blue sky biomass - project description and opportunity document

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Blue Sky Biomass RENEWABLE ENERGY RESOURCES DELIVERING PRODUCTION AND DISTRIBUTION OF INDUSTRIAL GRADE WOOD PELLETS FOR EXPORT AND DOMESTIC POWER GENERATION www.blueskybiomass.com www.facebook.com/blueskybiomass PRESENTED BY: KRONOS INTERNATIONAL INVESTMENTS LIMITED Securities Law Disclaimer: The information contained herein has been prepared for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or to participate in an investment strategy. Any offering of securities shall be pursuant to a definitive Confidential Private Placement Memorandum, LLC Operating Agreement, Investor Suitability Questionnaire and Subscription Agreement, which may supersede this information in its entirety. This summary is intended to be distributed to and viewed only by Accredited Investors and Non-US Investors as defined by the Securities Act of 1933.

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DESCRIPTION

Blue Sky Biomass was formed by KIIL o provide a structure for the consolidation and growth of viable commercial tree and waste wood biomass projects in the United States. Our plan is to construct modular pellet plants, initially in Georgia, Florida, Oklahoma and California then across the United States. Sourcing waste wood product, such as city green waste, forest clean up, invasive plant removal and growing new biomass specific forests. Blue Sky Biomass is seeking to become a leader in sustainable forests and wood pellet production for export and domestic consumption for clean power production and heat generation. ? Blue Sky Biomass has engaged Green Giant Venture Fund to produce Project Design Documents and secure forward and future sales of Carbon Credits and other environmental commodities that are created through the planting nd use of biomass as a fuel replacement for coal. ?Our biomass feedstocks are focused on fast growth forests of select strain trees and waste wood such as provided by the removal of invasive species, like the Eastern Red Cedar in Oklahoma and surrounding states. The USDA Natural Resources Conservation Service (NRCS) estimates that eight million acres in Oklahoma are currently infested with at least 50 [Eastern Red Cedar] juniper trees per acre. The encroachment is increasing at an estimated rate of 762 acres a day or nearly 300,000 acres per year. Blue Sky Biomass has partnered up with Carbon Forests International for the supply of ENGEN-BSR, a fast growing hybrid of the Paulownia tree. This select strain tree provides for an average of 32 tonnes of usable biomass for pellet production, while removing approximately 60 tonnes of carbon dioxide from the atmosphere. Pellet production from our biomass feedstocks is being targeted for sale to European, Asian and local energy providers. Current demand is spured by a greater proportion of power stations being configured to use sustainable biomass as a renewable energy resource.

TRANSCRIPT

Page 1: Blue Sky Biomass - Project Description and Opportunity Document

B l u e S k y B i o m a s s

RENEWABLE ENERGY RESOURCES DELIVERING PRODUCTION AND DISTRIBUTION OF INDUSTRIAL GRADE

WOOD PELLETS FOR EXPORT AND DOMESTIC POWER GENERATION

www.blueskybiomass.com www.facebook.com/blueskybiomass

PRESENTED BY:

KRONOS INTERNATIONAL INVESTMENTS LIMITED

Securities Law Disclaimer: The information contained herein has been prepared for informational purposes and is not an offer to buy or sell or a solicitation of an

offer to buy or sell any security or to participate in an investment strategy. Any offering of securities shall be pursuant to a definitive

Confidential Private Placement Memorandum, LLC Operating Agreement, Investor Suitability Questionnaire and Subscription

Agreement, which may supersede this information in its entirety. This summary is intended to be distributed to and viewed only by

Accredited Investors and Non-US Investors as defined by the Securities Act of 1933.

Page 2: Blue Sky Biomass - Project Description and Opportunity Document

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C O N C E P T

Consolidate several startup tree, pellet and green waste removal companies

Construct modular pellet plants, initially in Georgia, Oklahoma and California then across the United States

Source waste wood product, such as city waste, forest clean up, invasive plant removal

Plant and grow biomass specific forests **

Produce wood pellets for export and domestic consumption, in clean power production and heat generation

Distribute and sell distribute wood pellets via rail, road and sea

Certify and sell carbon offset credits and other clean energy compliance credits

** Blue Sky Biomass uses select strains of Paulownia trees, that are specifically grown to create high

yielding, annually harvested biomass feedstock to maximize product delivery.

Project finance is to be supplied through foreign investment in US job creation,

through a United States Citizenship and Immigration Service

EB5 – Employment Based Investment Visa Program.

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E N G E N - B S R

Blue Sky Biomass partners have licensed the select strain of paulownia trees known as Engen-BSR™. These

deciduous hardwood trees are pest and disease resistant, combined with their fast growth, (appx 20-25ft / year)

makes the Engen-BSR specifically suited for biomass feedstocks production.

Producing annually over 32 tonnes per acre, the Engen-BSR trees regenerate themselves from the stump without

replanting, producing annual rotational harvesting for a period of up to 50 years.

Page 4: Blue Sky Biomass - Project Description and Opportunity Document

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W O O D B I O M A S S P E L L E T S

Wood biomass pellets are renewable energy resources. Small nuggets of compressed wood fiber sawdust,

pellets are used worldwide to generate heat and energy for the following reasons:

Compact size and portability

High energy density

Low moisture content (below 10%)

Carbon Neutral power generation and reduced overall emissions

Easily adaptable to automated combustion systems

A variety of wood sources (“feedstock”) can be used to produce pellets.

The use of waste wood products, including invasive species management, combined with fast growth,

renewable forests, create a reliable and consistent inventory, an easy-to-plan harvesting cycle, and a well-

defined supply chain.

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B I O M A S S P E L L E T FA C I L I T Y P R O F O R M A

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B I O M A S S F O R E S T P R O F O R M A

Acres 3,000.00 UNIT TOTAL Y1 Y2 Y3 Y4 Y5 Y6 Y7

Trees planted 2,040,000

yrs 2-11 harvest 2,040,000 2,040,000 2,040,000 2,040,000 2,040,000 2,040,000 2,040,000

Annual tonne's 200,000 200,000 200,000 200,000 200,000 200,000 200,000

$per/tonne (wet) 3% increases 40$ 8,000,000$ 8,240,000$ 8,487,200$ 8,741,816$ 9,004,070$ 9,274,193$

INCOME

2-10 yr harvest 91,711,034$ 8,000,000$ 8,240,000$ 8,487,200$ 8,741,816$ 9,004,070$ 9,274,193$

Total Income 91,711,034$ -$ 8,000,000$ 8,240,000$ 8,487,200$ 8,741,816$ 9,004,070$ 9,274,193$

EXPENSES Y1 Y2 Y3 Y4 Y5 Y6 Y7

1,500,000$ 1,500,000$

1,980,000$ 180,000$ 180,000$ 180,000$ 180,000$ 180,000$ 180,000$ 180,000$

Admin Annual 640,390$ 50,000$ 51,500$ 53,045$ 54,636$ 56,275$ 57,964$ 59,703$

640,390$ 50,000$ 51,500$ 53,045$ 54,636$ 56,275$ 57,964$ 59,703$

2,561,559$ 200,000$ 206,000$ 212,180$ 218,545$ 225,102$ 231,855$ 238,810$

300,000$ 300,000$

Tree Planting 300,000$ 300,000$

6$ 12,240,000$ 12,240,000$

225$ 6,750,000$ 675,000$ 675,000$ 675,000$ 675,000$ 675,000$ 675,000$ 675,000$

403,182$ 200,000$ 20,000$ 20,600$ 21,218$ 21,855$ 22,510$ 23,185$

70,000$ 70,000$

Harvesting ($3.00 per tonne) 6,878,328$ 600,000$ 618,000$ 636,540$ 655,636$ 675,305$ 695,564$

2,292,776$ 200,000$ 206,000$ 212,180$ 218,545$ 225,102$ 231,855$

1,280,780$ 100,000$ 103,000$ 106,090$ 109,273$ 112,551$ 115,927$ 119,405$

Total Project Costs YR 1-10 3% Increases 37,837,404$ 15,865,000$ 2,087,000$ 2,123,960$ 2,162,029$ 2,201,240$ 2,241,627$ 2,283,226$

Total EBITDA 53,873,631$ (15,865,000)$ 5,913,000$ 6,116,040$ 6,325,171$ 6,540,576$ 6,762,444$ 6,990,967$

YEARLY CASH FLOW YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7

135,000$ 3,024,000$ 4,570,020$ 5,447,596$ 9,029,788$ 15,792,231$

16,000,000$ 8,000,000$ 8,240,000$ 8,487,200$ 8,741,816$ 9,004,070$ 9,274,193$

(15,865,000)$ (2,087,000)$ (2,123,960)$ (2,162,029)$ (2,201,240)$ (2,241,627)$ (2,283,226)$

6,048,000$ 9,140,040$ 10,895,191$ 11,988,172$ 15,792,231$ 22,783,198$

50% 16,000,000$ 3,024,000$ 4,570,020$ 5,447,596$ 2,958,384$ -$

135,000$ 3,024,000$ 4,570,020$ 5,447,596$ 9,029,788$ 15,792,231$ 22,783,198$

Total Revenue 91,711,034$

(37,837,404)$

53,873,631$

Fertilizer per Acre

Land Prep

Pest cntrl & Fencing

Field Trucks

FINANCIAL SUMMARY

Balance

Total Expenses

Expenses

Development Costs

Trucking ($1.00 per tonne)

Return of Capital

Prior Year

Income

Labor Maintenance

Net Operating Capital

Net Profit

PRODUCTION

Seedlings/Planting/Warranty

Foreman w/burden

Land Lease

Contingency

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C A R B O N C A P I TA L PA R T N E R S

Blue Sky Biomass has engaged Green Giant Venture Fund to produce the Project Design Documents and

secure forward and future sales of the Carbon Credits and other environmental commodities that are

created through the plantations and biomass use as fuel replacement for coal.

Green Giant Venture Fund has taken an equity stake position in Blue Sky Biomass. As an operating

partner has also agreed to develop and forward sell/broker the Climate Reserve Tonnes (CRT credits)

available for these projects under North America's Climate Action Registry Forestry protocol.

Green Giant Venture Fund is a registered service provider for;

World Bank- Carbon Finance

United Nations Framework for Convention on Climate Change –

Clean Development Mechanism Bazaar

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E - 4 P H I L O S O P H Y

E N V I R O N M E N T A L

Environmental responsibilities are paramount to Blue Sky Biomass. Projects undertaken must create a positive

environmental impact above any outcome that may occur without the project proceeding.

E C O N O M I C

Economic responsibility is essential for any company. Thorough economic analysis is conducted prior to any Blue

Sky Biomass project proceeding beyond the evaluation stage. As well as addressing environmental

responsibilities, Blue Sky Biomass projects are designed to provide a positive economic impact to the local

community and region where any project is located, in addition to targeted shareholder value..

E M P L O Y M E N T

Blue Sky Biomass recruits staff from local communities where the project is located. Biomass plantation projects

are often developed in remote regions where local communities have experienced high unemployment.

Creating jobs for the community can provide not only provide an injection of capital into the local economy, but

deliver lasting results in other areas including education and job training.

E D U C A T I O N

In all of Blue Sky Biomass projects, staff are trained and educated in the latest green technologies to ensure we

remain at the forefront of the industry. This education provides staff, many of whom are located in remote areas

and developing communities, with skills that can be passed on to family and friends.

Page 9: Blue Sky Biomass - Project Description and Opportunity Document

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N E X T S T E P S

Complete First Round Private Placement to secure $500,000.

Secure Second Round Private Placement to secure $2,500,000.

Complete Form S-1 Securities Registration, Audit and Preparation for IPO and Public Listing.

Complete Regulatory Compliance for Capital Raising of $88mil through debt issuance under the United States Customs and Immigration Service EB-5 Employment Based Investment Visa Program. The Georgia Project already has approval to proceed to fund $38m for initial round of foreign investment.

Formalize letter of intent for the sale of initial annual pellet supply; a) 110,000 tonnes per year of pellets at US$145 per tonne. B) 440,000 tonnes per year of pellets at US$145 per tonne.

Complete land leases for Georgia and California and secure further land parcels.

Prepare for first 2,000,000 tree planting at Georgia and California.

Complete contracts for removal of Eastern Red Cedar with Oklahoma Department of Agriculture.

Complete contracts for waste wood management in Georgia.

Select pellet plant contractor and order first three (3) pellet plants.

Prepare Project Design Document and other carbon credit certification and commence credit sales.

Complete contracts for shipping and product distribution.

Commence Initial Public Offering to secure $50,000,000 for additional pellet plants and forests.

Page 10: Blue Sky Biomass - Project Description and Opportunity Document

C O N TA C T I N F O R M AT I O N

Kronos International Investments Limited

999 18th Street Suite 3000 Denver, Colorado 80202

Phone: +1 (720) 398-6611 Fax: +1 (720) 221-0446

[email protected]

Green Giant Venture Fund

Angra Dos Reis RJ Brazil and La Jolla California.

Phone: +1 (858) 352-6490 Alt: +1 (858) 888-2575

[email protected]

SAFE HARBOR AND FORWARD-LOOKING STATEMENTS: This document may contain certain "forward-looking statements" with respect to certain World Property Company plans,

goals and expectations regarding its future financial condition, performance, results, strategy and objectives. Words such

as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "could", "would", "might", "will" and

variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any

statements that refer to expectations, beliefs, plans, projections, objections, performance or other characterizations of

future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking

statements in this document are forward-looking statements are based upon current expectations and assumptions

regarding anticipated developments and other factors affecting the World Property Company and are not historical facts,

nor are they guarantees of future performance.

B l u e S k y B i o m a s s

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E B - 5 V I S A P R O G R A M I N F O R M AT I O N

• Blue Sky Biomass , in conjunction with Kronos International Investments, intends to leverage the EB5 Foreign Investment program to provide the capital required to fund its projects to be located, initially Georgia and Oklahoma.

• The EB-5 Investment Visa program for Immigrant Investors is a United States program visa created by the Immigration Act of 1990. This type of visa provides a method of obtaining a green card for foreign nationals who invest money in United States companies. To obtain the visa, individuals must invest $1,000,000 (or at least $500,000 in a "Targeted Employment Area" - high unemployment or rural area), creating or preserving at least ten jobs for U.S. workers.

• Investments can be made directly in a job-generating commercial enterprise (new, or existing - "Troubled Business"), or into a Special Purpose Fund, overseen by a Regional Center, which assumes the responsibility of creating the requisite jobs. Currently, a total of 10,000 EB-5 Visas are available in each calendar year.

• At the end of September 2012, President Obama signed into law S. 3245 extending the EB-5 Regional Center Program for an additional three-year period. The program was reauthorized by the House of Representatives on September 13 in a vote of 412-3 and passed by the Senate in August 2012.

• If the foreign national investor's petition is approved, the investor and their dependents will be granted conditional permanent residence valid for two years. Within the 90 day period before the conditional permanent residence expires, the investor (or Fund Manager for the Special Purpose Fund) must submit evidence documenting that the full required investment has been made and that ten jobs have been maintained, or ten jobs have been created or will be created within a reasonable time period.

• Given the lack of conventional capital available post Global Financial Crisis, an increase in the use of EB5 has been observed. In 2011, 3,800 EB-5 applications were filed, compared to only 3,100 in 2007. Final numbers for 2012 have not been published yet, however industry insiders forecast approximately 7,000 applications were filed.

• The Unites States Citizenship and Immigration Service defines a targeted employment area as an area which, at the time of investment, is a rural area (not within either a metropolitan statistical area (as designated by the Office of Management and Budget) or the outer boundary of any city or town having a population of 20,000 or more), OR an area within an MSA or the outer boundary of a city or town having a population of 20,000 or more which has experienced unemployment of at least 150% of the national average rate.