1. Feasibility Study Fuel Cane Power Generation Project for Barbados Agricultural Management Company, Ltd. Prepared by: Schaffer and Associates International, LLC 1020 Florida Boulevard Baton Rouge, Louisiana 70802 USA

2. DIVERSIFICATION POWER GENERATION

3. DIVERSIFICATION ETHANOL

4. DIVERSIFICATION SPECIALTY AND REFINED SUGAR

5. Introduction and Background Barbados Agricultural Management Company, Ltd. (BAMC) developed a model to provide sustainable energy from cane residue (bagasse). This plan:   Provides vision   Diversifies energy sources   Substitutes green fuels for fossil fuels   Supports environmental stewardship   Creates added value for cane farmers   Promotes economic development

6. Introduction and Background Summarization of Project Objectives:   Investigate the viability of the fuel cane model   Evaluate the current sugar estates/cane fields, sugar factories and sugar production   Assess the potential for power production   Provide economic and financial assessment for BAMC in the energy sector   Determine the best way forward for BAMC in developing its energy program   Provide options and alternatives to the existing model that will make it economically feasible

7. Introduction and Background Summarization of Project Benefits:   Fuel security   Ethanol fuel blends   Green fuel for electricity product   Food security   Tourism   Sustainable/renewable supply of electricity   Minimal impact on tourist areas and green spaces   Economic Growth Driver   Creates employment   Creates economic stability for cane farmers and investment confidence   Provides renewable source of power (ethanol & electricity)

9. Agricultural Operations Cane Production – –Commercial Cane – –Fuel Cane Harvest and Transport Company Agricultural Input Suppliers Farmers and Outgrowers

10. Industrial Operations Sugar Production – –Syrup – –Molasses – –Sugar – –Refined & Specialty Sugars Ethanol Production Power Production – –Bagasse – –Natural Gas – –Waste (Wood and Paper)

11. Options: Summaries SAIL initially developed seven potential cogeneration models and ultimately nine that were taken into consideration:   Grinding Rates   Acres of Cane in Production   Total Tons of Cane   Analysis (% Brix, % Pol, % Fiber, Mixed Juice Purity)   Products (Specialty Sugar, Molasses, Refined Sugar, Ethanol, Electricity)   Power Generation Note:The final two models using combinations of options were developed subsequent to the last site visit in September 2005.

12. Option #9. Case 2A + 1B with Combined Cycle Power Assumed Gas Turbine Combined Cycle, Sugar Cane & HFC, Refined Sugar, Specialty Sugar & Fuel Ethanol (Case 2A + 1B with Combined Cycle Power) Sugar cane: Fiber: 15.85%, Pol: 12.65% High fiber fuel cane: Fiber: 28%, Pol: 8% Production – –Cane593,388 metric tons – –Refined Sugar (local)12,000 metric tons – –Specialty Sugar (local)5,000 metric tons – –Specialty Sugar (export)10,000 metric tons – –Molasses9,215 metric tons – –Ethanol14,000,000 liters/year – –Electricity (bagasse)102,751 MWh – –Electricity (natural gas)157,680 MW/year

13. Option #9. Case 2A + 1B with Combined Cycle Power Benefits – –High sugar production during part of the year and high fiber for electrical generation and ethanol production during the remainder of the year – –Combined cycle makes up to 30 MW of firm power possible Constraints – –Need to find a suitable variety of high fiber cane – –Requires larger initial investment Acceptable: – –Yes Preliminary Indicative Capital Costs: $156.0 million

14. Project Economics (Option 9) Major Foreign Exchange Earnings/Import Substitution Savings ProductQuantity Annual FOREX Savings (U.S. $) Fuel Ethanol 14.4m liters/year 8.425 million Sugar 27,000 MT per year (local/export) 15.200 million Molasses 9,215 MT 0.844 million Power (from fiber) 102,800 MwH 11.308 million Power (from natural gas) Balance up to 30 Mw (158,000 MwH) 2.897 million* Power (from waste) 8,200 MwH 0.902 million Total US $39.576 million * Difference between using Natural Gas versus Fuel Oil/Diesel

15. Project Economics Historic FOREX Earnings under E.U. Preferential Quotas Annual Quota Tonnes Euro Gross Euro/Year 50312725 36.5 million 50312625 31.5 million 49300525 25.9 million 49300 425 (US $25.1 million) 20.9 million 32097 425 (US $16.4 million) 13.6 million Hence, the new Project’s FOREX benefits compare favorably with historical economics.

16. Project Economics Any future additional land will be dedicated to Fuel Ethanol, Power and Molasses Any future additional land will be dedicated to Fuel Ethanol, Power and Molasses Assures continuance of farming in the traditional farming area Assures continuance of farming in the traditional farming area Provides fuel security Provides fuel security Project complies with E.U. Settlement Requirements Project complies with E.U. Settlement Requirements

17. Human Resources New positions created by: New positions created by: –New product lines (ethanol, power, specialty and refined sugar) –Extended crushing season Extensive re-training, where necessary, to re- locate existing technical staff Extensive re-training, where necessary, to re- locate existing technical staff Senior management to take on more responsibilities Senior management to take on more responsibilities Streamline overhead and administrative functions Streamline overhead and administrative functions Centralize all functions to new industrial site Centralize all functions to new industrial site

18. Recommendations For BAMC – –New Multipurpose Factory – –Cane Production – Replanting Scheme Markets – –Specialty Sugars/Refined Sugars (U.S., E.U., Canada, and Local) – –Molasses – –Ethanol – –Electricity High Fiber Cane Research