MARKET

biodiesel-stationS2In terms of marketing opportunities, there are more than 160 biodiesel producers competing for more than 1.8 billion gallons of raw material potential in a supply-short world. Our customers are trying to counter the effect of increasing prices, environmental pressure, societal pressure, and under-utilized, capital-intensive infrastructure. This increase in demand, coupled with increasing prices of petroleum diesel creates a situation that results in upward pricing trends for the raw materials we produce, agriculture for food and biofuels in general, biodiesel products specifically.

In our business plan, Global Biofuel Solutions Inc. (GBS) addresses the production of biodiesel raw materials in our Algae Plantations. These operations can generally be classified as an agricultural process where we grow lipid-rich micro-algae. From our plantations, we are able to deliver high-quality algae oil for the production of biodiesel. Additionally, the nutrient required for the production of this high-value raw material is derived from nuisance waste stream materials that are expensive to manage and environmentally hazardous when mismanaged.

Using our vertically integrated model alleviates the unpredictability of raw material supply, product quality, transportation complications, and third party predatory pricing. GBS begins our project near the source of nutrient necessary to nourish our algae plantation. Additionally, we will locate on real estate that will have no adverse affect on agricultural production. GBS will seek out property that has no agricultural value. An example would be using land that a dairy farm rented for the disposal of manure, now used to grow algae and relieving the dairy operation of that expense. Similarly, wastewater treatment plants frequently lease real estate dedicated to disposal of process sludge. This practice is called ‘controlled nutrient management.’ The cost of this can be eliminated and the potentially harmful sludge can be beneficially utilized in the GBS process. The oil from our algae production, with known quality and predictable availability, will be the feedstock for the incredible number of desperate biodiesel producers. Ultimately, GBS will extend our business by developing the distribution infrastructure that this fledgling industry clearly lacks.