1. GIANT KING GRASS Biomass Project

2. “The Philippines should now move towards a low-carbon economy. That another delay in the implementation of the Renewable Energy Law, is a backward trend in the battle against Climate Change. There is a need to speed up green technological change towards clean energy”
Ruth P. Briones
September 2011

3. Greenergy Solutions Inc.
Greenergy Solutions Inc (GSI) had entered into with partnerships with leading technology and engineering companies worldwide which enable it to engage its customers requirements and needs in tune with industry trends and market needs.
Greenergy Solutions Inc. (GSI) is a renewable energy company, registered in the Philippines, organized by professionals with more than 100 years combined experience in technology, operations, financial and policy development in environment and power utility sectors.
The company’s founders and management seek to utilize their professional experiences, relationships and unique skills to originate environment and renewable energy project(s) and collaborate with foreign partners and investors experienced with development of renewable energy projects.
The company envisions to be a total renewable energy project development and technology provider, and to be a long-term reliable partner offering an integrated range of expertise on renewable energy project development.
ALL RIGHTS RESERVED

4. overview
The potential of three biomass resources (sugarcane trash, napier grass and fast growing trees) were examined as �green power� energy feedstock alternatives.  The positive socio-economic impacts of a Biofuel harvest included the provision of 4000 seasonal jobs and the elimination of up to 14 million dollars in oil imports. Harvesting biofuels for process energy can also help develop the expertise necessary to create �green power� from co-generation in the future if investments are made in new boiler technology. In this application, napier grass appears to be a promising new incremental source of biomass.
The Philippines has an existing capacity of 5,500 MW of renewable energy power. Out of which, 61 percent is hydropower while 37 percent is geothermal power. Biomass energy application accounts for around 15 percent of the primary energy use in the country. The resources available in the Philippines can generate biomass projects with a potential capacity of around 200 MW.
With rising energy costs for fossil fuels, new efforts are required to more fully develop biomass as an energy source for process heat and renewable energy power production in the Philippine sugar cane industry.
Biomass energy plays an important role in reducing oil imports, particularly since oil prices have risen. Approximately 80% of the coal and 100% of the oil used in the Philippines is imported. Oil intensifies the detrimental impacts on the trade balance of the Philippines as 125 million barrels of fossil fuels are imported each year, representing more than 3.5 billion dollars. The use of imported coal for power generation is also increasing, and currently represents about 10% of imported oil energy.
Its cost of production was projected to be only 7% higher than the cost of cane trash harvesting, mainly due to land lease costs for the crop.� The main concerns with fast growing trees are the long period farmers have to wait prior to receiving an economic return, and that wood fuel prices may rise significantly due to competing end use applications in the densely populated Philippines. �
The country has abundant supplies of biomass resources, offering much potential for clean energy generation.  These include agricultural crop residues, forest residues, animal wastes, agro-industrial wastes, municipal solid wastes and aquatic biomass.
�Like any developing country, the Philippines is facing a formidable challenge of fostering sustainable energy options to support the energy requirements of its economic and social development goals with minimal adverse effects on the environment. In the Philippines, renewable energy sources contribute 43 percent to the country’s primary energy mix, one of the highest in Southeast Asia.
The most common agricultural wastes are rice hull, bagasse, coconut shell/husk and coconut coir. The use of crop residues as biofuels is increasing in the Philippines as fossil fuel prices continue to rise. Rice hull is perhaps the most important, underdeveloped biomass resource that could be fully utilized in a sustainable manner.

5. Giant King Grass Highest Yield=Lowest Cost
Very high yield
100 dry mt/ha/year (44 US t/acre)
Sustainably grown, not a food crop, grows on marginal land
Perennial grass, harvest 2x/year
Not genetically modified
Not an invasive species
Needs sunshine, warm weather & rain or irrigation-no freezing
Fertilizer use is modest
No pesticide
Extensive bioenergy test data

6. Giant King
Grass
Test plot
6 ½ months
after planting
Cutting,
measuring &
propagating

7. Giant King Grass Has Been Extensively Tested With Consistent Results
Proximate Analysis
Unit
Sun Dried
As Received
Giant King Grass
Bone Dry
Total Moisture % 14
Volatile Matter
65.68
76.37
Ash
3.59
4.17
Fixed Carbon
16.74
19.46
Total Sulfur
0.11
0.13
HHV
MJ/Kg
15.85
18.43
LHV
14.52 -

8. Giant King Grass & Waste Straws Have Same Properties

9. VERTICALLY INTEGRATED PLATFORM
GREENERGY SOLUTIONS’
POWER AND BIOMASS
BUSINESS
MODEL
VERTICALLY INTEGRATED
PLATFORM

10. Strategies for. land tenurial security as sites
Strategies for land tenurial security as sites for the napier grass plantation
Entering into collaborative arrangements involving peoples’ organization who
were awarded tenurial instruments by the Philippine Government the terms
would include benefit-sharing arrangements, and aim to engage these local
communities in productive activities that generate positive social, economic and
environmental outcomes for local communities.
This scheme strengthens private sector investment in peoples’ forest initiatives at
same time provide opportunity to manage carbon and energy strategies.
The proposed project - the establishment of energy grass plantation
for Biomass power plant establishment and pellet mills will spur development
in the uplands.

11. Napier Grass
Napier grass (Pennisetum purpureum) is a very tall grass similar to sugar cane and energy cane
Well suited to tropical environments.
Grown in fertile soils and adequately fertilized, it can produce a large amount of biomass
Easily planted from stem cuttings. Like sugarcane, it can be ratooned after harvesting.
Adapted cultivars can be maintained for 5-10 year production cycles.
High productivity
Good water use efficiency, low P and K requirements, potential for use of Biological Nitrogen Fixing (BNF) varieties,
Stand longevity and better adaptation to marginal and erodible soils than sugar cane.

12. Sites Greenergy Solutions’ Biomass Project PANGASINAN 1 AREA- 6,000
30 MW
Pellet Mill
PANGASINAN 2
10,000 hectares
ZAMBALES
Sites
Greenergy Solutions’
Biomass Project

13. Zambales and Pangasinan, Luzon, Philippines Energy Crop Plantation/Power Plant/Pellet Mill;
26,000 ha giant Napier grass plantation in the Philippines, with co-located 90 MW biomass power project and biomass pellet mill development company;
Electricity will be sold under long-term Power Purchase Agreement to the Rural Electricity Cooperatives;
Credit enhancement for power purchaser likely to be procured;
Concessionary power purchase tariff (approx. US$0.12 cents/kWh);
Pellet mill will export biomass pellets to customers in Asia and/or Europe;
Power plant and pellet mill to be organized as separate projects;
Power plant – approx. US$55 million generating 30 MWe
Pellet mill – approx. US$33 million
PROJECT
DETAILS

14. Locations : Pangasinan, and Zambales, Philippines
Accessible to port
Interconnection with main Luzon grid – multiple options for power sales
Site availability – 26, ha site leased from government by local NGOs or under contract farming
Sustainable development model – local NGOs will form JVs with the Project under Contract Farming scheme
Company in a social enterprise model to manage land leases, generating jobs for local villagers
Locations : Pangasinan, and Zambales, Philippines

15. GREENERGY SOLUTIONS’ POWER AND BIOMASS
NAPIER GRASS
PLANTATION
PELLET MILL
BIOPELLETS
GREENERGY’ Power and Biomass is developing napier grass plantations in the Philippines;
Objective to be the low cost producer of sustainable biomass for sale into international markets
Giant napier grass to be supplied directly to power plants under development Pellet mills will also process napier grass into bio-pellets
Bio-pellets will be sold to European and Asia customers for co-firing in coal-fired power plants
Strong sustainability; no displacement of food crops; job creation/electricity for local community

16. Markets---Customers Well established, rapidly growing market
50 to 100 million tons/year of projected demand,.
Why ?
DEMAND/SUPPLY IN EUROPE
EU commitment to reduce greenhouse gas, expand green power options
German commitment to take offline nuclear generation
As well, with coal prices at near record highs, alternatives become more attractive
Unlike wind and solar, biomass power is continuously available
RESULT: Biomass plants in construction/planning and increase in co-firing
Well established, rapidly growing market
Market is currently 12 million tons/year
Additional 40 million tons per year projected to be required for electricity generation by 2020,
Another 50 million tons per year required for heating and cooling by 2020, in order to meet national targets
Pellets used for co-firing in coal plants and as fuel in biomass power projects
Demand projected to grow 15-25%/year thru at least
Additional supply must be provided by North
American/Asian producers
 Europe does not produce enough wood biomass to
meet demand
 Pellet Mills being built in SE USA; British Columbia,
Canada
 Relatively high cost base; little vertical integration
 Controversy over whether sustainable forestry
practices followed
 Recent price quotes of approximately $180/MT
(CIF Rotterdam

17. Markets--- Customers DEMAND IN ASIA Just beginning, but huge potential
PRIMARY REASONS FOR POTENTIAL GROWTH:
Competitive with coal
Access/availability of biomass
Biomass is easier and sometimes cheaper option than gas-fired generation
Regional focus on reducing carbon/green energy part of generation mix
China
Co-firing coal power plants located along coast/rivers
10GW coal power plants along coast in Shandong Province alone
10% co-firing would require approximately 6 million tons of biopellets
Potential for large-scale coastal biomass power plants (300 MW each)
Japan
60GW coal plants; Co-firing; Nuclear becoming less of an option; ability to meet
Kyoto commitments relies on non-nuclear solution to generation options
Potential for large-scale coastal biomass power projects (300 MW each)

18. DEMAND IN ASIA (CONTINUED)
Korea
14GW coal plants. Committed to biomass. Co-firing and stand-alone biomass plants
South Korean governments estimates that demand for biomass pellets will increase from 20,000 tons/year in 2010 to 5 million tons/year in 2020
Potential for large-scale coastal biomass power plants (300 MW each)
India
Inability to set up domestic energy crop plantations due to land use constraints
Need for 100,000 MW of new capacity to meet demand over next few years
Constraints on developing coal and gas-fired power
No security of supply for agricultural waste biomass
Significant potential for coastal biomass power projects (300 MW)

19. Markets--- Customers SUPPLY IN ASIA
Biomass supply has been limited to agricultural waste
Rice husks; palm kernel shells; empty fruit bunches
No security of supply – farmers raise prices on agricultural waste, causing financial loss for power plants
Limited supply of pellets; larger-scale biomass power plants have not been possible because of limited biomass supply
NO COMPANY IS FOCUSED SOLELY ON SUPPLYING THIS MARKET
OPPORTUNITY EXISTS TO ESTABLISH A DOMINANT MARKET
POSITION THROUGH COMBINING ENERGY CROP
SUSTAINABLE FORESTRY OPERATIONS IN SIBERIA AND SE ASIA

20. The Philippine Government Requirements for Biomass
In the Philippines, renewable energy sources contribute 43 percent to the country’s primary energy mix, one of the highest in Southeast Asia.
The Philippines has an existing capacity of 5,500 MW of renewable energy power. Out of which, 61 percent is hydropower while 37 percent is geothermal power.
Biomass energy application accounts for around 15 percent of the primary energy use in the country.
The resources available in the Philippines can generate biomass projects with a potential capacity of around 200 MW.

21. ONE BIOMASS POWER PLANT-
30 MW BIOMASS POWER
PROJECT AND ENERGY CROP PLANTATION (1500 ha)
TOTAL PROJECT COST FOR ONE PLANT: $ 55.0 M
FUNDING ARRANGEMENT: 30% Equity 70% Debt

22. PROJECT OVERVIEW 90 MW biomass power project
Co-located with 26,000 has king grass plantation in Pangasinan and Zambales
For each site 1500 ha dedicated to power project; the remaining area will be dedicated to a pellet mill (separate special purpose project companies)
Biomass pellets to be exported to utility customers in China, Korea and Japan
Europe and Japan (used for co-firing in coal-fired power plants)
Feedstock - giant napier grass
2-3 harvests/year
18 kj/kg energy yield approx. equivalent to Grade “C¨ coal
Build-Own-Operate basis
Power Purchase Agreement with Rural Electric Cooperatives

23. PROJECT ADVANTAGES
Secure biomass fuel supply and pricing – solves key risk factor for biomass power plants.
Ability to increase scale as needed to meet baseload power demand.
Lower cost than diesel and oil-fired power.
Fuel diversification for Luzon grid; baseload capability helps balance intermittent hydroelectric power.
Reliable power supply – no fuel delivery interruptions.
Renewable energy source – clean energy eligible for carbon credits.
Approx. 250 jobs created per 1000 ha at plantation.
Furnishes reliable power supply and creates major export industry (biomass pellets)

24. Napier Grass Feedstock
30 MW power plant requires 1500 ha co-located
napier grass plantation
Power plant utilizes 600 metric tons/day
King grass yield – metric tons/ha
Energy yield – 18.4 Mj/Kg (equivalent to lowrank coal)
Energy yield in Gj/ha –
(Foregoing figures provided by prospective Supplier.
Estimated total project cost is US $ 55.0 M
Development timeline : 24 months

25. Napier Grass Plantation

26. Napier Grass Feedstock
Fast-growing;
Giant napier grass produces in first year
Other crops only produce 2-3 years after harvest
Best suited for tropical/sub-tropical areas
Napier grass can be grown in acidic or mildly saline soil (no displacement of food agriculture)
Requires at least 100 days sunshine, at least 800 mm rain or irrigation

27. Napier Grass Feedstock
30 MW power plant requires 1500 ha co-located napier grass plantation .
Power plant utilizes 600 metric tons/day
King grass yield – metric tons/ha
Energy yield – 18.4 Mj/Kg (equivalent to lowrank coal)
Energy yield in Gj/ha –

28. Napier Grass as Biomass Power Plant Feedstocks
30 MW grass-fired electricity generating plant needs 460 tonnes of grass every day
Average household in Asia uses 1200 kWh/year or average power of 0.14 kWAverage household in US uses 11,200 kWh/year—1.3 kW
30 MW plant can supply 214,000 Asian households
30 MW power plant requires hectares of land (using Giant King grass with yield of 350 tons/hectare wet and dry)
One hectare can provide electricity for households

29. Cost Estimates for establishment, protection and maintenance of One-hectare Napier Grass Plantation
Activities
Cost per hectare
A. Nursery Operations (seeds/seedlings procurement and handling, nursery site preparation, sowing of seeds, gathering & preparation of soils, bagging of soil, potting of seedlings, preparation of potbeds and arranging pots, maintenance of seedlings, cost of plastic bags, cost of fertilizer)
PHP 9,544.0
B. Plantation Establishment ( Detailed survey & mapping, site preparation, transport of seedlings, planting)
PHP 14,756.0
C. Maintenance & Operation ( Plantation Maintenance, green break construction, replanting, patrol work, fertilizer requirements)
PHP 9,074.0
D. Capital Outlay/Infrastructure ( variable road construction, bunkhouse, look-out tower)
PHP 8,000.00
E. Supervision & administration
PHP 8,000.0
F. Infrastructure Maintenance
PHP 8,600
Total Cost Per Hectare
Total cost per 100 Hectare
PHP 49,984
USD 1,162.42
PHP 4,998,400.00
USD 116,241.86

30. Napier Grass Feedstock
Fast-growing; giant napier grass produces in first
year
Other crops only produce 2-3 years after harvest
Best suited for tropical/sub-tropical areas
Napier grass can be grown in acidic or mildly saline soil (no displacement of food agriculture)
Requires at least 100 days sunshine, at least 800 mm rain or irrigation

31. Project Site – Social Enterprise Initiative
26, 000 has sites has been awarded to local POs/NGOs from Philippine government
Leases will be assigned to JVs to be formed with Peoples Organization – under a contract farming scheme employment to be provided to local villagers together with lease income stream
Potential to develop a complementary export industry with hard currency earning potential
Significant demand for sustainable fish farms as a response to over-fishing in open ocean
Site is in an area which is prone to flooding
Port access by road for export of biomass pellets

32. Project Impact in the Philippine Market
Important demonstration project for vertically integrated biomass (follow-on
projects in the Philippines and other Asia markets) involving electricity
cooperatives:
- Social enterprise precedent through partnerships with local NGOs
- New precedent in Asia for large-scale biomass projects
Most biomass power projects in Asia do not exceed 20 MW due to limited
agricultural waste feedstock supply
Biomass projects are being planned in Europe at a scale of up to 300 MW
New renewable green energy source for the Philippines
Scalable up to much larger capacity
Reliable baseload electricity source
Alternative to diesel and HFO for island markets outside Luzon

33. PROJECT AND ENERGY CROP PLANTATION
BIOMASS PELLET MILLS
PROJECT AND ENERGY CROP PLANTATION

34. Pellet Mill Project Structure
Project to be undertaken in parallel with 30 MW
biomass power project.
Pellet Mill and 4500 ha plantation to be owned by
separate special purpose company for Giant Napier
Grass pellets
Already tested by major European utilities for co-firing in
coal-fired power plants
Discussions under way with potential customers
US$33 million indicative estimate for pellet
mill/plantation capital costs

35. Biomass Pellet Mill

36. Pellet Mill Project Status
IMPLEMENTATION
 CROP:
Agreement reached with vendor to provide
Giant Napier grass
 TECHNOLOGY:
Discussions ongoing with Chinese pellet mill
equipment vendors
Equipment selection based on technical
and financial analysis
 CUSTOMERS:
European utility customers identified with
preliminary discussions
Chinese customers identified;
Huge demand noted with preliminary
discussions

37. POTENTIAL PELLET MILL PROJECT STRUCTURE
Special Purpose Company to be
established to develop, own and manage
plantation and pellet mill
Capital Cost Investment: $33,000,000
Investment Funded in
Conservative Scenario Equity Finance followed by
5 year debt take-out on 70/30 debt-to-equity ratio
Cash Flow beginning in 2013
Payback period----Approximately 2 years
Development Budget funded commencing
in 2011/12

38. Financials (Pellet Mill/Plantation)
PROJECTED ECONOMICS/PELLET MILL AND PLANTATION
Projected Plantation size 285,000 tons/year
Sufficient size to allow for one “Handy Size” vessel every other month
Approximately 50 tons/hour pellet mill and 5MW captive power plant
Covering 4,500 hectares
Total Investment
Plantation & Crop: $9,000,000
Pellet Mill: $6,500,000
Power Plant: $3,800,000
Port Facilities: $3,800,000
Trucks/Harvesters: $5,400,000
IDC & Working Capital: $4,500,000
TOTAL: $33,000,000
Anticipated Construction Period: Nine Months

39. Philippine Government Incentives and Supports
A seven-year tax holiday;
No tax on the sale of carbon credits generated from renewable energy sources ;
A 10-percent corporate income tax thereafter;
Custom duties are zero rated on equipment and facilities to be used in the Renewable Energy Projects;
The law also prioritizes the purchase, grid connection and transmission of electricity generated by companies from renewable sources, and exempts power generated from these sources from value- added tax, and custom duties, these measures will ultimately ensure a market for renewable energy, and provide a system that will allow consumers to choose green sources of energy in the long term.
The Philippine Renewable Energy Act of 2008 provides “Pioneer” and “Priority Investment” status to the proposed gasification projects of Greenergy as Renewable Energy projects and is designed to spur investments in the renewable energy sector with incentives.
The incentives include under the Renewable Energy law

40. Non-Fiscal Incentives of Biomass Power Plant Facilities Under the Renewable Energy Law (R.A. 9513)
Priority purchase of electricity generated
Priority grid connection
Priority transmission of electricity
Green option
Priority investment area

41. Please Contact us RUTH P. BRIONES Greenergy Solutions Inc.
Rms 401 &402 Verde Oro Bldg., Commonwealth Ave.
Diliman, Quezon City, Philippines
Phone No ; Telefax No
Address:
Website: