For Sale - Refinery Sugar and Ethanol + Electricity Co-Generation and complex (including land) – Sao Paulo – Brazil

Refinery Alcohol and Sugar - Brazil

The agri-industry complex that today includes the group of the sugar and ethanol in the west of Sao Paulo.

This is the initial sign of an economic project that has not stopped growing. In 1990 begins in a promising

market for ethanol and the production of ethanol and hydrated to supply the national fleet of vehicles and industries.

The plant has always followed the developments and trends in the industry, with modern equipment, always scaled

to increase production.

• Strategy and future plans (new projects)

The approved plan for the unit four years ago by the Director of the company, was to achieve a level of 2.5 million tonne,

which could be consolidated by the end of 2010, but there is a possibility of expansion, with sufficient areas to rise

to 4.0 and to 5.0 million tonne.

There is a Greenfield plant, which has the best location of the state, being near the capital and also the interconnection

of cogeneration. In Terminal Railroad, and land completely flat, predominantly pasture.

There area of 80 hectares acquired for deployment of the industry were planted 1099 hectares of cane for use as seedlings.

Agricultural:

In a privileged area of mixed land plans, excellent rain and warm climate, ideal for sugar cane growing is devoted primarily to production of this raw material, manufacturing sugar VHP (Very High Polarizated - Crystal sugar) and refined grain (high purity), Anhydrous Ethanol Fuel, Hydrated, Neutral, Bagasse, Syrups, Filter Cake, Dry Yeast, Concentrated Vinasse and Molasses. The refinery aims to continuously improve its production processes and products through the aggregation of social and environmental values, using the most modern practices of soil conservation and modern equipment in all operations, both in safe and how much others, respecting the regais reserves and permanent preservation areas, making their production processes economically efficient, environmentally sound and socially just..

• Own land / holdings / land suppliers

Own = 1.750 hectares

Leased = 18.000 hectares

Supplier = 14,000 hectares (all supplies contract)

• Availability of land for expansion in the region

Greater availability may reach 4,000,000 tons with average radius of 30 km

• Leasing

Layout and term leases amount of leased land with maturity of contracts and growth potential.

Average cost of 33 tons / acre / year maturity of six crops

Renewals of contracts in excess of 90%.

Excellent availability of new areas due to lack of competition with agriculture.

• Climate

Subtropical humid most of the year, with intense light, and winter with low severity, characterized by frost downloadable low frequency.

• Relief

Semi-flat to gently rolling hills that allow full mechanization of harvesting and that less than 15% of the areas are composed of a gently rolling topography that may restrict the mechanization of the harvest.

• Solo

70% red-yellow podzolic (argisols) and 26% of Oxisol, medium fertility, and in areas with slopes greater prevalence of Nitro-ferric red soil of sandy-clay texture and high fertility.

• Altitude - 400 meters on average.
 

• Average temperature -  26 degrees Celsius

• Annual rainfall - Average of 1,800 mm per year.

• ART (Total Recoverable Sugar):
Average of 147 kg of ATR per tonne cane ART% 16.20%

• Mechanization:
Current and potential current 10% - 80% potential ((in 2009 this is fitting in 30% of mechanical harvesting )

• Agricultural productivity and number of cuts
Current average of 84 tons / hectare with an average of 6 cuts

• Average age of plantation and distance from the plantation
Age 13 to 18 years and average radius of 26 km

• Use of vinasse:
Volume of distribution of 8,000 hectares and is easily expandable to 12,000 hectares.

New appliances in good condition, adequate capacity, with a displacement of pipe and electric pump PRVC => 15 km of pipe laying, divided into two macro-regions + trucking in areas staple + 10 km pipeline of 10 new mobile "and 8"

• Own farm equipment:

• Costs:

1. CCT (U.S.D. $ / tonne) -. Average cost of the CTC from U.S.D.$ 11.49 per tonne in 2008

2. Cultural practices (U.S.D. $ / ha) - U.S.D.$ 488.50 / hectare of crop treatment

3. Rentals (tonne / ha) - Cost of rental of 7.83 tonne / ha

4. Industry (U.S.D. $ / ton) - Industrial Cost from U.S.D.$ 4.54 per tonne

• Farm Investment:

1. Planting Foundation in area expansion

2. Planting replacement in area renewal

Description Industrial - General

• Grinding:

a) Year 2005 => 1,134,000 tonne

b) Year 2006 => 1,610,000 tonne

c) Year 2007 => 1,758,000 tonne

d) Year 2008 => 1,859,000 tons (obs. delay of 50 days to the beginning of harvest due to late delivery of equipment = 400,000 tonne)

e) In 2009 => 2,200,000 tons - forecast grinding minimum due to early harvest for the day 02/03/2009 starting with 400,000 tons of cane bisada.

Industry:
• Current setting for the process industry
(extraction, broth, boiler, steam generation, power generation, water treatment and industrial wastewater, fermentation, distillation, sugar factory, etc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

Six Suits Grinding 37 "x 54" with average extraction of 96%
Two Decanters for alcohol and sugar

Production of 220 tonne of steam per hour, which:

• 130 tonne at 42 bar
•   90 tonne at 21 bar

Co-generation of 12 MWh which:
• Exported   6 MWh - Electricity
• Consumed 6 MWh - Electricity

The Flegmassa is used for cleaning of heat exchangers must and heat exchanger vinasse / broth

Fermentation - continuous Dry CO2

Dry yeast - via spray dryer

Production of anhydrous alcohol standard EU

Production of hydrated alcohol standard Japan

Sugar VHP bulk

System is used to mix ash and pie and composting of organic waste.

• Daily production industry:
1. Relaxation of generation mix
2. Max% of current daily use of long days of grinding.

• => Capacity:
Grinding = 450 ton / hour
Steam production = 220 tonne / hour
Production of Hydrated ANP = 900 thousand liters / day
Production of Anhydrous ANP 200 thousand liters days
Sugar production of 800 tonne / day.

Mix of production:
Sugar to 60%
Alcohol up to 100%
Average recovery time of harvest of 85%
Average time of harvest of 250 days (in 2009 should reach 274 days) 
 

• Expansion in progress / planned
It is planned to install more than one pre-evaporator to expand the capacity of sugar production, and increase the alcohol content of wine, as well as improve the thermal balance of the plant. Several improvements in the environmental and safety sheet in full swing

Strategic Plan in the implementation phase and selection of partners for investment in new co-generation, within a setting that does not require its own funding to optimize the full capacity of electricity generation.

• Area used by industry capacity expansão30 hectares, but can be greatly expanded in the north and east, as it is located within a rural area of 100 acres owned by the company

•Production (MIX): Sugar, alcohol, energy and other products.

Current Mix:
60% alcohol
40% sugar
Export of 6 MWh of energy
Drying of 12 ton / day of yeast
Sale of vinasse to cane suppliers and sale of Cotesia

• Storage capacity by product
1. Alcohol = 46,000 m3
2. Sugar = 200 tons (Silo Bulk)
3. Yeast = 500 tons

• Income industrial Sugar and Alcohol
Hydrated ethanol = 86 liters / tonne
VHP Sugar = 121 kg / tonne

• Use / surplus bagasse which is done with the leftover pulp.
  Production co-generation off-season for sale of energy.

• Co-generation:
Plan for investment in the expansion of co-generation of $ 40 million, and the consequent expansion of annual revenue from $ 6 million to existing transmission line is owned by the company and includes the increase of power

• Costs: industry (USD / tonne) $ 4.54 USD / ton. With one of the lowest manufacturing costs between the plants in the region according to the focus on commodity production, handling and avoiding rework (eg production of VHP without warehouse / storage) Logistics

• Logistics currently used
1. Rail Road Port of Paranaguá by> Terninal Rail Rolândia
2. Port of Paranagua by Road
3. Port of Santos by Road and Rail (City Tupa)

• Commercial
Destination of sales:
Internal Market & Exports
Sugar => World Market
Alcohol => IM and ME

• Audit - Financial:
This was indicated to the practice of reviewed the accounting procedures since 2005.
2005 - Performed by PriceWaterhouse
2006 - Performed by Deloitte
2007 - Performed by Deloitte
2008 - Performed by Deloitte

Administration

In the administrative area uses modern computerized management systems that allow complete control of all stages of the production process, from the agricultural area through the industrial area and logistics, ensuring the minimization of costs, maximizing production which provides great opportunities expansion.

These concepts are part of everyday life of the refinery, and places the company as one of the main current responsible for regional development and enrichment. Employees receive continuous training ensures the development of professional training and ensuring the implementation of its activities with the maximum possible security. To do so is provided, training and required the use of all protective equipment required at different stages of production, whether in agriculture, maintenance or in the industry.

Social Responsibility

The refinery has a great awareness of the social, and economic growth plan, focuses on providing improved quality of life for employees and their dependents, increasingly closer relationship with the community, enhancing the lives of everyone. Get the daily increase the actions and improve existing ones, and according to the needs, embracing new projects .

Respect for the environment is the cornerstone of environmental policy refinary. Environmental preservation with economic efficiency results in the development and sustainability of the community in which it operates. A company that uses natural resources in the viability of their production means that this natural heritage must be protected and preserved.

Sustainable development implies the constant observation of these precepts and strict control. The environmental monitoring program provides inter alia: periodic reviews of the quality of soil, groundwater, surface water, effluents, air emissions, proper disposal of waste after consumption. The company demonstrates that it is possible to grow and protect the environment, with creativity and designs that turn environmental threats into business opportunities.

The refinary always ahead of projects aimed at improving the quality of life.