Energostatik – 5 MWe Biomass Power Plant 8.11.2016.

1. CROATIAN ELCTRICAL GRID 4.528 MW of generating capacity 16,9 TW/h consumption 80% of electrical production own by HEP 15.000 MVA gross installed interconnection capacity : very secure country 65% of electricity from hydropower 15% from nuclear plant Krško in Slovenija own 50% by HEP The rest come from oil/natural gas/coal power plant 13% imported 85MW of biomass power plant expected to be built till 2020

2. Project Content - Location City of Grubisno Polje 130 km East of Zagreb 50 km of Hungary 8000 inhabitants County of Bjelovar Croatian Forest Agency of Bjelovar Huge quantity of oak and beech Acid agriculture land (fly ash less C02 then lime) Zagreb Grubišno Polje

3. Real Estate Full ownership of the plots for the main project

4. Summary of the project Project Energostatik Project Location Grubišno Polje, Slavonia region, Croatia Sponsor Akuo Energy Biomasse, Bio Elektro Project d.o.o Planned Capacity 5 MWe and 6,5MWth Network Management HROTE Guaranteed Availability 8150 hours per year Equipment Contractor Still under selection (short list :KPA Unicon/Đuro Đaković) O&M Contractor Same as EPC contractor Construction Period 18 months (scheduled between Jan 2017 and June 2018) Overall construction cost 22 mil € Total investment 25 mil € Sale of electricity Purchase Price 160 euros / MWh (+ 30 euros / MWh bonus if 50% of efficiency reached) Off-taker HEP Maturity 14 years Sale of steam Under negotiation Wood drying facility Maturity Date

Heat off taker: 6 MW wood drying facility Over 50% efficiency. 5. Feed – in tariff Conditioned by the efficiency of the plant. <45% = 0,9 k 45%<k<50% = 1 K>=50%= 1,2 Heat off taker: 6 MW wood drying facility Over 50% efficiency.

6. Heat off taker 20 wood drying kilns of 130 m3 usable capacity Total capacity 2.600 m3 1500 m2 covered loading and unloading platform and storage area. New drying technology 15% fastest drying 35% less mistakes and deformations during drying. More drying cyclus then in regular kilns

7. Wood drying facility advantage Inovative service in Croatia First facility providing wood drying service openly on the market. Valorisation of the sold product and lower log price for the customer. No investment needed in saw mills. Risk covered by the service provider.

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