BioForce Biodiesel Equipment

Unfinished plants – plants started in the past and unfinished because of various reasons; currently there are about 40 unfinished plants in USA[1

Un-started plants - plants that will appear in future because of constantly growing demand for biodiesel in USA;

Existing plants – plants that will upgrade equipment in the near future.

Our equipment targets medium sized plants with capacities 9-30 MMgy. We plan to take 30% of this market in 3 years. We believe the highest demand will be for 9[2] MMgy units which are upgradeable up to 30 MMgy. We’ll promote our products as the most effective and affordable solution to complete already started biodiesel project.

We plan to reach customers in this market segment plants directly by our in-house marketers; we believe to find mutual understanding from prospective customers as people already engaged in biodiesel business.

This market valuation depends on demand for biodiesel, therefore on forecast of how many new plants would be built in the near future.

[1] http://www.biodieselmagazine.com/plant-list.jsp?country=USA&view=construction
[2] Average capacity of US biodiesel plant is 7-9 MMgy.

The use of biodiesel in US has grown dramatically during the last few years and will reach 700 MMgy in 2015[1]. Existing production capacities (400 MMgy) are not capable to satisfy this demand, and they are located non-uniformly across the country[2] (see the map below), so we expect expansion into other states, like California, Nevada, Oregon. Expected growth[3] of rape and soybeans cultivation in Montana, southern Manitoba may also drive construction of new plants in those and nearby regions. To satisfy forecasted demand, new construction and expansion projects will add an estimated 300 million gallons of annual capacity and we plan 30% of new projects to be equipped with our technology.

Fig.2. Biodiesel production locations.

We plan to reach customers in this market segment through exclusive and non-excusive distributors across North America.

[1] CONTRIBUTION OF THE BIODIESEL INDUSTRY TO THE ECONOMY OF THE UNITED STATESby John M. Urbanchuk, LECG, LLC; PRESS RELEASE - BIODIESEL 2020: A GLOBAL MARKET SURVEY http://www.emerging-markets.com/biodiesel/press.htm

[2] Biodiesel Industry a national perspective ... http://agproducts.unl.edu/biodiesel-national_aug06.pdf
3] http://agron.scijournals.org/cgi/content/full/97/4/1252

Market for existing plants.

We expect 5% of 88 existing plants will upgrade equipment with our technology. We plan to reach customers in this market segment directly by our in-house marketers. See chapter below for estimation of market values.

Market valuation 2007-2009.

	Market segment	Valuation base	Market share value, equipment capacity, MMgy
1	Unfinished plants	30% of all plants with average capacity 9-30 MMgy (20 plants)	100
2	Un-started plants	30% of total new 300 MMgy capacity	100
3	Existing plants	5% of 88 current plants at average 9MMgy	50
	Total		250

USA Market