1. Wood Pellet 2013. 9. 5 Jung, Se Yong

2. Contents Ⅰ. COMPANY PROFILE Ⅱ. WHAT IS WOOD PELLET ? Ⅲ. KORINDO WOOD PELLET MILL

3. Ⅰ. COMPANY PROFILE

4. 1. LOCATION

5. 2. GENERAL INFORMATION PT. KORINTIGA HUTANI INDUSTRIAL TIMBER PLANTATION COMPANY & WOOD PROCESSING COMPLEX ■ PLANTATION. Area : 94,384 ha. Harvest : 2.3 mill m3 / year. Species : Acacia mangium, 30,000 ha Eucalyptus Pellita 30,000 ha others, 200 ha. Plan : Trial new species for Timber and Plywood ■ MILL CAPACITY. Wood Chip : 530,000 BDT / year. Veneer : 50,000 m3 / year. Sawn timber : 35,000 m3 / year. Wood pellet : 100,000 Ton / year

6. Ⅱ. WHAT IS WOOD PELLET ?

7. 1. Wood pellet Size Diameter : 6 ~ 8 mm, Length : ~ 40 mm Bulk DensityMin. 600 kg/m3 CaloriesMin. 4,040 kcal/kg Ash ContentMax. 3.0% Moisture ContentsMax. 10% * Korea wood pellet standard.( #2, 3 grade). Newly discovered renewable upgraded biofuel Renewable, Green, Clean, Convenient, Carbon-Neutral Biomass Fuel

8. 2. Process Raw material

11. Pelletizing 2. Process

12. Cooling 2. Process

13. Packing 2. Process

14. RenewableEfficientCleanEconomicalFriendlyResponsible.Sustainable biomass harvested throughout the year.Consistent in quality and moisture content. Free of contaminants. Burns cleanly with low ash. Attractive calonrific value. Significantly lower energy costs. Can be used in different types of furnaces. Multiple applications power generation, heating. Carbon neutral. Promote and enhance green culture, future 3. Advantage

15. Ⅲ. KORINDO WOOD PELLET MILL

16. 1. Location Product Capacity.100,000 T/Y.Start Up : Middle of 2014 ■ Central Kalimantan, Natai Peramuan

17. 2. Raw material Fine chips reject Shredded veneer reject Saw dust from sawmill Harvest waste

18. 3. Strong Point (Harvest Waste) 12 (By - Products) (Electricty, Dryer) 34 (Infra : Road, shipping)

19. 3. Strong Point (Harvest Waste) 12 (By - Products) (Electricty, Dryer) 34 (Infra : Road, shipping) ■ Raw material Sustainable -> Harvest waste & Mill waste(by-products)

20. 3. Strong Point (Harvest Waste) 12 (By - Products) (Electricty, Dryer) 34 (Infra : Road, shipping) ■ Electricity and Dryer Using biomass power plant -> Fuel, bark Using Drum dryer -> Fuel, bark

21. 3. Strong Point (Harvest Waste) 12 (By - Products) (Electricty, Dryer) 34 (Infra : Road, shipping) ■ Infra Structure(Own) Road -> Log & chip transportation Port -> Upto 10,000 ton barge (average 6,000 ton)

22. 4. Utility Cost. +/- 200 kW / pellet ton, USD 0.02 ~0.03 / kW => (USD 4.0~6.0 / ton) -> Korea, Indonesia USD 0.07 ~0.08 / kW => (USD 14 ~ 16/ton) cf.) If use Engine-generator : USD 0.3 / kW x 200 kW / ton = USD 66 / ton Electricity. Fuel(bark) consumption : ± 50,000 ton / year(bark : 2,150 kcal/kg) -> Using the chip mill waste(bark), [fuel cost 0 ] -> If buying the same amount of wood fuel(logs, debris...etc) : 50,000 ton / year X USD 30~40 / ton ÷ 100,000 ton / year (fuel amount) (fuel price) (pellet ton) Cost of drying : USD 15~20 / ton, [fuel only] Drying Difference “Over USD 10” Difference “Over USD 10” Difference “Over USD 15~20” Difference “Over USD 15~20” UPUPUPUP

23. 5. Market. #2 ~ 3 grade wood pellet supply for power plant use (mostly) -> Ash under 3.0 % Target : Korea, Japan Power Plant. #1 grade wood pellet supply for family use -> Ash under 0.7 % / without bark -> Potential & future market Target : Korea, Japan Home stove & Boiler

24. THANK YOU