The Role of the Entrepreneur. September

Transcription

1 The Role of the Entrepreneur September

2 Forsite s EIP Platform With ReVenture, Forsite acquired a highly specialized skillset to extract substantial value from similar sites. We are creating an investment fund to expand this platform. Re-branding sites through targeted PR strategy Navigating public policy Relationships with regulators Environmental Liability Risk Transfer Maximizing/utilizing tax and economic incentives Extracting hidden value Trends supporting future EIPs Multiple State and Federal agencies are focused on promoting clean energy project development on brownfield sites. Sarbanes Oxley creates incentive for companies to get these sites off their balance sheets. Manufacturing is returning stateside Corporate Trends in sustainability and the ecological economy Corporations are approaching Forsite with portfolios of similar sites. [No shortage of opportunities] 2 2

3 What We Look For in a Potential EIP Site 500,000+ SF on at least 500 acres Existing power and/or steam infrastructure Active air permits Waste water treatment with active permits Heavy electrical infrastructure including Rail with dedicated spur rail car storage Deep water ports Water rights (intake, withdrawal, discharge) States that have a RPS are a plus Companies who want these sites off their books (risk transfer) A community that wants to see the site repurposed 3 3

4 Investment Criteria Money Good Day 1 Sources of value identified during due diligence High degree of confidence that value extraction exceeds initial capital needs Focus on high return on investment 3-Tiers of Value Creation 4 4

5 Tier 1 Value Creation IMMEDIATE (UPON CLOSING TO 1 YEAR) All EIP transactions must be cash positive Day 1 or have a clear path towards significant value creation within 12 months Excess Land or Building Sale Metal Recovery Demolition Metal Commodity Play Selective Demo Monetize Existing Permits NOx, SOx Credits Nutrient Trading (Phosphorus & Nitrogen) Environmental Liability Risk Transfer Paid to Take Title Risk Arbitrage Partial Lease Back to Seller Equipment Sales Manufacturing Process Third Party Steam Contract Existing Boilers Provide Steam to Neighboring user 5 5

6 Tier 2 Value Creation REPOSITION EXISTING INFRASTRUCTURE (1 3 YEARS) Existing Buildings Excess Land Waste Water Modify Existing Air Permit Lease Sale Contribute space for equity in start ups Sale Lease Backs Rail Infrastructure Transloading Rail Car Parking Freight Terminal Short Line Rail Roads. Sell or Operate Sell Land Biomass & Energy Crop Growth Timber Sales Conservation Easements Major Tax Benefit (Risky) Possible Carbon Credits Third Party Waste Treating Municipal Waste Treatment Public Private Partnerships (P3s) Existing Hydro Re-permit Water Rights Fast Track for New Project Existing Power Generation Convert to Renewable Fuel Third Party Electric Sales Sell excess equipment Existing Steam Boilers Tank Infrastructure Sell Intake Permits Sell Water (Riparian Rights) Third Party Steam Sales CHP Project Development Liquid Storage including fuel chemicals & aquarius waste Deep Water Ports Sell or Lease 6 6

7 Tier 3 Value Creation INCENTIVES, TAX CREDITS, GRANTS, MITIGATION BANKS AND ENVIRONMETAL ATTRIBUTES (1 5 YEARS) Mitigation Banks Wetlands Mitigation Banks Stream Restoration Credits Habitat Restoration Credits Tree Save Mitigation Banks Pollution Mitigation Banks (NOx, SOx Credits) Nutrient Banks (Phosphorus & Nitrogen) Existing WWTP s Tax Credits Brownfield New Market Historic Preservation State/Local Job Creation Investment Incentives Accelerated Depreciation Renewable Energy Credits (RECS) Renewable Energy Credits (RECS) Investment Tax Credits (ITC) Thermal REC s Grants USDA DOE EPA Various Environmental Attributes Carbon Offset Credits? Sustainability Index? 7 7

8 Entrepreneurs, therefore by the very nature of introducing new ideas, capabilities, and opportunities, are opposed in their endeavors by everyone whose security is tied to things staying the same. -Dan Sullivan 8 8