RENEW ENERGY RESOURCES, INC
RENEW ENERGY RESOURCES, LLC - LA SOS 11-13-13 (Active):
http://www.sos.la.gov/BusinessServices/SearchForLouisianaBusinessFilings/Pages/default.aspx
Business Plan January 2014
Overview
Renew Energy Resources’ mission is to vertically integrate the renewable energy markets of biodiesel and ethanol. Vertical
integration will include facility ownership as well as facility management, strategic feedstock agreements and off take contracts to large end
users, value-added refinement of glycerin and other by-products, distribution, sales, marketing and financing of domestic and export sales
contracts. The Company has completed preparation for the start of vertical integration in the biodiesel market, and anticipates newly integrated
ethanol markets in the latter part of 2013/early 2014.
Industries
Biodiesel
RENEW’s initial business line, scheduled to commence in January 2014, is to integrate the financing, production and off take of
feedstock agnostic based biodiesel for domestic distribution to fulfill open demand by large national distributors. Subsequent to the
development of domestic channels of distribution, RENEW plans to integrate the finance, production and export of blended biodiesel to
maximize supply train driven initiatives on a worldwide basis. The Company is currently exploring opportunities to operate and ultimately
purchase a domestic based biodiesel producer, which meets its supply train criteria of water, rail and road access in the United States and is
evaluating and opportunity of an overseas acquisition. The Company is uniquely place in the industry with negotiated feedstock and off-take
agreements, which will allow for the creation of a multinational alternative energy company
Ethanol
Current US based ethanol companies that are utilizing corn based processes, which has led to volatility in both the Ethanol market and the Corn
food markets. RENEW will focus on ethanol produced from Sucrose based feedstock which can be both locally obtained and imported,
allowing for the acquisition of a stable low cost Ethanol such as is available in Central and South America. This vertical integration of the
ethanol production model significantly reduces commodity risk. If financing can be obtained, the Company would like to construct and operate
multiple ethanol processing plants based on Sucrose and a relatively new energy crop called Sweet Sorghum.
The Company envisions eventual investments in projects in Southeastern Louisiana, Florida and various Caribbean nations that have ideal
economic, political and energy climates for these types of vertically integrated ethanol/electric facilities. If developed, the ethanol produced
would be exported and the electricity produced during the process would be sold to the respective countries’ power system. Sweet Sorghum has
great potential, as there are many semi-arid climates across the world where this crop can be grown to provide renewable electricity, as well as
ethanol.
Typical business model In the typical business model, corn is either sold to a grain elevator or directly to the ethanol plant. The ethanol plant does not own the
production of the crop and is susceptible to commodity risk. The co product from the dry mill ethanol process is distiller’s grain. It is a corn
feed product that is primarily fed to cattle and to a much smaller extent poultry and swine. The market for distiller’s grains is saturated. As the
volume of distillers increases with more dry mill ethanol plants coming on line, supply is outstripping demand. In addition to commodity risk,
the ethanol plants have also been negatively impacted by increased natural gas and electricity costs, which is the second largest input cost after
corn.
The production of ethanol from sucrose based feedstock like Sugar, Molasses, and Sweet Sorghum or Energy Cane minimizes the commodity
risk because, under its current business plan, the Company will partner with the producers of the multiple feed stocks used. The production
process continually produces excess electricity that can be sold to the power grid. Because the production process does not consume nonrenewable
sources of energy like coal or natural gas, the process will qualify for carbon credits.
COMPANY STRATEGY
Generate Immediate Cash Flow with low risk domestic distribution – The Company’s immediate focus is on integrating supply, production
and sales to domestic distributors. Vertical integration of the domestic supply chain requires less working capital and involves less risk. There
are several identified animal fat biodiesel producers struggling with limited working capital, technology issues and lack of good sales contracts.
RENEW intends to bring additional working capital to these plants through a management partnership that will correct production problems
and increase the volume of product that can be processed. Finally RENEW will deliver the biodiesel to distributors based on petroleum index
based pricing. Index pricing is not prevalent in the biodiesel industry and makes it very difficult to predict and control margins. Simply put,
because plants cannot predict what their finished product will sell for, they can’t determine what they should or can pay for feedstock.
RENEW’s vertically integrated business model addresses this industry-wide problem.
Value Added Processing of Biodiesel Co-Products – Glycerin is produced during the manufacturing of biodiesel. Glycerin sold as unrefined or
crude can fetch as much as 0.28/lb, but usually brings less than that depending on the quality of the crude glycerin. Glycerin that is refined into
either technical or pharmaceutical grade will increase the sale price substantially. Only a handful of plants in the US have the capacity to refine
the glycerin to technical or pharmaceutical grade. Refining glycerin is technically challenging and requires additional capital, which the
biodiesel plants lack.
Fulfill larger International Contracts as Working Capital becomes more available - After the Company demonstrates the success of the
integrated model, RENEW will replicate the model with European biodiesel traders and distributors. Moving large volumes of biodiesel to
Europe creates a new series of challenges, not the least of which is the significant amount of working capital required to support the
transaction.
View the Full Report Here | Opens in New Wondow Biodiesel History and Production Methods
History
Biodiesel has been produced on an industrial scale in the European Union since 1992. Biodiesel is a renewable fuel produced from vegetable oils such as rape seed oil, sunflower seed oil, soybean oil and also used frying oils (UFO) or animal fats. And even so the production of biodiesel is a complex process indeed, the glycerin that is being distilled during the production process can be used for both technical and pharmaceutical applications.
Production Methods
Bio diesel: various production methods
There are three basic methods to biodiesel production:
• Base catalysed transesterification of the oil;
• Acid catalysed transesterification of the oil;
• Conversion of the oil to its fatty acids and then to biodiesel.
Base Catalysed Reaction
Most of the biodiesel produced today is done with the base catalysed reaction. This catalyst being used splits the oil into glycerine and biodiesel. The glycerin produced at this stage is crude glycerin and is about 80% pure, but still contains contaminants like soap, methanol and water. In order to turn this crude glycerin into technical or pharmaceutical grade product, a or refining purification process must take place.
The glycerin refinement process: technical and pharmaceutical grade glycerin
Crude glycerin is further processed in a distillation unit for obtaining distilled and refined glycerin. During this glycerin refinement process residual organic matter, water, salt, methanol, and odors are removed. The glycerine distillation plant is broadly divided into three main sections: the de-aeration, distillation and bleaching section:
• The de-aeration loop consists of a re-circulation pump and heat exchanger. The pump circulates the crude glycerine to the de-aeration vessel and feeds de-aerated crude glycerine to the distillation column;
• The distillation section is composed of various systems consisting of a vaporization system, stripping system, rectification system, pump around system and a scrubbing system;
• The bleaching section used activated carbon in order to remove colour and odour in the final stage of the purification. Distilled glycerine is cooled to bleaching temperature and then passed through the bleachers. The bleached glycerine is filtered and then finally cooled down to storage temperature.
Thanks to the activated carbon being used in the final purification process, a pure and odourless type of glycerin is distilled, ready for technical or even pharmaceutical applications:
• Technical grade glycerin is a refined, high-purity product that is water white with most of its contaminants completely removed. Technical grade glycerin contains no methanol, soaps, salts, and other foreign matter.
• Pharmaceutical grade glycerine, as per European Pharmacopeia, is a pharmaceutical grade glycerin suitable for food, personal care, cosmetics, pharmaceuticals, and other specialty applications.
8k from REER on 12-3-13:
Mission
Renew Energy Resources’ mission is to vertically integrate the renewable energy markets of biodiesel and ethanol. Vertical integration will include facility ownership as well as facility management, strategic feedstock agreements and off take contracts to large end users, value-added refinement of glycerin and other by-products, distribution, sales, marketing and financing of domestic and export sales contracts. The Company has completed preparation for the start of vertical integration in the biodiesel market, and anticipates newly integrated ethanol markets in the latter part of 2013/early 2014.
Value Added Processing of Biodiesel Co-Products
Glycerin is produced during the manufacturing of biodiesel. Glycerin sold as unrefined or crude can fetch as much as 0.28/lb, but usually brings less than that depending on the quality of the crude glycerin. Glycerin that is refined into either technical or pharmaceutical grade will increase the sale price substantially. Only a handful of plants in the US have the capacity to refine the glycerin to technical or pharmaceutical grade. Refining glycerin is technically challenging and requires additional capital, which the biodiesel plants lack.
DD on Glycerol:
Glycerol (or glycerine, glycerin) is a simple polyol (sugar alcohol) compound. It is a colorless, odorless, viscous liquid that is widely used in pharmaceutical formulations. Glycerol has three hydroxyl groups that are responsible for its solubility in water and its hygroscopic nature. The glycerol backbone is central to all lipids known as triglycerides. Glycerol is sweet-tasting and of low toxicity.
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