Carbon Cultures converts forestry waste into biochar, a soil amendment. They have identified two potential markets - using biochar in agriculture and horticulture, and removing forestry slash. Their business model has evolved from focusing just on waste removal to selling biochar directly to users. Next steps include applying for grants, reforming as a corporation, and improving their technology to control emissions.
Our soil amendment converts forestry waste into biochar
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2. The Business Model Canvas - #1 Distribution C - Sequestration R.E.Credits Landowners Blanket sale/ Franchise Waste Removal Air Quality Improvement Landowners- Wood waste generators IP Know How Distributors Personal Assistance Direct Sale Sale of Biochar Biochar user Industrial Biochar user Retail Gardening Biochar user Agricultural Biochar users Energy Wholesale Retail Franchise Service For Waste Removal Low cost Reliable Char source Reduce Run Off Increased Soil Productivity with Lower inputs Crew Training Secure feedstock Marketing Relationships With Landowners Blanket Manufacturer Biochar Advocates People Field Operation Capital Fixed costs Low cost Supply
3. Carbon Cultures: Scalable technology can connect two markets New Markets – Biochar Agricultural and Horticultural Soil Amendment U.S. Agriculture $10 – 50 B/yr (≈ 60 Mt/yr @ >$160/t) WA State Ag $100 – 700 M/yr NW Organics/Hort ≈ $ 100 M/yr (@ $1000/t) U.S. Forestry Slash ≈ $1B/yr (≈ 200 Mt/yr @ $5/t) NW Slash ≈ $100M/yr Ready Partners ≈ $10M/yr Existing Market Disposal of Forestry Slash costs landowners
4. Carbon Cultures: Scalable technology can connect two markets New Markets – Biochar Agricultural and Horticultural Soil Amendment U.S. Forestry Slash ≈ $1B/yr (≈ 200 Mt/yr @ $5/t) NW Slash ≈ $100M/yr Ready Partners ≈ $10M/yr Existing Market Disposal of Forestry Slash costs landowners U.S. Agriculture $10 – 50 B/yr (≈ 60 Mt/yr @ >$160/t) WA State Ag $100 – 700 M/yr NW Organics/Hort ≈ $ 100 M/yr (@ $1000/t)
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6. Here is what we learned from… • Evidence for high value of biochar in nascent market • Minimum viable product needs emissions control • Education and research needed “ DNR will work to change the permitting required for technologies that can reduce emissions.” - David Grant, WA Department of Natural Resources • Minimum viable product needs emissions control
7. Here is what we learned from… “ Most of the biochar producers I have talked with are selling for $2,000/ton.” - Jim Archeluta, U.S. Forest Service • Minimum viable product needs emissions control • Evidence for high value of biochar in nascent market
8. Here is what we learned from… • Evidence for high value of biochar in nascent market • Minimum viable product needs emissions control • Education and research needed “ If Terry Lyngso suggests it, I might adopt it for my garden.” - Julie Day, Stanford Horticulturist “ People are ready to start thinking about the complex system of their soils. If biochar works, then great!” - Terry Lyngso, Lyngso Horticultural Materials • Minimum viable product needs emissions control • Evidence for high value of biochar in nascent market • Education and research needed
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10. Revenue & Cost Flows Carbon Cultures Contractors - logging - piling - disposal Operation Marketing Blanket & training Land Owner Contract for Slash disposal Blanket & training R&D Alone, this is not the basis of a venture backed business.
11. Revenue & Cost Flows Carbon Cultures Contractors - logging - piling - disposal Ag User Hort User Organic User Operation Marketing Blanket & training Land Owner Amendment Sales Contract for Slash disposal Biochar purchase Blanket & training Composter/ Blender Bulk purchase Retail purchase R&D
12. The Business Model Canvas - #1 Distribution C - Sequestration R.E.Credits Landowners Blanket sale/ Franchise Waste Removal Air Quality Improvement Landowners- Wood waste generators IP Know How Distributors Personal Assistance Direct Sale Sale of Biochar Biochar user Industrial Biochar user Retail Gardening Biochar user Agricultural Biochar users Energy Wholesale Retail Franchise Service For Waste Removal Low cost Reliable Char source Reduce Run Off Increased Soil Productivity with Lower inputs Crew Training Secure feedstock Marketing Relationships With Landowners Blanket Manufacturer Biochar Advocates People Field Operation Capital Fixed costs Low cost Supply
13. The Business Model Canvas - Evolution Distribution C - Sequestration R.E.Credits Landowners Blanket sale/ Franchise Waste Removal Air Quality Improvement Landowners- Wood waste generators IP Know How Distributors Personal Assistance Direct Sale Sale of Biochar Biochar user Industrial Biochar user Retail Gardening Biochar user Agricultural Biochar users Energy Wholesale Retail Franchise Service For Waste Removal Low cost Reliable Char source Reduce Run Off Increased Soil Productivity with Lower inputs Crew Training Secure feedstock Marketing Relationships With Landowners Blanket Manufacturer Biochar Advocates People Field Operation Capital Fixed costs Low cost Supply
14. The Business Model Canvas – Current Working Version Distribution Landowners Blanket sale/ Franchise Waste Removal Air Quality Improvement Landowners- Wood waste generators IP & Know How Distributors Personal Assistance Sale of Biochar Biochar user - Retail Gardening Landscape Designer Biochar user - Agricultural Wholesale Retail Franchise (long term option) Reduce Run Off Increased Soil Productivity with Lower inputs Crew Training Marketing Relationships With Landowners Blanket Manufacturer Biochar Advocates Education People Field Operation Capital Fixed costs WA DNR
15. Next steps for Carbon Cultures… - USDA SBIR submitted (May, 2012 decision) - Competing in B-School Jones Foundation Milestone Achievement Awards ($25k) . - Company reforming as C-Corp. (Davis Wright Tremaine retained) - Technology Alliance Innovation Showcase (January, 2012 in Seattle). - License Option under negotiation with UW - Emission control being added to technology
Hinweis der Redaktion
We sustainably convert renewable forestry wood waste into soil amendments -Typically, wood waste is generated & burned during forestry operations -We ’ve developed innovative way to convert this waste to a high-value soil amendment that sequesters carbon that would normally escape into the atmosphere.