BioEnergy from renewable resources is not a new concept. European countries have been producing and burning bioenergy fuels for several years, and recently two U.S. companies have started similar processes.

The Chariton Valley Biomass Project in Iowa is using switchgrass as its renewable fuel source. This project supplements coal, and Show Me Energy Cooperative in Centerview Missouri uses hay among other products as its renewable fuel source.

Prairie Fire BioEnergy Cooperative believes that adapting these models to Western Kansas and its resources is a good fit. Producers already grow the biofuels crops needed, and processing biofuels uses no water.

Our members enhance their revenue stream by:
• producing hay crops for fuel
• using fuel crops suitable for marginal ground
• having an outlet for out-of-condition or high nitrate hay
• continually seek alternative fuel sources
• Growing value added materials on the same acres they currently are utilizing

Prairie Fire BioEnergy Cooperative is the first of its kind BioEnergy plant in the Midwest. Similar plants in the United States are producing primarily a wood based pellet. Most of their products are used in home heating stoves or mixed in with coal-fired burners for power plants. Prairie Fire is taking a different approach, producing fuel for the industrial market instead. The biofuel produced by Prairie Fire is a replacement for natural gas and coal in industrial boilers.

We are NOT producing ethanol. The production of ethanol involves water, and the Prairie Fire process of turning plant based materials into fuel does not use any water. We feel this process fits the resources of Western Kansas and our member producers.

The price of natural gas can have a significant impact on the use of bio-mass products. Even though the price fluctuates, the demand for natural gas has continued to rise regardless of the world's supply. Industrial users contract for their supply of natural gas, and pay a transportation charge to get it delivered to the boiler. Prairie Fire will be able to provide a biomass based product that is of high quality, renewable, and carbon neutral to the environment. Prairie Fire BioEnergy Cooperative is an ecology conscious facility.

The Market
Think of every manufacturing plant that uses a fossil fuel for energy for heating within 100 miles of where you are reading this. Add to that the electricity producing power plants, school boiler systems, and feedlot power plants. Any commercial business that uses heat. Now add the homes that use electricity made from fossil fuels for heating or cooling. With all these energy users you have just identified, they are but a small portion of the market that is available for Prairie Fire products. One medium size boiler at any large food processing plant could use two thirds of Prairie Fire's capacity. The American industry needs our renewable fuel to power the nations economy.

The challenging part of serving this market is the availability of biomass material. Prairie Fire will meet this challenge through our member producers, and help replace non-renewable energy sources. Prairie Fire expects more of these plants to be developed in the next 5 years. We see plants like Prairie Fire playing a vital role in the way America thinks about energy.

The Agricultural Community
To meet this large market demand it will take cooperation with agriculture producers to develop trust between industrial users and producer coops. Producers will gain extra income from their acres, and industrial users will benefit from a clean burning renewable and reliable fuel source. Producers will not have to modify their farming practices to produce for Prairie Fire. They can continue to do what they do best.

Community Impact
Prairie Fire will create a circulation of approximately 8 million dollars into the western Kansas economy that was formally going out of state. Prairie Fire will be creating over 20 jobs and paying 1 million dollars in payroll and benefits. Prairie Fire will also be purchasing over 2.6 million dollars in raw materials through cooperative producers in the first year of operation. Prairie Fire could create over a 15 million dollar impact to western Kansas within three years. We want to continue to support and reinforce the local economy and communities through employment and resource use wherever Prairie Fire has a business, purchasing, or distributing presence.

Competition
Prairie Fire BioEnergy Cooperative is the first bioenergy plant of its kind in the Midwest providing fuel to industrial users. Other plants are producing wood based pellets for the home us. Cellulosic ethanol plants are on the horizon, but the technology is not at the marketplace yet.

Distribution of Products
It is the intent of Prairie Fire to enter into contracts with industrial users of our products with in a 100 mile radius of Healy KS. All our products will be distributed by our own trucks to our customers. Approximately 8 truck loads will leave the plant each day.

Promotion of Products
Prairie Fire will create interest in our industrial products through informational meetings with prospective customers. Potential customers have been identified and dialog started with many industrial natural gas users.

As Prairie Fire moves to the next development stage of pelleted product for the home heating units, products will be made available through local retail locations with expansion to Midwest retailers on as need bases.