Scottie Morrison's review of Bioenergy Production

Submitted By: Scottie Morrison · Tue, 10/26/2010 - 18:54

Business

Business Overview: 

BioPower from SierraWave Technologies is the new sustainability benchmark for low cost on demand on site reduction of biomass waste and production of renewable energy. SierraWave Technologies BioPower systems provide renewable energy while reducing Green House Gases; reducing methane emissions, reducing impacts to landfills, water and air; consuming waste on site and producing sterilized water and methane for powering generator sets, microturbines or fuel cells. SierraWave Technologies was founded by serial entrepreneurs with 2 decades of starting and operating technology based businesses within regulated industries. And SierraWave has filed system patents around proven DOE technology for use in specific market segments - producers of wet biomass waste with operations and locations suitable for the production and consumption of on site, on demand energy.

Project Type: 
Industry: 
Project Location: 
Reno, NV, 85923
United States
Who is the Customer?: 

Dairies, Utilities, Food Processors, Ag

What is the Customer Pain that you are solving?: 

Waste disposal costs: removal and disposal of waste biproducts. Continously increasing cost of electricity. Business caps costs for removal and energy production on-site.

Names of any current or recent customers: 

TBD

What is the Target Market?: 

Ongoing business concerns that generate wet biomass as a result of their operations.

How big is the Target Market in terms of Annual Sales?: 
$2B-$5B
Sales/Marketing Strategy: 

Show potential customers the means to cap their costs for energy and for waste disposal from their current operations. No cost of equipment to customers.

Provide use cases : 

Municipal waste water treatment facility has given SierraWave a letter of intent to provide 10 wet tons of sludge per day to evaluate system operation and potential for cost mitigation and energy production.

Competition: 

Anaerobic digesting systems.

One-line Pitch: 

BioPower from SierraWave Technologies takes biomass waste produced on site and produces energy to be used on site: capping disposal costs, reducing the production of GHCs and producing energy for use in operations.

Business Model: 

Power Purchase Agreements and Waste Offtake Agreements with customers. Customer does not pay for equipment. SierraWave installs, turns on and operates equipment on customer premises.

Product/Services Overview (what does it do): 

BioPower modules take wet biomass (dairy waste, waste from food production/packaging, municipal waste water treatment sludge) and feeds a continously processing gasification system. The reduction of waste (by 90+%) produces methane and steam. The heat/steam from the operation can be used by the system or used in other operations. The modules are installed on site of a processing plant and operated by SierraWave professionals. The customers, who do not pay for the equipment, contract for waste offtake and power purchase agreements with SierraWave.

Technology

What makes the technology/business unique and have a defendable competitive advantage?: 

Small footprint installation; onsite consumption of waste and production of energy; high efficiency - reduces waste by 90+%; fast processing (less than 1 day); continuous feed operations; on demand power or fuel for generator set, microturbine or fuel cell.

Describe in detail the technology used in the Project - Address the innovation in significant detail : 

Proven DOE technology incorporated into system patent filed by SierraWave Technologies. DOE tech is thermocatalytic conversion of wet biomass to methane and water.

What are the principles of the technology? : 

Thermocatalytic conversion of pre-processed waste to continously feed reactor chamber.

What, if anything, has been proven (and how far is this from a commercial scale)? : 

DOE has been working with the technology for 20 years and SierraWave patent incorporates DOE tech into commercially viable operating system.

What challenges/risk does the technology face for commercialization?: 

Technology risk is low; DOE has worked on engineering and proving gasification technology for decades; SierraWave system uses commercially available parts and modules for producing energy from methane.

Team

NameTitle
Paul DonahueCEO
Mark DonahueCOO
Jeff DankworthOther
Current Investors: 
Founders

Financials

Amount Sought: 
$3,000,000
If raising funds, what shall the funds be used for?: 

To build and operate biomass to electricity systems including:

Prototype development, minimum viable product introduction to potential market, system engineering, organizational development, legal and administrative support, customer development, sales and marketing, production of 1st 5 units for placement at customer locations; follow-on system development, deployment and operation.

Funding Stage: 
Early/Seed
Funding History: 
Funding Round Funding TypeFunding dateFunding Source/ InvestorsAmountPre-Money valuation
Seed/BootstrapDebt00
ProjectAsset-based00
Use of Proceeds
Are there other things you suggest the company use these funds for in order to maximize chances for success?: 

The funds mentioned seemed ultra low to do what you have listed. I would suggest raising the amount requested for funding. This also seems to be an IP play. Has all IP been secured?

Current Investors
Would you like to suggest any investors that you think the entrepreneur should consider getting in touch with for this project?: 

Northbridge Venture partners might like this: http://nbvp.northbridge.com/

Project Location
Do you see this product being used in your city or town?: 
Yes
Customer
If the product is one used by companies, do you see your company or organization using this product?: 
Yes
If the product is one used by individual consumers, would this be something you would buy and use yourself? : 
No
Customer Pain
Do you think this project addresses the pain in the market and customer needs?: 
Yes
Target Market Size
What do you think of this assessment?: 
Sounds Right
Use Cases
Are there additional uses you can suggest?: 

I think this is a good start

Amount Sought
Given the plans of the company, what do you think of this Amount?: 
Low
Any other comments, suggestions or ideas for this company?: 

Sound slike a great project. It seems like you are locking in somemajor partners. I would make sure that your IP is locked in securely and have a great legal team. Also, after that, as you would know, it would just come down to execution and securing partnerships with "suppliers".

Summary:

Can you please list the following here -

1. All patent numbers
2. Any demonstration videos or diagrams

I shall be interested in speaking with you as you move along the process.

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