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Invest in Puerto Rico Renewables LLC

Renewable Fuel Production Utilizing Locally Sourced Feedstocks

Highlights

1
$400M EBITDA projected in 5 years of commercial operations
2
Renewable, drop-in diesel and natural gas produced to meet global standards
3
Feedstocks sourced from local agriculture and waste, promoting positive environmental impact
4
Technology and supply relationships in place
5
PRR is raising $3.2M during the development round to meet goals for bridge/construction financing
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Funds will go to pay for overhead, legal, engineering, agriculture, and permitting costs
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Opportunity Zone investment - ability to defer capital gains tax on investment
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Job creation and positive economic impact for the island of Puerto Rico

Our Team

Puerto Rico is a perfect fit for our biomass to renewable fuel business model, which we have remastered to produce better and more marketable fuels. The addition of chicken manure also provides locally sourced feedstocks that create a local carbon-negative profile.

Together we can provide clean energy that preserves the environment for current and future generations.

Our Story

Puerto Rico Renewables LLC (PRR) was formed to meet the demands of the growing renewable fuels market in the United States and Europe. Our experienced team can provide clean energy solutions that preserve the environment for future generations through the utilization of energy crops (similar to energy cane but with less sugar and higher energy content) and biowaste to produce Renewable Diesel and Renewable Natural Gas.

Current Financing Status

Puerto Rico Renewables is currently in negotiations to finance our next round of funding at a valuation between $200M and $300M. With a signed, non-binding term sheet in hand, we are utilizing WeFunder as a bridge to meet our current development goals.

Our project does not meet traditional crowdfunding investments due to the large capital requirements. Many similar energy infrastructure projects are valued in the billions due to the financial returns and utilize institutional investors. However, we are opening PRR to the marketplace so that we can include, educate and empower those without hundreds of millions of dollars in assets.

Clean, Drop-in, Fuel

The fuels produced by PRR are carbon-neutral due to the utilization of carbon-capturing energy crops we will grow and process in Puerto Rico. The other feedstocks we will use reduce the environmental impact of waste disposal by diverting material from landfills. Our fuels also burn cleaner without the pollutants of standard fossil fuels.

Competitive Advantage

Our feedstock strategy provides us a strong competitive advantage over other renewable fuel producers in the United States. We can utilize standard and emerging technologies to grow and process energy crops within the United States borders while still being able to easily access the European market. Puerto Rico is strategically located between the United States and European shipping lanes to make delivery less expensive and more feasible for our off-take partners. It also boasts heavy cruise ship traffic, another potential buyer for our fuel.

PRR will be first to market with a low-cost, vertically integrated feedstock solution for renewable cellulosic diesel fuel production. While other renewable diesel facilities are coming online as early as 2021, they are dependent on multiple third-party populated supply chains.

Vertical Integration

PRR’s project will vertically integrate feedstock production with renewable fuel production to control feedstock costs and fuel production margins. This also enables PRR to control the quantity and quality of feedstock while reducing costs and environmental impact. This adds benefits to our credit valuation.

Why Puerto Rico 

  • Feedstock availability
    • Puerto Rico contains some of the best agricultural lands in the Caribbean and a long history of growing sugarcane., which is very similar to our energy crop. We will utilize the local knowledge and land to grow our primary feedstock and deliver it to the production facility.
  • Other waste-based feedstocks are also locally sourced and within close proximity to our facility to simplify transportation, use, and processing.
  • Tax Benefits
    • Quality for Act 20 – 4% corporate tax for all exported goods like diesel
      • 4% Fixed Income Tax Rate on Income related to the export of services or goods
    •   0% US Federal Income Tax
    • 60% tax exemption on municipal license taxes
    • Opportunity Zone Status
      • Opportunity Zones offer tax benefits to a business or individual investors who can elect to temporarily defer tax on capital gains if they can make timely investments of those gain amounts in a Qualified Opportunity Fund (QOF). Investors can defer tax on the invested gain amounts until the date they sell or exchange the QOF investment, or Dec. 31, 2026, whichever is earlier.
    • Local Incentives
      • Puerto Rico is pursuing 100 percent renewables, its House of Representatives approved legislation (PS 1121) that revamps the island's energy system.
    • PS 1121 protects net metering for five years, mandates automatic interconnection and net metering for systems under 25 kilowatts, and requires larger systems between 25 kilowatts and 5 megawatts to be approved within 90-days.

Renewable Fuel demand

International oil/gas companies need low carbon fuels as part of their portfolio to meet federal, state, and regional regulations and internal sustainability goals. In parallel, large transportation companies are implementing low carbon fuel strategies. Puerto Rico Renewables is committed to solving problems by producing renewable fuels that meet low carbon fuel standards

Carbon impact of fossil fuels

The use of fossil fuel in the transportation sector alone emits 19.75 Billion tons of CO2 into the environment (2018). PRR is able to produce carbon-neutral fuels to meet the growing demand as we expand our operations.

Landfill waste overflow in Puerto Rico

Currently, Puerto Rico has a landfill crisis with over 75% of the landfills under closure order and over-capacity by 200%+. PRR can divert the organic waste from these landfills for renewable fuel production meeting both the environmental and fuel needs of the island.

PRR will develop, finance, own, and manage the construction and operation of a sustainable energy project that will convert high-yield energy crops, chicken manure, and organic waste into renewable fuels.

The following flow chart demonstrates our production process utilizing our three different feedstocks and combined technologies to produce renewable fuels.

The feedstock is collected from our providers and delivered to a single preparation facility.

After a pre-processing stage, the feedstocks are introduced to the primary conversion units to be broken down into their base molecules. Once this process is complete the BioGas and BioLiquids are then introduced to the liquid and gas processing system.

The processing systems will then convert the BioGas and BioLiquids into renewable liquid and gaseous hydrocarbons that can be used, or blended, with traditional fuels with minimal pollutants (if any) like sulfur and particulate matter.


Traction

  • Industrial site secured – 500 acres of heavy industry zoned land
  • Pre-seed round - $200,000
  • Feedstock and Technologies identified and under contract
  • Developed marketing plan and indicative pricing


Market

The United States and Europe are expected to have a combined demand of 13 billion gallons per year of renewable diesel by 2030. PRR will be able to supply 175 million gallons per year by year 5 with increased expansions contemplated over 10 years.

  • North American growth driven by Low Carbon markets currently in place, as well as the implementation of additional low carbon markets and expansion of Canada’s low carbon fuel standard.
  • European demand growth is largely driven by the implementation of Renewable Energy Directive II.

Competition

While there are competitors in this space utilizing cow manure and other organic waste materials as feedstock, there are no competitors at this point in the Caribbean at our scale. There is a reason the Caribbean was the gateway to the New World, and we are still perfectly positioned between the US and Europe. Our biggest competitors, but more importantly buyers, globally are big oil who are converting their refineries to ride the highly profitable renewable energy wave. Not only is big oil a big polluter, but their feedstocks are not vertically integrated with operations and their production costs are high.

Our model is strategic, clean, and competitive.


Financial Projections

Drawing upon our collective 100+ years of project development experience the PRR executive team has worked to create a realistic timeline given the financial and manpower investments required to complete the fundraising, contractual, agricultural, and industrial milestones to meet project success.

Local Impact

Through the project's total potential investment of $1.5 Billion in the first 10 years, PRR plans to create at least 300 direct jobs and 600 indirect jobs across the agricultural, waste, and industrial sectors. Hiring and educating the local workforce will be paramount to our effort to create a sustainable business in Puerto Rico.

The project plans to process the island's waste to create renewable fuel and energy such as renewable natural gas (RNG) for use in both the transport and energy sectors of the island.


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Overview