ENVALOR LIMITADE

Project:

Ethanol / Electricity Co-generation PlantMozambique, Manica Province

November 5, 2009

Envalor Limitade

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• A Company Formed in Mozambique

• Focus - Infrastructure Development Project:

• Fuel Grade Ethanol plant - 150 Million Litres

• Electricity generation plant - 32 MW/h

• 25000 ha of Cultivated land (Sugar Cane, Dry Beans)

• Estimated Project Cost: US$ 330 Million

Lead Developer - InfraCo

• Focus: Infrastructure Project Development that promotes Sustainable Socio-Economic Growth;

• Region: Sub-Saharan African Region;

• Sectors: Energy, Transportation and Water;

• Infraco has a number of projects underway in Africa:• Uganda - Multi Utility Project (Project Cost: US$ 40 Million);

• Cape Verde - Wind Power (Project Cost|: EUR 55 Million);

• Zambia - Irrigated Farm Development (Project Cost: US$ 25 Million);

• Ghana - Gas Fired Power Plant (Project Cost: US$ 300 Million);• Mozambique - InfraCo is playing a lead role in developing an “investment

blueprint” for the Beira Agricultural Growth Corridor (BAGC);

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Infraco is working with Casachron to carry out this project.

Project Scope

• Produce 150 Million Litres of anhydrous fuel grade Ethanol

• Sugar cane (Primary feedstock);

• Sweet Sorghum (Secondary feedstock);

• Sold to the export market with availability to the domestic market;

• Produce 32 MW/h Electricity (Bagasse)

• An estimated 22MW/h used by the plant and the excess exported to the national grid;

• Food production

• The production of 10 000 tonnes per annum of dry beans is planned;

• Agriculture

• To deliver feedstock to the plant and produce food, approximately 25000 ha of cultivated land will be developed;

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Product

Ethanol Production - 150 Million Liters per annumEthanol Production - 150 Million Liters per annum

• Biochemical process from Sugar cane juice or molasses;

Product Demand

• There is a global annual increasing demand for ethanol as a vehicle fuel, which has been concluded as an excellent energy alternative to oil;

• The EU is anticipated to face an ethanol deficit of up to 7.5 Billion Liters per annum by year 2020;

• It is envisioned that a considerable volume of this Ethanol could come from Africa;

5Ethanol Plants – Colombia, BrazilEthanol Plants – Colombia, Brazil

Product

Electricity Production - Bagasse > Boiler / Steam / Electrical Power - 32MW/hElectricity Production - Bagasse > Boiler / Steam / Electrical Power - 32MW/h

• We plan to use a high pressure bagasse - fired boilers/steam system to generate electricity;

• 22 MW/h is estimated to be used by the plant;22 MW/h is estimated to be used by the plant;

• 10MW/h is estimated to be tapped off to the national grid;

• Bagasse is considered renewable and environmentally neutral;

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Power Lines - Power Lines - fairly close to sitefairly close to site

BagasseBagasse Boiler / TurbineBoiler / Turbine

Product

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Agriculture• Food Production – Soya Beans considered (Protein)

• Based on Mozambique’s food needs

• Sugar cane and Sweet sorghum production

Project Goals• A cost effective commercially viable operation;

• Environmentally - non-invasive;

• A quality product delivered - Fuel Grade Ethanol for the export market with availability to the local market, Electricity, Food;

• Environmentally friendly electricity generation - excess for local market;

• Food production and fuel security for the host country Mozambique;

• Through an estimated 1800 Jobs created, an improved standard of living for the residents in the area and a considerable impact to the economy;

• Transfer of skills to previously disadvantaged communities;

• A new market for farmers, jobs and social and health care services;

• The project is focused on complying with the requirements as set out in the “political and strategic framework for biofuels of Mozambique”;

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Mozambique’s Needs

• This project is intent on complying with all of the requirements as outlined by the Mozambique Government, which are broadly:

• Significant project participation by the local community and Mozambique in general;

• The local community to be respected;

• Food to be produced;

• Mozambique to have first rights to Ethanol at market prices;

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The Mozambique Government has confirmed its commitment to the bio-fuel program

Environment & Social

• Strict Compliance - Through execution there will be strict compliance with World Bank / IFC and Mozambique (MICOA) environmental and social standards;

• Environmentally positive - Ethanol and electricity production using sugar cane and sweet sorghum as the feedstock will be positive on the environment;

• Infrastructure - In a controlled fashion to insure effective execution, the project proposes to allocate funding for housing and relocation for the local community;

• Employment - It is anticipated the operation will employ approximately 1800 People;

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Business Case

• A preliminary financial model, with assumptions, represents the project as financially feasible;

• US$ 330 Million is the estimated turnkey cost of developing:

• 25000 ha Cultivated Land;

• 150 Million Litre Anhydrous Ethanol Plant;

• 32 MW/h Electricity Generation Plant;

• The cost of the project will be confirmed when assumptions and additional cost variables have been qualified.

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Assumptions

• Agricultural Assumptions -

• Water (volumes and cost of sourcing);

• Soil type and quality across site;

• Feedstock yield - general agricultural variables;

• Technical Assumptions - cost and volumes of product produced;

• Environmental and Social Assumptions - useable area ;

• Logistics Assumptions - Haulage and transportation costs;

• Legal and Regulatory Assumptions.

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Site Selection And Location

Why This Site?

A high-level evaluation has been executed on this site which confirms the following:

• Good indicative potential for the required water volumes and costs to source water;

• Good indication of the required soil types and soil quality across the site;

• Indicated to be environmentally and socially manageable;

• Good road infrastructure to Beira for distribution of product;

• Access to electricity transmission lines - fairly close to the site;

• Identified to be available (No concession held on the site).

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Development Process

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Next Steps

Fatal Flaw Analysis

• Provincial Authorities endorsement of the project and the use of the land identified for the project;

• Formal application for the land;

• Environmental and social assessment pre-scoping;

• Detailed assessment of soils, water and irrigation;

Begin Development Phase

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