Fully Integrated Developer
Since its inception in 1987, the Biothermica group has evolved from a technology company to a fully integrated carbon and energy project developer, managing all aspects of the development, financing and implementation of its projects. Biothermica will invest in VAM carbon and energy projects, generating revenues associated with the monetization of carbon credits and other attributes (i.e. electric power, thermal heat). Biothermica strongly believes that its proven and integrated approach, bringing together technological and financial expertise within one (1) entity, represents a significant advantage over the approach of its competitors.
This strategy enables Biothermica to fully control and ensure an optimal performance at each stage of the project, thereby maximizing the generation of revenues. The company oversees all development stages, from the design of the project to the commercialization of renewable energy and emission reduction credits.
Biothermica's business approach is based on the recurring sale of carbon credits and/or power associated with the destruction of VAM at underground coal mines worldwide.
A Flexible Business Approach
Biothermica offers a flexible range of options for mine owners to unlock and share the economic value of their VAM, including the following two (2) business models:
- Joint venture (JV) : Project costs and revenues (from the sale of carbon credits and/or power) are shared between Biothermica and the mine.
- Royalty based approach: No investment is required by the mine, which benefits from royalty payments.
Biothermica can also supply turn-key projects, applying either a “build and operate” model or “finance, build, own and operate” model. This business model is used in the following cases:
- In jurisdictions where carbon credits cannot be generated (i.e. mines obligation to reduce or pay a tax on VAM emissions)
- VAM rights are owned by another VAM project developer.
Biothermica also proposes an array of other flexible commercial approaches.
A VAM carbon project is typically implemented followings these steps:
1 - Non-Disclosure Agreement (NDA) between Biothermica and Coal Mine
2 - Identification of potential vent shafts(s)
3 - Preliminary Financial Analysis
4 - Strategic Alliance Agreement with coal mine
5 - Financing Strategy
6 - Emission Reduction Purchase Agreement
7 - Permits and authorizations
8 - Financing Closing
9 - Project Implementation (EPCC - Engineering, Procurement, Construction & Commissioning)
10 - Project Registration (Listing)
11 - Operation and credits monitoring
12 - Verification (audit of each reporting period)
13 - Monetization
Integrated services – a win-win approach
Biothermica is offering all the above services with its own staff, minimizing interfaces with various stakeholders and all related risks such as construction delay, over-budget, potential litigations, underperfomance, which optimizes the Internal Rate of Return (IRR) for the all the parties.