Welcome
ECE will build four 110 MGY Fagen plants like this one.
East Coast Ethanol, LLC
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C. Thompson & Associates
Disclosure
East Coast Ethanol, LLC
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C. Thompson & Associates
EAST COAST ETHANOL, LLC (“ECE”) has filed a registration statement
(including a prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the prospectus in that
registration statement and other documents ECE has filed with the SEC for more
complete information about ECE and this offering. You may get this information
for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively,
ECE will arrange to send you the prospectus if you request it by calling (877) 323-
3835; emailing us at investors@eastcoastethanol.us or visiting our web site at
www.eastcoastethanol.us.
Dry Mill Ethanol Process Overview
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Distiller’s Grains (DDGS)
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Co-Product from Ethanol
production
Highly palatable feed
ingredient
Fagen estimates 350,000 tons
per year – 90% of which will
be dried
Typical analysis: 27% protein,
11% fat, and 9% fiber
Available at 10% moisture
within 75 mile radius of plant
Price usually tracks with corn
DDG Consumption – Commodity Specialist Co.
US Ethanol Plant Locations
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*Map represents most recent RFA update.
PADD III-
2 Billion
(Gallons Per Year, Based On 10% Blend)
PADD I-
5.1 Billion
PADD II-
4 Billion
PADD V-
2.6 Billion
PADD IV-
500 Million
Ethanol Volume Potential
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Source: American Coalition For Ethanol
Petroleum Administration Defense Districts
Questions?
Southeast Ethanol Market
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State
Ethanol
Production
Ethanol
Plants Under
Construction
Total
Production
and Under
Construction
10% Ethanol
Market
85% Ethanol
Market
Georgia
100.4 MGY
10 MGY*
110.4 MGY
513 MGY
4,365 MGY
Florida
0 MGY
0 MGY
0 MGY
871 MGY
7,407 MGY
North
Carolina
0 MGY
60 MGY
60 MGY
444 MGY
3,776 MGY
South
Carolina
0 MGY
0 MGY
0 MGY
249 MGY
2,117 MGY
Table Source: Energy Information Administration * - based on press reports for Range Fuels. Soperton, GA
Be the low cost provider of ethanol on the East
Coast
Construct and operate four 110 MGY Fagen dry
grind ethanol plants
Explore expansion opportunities
Plant improvements
Additional dry grind plants
Cellulosic technology
East Coast Ethanol - Mission
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East Coast Ethanol, LLC
C. Thompson & Associates
Limited Liability Company
Open to all investors in states in which ECE shares will be registered, so long as they
meet suitability requirements
10% down payment due at time of subscription but investor does not become an owner
until funds are released from escrow
In order to release funds from escrow, ECE must raise at least the minimum offering
amount and obtain a debt financing commitment for all of the debt necessary to fund the
project*
ECE has up to 12 months from the date the offering begins to meet these conditions or
investors’ funds must be returned from escrow to the investors
If investor becomes owner - One unit, One vote
Income allocation not subject to self-employment tax (may not apply to investors who are
full-time employees of ECE)
Pass through entity – single level taxation
Like any investment, stock in ECE can appreciate or depreciate based on inherent
project risks
*A debt financing commitment is not the same as executing debt agreements and there may be a risk that
ECE releases funds from escrow based on the commitment but then does not close the debt financing
transaction. In that event, your investment may be held until a replacement lender is found, may be returned
to you or may be used by ECE to start building the project. Without sufficient debt financing, ECE will have
difficulty completing the project and your investment could lose significant value.
East Coast Ethanol is a…
East Coast Ethanol, LLC
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Industry Leading Partners
East Coast Ethanol
Board of Directors
(17 Members)
Project Management
C.Thompson & Associates
Design/Build
Partners
Professional
Services
Strategic
Partners
Strategic
Resources
Fagen, Inc.
ICM
Brown Winick – Legal
Counsel
Christianson & Associates –
Forecasts
Hein & Associates –
External Auditing
US Water
US Energy
Ethanol Marketing
Grain Marketing &
Procurement
Norfolk Southern
CSX
TranSystems
PRX
Southern Ethanol Council
Local and State Economic
Development Resources
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Executive Committee
GA, FL, NC, SC Site
Development Committees
Regional Fuel Terminals and Plant Locations
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ECE Comparative Advantage
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Business Model
Corn
Ethanol
DDGS
Gross
Margin
Ext.
Origination
$ 5.00
$ 5.65
$ 1.61
$ 2.25
$ 88,524,827.49
Destination
$ 5.50
$ 6.27
$ 1.88
$ 2.64
$ 103,799,224.29
ECE Advantage
$ (0.50)
$ 0.62
$ 0.27
$ 0.39
$ 15,274,396.80
*Margins and pricing are quoted per bushel. Each plant will consume 39,286,000 bushels of corn annually.
Price Spreads from Iowa to Jacksonville as of 9/15/08
Corn
$0.50/bu
Source - Palmetto Grains
Ethanol1
$0.22/gal
Source - Eco Energy
DDGS
$30.00/ton
Source - Palmetto Grains
(1) – rail cost minus local trucking cost
Campbellton, FL Site Plan
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Terminals
- Panama City (60 mi)
- Freeport (60 mi)
- Niceville (60 mi)
- Tampa (275 mi)
Ports
- Panama City (60 mi)
Dual rail access via
Bayline Railroad
Jesup, GA Site Plan
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Terminals
- Savannah (65 mi)
- Jacksonville (95 mi)
- Macon (125 mi)
- N. Augusta (125 mi)
Ports
- Brunswick (50 mi)
- Savannah (65 mi)
- Jacksonville (95 mi)
Chester, SC Site Plan
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Terminals
- Charlotte (50 mi)
- Spartanburg (55 mi)
- Belton (90 mi)
- N. Augusta (120 mi)
Ports
- Charleston (160 mi)
Dual rail access via
Lancaster & Chester
Railroad
Seaboard, NC Site Plan
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Terminals
- Chesapeake (75 mi)
- Richmond (65 mi)
- Greensboro (125 mi)
- Selma (100 mi)
Ports
- Norfolk (75 mi)
- Wilmington (130 mi)
We expect to receive approximately $126,000,000
in incentives from the states of North Carolina,
South Carolina, Georgia and Florida.
Some of these incentives may be structured over
a period of time, however, the final amounts and
time periods will be determined once we finalize
and sign the incentive agreements.
State Incentives
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Start indication of interest meetings – March 2008
Planned effective date with SEC – September 2008
Financial close – December 2008
Start construction – January 2009
Fagen can begin construction simultaneously
Construction schedule – 18 to 22 months per plant
First plant start-up – Summer 2010
Timeline is contingent upon successful sale of membership units and financial close.
Other potential project risks include construction delays, problems obtaining
required permits, and unknown environmental issues related to plant sites.
Time Line Goals
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Sources of Funds
Senior Debt
Term Loan
Revolving Line of Credit
Member Equity – seed capital
Member Equity
Total of funds
ECE Financing Plan
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Total of funds will remain constant - additional debt may be raised to cover any equity shortfalls.
We can give no assurance or guarantee that we will be able to obtain sufficient debt financing or that
debt financing will be available on favorable terms especially in the current tight credit environment.
$374,000,000
$66,000,000
$9,800,000
$421,700,000
$871,500,000
Plant Construction
Site Development, Rail, Utilities,
Insurance, Contingencies, Misc.
Inventory & Working Capital
Financing, Costs of Raising Capital,
Organizational, and Preproduction
Costs
Total
Approximate Use of Funds
East Coast Ethanol, LLC
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These figures are estimates only and the actual use of funds may vary significantly depending on
factors encountered as projects develop.
$587,800,000
$142,320,000
$74,640,000
$66,540,000
$871,500,000
Investor Requirements
Meet suitability requirements in states where ECE is registered
Minimum purchase - $15,000 (equals one unit)
Additional purchases made in increments of $5,000
Unit Transfers
East Coast Ethanol will establish a qualified matching service
for transferring membership units – units will not be listed on a
national exchange. Units will be considered illiquid securities
and you will not be able to readily sell your securities.
Transfers can commence after first plant start-up
Stock Facts
East Coast Ethanol, LLC
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10% subscription payment due at signing with promissory note for balance (this
down payment is non-refundable and ECE may pursue legal options for balance
if not paid in a timely manner)
Balance due within 20 days after Board calls balance, which can occur any time
after the minimum offering amount is subscribed
Escrow terminates when:
equity is raised, and
debt financing commitment for the project is obtained*
Failure of East Coast Ethanol to achieve financial close and terminate escrow
within 12 months of date of effectiveness results in funds returned with interest
and in no event will less than the full amount of the principal investment be
returned to investors
Investor does not become an owner until ECE satisfies conditions for releasing
funds from escrow
Minimum offering amount to terminate escrow is $253,650,000
Escrow Procedures
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*A debt financing commitment is not the same as executing debt agreements and there may be a
risk that ECE releases funds from escrow based on the commitment but then does not close the
debt financing transaction. In that event, your investment may be held until a replacement lender
is found, may be returned to you or may be used by ECE to start building the project. Without
sufficient debt financing, ECE will have difficulty completing the project and your investment
could lose significant value
Categories
Ethanol Price (net price)
Ethanol per bushel of corn (gal)
DDGS Price (gross price/ton)
CO2 (gross sales/ton)
Corn Price (per Bu.)
Energy Use (BTU/Gal.)
Electricity (per kilowatt)
Natural Gas (per million BTUs)
Employees (per plant)
Estimated ROI (year 5)
*Unfavorable moves in commodity and energy prices can have a significant negative impact on
ECE’s profitability.
ECE Assumptions
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$1.96
2.8
$147.00
$12.00
$4.11
32,000
$.06
$9.00
45-50
22.22%
ROE Matrix (Year 5)
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7 Year Historical Price Averages (Source: Pro Exporters): Corn = $2.58/bu Ethanol = $1.68/gal
The above matrix is not a guarantee of future results and should not be relied on as such. You should evaluate this information in
conjunction with the Company's prospectus which can be accessed at our website: www.eastcoastethanol.us
Ethanol
$1.60
$1.90
$1.96
$2.20
$2.50
$2.80
$3.00
Corn
$8.00
-117.86%
-87.63%
-81.59%
-57.40%
-27.17%
3.06%
23.21%
$7.50
-104.90%
-74.67%
-68.62%
-44.44%
-14.21%
16.02%
36.18%
$6.50
-78.98%
-48.75%
-42.70%
-18.52%
11.71%
41.94%
62.10%
$6.00
-66.02%
-35.79%
-29.74%
-5.56%
24.67%
54.91%
75.06%
$5.50
-53.06%
-22.83%
-16.78%
7.41%
37.64%
67.87%
88.02%
$5.00
-40.09%
-9.86%
-3.82%
20.37%
50.60%
80.83%
100.98%
$4.50
-27.13%
3.10%
9.14%
33.33%
63.56%
93.79%
113.94%
$4.11
-17.02%
13.21%
22.22%
43.44%
73.67%
103.90%
124.05%
$4.00
-14.17%
16.06%
22.10%
46.29%
76.52%
106.75%
126.90%
Failure of Fagen or ICM to perform contractually could jeopardize
some or all ECE plants
Construction delays could devalue investment units if the sale of
ethanol or co-products are delayed
ECE will rely solely on Fagen and ICM to supply all of the
technology necessary to build and operate all plants – we expect that
they will either own or license this technology
ECE has no operating history and is not experienced in selling
securities
Current credit conditions have tightened and could inhibit ECE’s
ability to fully capitalize its projects
ECE could have to modify plans to construct 4 plants simultaneously
if it is unable to raise the required financing
Corn prices sustained at current historical highs would negatively
impact ECE’s profitability
Project Risks
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A Clear Choice?
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For more information and a prospectus,
please visit us at:
www.eastcoastethanol.us
Investors in North Carolina, Virginia and Maryland
can obtain more information from our broker-dealer,
Thomas Securities LLC, at 404-504-6050 or by visiting
its website at:
www.thomassec.com
ECE Website and Prospectus
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