November 8, 2011

Carbon Cultures

Jenny Knoth

Dan Schwartz

Jeff Canin

Revenue Model

Carbon Cultures

Services: Waste Removal

Consultation

Biochar Sales

Operation Marketing

Revenue Generation

Land Owner

Fee for Biomass

Direct

Model

November 8, 2011

Carbon Cultures

Jenny Knoth

Dan Schwartz

Jeff Canin

Carbon Cultures

% Biochar Sales

Franchisee

Marketing Leads

Revenue Generation

Land Owner

Fee for Biomass

Franchise

Model ?? First Look

Pryolysis System Training

Quality Certification

Biochar Sales

Hypothesis

Hypothesis

Hypothesis Hypothesis

Fee or Free

Fee or Free

Fee or Free

How will we price our product? (biochar, not system)

New product in existing market

– not directly competing with compost

more of an additive value

Interviews gave us range of feedback

Depends on Packaging

Packaging of Biochar

Smaller high end market

Bulk – customers buy by the pound

Ground to small size

Larger mainstream market

Bagged or mixed in with compost – 1.5 cu yard

bags, or smaller 2.2L bags

Large scale landscape level supplier

Truck load unprocessed

Maybe left on site – restoration

Competitor’s Pricing and Packaging

Large delivered or shipped bags 1.0 cu yards

Biochar Solutions = $300 listed on web

Small bags sold retail and mail order – 2.2 dry liters

3 brands = $4- $6 retail

Not found as an “add-in” in compost or soil mixes

Truck load bulk - Forest Service pays ~$1500/t

Rough Income Statement:

Cost Revenue Income

Biomass Fee

$5-10/ton

Biochar Sale

$1500 –

$4000 /ton

Blanket

$5000

Durable but?

Blanket /Tech

Sale

License

Rental

Operations

$50/ton

?

Landowners-

Wood waste

generators

Biochar user-

Industrial

Biochar user -

Retail Gardening

Landscape Designer

The Business Model Canvas

Distribution

C - Sequestration

R.E.Credits

Landowners

Blanket sale/

Franchise

Waste Removal

Air Quality

Improvement

IP &

Know How

Distributors

Personal

Assistance

Direct Sale

Sale of Biochar

Wholesale

Retail

Franchise

Service For

Waste Removal

Reliable Low Cost

Char source

Reduce Run Off

Increased Soil

Productivity with

Lower inputs

Crew Training

Secure feedstock

Education

Marketing

Relationships

With

Landowners

Blanket

Manufacturer

Field

Operation

Capital

Fixed costs

Channel Hypothesis Still = B 2 B

WA DNR

Biochar user -

Agricultural Biochar

Advocates

People

Biomass

Contractors

Some important Missed Calls...

Royal Oak, LLC (2nd largest charcoal company)

Cedar Grove Compost – Trying to break the ice

SunGro – big soil amendment company, local

Rainier Wood Recyclers – waiting on call back

Etc.

Good Contacts Made:

Jake at Rexius – knows about biochar wants more quantitative data so he knows

the economic value

Rob Harrison. PhD soil scientist – gets our first cubic yard for a replicated trail in a

high-vis area. Demonstrate how less inputs will still be high gain – fertilizer and

pesticide holding, etc

Carson Sprenger – Enthusiast, consultant – noted desperation of landowners..

Might be place to start franchise??