Net Zero Circular Economy
Rainforest Energy Corp.
26, 228 Theodore Place NW
Calgary, Alberta
Canada, T2K 5S1
This information on this web site or any of its links shall not be considered as an offering of any kind by Rainforest Energy Corp. ("Rainforest Energy"). Corporate and other information provided herein contains forward-looking statements and proforma calculations. The reader is cautioned that the assumptions used in the preparation of such information and calculations, which are considered reasonable by Rainforest Energy at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast and prior periods will vary from the information provided herein and the variations may be material. There is no representation by Rainforest Energy that actual results achieved during the forecast and prior periods will be the same in whole or in part as those projected. In addition, the technologies described herein have risk and future results may differ materially from those anticipated.
Furthermore, nothing in this web site shall be construed in any manner whatsoever as constituting an offering of securities or other investments. Any discussions with potential investors, if they do occur, will be held under the appropriate professional guidance and only with those individuals or entities that are classified as "exempt investors" under all applicable securities laws and regulations.
Conventional greentech such as wind, solar, and electric vehicles reduce GHG emissions but still have a positive carbon intensity on a full life cycle basis. Carbon negative solutions must therefore be included to achieve an overall net zero GHG outcome. The negative-GHG fuel to be produced by Rainforest Energy Corp. ("RFEC") from waste biomass and methane is a proven alternative that also comes at an affordable price. A Net Zero outcome does not have to sacrifice prosperity.
Abundant waste biomass exists from agriculture, forestry, and municipal waste, the decay or burning of which contribute significantly to GHG emissions. The barriers to full use of this non-food resource are supply cost and air emissions from incineration. RFEC has solved these challenges, thereby unlocking the large scale-up potential for a +$10 billion new industry.
The main product of RFEC is low-GHG, high octane gasoline. An LOI has been signed with a super-major who wishes to buy RFEC’s gasoline production from all projects. In addition to helping the customer achieve its own Net Zero target, RFEC’s fuel saves them money compared to blending ethanol with gasoline. Canada is a net at-risk importer of 3.2 billion litres (850 million USG) of ethanol and gasoline annually, the displacement of which could support over 40 RFEC facilities.
In the event that gasoline demand reduces over time, RFEC can still grow its market share as its product, unlike ethanol, has no blend limit. RFEC also has the option to reconfigure its process to produce blue hydrogen to service the electric fuel cell market, which is anticipated to benefit from the rare earth limitations of battery-electric vehicles. Alternatively, the RFEC facility could be reconfigured to produce low-GHG electricity. Gasoline currently offers the best market.
What makes RFEC different is a dedication to creating a circular economy to benefit Indigenous and rural communities, close to feedstock, and where long-term jobs are needed the most. In addition to biomass collection, local businesses can benefit from RFEC’s co-products of captured carbon dioxide, clean water, residual heat, and surplus power such as a community greenhouse, fish farm, and other agri-ventures, as well as commercial CO2 and LPG bottling and distribution.
The Rainforest Energy team collectively has managed over $10 billion of energy assets, which have included complex processes in the petroleum and renewable sectors. The most valuable asset that Rainforest Energy has to offer is a unique experience and track record in strategically developing and managing numerous energy projects. A flexible approach to formulating solutions allows Rainforest Energy to address the unique feedstock and market offtake characteristics of each project. We customize each project structure to engage the local situation for community inclusion and Indigenous partnerships as well as project financing requirements.
Rainforest Energy has established relationships with technology providers that can produce quality renewable gasoline and other fuels from various non-food, waste biomass such as waste wood and agricultural residue and the cellulosic component of municipal solid waste. These process designs can also accept supplemental hydrogen from methane feedstock in a parallel track within the same facility configuration. In addition to fossil natural gas, which is a recognized greenhouse gas transition fuel, methane can consist of landfill gas, renewable natural gas from waste biomass, and manure methanization for significant carbon output reductions. The advantage of accepting methane is the improvement of the carbon-hydrogen molecular balance from the combined feedstock supply, which will result in a more efficient gasoline output. This dual configuration approach also creates feedstock flexibility and mitigates input supply risk.
After sizing and partially dehydrating, biomass feedstock is first gasified in a closed chamber with oxygen control. This process avoids the air emissions normally associated with incineration, which is growing issue for biomass-based electricity production. The biomass material is transformed into synthesis gas ("syngas"), which typically consists of carbon monoxide ("CO"), hydrogen ("H2"), carbon dioxide ("CO2") and, to some extent, nitrogen ("N") and contaminants such as tars and chlorine. CO2 is removed from the syngas using an "off-the-shelf" chemical process that is commonly used in the petroleum industry. Given its high purity, it can be used for industrial purposes such as greenhouse production enhancement. There are several options for biomass gasification equipment which come with a performance history and warranties from reliable manufacturers.
Although there is syngas cleaning typically provided in the biomass gasification package, there are additional equipment providers for tar removal, wet scrubbing, and trace metals removal for additional syngas clean-up. Again, these items are available from reputable equipment providers with performance warranties. The Rainforest Energy team has narrowed down the selection of three gasification technology providers who each offer commercially demonstrated solutions to producing clean syngas.
Methane reforming is a proven technology that has reliable performance history from reputable equipment suppliers. Fossil natural gas requires no preparation as it must have passed the specifications of the pipeline transportation network from which it is delivered. Bio-methane, however, may need to remove hydrogen sulfide ("H2S") and water which utilizes "off-the-shelf" equipment. As in biomass gasification, the end result of methane reforming is a syngas product.
One of the early facilities to produce gasoline from syngas is the New Zealand gas-to-liquids ("GTL") facility constructed in 1985 by ExxonMobil. Natural gas was the feedstock. The process involved three catalytic stages: (1) syngas to methanol, (2) methanol to dimethyl ether ("DME"), and (3) DME to gasoline. It is commonly referred to as the methanol-to-gasoline ("MTG") process. The New Zealand facility operated for 12 years until the feedstock and offtake prices changed such that the economics were rendered unfeasible. It was thereafter operated at a methanol facility. During its first seven years of operation, this facility achieved an impressive 96% onstream time. The second-generation ExxonMobil GTL facility was built in China in 2009 to process syngas generated from off-spec coal. Expanded in 2011, this facility continues to operate.
Since 1985, there have been several GTL technologies deployed in various locations around the World using a variety of feedstocks. New developments in chemical-catalytic reactions have reduced the three catalytic stages in the MTG process to two. This allows for cost reductions for improved economic performance, which is an important success factor during today’s lower energy commodity prices.
Viable new technologies are required to enable a desired transition from a fossil fuel economy. The fundamental test of such viability is economic: it must make money without life-of-project, government subsidies. Renewable fuels have become an important part of the alternative energy portfolio. However, only a very few are economic during low crude oil prices. The technology platforms available to Rainforest can generate acceptable economics at a lower oil price than its competitors with an unlevered 10% IRRBT possible at below USD $55/barrel for West Texas Intermediate. Renewable gasoline is also a more sustainable biofuel, as it offers all of the benefits of ethanol without its inherent problems of blend limitations, poor fuel economy, and engine wear.
North America is at a crossroads in its hydrocarbon future, particularly with the growing access restrictions for landlocked crude oil supply. Rainforest Energy is an opportunity to manifest some much-needed energy diversification, using the strengths that are already present locally: deep energy expertise, abundant biomass resources, mature fuel infrastructure, and established fuel marketing channels.
The utilization of residue from the forestry industry will avoid carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) emissions compared to the decay or burning of such material. In Alberta and British Columbia, roadside slash piles from logging operations are required to be burned. In Maine, the rules for such burning depend on the particular circumstances. The rationale for burning forestry residue is that the resulting emissions reduce the generation of CH4 and N2O, which have a magnifier effect to CO2 called Global Warming Potential (GWP). The GWP factor for CH4 is 25:1 the effect of CO2 while N20 has a 298:1 GWP factor. Culling for dead fiber from forest fires, pine beetle infestation, or the reduction of floor trash should be considered as avoided decay emissions.
The avoided forestry emissions for a Rainforest bio-refinery are estimated to be 2,020 grams CO2e per Kg (dry) for avoided slash pile burn emissions. Other carbon avoidance biomass include straw that is surplus to soil regeneration, especially flax straw and hemp stalks. All of the biogenic CO2 produced in a Rainforest bio-facility is captured after the syngas production stage using conventional separation technology at low cost. Such captured CO2 is suitable for commercial applications such as a greenhouse, which is propose at all of the community development sites identified in the project pipeline. In Alberta and Saskatchewan, there is a deep saline aquifer that has been mapped by the provincial energy regulators for CO2 injection and permanent sequestration. Such dedicated geological sequestration opportunities exist in connection with most sedimentary basin and are common throughout North America and Europe.
The value of carbon credits varies by jurisdiction and application. Alberta was the first jurisdiction in North America to institute an industrial carbon levy in 2006, which is currently valued at CDN $65/MT. The Canadian Government legislated a $65/MT carbon tax to be required for all provincial jurisdictions that do not have an equivalent tax. This will increase in stages to CDN $170/MT by 2030. British Columbia introduced a Low Carbon Fuel Standard (LCFS) for a target 20% reduction in carbon intensity of motor fuels by 2030. California, Oregon, and parts of Washington State have a legislated LCFS. Several other States are considering their own version of an LCFs. Canada has implemented its own version of a LCFS under the Canadian Clean Fuel Standards (CCFS), which are in addition to the existing Canadian Renewable Fuel Standard (RFS) for biofuel blending. LCFS attributes currently trade in the CDN $475 to $495/MT range in British Columbia while the LCFS prices in California and Oregon are USD $70/MT and $142/MT, respectively. In the USA the renewable index number (RIN) credits for advanced gasoline (D3 RIN) currently trade in the USD $2.83/USG range, according to the U.S. EPA.
The management team includes Shondell Sabad, Travis Goldfeldt, Melodie Creegan, Konstantin Starkov, and Caroline O'Driscoll with advisors Jacques Huot and Sarah Toogood. Additional team members will be recruited as needed.
A CFA Charter Holder, Mr. Sabad has more than 30 years leadership experience in capital formation and resource development. This includes +15 years in crude oil, natural gas, and petroleum products trading with Shell Canada, Trans-Canada Energy, TD Energy Trading, and Sempra. Mr. Sabad is a Co-Founder of Prairie Vertical Farms, which is an industry leader in combining leading edge technology and sustainable indoor agriculture. As CFO at Acapella International, he played a pivotal role in starting a mining exploration company and then working with a strategic investor to build-out a producing gold and copper company. His financial acumen, coupled with exceptional problem-solving skills, resulted in the formulation of multiple projects with a total market value of over $1.2B USD. His new role at Rainforest Energy will leverage his financial acumen, critical thinking, resilience, flexibility, and organizational skills will help Team Rainforest achieve its mission.
Mr. Starkov has +30 years of petroleum operations and engineering experience in Canada, Russia, and International. He was vice-president of production for one of the first US-Russia joint ventures. In Canada, he was operations manager for a highly complex enhanced oil recovery technology and managed a CDN $240 million (USD $187 million) capital budget. He also was general manager of an oil sludge recovery operation that deployed a new processing technology. Mr. Starkov is a proven trouble-shooter and problem-solver for difficult petroleum operations and challenges in plant engineering and construction.
Ms. O’Driscoll is the Principal of O’Driscoll & Co. (Aboriginal, Environmental & Energy Law) based in Calgary. She is also Counsel – Indigenous Practise Group to Fogler Rubinoff LLP, a 120-lawyer firm based in Toronto across 20 areas of practise. She has acted for various clients on a range of multi-party, multi-jurisdictional, commercial negotiations and transactions that involve indigenous and non-indigenous entities and corporations and various levels of provincial and federal governments in Canada, with specific matters including corporate re-structuring, the financing and acquisition of resource interests, and on and off-reserve investments. Ms. O’Driscoll is an active litigator, appearing in both the Federal Court of Canada and various levels of the Alberta Courts, as well as before the regulatory bodies of both Alberta and Canada’s energy regimes. She completed a Master of Science in Sustainable Energy Development and co-founded Optima Global Inc., a multi-disciplinary team of professionals that collaborates with communities to assess community resources and needs for sustainable development projects. In May 2019, she was appointed to the board of directors of the Canadian Energy Law Foundation.
A proud Metis, Ms. Creegan offers +28 years consulting experience with major players in the private and public sectors. Since founding Mosaic Communications in 1995, Melodie Creegan has formulated marketing and communications strategies for a broad range of local and international clientele including TELUS Spark Science Centre, Yellowstone to Yukon Conservation Initiative, Brighton Cares, Kate Energy, Filtrum Construction, Brookfield Residential, Ensign Energy Services, Georg Fischer Central Plastics, Charter Plastics, Youthlink Calgary Police Interpretive Centre, Calgary Police Foundation, YWCA, and Averill Hospitality. As a proud Metis, she is fiercely committed to bridging the gap between Indigenous and non-Indigenous communities, helping to create business opportunities and leverage partnerships. She is a Board Member and Executive Director Emeritus of the Circle For Aboriginal Relations.
Mr. Huot has +44 years of finance experience in Canada, International, and First Nations. Mr. Huot is a Non-Status Indian of Huron Wendat heritage and is a pipe carrier. He served 10 years on the Board of Anishnawbe Health Toronto (6 years as President) and was instrumental in its financing. His career includes VP of Corpfinance International, where he was responsible for numerous First Nations project financings. He has held executive finance roles with Citibank, SNC-Lavalin, and Ontario Superbuild Corporation where he put the privatization of Hydro One into play.
A professional engineer, Ms. Toogood has +5 years of project management experience. She is Project Manager with Introba Canada, a major international building engineering and consulting firm. Certified LEED AP BC+C, she is an expert on energy efficient, sustainable design of building systems. She is also Diversity Board Chair for ASHRAE SAC and a WCE (Women in Consulting Engineering) Society member and advocate/ally for all under-represented groups in STEM. She is passionate about diversity, inclusion, and Indigenous reconciliation.
In addition to Shondell Sabad, the board of directors is comprised of Jeff Arsenych, Peter Lafontaine, Khaled Saleh, and John Wright with Francis Erasmus as Strategic Advisor to the Board.
Mr. Arsenych is a veteran entrepreneur as co-founder/CEO of eight start-ups in the petroleum, renewable energy, and technology sectors. He has over 35 years business development experience in structuring a broad range of transactions and innovative financings totalling more than $500 million in value. He was co-founder and chair of the first major biodiesel operation in Western Canada with a rated capacity of 66.7 million litres (17.6 million USG) per year. He sat on a joint venture committee with a major oil company for the joint development of a new refining technology. He also sourced and negotiated the acquisition of a 15,000 b/d (600 million litres/year) crude oil refinery and served as acting general manager. He sat on the board of a Swedish engineering firm that specialized in district energy and power cogeneration. He co-founded and was CEO of four successful oil and gas development and production companies which achieved compounded rates of return ranging from 12% to 38% for their initial investors.
Mr. Lafontaine is a dynamic business leader with more than two decades of experience leading and building top performing sales and marketing teams, growing company revenues and bringing technology and business solutions to the market. He currently is a Partner in Peer Guidance which advises technology start-ups. He was Co-Founder, CEO, President and Board Member of an entertainment systems company where he transformed a new product/technology concept into an organization with more than $2 million in revenue, and more than 500 locations across Canada. He is a thought leader within the Alberta Rainforest, which is an innovation ecosystem of more than 2,000 professionals, entrepreneurs, and leaders from across all sectors.
Mr. Saleh is a Professional Engineer with 20 years of leadership and project management experience. He is skilled in team building and managing large teams, composed of both technical and non-technical professionals at all levels. He has demonstrated expertise in bridging business and engineering requirements while executing major projects including project scoping, initiation, management, and closure. He obtained a Project Management Professional (PMP) Certification. Since 2015, he has been Managing Director of Ennovate Consultants Inc. in Calgary. Ennovate is a Canadian based professional consulting firm providing engineering, project management and project economics expertise. They provide a wide range of services to support the full life-cycle of client projects or operations. They have the experiences and expertise to plan, design, engineer or construct any project taking into account both the impact to local neighborhoods and the global community at large. They work hard to solve each problem with alternatives that are equally technically effective, economically beneficial and protective of the environment. The Ennovate team has successfully executed projects varying in size from $1MM to $350MM USD in Canada, the Middle East, and Africa including being a project manager for the construction of a 200,000 barrel/day oilfield processing facility in the Middle East.
A CFA Charter Holder, Mr. Wright is also a professional engineer with +40 years energy leadership experience. He is Chairman of Touchstone Exploration and Alvopetro Energy (international oil & gas) as well as Chairman of Grounded Lithium (lithium extraction). He was the co-founder of Petrobank, PetroBakken, and Petrominerales. their peak, the collective assets of Petrobank, Petrominerales, and PetroBakken exceeded $10 billion. Mr. Wright is a past Chairman of the World Petroleum Council-Canada, past Governor of CAPP and founder of Fundación Ñan Paz in Ecuador and of Fundación Vichituni in Colombia. Mr. Wright holds a B.Sc. in Petroleum Engineering from the University of Alberta (1981).
Mr. Erasmus is a recognized Indigenous Leader with +30 years of experience building positive partnerships with Indigenous communities. He currently is Manager – Indigenous Relations with Tamarack Valley Energy, a publicly traded oil and gas company with a $2 billion market capitalization. His prior positions included Indigenous and stakeholder relations for ARC Resources, Seven Generations Energy, Enerplus, Alliance Pipeline, and the Regional Municipality of Wood Buffalo.