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Tyler J. Krutzfeldt, CFA Managing Director Mont Vista Capital June 25, 2012 EPAC Meeting Billings, MT Ethanol & Innovation Investment Overview 1.

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Presentation on theme: "Tyler J. Krutzfeldt, CFA Managing Director Mont Vista Capital June 25, 2012 EPAC Meeting Billings, MT Ethanol & Innovation Investment Overview 1."— Presentation transcript:

1 Tyler J. Krutzfeldt, CFA Managing Director Mont Vista Capital June 25, 2012 EPAC Meeting Billings, MT Ethanol & Innovation Investment Overview 1

2 What we will discuss Energy Market Overview Biorefinery 2.0, 3.0 Our Focus Conclusion 2

3 Who we are A specialized merchant banking team focusing on clean energy, water, and infrastructure opportunities with a sustainable investment strategy. T. Krutzfeldt founding Board member of Algae Biomass Org, speaker at FEW, Platts Biofuel Financing, and published Billings Gazette, Ethanol Producer. 3

4 4

5 Chindia 5

6 China’s appetite 6

7 7

8 Fuel Switch 8

9 9

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11 Crude to Nat Gas 11

12 Fuel Switch 12

13 Power Cost – full carbon 13

14 Power costs – low carbon 14

15 Gas – bearish, mid-term 2011, the US accounted for half of natural gas supply increase, globally Because of new supply, natural gas prices have dropped 85% since 2008 Fracking and coal economics Peak oil doesn’t mean we’re running out of oil. It means we have to spend more to get the remaining oil …bearish for gas 15

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17 A Biorefinery Fuel molecule is lower % gross revenue than non-fuel co-products Revenue diversification via food, chemical, and premium* drop-in fuels Premium* = D5 RINS Capital markets keen on biochemicals & biomaterials displacing under current specs Biochemical supply constrained 17

18 Biorefinery Pathways Ethanol + biogas fuel switch 18

19 Biorefinery Pathways Ethanol + algae Co2 Nutrients H 2 0 Addressable Markets Pharma Fertilizer Chemicals/Fuels 19

20 Other Pathways Cellulosic Supply chain/capex/cap markets uncertainty Fractionation to Clean Sugars (Biorefinery) $0.12 - $0.15 per pound dextrose @ $6/bushel sorghum Compelling for downstream product pathways CCS/EOR Significant uncertainty 20

21 Our Focus 6-8 key clean energy/clean water businesses, not technologies alone Problem solvers, not seekers Substitutes in existing supply chains Lifecycle GHG targets assist in defining strategy over investment horizon. Projects not ideas Series of little bets 21

22 Conclusion opening gates… 22


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