Why Latvia? Baltic Renewable Energy – Latvia

Latvia is positioned for potential Baltic Renewable Energy – Latvia Population: Total EU Canada/US Population: Russia Ukraine 45.9 Belarus 9.5 Total East 198.3

Latvia is the commercial hub of Northern Europe It is the financial centre of Northern Europe 23 banks the Luxembourg of the north Established traditions in banking, manufacturing, education and development Baltic Renewable Energy – Latvia

Unique geographic location Geographic centre of Northern Europe Bridge between east and west with excellent ties both ways Key point of entry: Canada/US > Russia, Ukraine, Belarus Canada/US > EU Russia, Ukraine, Belarus > EU and Canada/US EU > Russia, Ukraine, Belarus Why ??? – because Latvia has the ONLY ice-free ports in the Baltic Sea Baltic Renewable Energy – Latvia

Stable, predictable financial climate Considered a western state that must abide by EU regulations Joined the EU and NATO in , government of Latvia initiated austerity programs as demanded by the IMF Stabilized economy which resulted in growth in 2011 in December, 2011, Latvia was recognized as a good place to invest by the International Monetary Fund (IMF) Shared values with North America and trust in Canadians The Result – a favourable business climate Baltic Renewable Energy – Latvia

History: Why then, why now? Baltic Renewable Energy – Latvia What was then… A centre of commerce and industrial production for the Russian Empire (before 1917) and the Soviet Union (1940 to 1990) A prosperous economy based on manufacturing (1918 to 1939) Gained independence in 1991 and converted from a planned economy Economic transition saw challenges from banking crises and economic boycotts by Russia Saddled by unfamiliarity with western (particularly European) practices and politically-related development issues

History: Why then, why now? What is now… A financially and politically stable country with a growing economy, an ideal location, shared values with North America and an infrastructure of chemical and pharmaceutical manufacturing, that is driven by various needs and conditions that favour business activity. A market ripe for BRE Latvia, the Baltic region and Europe offer unique business opportunities – TPI’s expertise, unique background and connections are distinct advantages *Effects of the Eurozone debt crisis must be considered. It is realistic to proceed on the basis of a slower and less predictable growth rate than might be seen in other economic circumstance's Baltic Renewable Energy – Latvia

Sustainable Development Cogeneration Energy from waste or biomass From BRE Baltic Renewable Energy – Latvia

The issues Latvia faces fines up to $110,000,000 for exceeding EU directive targets of reducing waste sent to landfill Over-reliance on Russian gas and concerns about energy security and self-sufficiency The opportunity Revenue comes from the sale of heat because of central municipal heating and electricity with a unique electrical surcharge not available in other countries to promote electrical production from renewable energy sources, the processing of municipal solid waste and hazardous waste experiencing increasing gate fees, environmental taxes and green credits Potential EU grants of over $26,000,000 apply to development projects (10 plants, $200 million) Opportunities identified – start-up ready to go (a low-hanging fruit) Lead in to major development projects (the big opportunity) Baltic Renewable Energy – Latvia

A powerful combination of factors that drives the need for technology, expertise, O&M contracts and equipment sales. BRE Advantages Proprietary access to cutting-edge ATT technology Professional, knowledgeable team, experienced with technical and political issues Complete and viable business plan Existing contract for one facility Regional experience in cogeneration since 2007, Current, reliable databases on technology suppliers, prospects and waste suppliers. The entry Latvia has an approvals system that expedites implementation Favourable legislation for renewable energy projects Baltic Renewable Energy – Latvia