PROJECT BIOMASS WOOD CHIPS PELLETS AND BRIQUETTING

International CMO Biomass Brazil 570, Candido Hartmann, 24- 243 Champgnat Curitiba Paraná, Brazil Phone-Fax:+005541 33352284 88630864 Skype  CelsoOliveira1 Url: www.internationalrenewablesenergy.com info@internationalrenewablesenergy.com or cmoconsultoria@onda.com.br

INTRODUCTION

International CMO Biomass and Renewable EnergyInternational CMO Biomass and Renewable Energy

Since 2000 International CMO and International Renewable Energy specializing in the renewable energy and energy efficient biomass. International CMO has a strong business association with network international partners who bring deep and broad experience to the renewable energy sector. In 2006 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. International CMO Business a global renewable energy company to export and biomass (wood chips and pellets) to the international market.

Mission. International CMO 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. International CMO primary market segment is biomass and wood chips, pellets or agro pellets. International CMO focuses on the process, project and financing of the plant Centre Processing Biomass south Brazil. International CMO will use proven and efficient technical solutions leveraging upon the knowledge base and existing implementations in Brazil, Portugal and United States. At International CMO, 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 CMO 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 in Partnership for Sustainable

INTERNATIONAL BUSINESS DIRECTORS

INTERNATIONAL CMO BUSINESS BIOMASS – EUROPEAN ENERGY SRLCEO Prof. Dr. Celso Marcelo de Oliveira Brazil

CONSULTORIA INTERNACIONAL - DINAMARCA- SUÉCIA- NORUEGADra. Chrestine Haar Nordberg Hansen

Carpo Company Aps

EXECUTIVE INTERNATIONAL – BENELUX – BÉLGIUM - NETHERLANDSDr. Henk Van Den BroekBroflame Netherlands

CONSULTORIA INTERNACIONAL – CANADÁ - ESTADOS UNIDOS Prof. Dr. John O. Olsen

Cree Industries

CONSULTORIA INTERNACIONAL – ÁSIA – CHINA-MALAYSIA-KORÉIA-THAILÂNDIADr. Dennis Peacock

BFB Investments Pty LtdDr. Andy Lee – BFB Thailand

Dr. Vass Loukaras BFB Investments China-Malaysia

EXECUTIVE INTERNATIONAL – ASIA – MALAYSIA - AUSTRÁLIADr. Bruce Manson

Bruce Manson And Associates

EXECUTIVE BRAZIL – ENGINEERING Eng. Dr. Adhemar Cavalieri Junior

Civic Corp S.A. Engenharia e TecnologiaPianka Engenharia de Corrosão Ltda – Construção Civil

Integral Energias Alternativas Ltda – Projetos em Energias Alternativas

EXECUTIVE BRAZIL – ENGINEERING Enga. Dra. Melissa Harris Carelli

Engineering – Science and Tecnology Company

LAWER BRAZILDra. Maria Denise Martins de Oliveira

EXECUTIVE SANTA CATARINA BIOMASS AND RENEWABLE ENERGYDrs. Jean Carlos Teixeira – Gabriel - Rafael

Armazenamento de Produtos – Vallog Armazéns Ltda

UFV – Universidade Federal de ViçosaIPT – Instituto de Presquisas Tecnológica – USP

CANADÁ – FPInnovations – Forest Engineering Research Institute of Canadá - Eng. Dr. Ricado Teixeira

USA –ACORE –American Council on Renewable Energy - Prof. Dr. Tom Weirich

USA- Balcones Fuel Technology - Prof. Dr. Randi L. Wolf

MÉXICO – Latin American Wind and Energy Renewable Association - Dr. Mauricio Trujillo

UK– Skanbio Renewable Energy – Inglaterra- Finlândia - Suécia - Dr. Keijo Kunttu

UK– Energy Net Limited - Dr. Rod Cargill

GERMANY – Programme for Biomass & Energy – GTZ/Probec - Dr. Crispin Pemberton-Pigott

GERMANY – Bundesverband Solarwirtschaft – Energie Forum - Dr. Christian Brenning

AUSTRÁLIA – Bio Energy and Sustainable Foresty Consultants - Dr. Peter Davies

AUSTRÁLIA – Biomass Energy 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 - John O. Olsen

Tally Tropicals Inc - 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 International- 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

Biomass Wood Chips International Biomass Wood Chips International CMO BrazilCMO Brazil

Brazil Sustainable Energy Brazil Sustainable Energy

The overarching vision is to make Brazil in environmental and sustainable technologies through its Natural Advantage and to grow the economy while improving our environment and quality of life through the development and commercialization of industrial bioproducts and processes from our abundant biomass resources.

Effective stewardship safeguards prompt use of safe and novel products in a sustainable environment. Energy is central to Brazil's sustained economic growth, and it is becoming progressively harder or more costly to extract from fossil sources. Demand for energy worldwide is expected to continue to grow rapidly in the foreseeable future. The International Energy Agency (IEA) forecasts that the world will require 50 percent more energy over present consumption levels by 2020. Global pressure is building to allocate fossil fuels more wisely and to develop ways to diminish existing dependencies and vulnerabilities. As the amount of readily available oil, especially in OPEC countries, is depleting, oil prices will increase, and spikes in energy prices will become even more pronounced.

The conflict between demand and availability could conceivably become more severe in the next 20 years, resulting in a major shift into future fuels and highly efficient energy systems such as fuel cells, small- to medium-scale distributed cogeneration systems and biofuels (biogases, biodiesel, bio-oils and alcohol).

Biofuels and bioproducts - biomass are strategically important to Brazil. There are several successful Brazilian companies actively engaged in this field. Brazil is in an excellent position to benefit with its resource base, expertise and developing community-based eco-industrial clusters. The biomass opportunity will provide new revenue streams for the traditional agricultural, forestry and marine resource sectors and communities. Major benefits can be derived from Brazil's exceptionally large biomass resource - Brazil's Natural Advantage.

Biofuels and bioproducts are potentially cleaner and cheaper than fossil based products. They are also renewable, unlike fossil-based products. Biofuels and industrial bioproducts contribute to sustainability and growth in meeting burgeoning world demands for energy, chemicals and materials.

A theme running though this roadmap is the potential for new biotechnologies to capture economically viable materials and energy from biomass, including virgin biomass from primary crops (agricultural, forestry and marine), and from underutilized materials and land. The production of high-value by-products can be an incentive to recover and recycle waste energy and organic residues. At the same time, there is strong potential for greater synergy and resource conversion efficiencies in production through effective use of co-products.

Innovation Biomass, Fuels and Industrial Products with more biomass resources per capita than any other nation, Brazilians a diverse treasure house of crops, trees, animals, marine life, microorganisms, and industrial and municipal organic residues.

Renewable resources challenged Brazilians to create sustainable economic, environmental, and social benefits as their 21st-century hallmark. We are now well positioned for the paradigm shifts in industrial feedstocks to future fuels and industrial products in the new millennium.

Sustainability comes from leaving future generations with knowledge, capacity and capital to obtain a quality of life at least as good as ours while reducing their external vulnerabilities. Sustainability provides a context for corporate objectives directed to the triple bottom line of meeting financial, environmental and social needs.

Steadfast ties to their renewable resources ensure ongoing economic opportunities for Brazilians. Pollution and greenhouse gas emissions will decrease. New employment will be created and the quality of life for all Brazilians will steadily improve. Our standing forests have an energy content that is equal to 69 years of Brazil's current energy demand now being met by fossil fuels. Due to a highly unstable global energy market as well as large spikes in oil and natural gas prices, Brazil is at a tipping point regarding future fuel developments. Action must be taken now. Substantial biofuel opportunities both now and in the near-term future are ours to lose despite our abundant biomass resources and strong competitive advantages, especially in the physical, chemical and thermal conversion of primary and residual biomass to bio-based energy and industrial products.

BFB Investments is an Australian Company providing a service to companies seeking to source, import and export products and services from Asia to anywhere in the world. BFB Investments Brazil Exports Referral Program can now supply International CMO Business Wood Chips produced in Brazil. Our Suppliers produce up to 1 million metric ton (MT) of Pine, Eucalyptus woodchips and Biomas. They have their our own port facilities in Brazil. At the moment they have ready for delivery 100.000 Green Metric Ton (GMT) of Clear Woodchips and 20.000 GMT of Wood Pellets and 15.000 GMT of Briquettes.

They specialise in the renewable energy and energy efficient biomass (wood chips, pellets and agropellets) & have a strong business association with International Network Partners, who bring deep and broad experience to the renewable energy sector. In 2006, they started a project to export wood chips and pellets to the international market. They are specialising in exporting wood chips or pellets and agropellets. They can supply wood chips with excellent quality for your business. They work with wood chips and pellets in Brazil, Europe, South Korea and China.

The increased use of renewable energy sources is a key issue for many countries. For example, the European Union has set a target to double the share of renewable energy in the European Primary Energy Supply from a level of 6% in 1997 to 12% by 2010. Biomass is one of the most important sources of renewable energy and its contribution to this end may be significant. The use of biomass reduces the dependency on fossil fuels and contributes to the security of the fuel supply by using indigenous fuel. It also provides savings from decreasing or eliminating landfill costs and possible tax credits.

Wood chips and other low grade wood wastes are the major type of biomass fuel. 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 of Brazil heating schools, government complexes, and entire city downtowns, as well as producing renewable electricity. 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. Why Use Waste Wood Chips? Waste wood is plentiful and available from several sources in the area. Wood chips mix

Industrial Biomass BrazilIndustrial Biomass Brazil Combustion Combustion

Industrial biomass combustion Brazil facilities can burn many types of biomass fuel, including wood, agricultural residues, wood pulping liquor, municipal solid waste (MSW) and refuse-derived fuel. Combustion technologies convert biomass fuels into several forms of useful energy for commercial or industrial uses: hot air, hot water, steam and electricity.   A furnace is the simplest combustion technology. In a furnace, biomass fuel burns in a combustion chamber, converting biomass into heat energy. As the biomass burns, hot gases are released. These hot gases contain about 85 percent of the fuel´s potential energy. Commercial and industrial facilities use furnaces for heat either directly or indirectly through a heat exchanger in the form of hot air or water. A biomass-fired boiler is a more adaptable direct combustion technology because a boiler transfers the heat of combustion into steam. Steam can be used for electricity, mechanical energy or heat. Biomass boilers supply energy at low cost for many industrial and commercial uses. A boiler´s steam output contains 60 to 85 percent of the potential energy in biomass fuel. The major types of biomass combustion boilers are pile burners, stationary or traveling grate combustors and fluidized-bed combustors. Pile burners consist of cells, each having an upper and a lower combustion chamber. Biomass fuel burns on a grate in the lower chamber, releasing volatile gases. The gases burn in the upper (secondary) combustion chamber. Operators must shut down pile burners periodically to remove ash. Although capable of handling high-moisture fuels and fuels mixed with dirt, pile burners have become obsolete with the development of more efficient combustion designs with automated ash removal systems. In a stationary or traveling grate combustor, an automatic feeder distributes the fuel onto a grate, where the fuel burns. Combustion air enters from below the grate. In the stationary grate design, ashes fall into a pit for collection. In contrast, a traveling grate system has a moving grate that drops the ash into a hopper. Fluidized-bed combustors burn biomass fuel in a hot bed of granular material, such as sand. Injection of air into the bed creates turbulence resembling a boiling liquid. The turbulence distributes and suspends the fuel. This design increases heat transfer and allows for operating temperatures below 972° C (1700° F), reducing nitrogen oxide (NOx) emissions. Fluidized-bed combustors can handle high-ash fuels and agricultural biomass residue.   Conventional combustion equipment is not designed for burning agricultural residues. Straws and grasses contain potassium and sodium compounds. These compounds (called alkali) are present in all annual crops and crop residues and in the annual growth of trees and plants. During combustion, alkali combines with silica, which is also present in agricultural residues. This reaction causes slagging and fouling problems in conventional combustion equipment designed for burning wood at higher temperatures. Volatile alkali lowers the fusion temperature of ash. In conventional combustion equipment having furnace gas exit temperatures above 1450° F, combustion of agricultural residue causes slagging and deposits on heat transfer surfaces. Specially designed boilers with lower furnace exit temperatures could reduce slagging and fouling from combustion of these fuels. Low-temperature gasification may be another method of using these fuels for efficient energy production while avoiding the slagging and fouling problems encountered in direct combustion.

Cogeneration Cogeneration Biomass Brazil combustion facilities that produce electricity from steam-driven turbine-generators have a conversion efficiency of 17 to 25 percent. Using a boiler to produce both heat and electricity (cogeneration) improves overall system efficiency to as much as 85 percent. That is, cogeneration converts 85 percent of the fuel´s potential energy into useful energy in two forms: electricity and steam heat. Two cogeneration arrangements, or cycles, are possible for combining electric power generation with industrial steam production. Steam can be used in an industrial process first and then routed through a turbine to generate electricity. This arrangement is called a bottoming cycle. In the alternate arrangement, steam from the boiler passes first through a turbine to produce electric power. The steam exhaust from the turbine is then used for industrial processes or for space and water heating. This arrangement is called a topping cycle. Of the two cogeneration arrangements, the topping cycle is more common.

 

Co-FiringCo-FiringCo-firing biomass as a secondary fuel in a coal-burning power plant using high-sulfur coal could help reduce sulfur dioxide and nitrogen oxide emissions. Also, CO-firing decreases net carbon dioxide emissions from the power plant (if the biomass fuel comes from a sustainable source). CO-firing may require wood fuel preparation or boiler modifications to maintain boiler efficiency.

GasificationGasificationGasification is a thermochemical process that converts biomass into a combustible gas called producer gas. Producer gas contains carbon monoxide, hydrogen, water vapor, carbon dioxide, tar vapor and ash particles. Gasification produces a low-Btu or medium-Btu gas, depending on the process used. Producer gas contains 70 percent to 80 percent of the energy originally present in the biomass feedstock. The gas can be burned directly for space heat or drying, or it can be burned in a boiler to produce steam. Medium-Btu producer gas can be converted into methanol, a liquid fuel. Electric power generation is possible by combining a gasifier with a gas turbine or fuel cell. Filters and gas-scrubbers remove tars and particulate matter from producer gas. The clean gas is suitable for use in an internal combustion engine, gas turbine or other application requiring a high-quality gas. Use of producer gas in a fuel cell requires reforming clean gas into hydrogen ions and carbon monoxide. Fuel cells produce electricity and thermal energy from hydrogen through an electrochemical conversion process. Gasification technology is in the development stage. There are a few demonstration projects that use varied gasifier designs and plant configurations. However, pretreatment of biomass feedstock is generally the first step in gasification. Pretreatment involves drying, pulverizing and screening. Optimal gasification requires dry fuels of uniform size, with a moisture content no higher than 15 percent to 20 percent. Biomass gasification is a two-stage process. In the first stage, called pyrolysis, heat vaporizes the volatile components of biomass in the absence of air at temperatures ranging from 450° to 600° C (842° to 1112° F). Pyrolysis vapor consists of carbon monoxide, hydrogen, methane, volatile tars, carbon dioxide and water. The residue, about 10 percent to 25 percent of the original fuel mass, is charcoal. The final stage of gasification is called char conversion. This occurs at temperatures of 700° to 1200° C (1292° to 2192° F). The charcoal residue from the pyrolysis stage reacts with oxygen, producing carbon monoxide.

Brazilian Biomass Energy and TheBrazilian Biomass Energy and The Environment Environment  Unlike any other energy resource, using biomass to produce energy is often a way to dispose of biomass waste materials that otherwise would create environmental risks. In the following ways, using biomass for energy can deliver unique environmental dividends as well as useful energy.

Reducing Greenhouse Gases: Carbon Dioxide. Carbon dioxide (CO2), methane, nitrous oxide and certain other gases are called greenhouse gases because they trap heat in the Earth´s atmosphere. The global concentration of CO2 and other greenhouse gases is increasing. A natural greenhouse effect of trace gases and water vapor warms the atmosphere and makes the Earth habitable. However, human-caused greenhouse gas emissions are having an effect on regional climate and weather patterns.  Trees and plants remove carbon from the atmosphere through photosynthesis, forming new biomass as they grow. Carbon is stored in biomass. When biomass is burned, carbon returns to the atmosphere in the form of CO2. This cycle makes it possible for biomass energy to avoid increasing the net amount of CO2 in the atmosphere. There is no net increase in atmospheric CO2 if the new growth of plants and trees fully replaces the supply of biomass consumed for energy. However, if the collection or processing of biomass consumes any fossil fuel, additional biomass would need to be grown to offset the carbon released from the fossil fuel. In contrast, the combustion of natural gas, coal and petroleum fuels for energy adds CO2 to the atmosphere without a balancing cycle to remove it. Using biomass fuels instead of fossil fuels may reduce the risk of adverse climate change from greenhouse gas emissions.

Reducing Greenhouse Gases: Methane. Compared to CO2, methane has 21 times the global warming potential. Natural decomposition of organic material, especially in wetlands, releases methane. It has been estimated that 60 to 80 percent of methane emissions are the result of human activity. For example, solid waste landfills, cattle feedlots and dairies are sources of human-caused methane emissions. Because human-caused emissions, the global atmospheric concentration of methane increased 6 percent from 1984 to 1994. Using biomass-derived methane to produce useful energy consumes methane and reduces the risk to the environment that would otherwise result from natural decomposition. In addition, generating electricity with biomass-derived methane fuel can offset power produced from fossil fuels and reduce the net CO2 emissions from electric power generation. The regulations allow operators to use landfill methane for energy production or burn off the gas to avoid the release of methane into the atmosphere. Besides the potential effect of methane emissions on climate, uncontrolled landfill gas emissions cause odor problems and a risk of explosion and fire. Methane released from decomposition of livestock and poultry manure generates about 9 percent of all human-caused methane emissions. Processing manure through anaerobic digesters can make the methane available for conversion to useful energy and avoid methane emissions to the atmosphere.

Protecting Clean Water. Livestock manure generated at feedlots and dairies poses a risk of surface and ground water contamination from runoff. Microorganisms such as salmonella, brucella and coliforms in manure can transmit disease to humans and animals. Anaerobic digestion of manure destroys most of these microorganisms. The process produces environmentally stable liquid and fiber residue. The liquid portion of digester residue (called filtrate) contains approximately 75 percent of the nitrogen present in raw manure but in a more soluble form. In this form, the nitrogen is more available to plants. However, the filtrate should be applied as close to the ground as possible to avoid volatile ammonia emissions. Farmers must carefully manage land application of filtrate to avoid overloading the soil with more nutrients than the plants can use.

Keeping Waste Out of Landfills. Using wood waste for fuel reduces the volume of waste that otherwise would be buried in landfills. The ash residue that remains after combustion of waste wood is less than 1 percent of the volume of the wood waste consumed. Uncontaminated ash can be used as a soil amendment to add minerals and to adjust soil acidity.

Brazilian Energy Matrix Brazilian Energy Matrix  .

Project Sumary Center Biomass BrazilProject 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, BrazilProject Title: Center Biomass Brazil Country: BrazilNominating Institution: Brazil Biomass and Renewable Energy Brazil S.A.Business sector: EnergyPublic/Private: PrivateProject description and objectives: The project involves the construction of biomass production facility in South Brazil, by International CMO Biomass.Transition 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 /tonTurky Wood Chips 300.000 /tonChina Wood Chips 250.000 /tonHong Kong Wood Chips 150.000 /tonUSA Wood Chips 216.000 /tonGermany Wood Chips 240.000 /ton

Investment Project US$ 25 millionInvestment 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.

Wood Procurement 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

Potential Impact Center BiomassPotential Impact Center Biomass BrazilBrazilThe 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

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 frommunicipal 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

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.

Project Center Biomass Brazil SantaProject Center Biomass Brazil Santa CatarinaCatarina

Equipment and Machines that must With Equipment and Machines that must With Investment Investment The DPC drum chipper is a machine especially designed to process fibrous bark, as well as wood residues, which are usually mixed with this kind of material. The machine mainly differs in its innovative construction characteristics, allowing the absorption of a very irregular volume of material, chipping it with high efficiency and productivity rates. The equipment does not offer any resistance to the material infeed thanks to the big compacting roll, that guarantee a continuous operation and a complete directed material feed to the shredding process.

Exclusive feeding system with a variable height infeed section, allowing great volume absorption; Modern and simple conception which feature standard component operation and maintenance easiness; Anti-wearing protection at the high wearing areas - guaranteeing longer durability; Knives and counter-knife system designed to allow fast changes, avoiding adjustments needs; High mechanical availability; Complete Service Support through a technician team; High performance through planned training and after-sale service.

The material to be processed (1) is introduced in the machine through the in-feed belt (2) through the lower conveyor rolls system (3) and teethed upper compactor roll (4), bringing the materials to the entrance of the machine until the rotor (5). The articulation of the "hood" of the compactor roll around its shaft allows the opening of the in-feed section, that varies according to the volume of material to be processed (into the equipment technical limits). Through the action of the conveyor rolls, in group of the compactor roll, the material is forced against the rotor, being cut in regular length by the knives (6) and first counter-knife (7) to be then classified by the screen (8) and discharged, in the shape of chips. The chip that eventually, were chipped with size bigger than the standard of the machine will be re-chipped by the second counter-knife (9) until to reach the acceptable size. The working system above described is flexible, allowing a control of the size of the final product processed, through the alteration in the variable such as, rotor rotation, number of knives, in-feed speed and screen sieve size. The rotor "hood" (10) and the compactor roll (11) can be easily moved. When they are opened obrigatorily are braked mechanically and are arranged of antidive hydraulic system ara additional safety. Knife fixation system by clamps (12) and screws, without the utility of wedges and hydraulic "dispositives".

Rotor Extremely sturdy and designed to minimize superficial wear. Dynamically balanced and fixed to the shaft through an expanding ring system. Over dimensioned clamps and bolts guarantee the knives stability. Replaceable wear plates increase the rotor life and bring the rotor back to original conditions ensuring the correct contact surface for the knife, assuring the machine safety and high performance.

Second Counter-Knife Fastened to the main machine frame, guarantee more stability during the re-chipping process. Screen Sturdy and properly selected for each material type. Guarantees the desired size chipped material. First Counter-Knife With four usable and resharpening edges for re-sharpening. Easy to remove allows fast changes and quick checking. Divided comb, with interchangeable counter-knife clamp. Disc Brake (optional) Hydraulically activated, enables the rotor to reach a complete stop in 30 seconds, reducing considerably the knife changes time and gives additional safety feature in case of an emergency shut down.Safety. Several items guarantee equipment safe operation: Mechanical devices for hoods, bearings, rotor and counter-knife locking. Electrical sensors to avoid involuntary start of the machine. Hydraulic

Chip Processing DPM forest chipper was developed to chip whole trees, wood edges, branches and roots, for biomass purposes. After processing, the chips are blown into a bucket located at the chipper back side. When the bucket is full, chips are thrown onto a truck to be transported to the final destination. The chipping process results in a significant volume reduction, making those initially unattractive materials highly profitable.

Productivity. The chipper is pulled by a farm tractor and driven by its power take-off. The DPM chipper can work continuously due to construtive figures, regardless of whether the tractor is moving or stationary. Allied to this advantage, the chipper in-feed system generates a high yielding for this machine type.

Durability. Due to an extremely sturdy and flexible construction (double welded beams), a long life time is obtained for this equipment. No extra care with forest roads is necessary, as the machine is able to easily adapt to the field unevenness. The chipper is optionally supplied with a hydraulic brake system and a hydraulic auxiliary compacting system located at the forced in-feed. The machine can be supplied either with or without bucket.

Drum Chipper

Drum Chipper series are extremely simple machines with updated constructive characteristics, in order to considerably increase efficiency and durability. The machines were projected after observing and use several machines in operation. Considering that drum chippers are an equipment initially used in countries of essentially tropical woods, they were properly projected and the experience proved to be a machine with a very long durability, high versatility and low maintenance.

1 - Rotor2 - Second Counter-knife3 - Rotor4 - Knife Fixing Clamp5 - Knife6 - Rotor Fixing Rings Set

7 - Rolls Hood8 - Conveyor Roll9 - Roll Hooding Articulation10 - Screen11 - Counter-Knife System12 - Lower Comb

13 - Accelerating Roll14 - Belt Conveyor Roll15 - Feeding Belt16 - Return Roller

Disc Chipper The DPD disc chipper is projected to process logs and sawmill wastes generating high-quality chips for the pulp process or o

Sturdy machine, of simple conception and highly durability. Equipment with efficient debarking and great productivity. Conversion possibility from mobile machine (interchangeable chassis) into fixed.

Feeding In-feed and outlet tables optimizes the feeding operation and log outlet Towed by farming tractor with feeding crane and driven by the tractors P.T.O. mechanism. Diesel motor can be supplied as an option.

Versatility The in-feed and outlet tables are articulated in order to make machine transportation easier. Optional: hydraulically operated articulation for tables and longer infeed tables for logs up to 6 m length. Fast and free access to the many components of the machine. The only transmission used for the machine comes from the tractor drive (P.T.O.).

V-Shape RollsTwo roll at, the in-feed and the out-feed and, enable the logs to centre and avoid logs from rotating and getting out of line, while being fed through the machine.

Rotor The rotor and bearing is manufactured exclusively includes internal lubrication by mineral grease, avoiding contamination to the environment.

Knives Pressure System Debarking arms adjustable pressure system of the debarking arms by springs with additional help from centrifugal force enables the machine to work with any log diameter without further adjustment.

Production Sheet

Production is calculated based on lenght: 2,4 m, logs with a space between of: 1m and infeeding efficiency: 75%.

Tables

Original design, manufactured in structural steel, the in-feed is the key to the automatization of chipping lines, receiving logs from various lenght and diameter. Logs are fed in through a cleft conveyor, driven by a variable speed motor, allowing speed variation according to the volume to be processed.

Flat construction with very resistant profiles, supplied with chains to transport the logs, activated by a variable speed gear motor that allows continuous in-feed and high productivity. Optionally, a waste collecting system can be supplied, in order to eliminate the manual cleaning operation.

An extremely important equipment in the process that guarantees the individual log in-feed at the debarker. Hydraulically activated, feeds the debarker through a totally automatic pulsating movement that pratically eliminates multiple log in-feed possibility. Photoelectric sensors optimize the process, providing a continuous and effective operation. A belt or chain conveyor individually receives the logs, directing them to the debarker.

Transport Systems

The log conveyor is constructed in different stages, being the first an impact zone with sliding bars or coated rolls, with rubber rings. The logs are conveyed by a high resistant belt to the chipper, passing through a high-pressure log washer. The conveyor has metallic side walls, sprocket rolls and electrical safety switches. Optionally, a metal detector can be installed in a non-metallic zone.

Projected to classify logs in different diameters and/or lengths, the log classifier is built in a modular concept, according to the needed box quantity for each installation. Featuring a sturdy metallic structure, built with tubular profiles, supports a chain conveyor that forewards the logs to the respective boxes, where they are stored by pneumatically activated deviators.The bark is collected by a belt conveyor that transports it to a silo, pile or container. A re-chipper may be added to the system, to chip the bark to any desired size, for other purposes (substracte or fuel).

Chips are transported between the screen and the pile or silo following international standards. Belts, screw or pneumatic systems with distinct configurations and applications guarantee the chip transfer at low cost and high productivity. Our application engineering, through a

Project Center Wood Chips Brazil Project Center Wood Chips Brazil

Log chipping yard is projected to process logs in order to produce chips that meet the standards of the pulp industry standards. The logs are received on appropriate in-feed tables that direct them to the chipper to be processed and later on.

After that, they are classified and transported up to a pile or a silo. One person controls the whole operation through computerized panel directly from a control cabin, where the process is followed by a closed TV system.

Log Debarking and Classifying System

Log debarking and classifying system is composed by equipment especially projected to receive, debark and properly classify logs that come from the forest in diameters and/or lenghts, according to any further process (sawmill, veneer, pulp, particle board, MDF and others).

The system can be manufactured to accept different log lengths and diameters, according to the end-user needs. Logs are unloaded onto a flat table that feeds them to the log unitizing table, which guarantees the individual debarking operation.

Improper logs are rejected before getting into the debarker. After debarking, the logs are classified in different storing boxes or directed to the sawmill in-feed conveyors. Sturdy equipment, designed for extremely severe conditions, features an excellent performance, high productivity a

nd operating availability rate.

Flail Debarker

Project Port Imbituba Santa CatarinaProject Port Imbituba Santa Catarina

Production Wood Chips InternationalProduction Wood Chips International CMO BrazilCMO Brazil Making of Timber by official of the International CMO Business Making of Timber by official of the International CMO Business BiomassBiomass

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

Port Structure – Imbituba – Santa Catarina – BrazilPort Structure – Imbituba – Santa Catarina – Brazil

Wood Chips International CMO BrazilWood Chips International CMO Brazil Laboratory testing and final product Premium Wood Chips Laboratory testing and final product Premium Wood Chips Eucalyptus BrazilEucalyptus Brazil

Wood Pellets International CMOWood Pellets International CMO BrazilBrazil

Wood Briquetting International CMOWood Briquetting International CMO BrazilBrazil

Laboratorio BiomasseArea Ingegneria AgrariaDipartimento S.A.S.CUniversità Politecnica delle Marche

Parametro Unità Risultato Metodologia

CODICE CAMPIONE E000001108CERTIFICATO ANALISI N° 111/2008International CMO Business Biomass BrazilMATERIALE WOOD PELLETS PINUSIDENTIFICATIVO origine: Brasile

RICHIEDENTE FMRUmidità % 7,7 prCEN/TS 14774Potere calorifico netto kcal/kg 4153 prCEN/TS 14918Potere calorifico netto kJ/kg 17384 prCEN/TS 14918Potere calorifico inferiore kcal/kg 4550 prCEN/TS 14918Potere calorifico inferiore kJ/kg 19046 prCEN/TS 14918CARBONIO % 51,46 prCEN/TS 15104IDROGENO % 6,35 prCEN/TS 15104AZOTO % 0,56 prCEN/TS 15104OSSIGENO % 41,43 Per calcolo (prCEN/TS 15104)

OsservazioniAnalisi riferita al campione come ricevutoAnalisi riferita al campione seccoAnalisi della sostanza minerale

PRELIEVO EFFETTUATO DACONDIZIONI CAMPIONEPESOPERIODO PROVE dal 09/01/2007 alDATA REPORT 18/01/2007Ceneri % 0,3 prCEN/TS 14775Potere calorifico superiore kcal/kg 4872 prCEN/TS 14918Potere calorifico superiore kJ/kg 20392 prCEN/TS 14918pag. 1 di 1DATA RICEVIMENTO 09/01/2007

Dott. Giuseppe Toscano Laboratorio BiomasseArea Ingegneria AgrariaDipartimento S.A.S.CUniversità Politecnica delle Marche

Note Il responsabile del laboratorioDott. Giuseppe ToscanoLaboratorio Biomasse - Università Politecnica delle Marche - Dipartimento di Scienze Applicate ai Sistemi Complessi - Via BrecceBianche 60131 ANCONA - Tel: 0712204297 - 0712204917 Fax:0712204858

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: info@kobra.rwth-aachen.de

Wi/fri 18.02.2008

Analysenergebnisse: Wood Pellets 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

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

Wood Pellets Brazilian Sustainable Bioenergy

Einheit DIN Plus Grenzwerte

Wassergehaltan ... [Gew.-%] <12 <10 <10 10,6

Aschegehaltwf...... [Gew.-%] <1,5 <0,5 <0,5 0,67

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 Kupferwf [mg/kg] 5 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

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 by the Department of Energy, stringent targets to reduce fossil-fuel emissions in the US will cause energy-intensive industries, including steel, iron, chemical, rubber and plastic, to flee from the developed countries to undeveloped countries, taking with them hundreds of thousands of jobs.2. Carbon taxes will cause relatively large income losses in the poorest one-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.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.

1. Wood Pellet Fuel is a fraction of cost of some fossil fuels. 2. It's a renewable resource, right in our own backyard. 3. Wood pellet heating systems do not contribute to ozone levels and are considered to be

in compliance with the Kyoto Accord stance on air emissions. 4. Wood pellets are easy to ship, delivered in compact bags to your home. 5. Wood Pellets are refined biomass which transports around the globe. 6. No tree is ever cut down for commercial pellet production. Instead, pellets are produced

from forest industry waste wood. And the raw fibre supply here in Brazil is solid and strong.

7. Automatic feed systems on the new state-of-the-art wood pellet home heating systems mean less work for the operator.

8. Wood pellet costs are stable, and not subject to the whims of foreign producers. 9. Wood pellets burn at a very high temperature, eliminating the waste product so often

associated with wood heat. 10.The U.S. Environmental Protection Agency (EPA) has endorsed wood pellet heat as one

of the cleanest-burning, most renewable energy sources on Earth.

Partner International Renewable Energy and International CMO Business Biomass Brazil