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@ Business Proposal “Developing 72.000 ton/ year Wood Pellet as Biomass Fuel Production Facility Based on Wood Waste in EastJava” Sa oo” Project Developer: Koperasi Energi Biomiassa Indonesia (Cecung SancpuraLaniDasar «J KH Aba Sate No ®Jokara Solan, OKI “stats ‘KoperesiEnerg Biomassalncdonesia KEEN Indonesia Biomass Energy Cooperation was estabished in 202tby the ‘members of Masyarakat Energi Blomassa Indonesia (MEBI)/ Indonesia Biomass Energy Sosely with business actives related to biomass production, trading, andeaneultancy. Developer: Koperasi Energ Bemassaindonesia ‘Sector! Subsector: Renewable Energy) Fuel ‘Sis: Greenfield Location: Lumajang, East Java Estimated IvestmentCost: USD 255miion ‘Construction: 2 1Bmonths “Targeted Financial Close: ami March 2021 Structure: KEBI_ providing O&M and management expertise and Investor providing financial or strategic (assets or technology) Node of otter: Enully participation in SPV company *%ot Ownership: Minimum S1%n SPV company Investment Period: Minimum ‘years ‘Francia! Parameters: NPV ;USD 52rriion Equly IRR 2% Payback period ;35years Establish 100.000ton/ year wood pellet producton faityn East Java inorder to ful roving demand of biomas fuel as substitution for coalin Japan / South Kore, < “This mata zim to providing info for potential investor related b wood pellet industry as tolow: + Operational Aspect of wood pelletmanufactuting process + Market Aspectof wood poll commodity forlocal and overseas market Goals Financial closing for 6000 ton per menth wood pellet manuiactuing faclty inated by Indonesia Biomass Energy Cooperation /- Koperasi Energi Biomassa Indonesia (KEB!) nora, L Product ‘1AWoodPellet Source of renewable energy made ftom dersiied woody biomass for _dectrcty generaton or residentalheatng + Raw Material ‘Wood Waste -Foresty by-product and woodworking ndustry Energy ‘Wood :Desicated biomass plantation + Process: Denstied wih high temperature and pressure to shapeurifornty = nual “Pelletized biomass have benefits such as increasing calorific vakweand providing easiness inhanding storage anditanspertaton! = Batch) 13Wood Pellet Usage Wood Pollet not just usod a5. fuo! for power generation or heat Biomasseneray + Industiel rade + Household arade But also could beused as: Resilertial Stove Agricuttre Pettitte + Livostockbeding + Plant substrate Horse Bedding Mushroom Substrate ‘14Wood Pellet Specification (of Coal ara famum | ss am | sowoust | sawaust | grown | Wooderip ‘ram | nina Meme | “Sewmat | et ro | Lunt | Rena Pete ue ee ce ® ® aa ere % fe % oa [a | a |e || aps Ey ‘31 —|— 08 |e) —| a —| 2 | % =x 3a a |_| a cart % a en 3 _[ eee | os | ess | or a Ey fi as | ea | ane nnes | —ear (Gos carious Rana] 07] 4100 ea [ae fama ‘ena #0} 0 ws |e sauce PT. Pang ava sa) ‘Biomass contain lower emission (Co2, Sox and Nox)thancoal IL Market Analysis 21Global Wood Pellet Demand uK mito ye) Jopan (mito year ro Tao Framewor yeement - 196 countries - enforcement Industri = Heatin ee 9 in020 i + Aatbiere GHGbainbriniNtheséodhs Hetrertiedentury fom] ‘Wood pellet as substitution to fossil fuels to lower GHG 22Indonesia Potential Export Market ‘A South Korea. Sh works biggestimporter Koyo: @ ga Renewabie Portfolio Standard ard Renewable Energy Oo ee ee ee $F fe andbiomass powerplant) ne Production Import 470 Kien = 3.V ben ost 1g “South Korea targeting to import 5 million tons of wood pellet in2020” ~ Tibetan ester Group, 2019 ‘Top Exporter 5% Wl 6 10 % 1 % Sees ae B.Japan - 6* world's biggestimporter Koyetwvers: Feed in Tait! FIT for biomass power generation (coal coring ‘nd biomass powerpian!) Production Import 12 Keen 1.08 Vien wrostarang “Japan wood pellet demand projectedto reach 15 million tons in 2030” ~Tiisnd estent Gop 2018 0,4 % 75 % Viana — Mysin carats == Chine rene Overview + 90 %andanesia wood pellet exported overseas, mainly SouthKorea + Nota product goos fo power pent, x agtcuiture mada and enimalbedding + Most of wood pelt plants iocaladin Java Island + Most of wood pellet producer donothave FSC) PEFC certfcate + Most of wood pelt plants are smal scaled (<2000ton ’ month) oH os % # sea E un gc YAP Gace Poseee ten Corea 25Local Demand (Existing and Potent) _Cofting scheme for PLN coal fred power plans (tpl: 54M) Cofiring rates 1%- 5 9sawidust, wood chip, palm kemel shell, RDF) + Smillion tons of biomass needed annually lean cooking stove project by Minésty of Energy and MineraRResource + Reducing cost of LPG subsidy by converting o biomass stove Targeting sector household and small - medium enterprise ‘Smal, Medium, and Largelndsry Geramio, exile, cement, livestock, Feed Hotel, restaurant laundry FMCG eto, “Renewable energy demand expected to increase as an implication of RE00 companies commiment and \Nll Exenomi Karbon / carbon pricing presidental reguaton that wil affect loca high carbon emiting Indust in nearfure™ ‘31Project Location 2872 ‘Savers aharanPeom ara Tc) IL Project Data East Java Potential, East Java contibuis to S87% (highest share) to Icdonesia wood industry and have 986 wood based ‘companies (ISWA, 2019) ‘Wood logs productivity: + Procttion Forest 225m Community Foneet <4360555e? + Total 2S20657t0n! year Donte are “Wood waste maretestimion | + Six Talal production 2m020n + Sawdust, wood shavings, chipset ‘Wood pellet feedstock avaiiabity: + Annual peed 110000ion/ year + KEBI project only need BSanood waste available n themarket Lumajang Largest wood waste source Probofinggo Factory location and Port for bulk shipment [established SPY No Need partner forinvestment [Feesioity Study Earlerprojects Yes [Bone manyinearterprojects Existing projet No [Couldbe done in two or three months ees You Male seet nocd wen companies andwood waste lachinery selection Yes [Europe mixwith China orLooal PProductbuyer Yes Lol fombashimoto lPtantlocation ‘Yes [Explored one potential lation nProbalinggo (2.8 ha) Product Buyer ‘We have secured one Lol from PT Hashimoto Indonesia (Hashimoto Technical Service Co. Lid 192%/ Tokyo Eneray and ‘System inc S2B% Individuals 2%) In our business, It's not possible to get offake contract before the ‘wood pellet can beproduced, ‘At the moment, global wood pellet demand is increasing_ while the ‘supply remain ‘stable. Therefore, we beleve we can get cftake| ‘contact once our producten sup, ‘We also maintaining good relaonstip wih global wood pelt ‘radorsto got fut oak contrect such as sumtomo isu So Sopa 11s Engie Hanwa @ @) 3 @ & & ® 8) Many more 5 ey gop Pana a a AP 8 enter 5 ‘Ua Fem) [tun (OR) 3 patel Wisden So 3ao_[ rs | tm | —somneen 1 ftag Ei ove ss |e | sepa 00 | eon 5 ic cate ety, re te [sa shawn |" sazoo 1 gets Oe af 3 pages foi Tat ats Powe 2s 1 str rom or re aang a Pee a roa ae Land, Building, &Utities i i | nom Pres 08] | Amount UDR) 1 | Wickamenan Tew a7) 2355200700 [Row ceri wd VE

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