1. Affordable Houses from Natural Fibre - Plastic Composites (NFC)

2. Conenor Ltd, Finland ”Innovative extrusion processes and machinery” Management driven SME, found in 1995 Specialized in applied development of natural fibre – plastic composite materials, products and extrusion processes on economy basis from utilisation of industry, forestry and agriculture waste streams Providing NFC consulting and project management services Acting on project basis globally Current main green project ”IRCOW” (see www.ircow.eu) for better recovery of construction and demolition waste in EU Own Conex ® -extrusion equipment and lines for trials, sampling and product development in single and multilayer product structures

3. ”Concept for affordable houses from natural fibre and plastic composites (NFC) for the people with low income level in the Third World.” Have NFC-houses been built yet ? Not really, but something to note yes !

4. PVC-houses Representative other realised concepts: PVC-houses ”PETROCASA” – y La Gran Misión Vivienda Venezuela

5.  Favelas have been replaced by houses made of PVC-profiles (no fibres)  Till 2008 total number of PVC-houses built 2684 – operative 4 PVC-factories  Plan to extent the number of houses to 7398 and 7 PVC-factories BUT…PVC is an oil derivate and not sustainable nor environmentally friendly

6. ”PETROCASA” – y La Gran Misión Vivienda Venezuela Venezuelan TV-news at YouTube http://www.youtube.com/watch?v=CELdDKPso9w http://www.youtube.com/watch?v=CELdDKPso9w

7. NFC-house R&D-Projects  NFC-houses in China and Holland : ◦ Mobile and shelter houses ◦ Offices on construction sites ◦ Other housing projects…  Modular WPC-house project in UK  Prefabricated WPC- house project in Germany Images by Deltawood

8. Houses made of natural fibres have existed for centuries – Now modern technology enables modern NFC-houses ! source UNESP

9. Natural fibres for NFCs create jobs in agriculture

10. source UNESP/SCIFNDER Choices of natural fibres for extruded NFCs – main issues are availability in large volumes and low price Pilot project in Brazil has resulted short sisal fibres at acceptable low price 300 USD/ton Residues and waste of current long fibre production ?? For indoor application ODOR important – e.g. sisal and kenaf usable

11. Extruded NFCs are a high volume / low price market for very short fibres L< 10 mm and can utilise lower qualities The Book: O Sisal do Brasil “According to Companhia Nacional de Abastecimento (CONAB) data, Brazil produced 139,700 tonnes of dry sisal fiber in 2004, which represents just 4% of the harvested sisal leaves. The solid waste produced to decorticate that amount of fiber corresponds to 14% of the leaf, or approximately 489,000 tonnes a highly significant quantity that merits studies to find a better way of using it.” o Opportunity to utilise sorted fractions of solid sisal waste to improve significantly the yield of present harvesting ! o Turn ”fibre waste and residues ” of high end industry uses into valuable raw material in low end industry i.e. construction ! YES ! o Accept lower grades, more moisture, more dust etc. ? YES !

12. Recycling plastic waste & use of bioplastics in NFCs without using global oil reserves Green Bioplastic by Braskem

13. Other major investments in Brazil for Green Bioplastics source AMI (Sept. 2011) Green PVC project under study in Brazil SOLVAY is continuing to study the construction of a “green” PVC facility in Brazil based on sugarcane ethanol. Solvay said previously that the project, located at its Santo André site in São Paulo, would have the capacity to produce 60,000 t/y of bio-ethylene for conversion into green PVC and would require a USD 135m investment.

14. Clean Revolution with low carbon technologies versus Production of 1ton cement for a house will produce ~0,85 ton CO 2 Natural fibres for a house made of NFC will capture CO 2 - both fibres and production of green plastics - as well as keep the environment clean of plastic recycle ; farming of 1ton natural fibres equally as production of green plastics from sugar cane for NFCs capture >2ton CO 2 each

15. Positive social and economical impacts – locally Regional development schemes for wellfare – the money invested keeps circulating from hand to hand within the region and helps many people Building materials produced, fabricated, traded and consumed regionally, environmentally friendly and sustainably Human living conditions for those with lowest income who need it most Proper houses provide security and safety and stability in the community Usage of recycled plastics in volumes cleans the environment from waste Volume application for natural fibres in housing multiplies the number of jobs in the agricultural sector especially for those with less education Houses delivered in kits and constructed in short time DIY by family members and with help of friends promote stronger social integrity Improved sanitary conditions prevent health problems and epidemics

16. NFC’s are proven materials in various industries

17. Global market of WPCs in housing Global WPC-product tonnage >1 Mton/a and about 4 B$ retail value Till today leading single market has been North-America, largest Trex Corp. with sales >300 M$ China growing fast and catching up North-America, largest GEM with 100 extrusion lines and >50.000 ton/a capasity European market yet relatively small ca. 150.000 ton/a but growing Main applications:decking boards building exteriors and interiors fencing & railing miscalleneus replacing chemically treated wood Main materials:wood fibres (and plant fibres) HDPE-plastics (as well as PP and PVC)

18. Main NFC-profiles for houses Wall Block - needs R&D

19. International standardization of WPCs USA ASTM standards to assess performance of WPCs relative to building code requirements ASTM D 7031-04 ”Guide for Evaluating Mechanical and Physical Properties of Woodplastic Composite Products” ASTM D 7032-04 ”Specification for Establishing Performance Ratings for Wood-plastic Composite Deck Boards and Guardrail Systems Guards or Handrails” Construction codes and assessment by International Code Council (ICC-ES) EU Technical Specifications for Wood-Plastic Composites (WPCs) CEN/TS 15534-1 ”Test methods for characterisation of materials and products” CEN/TS 15534-2 ”Characterization of WPC-materials” CEN/TS 15534-3 ”Characterisation of WPC-products” Germany Quality certificate by Qualitätsgemeinschaft Holzwerkstoffe e.V. France AFNOR certification for Marque NF514 Japan ECOMARK-label according to JIS A5741 by the Japanese Industrial Standards Committee

20. The House – a kit of NFC-profiles installed in metal frame constructed DIY a’la ”furniture from IKEA” by the house owner himself with minimal external help to keep costs down Easy dismantling !

21. Estimated affordable cost of house building materials  A house of 70 m2 in metal frame is calculated to consist of NFC-profiles in total weight of ~12 tons and each having ~7 tons of natural fibres  NFC-profiles in various shapes are manufactured from low price short fibres in extrusion method and delivered locally at market price roughly 800 €/ton  Metal frame is estimated to be made available at price ~2000 € The house building materials in metal frame and covered with NFC-profiles total price results apprx. 12.000 €

22. YES ! Can you make the NFC-house at lower price ? YES ! Make a lighter weight house a) smaller and/or b) lighter profiles  Instead of having house weight of 12 tons  go for 8 tons by 1/3 weight reduction in sizing and use thinner walled profiles  influences:less quality and less security Use lower priced materials (if available), e.g. more recycled plastics, less costly virgin plastics or less additives  influences:less quality and shorter life time of the house 8.000 €

23. Production cost of NFC-profiles & Profitability of NFC-factory Example Calculation COSTS EURO PER TON PROFIT/LOSS EURO PER TON QTY (%)€/TONCOSTSHARESALES REVENUE800 FIBRES6023013822,7 % RECYCLED PLASTIC203507011,5 % VIRGIN PLASTIC12130015625,7 %PRODUCTION COST60775,9 % ADDITIVES INCL. MINERALS8183014624,1 % SUB TOTAL51084,0 %GROSS MARGIN19324,1 % LABOUR (each 10.000 €/a)355,8 %PROPERTY COST13 ADMISTRATION COST65 ELECTRICITY (@ 50 €/MWh)406,6 % MAINTENANCE & SPARES122,0 %EBITDA11514,3 % PACKAGING & TRANSPORT101,6 % SUB TOTAL6210,2 %DEPRECIATION41 TOTAL PRODUCTION COST607€/TONEBIT74 9,2 %

24. ONE NFC-FACTORY ANNUALLY ONE NFC-FACTORY OF 20 LINES WILL ; A. PROCESS MATERIALS Natural Fibres22.000 ton/a Recycled Plastics 7.300 ton/a Green Bioplastics 4.400 ton/a Additives 3.000 ton/a B. JOB CREATION Agriculture Sector ~several thousands NFC-Profile Factory150 people C. PROVIDE PROFILES FOR HOUSES 2.870 houses/a D. GENERATE Sales Revenue28 M€/a EBIT 2,7 M€/a Purchase of fibres in value 5 M€/a

25. Why not from wood ? Why not NFC-houses in Europe ? It creates no jobs in agriculture and better save forests in those areas where planting of natural fibres is feasible. And climate… Use of pine & spruce wood logs is natural choice for Scandinavia

26. Providing jobs and houses with natural fibres in NFCs - affordable - eco-friendly - sustainable - ethically right Constructing PVC-houses in Venezuela Fotos by PETROCASA

27. Brazil has all prerequisites to launch ”Project FIBRACASA” Globally most advanced natural fibre industry to supply sisal fibres in necessary large volumes AND very positive consumer perception and culture among common people towards using natural fibres Globally most advanced plastic industry to supply Green Bioplastics and recycled plastics Globally most advanced utilisation of NFC in other industry sectors and in top 5 ranking for weighted value added cleantech over GDP Domestic demand to cut housing deficit of people with low income Proper climate conditions for simple low cost NFC-houses Experience in R&D of sisal based NFCs at UNESP Vast national growth potential and expand in neighbouring countries

28. What is needed for the Concept to become a real Project and a valuable new industry sector thereafter ? Two key necessities : national housing policy to support building NFC-houses assignment of both national and international financing The rest is rational and manageable ! Three project partners are already committed to make it happen and more invited to join…

29. 1. DEMONSTRATION – 2. DEPLOYMENT – 3. REPLICATION Project Phases in Three Steps & Required Finance : 1. DEMONSTRATION – 2. DEPLOYMENT – 3. REPLICATION STEP 1. A. B. C. 2. A. B. 3. PHASE FINANCE STUDY and develope materials, test profiles, conditions and requirements resulting final operative plan DEMONSTRATION HOUSES constructed locally in Brazil with imported NFC-profiles STEP 1 A + B + C ASSESSMENT of the houses and apply improvements TOTAL >1 M€ DEPLOYMENT WITH FACTORY established for local NFC- profile production having necessary facilities and 5 extrusion lines ~ 8 M€ EXTENSION of the NFC-profile factory to 20 extrusion lines ~ 10 M€ resulting production capasity for 2870 houses annually BUILD REPLICAS of the NFC-profile factory in other locations a’ ~ 15 M€

30. actory converting natural fibres into NFC-profiles for house construction Representative images of a factory converting natural fibres into NFC-profiles for house construction source Petrocasa