Focus on pellets process: the experience in use of agricultural and forestall biomasses Bioenergy International Conference Bydgoszcz 17 June 2010 PELLETS UPDATE 20/05/2010 rev.00Pavan Consulting S.r.l.1

20/05/2010 rev.00Pavan Consulting S.r.l.2 LA MECCANICA S.r.l., with 50 years of experience in manufacturing machinery for feed pellets and 15 years of experience in machinery for sawdust pellets and pellets from agricultural residue for green energy is today an organization that focuses on an integrated service for the customers. Our mission is to help resolve environmental problems by - giving added value to your waste - recovering green energy from agricultural and industrial residue and also from short-cycle cultivation - contributing to sustainable development. Our attention is focused on maximizing customer profits by - adapting lines and plant to the needs of the customer - providing simple and reliable solutions to complex technological problems - coordinating the technical engineering of the plant with our technological partners - supplying consumables and spare parts for the pellet mills of the worlds largest manufacturers

20/05/2010 rev.00Pavan Consulting S.r.l.3 Manufacturing dies, rollers and liners – both for customers who use La Meccanica mills and for competitors equipment - as well as machinery have enabled us to acquire exceptional competence and know-how in the behaviour of various raw materials during processing. Owing to this experience and competence, technical solutions, energy consumption and die productivity have been optimised thanks the synergies of: - the production organisation - the spare parts and after sale service division - the engineering division

20/05/2010 rev.00Pavan Consulting S.r.l.4 A MODERN ORGANIZED PRODUCTION WITH CNC

20/05/2010 rev.00Pavan Consulting S.r.l.5 AN ENGINEERING DIVISION + SPARE PARTS AND AFTER SALE-SERVICE DIVISION A flexible organisation with two business divisions to better focus on specific competencies and optimize human and instrumental resources

SPARE PARTS AND AFTER SALE SERVICE DIVISION CUSTOMER CARE The division has been structured to ensure that customers receive effective: – technical advice on dies also in relation to raw materials; – supplies of consumables – dies – rollers – liners for all leading brands; – complete maintenance of dies and rollers, including collection and redelivery service in some countries. This service is based on: – a production structure that is able to produce more than 2,000 dies/year for any type of mill, with fully computerized control of all production stages; – a quality assurance service starting from raw materials to the finished product with an in- house quality control laboratory for materials and heat treatments; – a roller and die maintenance service with active departments expressly organized at the Cittadella (Italy) headquarters and at Visbeck, near Vechta in Germany, including the collection and redelivery service when the conditions are suitable; – a technical customer care service with specialists who are ready to operate at the customers premises; – a free service with the presence of a technician for setting up dies during the test phase; – a fast service for processing requests from the offer to meeting the order 20/05/2010 rev.00Pavan Consulting S.r.l.6

ENGINEERING DIVISION It is organized to ensure an efficient response to customers who require machines and/or complete lines for the production of sawdust pellets and/or pellets from agricultural residue, and it ensure: – technical advice to define an optimal solution in relation to customer needs, to raw materials, to the final product and to local technical and environmental conditions; – financial advice on possible funding for the investment; – general and detailed design for fitting the production line into the available building spaces; – simple and reliable solutions to complex technological problems; – coordinating technical construction of the plant with the technological partners involved in the supply; – supervision of the assembly, mounting, start up and testing of the supplied machines and/or lines – education and training customers staff. It is based on: – a design office with some staff specializing in plant analysis, other staff specializing in machine design and other staff specializing in drawing up the technical documentation required by EU standards – an in-house productive structure that manufactures all the main mechanical components in-house with totally computerized control of each production phase; – an in-house assembly department that carries out preassembly of the mechanical structural work of the machines to ensure that they conform to standards; – a quality control service from the raw-material phase to the finished product with an in-house quality- control laboratory for materials and heat treatments; – a group of specialized service technicians to supervising mounting and start up machines and/or plants; – a rapid service for processing inquiries and quotations to meeting the order 20/05/2010 rev.00Pavan Consulting S.r.l.7

SOME INSTALLATION FOR WOODEN PELLETS A Plant with 8,0 ton/h. capacity - USA 20/05/2010 rev.00Pavan Consulting S.r.l.8

Wooden Pellets – Cap. 1,5 -1,8 ton/h. Hungry 20/05/2010 rev.00Pavan Consulting S.r.l.9

Hard Wooden Pellets – Capacity 9,0 ton/h. Romany 20/05/2010 rev.00Pavan Consulting S.r.l.10

Soft Wood Pellets – Capacity 6,0 – 7,0 ton/h. Belgium 20/05/2010 rev.00Pavan Consulting S.r.l.11

KEYS FOR GOOD QUALITY WOOD PELLETS AND EFFICIENT PRODUCTION Raw Materials quality and preparation: » Hard or soft wood or mixture have different characteristics and behaviour » Homogeneity and continuity of mixtures, granulometry and moisture of components ; Dusts recycling has: » To avoid too dry or wet dusts as well as overload of dust » To recycle about 1 – 3% to have a good mixing Conditioning of wood to reach before die a moisture of Hard Wood 11 – 12 % Soft Wood 8 – 12%: » Sprayed water, better if warm about 70 °C, steam isnt necessary; » Water addition 1,5 – 2,0 %, if more has to be done before conditioner; » Useful addition of sprayed oil up to 1%; Die compression rate: » Soft wood 6,5 – 7 times the diameter of holes » Hard wood 5,5 – 6 times the diameter of holes Temperature of: » Pelleting chamber, pellets and bearing less than 95°C 20/05/2010 rev.00Pavan Consulting S.r.l.12

ANALYSIS RESULT OF HARD WOOD PELLETS 20/05/2010 rev.00Pavan Consulting S.r.l.13 Analysis date: 07-19/04/2010 by SGS INSTITUT FRESENIUS GmbH SPECIFICATIONSU.M Hard Wood Pellets Sample n° Hard Wood Pellets Sample n° SPECIFIC GRAVITY kg/dm31,151,19 Met.: DIN APPARENT DENSITY kg/dm3-- Met.: UNI CEN/TS 15103: / WATER CONTENT g/100g4,64,9 Met.: DIN ASH (815°C) g/100g0,90,7 Met.: DIN51719 (a) NET CALORIC VALUE Mj/kg18,218 Met.: DIN (a ) The ash were higher than DIN Plus, why the furnace must be regulated. Furnace and drying line aren't supply of La Meccanica

Straw Pellets Installations - Poland 20/05/2010 rev.00Pavan Consulting S.r.l.14 Hammer Mill mod. MM 340/4P – 250 kW N° 2 Pellet Mill mod. CLM 800 P – 280 kW N° 2 Pellet Mill mod. CLM 800 P – 280 kW during erection

Straw Pellets Installations - Poland 20/05/2010 rev.00Pavan Consulting S.r.l.15 Hammer Mill mod. MM 340/4P – 250 kW Pellet Mill mod. CLM 800 P – 280 kW

KEYS FOR GOOD QUALITY STRAW PELLETS AND EFFICIENT PRODUCTION Raw Materials quality and preparation: » Different kind of straw have different characteristics and behaviour » Homogeneity and continuity of mixtures, granulometry and moisture of components up to 14% for a optimal result ; Dusts recycling has: » To avoid too dry or wet dusts as well as overload of dust » To recycle about 2 – 3% to have a good mixing Conditioning of straw to reach before die a moisture of 10 – 12 % » Sprayed water, better if warm about 70 °C, steam isnt necessary; » Water addition 1,5 – 2,0 %, if more has to be done before conditioner; » Useful addition of sprayed oil up to 1%; Die compression rate: » Straw 8,5 – 9 times the diameter of holes Temperature of: » Pelleting chamber, pellets and bearing less than 95°C Oversized cooler: » To use also as dryer, if moisture is relative high 20/05/2010 rev.00Pavan Consulting S.r.l.16

20/05/2010 rev.00Pavan Consulting S.r.l.17 ANALYSIS RESULT OF SOME POLISH STRAW PELLETS The caloric power is in relationship with density – moisture – ash content Analysis date: 03-19/05/2010 by CHELAB S.r.l. - Italy SPECIFICATIONSU.M Straw Pellets Sample n° 1 Straw Pellets Sample n° 2 Straw Pellets Sample n° 3 SPECIFIC GRAVITY kg/dm31,0551,2431,198 Met.: DIN 52182: / APPARENT DENSITY kg/dm30,47950,59690,6094 Met.: UNI CEN/TS 15103: / WATER CONTENT g/100g9,247,339,23 Met.: UNI EN : ASH g/100g3,924,96,9 Met.: UNI EN 14775: / LOW CALORIC POWER kj/kg Met.: UNI CEN/TS 14918: /

For more information, please, contact: LA MECCANICA S.r.l. Cittadella (PD) Italy Agent for Poland: SECOM POLSKA Sp. z o.o Lodz ul. Pilkarska 17 Tel (0) – Fax +48 (0) /05/2010 rev.00Pavan Consulting S.r.l.18