A case study on Biodieseal and its opportunity

3. Choosing Hong Kong as an Initial Market “ Reducing Emissions from Vehicles Motor vehicles, especially diesel vehicles, are the main causes of high concentrations of respirable suspended particulates (RSPs) and nitrogen oxides (NOx) at street level in Hong Kong.“ Environmental Protection Department, HK City Improvement in Air Quality Government Attention Bus Trip Per Capita Cost Increase Bearable America i.e.Los Angles Yes Y 0.13 Y Hong Kong Yes Y 0.71 Y Rio Marginal N 1 N

4. Government Gains $273 Million Environment Social Improvement Financial Cost Direct Effect Up to 50% reduction in Emissions Provides jobs through growing of Cash Crop Increased Cost of Subsidy for transport companies Benefits Reduction in Health Cost Better Quality of Life for both Crop growers and users of Biodiesel 20 -30 %Higher Cost of Transportation Energy Availability in Rural Area Bottom Line + 640 Million in Health Care Savings + 2 Million in extra Taxes -567 Million in Subsidies

5. Bowling Alley Market Penetration Main Proponent Government Bus Trains Cars Ships Industrial Generators Pure Biodiesel Mixed Biodiesel Distribution Network Narrow Wide spread Green Premium High Low TAM = $1.89 Trillion

7. Investment Required Initial Funding = $3.1 MM $50MM Funding for Biodiesel Processing Plant

9. Reality test Risk Mitigation Contingency Severity Probability Technological - Other forms of green fuel become cost competitive to Biodiesel Partner with other biodiesel companies to share research Transition Business model to that of new technology. i.e. instead of planting feedstock, plant solar panels High Low Market -Government unwilling to provide green fuel subsidy Educate consumers on importance of green fuel so they are willing to pay the premium Go for lower mix of biodiesel to reduce wholesale price so that it is near that of petroleum High Med Team -unable to recruit farmers due to lack of local knowledge Recruit local farmers to be advocates. Work with agriculture departments Start up own Farms Med Med Financial -unable to cover huge startup cost Get more support from large organizations Start small & Scale. Introduce small capacity biodiesel processing plants that can be used at home Med Low