Nova Biosource Fuels (NBFA) 8-K Regulation FD Disclosure

Exhibit 99.1

 

Specialists in Energy Technologies Fourth Annual Energy Technology Conference October 19, 2006 | Baker & McKenzie Conference Center | New York Nova Biosource Fuels, Inc.

 

NOVA’S Mission NOVA’S mission is to profitably commercialize its proprietary biodiesel technology and become the leader and dominant provider of biodiesel. NOVA’S Strategic Focus To build, own and operate multiple biodiesel refining facilities globally using its unique process refining technology.

 

Senior Management and Directors Charles Vignieri Honorary Chairman - Founder, Kenosha Beef International(KBI) - Over 55 years experience in meat packing industry Kenneth Hern Chairman and CEO - President, Texaco Saudi 1981-1984 - Vice Chairman and Managing Director, Texaco Nigeria 1984 -1989 - President, Texaco Brazil 1989 - 1994 Jody Powers COO - President, Halliburton Energy Services 2000 - 2002 JD McGraw President - Investment banker – advised over 150 transactions Leon Van Kraayenburg VP Finance - Over 25 years experience - Senior VP and CFO, EnerTeck 2002 Richard Talley President Biosource America - Professional Engineer - Over 19 years experience in process development Russell SammonsVice President –Operations - Over 11 years experience in refinery engineering and operations at ExxonMobil

 

Kenosha Beef Chartered research to improve management of tallow Biosource Fuels 3 year old technology engineering company Fully operational pilot refinery and IP proving out patented technology Seasoned biodiesel engineering staff Mueller construction partnership Biosource America Private company purchased Biosource Fuels assetsNova Oil, Inc. (OTC: NVAO) Reverse merger into public entity Malone and Bailey, PLLC – SEC Auditors Jones & Smith LLP – Intellectual Property Counsel Nova Biosource Fuels, Inc. (OTC: NVAO) Recent Name Change Company Background

 

2000 2003 2005 2006 2001 2002 2004 Biosource Fuels established by KBI to research and develop technology that can convert high FFA feedstock to biodiesel 80,000 gallon per year pilot plant completed in Butte, Montana Construction of 10 MGY Clinton County begins 2006 Historical: February: Biosource America acquires Biosource Fuels March: Reverse merger into NOVA Oil July: Pvt. placement completed 2006/2007 Planned: October: 10 MGY Clinton County commissioning January: 20 MGY Anamax expected to be commissioned 2007 Company History

 

Plant Status Capacity (mil gal/yr) Online Status Feedstock Nova Ownership Contract Size (mil) Access Off-take Clinton Anamax Scott Petroleum Oklahoma Illinois 10 20 20 Location Clinton County, IA DeForest, WI Greenville, MS Nov. ‘06 Jan. ‘07 NA H1 ‘07 0% 50%(1) Soybean Animal Fat Animal Fat & Fish Oil $6.0 $17.0 $12.5 TBD 60 Rail, Truck, Barge ConAgra – Veg. Oil & Animal Tallow 100% H2 ‘07 ConAgra $60.0 (2) 60 Seneca, IL 100% Rail, Truck, Barge H2 ‘07 NA Koluzny – Veg. Oil & Animal Tallow $60.0 (2) NA NA NA 1) Nova has no equity stake, but has agreement in principle to own 50% of the production from the Scott facility. 2) Estimated cost of construction. Truck Rail, Truck, Barge Rail, Truck

 

Nova Today Headquarters: Houston, TX Proprietary Process Technology Multiple feedstocks Continuous process Eliminates water wash Currently in various stages of the design and construction phase with three full scale production facilities for third parties In addition, announced agreement for 60 million gallon per year facility in Seneca, IL for own account Current Capitalization Shares Outstanding: 84.6 million Recently completed an approximately $18.9 million private placement on July 13, 2006 9 Month Contract Revenue: $12.4 million Experienced Management Team Former executives from Halliburton, ExxonMobil, Texaco

 

Biodiesel sales have increased over 100% each year since 1999 The U.S. biodiesel fuel market in 2005 was approximately 75 million gallons By 2010 demand is expected to reach 800 million gallons with a market value of $2 billion, accounting for approximately 2% of the 60 billion-gallon per year total fuel market Biodiesel Market Source: National Biodiesel Board

 

Market Drivers Higher Oil Prices Government Mandates State and Federal Incentives Nation’s desire to be less dependent on foreign oil Unstable Middle East Global demands on oil (India and China) Nova’s Competitive Advantages Proprietary Patented Technology Seasoned Management Team Multifeedstock Business Model Profitability without Federal Tax Credit at current diesel prices and commodity pricing Market Drivers & Advantages

 

Key Elements of Nova’s Solution Nova’s Success Strategy Feedstock: Securing contractual relationships with national food & rendering companies to provide low cost, continuous supply of feedstocks Process: Deploying a unique continuous stream process technology capable of handling inexpensive feedstocks thereby providing an anticipated 35% reduction in cost compared to competing technologies Distribution: Securing relationships with large fleet owners and diesel fuel brokers committed to take or pay contracts for the purchase of biodiesel produced

 

Multi-Feedstock Process Capability with High Yields Lower cost feedstock Minimized Waste Streams by Eliminating the Water Wash Process Less waste streams / Improved product quality Continuous Process vs. Batch Processing Allows economies of scale High Quality Glycerin Production (Tech grade – 97% pure) Increased Revenue Streams Continual Energy Recovery Effective recovery and utilization of waste heat Turnkey Construction with National Builders Improved Time to Market / Quality assurances Nova’s Proprietary Process

 

Proprietary technology can efficiently process over 25 different feedstocks Significant international opportunity Nova’s technology can process three grades of palm oil (Refined, crude, distillate (PFAD)) ~ equivalent 1.15 billion gallons ~1/3 exported – largest opportunity ~1/3 human consumption ~1/3 animal consumption Multi-Feedstock Capability (1) Source: USDA 2004 Yellow Grease 1.523 Lard and Grease 1.1 Poultry Fat 1.0 Edible Tallow 1.8 Inedible Tallow 3.7 U.S. Fat Production (billion lbs) (1) $0.50/gal Fed. Excise tax credit

 

Fats, Oils & Greases (FOG) + Methanol & Catalyst = Glycerin Fatty Acid Esters (“Biodiesel”) Biodiesel… Is a low polluting, biodegradable fuel Feedstock can be anything that contains gylcerides and fatty acids included vegetable oils, animal fats and reclaimed greases Blends can be used in any diesel engine with no modifications A perfect substitute for diesel Potential for 100% replacement; easily blended in diesel Can utilize existing diesel storage infrastructure Can be transported via pipelines

 

40 hours vs. 8 hours for Nova’s continuous transesterification Significant wastewater stream using batch process Continuous transesterification results in improved product quality Continuous process results in lower energy operating costs Traditional Batch Transesterification Glycerin Biodiesel Vegetable Oil Catalyst Batch Production – Traditional Batch model (from National Biodiesel Board) Alcohol Recovery Neutralization Distillation SettlerEvaporation Alcohol Washing Reactor Purification Evaporation Settler Mineral acid Fatty Acids

 

Conventional biodiesel technologies generate significant amounts of wastewater as part of the refining processes A typical 50 MGY plant will generate approximately 20 million gallons of polluted wastewater per year Requires permits and the installation of equipment to clean and process The water wash process fails to completely eliminate contaminants, thereby reducing the quality and consistency of the biodiesel produced Impacts final quality of fuel when mixed with petro-diesel By eliminating water wash, Nova assures high quality, consistent fuel production Eliminates permitting and facilities typically required to process waste water Wastewater

 

Feedstock & Distribution RAW MATERIAL (MILLION GALLONS) 60 GUARANTEED COMMODITY SUPPLIER 60 REGIONAL FAT/GREASE SUPPLIER MULTI FEEDSTOCK PROCESS TECHNOLOGY BIODIESEL FUEL CONTRACTS GUARANTEED ASTM QUALITY (MILLION GALLONS) 120 TAKE OR PAY WITH NATIONAL DISTRIBUTOR

 

Clinton County, Iowa – 10 million gallon per year refinery Design / Build in 2006