ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
Biochar Customer Returns
2
3
Co-Compost Cost:
4
5
Cost Types
$/ton% total
Assumptions
6
Biochar Cost
$39.46 93%
Biochar sold to compost producer at a cost of $650/ton.
7
Logistics
$2.50 6%
Biochar shipped in 150 miles (round trip) using walking floor trailers. A trailer can transport 17 tons of biochar.
8
Application to Windrows
$0.29 1%
2 hrs of operations and 2 hrs of maintenance required to mix biochar into a 2500 ton windrow.
9
Total$42.26 100%
10
11
Farmer IRR Sensitivities: Yield Increases, Biochar Input Price
12
13
Biochar Price ($/ton) as an Input Into Co-Compost
Biochar & Co-Compost Pricing
14
$ 250 $ 350 $ 450 $ 550 $ 650 $ 750 $ 850 $ 950 $ 1,050
1. on a mass basis, biochar is a small input into co-compost
15
0.0%-100%-100%-100%-100%-100%-100%-100%-100%
2. the modelled co-compost (20% biochar/80% compost)
16
2.5%5%-7%-16%-24%-100%-100%-100%-100%-100%
17
5.0%54%26%13%4%-2%-7%-12%-16%-20%volumemass
18
Yield 7.5%139%70%41%26%16%10%4%0%-4%
biochar
20%6%
19
Increase
10.0%247%138%82%53%36%26%18%13%8%
compost
80%94%
20
12.5%358%218%137%90%62%45%34%26%20%
21
15.0%470%300%201%137%96%70%53%41%32%
3. if C6 sells biochar for $650/ton to a compost producer,
22
17.5%581%384%266%189%137%100%76%59%47%
they might sell the final co-compost for ~$90/ton (delivered
23
20.0%693%467%333%244%181%136%104%81%64%
& applied)
24
25
Farmer Cash Flows ($ k's)
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Low Yield Increase
5.4%Yr 012345678910
41
Biochar Cost
($82)($84)($86)($87)($89)$0$0$0$0($98)$0
42
Revenues
$0$84$9$46$89$9$48$95$9$51$101
43
Cash Flow
($82)$0($77)($42)$0$9$48$95$9($47)$101
44
Cumm Cash Flow
$12 (82,405.04) (82,320.61) (159,533.94) (201,390.78) (201,301.19) (192,780.31) (144,397.67) (49,645.11) (41,124.23) (88,261.83) 12,290.34
45
IRR1%
46
47
Mid Yield Increase
10.0%Yr 012345678910
48
Biochar Cost
($82)($84)($86)($87)($89)$0$0$0$0($98)$0
49
Revenues
$0$156$16$84$165$16$90$175$16$95$186
50
Cash Flow
($82)$72($70)($3)$76$16$90$175$16($3)$186
51
Cumm Cash Flow
$472 (82,405.04) (10,647.87) (80,602.67) (83,621.85) (7,472.57) 8,306.83 97,904.31 273,372.02 289,151.42 285,751.34 471,959.07
52
IRR36%
53
54
High Case
14.6%Yr 012345678910
55
Biochar Cost
($82)($84)($86)($87)($89)$0$0$0$0($98)$0
56
Revenues
$0$227$23$123$241$23$131$256$23$139$272
57
Cash Flow
($82)$143($63)$36$152$23$131$256$23$40$272
58
Cumm Cash Flow
$932 (82,405.04) 61,024.87 (1,671.41) 34,147.08 186,356.04 209,393.97 340,206.29 596,389.15 619,427.07 659,764.51 931,627.80
59
IRR90%
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100