1. Mike McKevitt Jimmy Wright Iain Stables Dave Puech
Biodigester Inc.
Mike McKevitt
Jimmy Wright
Iain Stables
Dave Puech

2. Business Proposal
Manure Biodigester – incorporated into a 5,000 head feedlot
Situated near Rosetown in west central Saskatchewan

3. Project Overview Process raw manure into two value added products
Methane gas which will be burned to generate electricity
An enriched form of fertilizer

4. Methane Gas Produced during microbial breakdown of manure
Used to create electricity

5. Fertilizer More concentrated form than the raw product
Can be classified as an organic fertilizer
Can be sold in bulk liquid form or may be dried and packaged

6. Long-term Benefits Environmental Added jobs to the rural economy
Reduction in air, soil and water pollution associated with ILO’s
Added jobs to the rural economy
Adding to the profitability and long term viability of a farming enterprise

7. Facility Layout

8. Physical Product Flow

9. Capital Budget Site Costs 178,000 Equipment Costs 1,626,694
Net Working Capital
43,873
Total Capital Required
1,848,567

10. Marketing Products Energy will be marketed as environmentally friendly
Fertilizer will promoted as an organic fertilizer

11. Future Markets Dry packaged fertilizer
Needs addition of a water press to the facility
Gives the opportunity to sell to gardeners, greenhouses, etc

12. Pricing Strategy
Price received for energy will be controlled by SaskPower
Fertilizer price will be determined by market forces

13. Promotion
Will take place through brochures, web page and word of mouth
Sales will be done directly without the need for distibutors
Fertilizer sales will be targeted at golf courses

14. Marketing Budget
2006
2008
2010
2012
2014
Vehicle(Lease, Fuel & Insurance)
10,776
Telephone
2,160
2,247
2,338
2,433
2,531
Brochures
1,590
1,931
2,345
2,848
3,458
Webpage
2,500
306
318
331
345
Total Marketing Expenses
17,026
15260
15,777
16,388
17,110

15. Sales Forecast Year 2006 2007 2008 2009 2010 Sales 367,400 361,888
Sales
367,400
361,888
389,526
397,316
405,263
COGS
147,543
316,538
265,128
224,163
191,611
Gross Margin
219,857
65,351
124,397
173,153
213,652
Expenses
80,503
73,321
68,683
63,724
58,422
Net Income Before Tax
139,354
(7,970)
55,714
109,429
155,230
Income Tax
15,106
5,175
11,862
16,827
Net Income After Tax
124,248
50,539
97,567
138,403
Total Net Cash Flow to Equity
332,933
190,299
191,451
191,240
192,818

16. Financing Budget Total Financing Required 1,795,335 Long Term Debt
897,677
Owners Equity
Total Financing

17. Dividend Policy Estimated dividends paid to investors 2006 2007 2008
2009
2010
(268,303)
59,057
184,792
185,834
185,490

18. Sales Forecast - Energy
2006
2008
2010
2012
2014
Quantity Sold (kWh)
1,500,910
Price($/kWh)
0.11
0.12
0.13
Revenue($)
$165,100
$171,770
$178,710
$185,930
$193,441

19. Sales Forecast - Fertilizer
2006
2008
2010
2012
2014
Quantity Sold (m3)
26,600
Price ($/m³)
5.50
5.72
5,95
6.19
6.44
Revenue ($)
146,300
152,211
158,360
164,758
171,414

20. Sales Forecast – Manure Removal
Year
2006
2008
2010
2012
2014
Quantity Sold (kWh)
28,000
31,500
Price($/m³)
2.00
2.08
2.16
2.25
2.34
Revenue($)
56,000
65,545
68,193
70,48
73,815

21. Organizational Structure
SaskEnergy
(30%)
Biodigester
Founders (70%)
Board of Directors
Saskenergy(1) Biodigester(2)
President/CEO
Manager
Technician

22. Employees General Manager Technician Oversees day to day operations
Marketing
General office duties
Technician
Perform required maintenance
Fill and monitor digester tanks

23. Employees – cont’d Temporary Maintenance crew Seasonal employees
Help with general upkeep of facility

24. General Assumptions
Biodigester will be filled continuously and the fertilizer will be removed regularly
Manure will be readily available year round
The loan will have a fixed interest rate

25. General Assumptions Able to secure equity financing
Inflation rates will remain at or near the same level
Biodigester is able to contract the energy, fertilizer and manure removal

26. Conclusion Employee training will be critical
Feasibility of a biodigester in Saskatchewan