SamoaFiber Bio SamoaFiber Bio FuelFuel

ConceptsConceptsMarch 2007March 2007

IntroductionIntroduction Technology exists and is producing low cost Technology exists and is producing low cost

alternative fuels from biomass.alternative fuels from biomass. To create a larger scale success, a low cost To create a larger scale success, a low cost

rapidly growing raw material is needed to rapidly growing raw material is needed to supply this existing technology.supply this existing technology.

SamoaFiber is the catalyst necessary to SamoaFiber is the catalyst necessary to transform technical successes into large scale transform technical successes into large scale supplies of bio-oil for energy and other uses.supplies of bio-oil for energy and other uses.

The combination of SamoaFiber and Fast The combination of SamoaFiber and Fast Pyrolysis produces a bio-oil that can either be Pyrolysis produces a bio-oil that can either be used directly as a primary fuel or co-fired used directly as a primary fuel or co-fired alongside coal, natural gas or oil in a power alongside coal, natural gas or oil in a power boiler.boiler.

Introduction ContinuedIntroduction Continued $50 million is being sought to ramp-up the $50 million is being sought to ramp-up the

production of renewable SamoaFiber BioFuels production of renewable SamoaFiber BioFuels (SFB).(SFB).

SFB combines the use of a ligno cellulosic crop SFB combines the use of a ligno cellulosic crop with fast pyrolysis processing to create the with fast pyrolysis processing to create the lowest cost, highest energy yield per hectare lowest cost, highest energy yield per hectare cellulosic crude available.cellulosic crude available.

This cellulosic crude can be delivered to the This cellulosic crude can be delivered to the rapidly growing energy, gasification, ethanol rapidly growing energy, gasification, ethanol and chemical markets anywhere in the world.and chemical markets anywhere in the world.

Follow on rounds will be used for the Follow on rounds will be used for the installation of additional processing plants and installation of additional processing plants and plantations on a global basis to support the plantations on a global basis to support the growing demand for alternative fuels.growing demand for alternative fuels.

SamoaFiber FeaturesSamoaFiber Features SamoaFiber (SF ) ( Gynerium Sagitattum ), a SamoaFiber (SF ) ( Gynerium Sagitattum ), a

member of the grass family grows in the wild in member of the grass family grows in the wild in Peru and can be grown on plantations.Peru and can be grown on plantations.

SF has the same energy characteristics as wood but SF has the same energy characteristics as wood but SF produces 4 times more per hectare than does SF produces 4 times more per hectare than does the fastest growing wood.the fastest growing wood.

SF can produce 5,000 dry metric tons per year per SF can produce 5,000 dry metric tons per year per square kilometer, which is up to 12 times more than square kilometer, which is up to 12 times more than other energy crops or agricultural waste material.other energy crops or agricultural waste material.

SF can be harvested year-round eliminating storage SF can be harvested year-round eliminating storage issues as is the case with agricultural crops.issues as is the case with agricultural crops.

SF does not require subsidies to be competitive SF does not require subsidies to be competitive with any other biofuel offerings.with any other biofuel offerings.

SamoaFiber vs. Other SamoaFiber vs. Other Energy cropsEnergy crops

05,000

10,00015,00020,00025,00030,00035,00040,00045,000

kg/ha/yr Bio-oilkg/ha

Crudeequiv.

liters/ha

Rice Straw

Wheat Straw

Switch grass

SamoaFiber

Pucallpa/Iquitos Peru – Manaus Pucallpa/Iquitos Peru – Manaus BrazilBrazil

Pucallpa, Peru

.Iquitos, Peru

Upper Amazon BasinUpper Amazon BasinUpper Amazon Basin

Wild Growth in PeruWild Growth in Peru Harvesting Wild SamoaFiber

58,000 ha Operating Area58,000 ha Operating Area

Meeting with President Meeting with President GarciaGarcia

Letter from Minister of Letter from Minister of AgricultureAgriculture

Fast Pyrolysis Fast Pyrolysis BackgroundBackground

Fast Pyrolysis (FP) is uniquely suited to process very Fast Pyrolysis (FP) is uniquely suited to process very fast growing SF into a low cost cellulosic crude oil to fast growing SF into a low cost cellulosic crude oil to supply the gasification market.supply the gasification market.

FP breaks down cellulose into useful carbon FP breaks down cellulose into useful carbon containing compounds in a very cost effective containing compounds in a very cost effective manner.manner.

FP is a proven process that will extract a bio-oil from FP is a proven process that will extract a bio-oil from SF that has the same energy content as low grade SF that has the same energy content as low grade coal.coal.

Bio-oil has approximately the same consistency as Bio-oil has approximately the same consistency as crude oil and is easily transported via tank truck or crude oil and is easily transported via tank truck or large tanker ships.large tanker ships.

FP units are relatively inexpensive and can be FP units are relatively inexpensive and can be installed adjacent to SF plantations.installed adjacent to SF plantations.

SF Fast Pyrolysis and SF Fast Pyrolysis and MarketsMarkets

Process heatProcess heat

Liquid(Cellulosic SlurryCellulosic Slurry

Gas

Charcoal

Pyrolysis heat

Gasification &Ethanol

Industries

Chemicals

Transport fuels

Power

Fast Pyrolysis Using SF

Charcoal Sales

Technical DataTechnical Data

Air Emissions Air Emissions CharacteristicsCharacteristics

SOX NegligibleSOX Negligible

NOX 30% of fossil fuelNOX 30% of fossil fuel

Heavy Metals Negligible Heavy Metals Negligible

Bio Oil Market DynamicsBio Oil Market Dynamics

Mandated usage for Power Mandated usage for Power generation:generation:

EU- 12% by 2010EU- 12% by 2010 US- varies by state…5-10% by 2015US- varies by state…5-10% by 2015

Mandated usage for Transportation Mandated usage for Transportation fuels:fuels:

EU- 2% by 2005, 5.75% by 2010 ( total market EU- 2% by 2005, 5.75% by 2010 ( total market 950 billion gallons, 3,600 billion liters)950 billion gallons, 3,600 billion liters)

US- 7.5 billion gallons by 2012, 30% of the US- 7.5 billion gallons by 2012, 30% of the market by 2030.market by 2030.

Market Penetration Market Penetration Strategy Strategy

Phase 1- Completed-Proof of Concept.Phase 1- Completed-Proof of Concept. Phase 2- Market Bio-Oil to Power Plants, Phase 2- Market Bio-Oil to Power Plants,

Gasifiers, and Ethanol Producers.Gasifiers, and Ethanol Producers. Phase 3- Produce fuels in biorefineries Phase 3- Produce fuels in biorefineries

adjacent to SamoaFiber plantations adjacent to SamoaFiber plantations between latitude 35 degrees North and between latitude 35 degrees North and 35 degrees South.35 degrees South.

In Phase 3 SamoaFiber will be one of the In Phase 3 SamoaFiber will be one of the world’s lowest cost producers of biofuels.world’s lowest cost producers of biofuels.

Sources & UsesSources & Uses

Sources & Uses to Produce 200,000 TPY Bio-Oil

Financing $50,000,000

Fast Pyrolysis Plant $41,500,000Plantation Development 4,600,000

Working Capital 3,900,000Total Uses $50,000,000

SamoaFiber Has Superior SamoaFiber Has Superior Economics to Tar SandsEconomics to Tar Sands

1 Unit of 200,000 metric tons per year bio-oil1 Unit of 200,000 metric tons per year bio-oil SF BOE SF BOE 11 621,484 621,484 Plantation Cost $ 3,110,000Plantation Cost $ 3,110,000 FP Costs $ FP Costs $ 1,839,1251,839,125 Production Cost $ 4,949,125 per BOE $7.96Production Cost $ 4,949,125 per BOE $7.96 Plus SG&A Plus SG&A 2 2 $ 4,269,250 per BOE $6.87 $ 4,269,250 per BOE $6.87 Total Cash Cost/BOE $14.83Total Cash Cost/BOE $14.83 Alberta Tar SandsAlberta Tar Sands 3 3 $35.00 $35.00

1-barrel of crude oil energy equivalent1-barrel of crude oil energy equivalent2-includes sales commission2-includes sales commission3-Wikipedia3-Wikipedia

Bio-Oil Has Superior Bio-Oil Has Superior Economics to Other Economics to Other

Renewable Oils Used TodayRenewable Oils Used Today

Price/Price/

FuelFuel TonneTonne BOEBOE

Palm OilPalm Oil $506 $506 $74.42$74.42

Soybean OilSoybean Oil $613 $613 $90.54$90.54

SamoaFiber OilSamoaFiber Oil $180 $180 $57.93$57.93

Source:Source:

World Bank, Company analysesWorld Bank, Company analyses

Investment ConsiderationsInvestment Considerations LOI executed for output from 1LOI executed for output from 1stst unit. unit. Using the Fast Pyrolysis system to produce bio-oil Using the Fast Pyrolysis system to produce bio-oil

from SamoaFiber will result in a low cost renewable from SamoaFiber will result in a low cost renewable fuel. fuel.

SF bio-oil from a fast growing plant, using low cost SF bio-oil from a fast growing plant, using low cost land and labor makes the fuel very cost effective land and labor makes the fuel very cost effective versus other renewable oils and most fossil fuels.versus other renewable oils and most fossil fuels.

SF and FP solves the current problems associated SF and FP solves the current problems associated with biomass fuels in terms of energy yield, with biomass fuels in terms of energy yield, consistent supply and transportation.consistent supply and transportation.

SamoaFiber bio-oil meets renewable fuel mandates.SamoaFiber bio-oil meets renewable fuel mandates. SamoaFiber bio-oil has further downstream SamoaFiber bio-oil has further downstream

applications as a raw material for chemicals and applications as a raw material for chemicals and transportation fuels.transportation fuels.

ENDEND

Fast Pyrolysis SchematicFast Pyrolysis Schematic

FastPyrolysis

Condenser

SamoaFiber

Gas to process

Air

Heat Exchanger

Cooling Tower

Oil to Market