[Terrapreta] Hello, I am a major investor

[Lloyd Helferty]

Lorenzo,
 
  This is a good exercise.  I have been working with a gentleman here in
Ontario and we have been attempting to come up with a solid business case
for Biochar, but so far have come up short -- perhaps because of the
somewhat simplistic model that has been used (based primarily on carbon
credits, for instance).  Additional economic value points are required to
clinch the case, but so far without definitive on-the-ground proof and
localized data about the magnitude of soil improvement (and thus crop yield
improvement) that can be achieved in any given locality, the ROI of any such
small- or mid-scale endeavour using sophisticated low or zero emission
equipment has been simply too long in duration for most investors to
consider unless there is a sizable measure of goodwill on the part of the
investor. (i.e. "a major investor, willing to 'green up' their act")
 
    Lloyd Helferty
    Thornhill, ON, Canada
 

  _____  

From: terrapreta-bounces at bioenergylists.org
[mailto:terrapreta-bounces at bioenergylists.org] On Behalf Of Biopact
Sent: May 24, 2008 12:02 PM
To: terra Preta
Subject: [Terrapreta] Hello, I am a major investor


I wanted to do this exercise. Suppose I am a major investor, willing to
green up my act.
 
I have $1 million at my disposal. And I'm looking at many different,
competing options: launching a reforestation project in some developing
country, investing in cellulosic biofuels, protecting an existing patch of
tropical rainforest, or investing in biochar to offset emissions (of my
company) or to trade as carbon credits. 
 
How would the biochar people convince me to put my money into their concept?
 
I know we've repeatedly listed many reasons as to why TP is interesting. But
we have not made a real comparison of competing concepts. Moreover,  I think
we should begin to design concrete proposals and routines to convince
investors willing to engage in the "voluntary" carbon market (since biochar
is not yet included in formal carbon trading systems). 
 
For Terra Preta we shouldn't underestimate concrete implementation costs,
the complexity of biochar production, the competing uses for a farmer's
biomass, monitoring and verification costs, and so on. 
 
Anyone willing to make a basic comparison of options (let's say we start
with an overview of the economics of different bioconversion technologies,
then compare with less related concepts like reforestation or rainforest
protection)?
 
Lorenzo

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