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1095 Evergreen Circle, Ste. 200 The Woodlands, TX 77380 281-210-0063 www.benchmarkenergy.net. Who is Benchmark Energy?. Publicly traded company Ticker symbol BMRK Trade glycerin into fuel markets How it started – Started by Ben Yantis and Mark Bateman in 2009 as Energy Partners LLC.
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1095 Evergreen Circle, Ste. 200The Woodlands, TX 77380281-210-0063www.benchmarkenergy.net
Who is Benchmark Energy? • Publicly traded company • Ticker symbol BMRK • Trade glycerin into fuel markets • How it started – • Started by Ben Yantis and Mark Bateman in 2009 as Energy Partners LLC
Energy Partners LLC • IRS 637 Registration • Originates glycerin for Benchmark Energy Corp. • Completely merge with Benchmark January 2012
BenchMark Energy Operations • What we do • What is a Bunker Fuel? • Glycerin as a Bunker Fuel
Alternative Fuel Incentives • The IRS 637 Registration
Glycerin • Glycerin is a co-product from the production of biodiesel. • Industrial glycerin or glycerol
Advantages Increase BTU at lower cost Cleaner burning Reduction in greenhouse gases
Benchmark Energy Future Where are we Going?
BenchMark Energy Corporation and Energy Partners LLC January 1, 2012 BenchMark Energy Corp and Energy Partners LLC merge into single entity
Refinement Plant • 10 MGY Plant in Grand Forks, ND • Unrefined Glycerin • MONG • Methanol • Biodiesel • Glycerin • Water
Processed Glycerin Co-Products Based on our research and analysis, 10 Million Gallons a year (MGY) of industrial (crude) glycerin will yield the following:
Refined Glycerin (95%) • “Clean” or pure glycerin has more than 1500 uses in day to day living. • 6 MGY from Grand Forks, ND plant
Uses of Refined Glycerin Cosmetics Soap Skin Softener Animal Feed • BTU Enhancement • Antifreeze • Dust Control • Plastics • Lubricants
Gross Profit Margins • Broker Crude Glycerinapproximately 23% • Sales of Processed Glycerin approximately 50%
Current Daily Operations Energy Partners originates fuel for BenchMark Energy (IRS 637 Registration)
BenchMark Current Customersof Unrefined Glycerin • UND – 1 million gallons next 8 months • Carmeuse – 4.5 million gallons per year • Behm Oil • TJ’s Oil • Eastside Oil • others
University of North Dakota • Coal power generation concerns • Glycerin • Our Agreement • Paid $3250 per semi load • Baseline Costs $2300 per semi load including trucking & purchase price • Gross Profit $950 per truck • Volume 75,000 gallons per month
EPA Regulations EPA has determined that power plants that burn 15% renewable fuels are EXEMPT from EPA Boiler House emission requirements
Current Operations 6 Million Gallons Glycerin for use on coal as a BTU enhancement
Financial Projections **Benchmark acquired 49% of Energy Partners on August 12, 2011.
Growth Company Three year projections
Growth Company Three Year Plan Three Operational Plants 25 Million Gallon Year Annual Refining Capacity
Adding Value 10 million gallons of Unrefined Crude Glycerin • 3 million gallons Technical Grade Glycerin • 3 million gallons “Bottoms” Methanol MONG Biodiesel Water 6 Million gallons Refined Glycerin
Added Value Projections 3 Million Gallons Technical Grade Glycerin $2.45 per gallon 3 Million Gallons Glycerin “Bottoms” $0.95 per gallon
Business Plan Highlights • Fiscal Year End is September 30 • Acquire remaining 51% of Energy Partners, January 2012 • Raise $10 M by end of 1st calendar Quarter 2012 • Acquire an operational Biodiesel Plant March/April 2012, capacity = 4MGY • Build North Dakota Plant, operational 1st calendar Quarter 2013, capacity = 10 MGY • Build Houston Plant for medical grade Glycerin, operational 3rd calendar Quarter, 2014
Capital Raising Campaign $10 Million Goal
Use of Funds Anticipated Use of Proceeds • Property $ 350,000 • Plant $3,500,000 • Equipment $3,200,000 • Acquisition $1,500,000 • Working Capital $1,450,000
Financial Structure • Authorized Common Stock 70,000,000 shares • Current Shares Issued and Outstanding, 21, 298,121 shares • Post – $10 M Funding 41,298,121 shares of Common Stock Issued and Outstanding • 100Sharesof Series A Preferred Stock Issued and Outstanding • 100Sharesof Series B Preferred Stock Issued and Outstanding
Conclusion • Benchmark is utilizing a co-product of Biodiesel production as an alternative fuel • The Company is operational and has existing contracts • Strategic Partnership with the University of North Dakota, in discussions with North Dakota State • Benchmark has retained Hinton, Kreditor and Gronroos LLP as its SEC auditors • The Company is moving forward with its business plan