ALEX EDWARDS III – RENEW ENERGY RESOURCES, INC. (REER)
CEO Interview - published 09/15/2008

ALEX EDWARDS III, CEO of Renew Energy Resources, Inc., leads the company's 
corporate strategy to vertically integrate renewable energy markets. Renew is 
actively evaluating multiple renewable energy projects and Mr. Edwards brings 
strong leadership, marketing and executive experience to spearhead these 
efforts. Prior to joining Renew on January 21, 2008, he served as Managing 
Partner of Trident Consulting Partners, a private consulting firm specializing 
in executive leadership and structured finance for micro-cap companies. Mr. 
Edwards has served in multiple executive leadership roles and on numerous Boards 
of Directors including Nanobac Pharmaceuticals, NanoChemical Systems Holdings 
360 Partners, 360 Energy, and American Enterprise Corporation. From 1997 to 
2002, Mr. Edwards was an executive at SRI/Surgical Express, where he was Vice 
President, General Manager and, ultimately, President. Mr. Edwards served as an 
officer in the United States Navy in Norfolk, Virginia, and is a 1987 graduate 
of the United States Naval Academy.

SECTOR – ENERGY

TWST: May we start with a short history and overview of your company?

Mr. Edwards: Renew Energy Resources was formed out of a company called 
VitalTrust Business Development Corporation. It was originally structured to 
look into ventures under the rules of the BDC (Business Development Company). We 
subsequently changed the direction of the company, acquired a number of small 
private renewable energy companies, both consulting businesses and businesses 
that had contracts for the delivery of renewable energy, specifically in 
biodiesel. And we spent the last year developing a team of people, which we 
think is one of the best teams in the industry, including the likes of our Chief 
Technical Officer, Mike LoCascio. Mike is a nuclear engineer from Iowa State and 
has been involved in the alternate energy business for the last 10 years with 
ethanol and biodiesel development projects, from development all the way through 
to operating biodiesel facilities. 
Also, Jim Blair, who is one of our country's rare gems in the resources and 
renewable energy space, as well as me, and our CFO, Stephen Steckel, who came to 
us after being a senior executive at KeyBank in Cleveland. What we've really 
tried to do was put together a team of people who could work to vertically 
integrate the alternative energy space, and what I mean by that, to take and 
bring financial risk modeling across all aspects from feedstock to production to 
sales, such that now we have a viable enterprise that will withstand the ups and 
downs both in fuel, biodiesel and ethanol pricing and feedstock shifts that have 
hurt the industry so much.

TWST: Does the company own any assets at this point?

Mr. Edwards: The company does have assets. The assets are equities that were in 
the company when it was the Business Development Company. They sit in the 
company and help the company with its ability to leverage and develop credit 
facilities to fund our alternative energy business.

TWST: Do you expect your activities to also include biodiesel conversion plants 
or do you intend to act solely as consultants?

Mr. Edwards: The goal of the company, as I said, is to create vertically 
integrated solutions and to have a broad range of opportunities from consulting, 
actual operational management to actual physical ownership, depending on what 
the opportunity is and where we bring the most value to the end-user and to the 
shareholders of Renew. In fact, right now we are working on a number of 
different opportunities that include consulting, active operational management 
and active building or acquisition of physical facilities.

TWST: Would you elaborate further on your current activity?

Mr. Edwards: Currently we have taken the approach of looking at non-food based 
feedstock and looking at how you can procure these at a fixed cost or relatively 
stable cost over the medium to long term. And we're talking years, not quarters. 
We've identified a number of these different opportunities in the Northeast, in 
the Southeast and in the Midwest that will allow us to take feedstock to a 
current existing facility and produce biodiesel via a tolling arrangement. We 
are also now more aggressively going after building new facilities using some of 
the newer technologies that exist for high water content and high fatty acid 
content type of oils. We anticipate in the next nine months having at least one 
facility up and operating.

TWST: Have you approached any existing facilities and what sort of feedback have 
you received?

Mr. Edwards: Unfortunately, most of the existing facilities we are familiar with 
are based on soybean oil. Soybean oil, while it is a great source of feedstock 
for biodiesel, also has been subject to some extreme price pressures, not the 
least because of the fact that it's a food-based feedstock. And right now, 
because of the price of soybean oil, most of these facilities are shut or are 
operating at very minimal levels. And so the reception and feedback we get from 
operators is typically very good, especially if we are going to bring in some 
capital dollars to help them modify their facility away from food-based 
feedstock.

TWST: Will you be working exclusively on the biodiesel side of renewable energy?

Mr. Edwards: No. We have focused on biodiesel first because it is in great 
demand. Major cities like New York are putting in place green initiatives to 
reduce green house gas emissions. Blending petroleum diesel with biodiesel helps 
meet those initiatives. 
We are also looking at ethanol, solar and other types of alternative energies. 
But we will take a wait and see approach when it comes to some of those types of 
activities. We have looked hard at taking different byproducts of the ethanol 
process and making it into biodiesel. We have also explored a number of 
opportunities in algae, which we feel is the fuel of the future, but still has a 
long way to go.

TWST: What do you see as the best opportunity for you going ahead?

Mr. Edwards: Immediately it's delivering biodiesel based on waste vegetable oil 
that's collected around the country, building facilities that represent a size 
appropriate scaling for the distribution and collection of those types of oils. 
What we've looked at is: what's the logistics, what's the appropriate size for 
an area, and then how do you use the waste products, waste vegetable oil, trap 
grease and other things to make biodiesel very cost effective? If you do that, 
then we believe ultimately we can bring in and blend some of the higher cost 
feedstock to make the biodiesel cost effective. Looking forward we see a lot of 
political pressure to expand the various incentives available to renewable 
energy producers. If those credits and incentives are put in place, it will just 
make an already solid business model even better.

TWST: There has been some negative discussion on the subsidies that the 
government has given to renewable energy sources, specifically ethanol. How is 
the environment for further subsidies as far as biofuel is concerned

Mr. Edwards: Renewable fuel subsidies are necessary to support the development 
of this industry. As a country, we will not achieve energy independence 
overnight. The corn ethanol industry is just now achieving critical mass after 
eight years of rapid expansion. Now the industry is looking to retool to handle 
cellulose feedstocks. Biodiesel is only three years into its growth cycle and it 
too is looking toward alternative feedstocks. The subsidies are absolutely 
necessary to keep this drive for innovation moving forward. 
So I think that the temperament for continuing to subsidize responsible 
bioenergy is going to stay. I also think that both presidential candidates are 
going to believe in and invest in renewable energy very aggressively. And I 
think that that will ultimately mean that the credit and/or other ways to 
stimulate renewable energy will continue to be a part of the market.

TWST: Has the company made any progress toward constructing a physical plant?

Mr. Edwards: Yes. We are currently reviewing and evaluating different 
technologies for a facility in New England and will be picking the actual 
technology within the next 30 days.

TWST: Do you have strategic relationships and partnerships?

Mr. Edwards: We have a number of different groups that we have worked with, and 
we continue to align ourselves with people that we think can help with a 
vertically integrated solution. It's not appropriate right now, but over the 
next 30 to 60 days we'll be disclosing a number of different groups that we are 
working with that I think will make our shareholders very happy to understand 
that the last six months we have really been diligent, we have carefully 
selected people to work with, we've built the best team in the industry, in my 
opinion, and now we are getting ready to roll out the deliverables.

TWST: Would you give us a realistic scenario then for the next 24 months?

Mr. Edwards: In the next 24 months you should see us build, I would say, two 
waste vegetable oil plants and one alternative technology plant and consult on 
two to four other projects. 

TWST: Would you lay out your business plan as to how you intend to get to your 
goals? Do you have the balance sheet in place?

Mr. Edwards: Because we have assets that were contributed to the company, that 
gives us the starting point to raise capital. I do believe we have the balance 
sheet in place that will allow us to go after the opportunities we are talking 
about. The model that we have created for a vertically integrated solution calls 
for us to establish subsidiaries that will have project financing in each one of 
those subsidiaries and are to consolidate into the parent company, Renew Energy 
Resources. The individual subsidiaries have the ability to take on some limited 
debt — service their own debt — but can also use the balance sheet of the parent 
company. It's a model that we think works very well, and we are talking to a 
number of bankers both in New York and in the Midwest. We really believe we are 
on the right path with our goals and organization.

TWST: What is the amount of the line of credit that you have secured thus far?

Mr. Edwards: We have a $2.5 million line of credit right now. And with the 
things that we have going forward, we believe that we can further develop our 
relationship with our current lending institution or seek out other lending 
institutions to broaden our financing options.

TWST: What is the company's current burn rate?

Mr. Edwards: The company right now is burning about $75,000 a month, but that 
should start to turn around. We are currently negotiating for the purchase and 
sale of a number of different feedstock deliveries, and I would anticipate 
before the end of the year for us to have reduced the burn.

TWST: What are your challenges besides of course the financing aspect of your 
endeavors? What worries you the most?

Mr. Edwards: I think the constant shifting in commodities pricing and the ups 
and downs in the fuel oil pricing is probably the biggest risk. We have tried to 
mitigate that risk, but it's who do you believe, is fuel oil going to drop down 
below $100 a barrel? Maybe over the short term. But long term, I don't think so, 
and I don't think anybody believes it. OPEC is looking to defend oil at $100 a 
barrel. A reduction in fuel oil pricing makes biodiesel or any alternative 
energy harder to convince people to use. And then the sort of question is, do we 
have a real commitment to it in this country or not? The interesting thing is in 
Europe, demand is very strong for biodiesel and regardless of whether or not 
there is a shift in US consumer behavior, Europe will still remain a very good 
market. And now that the latest guidelines have eliminated the splash and dash 
dollar credit for people bringing biodiesel from South America into this 
country, there's a more equal playing field that does reduce our risk. But I 
guess the thing that worries me the most is the commodity pricing versus the 
fuel oil end-user pricing.

TWST: You mentioned the expertise of your management team. Would you expand on 
that?

Mr. Edwards: When we started building the team, we were looking for people whose 
job descriptions didn't overlap, but could still work together to really put 
together what we think is the best vertically integrated solution team in the 
industry. So with Mike LoCascio, as I said, his background is design, and he is 
a nuclear engineer. He's designed, built, operated and actually turned the keys 
on at biodiesel facilities. A lot of companies don't have the expertise to do 
everything to hedge feedstock, to design and build a facility, to actually turn 
it on, to manage cost inputs and distribute a quality product to the end user. 
They haven't got the financial vision of a senior banker like we do in our CFO, 
Steve Steckel, so that we can, at our levels of the process, manage and 
understand the risk, put together the right formulation on how to structure 
capital, how to take on debt and risk appropriately, and how to deliver a 
product at a profit. 
Then, adding Jim Blair, Jim was the CFO in an ethanol plant. He built two 
biodiesel plants. He has extensive experience in raising capital for buying 
renewable energy facilities. Also, he has a strong accounting and operations 
background; undergrad from Macalester. He has advanced degree from UW-LaCrosse, 
and a tremendous understanding of how you run biodiesel plants efficiently, cost 
effectively, how do you manage your inbound and outbound products. That diverse 
group that we put together, like I said, when everybody looks at our company, I 
think the first thing they feel is, wow, how did you get these guys to come 
together in this venture?

TWST: What occupies most of your time on a day-to-day basis?

Mr. Edwards: The good news is that since I have such a good team, they are each 
actively evaluating multiple opportunities. On a day-to-day basis, I am really 
focused on how we keep the business on track, how we work on shareholder value, 
how we stay focused with what our business objectives are, and how we do not 
lose sight of the timeline. So that's where I focus my time to make sure that we 
are on track, that we are meeting our deliverables with regard to our own 
timelines and goals we set for the company, that we are making the right 
partnerships. I also end up being one of the public faces of the companies, so I 
spend a certain amount of my time just introducing people to the company, let 
them know who or what we are trying to accomplish and getting a start out there.

TWST: In your discussions with shareholders, are there any recurring questions 
or misperceptions?

Mr. Edwards: I think there is a misperception with how the previous BDC 
(Business Development Company) activities carry over with what we are doing 
today. We've got to explain why the change was made from the BDC. None of our 
business today has anything to do with those historical BDC activities, although 
as a reporting company, we continue to report on certain items as we complete 
our transition from a BDC to an operating company. I think the shareholders want 
you to do more, faster. The shareholders want to know when we are going to 
actually deliver revenue and earnings, and I am trying to be cautiously 
optimistic when I talk to shareholders and tell them that the last six months, 
we've been working to put us in a position to execute. I view 2009 as really an 
explosive growth year for the company.

TWST: What does the current shareholder base look like?

Mr. Edwards: It's very diverse. We probably have 1,000 shareholders. It's spread 
out all over the country and to some extent all over the world. We've got, I 
think, a good distribution of shares. The bulk of the shares are held inside the 
company, which I think incentivizes and aligns the operational and management 
team of the company to appreciate what shareholder value is all about

TWST: Is there anything you would like to add?

Mr. Edwards: The key elements of vertically integrating the biodiesel industry 
is something we are trying to demonstrate and what people understand we are 
trying to do. We have aligned ourselves with good partners. We think we've got a 
great financial risk model that will allow us to make money in the up markets 
and down markets, and we know that we've got the right team of people to execute 
on the business we've put together. There are some limits and risk due to how 
you finance it, but so far we've been able to work with Main Street financial 
institutions as well as Wall Street and capital markets to finance ourselves. 
And we believe that in the very near term, we've got a lot of good things to 
talk about to our shareholders, as we go forward executing on our plan.

TWST: Thank you. (WT)

ALEX EDWARDS III
CEO
Renew Energy Resources, Inc.
5025 W Lemon Street
Suite 200
Tampa, FL 33609
(813) 637-2233
www.renwenergy.com

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