and Consistency of Feedstock • Preparation for Meeting New ASTM

Standards

Fats & Oils Production

Biodiesel: Looking Forward

• Current Potential: 1.4 Million gal/year

• At Two Years : 10.2 Million gal/year

• At Four Years : 48 Million gal/year

Distribution

Biodiesel form WVO • From waste oil to your tank!

Infrastructure• Self Contained Fueling Unit

Distribution Outlets• #1

Distribution Outlets• #2

Distribution Outlets• #4

Distribution Outlets• #5

Distribution Outlets• #6

Retail Outlets

• Spinning Wheel Energy, Inc. has no current plans to sell directly to the consumer except at our processor or distribution outlets.

Biodiesel Capacity

• Year 01 1.4 million gallons• Year 02 4.2 million gallons• Year 03 10.2 million gallons• Year 04 22.7 million gallons• Year 05 35.1 million gallons• Year 06 54.1 million gallons

Fats and Oil Purchases

• Year 01 4,686 MT• Year 02 14,008 MT• Year 03 34,005 MT• Year 04 83,672 MT• Year 05 117,100 MT• Year 06 180,498 MT

Biodiesel Technology

Biodiesel Production Process

PROCESS FLOWCHART

Biodiesel Is Carbon Neutral

Biodiesel has a Closed Carbon Cycle; Therefore it does not

Contribute to Global Climate Change

Biodiesel is Engine Friendly

High lubricity extends engine life

Technology Selection

B-1000 Compact Production Unit

Inside a Plant

Conversion of Fuel Rate:

1,000 gals. per hour

Operating Cycle :

24 hours per day 5 days16 hours two days a week50 weeks a year.

Production:7.6 million gals.

Economic Impact

Shinning Wheel Energy, Inc.

Everyone else • Low Tech low pay• Mini Health Plans• No home buyer fund• No education asst.• Advancement no!

The Matilda• High Tech great pay• Whole family health plan• Performance Pay• Home buyers fund• Educational advancement

required• By merit!

Spinning Wheel Energy, Inc.

40 Employees$US 8,000,000Annual payroll

Glenn B. Winston786-484-9767

glennbwinston@aol.com

Spinning Wheel Energy, Inc.

The Beginning