1. European Biomass Power Plant Markets Increased Growth Across Europe Interactive Analyst Briefing Ian French - 21st August 2002

2. Report Rationale What is driving this report? Big push towards renewable energy in Europe Will alter the direction of existing DG market trends EU Renewables Directive became law in September 2001 Many big players will be affected by biomass sector: including OEMs, Utilities and Power developers

3. The Focus Europe Energy plants combusting biomass fuels Producing heat and/or power in the ranges above 5MWe or its equivalent (approximately 15MWth) Report focuses on boiler OEMs - these can supply boilers to projects or act as EPC contractors Market revenues taken as total monies generated for complete installations but only boiler company input is accounted for Boiler OEMs’ market input can vary from the supply of a boiler to EPC contractor. Thus, boiler value (0.3-0.4 of budget) or total value is apportioned towards market shares

4. Selected Challenges Exclusion of Externalities Creates Pricing Bias Lack of Integrated Policy Focus to Result in Uncoordinated Piecemeal Approach Undeveloped Feedstock Resource Will Cause Long Term Sectoral Damage Alternative New DG Technologies Threaten Biomass Market Unattractive Capital Costs Deter Investors

5. Key Content: Market Forecasts

6. Selected Drivers Government Incentive Increased Energy Security EU White Paper Target Favours Biomass Energy Free Fuel Resources Sustainable Agricultural Policy Increased EU Funding for RES Proposed

7. Selected Restraints High Initial Investment Cost Low Electricity Prices Threat from Wind Generation Policy Integration Issues Developments in Conventional Energy Technologies

8. Companies and Competitive Issues Provides Company Info –Who is involved? Where? Which players are interested in entering new markets? Key Insights Into New Strategy Direction –Who is developing strategies in which markets? Strategic analysis - which markets show most promise? New approaches - modular systems? Which companies intend to expand their biomass market to exploit increasing demand? Company Share Information –Who has the largest share of the market at country or total level?

9. Question and Answer Session For further information please contact: enquiries@frost.com +44 20 7343 8343 www.power.frost.com