1. ATTRACTIVE INVESTMENT OPPORTUNITY
BIOMASS PELLET PRODUCTION FACILITY IN SERBIA
BRIDGE POWER INVESTMENTS, April 2018

2. BASIC INFORMATION PACKAGE CONTENT
Key Facts
II.
Geographic Position
III.
Production Facility
IV.
Production Line – Parameters V.
Resource of Biomass
VI.
Serbian Pellet Market
VII.
Sale Process Overview
VIII.
Contact Information
Appendix

3. KEY FACTS
Production facility independently valued at EUR as a legal entity
Auction-sale starting price: RSD (approx EUR)
The production facility is being sold within the bankruptcy proceedings
Occupancy permit for the production facility in place
Availability of biomass supply in the given location
Convenient transport connection
Current production capacity: 5T/H
Projected production capacity: 11T/H
BRIDGE POWER INVESTMENTS, SEPTEMBER 2017

4. GEOGRAPHIC POSITION
BPI’s production facility is located in Doroslovo, Sombor municipality, in the Serbian northern province of Vojvodina. The production site is a 3-hour drive (180km) from Belgrade and 2-hour drive (100km) from Novi Sad, the capital of Vojvodina.
Facility is conveniently positioned in the vicinity of the EU borders with Croatia (25km) and Hungary (28km). The Pan-European transport Corridor X is a 1-hour drive from the production facility.
DOROSLOVO
SERBIA
BRIDGE POWER INVESTMENTS, SEPTEMBER 2017

5. PRODUCTION FACILITY
BUILDING
USABLE AREA,
IN SQ.M.
CONSTRUCTION YEAR
Production hall
1,784.0
Silo No. 1
122.0
Silo No. 2
119.0
Scale
107.0
Shed
87.6
Substation
55.0
Reception
43.0
Water reservoir
9.0
TOTAL
2,326.6
LAND
AREA, IN SQ.M.
Agricultural land
108,789.0
Occupancy permit for the production facility in place
The production facility — built in 2011/2012 with a total area of production and other space of 2,326.6sq.m
Complete utility infrastructure including internal asphalt roads, substation with electricity installations, water and sewerage network
BRIDGE POWER INVESTMENTS, SEPTEMBER 2017

6. PRODUCTION FACILITY PHOTOS
BRIDGE POWER INVESTMENTS, SEPTEMBER 2017

7. PRODUCTION LINE - PARAMETERS
25,000
5T/H
11T/H
500,000
TOTAL PELLET PRODUCTION OUTPUT
CURRENT PRODUCTION CAPACITY
PROJECTED PRODUCTION CAPACITY
ESTIMATED CAPEX INVESTMENT TO INCREASE CAPACITY, EUR
In two years of full operations (2013 – 2014), pellet production totaled approx. 25,000 tons.
Production facility output currently stands at 5 tons/hour or 100 tons/day.
The production plant runs on equipment purchased in 2011.
Company’s production facility is projected to operate at the hourly capacity of 11 tons and daily capacity of approx. 260 tons.
Estimations are that with CapEx investment of about EUR 500,000 production technology and equipment could be upgraded to the projected capacity of 11t/h.
BRIDGE POWER INVESTMENTS, SEPTEMBER 2017

8. RESOURCE OF BIOMASS
BIOMASS SUPPLY
Biomass supply from corn, soy, and their crop residues were secured based on the contract signed with Mr. Robert Holo, a local entrepreneur. Key contractual provisions were as follows:
QUANTITY
The contract provided for the annual supply of biomass in the amount of 100,000 tons. The supply was split into equal monthly deliveries of 20,000 tons over the August-December period.
Estimated need of biomass exceeds 100,000 tons, it is to be purchased from third parties in the open market.
PRICE
The purchase price was approx. EUR 22/t + VAT.
BRIDGE POWER INVESTMENTS, SEPTEMBER 2017

9. SERBIAN PELLET MARKET PELLET PRODUCTION
Total pellet production in Serbia went up from ca. 98,000 tons in 2012 to an estimated ca. 515,000 tons in 2015.
PELLET CONSUMPTION
Local pellet consumption in 2015 was forecast to exceed 100,000 tons.
PELLET SALES
In 2015, a major portion of pellets produced in Serbia was exported (approx. 70%), while the remaining ca. 30% was sold in the local market to both households and industrial buyers.
PELLET PRODUCTION CAPACITIES
Out of approx. 50 active pellet producers across Serbia registered in 2015, a mere 10% had the installed capacity of in excess of 4t/h, and 4% operated production facilities with the capacity of over 8t//h. Most pellet producers ran their production at the capacity of less than 1t/h.
PELLET PRICES
By early 2015, the average export pellet price amounted to EUR 160/t, up from EUR 120/t recorded in In the local market, the average pellet prices tend to be 5-15% higher than export prices.
As of January 1, 2017, a lower VAT rate of 10% is applied to the sale of pellets, briquettes, and related biomass products.
PELLET PRODUCTION REGIONS
The regions of Western, Eastern, and Southern Serbia dominate Serbian pellet production hosting nearly 65% of active producers.
In recent years, Vojvodina, with its agricultural biomass resource base, has emerged as a major pellet production region in Serbia.
¹ SOURCE: REPORT ON WOOD PELLET PRODUCTION AND MARKET STRUCTURE IN SERBIA
BRIDGE POWER INVESTMENTS, SEPTEMBER 2017

10. SALE PROCESS OVERVIEW
BRIDGE POWER INVESTMENTS, SEPTEMBER 2017

11. CONTACT INFORMATION
Karanovic & Nikolic o.a.d.
ADDRESS
23, Resavska St., Belgrade, Republic of Serbia
PHONE
+381(0)
CONTACT
Aleksandar Novakovic, Attorney/Senior Associate
Ivan Petrovic, Bankruptcy Administrator
ADDRESS
39, Balzakova St., Novi Sad, Republic of Serbia
PHONE
+381(0)
BRIDGE POWER INVESTMENTS, SEPTEMBER 2017