Alcoa Green Technologies, LLC - PowerPoint Presentation

Slide1

Alcoa Green Technologies, LLC

Private Forest Presentation

Remediate, Redistribute, Reuse & Regenerate A Model of ResponsibilitySlide2

Alcoa Green Technologies, LLC (AGT)

AGT is a company formed to provide technologies that are proprietary to its partners.

These products are designed to either reclaim, regenerate, reuse and/or remediate current environmental problems.Governmental Agencies are becoming more invovled in regulating issue pertaining to contamination of water, soils, water, air and surrounding eco/biospheres.AGT believes one of the easiest solutions to long term fixes to many of the problems is through reforestation.Slide3

Reforestation – Renewable/100 yr Forests

This is typically accomplished through large gov’t projects funded and planted on public or controlled ground.

AGT believes private forests offer a unique environmental benefit while providing significant profit incentives.AGT is following two different models for forestation:Large utility driven projects forged on carbon sequestration and power generation.Small tract projects focused on revenue generation through wood sales.AGT manages both models through proprietarily owned tree technology and growth additives during the lifecycle.Slide4

Utility Driven Forests – 1,000,000 acres +

Worldwide Carbon Emissions of 50,000 power plants is

in excess of 10 billion tons per year. The cost to place aiming equipment on those plants Would be cost prohibitive. In the U.S. 2.8 Billion tons is generated and to reduce 20% required under Waxman Markey Act by 2016, would bankrupt the industry over the next 30 years.

20% of CO2 reduction can be accomplished through

o

ffsets, or the planting of renewable forests. It is believed

more of the remediation of CO2 will come through new forest concepts and natural capture

Of identified contaminants.

The proprietary forests are designed to offer unique,

v

aried species that accomplish different end uses:

1) Carbon Tree – capture between 800 -2000 lbs of

CO2/yr and generates over 300lbs of O2.

2) Lumber Tree – Consumes less carbon but grows

a desirable wood product that is high demand.

3) Green Tree – used for windbreaks, soils

remediation, pest management & dust reduction.Slide5

AGT Private Forest Model

In Japan a Kiri Tree is planted at the birth of a daughter to provide a dowry to be cut and sold at their 18

th birthday. The young woman then has enough money to allow he money to provide for her.

Ten year old tree

Sura

& Teak trees are grown in Costa Rica for the

p

urpose of transferring wealth from generation to

g

eneration without taxation at death. The

Sura

tree

c

an grow to 150 feet

Sura

Tree

Teak Tree

Kiri Tree

Tree Management ConceptsSlide6

AGT Private Forest Model Fast Growing Trees

AGT Proprietary Tree – Accelerated Growth Characteristic

3 month tree

6 month tree

1 year tree

2 year old tree

3 year old tree Slide7

AGT Lumber Tree –Hardwood

4 year old tree – 15 Inch diameter

Ten year old tree

AGT trees offer these genetics in the trees seen but are

changed

for better performance. The

proprietary marking

systemwill

allow us to grow trees 60% faster, hardier and more weather tolerant. CO2 sequestration on the tree to the left is 860 lbs per year, with our tree moving closer to 2000 lbs of capture. The Lumber tree is designed to grow straight and will provide significant revenues beginning in year five of the forest lifecycle.

These trees will not propagate, are low water use, provides wind/dust abatement, heat reduction, and additional revenue options through intercropping and by-products sales. Slide8

Farming Model of Forests

Intercropping allows for farming models to be utilized while the forests mature.

Flower for Honey Production

Corn

Field Crops

Bio Mass

Hay Crops for animal feedsSlide9

AGT Forest Management Partnerships

AGT enters into a Joint Venture with the landowner through a long-term lease that allows the group to plant its trees on the JV’s ground. The trees are provided to the JV and the cost for tree planting are provided by AGT or other. The trees are managed through the JV by AGT and will provide the following services:

1) 300 trees maximum per acre, drip irrigation system, water management systems, harvesting and marketing expertise for all products. 2) Tree layout and Intercropping to be decided by JV. 3) Rent will be defined, accrued and paid to landowners, on pro rata basis when combined with the costs provided by AGT. 4) Agricultural bi-products that are part of AGT field expertise.

Revenue Generation –

The trees are the basis for the forest farming model and will generate between $800 to $1200 per tree beginning after year five. Revenues will vary based on tree spacing (12’ to 24’ combinations) depending on the JV’s end goals. Trees will average about 2 ½ tons by year 5 growing to over 4 tons by year 8.

A

ssuming 300 trees per acre, and harvesting 15% of trees per year or 45 trees (year 5) =

$30,000/acre/year.

This does not include revenue evaluation on intercropping production.Slide10

AGT TREE SELECTION/SPACING

The trees need to be planted based upon the end use of the forest. 300 trees are used for Biomass uses. The best spacing for tree growth is a minimum of 18 feet for row spacing. Inter-tree spacing isn’t as critical. AGT believes the preferred spacing is 12’X18’ and would provide revenues at a more realistic number of 202 trees per acre, with 15% harvested after year 5. (30 trees X $800 =

$24,000 /year/acre) If spacing were 18 X 20 = 121/acre (18 trees X $800 =$14,400/year/acre

)

The trees grow better with larger spacing intervals. When you open the spacing the trees will grow bigger and the mass will expand faster. The forest provides bigger tree mass the longer the trees stay in the ground. Once cut, the stump provides the future size of the subsequent trees.Slide11

Why have AGT as a partner?

The forest model works because of the following benefits provided by AGT defined expertise:

1) Proprietary Tree – rapid growth 45’ tall/ 2 ½ tons + in mass 2) Humacleanse- biological soils amendment to accelerate growth. 3) End Product Marketing – Contract purchasing end use product. 4) Green Tag Marketing – CO2 carbon capture per tree when cut.

5) Intercropping Expertise

6) Capital Provider for the JV development model.

7) Land Management and Crop Overview.Slide12

Conclusion

Revenues offered by forest model could generate in excess of $5000 per acre over a twenty year average.The trees offer benefits of Carbon Sequestration, Oxygen Generation, Soil Remediation/Enhancement.

Water availability determines intercropping options.Capital provided for turnkey operation.Joint Venture is defined on a case by case basis.AGT is looking for multiple locations throughout the world.