GeoBio Energy, Inc. recognizes that existing large petroleum companies with access to production, distribution and capital from extensive current profits have the advantage to be the dominant bio-fuels companies of the 21st Century. Their focus, vision, and culture limit how rapid they will expand into bio-fuels. But, they have begun for example BP in 2006 announced a joint venture to establish a large jatropha plantation as a feedstock source for future bio-fuels. The plantation is announced to cost hundreds of millions of dollars.
This advantage of having strong stable earnings from oil revenues as an integral part of a vertically integrated company providing a complete plant to solution addressing the core issues of the 21st century- clean, economical, renewable fuels and energy independence can not be over emphasized and is the reason GeoBio Energy, Inc.’s business is based on such a model.
The high cost of infrastructure such as land, water, energy, and labor; and competitive use of these resources for production of fuels, instead of for food stocks production, makes most if not all bio-fuels technology companies’ business plans at this point in time economically unfeasible. In reality, they either anticipate unique technology development, government subsidy, or long years of capital investment support before reaching profitability. GeoBio Energy, Inc.’s business strategy is economically viable and profitable beginning in the first full year of operations, and growing substantially as it develops.
The company is firmly built based upon profit producing industries in the current oil based economy – oil distribution and fuel production. The company’s economic model, similar to BP’s, utilizes a portion of their profits from these Divisions of the Company to help fund the bio-fuels feedstock/supply Division of the Company. Funding from these Divisions is planned to be significant, but not to the point of reducing the Company’s ability to develop and expand in distribution and production business arenas as well.
The Company will combine this funding with those produced by contracting and participating in joint ventures with established industries needing CO2 sequestration, regions and communities needing re-vegetation, and other symbiotic opportunities to develop with its technologies a large and growing bio-feedstock supply resource. This resource is planned to be by the end of five years 19,000 acres producing 77,000,000 gallons of feedstock oils.
The company will make better use of marginal lands, geo-thermal sources, and unproductive uses of water for the production of bio-fuel feedstock. As the feedstock supply Division’s resource grows, the Company will use it to fuel its production capabilities and drive its distribution cost efficiency strongly propelling these Divisions’ of the Company market share and profitability.
It is important to understand that while the Divisions of the Company are categorized separately as Oil Distribution, Fuels Production, and Feedstock and Supply for ease of description and discussion, financial projections and capital investment purposes; they function synergistically in their actual operations.
Company growth is based upon these successful, synergistic opportunities. Facilities will be for joint purposes supporting all of the company’s operations- distribution, production, contracting services for feedstock and supply development, etc. Labor costs will be shared and where possible cross training provided to allow maximum use of the company’s employees, while supporting employee morale through providing opportunities for diversity of work. Of course, specialization, and contracting for services will, also, be used when necessary and of economic utility.
Distribution
Cardlocks
These are components of Distribution Systems that provide direct fuel supplies to government, industry, commerce and agriculture. The Company’s card locks will have diverse fuel options including bio-fuels, traditional fuels and be available for such fuels as may be required to meet the needs and demands of customers, while encouraging adoption of bio-fuels by them. These are automated centers controlling access to the fuel, and monitoring, reporting and billing for its uses.
Storage Facilities
These facilities where staff work, fuels stored and distribution vehicles are serviced and fueled, will be state of the art with regards to energy efficiency and clean fuel handling or made so soon after acquisition.
Distribution Carriers
The distribution carrier fleet will be converted to bio-fuels (primarily bio-diesel), which helps meet new federal regulations for low-sulphur diesel, and extends fleet longevity with its natural solvent and lubricating qualities. Of course, all of the fleet will be painted “powered by bio-diesel” to help educate and market to customers the advantages and availability of bio-fuels from the Company.
However, this is more than just a roll-up strategy, as the production, and feedstock/supply divisions come on-line the margins of the Distribution Division and the Company as a whole greatly improves, but distribution is the key.
Source: GeoBio Energy, Inc.
Contact Info:
Phone: 206) 838-9715
Email: info@geobioenergy.com
Website: www.geobioenergy.com
