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Waste biomass into revenue: carbon neutral fuels, soil conditioners

Cleantech company seeking capital as of February 25, 2011
Executive summary of company's business: 

In 2008, Canada produced 28 million-tons of biomass waste, including wood chips, manure and plant residues. Through inefficient disposal or inaction, a vast resource of bioenergy and economic potential was under-utilized. Typically, biomass waste ends up in landfills or is shipped great distances at great cost. There is an opportunity to establish a network of transportable charcoal plants capable of operating at the source of biomass waste, converting the waste to value added products, and then moving to new sites as required.

Diacarbon Energy Inc is positioned to become a lead supplier of Closed-Loop Biomass Management Systems, bio char for soil amendments and renewable fuel, bio oil as a renewable fuel and as a feedstock for specialty chemical production. The Company projects diverse applications for its products, but in its early stages, the business is centered on the thermo chemical conversion of biomass waste to bio oil and biochar, and is developing a range of horticultural products enriched with bio char for agricultural, turf, and commercial greenhouse applications.

The Company is developing its transportable, modular biomass refinery technology to address the needs of several industries with biomass waste problems. By coupling biomass waste problems with energy demands and carbon offset requirements, the Company will in its maturity offer a complete and integrated renewable energy solution for its prospects. Within this multi-billion dollar biomass market, the Company projects annual revenues in excess of $40M by 2015.

Dynamotive, Alterna Biocarbon, Ensyn, BioChar Engineering
Differentiation vs. competitors: 
Out of Diacarbon Energy's identified direct competitors, three of the four companies depend on high quality woody biomass including Dynamotive, Alterna Biocarbon and Ensyn. In addition, these companies have higher capacity stationary plants and focus on the development & quality of the bio fuels. In order to achieve favourable economics, these competitors must develop economies of scale and consequently invest in more expensive, higher capacity stationary plants. Diacarbon Energy exploits its Transportable Biomass Refineries to create Closed Loop Biomass Management Systems that are not limited to woody biomass feedstock or specific locations. Thus, the Company differentiates itself from the competition and achieves favourable economics by avoiding heavy costs associated with procurement, processing and transportation of feedstock and bio fuels. Biochar Engineering was the only identified competitor with a portable plant. Biochar Engineering is in the early development stage and its limited focus on crop residue combined with a processing capacity that is only 20% of Diacarbon Energy's Pilot Biomass Refinery, weakens its competitive position. Diacarbon Energy has three advantages in its differentiation strategy: 1. Portability of refineries; 2. Flexibility in operating conditions (variable oil and char yields); and 3. Aggregation of carbon credits for customers ineligible for traditional validation projects. These advantages give the Company exclusive access to remote feedstock supplies that are not economical to ship to a larger facility, but the Company's carbon credit service gives access to smaller participants. Variability of yields allows for multiple feedstock opportunities.
Key team members: 
Jerry D. Ericsson, co-founder, PRESIDENT, DIRECTOR OF RESEARCH & DEVELOPMENT has a Masters degree in Plant Science, and is a PhD candidate at Simon Fraser University. Jerry has studied and worked in forestry & agricultural applications for the last 15 years as a consultant for the federal government, and as a subcontractor for local pest managers. Daniel L. Ericsson, co-founder , DIRECTOR, FABRICATION SUPERVISOR has more than 46 years experience working with metal and mechanics. He is organizing labour for the fabrication facilities. J. Christopher Meyer, DIRECTOR, Partner at Watson Goepel Maledy LLP and Honorary Consul for South Africa, gives legal and business council, and is an advisor for the licensing and protection of intellectual property and technology. Timothy A. Clarke, Senior Manager of Sustainability Services at KPMG, provides expertise on sustainable green technology, access to the emerging carbon markets, and the aggregation and allocation of carbon trading. Jim Goertz, Certified General Accountant, provides office management and financial services, having been actively working in these areas for the last 20 years in a variety of industries. Jared Taylor, PhD, Dept. of Microbiology and Immunology Carl Wieman Science Education Initiative, UBC, actively consults on the development and future research directions for energy products derived from biomass sources. Richard M. Plunkett, PhD, Professor of Biology, Highlands University, New Mexico, USA - A microbiologist performing research on the remediation of soil contaminated with industrial pollutants from the mining, chemical, and oil & gas industries. OPEN POSITIONS: The Company plans to expand the Management team to include a Chief Executive Officer, a Chief Financial Officer, Chief Operations Officer, Chief Technology Officer and a Business Development Officer upon receipt of funding.
Existing investors and capitalization details: 
The company prototyped with friends and family funding from October 2009 until current, received an BC Innovation Council grant towards business plan production and is awaiting the first institutional investment.
Capital sought & use of proceeds: 
Diacarbon Energy seeks to raise $5,000,000 in order to i) finalize process engineering, ii) build, optimize and deploy its commercial 3-ton per hour Transportable Biomass Refinery; iii) build its management team; iv) complete infrastructure including test facilities and lab; v) acquire working capital; and vi) for marketing & business development within the Company's identified targets for its technology and products.
Characteristics of ideal investors: 
Venture investors with experience in renewable energy investing and start-up-to-public experienced individuals for board involvement. Forestry and agricultural companies with or without corporate venturing divisions that would benefit from waste–to-fuel applications on site.
Expected close date: 
May, 2011
Company name: 
Diacarbon Energy
Contact name: 
Jerry Ericsson
Contact email:


2250 Boundary Rd Unit 120
Burnaby, BC V5M 3Z3
Phone: 604 291 0001
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Kachan & Co. (Kachan) is not registered as an investment dealer or advisor with any securities commission or similar regulatory authority in any jurisdiction and cannot and will not have any involvement in any transaction that may take place between the Company above and any prospective investor. Kachan will not a) discuss any matters with the Company or investors that requires familiarity with securities, b) advise the Company or investors on the merits of particular investments, securities, any proposed listing of securities on any exchange or quotation service or otherwise provide securities advice, c) participate in negotiating the terms of any transaction, or d) handle funds or securities in connection with any transaction.

Kachan has not verified the information provided by the Company and makes no warranties or representations regarding the truth, accuracy or completeness of the information provided by such. Kachan is not responsible for the release of any confidential, restricted or proprietary information provided by the Company above.