Brazil Biomass And Renewable Energy

BRAZIL BIOMASS AND RENEWABLE ENERGY

BIOMASS WOOD CHIPS AND ENERGY

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SPE SPE Wood Wood Chips Chips Biomass Biomass Brazil Brazil Brazil Brazil Biomass Biomass and and Renewable Renewable Energy Energy

570, 570,Candido CandidoHartmann, Hartmann,24 24--243 243 Champagnat á Phone ChampagnatCuritiba Curitiba Paran Paraná Phone55 5541 4133352284 33352284 55 5541 4188630864 88630864Skype Skype celso.marcelo.de.oliveira celso.marcelo.de.oliveira URL:http://www.internationalrenewablesenergy.com URL:http://www.internationalrenewablesenergy.com EE-mail -mail Brasil: Brasil:[email protected] [email protected]

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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

The Company Wood Chips

Brazil Biomass Export Wood Chips an society is limited to specific purpose of production, industrialization industrialization and export of Wood Chips and the development of projects with the use of forest forest residues for coco-generation of energy associated with a plant to be installed in Santa Catarina. The administration of the company shall be held and presided CEO Celso Marcelo de Oliveira Managing Director of International CMO Exports Biomass and Wood Chips and Brazil Biomass and Renewable Energy S.A. VISION OF THE COMPANY. COMPANY. Company Exports Wood Chips and Pellets. Energy solutions based on biomass and biobio-fuels cleaner and renewable for large national and international companies, in order order to mitigate the impact that their activities have on the environment environment by reducing emission of greenhouse gases, generating earnings in its its financial account of energy and the sale of carbon credits, and and provide its energy independence not getting the mercy of the oil market. BUSINESS MISSION. The SPE Wood Chips Santa Catarina and Brazil Biomass and Renewable Renewable Energy Exports Wood Chips mission is to exports wood chips and cooperate in the development of projects through sustainable solutions to waste management for a renewable renewable energy and energy efficiency by biomass. BRAZIL BIOMASS AND RENEWABLE ENERGY. In 2008 the group was with the Portuguese NorteGá NorteGás SRL European energy company which develops special projects for biomass and renewable energy in Europe. Europe. Directed by entrepreneur Celso Marcelo de Oliveira, regarded regarded author of 44 books published in Brazil and Europe. In the same year year was formed with the Engineering Corporation and the Biomass and Renewable Energy Brazil SA The Managing Director Celso Marcelo de de Oliveira. INTERNATIONAL PARTNERSHIP. In Brazil remains an important institutional partnership with the the National Network of biomass in Portugal with the Portuguese Society of Energy, with EUBIA in Europe and the United States with American Renewable Energy. We maintain a technical exchange with the Renewable Energy and Energy Efficiency Efficiency Partnership * Accelerating the Deployment of Renewable Energy Technologies: Regional Report from the Renewable Energy and Energy Energy Efficiency Partnership * The World Bank Group - Accelerating Clean Energy Technology Innovation Pellet Fuels Institute * * Biomass Heating Fuels : Low Hanging Fruit for Carbon Emissions and Energy Energy Independence * Renewable Energy: Electricity and Biofuels in Latin Latin America and the Caribbean * Natural Resources Canada - An Overview of Renewable Energy Industry Canada's National Renewable Renewable Energy Laboratory * International Renewable Energy Alliance International Energy Agency Innovative Approaches to the Renewable Renewable Electricity System Integration of Global Bioenergy Partnership Partnership * German Renewable Energy Federation European Renewable Energy Council Council - Renewable energy policy in Europe - 20% by 2020 * New Energy Future Coalition Alliances for a New Energy Future * Business Business Council for Sustainable Energy - Industry Perspectives on How the Carbon Market Can Promote Deployment of Clean Energy Technologies. Technologies. 3

BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

Board of Directors BRASIL BIOMASS AND RENEWABLE ENERGY S. A. EXPORTS BIOMASS AND WOOD CHIPS BRAZIL President CEO Dr. Celso Marcelo de Oliveira Director General Eng. Dr. Adhemar Cavalieri Junior Director Engineering Enga. Melissa Harris Carelli Lawer Dra. Maria Denise Martins de Oliveira Department Chartering & Shipping – Germany – Ino Krueguer Division of Business Rio Grande do Sul Jeferson Bastos Division of Business São Paulo Douglas Pinheiro

SPE WOOD CHIPS SANTA CATARINA MEMBERS INTERNATIONAL CMO EXPORTS BIOMASS AND WOOD CHIPS BRASIL BIOMASSA E ENERGIA RENOVÁ RENOVÁVEL S.A. OCEANWIDE TRADING AND SHIPPING SERVICES GMBH PARTNER IMPORTAÇ IMPORTAÇÃO E EXPORTAÇ EXPORTAÇÃO LTDA ILP IMBITUBA LOGÍ LOGÍSTICA PORTUÁ PORTUÁRIA LTDA ALTERNATIVA OPERAÇ OPERAÇÕES FLORESTAIS LTDA MEXP ASSESSORIA EMPRESARIAL E LOGÍ LOGÍSTICA LTDA PIANKA ENGENHARIA DE CORROSÃO LTDA NEOTRANS AGENCIAMENTO E REPRESENTAÇ REPRESENTAÇÕES LTDA PROBRAZ COMPANY LTDA LM BRASIL LOGÍ LOGÍSTICA LTDA FUMIDEX E DEDETIZAÇ DEDETIZAÇÃO LTDA PIER LOGÍ LOGÍSTICA EM IMPORTAÇ IMPORTAÇÃO E EXPORTAÇ EXPORTAÇÃO LTDA 4

BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

EUROPEAN BIOMASS INDUSTRY ASSOCIATION EUBIA European Biomass Industry Industry Association “EUBIA, the European Biomass Industry Association, was established in 1996 as an international l non profit association in Brussels, Belgium. It groups together internationa 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 CMO Biomass. Kind Regards,Eibhilin Manning European Biomass Industry Association Renewable Energy House Brussels Belgium •CEBIO PORTUGAL. the CEbio Portugal is a membership of AEBIOM – European Biomass Association – organismo com sede em Bruxelas e que congrega diversas organizaç organizações congé congéneres e empresas europé européias. Conta també também já já várias parcerias bilaterais and we want to sustain an important partner with your companie in in Brazil queremos manter uma importante parceria com a sua empresa no Brasil. Centro para a Valorizaç Valorização de Resí Resíduos – CVR – no campus de Azuré Azurém da Universidade do Minho. Rita Marques Presidente CEbio PT. •CARMEN GERMANY Sehr geehrte Damen und Herren, wieder bei C.A.R.M.E.N. erreichbar erreichbar und kann die gesendeten Mit freundlichen Gruessen, Daniel Miller •BFBINVESTMENTS AUSTRÁ AUSTRÁLIA Dear Mr Celso Marcelo de Oliveira, BRAZIL is now live on BFB's BFB's website. A special welcome to you all in Brazil from all of us at BFB Investments in Australia: Australia: I shall write more to you tomorrow as it's been a long day today. Time for a break! Regards, Dennis Peacock. BFB Investments Investments Pty Ltd. Australia. •SUNNA BIO RESOURCES CANADÁ CANADÁ. Dear Sir Celso Oliveira. While the Canadian market for biomass is is a growing opportunity there is as you can imagine, is a large wood and forestry products products industry currently operating in Canada and I wonder how we can import product from Brazil and still be cost competitive. Thank Thank you. Frank Gazzola, COO Sunna BioBio-Resources Converting organics into renewable energy •BUSINESS DEVELOP CHINA MARKET Dear Mr Celso Oliveira After view carefully on your business, I think it will be a big opportunity in China market, and will benefit china and Brazil, to get winwin-win situation. If your company think it is opportunity to develop china market, and need some good guy to do, then feel free free let me know. I fully support their projects and want to develop a series of business of biomass from Brazil to China. jordan jordan zhou •THERMAX UAE. Dear Mr. Celso Thank you very much for your mail. We are the Boiler Boiler manufacture with Manufacturing base in India. Our regional office based in Dubai. Currently oil prices are going up substantially & looking for a major fuel shift. shift. Therefore request you to let you know the landed prices in Dubai, so that we work out the feasibility. V.M.Raut V.M.Raut Thermax Ltd. Dubai UAE

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Brasil Biomass

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

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

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Inspection and Certification Alex Stewart Brazil

Alext Stewart Brazil will make the inspection and certification of eucalyptus wood chips in the world our plant in Santa Catarina Catarina giving a full guarantee of our products. We are quality Alex Stewart driven and are approved by, or are members of, the following organisations: organisations: BIR: Bureau of International Recycling BMRA: Superintendent Members of of the British Metals Recycling Association COMEX: Commodity Exchange in New York IFIA: International Federation of Inspection Inspection Agencies IMOA: International Molybdenum Association IPMI: International Precious Metals Institute ISRI: Institute of Scrap Recycling Industries, Inc ITIA: International Tungsten Industry Association LBMA: Associate Member of London Bullion Market Association. Authorised Authorised to undertake the proactive monitoring of gold and silver refiners on the LBMA Good Delivery list. LME: London Metal Exchange Exchange MMTA: Minor Metals Traders Association NYMEX: New York Mercantile Exchange TIC: TantalumTantalum-Niobium International Study Centre We have also been accredited by ISOQAR Ltd to the following Quality Management System standards: ISO 9001:2000. Alex Stewart provide highly specialized Collateral Management Agreements and Warrants services in Brazil . Alex Stewart Brazil Armazens Gerais Gerais coordinates its CMA/Warrants operations from Imbituba, Santa Catarina Catarina Brazil. Core business services range from full auditing of wood chips produce and also working closely with producers to provide monitoring, classification, weighweigh-bridge control, warehouse storage and produce insurance. Analytical Alex Stewart Brazil Service Wood Chips: Moisture Impurities Unsaponifiable matter Density Inspection Service Alex Stewart Brazil: Quality control Quantity verification / ullage survey Supervision Supervision of loading and/or discharge Sampling Land tank inspection Ship tank inspection Supervision of transfer to transport Laboratory analysis Wood Chips Certification Wood Chips Consultancy Alex Stewart for Brazil Biomass and International International CMO. Wood Chips Brazil monitoring - Full technical consultation and advice including storage and transportation transportation logistics from warehouse to ship side, GAFTA or FOSFA approved loading and discharge supervIsion supervIsion and inspection for end buyers. Stock monitoring Wood Chips quantity will be logged into a stock book, daily release quantity quantity will be verified against the release note and the stock book. Reports and updates will be sent by email to the relevant parties on the next next working day. Warehouse security Wood Chips Brazil– Brazil– padlocks installed on every door of the warehouse that will be attended by minimum of 1 inspector 24 hours/day. Only authorized personnel shall enter enter the warehouse. Goods release – will be upon official written instruction from Alex Stewart and with written approval of receiver/creditor through an official release order. We will also monitor release and ensure safe passage passage of goods from CMA cargo to Non CMA Cargo bybulk delivery. At load port Imbituba, SC– – Upon the official signing of legal collateral management agreements SC agreements between the creditor and depositor and any appointment of Alex Stewart inspector to certify loading supervision supervision and cargo quantity and quality, the cargo is under due care of creditor and depositor. At discharge – Alex Stewart will carry out the inspection to determine the Bill Bill of Lading and the quantity at load port. CMA pledge – upon completion of discharge operations, Alex Stewart would pledge pledge the CMA quantity based on actual weight figures and would take full effect by the issue a nonnon-negotiable warehouse receipt endorsed by an authorized signatory in favour of the receiver.

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Inspection Alex Stewart Raw Biomass Eucalyptus

Much of the raw materials SPE Wood Chips SC we use for biomass comes comes from certified forests. FSC promotes forest sustainability by evaluating the company’ company’s forest management practices considering economic viability, ecological ecological integrity and social justice.

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Inspection Alex Stewart Production

Alex Stewart is an international company contracted by the SPE Wood Wood Chips SC to act in auditing services for the production, inspection, sampling and assaying of eucalyptus and pine wood chips Brazil and exports. Laboratories are ISO 9002 certified by Lloyds Quality Assurance Limited and the company company is a member of various prestigious international inspection and testing associations.

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Premium Wood Chips

Premium Wood Chips Paper Eucalyptus Brasil . The analyses had been doing at the Energy Laboratory. For the determination of the moisture content, the stoichiometric method was used. The results are presented in the green base. The granulometry was determined by Method developed in the Energy 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 30%

Premium Wood Chips Paper Pinus Brasil

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Wood Chips Brazil

Wood Chips

Softwood Wood Chips Eucalyptus Paper Brazil

Wood Species

Eucalyptus

Place of Origin

Brazil

Quality certification

SGS and Alex Stewart test report or FSC Wood

Dimensions of Wood Chips

28.6mm - (Oversize) not more than 5.0 % - 4.8mm - 28.6mm, not less than 91.0 % 9.5mm - 22.2mm, not less than 55.0 % - 4.8mm (Dust), not more than 4.0

Length Width

30 mm +/- 5 mm 22 mm +/- 3 mm

Dimensions III The analyses had been doing at the Energy Laboratory. For the determination of the moisture content, the stoichiometric method was used. The results are presented in the green base. The granulometry was determined by method developed in the Energy 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 30% Ash wood 0,35 % Gross calorific value 4927 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) 11

BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

Calorific Power

4.927 Kcal/Kg

Energy Output

Wet Basis 2,324 to 3,726 MWh/Ton - Dry Basis 5,229 to 5,811 MWh/Ton

PH

Approx. 5,7%

Chemical Composition

Oxygen Approx. 47% - Hydrogen Approx. 5,8% - Nitrogen Approx. 0,3%

Chemical Composition

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

Extractives

Approx. 11,0%

Lignin

Approx. 25,8%

Polvoses

Approx. 16,3%

Cellulose

86,4% Pulping de Kraft

Volatiles

Approx. 13%

Volatile Matter

70.55 % to 84.96

Fixed Carbon

12.06 to 14.52

Ash content

0,35%

Bark

more than 2.0 %

Moisture Content

30% max

Minimum Btu ‘/lb

5,500 (HHV)

Maximum Chip Size

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

Sand

Maximum 0,1% No plastic or metal

Rotten Content

0,5% 12

BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

CEN/TC 335 biomass standards CEN/TC 335 is the technical committee developing the draft standard to describe describe all forms of solid biofuels within Europe, including wood chips, wood pellets and briquettes, logs, sawdust and straw bales. CEN/TC 335 allows all relevant properties of the fuel to be described, described, and includes both normative information that must be provided about the fuel, and informative information that can be included but is not required. As well as the physical and chemical characteristics of the fuel as it is, CEN/TC 335 also also provides information on the source of the material. Specifications The fuel specifications and classes for all solid biofuels are set set out in CEN/TS 14961:2005, which defines certain parameters and property classes. Normative specifications for wood chips: chips: Origin Particle size (P16/P45/P63/P100) Moisture content (M20/M30/M40/M55/M65) Ash content (A0.7/A1.5/A3.0/A6.0/A10.0) Normative specifications for chemically handled wood or used wood wood: Nitrogen (N0.5/N1.0/N3.0/N3.0+) Informative specifications for wood chips include: include: Net energy content (lower heating value (LHV)) as MJ/kg or kWh/m3 kWh/m3 loose Bulk density in kg/m3 loose Chlorine content (Cl0.03/Cl0.07/Cl0.10/Cl0.10+) Nitrogen (N0.5/N1.0/N3.0/N3.0+) Many other properties may also be specified, including concentrations concentrations of many other elements and volatile matter and ash melting behaviour. Fuel quality is set out in IS CEN TS 14961:2005 Solid Biofuels – Fuel Specifications and Classes (available from NSAI: www.standards.ie). 13

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Phytosanitary Certificate Brazil

Export Permits or Declarations

Export permit required before arrival of products.

Certification Requirements

Phytosanitary certificate required. Sterilisation treatments must be specified on the phytosanitary certificate and can be heat sterilisation, sterilisation, fumigation or preservative treated. Wood chips treated with heat sterilisation as part of the production process can be declared as heat sterilised on the phytosanitary certificate provided the minimum temperatures and times in the table below are met or exceeded. exceeded.

Bark

Free of bark.

Insects

Free of quarantine insects.

Fungi

Free of decay and other fungi.

Soil

Free of soil contamination.

PrePre-Shipment Inspections

Verification inspection required.

Approved PrePre-Shipment Treatments

All wood chips must be either heat sterilised, sterilised, kiln dried or fumigated prior to export.

Fumigation

Fumigated with methyl bromide of 48 gm/m3 for 24 hours at minimum temperature of 21° 21°C.

Heat treatments

Either treated with a minimum temperature of 74° 74°C or kiln dried to a maximum of 14% m.c. m.c. Both treatments shall be to the times by thickness specified in in the following table. Preservative treatments Concessional Release

None specified.

General

All wood chips will be inspected on arrival. 14

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Inspection Certification Alex Stewart Premium Wood Chips

Alext Stewart Brazil will make the inspection and certification of eucalyptus wood chips in the world our plant in Santa Catarina. Calibration of Weighing Equipment. The standard of static weighing facilities can vary considerably considerably depending on such factors as the location, maintenance level and general condition of the facility. This survey will ensure that a detailed report is produced to reflect conditions at the time of usage and that every every precaution had been taken to produce an accurate weight. We insist that recognized test weights be utilized and that documentation documentation verifying the last official calibration of the facility facility be made available for inspection. Heap Leach. Leach. Is a laboratory scale column test used to simulate and calculate calculate the reagent usage and recovery. The Alex Stewart Group operates a global network of over 30 laboratories laboratories that help determine analytical results. Granulometry. Is more simply explained when described as particle sizing and wood wood chips paper. Granulometry testing is determined by placing samples through standardized sieves. The apertures apertures can have either square or round holes. They are normally used to determine whether a product is within a given size size specification. Gross Sample. Also known as the bulk sample. A composite of all increment samples samples or all sub samples. Moisture determination. This survey will give guidance prior to shipment of the general condition of the material. If required a sample can be drawn to produce an approximate analysis. This type type of survey is often essential in new markets. Prepared Sample. The final analysis sample prepared by appropriate means such as drying, mixing, reducing, crushing, grinding etc. and then properly apportioned for sealing. Ultimate Analysis. The ultimate of a wood chips expressed in terms of carbon, hydrogen, hydrogen, nitrogen, sulphur and oxygen. The analysis refers to the material only and hence is often expressed expressed on a dry ash free basis or dry mineral matter free basis. Oxygen is generally estimated by difference although there are methods methods for its determination. Weighing and Sampling. For commercial settlement purposes two factors have to be considered considered an accurate weight in conjunction with an accurate analytical result. It is essential that samples are drawn from the commodity in accordance with internationally accepted standards and ASA surveyors are fully conversant conversant with these requirements and procedures. 15

BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

Industrial Wood Chips

Industrial Complex in Wood Chips Santa Catarina we are developing developing is aimed at the production and extraction of wood chips in the harbor area. It consists of a set of equipment designed designed and tailored by our technical department specialist, in order to process wood and other wastes of high calorific value to to produce wood chips.

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Port Imbituba

The Port of Imbituba is located in coastal southern state of Santa Santa Catarina to about 90 km from the capital Florianopolis. In addition, with two hits paved, one north and one south, the port of Imbituba is connected to the BRBR-101, one of the most important highways of the country, allowing the displacement accessible accessible to all regions of Brazil and the Mercosur countries . The current draft of the port is 9.63 meters with tide average of of 0.50 meters, enough to receive vessels of oil and other cargoes between 35,000 to 40,000 tonnes considering a tide of 1 meter, the draft of Port is 10.13.

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Port São Sebastião

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Logistics and Transportation Wood Chips

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Inspection Certification Alex Stewart

Bills of Lading. The bill of lading acts as a receipt for the goods taken on board board the vessel and provides information as to the nature, quantity and description of those goods. It is evidence of a contract of carriage between the shipper and the carrier wherein the carrier has agreed to transport the goods by sea from from one place to another. It gives title to the goods and means that it can be given to the carrier in exchange for possession of of the goods. Bills of Lading are normally issued in duplicate or triplicate. However, it has become customary for all originals to o t be handed to the shipper in order to reduce the risk of one of the originals falling into the wrong hands, as previously advised advised an original B/L gives title to the goods. Once an original B/L has been surrendered and the goods have been obtained, any remaining remaining B/Ls become void and useless. Condition Survey. This survey will ensure that the vessel, barge that you intend to use fulfils its technical and maritime requirements and is fit for purpose. Draft Surveying/Barge Gauging. One of the most well established methods of calculating the weight weight of cargo. We has many years experience and a wide range of technical resources to draw upon to ensure that clients receive a precise, high quality service. Similarly, our Barge Gauging Services determine the quantity quantity of cargo loaded or discharged. Hold Cleanliness Inspection. This inspection is performed to determine whether the holds are clean, dry and free of previously shipped cargo. Each hold should be individually inspected, accepted accepted or rejected by the attending surveyor. The holds should be free of odour, without paint peeling or heavy rust that could flake flake into the cargo designated for loading. All accessible areas of the hold and hatch covers should be thoroughly examined, as previously previously shipped commodity could remain in hard reach areas. Hold Condition Survey. Thorough inspection of the cargo compartment and the hatch covers covers to determine its suitability for the carriage of the proposed cargo and that the specified requirements requirements of the customer for cleanliness are met. Inspection of the compartment for any damage in order to prevent harm to the cargo and to prevent claims against the customer for damage that is not attributable to him. Marine Cargo Surveying. Goods and financial interests in maritime transport are subject subject to damages and losses for many reasons. Our experts can protect your interests as they secure your your rights to compensation for damages to goods, or if your financial interests are threatened. Stockpile Inspection. Accurate measurements of all kinds of stockpiles are undertaken utilizing advance technology and traditional sampling techniques. 20

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Carbon

World energy problems. Consumption of energy dependent on fossil fuels (coal, oil, natural natural gas). Finite reserves of fossil fuels and high prices. The increase in consumption will continue (United States, States, China and India). Serious environmental and economic consequences from the use of fossil fuels and emission of greenhouse greenhouse gases. Kyoto Protocol signed in 1997. Objectives of reducing greenhouse gas emissions. Adoption of common common policies to reduce CO2 emissions Biomass - Renewable Energy. The content of carbon emitted during combustion combustion of biomass was previously captured the atmosphere in a short time period - balance = zero balance. Strategic options of Brazil Biomass and International: Solutions for the supply of fuel from renewable sources, the international international market or the national market for coco-generation of energy. Conversion of liabilities of carbon emissions emissions in assets with economic recovery emissions avoided. Processing of forest biomass for sale to international international customers. Installation of energy crops for production of biomass for commercial purposes and coco-generation of energy. Minimizing the costs of disposal of waste from logging operations and its use as a product. Valuation of property and renewable energy products. Options used by Brazil Biomass and International. Operation in the forest in the area of production and total recovery recovery of wood and forest residues and the valuation policy of social and environmental ntal responsibility. Experimentation, import and adaptation of environme technologies. Wood chips production of paper and forest biomass. biomass. Different types of biomass for different types of technologies. technologies. A product of high quality, certified in Brazil and Europe and used as an industrial source and a product in the form of biomass with with the use of forest residues for the burning and the generation of energy. rgy. Innovation and integration of technology and operations to ene optimize the management models of different types of forest residues. residues. Biomass Energy Plants in Brazil and the International : Since inception, the Brazil Biomass and International BMC identified identified bottlenecks in the future commercial supply of biomass waste originated originated from forest and there is a demand and widespread use: Looking for international companies, increasing from Wood chips and biomass and that hardly can be satisfied with waste from forestry operations (tendency to grinding of wood and for increasing increasing prices). Localization assent bit of forest residues. Advantages of Energy crops: Energy crops with lower overall costs of production. Stabilization Stabilization of prices and the pressure on timber and other forest products which currently derive raw material for other other industrial sectors. Increased demand for biomass could be met met with new areas of crops on a large scale. Objectives for 2008/2009 and the Biomass Brazil International: The process with new industrial production units in Rio de Janeiro, Janeiro, Northeast, Sao Paulo, Rio Grande do Sul and Parana. Produce and export to international customers 100,000 tonnes per month of paper Wood chips and pine and eucalyptus of 100,000 tonnes per month month of forest biomass with the waste to the plants for cocogeneration of energy. Capture new energy markets. Start the conversion conversion of consumption of fossil higher price associated with the production of industrial steam. Other technologies in use - gasification and pyrolysis

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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

Much of the raw materials we use for biomass comes from forests certified. Sustainable forestry practices and care management plans for economic viability, ecological integrity and social justice. justice. We use 100% of forest production capacity, both for the production production of wood chips or the use of forest residues in the form of biomass. biomass. The general aim is to reduce emissions of the greenhouse effect effect of gases through the establishment of sustainable forest plantations plantations of eucalyptus for industrial purposes and coco-generation of energy. Unlike fossil fuels or nonnon-renewable, energy forests provide a great service environment in that it enables the recycling of CO2. In other words, from the photosynthesis, forests absorb the existing CO2 in the atmosphere, store the carbon in biomass and become a source source of renewable energy. The Biomass Project also has a component for r reducing emissions of methane (CH4). fo The replacement of the array of nonnon-renewable fossil fuels by the burning of renewable biomass reduces reduces the amount of greenhouse gases from human activities emitted into the atmosphere. Within the carbon market, the planting of forests energy may have benefits benefits in two ways, through carbon sequestration done on plant growth and and reduce emissions through the replacement of the energy matrix of fossil fuels by biomass. Our goal is the use of forest residues, residues, which replace the emissions of methane from forest residues and reduce carbon emissions from fossil fuel combustion in the replacement replacement of polluting energy matrix. The sequestration of carbon from from forest plantings energy, is eligible within the Clean Development Development Mechanism - CDM, as activity of Forest / Forestry - A / R (the original English Aforestation / Reforestation), in the case of forests of eucalyptus and pine. The methodology ARAR-AM0005 was approved by the panel of methodologies of the UN Framework Convention for Climate Climate Change. The use of the entire production chain from the tree, even a part part for commerce and energy potential of biomass of forest residues residues in the coco-generation of energy is a practice widely accepted within the CDM CDM and markets volunteers, taking an important role in reducing emissions from fossil fuels recognized and accepted around the world world

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Reference Design for Reduced Emissions from the Use of Waste Power Power Plant of the Forestry Production of Wood Chips and biomass. biomass. The first project of business that will generate the carbon credit credit involves the plant where Wood Chips used throughout the production production chain for international business. Biomass in the form of wood is provided by owners of the region. The biomass wastes that would be stored in batteries in the open, Decomposing and generating methane methane will be used for industrial process. With the project the wood wood chips are avoiding the generation of methane. Project: Generating renewable energy source, in addition to avoiding avoiding the generation of methane. Reducing emissions (energy): 50,586 TCO2 - Reducing emissions (methane): 247,501 tCO2 Period of obtaining credits: 21 years (3 periods of 7 years) Value tonne of carbon: € 15 - Estimates of Revenue with carbon credits: U.S. $ 12072523.00 Reference Design for Reduced Emissions from Power Generation by Use of Forestry and Waste Biomass Power Plant by the cogeneration of Energy. Energy. The second project of business we are offering to the market and and will be developed by a coco-generation Power Plant Power with the use of forest residues and for the generation generation of electricity. Results in higher project for commercial use of biomass coco-generation of energy in Brazil and one of the largest in the world, world, contributing substantially to sustainable development locally, both in view of mitigation of environmental problems as the current generation of municipal revenue. We have the approval approval of the Carbon Fund of the World Bank, resulting in perspective as a model for generating correct and monitored by certificates of carbon carbon credits. Description of Project: The project consists of replacing replacing the use of waste biomass to renewable (splinter of wood, sawdust, sawdust, etc.). To generate steam and power. Project: Generating renewable energy energy source, in addition to avoiding the generation of methane arising arising from the storage of waste batteries in the open forest. Project: Replacing the consumption of 11,300 tonnes of fossil fuel fuel and biomass to generate energy. Reducing emissions: 32,700 TCO2 - Amount of ton of carbon: € $ 15 The mill will operate providing electricity and heat from the same same fuel, biomass, from the waste of our plant. In addition to supplying supplying much of the energy consumption in the region, the Mill will strengthen strengthen the economy adding value to a product before it was discarded discarded and would undermine the environment. We use the example of Tractebel Tractebel Energy that sells carbon credits of the Office of CoCo-generation Lages, enterprise certified as Clean Development by the United Nations. Nations. The plant generates energy from waste from the logging industry in the region, avoiding the emission of methane gas would would be released with the decomposition of wood and cause the increase of greenhouse effect with the consequent increase in the the destruction of the ozone layer. With that attitude more the company company strengthens its commitment to environmental preservation 23

BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

Biomass Wood Chips

Biomass fuel comes from a renewable, sustainable resource base. Fossil fuels will eventually run out, but with proper forestry practices, the biomass resource base can be sustained indefinitely. indefinitely. Biomass Wood Chips prices have been stable historically and are not directly linked to national or global energy markets. Biomass fuels can be expected to increase in price more slowly than competing fuels. Over the last 1515-20 years biomass prices have stayed level. Biomass Wood Chips systems are often capable of giving higher levels levels of comfort at a lower energy cost. Because biomass fuels are very inexpensive, many building owners feel they they can now afford comfortable building temperatures in winter weather. With higherpriced conventional fuels, owners often reduce temperatures or reduce higher reduce ventilation to save money. Future energy taxes, such as a carbon tax or a Btu tax, are less likely to impact the price of biomass fuels compared to fossil fuels. In national policy discussions, energy taxes generally give preference to renewable, locally supplied fuels that do not lead to global warming. Biomass has a negligible sulfur content, so its combustion does not contribute to the atmospheric buildup of oxides of sulfur (SOx), a cause of acid rain. When biomass is burned for energy, using wood from sustainable forestry practices, there is no net increase in the greenhouse gases that cause climate change when biomass replaces fossil fuels, there is a net reduction in greenhouse gas emissions.

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Biomass and Renewable Energy

Using wood wastes from sustainable forestry as fuel increases the the health of the forest resource. Brazil Biomass are looking for new new markets for lowlow-grade wood wastes from the forest, as a way to remove cull trees and improve forest health. Biomass systems are relatively easy to convert to other fuels and and so offer great flexibility for an uncertain energy future. SolidSolid-fuel systems, particularly those made to burn chunky fuels like wood chips, can readily be converted to burn almost any other fuel.

The greatest environmental benefit of burning wood for energy is in its positive impact in moderating climate change. CO2 buildup in the atmosphere atmosphere is the primary cause of global climate change. Fossil fuel combustion takes takes carbon that was locked away underground (as crude oil and gas) and puts it in the atmosphere as CO2. When wood is burned, however, it recycles carbon carbon that was already in the natural carbon cycle. The net effect of burning burning wood fuel is that no new CO2 is added to the atmosphere, as long as the forests forests from which the wood came are sustainably managed. Therefore, when wood replaces replaces fossil fuel, the net impact is to reduce CO2 levels in the atmosphere significantly. significantly. As public consciousness and information about environmental and resource issues increases, often see wood energy as an attractive choice over fossil fuels. fuels 25

BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

Business Biomass

The progress has been made, the 2010 target of 21 % renewable electricity electricity for EU corresponding to 22.1 % for EU15 will not be achieved under current policies and measures. Instead, currently implemented policies will probably result in a share of between 18 % and 19 % in 2010. It has been identified that the main reason reason why the target is not being achieved is because the production of electricity from biomass has not been as high as initially initially foreseen. The United Kingdom is seeking to reduce its carbon footprint to meet its obligations under both the European Union (EU) and the Kyoto Protocol. The EU has set a goal of reducing energy consumption consumption in its member states by 20 percent. It also intends to have biofuels make up 10 percent of all transportation fuels by 2020. Under the Kyoto Protocol, the country has agreed to reduce its 1990 carbon emissions by 12.5 percent by 2012, and it is on track to meet that goal. Imports will continue to be an important part of the strategy, especially for transport fuels and and biomass cofired with wood chips for electricity production. Currently, the UK imports the equivalent of 54 terawattterawatt-hours of biomass for energy production. This is more than half of of the country’ ’ s potential biomass production under the biomass strategy. Imports ts of biomass and biofuels are expected to increase. country Impor

The principal economic advantage of woodwood-chip SPE Santa Catarina Brazil is that their fuel is considerably less expensive than competing competing fuels. This means that woodwood-chip systems offer greater security from future fuel price shocks. Also, as a locally produced, renewable fuel, wood chips can offer both environmental and local economic benefits benefits that other fuels cannot match. More details visit our corporate web site www.internationalrenewablesnergy.com or see our international staff, the business of biomass.

Wood Chips Brazil Brazil Biomass and Renewable Energy – SPE Wood Chips SCSC-SP Brazil 570, Candido Hartmann, 24 – 243 Champagnat Curitiba Paraná Paraná Phone 55 41 33352284 and 55 41 88630864 Skype CelsoOliveira1 or celso.marcelo.de.oliveira [email protected] and e-mail [email protected] [email protected] 26

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