Presentation on theme: "Ethanol & Innovation Investment Overview"— Presentation transcript:
1 Ethanol & Innovation Investment Overview Tyler J. Krutzfeldt, CFAManaging DirectorMont Vista CapitalJune 25, 2012EPAC MeetingBillings, MT
2 What we will discuss Energy Market Overview Biorefinery 2.0, 3.0 Our FocusConclusion
3 Who we areA 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.
15 Gas – bearish, mid-term2011, the US accounted for half of natural gas supply increase, globallyBecause of new supply, natural gas prices have dropped 85% since 2008Fracking and coal economicsPeak 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
17 A BiorefineryFuel molecule is lower % gross revenue than non-fuel co-productsRevenue diversification via food, chemical, and premium* drop-in fuelsPremium* = D5 RINSCapital markets keen on biochemicals & biomaterials displacing under current specsBiochemical supply constrained
20 Other Pathways Cellulosic Fractionation to Clean Sugars (Biorefinery) Supply chain/capex/cap markets uncertaintyFractionation to Clean Sugars (Biorefinery)$ $0.15 per pound $6/bushel sorghumCompelling for downstream product pathwaysCCS/EORSignificant uncertainty
21 Our Focus6-8 key clean energy/clean water businesses, not technologies aloneProblem solvers, not seekersSubstitutes in existing supply chainsLifecycle GHG targets assist in defining strategy over investment horizon.Projects not ideasSeries of little bets