Biomass And Renewable Energy Brazil

BIOMASS BRAZIL WOOD PELLETS, WOOD CHIPS AND BRIQUETTING

Brazil Biomass and Renewable Energy S.A. S.A. 1419, Estrada's Canoe São Conrado - Rio de Janeiro International CMO Business Biomass and Renewable Energy 570, Candido Hartmann, 2424- 243 Champgnat Curitiba Paraná, Brazil PhonePhone-Fax:+005541 33352284 88630864 88630864 Skype CelsoOliveira1 Url: www.internationalrenewablesenergy.com www.internationalrenewablesenergy.com [email protected] or [email protected] European Energy Srl Portugal R. Particular Avilhó 26 44604460-787 Custóias Mts Porto ee-mail [email protected]

INTRODUCTION

Brazil Biomass and Renewable Energy Since 2004 International CMO Business Biomass and 2008 Brazil Biomass and Renewable Energy S.A. specializing in the renewable energy and energy efficient biomass. Brazil Biomass and Renewable Energy has a strong business association with network international partners who bring deep and broad experience to the renewable energy sector. In 2008 started the project to export wood chips and pellets to the international market. Today operates directly in the Brazilian market and also with partners in Chile, Uruguay and Argentina exporting to the European market and the Asian Premium Wood chips and pellets. Vision. Brazil Biomass and Renewable Energy a global renewable energy company to export and biomass (wood chips and pellets) to the international market. Mission. Brazil Biomass and Renewable Energy mission is to be a sustainable and environmentally adapted producer fuel, electricity, heat and biomass through solutions for waste management a renewable energy and energy efficiency. Strategy. Brazil Biomass and Renewable Energy primary market segment is biomass and wood chips, pellets or agro pellets. Brazil Biomass and Renewable Energy focuses on the process, project and financing of the plant Centre Processing Biomass south Brazil. Brazil Biomass and Renewable Energy will use proven and efficient technical solutions leveraging upon the knowledge base and existing implementations in Brazil, Portugal and United States. At we pride ourselves on our innovative approach, backed by a straight forward business model and a proven ability to identify and realize valuable opportunities. The benefit to the environment is significant. Our goal is to make this year the Brazilian authorities for the project to convert the waste as a matter of generating energy and for carbon credits (more info www.internationalrenewablesenergy.com). EUBIA, the European Biomass Industry Association, was established in 1996 as an international non profit association in Brussels, Belgium. It groups together market forces, technology providers, and knowledge centres, all of them active in the field of biomass. I am writing to you on behalf of the European Biomass Industry Association and we would be interested in developing an international partnership with the International Business Biomass. European Biomass Industry Association Renewable Energy Brussels Belgium Renewable heat and power generation. Biomass boilers and CHP has a large potential to reduce both cost and CO2 emissions compared to gas and fired units. Market International: Tapping a long history of efficient, and increasingly renewable, district heating involving combined heat and power generation, many industrial and domestic activities could become substantially more efficient and sustainable. Projects: The company is currently involved in a feasibility study for a medium size CHP facility fuelled with wood chips and wood pellets in Centre Biomass South Brazil. Other biomass options include agricultural byproducts, wood pellets and recovered biogas (methane). Co-firing renewable and fossil fuels is also possible. Clearly renewable biomass “clean” energy is the only viable way forward for a sustainable world. Celso Marcelo de Oliveira is share holder and director of a Brazilian company that operates in projects of biomass in Brazil and Chile and shareholder of a company that develops projects in Portugal, the European Union. It is Director of the Portuguese Chamber of Commerce in southern Brazil and the Brazilian. International CMO Law. Member Brazilian Institute of Banking Law, Brazilian Institute Consumer Policy and Law, Brazilian Institute of Tax, Brazilian Academy of Tax Law, Brazilian Institute of Company Law, Brazilian Academy of Constitutional Law. International CMO Business Biomass Brazil Brazil in Partnership for Sustainable Development and United Nations, Member American Council on Renewable Energy (USA), National Network of Biomass in Brazil, American Chamber of Commerce in Brazil, Portuguese Chamber of Commerce in Southern Brazil, World Confederation Business Portuguese Communities and Commercial Service of the United States in Brazil. Affiliated United Kingdom of the Mortgage Consultants International and Property Consultants or American Homeowners or Association Council of Institucional Investors and American Home Mortgage Investment and International FIABCI

BRAZIL BIOMASS AND RENEWABLE ENERGY BRAZIL BIOMASS AND RENEWABLE ENERGY S.A. – EUROPEAN ENERGY SRL President CEO Dr. Celso Marcelo de Oliveira BRAZIL BIOMASS BIOMASS AND RENEWABLE ENERGY S.A. Dr. Adhemar Cavalieri Junior Director General BRAZIL BIOMASS AND RENEWABLE ENERGY S.A. Enga. Dra. Melissa Harris Carelli Director Engineering BRAZIL BIOMASS AND RENEWABLE RENEWABLE ENERGY S.A. Dra. Maria Denise Martins de Oliveira Director Legal BRAZIL BIOMASS AND RENEWABLE ENERGY S.A. Dr. Carlos Roberto Correa Department Science and Tecnology Company Company BRAZIL BIOMASS AND RENEWABLE ENERGY S.A. Dr. Dr. Jörn Lüdtke Department Shipping & Chartering - Germany BRAZIL BIOMASS AND RENEWABLE ENERGY S.A. Jorge Granado Department Chartering & Shipping - Brazil BRAZIL BIOMASS AND AND RENEWABLE ENERGY S.A. Roberto Beck Department of Trade Business BRAZIL BIOMASS AND RENEWABLE ENERGY S.A. Luciano Simões Department Logistics of Supply BRAZIL BIOMASS AND RENEWABLE ENERGY S.A. Jeferson Bastos Bastos Division of Business Rio Grande do Sul BRAZIL BIOMASS AND RENEWABLE ENERGY S.A. Gabriel de Souza Division of Business Santa Catarina BRAZIL BIOMASS AND RENEWABLE ENERGY S.A. S.A. Douglas Pinheiro Division of Business São Paulo UFV – Universidade Federal de Viçosa IPT – Instituto de Presquisas Tecnológica – USP Lippel Briquetting

CANADÁ – FPInnovations – Forest Engineering Research Institute of Canadá - Eng. Dr. Ricado Teixeira USA –ACORE –American Council on Renewable Energy - Prof. Dr. Tom Weirich USAUSA- Balcones Fuel Technology - Prof. Dr. Randi L. Wolf MÉXICO – Latin American Wind and Energy Renewable Association - Dr. Mauricio Trujillo UK– UK– Skanbio Renewable Energy – InglaterraInglaterra- Finlândia - Suécia - Dr. Keijo Kunttu UK– UK– Energy Net Limited - Dr. Rod Cargill GERMANY – Programme for Biomass Biomass & Energy – GTZ/Probec - Dr. Crispin PembertonPemberton-Pigott GERMANY – Bundesverband Solarwirtschaft – Energie Forum - Dr. Christian Brenning AUSTRÁLIA – Bio Energy and Sustainable Foresty Consultants - Dr. Peter Davies AUSTRÁLIA – Biomass Energy Services Services – Best Energies Australia Pty - Dr. Robert Downie SINGAPURA – Inferno Global HQ – Biodiesel or Biofuel - Dr. Ron Tan Barroman S. A. – Dario Kirschbaum Cree Industries Tally Tropicals Inc -

John O. Olsen Martin Nachim

Elite International Business - Leo Ickowicz Globe Trade Import Export Claudia Gale Asiskyb Lda

Miguel Santos

Energy Trading - Savvas Kassianos V & P Trading – Cristian Pauliano Broflame Houtpellets - Henk van den Broek Eastco InternationalInternational- Jan Troost Expor Impor Global Maderas - Manuel da Foseca Engo Tech GmbH Business - Felipe Messerli Pellets Trading - Hildebrandt Roland Winther Biorema GmbH – Alexander Kunde Denergi Aps – Frank Madsen Beijieg Import & Export Co - Nanning Liu Poerful Commercial Trading Liminted – Brella Liang Integrated Business Applications Limited – Ash PT Surya Pratama Makmur – Michael Santoso Biz Pons Trading - Kyu-Joo LEE BFB Thailand Agent – Dennis Peacock South Africa Renewable Energy Engineer Technology Centre Bruce Manson and Associates – Bruce Manson Takara Furnishings Pty Ltd– Ltd– Karla Black B & H Exports – Ross Burrows

Biomass Brazil

Biomass energy supports the agricultural and forest industries. The main biomass feedstocks for power are paper mill refuse, lumber mill scrap, forest clearance, the debris from tree pruning, etc. Also, cleaning and clearing forest reduces the risk of forest fires. Under the framework of the Kyoto Agreement, the generation of electricity from biomass does not compute in terms of emissions, as the process involves the release of carbon previously fixed in the atmosphere by photosynthesis.

Brasil Biomass either contribute to the international market with the biomass produced directly from Brazil with high-tech reducing CO2 emissions. We present an alternative sustainable energy for your company so that it can replace the use of fossil fuels for the production of energy and industrial products, for a biomass energy (wood-chips Brazil, Brazil wood-pellets and agro-pellets). To help in this transition, wants to be your partner in business to encourage busine ss development in advanced technologies of biomass.

It reduces greenhouse gas emissions. Burning biomass releases about the same amo unt of carbon dioxide as burning fossil fuels. However, fossil fuels release carbon dioxide captured by photosynthesis millions of years ago, while biomass releases carbon dioxide that is largely balanced by the carbon dioxide captured in its own growth. The use of biomass can reduce the dependence on foreign oil because biofuels are the only renewable liquid transportation fuels available at present. Widespread resources are available.

A renewable, sustainable resource. A positive impact in moderating global climate change (burn cleanly with low sulfur emissions) . Favorable policies support biomass power generation. Bio mass one of the few renewable technologies that can provide competitively priced electricity today. Most biomass power generation plants utilize the same technology with coal fired power plants. Cost of power generation from biomass on a decreasing trajectory mainly due to improvements in the technology.

Biomass Wood Brazil Brazil is the largest country in South America. Approximately 2.3 million square kilometers -- 27 percent of Brazil’s total area of 8.5 million square kilometers -- can be considered "frontier" forest. Brazil's frontier forests comprise 17 percent of the world's remaining frontiers, making it the third highe st ranked country in terms of remaining frontier forest. Brazil has the third largest block of remaining frontier forest in the world and ranks first in plant biodiversity among frontier forest nations.

Much of the raw materials International CMO Biomass we use for biomass comes from certified forests. FSC promotes forest sustainability by evaluating the company’s forest management practices considering economic viability, ecological integrity and social justice. Forest products with the FSC logo come from forests that meet the internationally recognized FSC Principles and Criteria of Forest Stewardship. Forest inspections are carried out by FSC accredited certification bodies.

Production Wood Chips Brazil Making of Timber by official of the Business Biomass We are co mmited to the reforestation, mantainance and recovery of pine as well as native specie s of Brazil. Our team guarantees the excellence of our raw material. We prune the trees in order to get the best products to you as shown below.

Suppliers of certified timber in forests and notes of origin of the wood

Wood of international quality for use in the pulp and paper and combustion in place of non-renewable energy and emitting CO2.

SoftWood Chips Paper International CMO Brazil

Wood chips and other low-grade wood wastes are the major type of biomass fuel. Other common biomass fuel sources are agricultural. Wood-chips are cut according to the sizes ordered by the buyers and they are dishydrated through. Wood residues from pulp and paper manufacturing, lumber mills, and other industrial wood users are frequently used for producing biomass electricity. Hundreds of biomass fuel systems are currently at work in different parts heating schools, government complexes, and entire city downtowns, as well as producing renewable electricity. Biomass is a renewable fuel that can be sustainably produced. It makes sense to use biomass in place of conventional, non renewable fuels - oil, gas, and coal - for several good reasons: Biomass fuel is a local product. In contrast to coal or petroleum-based fuel, biomass is grown and harvested on local and regional forests and farms. Energy dollars spent on biomass fuel stay in the regional economy, creating jobs and supporting forestry and agriculture. Bio mass fuel prices are generally lower and more stable. Wood Chip is readily available and cheaper than mains gas and oil. Wood Chip is a renewable energy source. Wood Chip combustion is carbon neutral. Wood Fuel heating systems can be fully automated. Wood Fuel heating systems convert 90% of the fuel into usable heat energy. The South has the most dense woodland in Brazil. 75% of all woodland in the South Brazil is privately owned which could lead to alternative revenue sources.

The advantages of wood chip Brazil Biomass are: • it is cheap, often as cheap as logs and now cheaper than mains gas; • it is a standardised product with Europe wide quality standards in place; • fully automated, highly efficient boiler systems are available; • it can be made from a wide range of raw materials, often sourced locally.

Port Structure Imbituba – Santa Catarina Our company operates directly in the port of Imbituba, Santa Catarina. The Port has structure for the export of wood chips. We present some photos of Porto.

Port Structure Imbituba – Santa Catarina

Our company has a large industrial structure in the port of Imbituba, Santa Catarina. See above the ground where we have a structure for the export of wood chips.

Industrial Wood Chips Santa Catarina

Port Arraial Cabo – Rio de Janeiro

Logistics and Transportation Wood Chips Brazil

Wood Chips Brazil Biomass Laboratory testing and final product Premium Wood Chips Eucalyptus Brazil

Premium SoftWood Chips Brazil W W Wooooooddd CCChhhiiipppsss

SOFTWOOD WOOD CHIPS BRAZIL W W Wooooooddd SSSpppeeeccciiieeesss PPPlllaaaccceee ooofff O O Orrriiigggiiinnn

Eucalyptus or Pinus Brazil

Q SGS test report or FSC Wood Q Quuuaaallliiitttyyy ccceeerrrtttiiifffiiicccaaatttiiiooonnn D D m W Diiim meeennnsssiiiooonnnsss ooofff W WoooooodddCCChhhiiipppsss Sizing: legth:40mm - Width:20mm - Thickness:5mm - Overs: 5%> 40mm, max. Fines: 5%< 20mm, max. W D W Deeennnsssiiitttyyy Wooooooddd---D CCCaaalllooorrriiifffiiicccPPPooow w weeerrr

Wet Basis Approx. 640 Kg/M3 - Dry Basis Approx. 250 Kg/M3 4.847 Kcal/Kg

TTTEEECCCH H N N O RRTTT ––– The analyses had been doing at the Energy Laboratory. HN REEEPPPO OR NIIICCCIIIAAAN N RR EEEN G N O N RG GYYY AAAN NAAALLLYYYSSSIIISSS O OFFF For the determination of the moisture content, the stoichiometric method was NEEERR W PPPR O O D H RREEEM M UUM M W OO OD DCCCH HIIIPPPSSS WO MIIIU M used. The results are presented in the green base. BB The granulometry was determined by method developed in the Energy RAAAZZZIIILLL BRR Laboratory. Ash in wood was determinated by TAPPI T211 Standard and gross and net calorific value by DIN 51900 Standard. Moisture content, ash, gross calorific value and net calorific value in wood. Moisture content 35 % Ash wood 0,35 % Gross calorific value 4847 The ideal moisture content is equal or lesser that 30% and greaters that 60% are undesirable. The ash content is low, compatible with the usual values of the wood. The gross calorific value is compatible with the values observed for wood, that are between 4500 the 5000 kcal/kg. The net calorific value must be greater that 1200 kcal/kg to have satisfactory performance in burners with grate. 97,24% of material have chips dimensions. Materials for use in burners with grate system must have lesser percentage 30% of material with sawdust dimensions. It shows that the material have adequadet dimensions for burners systems with grates. The energy characterization of the material shows that the results of the ash, gross calorific value and granulometry are adequated. The material can be used in the generation of energy, in systems of burners with grates (fixed or mobile stream beds) EEEnnneeerrrgggyyyO u t p u t Wet Basis 2,324 to 3,726 MWh/Ton - Dry Basis 5,229 to 5,811 MWh/Ton O u t u t p Output PPP H Approx. 5,7% H H CCChhheeem m m miiicccaaalll CCCooom mpppooosssiiitttiiiooonnn CCChhheeem m m miiicccaaalll CCCooom mpppooosssiiitttiiiooonnn

Oxygen Approx. 47%

EEExxxtttrrraaaccctttiiivvveeesss LLLiiigggnnniiinnn

Approx. 11,0%

PPPooolllvvvooossseeesss CCCeeelllllluuulllooossseee

Approx. 16,3%

VVVooolllaaatttiiillleeesss VVVooolllaaatttiiillleee M M Maaatttttteeerrr

Approx. 13%

FFFiiixxxeeeddd CCCaaarrrbbbooonnn AAAssshhh cccooonnnttteeennnttt TTToootttaaalllAAAssshhh CCCooonnnttteeennnttt

12.06

B Baarrkk

-

Hydrogen Approx. 5,8% - Nitrogen Approx. 0,3%

Sulphur Less 0,003% - Chlorine Less than 0,1% - Carbon. 52% Approx. 25,8% 86,4% Pulping de Kraft 70.55 % to 84.96 to 14.52

0,38% to 0,88% 3,0% (dry matter basis) more than 1.0 %

M M Moooiiissstttuuurrreee CCCooonnnttteeennnttt M m m M muuum m BB Miiinnniiim Btttuuu ‘‘‘///lllbbb

35% max

M m m M muuum m CCChhhiiippp SSSiiizzzeee Maaaxxxiiim SSSaaannnddd

No more than 5% shall be 4 inches or larger in any dimension

5,500 (HHV) Maximum 0,1% No plastic or metal

RR Roootttttteeennn CCCooonnnttteeennnttt M M Q Quuuaaannntttiiitttyyy Mooonnnttthhhlllyyy///Q PPPrrriiiccceee FFFO O BBrrraaazzziiilll BB D M OBB DM BB BD MTTT PPPrrriiiccceee CCCIIIFFF D D B D M DeeellliiivvveeerrryyyB BD DM MTTT

0, 5% 888000...000000000tttooonnn... UUUSSSD D D 111555555,,,000000 UUUSSSD D D 222000000,,,000000

Wood Chips Combustion Energy Brazil W m W mbbbuuussstttiiiooonnn Wooooooddd CCChhhiiipppsssCCCooom

W W Wooooooddd SSSpppeeeccciiieeesss PPPlllaaaccceee ooofff O O Orrriiigggiiinnn

Pinus

Q Q Quuuaaallliiitttyyy ccceeerrrtttiiifffiiicccaaatttiiiooonnn D D m Diiim meeennnsssiiiooonnnsss O v e O v Oveerrrsss FFFiiinnneeesss G G m Grrraaannnuuulllooom meeetttrrryyy W o o d D e W Deennnsssiiitttyyy Woooodd--D CCCaaalllooorrriiifffiiicccPPPooow w weeerrr

SGS test report or FSC Wood

IIInnneeerrrtttsss EEEnnneeerrrgggyyy O O Ouuutttpppuuuttt

Pentosanes Approx. 17%

pppH H H CCChhheeem m m miiicccaaalll CCCooom mpppooosssiiitttiiiooonnn

Approx. 5,7%

CCChhheeem m m miiicccaaalll CCCooom mpppooosssiiitttiiiooonnn EEExxxtttrrraaaccctttiiivvveeesss

Sulphur Less 0,003% - Chlorine Less than 0,1% - Carbon. 52%

LLLiiigggnnniiinnn PPPooolllvvvooossseeesss

Approx. 25,8%

CCCeeelllllluuulllooossseee VVVooolllaaatttiiillleeesss

56,4% Pulping

VVVooolllaaatttiiillleee M M Maaatttttteeerrr FFFiiixxxeeeddd CCCaaarrrbbbooonnn

70.55 % to 84.96

AAAssshhh cccooonnnttteeennnttt TTToootttaaalll AAAssshhh CCCooonnnttteeennnttt M M m m muuum m Maaaxxxiiim BB a r k a r k Bark M M Moooiiissstttuuurrreee CCCooonnnttteeennnttt

0,38% to 0,88% 3,0% (dry matter basis) 15% Maximum

M m m BBtttuuu ‘‘‘///lllbbb M muuum mB Miiinnniiim M m m M muuum m CCChhhiiippp SSSiiizzzeee Maaaxxxiiim

5,500 (HHV)

M M Q Quuuaaannntttiiitttyyy Mooonnnttthhhlllyyy///Q PPPrrriiiccceee FFFO O BBrrraaazzziiilll BB D M OBB DM BB BD MTTT PPPrrriiiccceee CCCIIIFFF D D BBD D M DeeellliiivvveeerrryyyB DM MTTT

Brazil 3,0 cm – 4,0 cm (average 2,5 cm) 5% > 4.5 cm Maximum 5% < 0.3 cm Maximum 10-50 mm Wet Basis Approx. 640 Kg/M3 - Dry Basis Approx. 250 Kg/M3 Wet Basis 2.000 to 2.300 Kcal/Kg-Dry Basis 4.500 to 5.000 Kcal/Kg Wet Basis 2,324 to 3,726 MWh/Ton - Dry Basis 5,229 to 5,811 MWh/Ton Oxygen Approx. 47%

-

Hydrogen Approx. 5,8% - Nitrogen Approx. 0,3%

Approx. 11,0% Approx. 16,3% Approx. 13% 12.06

to 14.52

30% to 35 % max No more than 5% shall be 4 inches or larger in any dimension

888000...000000000tttooonnn... UUUSSSD D D111444555,,,000000 UUUSSSD D D111888000,,,000000

Wood Pellets Energy Brazil Wood Pellets are a form of compacted biomass in order to increase the density of the fuel and thus making it more economic to transport over longer distances. Most pellets are made from sawdust and ground wood chips, which are waste materials from trees used to make furniture, lumber, and other products. Resins and binders (lignin) occurring naturally in the sawdust hold wood pellets together, so they usually contain no additives. Other materials, like straw, corn, nut hulls and similar can also be used to produce pellets, but those are less common. Pellets are cylindrical in form and their typical dimensions are 5-6 mm in diameter and 15-25 mm in length. Features: 1) Raw material: Pellet fuel is made mainly of sawdust, shavings and fines leftover after processing trees for lumber and other wood products. At a pellet mill the material is dried, compressed, and formed into small eraser-sized bits. They are clean, pleasant smelling and smooth to touch. 2) Working principle: Adopts gear transition and makes pellets. The environmental benefits of Wood Pellets. Carbon Reduction-CO2 is taken from the atmosphere by trees during their life which is released back when burnt or during the natural process of decay. Even allowing for the carbon produced in planting harvesting sawing and transportation of timber and the manufacture and delivery of pellets, it is estimated that the net reduction in CO2 emissions is 90% better when comparing the use of Wood Pellets to Fossil Fuels. Wood Pellets are clean. Unlike most other fuels wood pellets are environment clean, when spilt they can be collected and used as fuel or compost, when burnt the ash produced can be used in the garden as a fertilizer. Wood is a renewable fuel. Never removes trees faster from the forest than it is added to by natural growth, modern plantation methods make it possible to plant and harvest forests within a 30 year cycle. Wood Pellets Brazil are produced from compressing coarse saw dust through holes in a metal ring dye. A quantity of dust will reduce to between a half and a quarter of its original volume during the process. Friction generated during manufacture creates heat that in turn releases the natural lignins within the dust. The Pellet Advantage Brazil : 10 reasons you will warm up to the idea of a wood pellet home heating system. 11.. 22.. 33..

W Woooodd PPeelllleett FFuueell iiss aa ffrraaccttiioonn ooff ccoosstt ooff ssoom mee ffoossssiill ffuueellss.. IItt''ss aa rreenneew a b l e r e s o u r c e , r i g h t i n o u r o w n b wable resource, right in our own baacckkyyaarrdd.. W o o d p e l l Wood pelleett hheeaattiinngg ssyysstteem mss ddoo nnoott ccoonnttrriibbuuttee ttoo oozzoonnee lleevveellss aanndd aarree ccoonnssiiddeerreedd ttoo bbee iinn ccoom p l i a n c e w i t h t h e K y o t o mpliance with the Kyoto A Accccoorrdd ssttaannccee oonn aaiirr eem miissssiioonnss.. 44.. W Woooodd ppeelllleettss aarree eeaassyy ttoo sshhiipp,, ddeelliivveerreedd iinn ccoom mppaacctt bbaaggss ttoo yyoouurr hhoom mee.. 55.. W o o d P e l l e t s a r e r e f i n e d b i o m a s s w h i c h t r a n s p o r t s a r o u n d t h e g l o b e Wood Pellets are refined biomass which transports around the globe.. 66.. N Noo ttrreeee iiss eevveerr ccuutt ddoow wnn ffoorr ccoom mm meerrcciiaall ppeellleett pprroodduuccttiioonn.. IInnsstteeaadd,, ppeelllleettss aarree pprroodduucceedd ffrroom f o r e s t i n d u s t r y w a s t e w o o d . A m forest industry waste wood. Anndd tthhee rraaw w ffiibbrree ssuuppppllyy hheerree iinn B Brraazziill iiss ssoolliidd aanndd ssttrroonngg.. 77.. A Auuttoom maattiicc ffeeeedd ssyysstteem mss oonn tthhee nneew w ssttaattee--ooff--tthhee--aarrtt w woooodd ppeellleett hhoom mee hheeaattiinngg ssyysstteem mss m meeaann lleessss w woorrkk ffoorr tthhee ooppeerraattoorr.. 88.. W Woooodd ppeelllleett ccoossttss aarree ssttaabbllee,, aanndd nnoott ssuubbjjeecctt ttoo tthhee w whhiim mss ooff ffoorreeiiggnn pprroodduucceerrss.. 99.. W o o d p e l l e t s b u r n a t a v e r y h i g h t e m p e r a t u r e , e l i m i n Wood pellets burn at a very high temperature, eliminaattiinngg tthhee w waassttee pprroodduucctt ssoo oofftteenn aassssoocciiaatteedd w i t h w o o d h e a t . with wood heat. 1100..TThhee U U..SS.. EEnnvviirroonnm meennttaall PPrrootteeccttiioonn A Aggeennccyy ((EEPPA A)) hhaass eennddoorrsseedd w woooodd ppeellleett hheeaatt aass oonnee ooff tthhee cclleeaanneesstt--bbuurrnniinngg,, m moosstt rreenneew waabbllee eenneerrggyy ssoouurrcceess oonn EEaarrtthh..

Premium Wood Pellets Pinus Brazil W W Wooooooddd SSSpppeeeccciiieeesss PPPlllaaaccceee ooofff O O Orrriiigggiiinnn

Pinus

Q Q Quuuaaallliiitttyyy ccceeerrrtttiiifffiiicccaaatttiiiooonnn

SGS test report or FSC Wood and Only Dimm and Dimm Plus The quality of the wood pellets is an important factor in achieving optimum operation of the heating system. 6 mm

D D m Diiim meeennnsssiiiooonnnsss W D W Deeennnsssiiitttyyy Wooooooddd---D LLLeeennngggttthhh SSSuuurrrfffaaaccceee

Brazil

00,,5566 GGrr//ccm m33 min. 80% between 5 and 30 mm (max. 45 mm) < 4xd Smooth

EEEnnneeerrrgggyyy cccooonnnttteeennnttt N N Neeettt CCCaaalllooorrriiifffiiiccc vvvaaallluuueee aaasss rrreeeccceeeiiivvveeeddd

min 4.633 kWh/kg

W W Waaattteeerrr cccooonnnttteeennnttt D D Duuusssttt cccooonnnttteeennnttt(((bbbeeefffooorrreee tttrrraaannnssspppooorrrttt)))

Approx. 7%

AAAbbbrrraaasssiiiooonnn IIIm m mpppuuurrriiitttiiieeesss

max. 2.3 %

AAAssshhh cccooonnnttteeennnttt M M M Moooiiissstttuuurrreee CCCooonnnttteeennnttt M M

max. 0.5 %

BB D D Deeennnsssiiitttyyy D D Buuulllkkk D AAAssshhh M e l t i n g e l t i n M g Melting

Kg/m3 > 600

M D M Duuurrraaabbbiiillliiitttyyy Meeeccchhhaaannniiicccaaalll D D D Duuusssttt cccooonnnttteeennnttt(((bbbeeefffooorrreee tttrrraaannnssspppooorrrttt)))

> 97, 5

AAAbbbrrraaasssiiiooonnn BB Biiinnndddiiinnnggg aaagggeeennnttt

max. 2.3 %

IIIm m mpppuuurrriiitttiiieeesss SSSpppeeeccciiiaaalllfffeeeaaatttuuurrreeesss

none

H H H BBTTTUU Hiiiggghhheeerrr H HeeeaaatttiiinnngggVVVaaallluuueee B U///lllbbb M M Moooiiissstttuuurrreee CCCooonnnttteeennnttt

8790

N m N mbbbuuussstttiiibbbllleee aaassshhh Nooonnn---cccooom BB Buuulllkkk dddeeennnsssiiitttyyy aaasssdddeeellliiivvveeerrreeeddd

39 %

FFFlllaaam m m meee ttteeem mpppeeerrraaatttuuurrreee EEEllleeem m meeennntttaaarrryyy AAAnnnaaalllyyysssiiisss

1200 - 1400

CCCaaarrrbbbooonnn H H Hyyydddrrrooogggeeennn

53. 6 %

N N Niiitttrrrooogggeeennn SSSuuulllfffuuurrr

1%

CCChhhlllooorrriiidddeee O O Oxxxyyygggeeennn

ND to < .1 %

MWh/t > 4,7 max. 1 % none Wt % <10 C > 1120 max. 1 % Prohibited no additive 5. 0 - 5. 5% 40.7 lbs/ft3

6. 2 % ND to < .1 % 40. 1 %

Premium Wood Pellets Pinus Brazil AAAssshhh AAAnnnaaalllyyysssiiisss––– M M M Meeetttaaalllsss SSScccaaannn M Mggg///kkkggg AAAllluuum m m miiinnnuuum m

11600

BB m m Baaarrriiiuuum CCCaaadddm i m m miiuuum m

1160

CCCaaalllccciiiuuum m m CCChhhrrrooom i m m miiuuum m

123000

CCCooobbbaaalllttt CCCoooppppppeeerrr

< 20

IIIrrrooonnn LLLeeeaaaddd

18600

M m M m Maaagggnnneeesssiiiuuum M a n g a n e s M Maannggaanneesseee

24800

M M m m Mooolllyyybbbdddeeennnuuum N i c k e l i c k e l N Nicke l

< 50

PPPhhhooosssppphhhooorrruuusss PPPoootttaaassssssiiiuuum m m

5500

SSSiiillliiicccooonnn SSSooodddiiiuuum m m

66000

SSStttrrrooonnntttiiiuuum m m TTTiiitttaaannniiiuuum m m

600

VVVaaannnaaadddiiiuuum m m ZZZiiinnnccc

< 50

CCCaaarrrbbbooonnnaaattteee CCCO O O333 (((ooonnn aaassshhh))) PPPrrriiiccceee FFFO O BB BB OB Brrraaazzziiilll

27. 7 %

M Q M Quuuaaannntttiiitttyyy Mooonnnttthhhlllyyy///Q YYYeeeaaarrrsss///Q Q Quuuaaannntttiiitttyyy

<5 100 100 < 50 12700 < 50 54500 3600 800 1130 Eu ro s 129, 00 15.000 ton. 180.000 ton.

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Laboratorio Biomasse Area Ingegneria Agraria Università Politecnica delle Marche Dipartimento S.A.S.C Parametro Unità Risultato Metodologia CODICE CAMPIONE E000001108 CERTIFICATO ANALISI N°1108 N°1108 MATERIALE Premium Wood Pellets Pinus Brazil IDENTIFICATIVO origine: Brasile RICHIEDENTE FMR Umidità % 7,7 prCEN/TS 14774 Potere calorifico netto kcal/kg 4153 prCEN/TS 14918 Potere calorifico netto kJ/kg 17384 prCEN/TS 14918 Potere calorifico inferiore kcal/kg 4550 prCEN/TS 14918 Potere calorifico inferiore kJ/kg 19046 prCEN/TS 14918 CARBONIO % 51,46 prCEN/TS 15104 IDROGENO % 6,35 prCEN/TS 15104 AZOTO % 0,56 prCEN/TS 15104 OSSIGENO OSSIGENO % 41,43 Per calcolo (prCEN/TS 15104) Osservazioni Analisi riferita al campione come ricevuto Analisi riferita al campione secco Analisi della sostanza minerale PRELIEVO EFFETTUATO DA CONDIZIONI CAMPIONE PESO PERIODO PROVE dal 09/01/2008 al DATA REPORT REPORT 18/01/2008 Ceneri % 0,3 prCEN/TS 14775 Potere calorifico superiore kcal/kg 4872 prCEN/TS 14918 Potere calorifico superiore kJ/kg 20392 prCEN/TS 14918 DATA RICEVIMENTO 09/01/2008 Dott. Giuseppe Toscano Laboratorio Biomasse Area Ingegneria Agraria Dipartimento Dipartimento S.A.S.C Università Politecnica delle Marche Note Il responsabile del laboratorio Dott. Giuseppe Toscano Laboratorio Biomasse - Università Politecnica delle Marche – Dipartimento di Scienze Applicate ai Sistemi Complessi - Via Brecce Bianche 60131 60131 ANCONA - Tel: 0712204297 - 0712204917 Fax:0712204858

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Wood material

Brazil Bracatinga

Quality certification

SGS test report FSC Wood

Diameter

6 mm, 8mm or 10mm

Length

min. 80% between 5 and 30 mm (max. 45 mm)

C a lo r i f

4719 Kcal/Kg

Sulfur

<0.08%

Humidity

12,0%

Density

0,65 Gr/cm3

Bulk weight

650 kg/m³ to 690 kg/m³

energy content

min 4.6 kWh/kg

Gramatur

Max. 1,0%

Water content

max. 10 %

Ash content

05 - 1.0 %

Dust content (before transport)

max. 1 %

Abrasion

max. 2.3 %

Binding agent

Prohibited

Impurities

none

Special features

no additive

M M Q Quuuaaannntttiiitttyyy Mooonnnttthhhlllyyy///Q YYYeeeaaarrrsss///Q Q Quuuaaannntttiiitttyyy

PPPrrriiiccceee FFFO O BBrrraaazzziiilll OBB BB

555...000000000tttooonnn... 666000...000000000tttooonnn...

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Besucheranschrift: Postanschrift: Lehrgebiet für Kokereiwesen . RWTH Aachen . 52056 Aachen Wüllnerstr. 2 Raum Be 128 52062 Aachen Telefon: 0241/80-95705 Telefax: 0241/80-92624 email: [email protected]

Wi/fri 18.02.2008 Analysenergebnisse: Wood Pellets Bracatinga Brazilian Sustainable Bioenergy Sehr geehrter Herr Ahaus, anbei erhalten Sie die Analysenergebnisse der in Auftrag gegebenen Proben: Brazilian Sustainable Bioenergy – Die Analysen wurden gemäß der aufgelisteten Normen durchgeführt. Mit freundlichen Grüßen,

______________________________ Dr.-Ing. Christian Wirtgen Oberingenieur - Anhang

Prüfbericht Auftraggeber: Amandus Kahl Hamburg Probenbezeichnung: Brazilian Sustainable Bioenergy Probeneingang: Beginn der Analysen:

Wood Pellets Bracatinga Brazilian Sustainable Bioenergy

Einheit DIN Plus

Grenzwerte Wassergehaltan ... [Gew.-%] <12 <10 <10 10,6 <1,5 <0,5 <0,5 0,67 Aschegehaltwf...... [Gew.-%] Heizwert Hu, wf ..... [kJ/kg] 17.5-19.5 >18.000 >18.000 18.630 Stickstoffwf........... [Gew.-%] <0,30 <0,30 <0,30 0,12 Schwefelwf........... [Gew.-%] <0,08 <0,04 <0,04 <0,01 Chlorwf................. [Gew.-%] <0,03 <0,02 <0,02 Arsenwf [mg/kg] 0,8 Cadmiumwf [mg/kg] 0,5 Chromwf [mg/kg] 8 [mg/kg] 5 Kupferwf Quecksilberwf [mg/kg] 0,05 Bleiwf [mg/kg] 10 Zinkwf [mg/kg] 100 EOXwf [mg/kg] 3 Abrieban............... [Gew.-%] <2,3 <2,3 1,8 Dichteroh .............. [kg/dm³] 1,0-1,4 >1,12 >1,12 1,21 Durchmesseran....[mm] 4-10 4-10 4-10 6,4

Premium Pellets Bagasse Sugar Cane Brazil Raw Quality certification

Brazil Bagasse Sugar Cane The quality of the pellets is an important factor in achieving optimum operation of the heating system. Austrian Research Centre for Chemistry & Technology (OFI)

Diameter Density Power Calorif Ash Content Moisture Chemical Composition of Bagasse (Enel It)

Ashes Composition (Source Enel It):

Dust content (before transport) Abrasion Binding agent Impurities Special features

The analyses Pellets Bagasse Sugar Cane Brazil had been doing at the Energy Laboratory UFPR. 6 mm 0,60 Gr/cm3 4.780 kcal/Kg PCI = 8.100 x C + 28.700 (H2 – O2) - 600 x H2O (em kcal/kg) PCS = 4.780 kcal/kg Max 2,5% Max. 8.0% Fixed Carbon: 16.6% Carbon: 14,07 % Hydrogen: 6,7 % Nitrogen: 0.98 % Sulphur: 0,11 % Chlorine: 5400 ppm Volatile Matter: 65,5 % CaO: 18,37 % MgO: 4,66 % Na2O: 1,13 % K2O 19,35 % SiO2 34,50 % Ti2O 1,4 % Cl 4 % P2O5 8,9 % max. 1 % max. 2.3 % Prohibited None No additive

Bagasse Sugar Cane Pelleting Brazil

Briquetting Brazil The briquetagem is a process of compression of industrial and agricultural waste such as rice hulls, waste cotton, wood, sawdust, paper, sugar cane bagasse, leather among others. These surpluses turned into briquettes with enormous advantages replace the burning of wood and fuel oil in furnaces, for gasification, fireplaces, etc.. The briquettes can be produced in uniform sizes to facilitate transport, packaging, storage and feeding of furnaces. Eliminates waste cumbersome and sometimes costly for the space they occupy. The reduction of volume in the transformation is the order of 4 to 10 times. It reduces environmental pollution, because it generates less amount of soot and ash than the same material burned in bulk. The low humidity of briquettes calorific ensures a homogeneous, with the highest temperature of flame, which eliminates settings in the flow of furnaces. The shell of rice, but also the waste of maize and sorghum are highly flammable and form gases that can cause explosions and burns.

BRIQUETTING

Product Certification Brazil Premium Briquette Pine Brazil Calorific - 4.795 Kcal-Kg * Moisture Content - 8% * Ashes - 0,3% Density - 1,304 kG/M3 * Diameter - 65, 85, 90, 100mm * Gramatur - Max. 1% - Packaging: 10 - 25 kgs in bags They can be used for solid fuel burners, heating systems. Advantages of the briquette: - less direct and indirect costs; - less workmanship; - bigger stability and rapidity in the reply of the temperature; - bigger hygiene and better appearance; - industrialized, available product all year round; - ecologically correct product; - high heating power; flexibility of use: Domestic and industrial use; - minor pollution generated to the environment in relation to its competitors (vegetal and mineral coal, firewood, oil diesel); - product manufactured through the exploitation of forest residues. Premium Briquette Pine Brazil

Premium Briquette Eucalyptus Brazil Calorific - 4.486 Kcal-Kg * Moisture Content - 8% * Ashes - 0,3% Density - 1,304 kG/M3 * Diameter - 65, 85, 90, 100mm * Gramatur - Max. 1% Briquettes are an attractive alternative to pellets. There are many advantages in briquetting plant when making the comparison with the investment in a pellet plant. The advantages the following: Briquettes can be produced on a mechanical briquetting press from volumes of 225 kg per hour up to 1.800 kg per hour. The mentioned production volumes makes it attractive to a larger number of investors to invest in their own plant. The overall investment is considerably lower than a pellet plant, but also the calculated investment per ton. Operating costs such as labour and electricity are lower per ton produced. Premium Briquette Premium Eucalyptus Brazil

Premium Briquette Cane Pulp Brazil Calorific - 4.780 Kcal-Kg * Moisture Content - 9% * Ashes - 1,5% Density - 1,430 kG/M3 * Diameter - 65, 85, 90, 100mm * Gramatur - Max. 1%

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Project Sumary Center Biomass Brazil Utilization of biomass and wood chips or pellets in distributed power plants, both for heat generation and possibly for heat and power co-generation, feeding district heating networks, represents a priority action with respect to the objectives of the International energy policy, in terms of reduction of CO2 emissions, energy supply security, energy efficiency, environmental improvement at local level in highly polluted residential areas and social acceptability. Properly selected projects may represent the least cost investment towards these objectives. Scope of the Project is the technical configuration of optimum models of energy conversion plants of biomass - wood chips or pellets selected residual biomass, based on viable new technologies. Information Nominee: City Imbituba, Brazil Project Title: Center Biomass Brazil Country: Country Brazil Nominating Institution: Brazil Biomass and Renewable Energy Brazil S.A. Business sector: Energy Public/Private: Private Project description and objectives: The project involves the construction of biomass production facility in South Brazil, by International CMO Biomass. Transition impact: impact The project will have a significant transition Impact derived mainly from: supporting regional expansion business encouraging foreign direct investments into South Brazil, skill transfer as well as demonstration effect of environmentally sound wood processing and bio-fuel industry (Pellet) in Brazil, promotion of sustainable forest management standards and certification through market mechanisms in Brazil. The project will also contribute to the facilitation of more efficient use of wood resources. Contract Exports Biomass Wood Chips 2008 Italy

Wood Chips

350.000 /ton

Turky China

Wood Chips Wood Chips

300.000 /ton 250.000 /ton

Hong Kong USA

Wood Chips Wood Chips

150.000 /ton 216.000 /ton

Germany

Wood Chips

240.000 /ton

Investment Project

US$ 25 million

Investment Port

US$ 3 million

High demand: Attend the external and internal demand. Seeks of partnerships for implant the project: Strategic planning, technical capacity, know how and commercial contacts. Partners investors: Financial resources and strategic factors for boost the business. We provide direct investment and help in locating matching grants and investments for start-ups or expanding companies. Our funding supports promising technologies at the early stages of development presenting too great a risk for private capital sources. Direct investments range from US$ 500,000 to US$ 25 million, and are targeted to research and development projects where a clear pathway to commercialization can be shown. Estimate of annual net profit: USD 177.2 millions.
500.000 metric/tons * $245 per ton = $122,500,000.00 + REC Credits and Tax Incentives Major advantages: 1. Reduced logistics costs. 2. Favorable Public Opinion support for not exporting an Renewable Resource to a foreign country. 3. Favorable Geopolitical support for making the market less dependent on oil from political unstable regions of the world. 4. Economically strengthening the declining pulpwood market. 5. Increase the environmental safety of Forests by applying Silviculture practices. 6. Political exposure. 7. Reducing the amount of CO2 released into the atmosphere

Wood Procurement issues: issues: Similarly to its Brazil operations, the Company will be required to adopt and implement sustainable wood procurement plan and procedures that are in line with internationally recognised sustainable forest management standards, ensuring that: (i) the wood does not originate from statutory protected forests, forest areas included in nature conservation programmes or sites which have been notified by the authorities to be excluded from felling; (ii) the origin of the wood is monitored; (iii) suppliers operate according to the principles of sustainable development, in compliance with the legislation currently in force and under the supervision of state authorities; and (iv) the biodiversity and the functions of the forest ecosystem are maintained in accordance with internationally and nationally approved principles. The project provides an opportunity to further promote sustainable forest management standards and certification through market mechanisms in Brazil. The project will also be promoting bio-fuel (wood chips or pellet) manufacturing industry and markets in Brazil. City of Imbituba. The city of Imbituba (Santa Catarina, Brazil) offers favorable elements for a positive outcome and an important impact of the Project Center Biomass Brazil, namely: a) Large availability of residual and virgin biomass; b) Technological know-how and experience in new technologies; c) Industrialization associated with strong energy demand; d) Favorable conditions for the installation of Center Biomass Brazil. The project focuses on the city of Imbituba in the southern Brazil state of Sant Catarina and a population of 39,000 people accompanied by pronounced environmental sensitivity, which offers several local factors providing a favourable round for a positive outcome and an important impact of the Project, namely: The area is typically industrial, having 20,000 people employed in the industry, out of which 12.5 % work in the wood and furniture sector, that produces residual, mainly contaminated biomass, with high energy content. The administration of the port has been receiving a lot of investment. In the future the Brazilian government wishes to invest a lot of money to transform the port into one of the most important ports in Brazil. The intense residential housing, combined with a rather extreme climate offers numerous homogeneous and delimited areas exhibiting favourable parameters for the implementation of district heating systems. The virgin biomass is partly utilized as raw material for different products (compost, particle boards). The available biomass needs to be classified and selected and properly utilized for energy production. The integration with biomass sources can improve the efficiency and economy of the production and stimulate the complete expansion of the system.

Potential Impact Center Biomass Brazil The environmental benefits of the use of renewable resources, in terms of reduction of CO2 emissions (Kyoto objective) and of increased security of energy supply, are at the base of the energetic policy of the Brazil. An environmental benefit at local level, related to improvement of the air quality, is due to take place as a result of the elimination of conventional heating boilers, of the selection of environment-friendly technologies and of the particular attention in the decisions relevant to plants location.

1. Introduction Promoting a diversity of renewable energy generating resources in Santa Catarina is good energy policy for a state that has an electricity system heavily dependent on hydropower and increasingly dependent on fossil fuels. Because some renewable energy fuels are freely accessible and others are not subject to fossil fuel price swings, they help stabilize electric rates. They contribute to a healthy electric power infrastructure. Similarly, developing a biofuels industry in Brazil will help reduce our dependence on petroleum for transportation. As importantly, developing the state’s renewable energy resources, related manufacturing and research and development presents a huge economic opportunity, particularly in rural parts of the state where economic development can be most challenging. Investments stay in Brazil, creating jobs and growing a “second crop” for farmers, ranchers and forest landowners. Finally, renewable energy is an investment in the environment by displacing the use of fossil fuel generation and avoiding numerous pollutants and global warming gases. The energy conversion projects from biomass can be classified as priority ones for the object of a rational and efficient use of biomass in a Sustainable Energy System, both at Brazil level, but their development is hindered by considerable barriers, deriving from the complexity of their numerous components, such as: Collection, transport and storage system for biomass of different classes (virgin and residual). Energy conversion plant of moderate capacity, subject to new and strict regulatory rules with respect to environmental impact.

Specifically, the impact of the Project can be broadly referred to several contents: a) Presentation of the legislative and regulations framework in a new and complex sector such as biomass utilization, with reference to the specific prescriptions. b) Rationalization of the biomass market and selection of the biomass which can be conveniently utilized, within the specific context of Sant Catarina. c) Identification of efficient, proven and economic technologies for biomass transformation, and selection of the optimum models in the framework of biomass availability and of heat demand. d) Example of territorial investigation and planning of district heating systems, presentation of methodologies and results in real conditions, in order to disseminate the knowledge, identify opportunities in the area and stimulate the application in similar areas. e) Reduction of the emissions and improvement of the environmental impact of the energy sector as a whole.f) Evaluation of the viability conditions for some actual cases, in terms of technical, environmental and economic aspects, singling out benefits, limits, constraints and barriers.

The biomass utilization may provide the following impact with respect to standards: 1. Increase of the local market of biomass as a fuel. 2. Push towards a modernization of the Brazilian regulations relevant to the plants for combustion of fossil fuel, that even today foresee the compulsory adoption of the open expansion vessel, with an overall increase of the construction costs and sometimes decrease of the efficiency of the energy conversion process. 3. Push towards the development of rules and standards for the determination of the avoided CO2 emissions and the saving of fossil fuel, in view of the application of the Kyoto protocol and of the titles of energy efficiency. 4. Making the region as a national center for the export of biomass in the form of wood chips to meet the high demand internationally. This project vai directly benefit the local community with the generation of thousands of jobs and support the entrepreneurs of Forestry with a new alternative to implement their business. It is a pioneer project in Brazil and must have international support.

Santa Catarina has long been one of the nation’s Brazilian leaders in encouraging renewable energy resources. Among the benefits of renewable energy for the state: • A net increase of 250 new jobs with each $50 million investment in renewable energy resources • Additions to the rural tax base and opportunities for local economic development. • Income diversification in rural areas, which helps preserve family farms and ranches. • Using forest residues to produce energy can improve forest health, reduce wildfire risk and fire suppression costs, and reduce overall smoke emissions from forestland burning. • Clean transportation fuels can come from Santa Catarina farm and forest products, instead of from out-of-state sources. • Generating energy from waste gas at dairies, landfills and sewage treatment plants can reduce environmental liabilities and provide another revenue source for businesses and communities. • Renewable resources help insulate from volatile fossil-fuel prices. • Using renewable energy resources reduces air pollution, thereby reducing health care costs and limiting the impact of likely stricter federal emission standards in the future. • A healthy environment helps attract and retain businesses and is also very important to the tourist industry.

2. The Benefits of Renewable Energy Resources Fossil fuels pose significant risks when considering the availability and price. Readily available energy at an affordable price is essential for the manufacturing, agricultural, transportation, retail, and indeed all sectors of Santa Catarina economy. It is prudent that we diversify our investments and allocate a greater portion to renewable resources. By focusing our efforts on renewable energy markets, Santa Catarina will better protect itself from the volatility of the wholesale electricity and natural gas markets. It is essential that we act now to lay the foundation for accelerated renewable energy development that will sustain Santa Catarina progress. Developing renewable resources reduces major health risks through reduced air, land, and water pollution. Adverse effects of global warming on weather and climate can be mitigated by reduced CO2 emissions. Economic Development and Job Creation. Santa Catarina expect their basic needs to be met. They expect the State of Santa Catarina to plan for and develop an environment that produces social and economic benefits that meet current and future needs, while preserving and restoring the health of the natural environment. Investments in renewable energy result in a net increase in jobs. For every $50 million in investments in renewable energy, about 250 full time equivalent jobs are created.

3. Goals and Initiatives The Plan’s goal is to encourage and accelerate the sustainable production of energy from renewable sources, stimulate economic development, particularly in rural parts of the state, and improve the environmental future of the state. The Plan intends to demonstrate a variety of technologies for tapping renewable resources, and to help remove barriers to renewable resource development.

4. Biomass Currently, there are biomass combustion boilers at more than industrial sites in Santa Catarina. These boilers supply heat and energy for industrial processes. New biomass energy markets may provide a way of disposing of otherwise problematic forest biomass residues from timber harvests, stand improvement activities, fuels treatments, and thinning in a cost-effective manner. Agricultural and urban biomass wastes (extracted from municipal solid wastes) can also be utilized as fuel for energy facilities. The lack of certainty in biomass outputs and the high cost of gathering and transporting forest and other biomass to an energy conversion facility continue to be barriers to economic biomass energy development. However, investments in forest and other biomass conversion to energy will lead to multiple environmental, economic, and social benefits. These include:• reduced wildfire risks to communities and wildfire suppression costs to taxpayers • increased timber supplies • improved forest health, water quality, wildlife habitat, and recreation areas • reduced air pollution from wildfire and prescribed forest. • extended landfill life with recovery of biomass • reduced and avoided carbon dioxide emissions, and • maintenance of family-wage jobs and a forest industry infrastructure in rural Santa Catarina. Biomass facilities may need a production-based tax credit in addition to the fuel cost reduction incentives to be economically viable. Such combined incentives would be a reflection of the full realm of societal benefits as outlined above.

Actions: The Investement Renewable Energy and Brazil Biomass and Renewable Energy Company will consider to: • Determine financial support for forest treatment projects is needed to move biomass feedstock from the forest to renewable energy plant sites. • Help the formation of partnerships between private companies and consumer owned utilities to develop energy systems for local communities. • Support efforts to develop integrated bio-refineries that produce liquid fuels, highvalue chemicals and materials, and electric power within the same facility. • Encourage the development and utilization of small energy efficient biomass heating and electrical systems for heating and providing power to institutions, state offices, schools, etc., especially in rural Santa Catarina. • Help identify and address barriers to securing stable, long-term biomass supplies from forestlands. • Promote greater public awareness of the primary and secondary benefits of biomass energy production. • Support efforts to develop Material Recovery Facilities (MRF) to remove the biomass from municipal solid waste and convert the biomass into fuel. • Investigate the feasibility and desirability of a biomass Emission Reduction Credit(ERC) initiative to encourage development of a private market for trading of Biomass ERCs.

Reducing reliance on fuel will help to slow down the effects and will help to adapt better to changes in the future. 1. According to a report fossil--fuel emissions in the US will report by the Department of Energy, stringent targets to reduce fossil cause energyenergy-intensive industries, including steel, iron, chemical, rubber and plastic, to flee from the developed countries to undeveloped countries, taking with with them hundreds of thousands of jobs. 2. Carbon taxes will cause relatively large income losses in the poorest oneone-fifth of the population. The poor, because they spend a greater proportion of their income on necessities, would have few ways to cut back to compensate for higher living costs. 3. Stabilizing emissions at 1990 levels by 2010 would reduce the growth of US per capita income by 5% per year. 4. Senior citizens on fixed incomes would find their energy costs escalating and their income dwindling. dwindling.