LILY PROJECT* * *

Avv. Carlo Sinatra

Founder and Managing Partner Sinatra Law Firm Founder and President of Gssep Onlus

LILY PROJECT FOR CHINA

A GSSEP PROJECT

7th November 2013

GSSEP – LILY PROJECTIndex

GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM (GSSEP)

LILY PROJECT: GENERAL OVERVIEW

LILY PROJECT: TECHNICAL OVERVIEW

GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM

Overview • Energy investments should address energy

needs within a comprehensive sustainable vision.

• GSSEP developed a model which combines growth and availability of food, energy and quality of life.

• A new model to ensure developing Countries access to sustainable, reliable and affordable energy, not affecting climate change and taking into account economical, technological and geopolitical issues.

GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM Key principles

• Such agrobioenergy islands are of very significant dimensions and contribute to a massive production of energy in the frame of a fully integrated sustainable scheme with the hosting territory.

• GSSEP’s biomass plants do not utilize food which remains in the territory and constitutes an important component of the GSSEP economy.

• GSSEP is being organized as a worldwide initiative with the objective of promoting GSSEP’s principles in all Countries focusing on implementing sustainable growth for their populations.

• Currently GSSEP’s organization is based in Italy but is intended to create branches all over the world.

LOBAL

GSSEP’s main concrete principles:• Keep the main part of energy output in the

territories where the initiatives are implemented, so as to promote local growth and development.

• GSSEP’s renewable energy sources are mainly photovoltaic, energy from food residues, hydro, all combined into «dedicated agro and bioenergy islands» adapted to the physical characteristics of the territories.

• GSEP is a new philosophy to address development and cooperation.

GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM Key guidelines and organisat

• All of GSSEP’s investments are necessarily associated to very important infrastructural investments such as improvement, upgrading and reinforcement of roads, railways, airports and ports, as needed, but are also focused on many social investments in schools, hospitals, multicultural centers, renewable energy museum, childhood and women organizations, training and education programs on food, energy and sustainable development targets.

• GSSEP is lead by a group of experienced professionals, actively engaged in many disciplines, such as: development, legal, communication, engineering, agriculture, financing, chemistry, environmental science, lobbying and public affairs.

• GSSEP’s business model is based on an effective effort to assess the feasibility of the projects in different Countries and to start working with Companies actually interested in investing on a long term basis in the successful GSSEP projects.

GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM

One of the first projects of Global Sustainable and Social Energy Program has been constructed thinking to Chinese territories where a strong renewable energy development could be related to a still more massive agricolture development, creating integration, sinergies and direct and indirect social benefit for the guesting territory.

The Project thought for China, and implementable in different chinese territories willing to guest it, it is called «Lily».

Lily is an agro-energy, sustainable development plan and is founded on the following three key concepts:

1. Economic sustainability: return on investments, entrepreneurial support, modular business plan, accessible energy production in a frame of integrated renewables energy resources and namely: hydro, biomass plant, pv plants and biogas plant.Part of the profits of such activity should be dedicated year by year to implement a local social plan. Economically speaking Lily is a winning project for all, entrepreneur, financial institutions, populations, local governments.

2. Environmental sustainibility: innovative technologies, respectful of health and environment, protection of land and traditions and high standards of security.

3. Social sustainibility: technology transfer, employement opportunities for local resources, local industries development, education and training, integration of public infrastructures (hospitals, schools) and infrastructures.

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System Integration for food and energy production in China to support:

- Growth of food and energy production in order to address growing demand - Local infrastructure development- Qualified and responsible response to the right to energy, which means widespread access to sustainable energy and improvement of quality of life

Lily is organized into different sublocal projects, named Bioenergy Islands containing:

a) Hydro plant between 5/10/15 Mw.b) Biomass plant functioning as the case may be with food crops, (just crops and not food!) including rise crops between 5/10Mw.c) Pv plant at least 30 Mw.d) New agricultural activities aimed to produce crops fo the biomass plants (whose extension is depending on kind of cultivation but should not be less than 5000 ha).e)Training on new technologies (also in agricolture and related to «optimization»).f) Social infrastructures financed with year by year royalties outcoming as part of the profits of activities producing energy andg)Education centers on food, energy and sustainable development targets.

LilyPhotovoltaic

BiomassSocial evolution

Sustainable progress

Hydro Plant

LILY PROJECTHelping farmers to improve and expand crops and skills towards a better life

Improvement Model

Expand Today’s Farming Biomass production/Sale

Food Crops

Nutrition/Saleproduce

Power GenerationBiomass – 5/10/15 Mw

residues

Biocrops

PV Power Generation / Sale - 30 Mw

The sun

biomass

specif crops

Social Evolution

- Job Employment-Education (Schools and training)-Health (Hospitals)-Communication (Culture center)

The water

Hydro Power Generation / Sale – Sale – 5/10/15Mw

• LILY PROJECT – AGRICULTUREBioenergy Island: Biomass Feedstocks and Total Land repartition

The land cultivation of each bioisland will be shared between:

Rice Other Food crops Fruit trees and agroforestry Horticulture Different biomass dedicated crops

• LILY PROJECT – AGRICULTUREBioenergy Island: Location and scale up

LOCATION

Each Bioenergy Island covers a variable surface of 5.000 Hectares dedicated to agriculture provided that the actual dimension shall be based on the kind of cultivation as well as on the availability of water and food cultivation characteristics.

We believe that each bio island could generate at least 7.000 new employees mainly of them in agriculture.

• LILY PROJECT – AGRICULTUREBioenergy Island: Flexibility location and implementation timing

In its aim of developing a sustanable project for China, GSSEP intends to agree directly with the Chinese national and local Governments, as the case may be, the specific layout and contnet of the project, such as:

- Mix of renewable energy resources to be used and implemented,- Geographical definition of specific areas for one or more bioenergy

islands.- Extension of the lands to be granted.- Overall frame conditions.

• Lily PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues

Rice

Rice is the main agricultural crop and staple food in China.High amount of rice production contributes to high availability of rice residues such as rice husk and rice straw. These residues could be an option for any biomass energy systems. Rice husk is the outer cover of rice which comes from rice milling process as by-product. The usage of rice husk as solid fuel can be a promising way to provide considerable amount of useful energy. Rice straw, on the other hand, is another by-product of rice and great bio-resource since it is one of the richest material in terms of its lignocelluloses.

• Lily PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues

• Lily PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues

MaizeMaize it can supply a considerable amount of corn cob as biomass energy source. Moreover, the chemical and physical properties of corn could enable it to be suitable feedstock for several energy generation methods.

• Lily PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues

SugarcaneBagasse and top and trash of sugarcane are the main residues of sugarcane. While bagasse is dry, fibrous residue remaining after sugarcane stalk after extraction of juice, trash of sugarcane is the remaining of the plant in the field after the harvest.

• Lily PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues

• Lily PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues

Other food residuesTo be evaluated territory by territory

• LILY PROJECTSustainable social plan

Lily Project, in accordance with GSSEP principles, provides as an essential element the creation of significant social investments totally at charge of the investors.For each bioenergy island, Lily Project intends to offer, during all life of the project,:•1 small hospital, •2 childhood center, •1-2 schools,•1 women emancipation and education center,•Several professional training centers for new technologies utilized in Lily Project,•1 multicultural center aimed to spread the new GSSEP culture on sustainability, both in relation to food (nutrition) and energy.

• LILY PROJECTSustainable «frame » requested by GSSEP/LILY

In order to have a confirmation of the potentially interested investors which also GSSEP reasonably believes having the chance to involve in the implementation of Lily Project, we consider essential having a bankable frame fully in place and namely that the project be provide with:

1. Legal instruments and facilitation to grant the investors the land necessary to implement the Project and particularly the bioenergy island7s under a concession scheme or equivalent for a period of at least twenty five/thirty years and no cost/fee for investors.

2. Tax and fiscal exemption for ten years on all the revenues of the Project and not application of VAT duties.

• LILY PROJECTSustainable «frame » requested by GSSEP/LILY

3. Authorization process to be complied within a reasonable time being agreed in full respect and compliance with the applicable laws (also specifically issued for Lily Project, if necessary) but in a period not exceeding six/nine months from the date of starting of the authorization procedure so to optimize time and costs of the Project implementation.

4. A specific tariff scheme to be provided for all the produced power and

5. Full support to grid issues by competent Government and institutions in order to facilitate power dispatching and also grid repowering, if necessary.

• LILY PROJECTSustainable «frame » requested by GSSEP/LILY

Lily Project shall imply a lot of infrastructural activities and part of them such roads, logistic warehouses, harbor enlarging should be committed and guaranteed as far as a payment by the Government is concerned, while others such hospitals, schools, education centers shall be implemented free of charge by the investors as an essential part of the Project in compliance with GSSEP principles, in relation to that we also need a dedicated authorization and commitment status under bankable terms and conditions.

• LILY PROJECTLily advantages and assets for China

The advantages of Lily for China are the following:

-Significant sustainable, social, economic and business development based on investments that should be reasonably around 250/300 million EUR per “island” including social infrastructure;

-Innovative technology, both in biomass and in agriculture;

-training to facilitate future autonomous use by the local population;

-keep the food and the energy produced in China;

• LILY PROJECTLily advantages and assets for China

-new jobs creation in agriculture (potentially around 7.000 for each bio nergy island, depending on the number of islands developed);

-Increase of the current income of the agriculture through the sale of the existing biomass and new food available for sale;

-creation of multicultural centers, women emancipation and children organizations, education centers, professional schools and hospitals.

• LILY PROJECTLily time constraints

GSSEP is developing a project similar to Lily in other countries such as Tunisia where discussions with local governments are currently in very advanced course, but it would be very important for our world mission start the soonest implementing one, not smaller, in China too.

Every day we receive and supply energy, unendingly.

If we could manage such flows we would be capable of harmonizing our

energywith the one of the cosmos.

(Miao Yin)

 

XiéxiéThank You!

Avv. Carlo Sinatra

Founder and Managing Partner Sinatra Law Founder and President of Gssep Onlus

Via della Moscova 40/7, 20121 Milano (Italy)Tel.: +39 02 87 21 31 36Fax: +39 02 63 79 39 08

carlo.sinatra@studiolegalesinatra.comcarlo.sinatra@gssep.com