The BIO-OIL Refinery
About Us

SUPERIOR RAPID GROWTH POTENTIAL


Maximum Value from Primary Agricultural Products


High Value Foods 


STRONG GLOBAL FORCES DEMAND EXCEEDS SUPPLY 


Industry - Oils and Specialty Proteins

Technology - Highly scalable and patentable

Current Operations - Generating revenue now, solid gross margins, protein and patent commercialization underway

Business Model - Build own and operate multiple processing plants based on strategic supply and logistical criteria. Plant in a box. Pre-engineering completed.


Our Current Core Competency Products Generate High Margins


Canola  - Oil. The world market for vegetable oil exceeds 170 million tons.

- Meal. The world market for protein meals is more than 260 million tons.

The world market for these primary agricultural products is more than $200 billion.

Solution:

MAXIMIZING VALUE THROUGH OIL

CANOLA OIL INDUSTRY

Text Box: Figure 4: Production of Oilseed and Oilseed Meal in Canada According to the Canadian Canola Council, the Canadian oilseed processing industry currently consists of 13 crushing and refining/packaging plants, owned by five companies. Annual primary crushing capacity for all plants totals about 4.0 million tonnes of canola seed. Four million tonnes of canola seed produces approximately 1.6 million MT of canola oil and 2.4 MT of canola meal.[1]

Crude canola oil is used as cooking oil for human consumption, as feedstock for biodiesel, fuel additives and in the lubricants processing industry.

Human Consumption

U.S. is the major importer of canola oil from Canada importing more than 65% of Canada's exports. China, South Korea, Japan, Mexico, Hong Kong, Malaysia and Taiwan are the other buyers of Canadian canola oil. China is the biggest consumer of vegetable oils in the world and has larger market than the European Union. While accurate data is difficult to obtain, it is estimated that 100 to 150 million Chinese people have moved from rural areas to cities within the past decade. The increasing urbanization of China is supporting a demand for labor saving foods serviced by a growing retail and food processing sector.[2] From 2006/2007 where its consumption was 22.56 mm tons it had grown to 26.85 mm tons in 2009/2010, an increase of over 20% in three years. For 2010/2011 it is forecasted to consume 29.3 mm tons, an increase of over 9% against previous year's consumption. Soybean oil is the most consumed vegetable oil in China followed by palm oil, canola oil and peanut oil. The consumption share for soybean oil in 2009/2010 was around 39%, for palm oil it was 22%, rapeseed oil 21% and peanut oil at 8.30%. China imports almost one-third of its vegetable oil requirements to meet its ever growing demand. Canola oil from Canada makes 8.7% of the total vegetable oil imports of China.[3]

                                       Figure 3: Global Biodiesel Production by Feedstock[4]

Biodiesel Feedstock Market

Total global biodiesel production in 2008 was of the order of 13.6 billion litres whereas the total Canadian production in the same year was 126 million litres.[5] The development of the global biofuel industry has been largely fuelled by governments through mandates, targets and various mechanisms of support such as subsidies, mainly for energy security. Mitigating climate change is another major driver.

According to a recent report, the global biofuels market will achieve a value of $62 billion by 2015; this is equivalent to 26 billion gallons. Europe is currently the largest global biodiesel market and is expected to stay that way during the reporting period, representing 70% of global biodiesel production. The US market is growing at a rate of 12.8% (2010 figures), and is likely to increase its market share as it emerges from the recession.[6] By 2012, the EU is expected to produce over 7.3 billion litres of biodiesel from vegetable oils, with rapeseed continuing to be the foundation feedstock. The fastest growing alternative fuel in the US, production from vegetable oils is projected to exceed 2.7 billion litres by 2012.[7]

The current biofuels mandate from the Canadian federal government calls for 2 percent of diesel fuel to come from renewable sources by 2012. The Canola Council of Canada’s 2015 strategy document predicts that biodiesel demand will account for 2 million MT of canola domestically and another 500,000 MT going to biodiesel production in export markets. [8]

Fuel Additives Market

Quality multifunctional diesel fuel additives reduce many of the problems encountered with biodiesel blends, such as fuel system corrosion, water separation and increased fuel foaming. Injector fouling tests show that multifunctional additives can reduce the injector deposit levels generated when biofuel blends are used. Specialized flow improvers are also available to address the challenging low-temperature operability profile of many biodiesel fuels, while specific antioxidants can help to stabilize the fuel against the degradation that may lead to fuel system deposits and corrosion. Fuel additives are not only used in automotive but also marine and aviation transportation.

The fuel additive market in China exceeded $1.5 billion in 2007 with an expected growth rate of over 17% per year which will drive the market to over $17.6 billion by 2022.[9] A recent study by the Freedonia Industry Research Group analyzes the $1.1 billion US specialty fuel additives industry and suggests that the US demand will grow 2.9 % annually through 2012 and beyond.[10]

Lubricants

World lubricant demand will increase 1.6% per year to 40.5 million MT in 2012, which translates into a $48.8 billion world lubricant industry. Increases will be aided by the ongoing expansion of the world motor vehicle park, as well as by a rebound in manufacturing and other industrial activity from the global economic slowdown of 2008 and 2009. Advances will be the strongest in the developing Asian countries due to ongoing rapid industrialization as well as rising car ownership rates, particularly in China. These trends will also favour growth in the Africa/Mideast region and Latin America.[11]

There is an increasing demand for environmentally-compatible lubricants, particularly in areas where they can come into contact with water, food or people. Lubricants derived from vegetable oils such as canola offer biodegradability and low toxicity.       

                                                                                                            



[1] Source: Canola Council Canada, 2011

[2] Source: http://www.agr.gc.ca/pol/mad-dam/index_e.php?s1=pubs&s2=rmar&s3=php&page=rmar_02_05_2010-11-26; 2011

[3] Source: http://www.agricommodityprices.com/futures_prices.php?id=284; 2011

[4] Source: http://www.oecd.org/document/9/0,3746,en_36774715_36775671_45438665_1_1_1_1,00.html, 2011

[5] Source: Canadian Renewable Fuels Association, 2011

[6]Source: http://www.companiesandmarkets.com; 2011

[7] Source: Canola Council of Canada, 2010

[8] Source: http://www.biodieselmagazine.com/articles/2063/count-on-canola-for-your-biodiesel/, 2011

[9] Source: http://www.igp.co/index.htm, 2011

[10] Source: http://www.freedoniagroup.com/brochure/24xx/2440smwe.pdf, 2011


MAXIMIZING VALUE THROUGH PROTEINS


The world is eating much more protein food products than ever before. Japan is a case in point; as it’s economy expanded consumption of meat rose 360% from 1960 to 1990. Today China and Brazil lead growth in protein consumption in the developing world.

General Bio Energy holds a patent for VEGETABLE PROTEIN based fish food. Aquaculture is the fastest growing food production sector in the world, growing at an average compounded rate of 9% per annum since the early 1950's. As the largest countries in the world (China/India etc.) develop the demand for proteins significantly increases as their populations begin to eat and demand more protein. According to the International Feed Industry Federation, the global demand for protein is set to spiral to two and half times. The average resident of a developing country ate 11 kg of meat per in the mid 70's but by the mid 1990's they ate 23kg, and demand grows exponentially from there. Every 1% increase in income levels, corresponded to a 2% increase on spending on protein sources. This translates into a 100 billion dollar market for protein sources. CPOW is poised to capitalize to a large extent on this rapidly growing market.


Additionally our patented process and raw materials lend themselves well to the production of high quality pet foods, which in and of itself is a $20 billion market in North America alone.


We currently have demand for core competency products that we cannot fill because of our need for capital and equipment. We have letters of intent and orders more than triple our existing capacity and require urgent expansion of our operations.


We are currently forming a joint venture with them as well to build and expand existing crush facilities to accommodate their demand and growth in demand for oil alone.





General Bio Health

Using our proprietary oil extraction technology and knowledge of processes we are ideally poised to enter the lucrative market of nutraceuticals. Many of the primary agricultural products we process can easily be converted or processed into essential oils for health and nutritional supplements market, and the health and beauty markets (creams, lotions, scar treatments). We have only scratched the surface of the potential in this market place but to date we have developed the following under our SPIRIT OF HEALTH brand:


Camelina Oil Omega 3, 6, and vitamin E capsules 

Flax Oil Omega 3 capsules

Flax meal capsules

Gourmet Camelina Food Oil


Consumers are turning to supplements as a more affordable way to stay healthy. At the same time, older Americans are significantly more likely to integrate supplements into their lives and as the massive baby boomer population ages the supplement industry continues to widen its customer base. With those favourable trends, the market has progressed steadily from 5.5% annual growth in 2007, to 6.5% growth in 2008, to 7.5% growth in 2009, bringing US retail sales to $9.4 billion and nearly three times on worldwide basis; with strong cross over opportunity in Asian markets with reliance traditional medicine practises.


Of special interest is camelina oil. Camelina is an ancient crop but new to north America, it's vegetable based composition has omega 3, 6, and vitamin E in quantities that rival the highest salmon oil, without any detrimental effects associated such as containing mercury.  


These products are ready to for mainstream marketing and distribution. 



In addition marketing under Clean Power, we have developed a suite of environmental lubricants, and a diesel fuel conditioner. These products are non toxic and biodegradable, but they are also significant performance products. The diesel fuel conditioner for example has been tested by Intertek a highly reputable international testing and product evaluation firm and it was found to improve lubricity in diesel fuel by 30%, which translates into a 20% increase in fuel mileage economy, and can effectively double the life of diesel engine. Diesel fuel and gasoline consumption is $295 billion and the demand for fuel additives and supplements in North America alone exceeds $2 billion with strong growth forecast due to sluggish economy which sees fleets, and consumers maintain older equipment longer.

The Canola Industry:

Industry Overviews

Farming

Agriculture refers to cultivation (cultura) of the field (ager).

It has come to mean farming activities which comprise agriculture and agri-food, food processing, agrifuel, biomass green energy and marketing.

Agricultural production may fulfill domestic and / or international human and animal sustenance needs. The particular commodity produced is dependent upon its particular biogeography or ecozone Agricultural production of food via soil tillage is the main impetus for agriculture.

Farming in Canada

The story of farming in Canada mirrors our history. A generous immigration policy in the early decades of the 20th century and familiar geography attracted many foreigners to Canada's farms, on land grants or as hired labour.

Contemporary Canadian farmers have shared the expansionist spirit of our early settlers. The amount of Canada's cultivated land expanded 392% during the 20th century. By 2001, Canadians farmed 67.5 million hectares of land. Though this area amounts to only 7% of Canada's land mass, it is still three times the size of Great Britain. Each of Canada's many agricultural regions suits a particular range of crops.

Field and specialty crops

Field crops common to Canada are wheat, canola (rapeseed), barley, oats, flaxseed, rye, soybeans, grain corn and tame hay.

Specialty crops common to Canada are canary seed, lentils, sunflower seed, mustard seed and peas.

Mechanization on the farm

Farming in Canada is big business. Large farms are as complicated and costly as factories. Heavy investments in land, stock, buildings and equipment must be made. Many farm operators have graduated from agriscience programs at college or university, and spend a significant part of their time balancing the books and learning about pesticides, fertilizers and financing. New technologies also play a role in the management of today's farms, as farmers turn to satellites to maximize their production yields and to the Internet to research international markets and trade their commodities.

The rapid mechanization of agriculture has forever transformed the face of Canadian farming. In 1921, there were 22 agricultural workers for every tractor and combine. Today, there are more than twice as many tractors and combines as agricultural workers.(850,000 tractors and combines; 329,000 workers). Millions of Canadian workers made redundant by mechanization moved to the cities in pursuit of different lifestyles, and traditional family farms began to give way to increasingly automated 'megafarms.'

As a result, the productivity of Canadian agriculture has soared. Though the size of the average farm has grown almost threefold since the 1930s, technological advances are helping farmers produce enough to feed more than 11 times as many people today. In 1935, the average farm provided for 11 people; by 2001, 121 Canadians lived off one farm’s output. Today, it takes a mere 3% of Canada's population to feed the remaining 97%, with food left over for export to other parts of the world.

Canola Industry

"Canola" is a combination of two words, Canadian and oil.http://www.canolainfo.org/images/seed.jpg

From simple beginnings in the 1940's, Canada's canola industry overcame many challenges. Alternative markets were developed, nutritional studies were implemented, and extensive plant breeding to ensure plant health with substantially increase seed yield and seed oil content.

Canola's history goes back to the rapeseed plant, but canola and rapeseed are not the same. Canola and rapeseed have different chemical compositions therefore the names cannot be used interchangeably. In 1970's, Canadian plant breeders produced canola through traditional plant breeding techniques. The major differences are reduced levels of both glucosinolates (which contribute to the sharp taste in mustard and rapeseed) and licosenic and erucic acids (two fatty acids not essential for human growth) in Canola.

"Canola" then refers worldwide to varieties with two percent or less erucic acid in the oil and 30 micromoles per gram or less of the normally measured glucosinolates in the meal. Canada's canola services major markets and is internationally recognized as the industry forerunner in terms of quality. In Canada, rapeseed is now only grown under special contract and is used for industrial purposes.

The canola industry has 60,000 farmer decision-makers and a real value-added sector that processes canola seed into canola oil and meal. With 11 processing plants in five provinces and over 2,800 people directly employed in highly skilled and professional jobs, the canola industry contributes more than $6 billion annually to the Canadian economy.

http://www.canolainfo.org/images/singleflower.jpg  Canola oil is made from canola seed.

Canola oil is pressed from tiny canola seeds produced by beautiful yellow flowering plants of the Brassica family. Cabbages and cauliflower are also part of the same botanical family.  Canola was bred naturally from its parent rapeseed. 

Each canola plant grows anywhere from two feet to six feet tall and produces groups of yellow flowers which in turn produce seed pods about 2 inches long. Each pod turns brown as it ripens and contains twenty or more tiny round black or brownish yellow seeds. When crushed, each seed contains at least 40 percent oil up to 49 percent oil depending on the variety. The remainder of the seed is processed into canola meal, which is used as a high protein livestock feed.

Where is Canola Grown

Canola is grown primarily in regions of Western Canada, with some acreage being planted in Ontario and the Pacific Northwest, north central and south-eastern United States. In Canada, the ten-year average is 11.3 million acres harvested. Canada is the biggest single producer of canola.

When canola oil is compared to other oils in today's market, canola oil has the lowest level of saturated fat (seven per cent), it is relatively high in monounsaturated fat (61 per cent), and canola oil has a moderate level of polyunsaturated fat (22 per cent). Canola oil is high (61 per cent) in the monounsaturated fatty acid oleic acid. 

Canola oil received Generally Recognized As Safe (GRAS) status in the United States in 1985, which has opened the doors in the American marketplace for canola oil and canola oil products.

How is Canola Grown

There are two main types and many specialty of canola grown in Canada. The short growing season Polish type (Brassica rapa, a brown/yellow seed) and the longer season Argentine type (Brassica napus, a black seed). Fields are cultivated, seeded, fertilized, and herbicides/pesticides may be applied to control insects, weeds and diseases.

Seedlings emerge four to ten days after planting. From a taproot, bottom leaves form a rosette, which send up a flower stalk as the plant grows. The flowering stage lasts 14 to 21 days. The flowers of the Polish type canola are fertilized by the wind and the Argentine type is self-fertilized. Bees, visiting the flowers for nectar, pollinate the flowers by carrying pollen. Once the flowers are fertilized, the pods take 35 to 45 days to fill. The crop may be straight combined when the seed moisture is near 9% or in wet weather circumstances the field may be swathed when about one half of the seed pods have turned color from green to yellow or brown. The swathed crop dries on the ground for approximately ten days and is combined. 

Overview of Canada's Canola Industry

Canola is the world's only "Made in Canada" crop and it is often the nation's most valuable one, with annual exports of canola seed, oil and meal that are valued at over three billion dollars.

Canada's canola industry continues to innovate. It is estimated that within 10 years, one half of canola acres will be devoted to the production of special kinds of canola that have been developed to meet specific market needs. Traditional canola will occupy the other half of the acres.

As a food, with its low saturated fat level, excellent balance of polyunsaturated and monounsaturated fats, its versatility and light taste, canola oil has found an important place in the world's kitchens, food processing companies, restaurants and most recently biodiesel.

As a bio fuel feedstock, canola oil is a superior biodiesel feedstock compared to soybean oil feedstock, palm oil or animal fats and economically converted into biodiesel. 

The grower prefers to grow canola due to its oil content delivered per ton grown both in crop yield and meal volume. The percentage of oil content delivered from soybean seed averages 17-18% while canola seed delivers 40 - 49%. Canola requires substantially less crop impute and therefore less investment or energy expended by the grower.

From the position of the biodiesel refiner \ blender \ distributor the cetane number of soybean methyl ester “SME” is 46.2 and that of canola methyl ester “CME” it is 54.4.  The cloud point (cold weather gelling temperature which is a characteristic of both petroleum and biodiesel) of SME is higher at 2c than that of CME at -2c (similar to D2 diesel).  The iodine number (IA) of SME is 117-143 where the CME IA range allowed is 94-120 in European Union “EN14214” fuel grade specifications which are stricter than the USA “ASTM International D-6751” fuel grade specifications for use in diesel engines warranted by the manufacturer.

In summary, Canola Methyl Ester is a better choice beginning with the grower and the environment, translates to savings to the refiner and ensures a certified fuel grade for distribution.  The energy savings and energy delivery are obviously in favour of Canola Methyl Ester thus ensuring a strong position for the Canadian canola industry well into the future as the biodiesel market continues to develop worldwide.   

Market size

Canola is the world’s only “Made in Canada” crop and it is often the nation’s most valuable one, with annual exports of canola seed, oil and meal that are valued at over three billion dollars.

Canada’s canola industry adds over $11 billion in economic activity to the Canadian economy. More than 60,000 Canadian farmers grow canola - largely as full time farmers and in ‘family farm’ businesses. They depend on canola to generate between 1/3 and ½ of their revenues. Domestically, canola generates economic activity of $1.4 billion in Ontario and Quebec (primarily in the processing sector), and$7.5 billion in western Canada.  Canola exports bring over $2 billion back to our Canadian economy, and represent 75% of our annual production.

The most important export market for canola oil and meal is the United States, while the most important raw seed export destinations are Japan and Mexico.

* Canola oil's market share has grown in the U.S., from zero to between seven and eight per cent over the past 10 years.

* The United States is a regular market for more than 60 per cent of the canola meal produced in Canada.

* In Japan, more than 50 per cent of the vegetable oil consumed is produced from canola seed.

* Mexico is also a steady and growing customer, which depends on canola to meet 25 per cent of its consumers needs. Meanwhile, consumption of canola meal in Mexico has increased from five per cent just five years ago to over 10 per cent today. During this growth in market penetration, canola meal has displaced corn gluten, fishmeal and soybean meal.

* China is an intermittent customer, but, with its growth, has become an important focus of the industry's market development work.

Total utilization of canola seed has reached a level where a minimum 7.0 million tonnes are required annually.

Current Canola production


Canada: Canola Supply and Disposition 
December 12, 2007

Crop Year [a ]

2005-2006

2006-2007

2007-2008 [F ]


[a ] August - July crop year
[b ] Excludes imports of products
[c ] Excludes exports of oilseed products.
[d ] Total Domestic Use = Food and Industrial Use + Feed Waste & Dockage + Seed Use
[f ] Crop year average prices: Canola (No. 1 Canada, WCE, cash, I/S Vancouver)
[F ] forecast, Agriculture and Agri-Food Canada, December 12, 2007
Source: Statistics Canada, Cereals and Oilseeds Review Series, Cat. No. 22-007

Seeded Area (kha)

5,370

5,283

5,960

Harvested Area (kha)

5,175

5,238

5,911

Yield (t/ha)

1.83

1.72

1.48

Production (kt)

9,483

9,000

8,751

Imports [b ] (kt)

140

203

225

Total Supply (kt)

11,209

11,211

10,796

Exports [c ] (kt)

5,409

5,477

5,300

Food & Industrial Use (kt)

3,423

3,579

3,750

Feed, Waste, Dockage (kt)

330

290

351

Total Domestic Use [d ] (kt)

3,794

3,913

4,146

Carry-out Stocks (kt)

2,007

1,820

1,350

Average Price [f ] $/t

278 

370 

425-465

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