INVEST
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If you invest, you're betting FTF Energy will be worth more than $50M in the future.
13% of the world still lacks access to reliable electricity, and their best alternative is expensive, polluting and toxic backup diesel generators.
FTF's smokeless generators provide sustainable electricity at half the cost of diesel generators.
$5-$10 trillion of fossil fuel generation assets are bound to be decommissioned in the next 15 years, in order to meet the sustainability goals set by the U.S. and E.U. in order to prevent a climate catastrophe.
FTF Energy is uniquely positioned to provide the 24-hour renewable power needed to displace fossil fuel use.
We are tackling the $4.4T Global Power Market, and specifically disrupting the $23B Diesel Generator Market. Our serviceable obtainable market goal is $3.4B in Annual Recurring Revenue by 2032, with 4,000,000KW, or 150,000 Farm to Flame Generators installed globally.
In most of the U.S., getting reliable and affordable electricity is as easy as turning on a switch.
But 700 million people around the world do not have access to affordable and reliable, clean electricity.
This population relies on expensive and dirty diesel generators for constant power.
It costs 3-4x the regular electricity price on the grid to operate diesel generators. The toxic smoke that comes off diesel exhaust kills over 21,000 people per year….
And if for some reason they can’t get their hands on the diesel fuel, well they have no power.
We have built the Farm to Flame Generator, a carbon-neutral electricity asset that is just as reliable as diesel…but half the cost, with no smoke and no odor.
We use fuels like sawdust, cornstalks, and paper waste for electricity generation.
One of our 30KW Generators can power 3 homes, a commercial building, or a medium sized farm. We supply up to 500KW with one generator. Any needs larger than 500KW, and we build a stationary Heat and Power Plant.
Our patented smokeless and odorless combustion process has allowed us to achieve a blue flame, equating to high combustion purity, less generator maintenance than traditional wood chip generators, and increased revenue.
This is a real picture of the blue flame we achieved, and here is a video of the FTF 30KW Generator that we built in 2021-2023 with funding from the U.S. Environmental Protection Agency, and the New Jersey CleanTech Pilot Demonstration Grant
We are cheaper than existing options. We’re cheaper than diesel by half, solar + storage by 2/3rd (as the battery paired with the panels prohibits cost effective baseload power), and cheaper than anaerobic digestion by half.
Our generators operate at $0.14/kWh. We have no methane, no conflict minerals, and no toxic emissions in our carbon-neutral supply chain.
We have unique fuel processing procedures that enable the smokeless-odorless flame to persist during electricity generation. We fine grind sawdust sized material to achieve smokeless combustion.
We also use LIDAR Machine Learning to assess fuel quality and increase full-stream purity by separating non-viable components from the fuel, increasing uptime and generator revenue.
We make money with Energy As A Service Agreements, also known as Power Purchase Agreements.
The agreement costs the customer $0.14-$0.21/kWh, structured just like an electricity bill that you receive at the end of the month. They don’t have to supply the upfront cost of the equipment, but experience savings on diesel over a 10-year contract.
It affords us a 2.6-3-year payback period. The average PPA equals $250,000 at 40% profit margins.
We also sell to larger organizations with Engineering Procurement and Construction Agreements (EPCs), in which the client purchases the equipment from Farm to Flame Energy and engages in a yearly Operation and Maintenance Contract (O&M) to maintain equipment uptime.
Here is the financial model for a power-purchase agreement with the breakdown of all operating and capital components of the $/kWh:
We have $20M in the pipeline for 2024-2026
We have a $20.4M Engineering, Procurement, and Construction Contract + a 3-Year Operation and Maintenance Contract with Cocoa Processing Company, a large producer of chocolate products for Golden Tree, in which we are converting their cocoa husks into Combined Heat and Power.
We are signed into a Services Agreement with Georgia Pacific, the largest wood-waste electricity producer in the country, in which we are creating a $1.7 Million Annual Recurring Revenue replacement of their natural gas paper dryers with Farm to Flame dryers.
We are further signed into a 20-Year, $4.4M Combined Heat and Power Purchase Agreement with Lyndon Furniture, a Vermont Furniture company, in which we are converting their wood-waste into heat and electricity to power their operations.
We have a world-class team of co-founders and executives who have built the FTF Generator, and have been funded by great organizations including Cisco, The U.S. Environmental Protection Agency, and Georgia Pacific for over $2M in non-dilutive funding.
Our advisors have successfully funded and exited over $300M in previous companies, selling to BMW, IPO, GE in the wholesale power industry, and recently Michelin.
This $5M raise will enable Farm to Flame Energy to install 1000KW of Farm to Flame Generators on the east coast in our seed stage. We will create over $1.1M in additional annual recurring revenue to our $22M in existing projects.
We will commence installment of 50MW ($50M ARR) of Farm to Flame Generators.
And we will hire a world-class team of engineering managers, operators, and sales leaders to help us get there.
In the next 24 months we will be abating over 396,000 tons of carbon dioxide from diesel generators.
Join us, as we scale to 4GW, with over $3.4B in annual recurring revenue and $12B in carbon neutral electricity assets, as we expand energy security globally.
Demonstrating our technology through our initial pilot and R&D projects allowed us to secure the clients, equipment suppliers and feedstock necessary to continue deploying FTF Generators.
The funding capital raised will enable FTF Energy to build a team that can service the clients waiting for our solution and prepare further expansion to 1MW of FTF Generators on the ground, while entering long-term contracts for +50MW of future generator installation.
At the end of the 24-months following the raise, FTF Energy will have 1MW of capacity deployed through 3-4 locations. At this point, we could have ~$1.1M in annual recurring revenue. We will be in the middle of constructing the 5MW plant for Cocoa Processing Company, which will provide $17.25M in fixed revenue, and $1M in yearly revenue for three years. We will then be in an ideal position to pursue a Series B round to accelerate growth. Projections cannot be guaranteed.
FTF Energy will work arduously to provide its early investors meaningful returns. Exit options include M&A with energy conglomerates or creating our path towards IPO.
The environmental impact and community benefits of our technology has enabled FTF Energy to raise funding from social impact funds and federal organizations (click links below to read more).
BNY Mellon in Partnership with Innovation Works held a social impact competition, in October 2023, in which FTF Energy Won First Place and $150,000 in non-dilutive funding to Standardize our Generator Operating Procedure
The New Jersey Commission of Science, Technology, and Innovation awarded Farm to Flame Energy a $250,000 of non-dilutive funding in July 2023 to demonstrate our generator outputting electricity and charging electric vehicles.
The Richard King Mellon Foundation invested $200,000, through a funding round designed to support socially responsible companies. We are creating clean-tech jobs in the Pittsburgh area, enabling us to provide transition opportunities to workers that were previously part of the coal industry.
FTF won the $150,000 Grand Prize from the NY State Fuzehub commercialization competition. From a pool of hundreds of candidates and dozens of finalists, we were chosen as the number 1 startup-venture in the state,
Capital Innovators, VC Group, invested $50,000 in FTF's Seed Round. St. Louis has the ambitious climate change goals and biomass availability our technology needs to succeed. This accelerator investment can pave the way to a larger $500K - $1M investment from their venture group.
The U.S. Environmental Protection Agency awarded us $100,000, through a competitive innovation program aiming to create new uses for non-hazardous materials. We worked alongside the EPA for 6-months to build and test our current 30KW Generator. Our incubation partner, the Syracuse Center of Excellence, matched this investment with an innovation fund grant, and the NJ Commission of Science, Innovation, and Technology matched $25,000.
The NJ Commission of Science, Innovation, and Technology awarded $75,000, to support the development of clean technologies that can positively benefit the state. Their funds enabled FTF to tailor the FTF Generator to our New Jersey greenhouse client, Think and Grow Farms.
Cisco, the largest company in the networking and communications devices industry, awarded FTF Energy $50K grant to further commercialize our technology.
We are partnered with organizations that are helping us commercialize our technology, access funding and identify pilot projects. Click links below to read more:
NewLab inducted FTF as part of their Founder Fellowship program to work at the Brooklyn Navy Yard, which opened doors for us to work together with them on pilot projects.
REACH Accelerator is sponsored by the Department of Energy, partnered with the Colorado State University (CSU), a hub for biomass energy technology development. They provide $50,000 towards in-kind services to FTF Energy.
PGH LAB is a program from the City of Pittsburgh focused on piloting innovative technology. Through the program, we received an electric vehicle charger to pilot the use of FTF Generators as electric vehicle charging stations to provide energy for the city-owned electric fleet.
New York State Energy Research and Development Authority enables us to access sponsored interns and mentors. Koffman Southern Tier Incubator and Scale for Climate Tech have worked with us to refine our manufacturing strategy, alongside providing working capital funding.
DeltaClimeVT is sponsored by Vermont Utility companies. They chose FTF Energy to deploy pilot projects within the state of Vermont. Their electricity rates are >$0.18/kWh and so we can provide clients in this area with substantial savings while helping the utilities meet growing supply needs.
FTF Energy is uniquely positioned to provide the most competitive solution to clients looking to run operations off-grid, while transitioning away from fossil fuels. Our patented combustion process allows a complete combustion that maximizes thermal efficiency, and reduces Carbon Monoxide levels <50ppm, eliminates Volatile Organic Contents and the toxic emissions that are typically present when burning biomass.
Diesel Generators run at $0.30/kWh, and so they are 2X more expensive than FTF Generators. The toxic emissions caused from combustion are health hazardous, and ~1.5kg of CO2 are released per kWh. They are the most popular solution due to the convenience of accessing diesel from any gas station.
Natural Gas generators output 0.6 kg of CO2 per KWh. Although they are more affordable than diesel generators, the need for pipeline infrastructure to distribute the natural gas prevents this fossil fuel from being ubiquitously used in the developing world.
Anaerobic Digestors (or bio-digesters) rely on creating methane from biomass decomposition. Predicting biomass decomposition is extremely complicated and dangerous to do at scale, which has resulted in multi-million dollar companies like Harvest Power to fail in the past. Anaerobic digestion is better suited for processing other types of organic waste, such as food scraps, manure and sewage sludge.
Solar + Storage costs >$0.45/kWh when used for 24-hours. This prevents current diesel generator users to switch to renewable options. The intermittency of solar is not capable of delivering the reliable base load power that businesses need to operate when the grid fails. The use of conflict minerals to create batteries has resulted in a shortage of raw materials, which is causing a rising trend in the cost storage ($130/kWh in 2021 vs $135/kWh now).
The following is the cashflow associated with a 200KW FTF Project.
Upon FTF self-funding a 200KW Generator, FTF receives ~$139,380/year in profit from an $600,000 initial investment. This 23% IRR is more than the standard return for solar project in the U.S. (13%) and mini grid projects in Nigeria. (15%)
The long-term strategy is to replicate the approach of solar project developers, in which project finance is leveraged to deploy revenue generating assets.
In order to access affordable project finance, FTF needs to build a record of revenue from similar projects. These will allow us to access more competitive debt and continue growing organically.
