Company Profile

October, 2014

Introduction

Biofuel output grew slowly from the mid-1980s to 2001 but since 2000, the overall production of biofuel has increased manifold. Several incentives, including environmental regulations, petroleum prices, tax credits, mandates and grants and loans have played a significant role in the expansion of biofuels market. The Value Drivers for the Biofuel Industry are : a.  Economic Drivers

•  Rural Development and Socio-economic Factors •  Political Risk and Petroleum Prices •  Good Fuel Properties

b.  Environmental Drivers c.  Institutional Drivers

•  Energy Security •  Policy and Regulatory Framework •  International Agreements

The importance of different value drivers varies depending on the socio-economic and political conditions of a country. The strengths of an offer in the field of biofuel are: understanding the value chain and the integration of the actors who are part of the chain in order to ensure sustainability, profitability and competitiveness.

A global business case

According to the IEA (International Energy Agency, 2013), global production of biofuels – liquid and gaseous fuels derived from biomass – has been growing rapidly over the last decade from 16 billion liters in 2000 to more than 100 billion liters in 2011. Over this decade production is estimated to accelerate further reaching 300 billion liters in 2020 (CAGR of 10% over 2015 – 2020) According to the Clean Edge (US Research & Advisory Firm, 2014) the value drivers behind the global biofuel acceleration include:

•  Improved economics vis-à-vis fossil fuels •  Environmental regulation and related institutional & governmental stimuli •  Socio-economic factors including rural development •  Mitigation of geo-political risk, energy independency

The relative importance of the different value drivers varies depending on the socio-economic and political & regulatory conditions of a country, making up a situation specific value chain (EBB, 2013). As a biofuel value chain developer & manager, Sunchem offers exceptional understanding of the full value chain from crop development to final markets, ensuring long term sustainability, profitability and competitiveness

Sunchem is evolving its structure to become a multiple feedstock platform with the capability to produce biofuel from seed to market

Sunchem

Sunchem is a research and develop company operating in the sector of genetic and recombinant DNA applied to plant for energy and human purposes. About energy application, Sunchem has selected some tobacco varieties for energy applications aimed at the production of seeds rather than leaves. There is no nicotine content and you cannot use for smoking purpose: it is an oil crop (OGM free). Sunchem Holding holds the exclusive rights to the enjoyment and development on an international level of the new industrial patent “seed tobacco” (Italian patent RM2007A000129 and international patent PCT/IB/2007/053412). Sunchem presents a mix of professional skills organized to develop and consolidate new vegetable plant studying the process from the genetic and agronomic to market applications. Sergio Tommasini, CEO, is going to position Sunchem as a “full value chain partner”. Sunchem controls the energy tobacco project from the genetic to the market (G2M) - Based on: • The genetic control of the energy tobacco (patent and variety) • The differentiation of the unique agronomic protocol (related to countries) • The value partnership with oil processing and distribution companies

Idroedil – Controlling shareholder

Idroedil Group has been founded 35 years ago in the Province of Imperia North of Italy for the management of urban solid waste and inert material. Innovation, but especially farsightedness, is what Ghilardi Family always wants to achieve. The quality that best expresses the Group is precisely the strength to look beyond, to see far, to understand how a problem can transform itself into a resource and into energy.

Already 30 years ago, Carlo Ghilardi (Massimo’s father), starting from slid urban waste, produced biogas to heat floricultural greenhouses.

Today, regarding the waste management, Idroedil manages 150.000 ton of urban solid waste a year and produces 2 MW of green-energy from biogas

Actually the group has concentrated a lot of investment & efforts on alternative energy activities

Plantechno: research partner

Plantechno, located in Lombardia, Italy, is a company specialising in plant-based biotechnology projects with commercial and consumer interest. Created in 1995 by researchers involved in plant and microbial biotechnology, the company has evolved into a productive enterprise with a broad portfolio of projects and products of commercial interest. Plantechno holds several patents on technology to express human therapeutic and nutraceutical proteins in plants, as well as expression of genes to reduce the allergenic potential of certain foods. Plantechno is also committed to the development of platform technologies which improve the efficiency and utility of plant transformation. Finally, the initiation of projects in the biofuels area holds enormous potential for future growth. Plantechno is committed to plant-based projects that have the potential to improve the health and quality of life for humans and animals. On the website we can find a list of some Plantechno’s patents and publications Plantechno's facilities include 1500 m2 of laboratory, growth room, and research facilities, 400 m2 of greenhouse space, land for on-site field trials, and 1500 L of fermentation capacity.

Our research Partner in USA

Tyton Biosciences Corporation -  Privately owned, Virginia-based biotech focused on the genetic modification of tobacco for the production of

fuels and value-added products -  Innovative intellectual property portfolio -  Molecular biology, agronomics and processing activities

Tyton’s team combines expertise in developing early-stage businesses, technology licensing, business development and research. Before advising Tyton, the company’s Chief Scientific Advisor, Dr. Koprowski, started and led the Biotechnology Foundation Laboratory, served as the director of the Wistar Institute, helped found Centocor which later sold to Johnson & Johnson for approximately $5 billion, improved the Pasteur rabies vaccine, and discovered the first oral polio vaccine. Dr. Koprowski hand-picked the outstanding scientific team who ultimately implemented his vision of harnessing their expertise in modifying plants for pharmaceuticals, into genetically engineering a superior fuel feed crop. The three principal researchers behind the science have a combined experience of over 60 years in plant sciences and in addition to working with Dr. Koprowski, two scientists have studied under the world famous plant genetic scientist Dr. Yuri Gleba.

Our partner for strategy and advisoring

Dianoia is a knowledge company that provides Italian and international consulting and strategic and industrial research services. Diánoia is a center of excellence that groups together multidisciplinary teams of highly qualified professionals who share the values of research, of knowledge, of communicating and of brainstorming ideas in order to create the maximum added value for their clients. The company has a well-structured mix of skills, abilities and people:

~ General and specialist skills, in theory and in practice ~ Vertical skills in the fields of taxation, finance, organization, marketing, economy and industry ~ Consultants with excellent sales and customer-management abilities work alongside others who are more oriented towards analysis and creation.

Dianoia Ceo, Nicoletta Di Norscia, is studying Doctoral Business Administration at the Monaco – Nice Sophia Antipolis International University and, in particular, is member of MOC – Macroeconomics of Competitiveness Network at the Harvard Business School (Prof. Michael Porter)

Our worldwide presence

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Our vision: the integration of the value chain

We are not ... •  Sunchem is not Monsanto •  Sunchem doesn’t own lands •  Sunchem is not a farmer •  Sunchem is not a trader •  Sunchem doesn’t hold plants for

biodiesel, biofuel or biogas

Sunchem has to integrate the value chain •  Involving premium partner •  Managing the profitability and sustainability (understand the cost-chain) •  Keeping a strong know-how on genetic and research •  Improving know-how on agro-process phase (how to manage seed,

biomass, oil and cake) •  Reinforcing the value of the product on the market

Country - Market penetration

-  Country analysis -  Risk (political,

supply, etc.) -  Agronomic data -  Product value -  Market way-out

TIMING

SCOPE

-  Test phase -  Local presence

2-3 Months

1-2 Years

-  Industrial test -  Market

1 Year

-  Country & Market Penetration strategy Ongoing

Go Industrial

A deeply advance analysis helps to avoid future problems

- Consolidate the partnership - Improve local leadership

-  Consolidate the product value -  Improve the integration

South Africa, Brazil, Italy, USA, Namibia, Romania, Bulgaria

Tunisia, Morocco, Egypt, Tanzania, Mozambique, Ecuador, Spain

The scheme of offer: modular, flexible, integrated

Sunchem Holding holds the exclusive rights to the enjoyment and development on an international level of the new industrial patent “energy tobacco” (Italian patent RM2007A000129 and international patent PCT/IB/2007/053412) . The plant of tobacco for energy applications, contrary to the tobacco for the cigarettes industry, maximizes the production of flowers and seeds to the detriment of the leaves production. There is no nicotine content and you cannot use for smoking purpose. The plant is extremely robust, able to grow in various climates and soils, as a matter of fact it can be cultivated on marginal lands which cannot be used for food production. From 1 HA cultivation of Energy Tobacco we could have an average of seed production from 4 to 10 TN with multiple harvest per year. From one harvest of seed we can reach up to 2,5 ton of seed. Seed contains around 40% of oil and by cold press we could have 33-34% of raw oil and 65% of protein cake. We can flexible manage the cultivation also for biomass in order to produce biogas integrated with seed production. From 1 harvest of biomass we can reach up to 35 ton of fresh product. About the product usage: Crude Oil (energy production, biodiesel, niche market and jet fuel for aviation) Oil-cake (animal feet because of a good pro-fat mix) Biomass (electricity, biogas)

Our variety SOLARIS

Crude oil

Applications: §  Biodiesel

§  Jet-Fuel (HEFA) - ASTM D7566

§  Cogeneration for electricity

§  Other industrial application (bioplastic)

Fatty acid:

§  75%-77% Linoleic

§  11%-12% Oleic

§  8%-10% Palmitic

§  2%-3% Stearic

Key Characteristics of Tobacco Oil

Flash Point UNI EN ISO 2719-05 258 oC

Volumic mass at 15o UNI EN ISO 12185-99 928.6 kg/m3

Viscosity at 40o UNI EN ISO 3104-00 32.1 mm2/s

Yield value ISO 3016-94 -21 oCAcid number ASTM D 664 3.88 mg KOH/gHydrogen ASTM D 5291-07 11.4 % m/mNet Calorific Value ASTM D 240-07 8820 kcal/kgPhosphorus UNIEN14107 13.8 mg/kgPotassium UNIEN14538 2.4 mg/kg

Cake

Applicayions:

§  Integrator for animal feed : protein 36%, high omega 6 because of linoleic acid, raw fiber 13-15%

§  Cogeneration

Key Characteristics of Tobacco Residual Cake

Humidity ASTM D 5142-04 8.0 %Ashes " 5.5 %Carbon ASTM D 5373-07 47.6 % m/mHydrogen " 6.1 % m/mNitrogen " 5.8 % m/mNet Calorific Value ASTM D 5865-07 4618 kcal/kgMacroelementsCalcium UNI CEN/TS 15290 2450 mg/kgMagnesium " 6287 mg/kgPotassium " 15594 mg/kgSodium " 25 mg/kgAshes

Softening Temperature DIN 51730 1065 oC

Melting Point " 1290 oC

Pilot plant and comments on the fraction of product

•  Tobacco oil is proven to be an excellent raw material for the production of bio-jet fuels using the XTL process (Argos Oil Patent - HEFA) ~  This technology has some unique elements in

comparison with the other hydrogenation patents present on the market (Neste, Petrobras, etc.)

•  The kerosene fraction showed an extraordinary freezing point, below -65° Celsius and perfect density and viscosity

•  The fraction has been certified ASTM D7566-11 “kerosene from hydroprocessed esters and fatty acid”

•  The XTL pilot plant is currently being improved and a new pilot-scale industrial plant is being planned, with greater capacity to convert and select fractions

August 6, 2014 – South Africa, Limpopo

More Information: SkyNRG Media Relations, tel. +31 20 470 20 20, mediarelations@skynrg.com Keizersgracht 203 IV – 1016 DS Amsterdam – The Netherlands - www.skynrg.com

SKYNRG PARTNERS WITH BOEING AND SOUTH AFRICAN AIRWAYS TO TURN TOBACCO INTO SUSTAINBLE JET  FUEL  BASED  ON  SUNCHEM’S  SOLARIS  TECHNOLOGY

JOHANNESBURG, August 6, 2014 - SkyNRG announces its first major feedstock project in South Africa based on the Solaris technology. Solaris is a nicotine-free  energy   tobacco   crop   that’s  developed  by   the   Italian  company Sunchem. SkyNRG and Sunchem SA have teamed up to roll out Solaris in Southern Africa at large scale to help power local sustainable jet fuel production. Both South African Airways (SAA) and Boeing will provide active support in securing further project financing and off take.

Solaris can be used as a bio jet fuel feedstock that can help to significantly reduce cost price levels towards fossil parity and has the potential to reduce 80% of CO2 emissions compared to fossil kerosene. Next to the production of vegetable oil, the plant can be used to generate valuable animal proteins and biomass for rural electrification purposes. Solaris aims to demonstrate its sustainability by meeting the criteria of the Roundtable of Sustainable Biomaterials (RSB) standard which has been identified by the World Wildlife Fund (WWF) and other international NGOs as the strongest sustainability guarantee on the market. SkyNRG, Boeing and SAA anticipate growing Solaris on large-scale as well as for small-holder farms in the region. Boeing, SAA and the RSB are already working together with Southern African stakeholders to position farmers with small plots of land to tap markets for biofuel feedstocks that provide socio-economic value to communities without harming food supplies, fresh water or land use. The consortium wants to raise further funding in the near future to reach critical scale as soon as possible.

Maarten van Dijk, Chief Technology Officer at SkyNRG said: “We strongly believe in the roll out potential of Solaris in the Southern African region. Business cases like these tick all the right boxes for SkyNRG and are exactly what we are looking for, as they give the opportunity to deliver affordable and  sustainable  fuels.”

Joost van Lier, Managing Director of Sunchem SA stated: "We have been working on this project in Marble Hall for two years proving success in the small scale trials. We are pleased to have the support of Boeing, SAA, SkyNRG and RSB to be able to demonstrate the project in an industrial trial on both the commercial and community  land.”

"Boeing is proud to work with SkyNRG and our customer South African Airways on a valuable project with Solaris plants that supports sustainable aviation biofuel development, economic opportunity and public health in South Africa," said Julie Felgar, Managing Director of Environmental Strategy and Integration at Boeing Commercial Airplanes. “We  are  pleased  to  be  working  with  partners  of  SKYNRG’s  caliber,  who  are  globally  known  as  one  of  the  leaders in the market for sustainable aviation biofuels,”  said Ian Cruickshank, SAA Group Environmental Affairs Specialist. Rolf Hogan, Executive Secretary at RSB commented: “We  are  very  pleased  with  this  important  initiative by a key RSB member that offers the potential to deliver both sustainable bio jet fuel and socio-economic development.”

Information sheet

Dr. Sergio Tommasini Sunchem Holding www.sunchem.it

Mobile: +39 34855337 Mail to: sergio.tommasini@sunchem.it