Alberta BioBord

Manufacturing , Sustainability
Stettler County, Alberta, Canada
5875833204
gwcconsulting@shaw.ca
Alberta BioBord Corp.
Alberta BioBord Corp.

$56,456.00

113%
Funded Of $50,000.00 Goal
112.91% Raised
Equity Crowdfunding Offer. Structure
- Days Left
$500.00 Min. investment
$250,000.00 Max. investment
$50,000.00 Minimum Raise
$250,000.00 Maximum Raise

Offering Description

The Future of Fuel Pellets, Power Generation & MDF Boards is straw!

 

Eco

From Alberta Farmer's Fields to your Heat, Electricity, Floors, Furniture & Shelving, Alberta BioBord's straw fibre products are a truly green sustainable choice!

Problem

Wood Fibre costs keeps rising, supply is not keeping pace with consumption demands:

  • Traditional waste streams of wood chips & sawdust for production of engineered wood products such as OSB, Particle Board & Medium Density Fibre Board have suddenly been adopted as a source for the production of Wood Pellet Fuels, in demand globally to replace coal in Electricity Generation.
  • Canada’s wood pellet market is expected to exceed 4M Metric Tonnes in 2020, COVID-19 hasn’t slowed demand!
  • Forests everywhere are shrinking with the added pressure of being vital to maintain healthy ecosystems for the carbon sink benefits.
  • The demand for wood fibres for pellets is growing globally at over 12%/Yr, causing MDF manufacturers both higher fibre input costs and forcing them to start using whole trees.
  • 75% of Canada’s pellets are exported!
  • The handling & chipping costs when having to use whole trees adds to the overall input costs, leaving existing wood based MDF producers having no choice but to raise the prices of all MDF products to consumers.
  • It takes ~40 years to grow mature trees in Canada.

Sources: Wood Pellet Association of Canada, Grand View Research 2020 Market Analysis

Fuel Pellet Market Outlook

1

2

Good Steady Prices, Possible Doubling of Demand Over The Next 7 Years!

Market Demand

Both North American & Global Fuel Pellet & MDF Market Demand Growth exceeds GDP Forecasts:

  • According to the Wood Pellet Association of Canada and numerous industry market reports, “it is quite feasible that industrial wood pellet demand will essentially double from 2020 to 2027”!
  • No major new MDF production facilities have been built in Canada & the USA in nearly 30 years, leading to North America becoming a Net Importer of MDF products whereas we once led the world in exports.
  • Nearly 2 Billion square feet of ¾ inch MDF Board equivalent is forecast as our NA Import requirements by 2022.
  • Globally, several new MDF plants have been built in the past 6 years, all using straw fibre technology, but their capacity hasn’t matched increasing demand so MDF prices have continued to rise.
  • Alberta BioBord is poised to fulfill up to 20% of the current Import shortfall, targeting approximately 5% of the North American demand for MDF while also adding 300,000 MT of straw fibre/waste wood fuel pellets utilizing proprietary blends to enhance pellet performance.
  • The full range of MDF products will be manufactured by Alberta BioBord, including rawboards, laminated boards of all types & sizes, flooring, mouldings, door panels, etc.
  • Preliminary market analysis suggests that due to the efficiency of the newest Continuous Press Systems combined with the MDF Performance advantages possible with straw fibres, our specialty products may also be in demand in overseas markets.
  • North American MDF demand thru 2024 is forecast to rise by over 7% per year while China and SE Asia rise for the same period is forecast at an astounding 12+%! (Per Greenview Research latest post-Covid19 Market Research Report)

MDF Market Outlook

MDF

 

Import Prices by Country

The average MDF import price stood at $452 per cubic meter in 2019, remaining constant against against the previous year. Overall, the import price showed a relatively flat trend pattern. The pace of growth was the most pronounced in 2017, an increase of 4.8% against the previous year. Over the period under review, average import prices hit record highs at $476 per cubic meter in 2014; however, from 2015 to 2019, import prices failed to regain the momentum.

Technology Development

Technology developed at Alberta Research Council proved straw fibre excellent for MDF!

  • Research completed eight years ago in Alberta became widely adopted in SE Asia where wood is scarce but straw is plentiful.
  • The move to non-carcinogenic pMDI Formaldahyde Free glue works particularly well with straw fibre.
  • The MDF boards produced with straw are more Fire Resistant and easier to be efficiently routed into well defined mouldings.
  • The large 10+M Metric Tonnes of annual wheat straw production within East Central Alberta ensures a sustainable source readily replenished every 12 months vs. 40 years for wood!
  • Dieffenbacher GMBH Maschinen- und Anlagenbau, the world’s premier MDF Continuous Press System manufacturer, has committed to providing performance & production guarantees for the entire facility design and engineer of Alberta BioBord’s proposed 430 Million square foot of ¾ inch equivalent  annual production.
  • Even with cautious soil conservation straw harvesting rotations, the approximately 800 Thousand MT of required straw will be readily available for input every year.
  • Additional farmer revenues are always welcome.

Strategic Rapid Startup Plan

Always give the customer what they want! The world is hungry for biomass fuel pellets so Alberta BioBord is going to include a straw & waste wood based 300K/yr MT Pellet Mill.

Solution

Such a pellet mill facility can be designed, built & commissioned on a fast track schedule, at a cost of ~$36-40M, possibly producing first pellets fall of 2021.

Site preparation & construction would have to start mid summer of 2021, creating hundreds of needed Alberta jobs.

Fuel Pellet revenues at current market prices could  fetch approximately $45M/yr. Detailed cost analysis is underway, s/b complete within 2-3 weeks.

Solution

Alberta BioBord

Building the world’s highest capacity straw fibre MDF board & value add integrated factory:

Solution

  • State of the art dual line Dieffenbacher CPS system capable of producing 2mm thru 38mm thicknesses of straw fibre based boards.
  • Densities will range from Ultra High & High for flooring and thin laminates thru standard Medium Density for shelving & furniture plus Low Density for Mouldings.
  • Main Factory building envelope footprint of approximately 600,000 square feet!
  • TR Canada E&C Inc. engineering firm to provide turnkey EPCM contract for all civil, structural, mechanical and electrical work.
  • Energy & Electricity supply being negotiated with an independent Co-Generation PowerPlant project proposed for the same area.
  • Straw Acquisition supply contracts being negotiated throughout east central Alberta.

Revenue Projections

Size, Efficiency & Product Flexibility Matter!

  • Like newer European MDF board plants, Alberta BioBord is integrating value add lines to provide high value Custom Cut to Size, Thin Film Laminating, Paint, Print, Moulding, Floor Planking, Shelving, Components, Powder Coating & Passage Doors.
  • Using straw qualifies our process as a Net GHG Emissions Reduction Provider, earning us additional Carbon Offset Credit revenues commiserate with our straw sequestration.
  • For maximum revenues, we are also intending to use our waste straw, dust & MDF end trimmings in a high technology straw Pellet Mill utilizing proprietary blends to achieve a Premium Grade Pellet.

Solution

Multiple Revenue Streams

  • MDF products will generate most of Alberta BioBord’s base income.
  • Value added laminate & moulding products could significantly add to revenue potential.
  • Straw fuel pellets using proprietary blends developed by the Founder may contribute high margin revenues by using factory waste streams. FREE FIBRE! 
  • The straw/wood waste Fuel Pellet plant would be constructed first in order to both generate early revenue with less initial capital outlay, but also to ensure that the Straw Logistics plan is fully validated ahead of the larger full MDF Board plant investment decisions.
  • GHG Offsets are expected to generate significant “Cost Free” revenue which means Investor rates of returns might be significantly higher than most manufacturing facilities can deliver.
  • The inclusion of a Phase 2 CoGen plant could provide stable electricity and heat costs while also contributing additional revenue as Alberta’s only fully sustainable solids renewable powerplant.

Return on Investment

MidCase Projected Return On Investment

Solution

A detailed cost feasibility analysis shall be completed by July 15th, breaking the revenue stream analysis into Phase by Phase standalone economics.

Crowded Market or Not?

  • Only one MDF Plant has been built in North America in the past 30 yrs, a 140 Million ¾” sqft equiv facility.
  • Barely touches the NA 1 Billion Imports required per year.
  • The global medium density fiberboard market size was valued at USD 61.3 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.6% from 2020 to 2027. The rising product application in the furniture and construction applications is expected to boost the product demand over the forecast period.
  • All current market forecast reports state MDF demand will not slow, even COVID-19 hasn’t slowed demand much.
  • Our Competitors are tied to waste wood and older technology. Overseas competition is locked into high transportation costs. Alberta BioBord will be competitive.

Solution

Investment Opportunity

Canada’s most advanced Fuel Pellet Plant First, Co-Generation Combined Heat & Power Plant Second followed by State Of The Art MDF Board Plant!

Solution

  • Round 1 completed, 4.613M Shares with over $2+M committed.
  • Round 2 underway, 387,000 Class A shares via Private Placement already closed (see Offering Document for more details).

Available Through Equivesto:

  • Minimum Raise of $50,000 for 25,000 Class B shares
  • Maximum Raise of $250,000 for 125,000 Class B shares
  • $2.00 per share
  • Class B Non-Voting Common Shares
  • Minimum Investment of $500
  • Units of 250, 500, 750, 1000 or 1250 shares preferred
  • Pre-Money Valuation of CAD $5,586,000

Review the Offering Document, Articles of Incorporation, and Shareholder's Agreement for details on Rights and Conditions related to these securities.  Class B Non-Voting Common Shares have both Tag Along and Drag Along Rights for minority investor protection.  

Management Team

George Clark

George Clark

CEO

George Clark is a new technology Entrepreneur with a history of merging innovative systems & processes into real world applications. With a Computer Systems Analyst degree & a lifetime of construction experience, George’s many accomplishments include helping many of Alberta’s Home Builders, Architects & Engineers move from the drafting boards onto intelligent Computer Aided Design systems as well as helping DND Suffield, Geological Survey Canada & numerous Commercial Enterprises transition into advanced graphics and business management integrated systems. In 2005 he was awarded a Metis Entrepreneur of the Year honor by MNA Region3 and in 2016 he was named by Alberta Venture Magazine as one of Alberta’s 50 Most Influential People.

He also helped the Metis Nation of Alberta acquire a Drilling Rig, earning them over $12M in realized profit in five years. He then introduced a unique new technology soil cement stabilization process for providing solid 24/7 365 day accessible heavy load bearing ground solutions to clients throughout Alberta & British Columbia. His company excelled at literally putting his many clients on Solid Ground to build their projects on schedule & budget!

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Lorne Murfitt

Lorne Murfitt

VP Logistics

Lorne grew up learning his valuable work ethic and farm boy multiple skill sets on a mixed farm in Saskatchewan. He went from there to farming and ranching in Alberta & BC for over 30 years, gaining the experience vital for Alberta BioBord’s upcoming straw acquisition & transportation logistical needs. Like many other ranchers, Lorne worked in the resource industry in Alberta and British Columbia for 40 plus years. Mining, forestry but mainly oilfield as an oilfield consultant supervising everything from drilling to construction projects. In 2015-2016, he became a well known advocate for Alberta Farmers & Ranchers, gaining their respect for Standing Up for them when most needed.

He has been responsible for projects coordinating dozens of multi discipline employees & subcontractors, precisely the experience needed to oversee the producer relationship building and logistics moving 800,000 MT of large square bales per year. Approximately 1.6 MILLION bales will need to be safely acquired and transported as Alberta BioBord’s fibre feedstock. Lorne & George designed an innovative strategy that will be rolled out in 2021.

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Randy Kerr

Randy Kerr

VP Communications

Randy has focused on public affairs strategies and relationships with government ever since obtaining his B.A. in Political Science from the University of Alberta. He offers deep expertise in government, stakeholder and regulatory communications with a specialty in the energy and environmental fields. Randy has worked in the energy and politics field for nearly 30 years. By focusing on winning campaigns - political, pipelines, energy projects and more, he has worked on resource development of Alberta’s magnificent oil sands and projects that should have proceeded such as the Northern Gateway Pipeline. 

He has worked for ConocoPhillips Canada, devising oil sands strategies and building industry coalitions. He also helped coordinate ConocoPhillips work with municipal, provincial and federal (and occasionally international) governments’ activity on the Greenhouse Gas and climate change file. Randy has built and maintained a strong multi-party political network across Canada. Management of several successful political campaigns has honed his talents for leading great communications teams.

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Alberta BioBord

Alberta BioBord

VP Plant Operations and VP Sales

Alberta BioBord has initiated the search for these key managers. Our location is the biggest draw, being an hour to Red Deer or 2 hours to Edmonton or Calgary makes this “the” MDF Mill to be working at relative to most.

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06/28/2021
Project launched

07/19/2021

Campaign Closing Date Extended

With many exciting updates to come, and with continued strong investor demand, Alberta BioBord has extended their campaign closing to August 27th, 2021 to allow more investors time to participate.  

 

August 17, 2021 - Alverta BioBord further extended their campaign closing date to September 26, 2021. 

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09/14/2021

Alberta BioBord Hits 100% Goal & Campaign Closing Date Change

Alberta BioBord has surpassed it's minimum funding goal and is now over 100% funded!  

In line with this milestone, Alberta BioBord has moved forward the closing date to September 18, 2021 at 11:59pm ET.  Interested investors can still invest and participate up until the closing on September 18th.  

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FAQs

Since the time of the campaign video to present day, have there been any developments in the viability testing of your wood pellets?

Innotech Alberta's top research scientist was unavailable for most of the past 3 months dealing with a personal matter. They've recently begun more sample preparations but haven't yet provided [Alberta BioBord] with any reports, interim or otherwise.

[Alberta BioBord] has scheduled a site visit to review the next batch of samples as [Alberta BioBord] need to verify for themselves that they are recreating the equivalent conditions that their plant will deploy.