Investor Presentaiton
Disclosures
FUTURE ENERGY PARK (continued)
Ethanol
Future Energy Park intends to sell 100% of its ethanol production, consisting of over 300 million litres annually of cellulosic
equivalent ethanol, to two independent, highly creditworthy counterparties. The project has finalized a binding contract with a
large, international integrated energy company to sell 50% of its ethanol production, including the associated environmental
attributes, for eight years at merchant prices, less a marketing fee. The project has executed a non-binding term sheet and is
currently finalizing a definitive agreement for the sale of its remaining 50% of ethanol production to a multi-national commodity
trading company for an initial five-year term, mutually extendable for additional years thereafter. Under the agreement, the
ethanol produced will be sold at merchant prices with a combination of fixed and merchant pricing for the environmental
attributes associated with the ethanol. The ethanol is anticipated to be sold into North American markets and is expected to
generate revenue through both the sale of the underlying fuel and the sale of associated environmental attributes under various
low carbon and clean fuel standards across North America. The Company estimates, based on annual run-rate production of
over 300 million litres of cellulosic equivalent ethanol, independent third party forecasts, average ethanol revenue, including the
attributable environmental attributes, of $325 to $345 million annually over the first ten years of operation, resulting in
approximately $110 million annually in EBITDA, net of wheat supply costs disclosed above of $190 to $210 million per annum,
and the allocation of both direct and indirect operating expenses of approximately $25 million. Approximately 20% of revenue is
anticipated to be sold on a fixed price basis for the first five years of operations.
Distillers Grain
Future Energy Park is expected to produce up to 350,000 tonnes annually of wet distillers' grain which has been contracted for
sale to a local marketer of agricultural commodities for an initial 10-year period. The Company is currently finalizing the optimal
moisture content for the grain to garner the highest economic returns. Based on initial estimates, the Company expects to
receive $25 million in revenue annually for the sale of its wet distillers' grain based on management's estimate of the anticipated
merchant price based on the moisture content, which results in approximately $20 million in EBITDA annually for the sale of this
product after the allocation of both direct and indirect operating expenses of approximately $5 million per annum.
CI Score
The Cl score measures GHG emissions associated with the full lifecycle of producing distributing and consuming a
fuel. The Future Energy Park has several, unique features that result in a negative CI score as compared to other
bio-ethanol processes. Namely, the Future Energy Park utilizes waste wheat, as opposed to higher grades of
wheat or corn, as its feedstock. In addition, due to its integrated nature including both anerobic digesters to convert
the stillage to renewable natural gas, a process to convert the waste from this process into distillers' grain, and
cogeneration of heat and power for operations, as well as a carbon capture system result in a negative CI Score for
the Future Energy Park.
IOWA RNG
Based on a preliminary project cost of $100 million, including financing and soft costs, the Company expects leverage of
approximately 50%. Iowa RNG is similar in scope to GreenGas Colorado and is anticipated to deliver its RNG into U.S. LCFS
and RIN markets. Based on the three-year historical rolling average price ended September 30, 2023 of $108/MMBtu, expected
run-rate production of 270,000 MMBtu, and anticipated offtake, transportation charges and operating costs of $13.6 million, the
Company estimates $16 million in total EBITDA per annum on a gross basis.
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