Grace Renshaw

Las Vegas, NV (USA)
Role(s):
Founder/Owner/Principal

C&G Alliance Group, LLC

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Location: Las Vegas
Industry: Energy
Year Founded: 2007
Number Employees: 1-10 people
Description: This plan is a road map for building Biodiesel Production Company (or the “Company”) to deliver 64,800,000 liters or 17,118.348.9 gallons in the 5 year period from 2010 to 2014, and generate free pretax cash flow of $5,831,463 during that period. This Company will own 6 of about 200+ production units in Sunx Energy’s distributed network serving North America. This is phase one of the build-out. To start-up this Company, we are seeking a 77 month loan of $360,000, paying 15% to the lender and returning principal by year-end 2014. The Company will earn a 1279% pre-tax internal rate of return during this same period, and there is significant upside potential not yet reflected in these projections. A number of positive and accelerating factors are driving growth of demand for biodiesel. It is a clean fuel that can help with climate issues by replacing high carbon fuels. There is growing consensus that importing oil at current levels is a colossal economic and security issue. States are competing through grants and incentives for alternative energy businesses in order to create local jobs and help meet local climate goals. There are also operating benefits of biodiesel for vehicles and the fact that biodiesel moves through an already established distribution chain also supports continued and accelerated market demand. This is an attractive time to enter this market because supplies are significantly below demand. In 2006, it is estimated that demand outstripped supply by 200 million gallons. The market was about 450 million gallons in 2007, and this is forecasted to grow to 36 billion gallons by 2022. Supporting burgeoning demand is the pressure to increase blends from a low B2 (2% blend) to B20 (the current target at the Federal level and for many states) and all the way up to B100 – pure biodiesel. Producing biodiesel is well understood and has been around as long as diesel. Another support of market growth is the fact that global engine manufacturers like Cummins Engine have certified that their products built after 2002 can use B20 biodiesel and keep warranties in tact. The key issues gating market development are the price of feedstock and the reliability of its sources. In this age of increasing environmental awareness, a certified sustainable source – so virgin rainforests are not being destroyed to grow palm oil – is another key concern. Biodiesel will continue to gain in the market place as long as a number of key factors are in place: • The right production technology and business model that supports a low cost structure • A retail price that is competitive with petroleum based diesel, and • Dependable availability