Alfredo Langesfeld Argentine Renewable Energies Chamber May/June 2011

Renewable Energies & Food

Why to Invest in Argentina

Founded in 2006 as non-profit trade association.

CADER has as members representatives of all the

industries related to Alternative/Renewable

Energies such as: wind, solar, hydro, biofuels,

biomass, refineries, feedstocks, etc.  

Today the Chamber also interacts with many sister

institutions worldwide, pushing for further

development of the renewable energies industry in

Argentina and abroad.

2

The Argentine Renewable Energies Chamber / CADER

International increasing Clean Energies & Food demand.

Argentina has experienced an important growth in biofuels & food production.

Feedstocks: no supply problems

Investment: Billions of us$

New infraestructures allowed production increase for export and domestic market supply.

3

KEY FAVORABLE FACTORS

Global Total New Investment in Clean Energy

Source: Bloomberg New Energy Finance

4

New Investment by GeographyCAGR: Compound Annual Growth Rate

5

Source: Bloomberg New Energy Finance

The world needs 120 million more Has.and/or increaseProduction perHa.(FAO)

Argentina could tripleAgricultural

Production (at present Argentina Exports for 400 million people/year).

6

Argentine Golds

Green Gold: Green Gold: Lands & Lands &

AgricultureAgriculture

Mineral Gold: Mineral Gold: MineralsMinerals

Cristal gold: Cristal gold: WaterWater

Black gold: Fossil Black gold: Fossil OilOil

7

8

ARGENTINA IN NUMBERS

2.780.400 km area

3.761.264 km (total surface including Malvinas & Antartic)

Argentina surface: equal to the total surface of 12 countries: Spain (504K), Portugal (91K), France (547K), Italy (301K), Belgium (30K), Netherlands (41K), United Kingdom (245K), Sweden (450K) , Norway (324K), Austria (83K), Denmark (43K) and Hungary (93K) and there would still be place.

10.000 km boundaries

5.000 km coastline

Population: only 40.000.000

BIODIESEL - Argentina Production increase (2007/2011)

9

Source: CADER / Bloomberg

Rank 2007 2008 2009 2010(estimated)

1 Germany Germany Germany Germany2 France France France France3 Italy Brazil Brazil Brazil4 USA USA USA Argentina5 Brazil Argentina Argentina USA6 Austria Italy Spain 7 Argentina Malysia Italy 8 Portugal Belgium Malaysia 9 Spain Poland Belgium

10 Malaysia Portugal Poland

Argentine Biodiesel Installed Capacity

*3.000.000 tons 2011*

Production capacity expected to be 5 millions by 2015.Investments as of 2011/12: $ 1.5 billion*

*estimated

10

BIODIESEL EXPORTS & DOMESTIC MARKET

11

Years Installed Capacitym/t

Exports Domestic

m/t

2011* 3.000.000 Exp: 2.000.000*D: 700/900.000*

2010 2.000.000 Exp: 1.400.000D: 500.000

2009 1.500.000 Ex: 1.150.0002008 1.200.000 Ex: 725.0002007 180.000 Ex: 170.000

Exports: 95% EU - 5% others

*estimated

Prices May 2011

12

FOB Rosario/Santa Fe Prices (Indicative)

Biodiesel SME B100 us$ 1.300/Tons

Crude Glycerine us$ 300

Refined Glycerine us$ 600

Complies with US ASTM D6571 - EU EN 14214

Legal Frame

Law (2006) stipulates Liquid Fuels must be blended at 7%

(2010).

Biodiesel & Ethanol production increasing yearly.

National Biodiesel quota distributed among 19 of the 23

manufacturing plants

85% large oil producers

B5 January 2010/July 2010

B7 from August 2010

Production may reach 5 million Tons or more in 2015

We are doing it! 13

Sustainable & Efficient Agriculture

70% surface planted by direct seeding

Last generation industrial technology.

Mechanization among the highest in the world.

Average distance from farms to ports: 5/300 km (much less than Brazil - USA).

Only 5% of the crop is used for biodiesel, the remaining 95% is used as food !

14

Recommendation

It is essential EU-EC changes its vision for crops such as soybeans as biofuels are a by-product.

Soybean produces high quality protein.

It is EU and our responsibility to work with real data applicable to the situation of each country.

15

16Source: Centro Regional de Energía Eólica / C.R.E.E.

WIND PLANTS INSTALLED (approx. 17 MW)

Future Wind projects (900/1000 MW)

17Source: Centro Regional de Energía Eólica / C.R.E.E.

 Federal project: 1 MW source: PERMER

Electric power provision for rural homes/schools

Financing: World Bank /Provincial Governments.

SOLAR EnergyPERMER - Renewable Energies Rural

Electrification

18

1st. Solar Park ULLUM in San Juan•Connected to National Grid

•40.000 homes•Starting 1.2 MW •Financed by the province of San Juan & Spain

19Source: Joseluisgioja.wordpress.com

Hydroelectric Plants Location Power / MWYacireta Argentina/Paraguay 3100

Salto Grande Argentina/Uruguay 1890Piedra del Aguila Neuquen 1400

Chocon Neuquen 1200Alicura Neuquen 1000

Rio Grande Cordoba 750Futaleufu Chubut 448

Pichi Picun Leifu Neuquen 261Diamante Mendoza 150

Nihuil I Mendoza 72Ameghino Chubut 47Rio Hondo Santiago del Estero 18

Cadillal Tucuman 12 New Project

Barrancosa Condor Santa Cruz 1700

HYDROPOWER

20

PERSPECTIVESPresent/Future demand of biofuels in the EU is supplied partially by imports since EU’s own production does not cover demand.

Feedstocks (Grains/Oils/Cane) give to LATAM‘s biofuels industry a cost/benefit advantage.

Argentine Mandatory quota may increase from B7 to B10 in 2012 & B15 2012/13

Agro-machinery can use blend B50 (France approved B30 in 2010 for cars).

Electrical supply of energy originated in Wind, Hydraulic, Biofuels, Biogas, Nuclear, is also a major issue in the next coming years.

21

INVESTMENTS OPPORTUNITIES in ARGENTINA

IncentivesExport-oriented environmentally friendly projects.Early reimbursement of Sales Tax for capital goods Exemption from Import Duties for capital goods, complete production lines, new equipments.Provincial and Regional fiscal incentives under promotional schemes sponsored by various provincial governments.Business support infrastructure, Free Trade Zones.

Subject to Legal Advise for yr. business development.

22

Contacts in Argentina

Institutions working for the FUTURE of Clean Energies:

Argentine Renewable Energies Chamber (CADER): www.cader.org.ar

Argentine Chamber of Biofuels (CARBIO): www.carbio.com.ar

Argentine Biofuels and Hydrogen Association (AABH):claudiomolina@fibertel.com.ar

Argentine Association of Eolic Energy (AAEE):

www.argentinaeolica.org.ar

National Institute of Agriculture Technology (INTA):

www.inta.gov.ar

Argentine Exporters Chamber: www.exportar.org.ar

plus dozens of private companies

23

Opportunities & Investments in L.A.

GEA Biodiesel S.A.: Biodiesel & Glycerine in International

Markets.

GEA Consulting Corp.: Commodities (feedstocks/food/alternative energies)Financing, Mergers & Acquisitions in Latin America.

Representation of BERNARDINI/Italy: Refineries & Technology for Oils, Fats, Biodiesel,

Glycerine,Oleochemical Industries.

Contact Alfredo Langesfeld:

flang@geabiodiesel.com flang@geaconsultingcorp.com 24

THANK YOU!

Alfredo Langesfeld

The Argentine Renewable The Argentine Renewable Energies Chamber(CADER)Energies Chamber(CADER)

Viamonte 524, Suite 1010C1053ABL Buenos Aires

Argentina

Tel/fax + 5411.4515.0517

info@cader.org.ar www.argentinarenovables.org

25