1. Torr-Coal We turn woody biomass residues into carbon neutral bio-coal Luck Westerbaan Division Director A.HAK Renewable Energy Bio-economie en de tropen, VTB 16-09-2016

6. Common practice

7. Alternatives are absolutely needed! More than 100 Million people impacted Economic loss 14 – 30 Billion USD Food imports just starting (e.g. 1.5 M tons of rice) 3% of world’s CO 2 emissions in this year Indonesia 2015

8. Multiple products Energy Forest basket Restoring rainforest Sustainable biomass Biodiversity restored is a triple P reforestation and agroforestry approach to reuse degraded areas across the tropical belt and to implement sustainable use of land with major environmental and social benefits Planet Strong CO2 mitigation Rainfall and water table restoration Restoration of biodiversity People Major employment opportunities Food security and health Reduced forest fire risk Profit Superior biomass to energy potential Major carbon credit potential Basket of value streams Integrated ecosystem design

9. Solution : starting up the “nutrient pump” and creating bio- diversity using the Sugar Palm as an engine… TreesTrees Micro- Organisms SoilSoil Sun Energy Minerals & Water Huma n Needs But we have to start up the Nutrient Pump: Food Water Energy Security MaterialsMaterials Medicines

10. Dead Wood, Tree Stumps & Roots Step 1: stop burning, but produce bio- coal pellets from residual wood Felling, cutting, debarking, chipping Bio-coal Torrefaction upgrading process

11. Year 0Year 1-3Year 4-6Year 7-11Year 15 time activities revenues -Produce bio-coal and bio char from residual wood -Fertilize land -Plant cassava, sugar palm, figs, leguminous trees -Harvest cassava-Harvest legumes -Produce bio-coal and bio char from residual wood -Tapping of sugar palms -Make space for Figs -Produce bio-coal and bio char from residual wood -Start cycle again -Biochar -Biocoal pellets -Cassava -Biochar -Biocoal pellets -Fruit -Biochar -Biocoal pellets -Ethanol -Biochar -Biocoal pellets -Precious wood -Biochar -Biocoal pellets Dead Wood, Tree Stumps & Roots How : creating a continuous production cycle…

12. Filmpje

13. Torrefaction enables us to turn biomass into a commodity… Bio-coal Green chemistry Bio-products Renewable energy Residual wood Torrefaction process Increase energy density Makes it homogeneous Makes it easy to store Makes it easy to pulverize Reduces volume

14. How does the biomass “upgrading” process work? untreated biomass Torrefaction Roasting process at 280- 320 ℃ in absence of oxygen Torrefaction Roasting process at 280- 320 ℃ in absence of oxygen Drying Cooling Pelletizing Combustor Heat recovery gas QTQT QDQD bio-coal pellets 50% wet 30% mass reduction 3% wet 50% densi- fication Energy density 2.5 GJ/m 3 Calorific value 9 GJ/t Energy density 14 GJ/m 3 Calorific value 21.5 GJ/t Homogeneous No biological reactivity Water resistant

15. Pellet sized 6 mm, l < 40mm Bulk density> 650 kg/m³ Moisture< 8% Ash< 4% Mechanical durability> 96,5% Net calorific value (lhv a.r.)21,5 -23 GJ/t HGI (own method)> 40 Volatile (daf)50-70% REBUILD Kalimantan will supply high quality grade bio-coal pellets o In accordance with ISO DIS 17225-8 o Produced from biomass residues o Using proven Torr-Coal torrefaction technology o 30,000 t/a commercial scale plant o Operational since October 2010

16. Advantages of bio-coal pellets o Torrefaction turns biomass into a tradable commodity o Enabling open air bulk storage/transport o Bio-coal pellets can be used in existing fossil-coal infrastructures to co-fire o Of course bio-coal pellets can be utilized in biomass plants 21.5

17. Torrgas solves these three traditional bio-gasification dilemma’s for small-mid scale gasification: 1.Physical: applying homogenuous, pulverisable, moisture free torrefied bio- fuel. 2.Technical: creating a tar and nitrogen free drop-in syngas without slagging. 3.Economical: splitting biomass in high value biocarbon and high grade syngas and thus maximizing the value creation

18. Torrgas bio-syngas can be applied for substition of natural gas and/or propane in existing gasburners 1.Drop-in properties: 12 MJ/kg, nitrogen and tar free syngas meets requirements for direct mixing without major burner modifications 2.Skid mounted bio-syngas generator: upto 30 MWth feed capacity can be installed on portable skid due to high volumetric reactor output 3.Limited logistic handling: torrefied biomass handling is far less complicated and space intensive than untreated biomass

19. Torrgas syngas can be applied for synthesis to chemicals & fuels and hydro formulations (high value conversions) Syngas

20. Torrgas technology also produces carbon with a wide range of applications 1.Activated carbon market: water and flue-gas cleaning 2.Soil Enhancer (biochar): a high-carbon soil amendment that retains water, microbes and nutrients. 3.Metallurgical char: high purity biochar can produce high purity steel with low carbon footprint. 4.Petcoke replacement for producers(Titanium, Silicium Carbide) that require low sulfur petcoke. 5.BBQ-briquetes: char is superior to charcoal due to its higher carbon content and lower volatile content char with 2-20µm pores

21. o Exploitation of a 176.000 ha concession at Kalimantan (Borneo, Indonesia) o Under supervision of ARSARI Enviro Industri o A reforestation project to rebuild sustainably managed forests and agriculture land o Originated by and under supervision of Willie Smits o REBUILD project has been enthusiastically received at the COP21 in August 2015 and at the World Economic Forum in Davos in January 2016 o ARSARI HAK Renewable will produce 340.000 tons of black pellets with a net caloric value of 21.5 GJ per metric ton at the Kalimantan concession o Off-take contracts are open for 10-15 years o Development starts in 2017 o Energy infrastructure to be build by A.Hak o A Dutch renowned EPC contractor Summary REBUILD Kalimantan concession

22. Back-up slides

23. REBUILD Kalimantan o 176,000 ha concession o Staged approach o Ramping up in blocks of 30.000 ha o Revenue stream generated via mix of products o Starting with production of torrefied pellets (340.000 t/a) o Followed by ethanol production o Asia is seen as the main off-take market o REBUILD Kalimantan is providing jobs to approx. 60,000 workers o The project is good for 5 million t/y CO 2 emission reduction o 90% of that reduction comes from the substitution of gasoline by ethanol and of fossil-coal by bio-coal o In REBUILD Kalimantan, for 104,000 ha exploited, 50,000 ha of primary forest is conserved and 16,000 ha is re-created over 25 years

24. Background of the parties involved

25. There is a relevance between businessmen and culture. Business should support culture and culture civilizes business. Hopefully businessmen who are influenced by culture become more civilized – “Culture civilizes businessmen” - Mr. Hashim Djojohadikusumo Arsari Group is a holding company or businesses ranging from bank, agribusiness, rubber plantation, tin mining, developing renewable energy derived from aren (arenga pinnata) trees and developing technology to tap the power of water. As a company, Arsari is not only low-profile and down-to- earth, but also having strong kinship in working environment, environmentally concern, preserving cultural heritage, and provide future well-being to others ARSARI Enviro Industri

26. Dr. Willie Smits o Dr. Willie Smits is a conservationist, scientist, forest engineer – that created and developed the “Rebuild” formula over years of research and tests o The concept builds on his extensive research on Sugar Palm, Indonesian forests and work with local communities o Willie has developed methods, “recipes”, for regenerating forest and optimizing outcome in different environments o His flagship “Samboja Lestari” project constitutes a successful example of rapid forest restoration – combined with production and animal conservation o Willie has also spent significant amounts of time with local tribes – which is reflected in design and principles of Rebuild and ensures that projects are correctly anchored among rural communities

27. o Commercial scale plant o Operational since October 2010 (15 Fte) o Located in Dilsen-Stokkem (Belgium) o Indirectly heated rotary drum o Capex +/- 17 million Euro o Project IRR 15% o Production of bio-coal powder and pellets o In accordance with ISO DIS 17225-8 o Capacity: 30,000 t/a bio-coal o Input: 90.000 ton woody biomass (wet content +/- 50%) We produce bio-coal since 2010

28. We produce bio-coal powder and pellets Particle size0,1-2 mm Bulk density> 250 kg/m³ Moisture< 3% Ash< 4% Calorific value (lhv a.r.)22-26 GJ/t Volatile (daf)50-70% Pellet sized 6 mm, l < 40mm Bulk density> 650 kg/m³ Moisture< 8% Ash< 4% Mechanical durability> 96,5% Calorific value (lhv a.r.)21,5 -23 GJ/t HGI (own method)> 40 Volatile (daf)50-70%

29. When sustainably managed, biomass is an inexhaustible source of energy. You only have to find a way to turn biomass into a tradable commodity… Torrefaction can help us out

30. Bio-coal is a commodity which can be sold in three markets Green chemistry Bio-products Renewable energy - Syngas - Bio char - Activated coal - Carbons - Energy plants - District heating - Premium market 0.7 MW Torrgas gasifier Hanasaari power plant (Helsinki Finland)

31. o Torr-Coal found in a.Hak a strong shareholder EPC contractor 20 branch offices worldwide 2.500 Fte / 400 million Euro turnover To design, build and maintain torrefaction plants worldwide o A.hak has two torrefaction plants under development: o Russia, in partnership with Gazprom (252k t/a) o Indonesia, in partnership with ARSARI Enviro Industri (340k t/a) Ramp up bio-coal supply

32. To secure long term supply of sustainable originated bio-coal we partner with REBUILD

33. What about combining restoring forests, plus additional permanent carbon storage in soil and huge production of biofuels, saving biodiversity and creating food security…? CO 2 Emissions Sequestration

34. Sugar Palm Palm Oil Sugar Cane Corn Land Energy/ha Water Pesticide Species Food Labour Climate Planting Processing High High Low No Diverse Security Permanent Carbon Once All Year Availability Demand Positive Low Low High Yes Mono Conflict Seasonal Carbon Yearly Seasonal Availability Demand Negative Because : the Sugar Palm is a champion in all fields

35. Own Use in ITCI Income Generation Power for Forest Camp Gasifier Electricity Heat for Drying, Evaporation, Distillation Villages Balikpapan Export Pellets Torrefaction Pellets Own Need Electricity LNG Fuel Clean Syngas for other uses Biochar/Nut rient Recovery Gasification

36. Torr-Coal Group Jan Brouwers j.brouwers@torrcoal.nl +31 - 651 - 989938 www.torrcoal.com Hak Renewable Energy Luck Westerbaan lwesterbaan@a-hak.nl +31 - 6 55 - 397 534 www.ahak.nl www.renewable.ahak.nl Arsari Enviro Industri Willie Smits willie.smits@icloud.com

37. Torrefacts

38. Biocoal is a solid fuel made from biomass by heating it in an inert atmosphere. The result is either charcoal, or if the process temperature is mild, a product called torrefied wood. Charcoal and torrefied wood can be called by common name bio-coal. Compared to untreated biomass bio-coal has several advantages. It has high energy content, uniform properties and low moisture content. Bio-coal can be used in coal fired power plants, which have difficulties with other biomass based fuels, such as wood chips. If bio-coal raw material originates from sustainably managed forests, the product is carbon neutral. The growing new tree generation captures the same amount of CO2 from atmosphere that is released in the manufacture and combustion of bio-coal. Bio-coal can be made from nearly all kind of organic materials. Wood is the most important raw material, but also straw, peat bones and even manure can be used. Most important woody biomass sources are: - Waste wood residues from wood producing industries (pulp, sawmill, …) - Solid municipal waste: A/B/C wood - Energy crops (willow / poplar) What is bio-coal?

39. Bio-coal is made with a carbonization (also called pyrolysis) process, where biomass is heated in the absence of oxygen. Heating causes thermal degradation, producing various gases and solid material. If the highest temperature of carbonization is above 400 °C, the solid material is charcoal, and contains mostly pure carbon. If the temperature remains between 200 and 300 °C, the solid product is called torrefied wood, and the process torrefaction. Carbonization of biomass produces various gaseous products; part of these can be condensed into liquid called pyrolysis oil. The non-condensable gases contain mainly carbon dioxide, carbon monoxide and hydrogen. Both non-condensable gases and pyrolysis oil can be used as fuel. This fuel is employed as energy supporting the torrefaction process. Temperature is most important process condition in carbonization. Most bio-coal properties, such as heating value and ash content depend on temperature. Also yield depends on temperature. In mild torrefaction, where temperature is 230 °C, the yield can be over 90 % percent. Increasing temperature to 900°C decreases the yield to 25 % The energy density of torrefied wood is significantly better compared to chipped forest residue, since moisture content of wood fuel can be circa 50 % after harvesting. Moisture content of torrefied wood is much lower, which improves energy density What is carbonization?

40. Since the beginning of civilization, biomass has been a major source of energy for the world’s people. Biomass is the primary source of energy for half of the global population. In the developing world, wood biomass is a major renewable energy source, representing a significant proportion of the rural energy supply. At present, bio-energy is the most important renewable energy option and will remain so the near and medium-term future. It will therefore play a crucial role in integrated systems of future energy supply and will be a valuable element in a new energy mix. In the past decade, the number of countries exploiting biomass opportunities for the provision of energy has increased rapidly, and has contributed to making biomass an attractive and promising option among other renewable energy sources. Biomass has the potential to become the world’s largest and most sustainable energy source and will be very much in demand. The annual global primary production of biomass is equivalent to the 4,500 Exajoules (EJ) of solar energy captured each year. A mere 10 percent increase in the efficiency of biomass production through irrigation, manuring, fertilizing and/or improved management through the cultivation of idle land, would create energy equivalent to the total current global energy demand. A prerequisite for achieving the great potential of bio- energy in all regions is replacing the current inefficient and low-intensive management systems with best practices and technologies. Woody biomass is a bio-renewable