FTF Energy

Key Achievements:

• $20.4M Contract Signed: Farm to Flame Energy (FTF) has signed a significant contract Cocoa Processing Company for a 5MW Combined Heat and Power (CHP) plant, in which we are turning their cocoa husks into energy. Guaranteed to provide you a solid return on your investment
• Fivefold Workforce Expansion: Over the past year, we have increased our team from a handful of executives, engineers, and operators to over 25 skilled professionals.
• Operational Excellence: Our generator is actively operational, providing power for electric vehicles and various appliances. See our hands-on experience, supported by our video demonstration of a nat. gas pilot, illustrates the reliability and efficiency of our technology.

Market Opportunity

The global shift away from fossil fuels is accelerating. Over the next 15 years, $5-$10 trillion in fossil fuel generation assets are expected to be decommissioned as nations strive to meet stringent sustainability goals. This transition opens an unprecedented opportunity for renewable energy solutions like ours.

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 4GW installed (enough power to light up half of New York City, all of Nigeria).

Problem

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.

Solution

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. Our 30KW Generator can power 3 homes, a commercial building, or a medium sized farm. We supply up to 500KW with one generator. 

Smokeless / Odorless Combustion Process

Our patented combustion process has allowed us to achieve a blue flame, equating to high combustion purity, reduced maintenance costs and increased operational efficiency. This process makes our generators cleaner and more profitable.

See Our Technology in Action: Watch our demonstration video of the FTF 30KW Generator, funded by the U.S. Environmental Protection Agency and the New Jersey CleanTech Pilot Demonstration Grant.

The video showcases the effectiveness of our technology in real-world applications, verifying its potential for widespread adoption.

Competitive Advantage

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 base load power), and cheaper than anaerobic digestion by half. 

Our generators operate at $0.14/kWh, with no methane, no conflict minerals, and no toxic emissions in our carbon-neutral supply chain.

Patented Fuel Processing

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.

Revenue Model

We make money with Energy As A Service Agreements, also known as Power Purchase Agreements. 

The agreement costs the customer $0.14/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 year payback period. The average PPA equals $250,000 at 40% profit margins.

$5.28M Pipeline 2024-2026

We have $5.28M 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. 

Team

We have a world-class team of co-founders and executives who have built the FTF Generator, and have been funded by 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 $400M in previous companies, selling to Kleiner Perkins, Bessemer Trust, 3i Ventures, and creating an Initial Public Offering on the NASDAQ.

Investment Opportunity: A High-Growth, High-Impact Proposition

We are raising $5 million in investment to scale our operations and meet the growing demand for our generators. This funding will enable us to:

• Accelerate Deployment: $4 million will be allocated to installing 1MW of Farm to Flame Generators along the east coast of the U.S., expanding our market presence.
• Enhance Marketing and Outreach: $1 million will be dedicated to amplifying our marketing, increasing awareness and adoption of our technology.

Investor Benefits: A Profitable Path to Positive Impact

Investing in Farm to Flame Energy offers a unique opportunity to achieve significant financial returns while contributing to a global shift towards sustainable energy. With our proven technology, scalable business model, and growing market traction, we are poised for rapid growth.

Projected Financials:

• Revenue Growth: Our pipeline of $24.4 million in contracts provides a strong foundation for continued expansion.
• High ROI Potential: With a 2.6 year payback period for our generators, investors can expect substantial returns on investment.

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.

Funding Strategy 

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.

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. 

Strategic Exit Options

Our commitment to growth and innovation makes us an attractive target for major energy companies looking to expand their renewable portfolios. Potential exit strategies include:

• Merger and Acquisition (M&A): With a focus on partnerships with industry leaders, an M&A exit could provide a lucrative return for investors.
• Initial Public Offering (IPO): As we scale and solidify our market position, an IPO could offer another profitable exit option.

Farm to Flame Energy is more than just a company; it is a movement towards a cleaner, more sustainable future. By investing in us, you are joining a mission to provide affordable, reliable electricity to millions while reducing carbon emissions and fostering economic growth in underserved regions.

We invite you to join us in transforming the global energy landscape and achieving a future where clean, affordable energy is accessible to all.

Frequently Asked Questions

Competitive Advantage

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).

Expanding Our Technological Edge: Continuous Innovation

Innovation is at the heart of everything we do. As we scale, Farm to Flame Energy will continue to invest in the research and development of our technology, ensuring that our solutions remain at the cutting edge of the renewable energy industry.

Our commitment to product improvement ensures that we maintain a competitive advantage in the market by constantly refining and improving our systems. This includes ongoing improvements in our fuel processing capabilities, increased automation and AI integration into our systems, and expanding the range of materials that can be used in our biomass generators.

By staying ahead of the curve, we are ensuring that Farm to Flame Energy remains a leader in renewable energy technology, providing not only cleaner power but also smarter and more efficient energy solutions for the future.

Project Economics

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.