Biomass Secure
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Biomass Secure Power (BMSPF.PK)
Stock symbol: BMSPF.PK…….….……..……..….…Common shares: 12/31/109: 235mm
Stock price 7/5/11: $0.015…..….…..…….…..…..…………….…………..Float 58mm (est)
52-week price range: $.003 - 0.3…………....…..….Equity market capitalization: $3.5mm

Recent News…..Stock Price & Chart…..SEC Filings

RECENT DEVELOPMENTS

BMSPF Plans for Pellet Plant Construction --Gross revenue from this plant is projected at $75 million per year. June 15, 2011…read more

RECENT DEVELOPMENT

Biomass Secure Power Inc. Receives Purchase Agreement from LG International Corp. May 18, 2011

. To provide LG International Corp with biomass pellets commencing in 2012.
. The term of the purchase agreement is for ten years and will provide Biomass Secure Power Inc. with an estimated annual gross income of $37,500,000.
. LG International Corp is the second largest conglomerate company in South Korea…
read more

SUMMARY

Coal can be completely replaced by torrefied wood pellets or can supplement and be co-fired. with coal used for power production.

Biomass Secure Power plans to develop biomass pellet manufacturing capacity to become the largest global supplier of bulk biomass pellets by winter 2015.

BUSINESS

. BMSPF will convert low quality wood fibre into torrefied wood pellets
. Torrefied biomass is a natural, direct replacement/supplement for coal.

MARKET

The market is expected to grow from 10 million tons in 2010 to over 50 million tons by 2020. Biomass Secure believes that the market will plateau at about 130 million tons/yr due to harvesting limitations. This outlook is based on the current levels of non pellet wood demand and other industry demands on the resource.

The world increasingly depends upon coal as its source for power, as developed and developing nations alike have turned to coal for its vast and widespread abundance, consistent low price, and the steady, sizable investment in coal-fired infrastructure. In 2007, coal powered 54% of the electric utilities in the United States and over 40% of the global electricity supply in 2005. World marketed energy consumption is projected to increase by 50% from 2008 to 2030.

Global coal consumption is predicted to nearly double, with demand rising to 10.6 billion short tons by 2030. U.S. coal production has reached record levels with domestic consumption reaching 1.1 billion tons in 2007.

Coal, the leading fuel source for electrical generation in the United States and worldwide, is also the largest single source of CO2 emissions and CO2 is the chief culprit in global warming. Unfettered coal use poses grave environmental concerns.

Accordingly, the coal-powered industry has emerged as the primary target of environmental initiatives aimed at arresting and reversing global warming. Twenty-eight states, including North Carolina, have passed legislation to reduce CO2 output from current levels to target levels over the next 10-12 years. On the national level, legislation regulating CO2 emissions is imminent.

Co-firing torrefied wood represents the most efficient, near-term solution for coal-fired utilities to meet growing energy demand as well as stiffer environmental standards. Torrefied biomass is a carbon-neutral feedstock sharing many of the properties of coal itself..

It can be treated, handled, and co-fired directly with coal. It has been tested to 10% and will likely go to a 30% mix with coal without negatively impacting electricity production. Unlike carbon sequestration, which has an estimated capital cost of more than $1B, torrefied biomass requires little, if any, capital investment on the part of utilities. It will allow coal-fired utilities to meet the 2020 standards without a significant increase in the cost of electricity to consumers.

"Torrefied Wood, A Bio-Energy Option That Is Ready to Go": A Biomass Digest Special Report…read more

GROWTH PLAN

. Biomass Secure Power plans to develop biomass pellet manufacturing capacity to become the largest global supplier of bulk biomass pellets by winter 2015.

. The 1st phase of construction will be for 2 plants with a combined capacity of 1.25M tones/year each.
. Each plant will consist of a number of identical production lines, rated at 250,000 tons per year.
. Completion of the 1st phase will make BSPI the largest global producer biomass pellets.
. The construction plan will be for one multiline plant to be brought into production before going ahead with the 2nd and 3rd plants
. Plant 2 will be started 12 months after work starts on line 2, plant 1.
. The province of British Columbia has sufficient resources available to sustain operations of a number of plants with a combined capacity of over 5M tons/yr.

TORREFIED WOOD PELLETS

Torrefied wood pellets are primarily used as a fuel for heating. Torrefied wood pellets are 30% denser than regular wood pellets and contain 16% more energy. While torrefied wood pellets have many uses, such as a substitute for charcoal for barbeques, we anticipate Biomass Secure’s torrefied wood pellets will be sold as a substitute for coal as a boiler fuel.

Torrefied wood pellets can be used in coal plants without altering the coal plant. Unlike normal wood pellets, torrefied wood pellets have approximately the same BTUs as coal, which allows coal to be completely replaced by torrefied wood pellets.

Some coal producers may prefer to gradually add torrefied wood pellets to their coal burners.

Biomass Secure believes that the main advantage of torrefied wood pellets over coal is torrefied wood pellets burn cleaner than coal as they produce significantly less ash and sulphur emission. As demand for clean energy increases, Biomass Secure believes the demand for torrefied wood pellets will increase.

Torrefied wood pellets are not subject to deterioration during shipment or storage. This greatly reduces shipping costs for torrefied wood pellets, compared to normal wood pellets. Also, torrefied wood pellets are easier to grind, which reduces their processing costs when they are burned.

PLAN LAYOUT

Wood fiber

Wood fiber will be supplied to the plant in the form of coarse wood chips. Trucks will be offloaded at 2 hydraulic stations and the material will be automatically conveyed to an undercover storage facility by way of a converyor.

As the material moves along the conveyor it will pass though a de-lumper, magnetic separator, de-stoner/de-icer and classifier to remove foreign matter. Generally, the moisture content of the wood waste will vary; however, as the plant production rate is based on the mass of bone dry fiber received, we anticipate using incentives to encourage the shipment of dry material.

Covered storage is essential

Biomass Secure needs a reserve of material on hand to ensure that the equipment stays in continuous operation. Biomass Secure also needs to protect the material from moisture during storage as this will negatively impact the plant production rate. In addition, it’s important to ensure that the material being processed is not frozen and that all ice and snow has been removed from the material before it is processed.

The storage facility will be fitted with a double level walking floor that will discharge material to buffer silos via magnetic separators and de-stoners. The buffer silos will discharge at a controlled rate to a series of fine shredders. This material will then be screened and fine shredded before transfer to a bio-fuel fired flash dryer.

Flash dryer

The shredded material from the flash dryer will have a target moisture content of 8%. To control this moisture content it may be necessary to recycle a portion of the material. It is also necessary to produce 20% more dry product than will be required for production in order to provide energy for the dryer.

The extra material is then milled to a fine powder and stored for use by the flash dryer burner.

Material from the flash dryer is conveyed to a screen and a mill to reduce the particle size to the optimum size for pelletizing.

The material is then conveyed to the pellet mill and after pelletizing is cooled on a band cooler before the product is placed in bulk storage prior to shipment to the port. Bulk storage would be in the form of elevated silos that will be used to place the material on rail cars in preparation for shipment to the port.

Biomass Secure intends to locate the torrefication unit between the dryer and the pelletizing mill. This will produce a synthetic fuel gas that we propose to use for the torrefication furnace and the dryer. There may be some residual gas that could be used to generate a small quantity of electrical power.

Technology

Biomass Secure anticipates that the dryer will be designed to operate with a variety of fuels including bio-mass powder, synthetic gas, natural gas and fuel oil. In addition, the off gas of the dryer may be used for generating steam for use by a steam turbine for the purpose of generating power for the plant. There is a possibility of generating extra power, if the local resources permit.

The torrefication furnace will feature the latest in regenerative burner technology to maximize the quantity of synthetic gas available to provide energy for the plant and to maximize the energy available for generating power.

Biomass Secure plans to use a fine shredder and flash dryer upstream of the torrefication furnace to ensure that the collected material is free of ice, rocks and metallic components that could damage the equipment. The design of the storage facility is anticipated to be two tiered to allow for the run off of any snow and ice prior to processing the material in the plant.

A sparse fluid bed destoner will be used to pre-warm the material to remove stones, snow and ice. Heat for this equipment is anticipated to be provided by waste heat from the process. Biomass Secure believes that this custom design will be a first of its kind in Canada.

EXPERTISE

. Biomass Secure’s management team has implemented projects at a number of pellet plants, supplying burner and dryer equipment along with material handling systems.
. The management team constructed a multifuel burner system for a medium-density fiberboard plant that used dried and processed wood waste for fuel.
. The project management team will be drawn from people with many years of experience in the wood processing industry.

TECHNOLOGY RISK IS LOW

. All technology to be deployed in the plants will have operating references
. Modular design and construction will provide common equipment for ease of operation and maintenance
. No new or developmental technologies will be incorporated into the initial plant design
. Torrefication technology will be implemented in phase 2
. New technology will be properly evaluated and researched before incorporation into the plant design
. Co-generation will be implemented after expected tariff changes makes this option more attractive, current Hydro rates do not support this option

PRICE RISK

Biomass Secure will be dependent on the price of torrefied wood pellets.

. The price of torrefied wood pellets is dependent on many factors, including the cost for similar products such as coal.
. If management’s assumptions are inaccurate and Biomass Secure cannot sell its torrefied wood pellets for more than the cost to produce them, then the business will fail.

Address: 40218 Wellsline Road, Abbotsford, BC V3G 2K7, Canada
Telephone: 604-8074957
CEO: James Carroll
Web Site:
http://biomasssecurepower.ca/mainmenu.html
State or other jurisdiction of incorporation or organization: British Columbia
Transfer Agent: Computershare Trust Company
Investor contact:: Jim Carroll, 604 807 4957

MANAGEMENT

James Carroll - President, Chief Executive Officer, Chief Financial Officer, and Director

Since January, 2007, Mr James Carroll has been Chief Executive Officer, Chief Financial Officer, and a Director of our company. Mr. Carroll also served as a director of our company from 2004 to 2005. Mr. Carroll has been self employed since 1993 operating his own mortgage brokerage business. From 1972 to 1992, Mr. Carroll worked in the banking and finance industry.

George Pappas - Vice-President, Secretary and Director

Since 1993, Mr George Pappas has been the Vice President of All-Trades Fabrication Inc. ("All-Trades") Through All-Trades, he has been involved in building projects for companies such as Disney, University of Southern California, and Boeing. Mr. Pappas has extensive management experience and has specialized in structural steel buildings up to three storied high and all aspects of fabrication and steel erection.

Mr. Pappas is a licensed steel erector with an active C-51 Structural Steel license.

Andrew H. Burns – Vice-President and Director

Since 1990, Andrew Burns has been the President of Burns Energy Systems Ltd. ("Burns Energy"). Through Burns Energy, Mr. Burns has been involved with various industrial projects, such as the development of immersion burners with ceramic tubes, small bore high velocity immersion burners, and submerged combustion equipment. Mr. Burns is currently working on a large pelletizing project in Russia with EPS Inc. Mr. Burns is developing the furnace that will be used in the pelletizing process. Mr. Burns has published papers in various periodicals and books, and presented technical papers at various conferences.

Mr. Burns has a Bachelor of Science Degree in Metallurgy from University Leeds in the United Kingdom.

 

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