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Steven Jay Mueller, PresidentInternational WoodFuels

Thermal Energy Renewable Fuels Perspectives from the Wood Pellet Industry

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Proven Renewable Energy Solid Fuels Technology – growing to meet diverse solutions for Commercial Metered Heat Community Heating Industrial Process Steam Utility Co-Fire Fuel

Delivering Significant Economic & Environmental Benefits Permanent displacement of fossil fuels Lower greenhouse gas emissions Create quality rural community jobs Retain a critical logging industry

Pellet Fuel - A Simple Concept

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40 Years+ of history as a home heating alternative fuel….

Now growing rapidly to meet new market needs:

Commercial Metered HeatCommunity District Heating Industrial Process Steam University & utility Co-Fire Fuel

A Flexible Fuel Solution

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Delivering Significant Benefits

Displacement of fossil fuels Lower greenhouse gas

emissionsCreate quality rural jobsRetain critical logging

capacity

Meeting Economic & Environmental Needs

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90+ Pellet Plants In 40+ States3 million tons of

production (serving US)

Heating 1+ million homes

A Community-Based Industry

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“Community-sized” and rural based investment value

High ‘generational job’ value Low environmental impactMatched to forest reservesPellet fuel lower cost than #2

oil Pellet fuel soon to match cost

of low-emission blended coals

Strong Growth Potential

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50+ new projects in development 30-50 jobs per new facility Uses low-grade whole log pulpwood 50 mile radius of fiber supply Growth driven by US consumption Not for export No Federal incentives today (unlike wind) Growth to come from displacement of

coal, not from home heating

The Future of Pellet Fuels

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New-build – installing large heat-energy boiler applications

Co-fire at substantial % for coal steam boilersUtility small % co-fire in coal power plantsGrowth for whole home furnace replacements Industrial steam applications

A regional industry – serving local communities

New Pellet Fuel Markets

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Pellet Fuels are a proven technologyStrong future growth potential Ideal technology to support sustainable forest

management practices 3x production growth in the next 5 years~2-3,000 new jobs created from Alaska to Maine to

FloridaWill induce >$300 million of new capital At a local scaleExceptional carbon footprint

Conclusions

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Main Entrance

Scale House

Pellet Plant

200TPH Whole Log Chip Mill &

Debarker

Pellet Storage

Temporary Whole Log Storage

Radial Log Crane & Storage (to be

reinstalled April 2010)

Scale

Pellet Rail Loading

White Chip Conveyor

White Chip Storage & Rail

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