REDRED BIRCHBIRCH ENERGYENERGY..COMCOM

From the Farm to the Fuel Pump

“Cultivators of the earth are the most valuable citizens. They are the most vigorous, the most independent, the most virtuous and they are tied to our country and wedded to its liberty and interests by the most lasting bonds. I think our governments will remain virtuous for many centuries, so long as they are chiefly agricultural.” 1. No Engine Modifications 2. 1 unit of Energy in vs. 4.5 units of Energy out…Highest of any Alternative 3. Totally compatible with #2 Diesel Can be blended in any ratio 4. Premium Fuel, Higher Cetane, 55 5. 40% Better Fuel Efficiency with Diesel Engine 6. Diesel Drives our 7. Biodiesel is the only fuel commercially available today that meets all the federal government’s criteria of an “advanced biofuel.” 8. Multiple Feedstock Options…Soybeans, Canola, Sunflower, WVO, Animal Fat, Brown and Yellow 9. Glycerin is a by-product with BTU value Glycerin 1 gallon = 81,000 BTUs Propane 1 gallon = 91,000 BTUs 10. Canola Biodiesel contains 93% of the BTU Value of crude oil #2 Diesel #2 Diesel 1 gallon = 129,500 BTUs Canola Biodiesel 1 gallon = 118,296 BTUs……..B100 1 gallon = 127,259 BTUs……..B20 * 1 gallon ethanol = 77,000 BTUs (60%< energy) Renewable

Non-Renewable

Low Energy Density = Larger Amounts of Material Food Grade

Canola Oil

Canola Meal 1. The Farmer 2. The Oil Supplier Cargill, ADM 3. The Biodiesel Manufacturer 4. The Transporter 5. The Retailer Supply & Demand

Small is Beautiful

What’s it going to Cost?

Peak Oil Theory The Question has never been about Demand its always been about Supply at a comparable cost How do we get it to the customer?

All Run through the Heart of VA farmland Supply and Demand

Small is Beautiful, written by E.F. Schumacher According to Schumacher: For a large organization to work, it must behave like a related group of small organizations, there must be "smallness within our bigness“ which in turn, would empower the people more. What’s it going to Cost?

Peak Oil Theory Much Easier To Get Local Government Zoning Approvals Adequate Land Available To Support Bassett Project, not so with Large Plant Greater National Security when Bio-refineries are spread out Much Lower Up Front Cost Equity For Small Plants Can more easily be gained from local resources Enabling the facility to be more rooted in the community Larger proportion of the revenue generated by the facility staying in the local community thereby creating an economic multiplier effect “Leaky BucketEconomic Effect” Development ~Money that leaves the Community~

Petroleum 90% Big Box Retailers 86%

Lost Jobs and Tax Base How Do We Plug The Leaks?

‘Economic Multiplier Effect' is a method by which job opportunities and wealth are created by attracting new industry into an area

Economic Multiplier Effect is the fundamental driving force of our economy

“One person’s spending is another person’s income” A Simple Definition of Commerce Economic Multiplier Effect “One Dollar Spent on an Apple” Bigger is NOT Better

Diseconomies of Scale A large plant can strain local suppliers increasing feedstock cost out weighing any savings generated from reduced capital, labor and engineering costs. Energy Returned on Energy Invested (EROEI) Oil and Water Naturally Separate Rule of Thumb: Fewest Amount of Touches Wins Large Scale Plant In Central Virginia Would Require A Very Large Radius To Supply The Feed Stock

Not Practical - Not Feasible Smaller-Scale Plant radius would look more like this.

Decentralization, Re-localization, Community Resilience Creates Wealth within each Community Supply and Demand

Small is Beautiful

What’s it going to Cost?

Peak Oil Theory “Farming is the only business where you buy everything retail and sell everything wholesale.” Road to Profitability PROFITABILITY =

Producer must Compete with #2 Diesel price

Producer must get value out of All By-Products Producer must get feedstock at a reasonable cost - Buying WVO from Restaurants at .40/gallon Farmer must add-value to crop - Food Grade Oil is $8-12 per gallon

Vertical Integration - must control of every step of production and distribution Benefits for Farmers Supply and Demand

Small is Beautiful

What’s it going to Cost?

Peak Oil Theory U.S. “Peaked” in 1972 Before 1972, US was largest Exporter of Oil in the World

United States Production World Hubbert versus Actual Production Mexico is U.S. 2nd largest importer of petroleum

United States Energy Information Agency

"To talk about the future is useful only if it leads to action now." E.F. Schumacker 1. Developed at Virginia State University by Dr. Harbans Bhardwaj…..Highest Yields per acre “studies have shown that planting soybeans in rotation with canola garners a greater yield of soybeans” …Dr. Bhardwaj

2. 44% oil…..Highest oilseed crop that will grow in NC’s Climate. Walt Disney World uses only Canola Oil. The healthiest oil for human consumption.

3. Winter and Spring Crop…Plant in October, harvest in June….does not compete with food crops, ie….corn, soybeans. Winter Cover Crop

4. Uses Conventional Equipment….For the last 3 seasons Penn State has planted 300 acres with an airplane 5. High Meal Value….Virginia is a meal deficit state. 38% Protein

6.Canola Biodiesel...Has the lowest cold flow properties of all feedstocks The 5 E’s of Bi diesel Equipment Emissions Environment Energy Security Economics Equipment Bi diesel has been endorsed by most manufacturers Emissions

Biodiesel vs. #2 Diesel B100 B20 Total Unburned -67% -20% Hydrocarbons

Carbon Monoxide -48% -12%

Particulate Matter -47% -12%

NOx -10% -2% Environment

Bi diesel is less toxic than table salt & biodegrades as fast as sugar. Biodiesel is not a Petroleum Product !!!! Energy Security

“Red Birch Energy could almost be the poster child for the Obama administration as it is energy independent, sustainable, community-focused and inspirational.”

US Canola Digest January 2009

President Barack Obama Economics

Economic impact: The use of biodiesel in North Carolina can have positive benefits for the state economy. Currently, for every $1 spent buying diesel in North Carolina, large portion of the premium goes to crude oil with only $0.13 staying locally through state tax and local distributor income. If locally produced biodiesel was used, for every $1 spent, potentially 90 cents would stay in the local or state economy

Creates Jobs that can’t be outsourced!

• On Farm •Community colleges • Manufacturing Equipment •State and Federal • Bio-Refinery Construction regulatory agencies • Lab Technicians to ensure quality Grow Canola Bassett Facility requires 5000 acres On- Farm Storage Contracts/Growing agreements Grading Seed Moisture Foreign Material Visual Off-Road Usage A “CLOSED LOOP” SYSTEM

We grow it, We make it, We sell it The story of ROGERROGER BANNISTERBANNISTER Our Farms, Our Fuel Our Future….

Our lives begin to end the day we become silent about things that matter.

~Martin Luther King, Jr. ~ RedRed BirchBirch EnergyEnergy.com.com

Contact Information DeanDean PricePrice 336336--520520--26572657 [email protected]