Viridescos progress Vi id

James Scruby Director Viridesco Limited

Madrid, M d id 14 / 15 May 2008 M

Viridesco Ltd. is a UK based biofuel company focused on the production and local distribution of pure plant oil (PPO) as a diesel substitute in the developing world.

Viridesco h it own vision f bi f l Vi id has its i i for biofuel

Focus on the production of pure plant oil (PPO) for local markets in the developing world using Jatropha as an oil yielding feedstock oil-yielding Produce a highly price-competitive biofuel alternative to imported oil and gas: d low cost of production in the developing world No biodiesel production - use pure plant oil as a fuel (PPO) with engine conversion technology Serve local developing world demand, targeting large-scale consumers with a cheaper and cleaner alternative to diesel fuel

Worldwide scope
Viridesco aims to develop a project pipeline in three continents which will enable us to become a leading PPO biofuel company.

Mozambique
Current projects Locations of potential projects that we are aware of

Project I: Mozambique
Temperatures T t October November April May 720 metres ASL Rainfall Annual rainfall approx 1200mm Mainly D M i l December to April b t A il No frost or hail Low winds Access 110 kms east of Lichinga 9 kms farm road to a good tar road Max o 33 C o 25 C Min o 12 C o 5C Lichinga

Project I: Mozambique
Land use before Jatropha
Previous cultivation in the Portuguese era Secondary growth now b i cleared S d h being l d - Riverenes and surroundings untouched - Wet land left undisturbed - A hill are not disturbed good h bi Ant hills di b d d habitat
Google earth image

Soil conditions
200 to 400 mm top soil Mainly red loam Areas of sand often waterlogged Sub soil is a heavy clay base (up to 35%) Good conditions for many crops maize, soya, cassava, cotton, sunflower

Progress so far
Planting from OCT to FEB

Planting
140,000

PLANTING PROGRAMME

Planting began in late 2004 Nearly 120,000 plants to date Several trial plots to test different approaches A huge amount of practical learning especially from l i i ll f problems we have encountered Water and fertiliser have a large impact at the beginning
Number of trees

120,000

100,000

80,000 80 000

60,000

40,000

20,000

Dec c-04

Dec c-05

Dec c-06

Dec c-07

Apr r-08

Nursery
Use of local seeds and seeds sourced from elsewhere
Selection of seeds from better plants cross pollination issues Use of cuttings in a nursery bed this year Increasing selection and culling of poor plants Building up experience of germination conditions, cutting and planting techniques. Focus now on pruning to p g stimulate growth and pod formation.

Plantation problems
We have encountered several problems. Some we have overcome . Some we have learnt to avoid.

Water logging Termites and ants Flea beetle Fire Animal encroachment Weeds Water l i i th W t logging in the nursery caused root fungus d tf

Ant damage to a mature tree

Flea Beetle

Damage to young shoots

Fire damage these plants will recover but a growing season will be lost g p g g

Control of competing g p g grasses is essential. It has a large impact on g g p growth.

Harvesting data

Yield by age of tree

Kgs of seed per tree e

We are keeping careful records of seed harvested Quantities recorded for

each year group of trees There seems to be a dramatic increase at year 3. All harvesting by hand

3.5 3 2.5 2 1.5 15 1 0.5 0

6 12 18 24 30 36 months months months months months months

Jatropha J t h seed and shell straight from the de-shelling machine d d h ll t i ht f th d h lli hi

Viridescos crushing trials

Jatropha oil analysis from Viridesco crushing trial

Seed from Madagascar was crushed in Europe by Viridesco in a crushing trial.

Efficient oil extraction e traction requires expertise. Early trials were a total failure. Oil extraction at approx 27% by weight. High quality oil. Ideal oil for direct use as fuel if crushed correctly. W are conducting We d i further trials with Elsbett.

Property Density i Flashpoint Viscosity Heating Value Cetane value Iodine Sulphur p Phosphorus Contamination Oxidation stability Water content

Analysis
920 242 31.9 31 9 37563 43.3 113 2.0 12.0 14.0 5.5 1190

DIN 51605
900 930 k / 3 kg/m min 220oC max 36 mm2/s 36000 kJ/kg min 39 95 125 Jod/100g max 10 mg/kg g g max 12 mg/kg max 24 mg/kg min 6.0 h max 750 mg/kg

Some thoughts on finance

Financial observations Some rough guidelines for costs of preparation, planting and maintenance. L d clearance Land l
minimum $400 per ha p p Land preparation and planting - $200 per ha Annual maintenance $150 per ha Harvesting - $50 per tonne There will be no worthwhile yield for 3 years. years By which time the net present value (NPV) of early investment has nearly doubled. Take great care to keep initial investment under control. Focus on expenditure that will at least y double yield or shorten time to harvest like fertiliser or hand irrigation. Extra costs like transportation to ports or biodiesel production costs are very difficult to recover without making heroic assumptions about plant yield. Please can someone invent a cheap harvester as soon as possible!

How can Viridesco help you?

Products and services
Viridesco has Jatropha seed to sell from a three year selection process. Useful for plantation establishment and variation of seed types. Limited quantities available. Viridesco has test quantities of Jatropha oil available for immediate delivery. Over 80 customers so far, including Repsol. This oil is for testing and research and is from a test batch so it is expensive. But it is g p guaranteed and comes with a carbon chain analysis. Viridesco offers consulting services for new Jatropha projects. projects Practical agricultural advice, from those that have advice built their own project and have found the answers to the problems. Finally, PPO conversion equipment in conjunction with Elsbett.