SUNONE SOLUTIONS

Your Partner for Harvesting Carbon Credits

SunOne SolutionsM-AGG ConferenceJune 17, 2010

1SunOne Solutions OverviewWe develop agricultural, land management, and environmental projects for registration and trading on carbon exchange markets.Our primary focus is carbon sequestration projects for Agriculture, Forestry and Other Land Use (AFLOU), including REDD, methane capture, and biomass. We are members of the Chicago Climate Exchange (CCX) and Climate Action Reserve (CAR), also work with Voluntary Carbon Standard (VCS) and American Carbon Registry (ACR).We have successfully developed over 150 projects accounting for over 3 million tCO2 on over 2 million acres in 11 U.S. states.We provide advisory services and project facilitating for clean energy and other carbon projects.

SunOne was recently named the #1 Carbon Offset Aggregator in North America by Point Carbon2Strong strategic partnersC-Quest Capital Formed by ex-World Bank and Goldman Sachs staff Extensive carbon finance experienceNebraska Heavy IndustriesLeading Nebraska investment fund, Founding PartnerExtensive agriculture networksEndesa CarbonoFounding partner of SunOne SolutionsLeading European and CDM project developer

3U.S. Office Locations

4SunOnes project development services focus on:Farmland

RangelandForestsGrassland

AFOLU: PROJECT TYPES5

Soil Carbon OVERVIEWNearly a quarter of global and 10% of US annual emissions result from land use change.Agriculture lands could sequester approximately 200-400 million MtCO2e annually. Lowest abatement cost:Most projects profitable at $2-4 Vs. $15 to $30 for other projects including Ag Methane, CCS, Land Fill Methane, etc

6Voluntary Carbon industry

RegistryGlobal Offsets IssuedTotal US ProjectsTotal US Forestry ProjectsTotal US Ag Soil ProjectsACR30,322,161 3210CAR4,985,300 4830CCX82,308,600 2122235VCS33,000,000 10007Top soil carbon project DevelopersCompanyCustomersAcres% of TAMAcres per customer1422,125,1130.4%14,9964,5005,500,0001.1%1,2224,0005,000,0001.0%1,2503502,000,0000.4%5,714TOTAL8,99214,274,2513.0%1,626

SunOne has focused on the largest ranches in the US.This market is largely untapped with only 3% of the potential acreage registered in voluntary programs.

8protocols and MethodologiesACRForestry Standard v2.0, Accepts CDM AF/REWorking on N20 reduction methodologyDiscussing soil agriculture, in-house Winrock expertiseCARForestry Protocol Several project types, inc. avoided conversionReviewing literature on soil protocolsCCXForestry Protocol - Several project typesRangeland and Farmland ProtocolsVCSHas REDD and other forestry methodologies in worksLimited soil methodology development

Market growth scenarios based on Point Carbon Carbon Market Analyst 3/1/20109MeasurementPractice base vs. project measurement baseMeasuring carbon or measuring green tonnageAdditionalityProject Baseline Scenario How to define business as usualRegulatory, Common Practice, Implementation BarriersConcern over public landsPermanenceKey issue with AFOLUReversals and buffer poolsLeakage issues important for ranching like forestryAvoided conversion of grasslands

Major Issues: Soil and forestry

Farms & RanchesProjects are eligible on CCX and Alberta Exchanges and must follow conservation practices established by the USDAs Natural Resource Conservation Service.Farming: no-till and some other forms of conservation tillage.Ranching: Moderate animal stocking rates, rotational grazing plan, and established drought management plan. ForestsProject eligibility depends on the participating registry, and growth and yield models determined on a project-by-project basis.Benefits:Low adoption costsScalableReduced fuel consumption and need for irrigationIncreased biodiversity and habitat area

Soil Carbon sequestration rates broadly established by USDA and other research institutions, however established rates are not available for all project areas.

Move toward a more measurement-based methodology.10Forestry standards can provide a good model for agriculture soil standards as major carbon project issues are similar, particularly with focus on permanence. The blocking and tackle of projects is different, and forester mentality is very different from farmer/rancher mentality regarding carbon.Demand for soil agriculture projects has been way to slow to develop, mainly due to lack of protocols / methodologies and govt support.Shifting to a $3-$4 per ton economically viable measurement approach is key PR value of forestry is higher than grasslands (in a voluntary market).Our govt policies focus too much on sustaining our agriculture sector but not our agriculture lands.

conclusions

Farms & RanchesProjects are eligible on CCX and Alberta Exchanges and must follow conservation practices established by the USDAs Natural Resource Conservation Service.Farming: no-till and some other forms of conservation tillage.Ranching: Moderate animal stocking rates, rotational grazing plan, and established drought management plan. ForestsProject eligibility depends on the participating registry, and growth and yield models determined on a project-by-project basis.Benefits:Low adoption costsScalableReduced fuel consumption and need for irrigationIncreased biodiversity and habitat area

Soil Carbon sequestration rates broadly established by USDA and other research institutions, however established rates are not available for all project areas.

Move toward a more measurement-based methodology.11ALABAMA OFFICE715 Avenue A, Suite 209Opelika, AL 36801(334) 749-6111COLORADO OFFICEPO Box 2969Denver, CO 80201(303) 500-5017

NEBRASKA OFFICE720 "0" St.,Suite ELincoln, NE 68508(402) 817-4317

TEXAS OFFICE1227 Heppner DriveCedar Park, TX 78613(512) 567-3165

John Hodgesjohn@sunonesolutions.comColorado, New YorkForrest Mertensforrest@sunonesolutions.comColorado, CaliforniaJohn McDanieljohnm@sunonesolutions.comAlabamaJace Norejace@sunonesolutions.comNebraskaKonrad Huberkonrad@sunonesolutions.comBrazilKimo Storkekimo@sunonesolutions.comTexasOFFICE LOCATIONS

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