News Brazil Biomass Export Wood Chips

SPECIAL PURPOSE COMPANY BRAZIL 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 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

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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

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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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

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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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

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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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

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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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

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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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

Technical Specification Premium Wood Chips

Wood Species

Eucalyptus or Pinus

Place of Origin

Brazil

Quality certification

Alex Stewart test report or FSC Wood

Dimensions of Wood Chips

Sizing: legth:40mm - Width:20mm - Thickness:5mm - Overs: 5%> 40mm, max. Fines: 5%< 20mm, max.

WoodWood-Density

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

Calorific Power

4.847 Kcal/Kg

TECHNICIAN REPORT ENERGY ANALYSIS OF WOODCHIPS

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 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%

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% 10

BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

Technical Specification Premium Wood Chips

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 Total Ash Content

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

Bark

more than 1.0 %

Moisture Content

35% 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%

The Premium Wood Chips Brazil is produced within the techniques of The European Committee for Standardization, CEN (TC335). Our product is within the technical specifications being developed deal deal with classification and specification (CEN / TS 14961) and quality quality assurance for solid biofuels (CEN / TS 15234). Normative specifications for wood 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: Net energy content content (lower heating value (LHV)) as MJ/kg or 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. melting. 11

BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

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. 12

BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

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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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

Logistics and Transportation Wood Chips

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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

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. 15

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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BRASIL BIOMASSA E ENERGIA RENOVÁVEL S.A.

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 17

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] 18