Turning Waste into Green Energy

Transcription

1 CNSX: XZX Corporate Presentation November 2013 Turning Waste into Green Energy 1

2 Forward Looking Information Statement The contents of this presentation contain statements that may constitute forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements may include financial and other projections, as well as statements regarding future plans, objectives or economic performance, or the assumptions underlying any of the foregoing. Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements and accordingly, should not be read as guarantees of future performance or results. Actual results, performance or achievement could differ materially from those expressed in, or implied by, any forward-looking statements made and, accordingly, investors should not place undue reliance on any such forward-looking statements. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on Canada Renewable Bioenergy s business. 2

3 Outline Biomass Industry Overview Company Overview Financial Information 3

4 Why invest in Canada Renewable Bioenergy Proven revenue growth and strong balance sheet. Strong growth and demand in both Chinese and Canadian recycling markets, the Company accesses to rich raw material supply. The Chinese and Canadian government supports recycling industry. The Company possesses Pyrolysis IP in China and Canada. Sound business model, selling pyrolysis products, developing and commercializing the Pyrolysis IP. Proven energy industry expertise and management. 4

5 Industry Overview 5

6 Biomass Industry Overview 30 mn kw.h China s biomass power generation is projected to be 15 million Kw.h in 2015 and 30 million in 2020, compared to 5.5 million in years Canada s forests contain the equivalent of about 69 years of the nation s consumption of fossil fuels at current levels 6

7 China Promotes Biomass Power Generation In China, Power generation by agriculture and forestry biomass forecasted to increase 500% from 2010 to China Biomass Power Generation Blueprint (2012, in 10 thousand Kw) 5000 By Agriculture Biomass and Forestry By Biogass By Garbage Biogass Power in Total Generation Source: China s National Development and Reform Commission: National Guideline on Medium-and Long-Term Program for Renewable Energy (2011) 7

8 Rich Raw Materials for Pyrolysis - China Large amount of agriculture straw has not been properly utilized, resulting in favorable government policy, including tax incentive and subsidies, to pyrolysis processing Utilization of Agriculture Straw in China (2012) 8

9 Company Overview 9

10 Canada Renewable Bioenergy Summary Symbol CNSX: XZX Location Business Zaozhuang, Shandong, China Vancouver, Canada Develop and commercialize our Pyrolysis IP from the production of biomass raw materials to produce pyrolysis products and by licensing our Pyrolysis IP to third parties Outstanding Shares 40,603,792 Percentage owned by management and directors 75.0% 10

11 Company History Over 130 Years The Company s former parent company is Zaozhuang Xin Zhong Xing Industrial Company Ltd (XZX). ZXZ has 22 divisions and is involved in a variety of businesses, including machinery manufacturing, coal mining, forestry, processing and importing, real estate and clothing. XZX s predecessor was Chunghsing Coal Mining Co. Since 1878 when it was founded, Chunghsing had been one of the top three coal mining companies in China until the mid-20 th century. Since

12 Reverse Takeover and Financing January 31, 2012 Moneda Resources Co. Ltd -- Reverse takeover transaction by Canada Resurgence New Energy Development Co. Ltd. --Consolidation of outstanding shares: to ,603,792 common shares outstanding -- No options, warrants, or other convertible securities -- Name changed to Canada Renewable Bioenergy Corporation $500,000 concurrent non-brokered private placement 12

13 Develop and Commercialize Pyrolysis IP Electricity Wood Pyrolysis Wood Vinegar Foliar spray; insecticide mixed with hot pepper; enhancer for compost-making; soil conditioner; feed supplement Biochar Enhances soil and protects water quality Wood Waste Creosote Protects wood; to be proceeded into diesel, gasoline and wood asphalt 13

14 Pyrolysis Process Raw Material = Wood + Wood Waste Raw Material Collection Raw Material Storage Drying Grinding Forming Pyrolysis Unit Energy Generator Electricity Biochar Storage Device Purification Unit End Products Wood Vinegar Transmission and Distribution Unit Creosote 14

15 Rich Raw Materials Supply The flagship facilities of the Company are located at the centre of the richest raw materials supply in China China Biomass distribution (2013) Zhaozuang, Shandong, China 15

16 Capacity of China Facility - Zaozhuang Raw materials - Biomass gas - Biochar - Wood vinegar - Creosote 660,000 tonnes m 3 181,500 tonnes 148,500 tonnes 26,400 tonnes 16

17 Strong Fundamentals Drive Industry Growth Drivers Constant demand for Pyrolysis products The Company possesses Pyrolysis IP Chinese and Canadian government promotes recycling growth Long growth runway for XZX products and pyrolysis IP Rich and cheap raw materials supply 17

18 Clear Growth Strategy Continue to grow core pyrolysis business in China - take advantage of favorable government policy International expansion - target Asia and North America Leverage customers and distribution channels - new products and new end-markets Execute business model - products and Pyrolysis IP 18

19 Business Plan Produce and sell renewable biobased products and clean energy China Facility 660,000 tones of biomass per year Sell Pyrolysis IP licenses in Asia Produce and sell renewable biobased products and clean energy Terrace Plant Sell Pyrolysis IP licenses in North America Produce and sell renewable biobased products and clean energy 3 Pyrolysis Plants Sell Pyrolysis IP licenses worldwide 19

20 Terrace Plant, British Columbia, Canada One production line Capacity to process up to 660,000 tonnes of raw materials per year Planned to be built in

21 Management & Directors Xuedian Liu, Chairman, CEO President, Director Xinlin Huang, CFO, Corporate Secretory Robert Mukasa, COO Ling Jin, Deputy Manager, Director Ian Mallmann, Director Jiaming Zhu, Director Paul Zhang, Director Background 20 years of experience in coal mining and energy administration and management, MBA Over 10 years of experience as a senior-level executive in Canadian private and public companies MA of chemical engineering and technology, expertise in bio-oil and heavy oil Over 28 years of experience in financial and accounting roles in coal mining industry, MBA 14 years of experience as a senior-level executive, principal of Chagford Square Capital Inc Over 18 years of experience in financial and accounting roles in coal mining industry Principal of Pubco Consulting Group, extensive experience in accounting roles 21

22 Financing 22

23 Project Highlights Leveraging proprietary Pyrolysis IP and the abundant forestry residuals in British Columbia and build a pyrolysis process facility in Terrace, BC. 23

24 Financial Information 24

25 Income Statement The Company has demonstrated proven profitability In Canadian Dollars (Year ended March 31) Source: Canada Renewable Bioenergy Corporation ( 2013) Revenue 16,426,161 15,878,438 Gross Profit 4,488,326 4,069,863 Gross Profit Percentage 27.32% 26.00% Net Income 2,096, ,163 Diluted EPS Weighted average number of common shares outstanding 40,603,792 33,345,585 25

26 Thank You Tel: Suite West Hastings Street Vancouver, BC V6E 3X2 Tel: Website: 26