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Ence – Energía y Celulosa We grow a better world

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Ence, an integrated industrial model

Cooking Washing Bleaching

Recovery boiler

Turbine

Debarking and Chipping

Energy to the grid

Evaporators Lime kiln

Pulp production

Renewable energy

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2015 energy sales: 1,325 million of kWh

2015 pulp sales: 885,000 tones

Turbine

Biomass Processing

Co-generation Plant

Biomass Plant

Forestry supply management 1

2.7million m3 of wood traded in 2015

Power to the grid

Ence is a world leader in eucalyptus pulp production and biomass energy generation

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Ence, an integrated industrial model Quality reference in pulp industry

Ence owns two advanced pulp mills located in Spain (Navia and Pontevedra), highly respectful to the environment. Pulp production: 898,000 tonnes in 2015. Total pulp production capacity: over 950,000 tonnes/year.

The largest european eucalyptus pulp producer

Pontevedra

Navia

Navia Factory (Asturias)

Pontevedra Factory

● Capacity: 520,000 t/year

● ECF Process ● Capacity: 430,000 t/year

● Totally Chlorine Free Process (TCF)

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Ence, an integrated industrial model Quality reference in pulp industry

Ence exports about 85% of its pulp production, mainly to Europe where it is the second company by sales. Its sales are aimed at segments with better behavior and evolution, such as tissue. Strong market position in main European markets

One of the main Spanish exporters

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Ence, an integrated industrial model Leading producer of energy from biomass

The leading producer in Spain of renewable energy from biomass

Ence is the largest producer of energy from biomass in Spain with a generating capacity of 222.5 MW.

Electricity production more than 1,420 million of kWh/year.

Ence operates Spain’s biggest biomass-to-energy plant and one of the foremost plants in Europe, Huelva 50 MW power plant.

Huelva

Navia

Pontevedra

Mérida

Mérida 20MW

Great capacity and advanced technology to manage biomass-to-energy projects anywhere in the world.

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Ence, an integrated industrial model The Key Player in the forestry business in Spain

Ence is committed to developing a strong and sustainable forestry sector. We promote forest certification and best management practices as a way of creating economic development, especially in rural areas.

We manage forest areas following the most demanding and internationally recognized criteria of sustainability and corporate responsibility.

Ence has pioneered certification projects in Spain, not only for their own forests, but extending this policy to their immediate environment fostering certification of the forest areas of partners and collaborators.

Ence manages holistically planting, maintenance and felling of trees to supply the pulp production processes and the biomass power generation. To do this we rely on:

The direct relationship with the owners of plantations, as a base of an efficient supply line.

Collaborate with plantation owners in the management of forest assets to ensure their sustainability.

Sharing the experience of Ence in managing forestry activities and logistics.

Comprehensive utilization model of tree and leadership in the development of forest crops

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Ence, an integrated industrial model The Key Player in the forestry business in Spain – Main figures

Wood consumption by origin in 2015 (% /total) Own wood 3% Standing purchase owners 25% Suppliers 72% Total timber consumption (m3) 2,672,000

(hectares) Ence Energy Energy

Extremadura Energy Huelva

Norfor Silvasur Total

Biomass 118.73 127.18 3,699.39 35.53 7,607.19 11,588.02 Pulp 0.00 0.00 4,484.67 11,130.56 25,911.59 41,526.82

Protection 0.00 0.00 544.43 1,913.81 13,882.37 16,340.61 Others 0.00 0.00 0.00 413.32 0.00 413.32 Total 118.73 127.18 8,728.49 13,493.22 47,401.15 69,868.77

Forestry assets

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Ence, referent in energy generation from biomass

Forest Biomass

Ence's experiences as the leading forestry manager in Spain, its efforts in R&D for the promotion of forestry as well as its experience in the use of biomass, has allowed the development of a

great capacity and technology to manage biomass-to-energy projects anywhere in the world.

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Ence, referent in energy generation from biomass We contribute to rural development

Biomass-to-energy, an excellent opportunity for job creation and rural development

The energy generation from biomass provides a strong effect to the territorial infrastructure, necessary for the generation of income, to bind the population to the territory and prevent the abandonment of rural areas.

Biomass creates a volume of sustainable workforce far superior to other renewable energy technologies, since it is necessary to prepare and collect the fuel to be used: agricultural and forestry residues.

Allows the utilization of unused areas, like marginal land or agriculturally unprofitable areas, which do not compete with agro-food uses → establishing an added value to the rural economic revitalization.

Economic development and sustainable rural employment

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Ence, referent in energy generation from biomass We care about the environment

Reducing fire risk

Risk of fire 70% less than in areas without biomass exploitation.

Sustanaible residues

Reduction of spills and uncontrolled burning of biomass in the field.

Revaluation of forest assets through the use of residues.

Exploitation of residues in the energy generation process.

Support of natural regeneration of forests

Reduction of the risk of forest plague.

Improving the quality of the tree population.

Emissions complete cycle (Tn CO2 / GWh)

0 PV Biomass

68

500

300

400

200

100

Biomass energy helps to mitigate climate change

Biomass, the energy that protects the environment

Fossil fuel generation

130

400-500

CO2 emissions significantly lower than other energy technologies

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Biomass-to-energy generation contributes to take advantage of local energy resources, reducing imports of fossil fuels.

Production stability and efficient energy management

In terms of energy management, biomass-to-energy plants are not subject to seasonal or atmospheric air conditions, sunlight and water, which cause a complex management of the sources within the electrical system.

Biomass is the only renewable energy source that can be programmed and, therefore, it helps to improve the grid management, reducing energy losses due to deviations from the planning.

Another feature of high value to the rural area with biomass energy is the ownership of the generated energy distributed, which brings the energy production closer to the consumption area and enhances the efficiency of the grid thanks to a remarkable decrease in transmission and distribution losses.

It also constitutes an ideal solution for secluded energy systems and expensive connection to main systems.

Ence, referent in energy generation from biomass We promote energy efficiency

Fuente: Ence

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It features with an installed capacity of 50 MW and a production of 400 million kWh / year; this advanced generation plant consumes about 400,000 tons / year of biomass.

The plant produces 180 tons / hour of steam at 100 bar pressure and 500 °C.

It has been an improvement in the security of electricity supply in the area and has created approx. 450 permanent jobs, particularly associated with the collection and transportation of the biomass.

It has been built with the Best Available Techniques recommended by the EU:

Electrostatic precipitator for cleaning of flue gases leaving the boiler (minimizes particles).

Fluidized bed boiler with natural circulation (minimizes carbon monoxide emissions, higher energy efficiency).

SNCR – Selective Non-Catalytic Reduction (minimizes NOx).

Ence, referent in energy generation from biomass Huelva 50 MW

The largest biomass plant in Spain and one of the biggest in Europe

Fuente: Ence

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The 20 MW plant Mérida raises its annual production to 160 million kWh / year.

The plant generates more than 300 jobs, mainly indirect and induced in rural areas where 200,000 tons of biomass, annually consumed by the plant, are collected.

It was built according to the Best Available Techniques recommended by the EU for the transport, storage and energy production from biomass.

Optimal environmental performance thanks to the commitment to a reheat cycle and incorporating an effective bag filter to capture flue gases leaving the boiler, among other technologies.

Ence, referent in energy generation from biomass Mérida 20 MW

The most advanced technology applied to biomass-to-energy generation

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Thank you so much