BIOMASS ENERGY U T I L I Z A T I O N I N F I J I

Table of Contents

I. Company Brief

II. 12MW Nabou Biomass Power Plant

III. Wood Pellet Projects

IV. Conclusion

2

I. Company Brief

1. Company Profile

2. Major Project

3

1. Company Profile

•GIMCO CO., LTD.

- Headquarter: Seoul, Korea

- Founded : in 2001

- Business Area : Biomass Power Plant, EPC,

Community Energy System (CES), Industrial

Plant EPC, Renewable Energy

•ELTECH LIMITED (GIMCO in Fiji)

- Headquarter: Nadi, Fiji

- Founded : in 2015

- Business Area : Biomass Power Plant, EPC, Energy

Wood Plantation, Logging, Wood Pellet Production

& ExportELTECH

NABOU GREEN ENERGY

SEODAEGU ENERGY•NABOU GREEN ENERGY LIMITED

- Headquarter: Nadi, Fiji

- Founded : in 2015

- Business Area : Biomass Power Plant O&M

•SEODAEGU ENERGY CO., LTD.

- Headquarter: Daegu, Korea

- Founded : in 2006

- Business Area : 10 MW Biomass Power Plant O&M,

Woodchip Production

4

< Korea Projects>

- Cambodia -

Period :

Note :

2013. 11 –2014. 10

Successfully completed;

currently in operation

Project : Kampong 3 MW Power Plant (EPC)

Note :

Project : NorskeSkog CHP (EPC)

• Steam turbine capacity 15 MW

• Boiler capacity 120 ton/h

Project : KDHC CHP (EPC)

Note : • Steam turbine capacity 3 MW

• Boiler 27 ton/h

2. Major Project

5

Project : 12 MW Biomass Power Plant (O&M)

Period : - Completion 2017. 4

-O operating : 25 years ( 2017. 4~)

Note : - Fuel: Short Rotation Tree (Gliricidia)

- Fiji-

Project : 12.3 MW Biomass Power Plant (O&M)

Period : 2013. 8 –2014. 3

Note : Successfully re-commissioned the

power plant for the gov’t (Tropik Wood)

Period :

Note :

June 2006 – current

First biomass power plant in Korea

Capacity (1.5 MW, 48 Gcal/h)

Project : Daegu Biomass CHP (EPC & O&M)

< Korea Projects> < Korea Projects>

- Fiji-

II. 12MW NABOU BIOMASS POWER PLANT

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Project Summary

Project :

Fuel :

12 MW Biomass Power Plant

Sector :

Site Location :

Project

Size :

Key Developers :

Timeline :

Key Project Structure

(1) PPA :

(2) FSA :

(3) EPC / O&M :

Short Rotation Tree (Grilicidia)

Forest & Factory Residues,

Renewable Energy / Power Plant

Nabou (Viti Levu), Fiji

USD 45 mn

GIMCO with Korean Consortium,

Tropik Wood

Commercial Operation in April 2017

25 years operation w/PPA

Fiji Electricity Authority (FEA)

Tropik GIMCO Bioenergy

GIMCO with Korean consortium3)

1) Fiji Electricity Authority (FEA) is Fiji’s national power company, and the sole operator of the national grid

2) Tropik Wood is government owned, and Fiji’s largest and leading wood processing company

3) GIMCO along with Korean consortium will jointly and severally be liable for EPC and O&M

1. Project Summary (Biomass Power Plant)

PROJECT SUMMARY

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STRICTLY PRIVATE & CONFIDENTIAL

Equity

Shareholders

Dividend

Interest Debt

Fuel Supplier

Plant EPC

FSA

EPC

Off-takerPPA2)

Finance

Consulting Group

Finance : Daewoo Securities

Fuel : Indufor

Tech : Jacobs (SKM)

F/S : Korea Rating

Plant Operation

O&M

8

2. Project Summary (Biomass Power Plant)

9

Construction Progress Status

2 JANUARY 2015Start LNTP

On SiteTBN & GEN

SEPTEMBER 2016

PowerReceivi

ng

NOVEMBER 2016

ErectionCompletion

DECEMBER 2016

COD

June 2017

PilingCompletion

APRIL 201512 DECEMBER 2014

Date ofEPC Contract

AS-IS(Progress: 95.78%)

17 JANUARY 20178 JANUARY 2016

Start NTP

Start to InstallSteel Structure of Boiler

8 APRIL 2016

Completion ofBoiler Hydro Test

Commissioning

May 2017

27 June 2017(Progress: 99.7%)

3. Progress

4. Raw Material – Energy Wood Plantation

• Species- Gliricidia sepium

• Rotation- 2~3 years (SRC, Short Rotation Coppice)• Plantation Area- About 5,000 ha (100,000 ton/yr)• Business Period- About 30 years

Overview Short Rotation Forest

• Short Rotation Forest- Short Rotation Forest plantation is getting an

attention due to its positive impact such as absorbing and reducing carbon emission.

- Compared to general plantation which takes about 30 years or more, it takes only 2~15 years depends on species for harvesting with high dense plantation.

- These harvested wood can be used as source for pellet, woodchip, and other wood-based

biomass fuel .- After harvesting, with replantation or coppice,

wood biomass can be continuously obtained.

• Pros- Large amount biomass can be obtained from

small area.- Climate Change mitigation as it reduces

carbon emission- 0.75 kg carbon absorbing and 0.6 kg

oxygen releasing per 0.5 kg tree growth- Water resource protection (Green Dam)

- Flood protection, Drought mitigation, water purifying

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•Basic Info- Name: Gliricidia sepium- Origin: Central America- Use: Fuel, Fence, Shading, Animal

Food- Diameter: max 50 cm- Density: 47~75 g/cm3- Cal: 2,800~3,200 kcal/kg

•Ecological Characteristics- Annual Rainfall: 600~1,500 mm- Temp: 20.7~29.2 Celsius- pH: 4.5~6.2- etc.: Fire resistance, coppice- 2~3 year rotational coppice for

biomass fuel

Overview조 사 단임황

After 1month After 2month

After 3month After 5month After 15month

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4. Raw Material – Energy Wood Plantation

Plantation Status

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4. Raw Material – Energy Wood Plantation

5,000ha Plantation Area 300ha Planted Area

•Basic Info- Species: African Tulip,Highly Invasive- Hurting agricultural land and

ecosystem- Volume: More than 10 million ton (Rapid Increase expected without control)

Overview조 사 단임황

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5. Raw Material – Invasive Species Eradication

Test Item Test Result Test Method

Gross Calorific

Value

(kcal/kg)

4,630 Notification No. 2013-5

the Korea

Forest Research Institute

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6. Nabou Biomass Power Plant Benefits to Fiji

•Fiji GDP Increase

- 45 million USD

•Quality Job Creation (More than 250 jobs)

- Construction: min 100 jobs

- Operation: min 50 jobs

- Forestry(Planting, Harvesting, etc): min 100

jobs

•Fossil Fuel Import Reduction

- Diesel import reduce by 5.5 million gallon/yr

(15 million USD/yr)

Economic Benefits Environmental Benefits

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•Climate Change Mitigation & Adoptation

- 35,676 tCO2eq reduction

- Reforestation & Income generation

• Invasive Forest Species Eradication

- African tulip, etc.

•Reforest Fiji

- Energy wood plantation on abandoned

forest land or ex-sugar cane land

- Reforestation

- Income generation for landowner

III. Wood Pellet Project

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Project Summary

Fiji

Korea

Power Plant

Wood Pellet Product

South Pacific

Countries

1. Pellet Project Summary

Project Summary

•Project: - 500,000 ton/yr Wood Pellet Production and Export

•Project Size- USD 200 million (est.)

•Construction Period- 2018~2021, 500,000 ton/yr

•Raw Material- Short Rotation Tree (Gliricidia sepium)- Invasive Species (African Tulip)- Forest/Sawmill Residues

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2. What is Wood Pellet?

•Wood Pellet is small cylindrical shape high-density biomass fuel

•Shape of Wood Pellet-Shape : Cylindrical-Length : 20~44 mm-Diameter : 6~8 mm-Moisture Contents : 12% or below

•Characteristics-High Energy Density (well above 4,000 kcal/kg or above)

-Easy handling & Transportation-Carbon Neutral Fuel

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3. Wood Pellet Market

Top Global Importer South Korea Import Sources

•Remarks- 2.6 million ton demand in 2016 in

Korea

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4. Process

GOV’T

PLANTATION

ERADICATION

ELTECH

PLANTATION

ERADICATION

COMMUNITY

WOOD PELLET

PRODUCTION

& STORING

LOADING AT

JETTY

SEA

TRANSPOR-

TATION

BUYER

KOREA, SOUTH

PACIFIC

BIOMASS

POWER PLANTFEA GRID

Raw Material Procurement

Plantation

Establishment

nearby to the

pellet facility

(Reducing Tran-

sportation Cost)

Pellet Facility - Annual Production: 500,000 ton- Establishment nearby to the Jetty

Power Plant

12MW X 2Unit

for Wood

Pellet

Production

Jetty

PPP between

FIJI Gov’t &

ELTECH

Selling

Leftover

Power from

the Power

Plant to FEA

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Process Flow

5. Wood Pellet Sample

Wood Pellet Sample Wood Pellet Test Result

Gliricidia African Tulip

Lamtoro Pine

Species

Calorific

Value*

(Kcal/kg)

Ash Fusion Temp (℃)

Gliricidia 4,810 1,360

African Tulip 4,880 1,250

Lamtoro 4,660 1,550

* As dried basis

Ex) Calorific Value of Coal(anthracite) :

4,400~5,700kcal/kg

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6. Project Benefits to Fiji

•Fiji GDP Increase

- Min of 80 million USD Fiji Annual Export

- Foreign investment 200 million USD

•Quality Job Creation (Total 1,000 jobs)

- Construction: min 400 jobs

- Operation: min 100 jobs

- Forestry(Planting, Harvesting, etc): min 500

jobs

•Fossil Fuel Import Reduction

- 24 MW biomass power plant

- Diesel import will be reduced by 11 million

gallon/yr (30 million USD/yr)

Economic Benefits Environmental Benefits

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•Climate Change Mitigation & Adoptation

- 71,352 tCO2eq in Fiji

- Reforestration

• Invasive Forest Species Eradication

- African tulip, etc.

•Reforest Fiji

- Energy wood plantation on abandoned

forest land or ex-sugar cane land

- Reforestation

- Income generation for landowner

Social Benefits

•Energy Security

• Increasing national employment rate

• Income generation

•Fiji Industry Boost

IV. Conclusion

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Currently, Fiji’s power market is heavily leveraged on hydro and oil / diesel-based power

Fiji Power Grid Generation Mix (2013)

Hydro

(60%)

Oil (

21%)

Diesel (16%)

IPP (2%)

Wind (1%)

Total 872,219 MWh

Capacity Mix (2013)2)

Hydro

(43%)

Oil

(22%)

Diesel

(22%)

Bagasse (6%)

Biomass (4%)

Wind (4%)

Total 278.3 MW

Wind Farm (10 MW)

Biomass (12.3 MW)

Hydro (80 MW)

Hydro

(40 MW)

Bagasse (4 MW)

Bagasse

(5 MW)

Bagasse (3 MW)Bagasse (4 MW)

Power Plant DistributionCapacity Breakdown1) (2013)

Fiji Electricity Authority

• Hydro

• Oil

• Diesel

• Wind

Total 250 MW

120 MW

60 MW

60 MW

10 MW

IPP Total 28.3 MW

• Tropik Wood (Biomass)

• FSC2) (Bagasse)

12.3 MW

16.0 MW

1) Based on estimates

2) FSC (Fiji Sugar Corporation, government owned)

1) Fiji Commerce Commission

2) Based on estimates

Fiji Power Market Overview

Renewables

Oil / Diesel

25

Develop the rural area with upgraded marketing and

packaging System brought by Small power packages.

Produce the biomass fuel, Pellet, for domestic demand and

exporting to other countries.

Replacing the Fossil Fuel to Renewable Energy Resources to

achieve the national energy policy

Sustainable Growth of Fiji with Biomass- 5 x Biomass power plants projects (12MW x 5 = 60 MW)- 1 x Wood pellet projects

- 100kW Mini Biomass Power Package (for rural area)

Biomass

IPP

Pellet

Project

Biomass IPP

Pellet Project

Mini Biomass

Power Package

Mini

Biomass

Power

Package

Vision

Achieving Fiji’s 100% Renewable Energy Goal by 2030