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.

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The Argentine Renewable Energies Chamber / CADER

International increasing Clean Energies & Food demand.

Argentina has experienced an important growthin biofuels & food production.

Feedstocks: no supply problems

Investment: Billions of us$

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

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KEY FAVORABLE FACTORS

Global Total New Investment in Clean Energy

Source: Bloomberg New Energy Finance

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New Investment by GeographyCAGR: Compound Annual Growth Rate

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Source: Bloomberg New Energy Finance

The world needs

120 million more Has.

and/or increase

Production per

Ha.(FAO)

Argentina could triple

Agricultural Production

(at present Argentina

Exports for 400

million people/year).

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Argentine Golds

�� Green Gold: Green Gold: Lands & AgricultureLands & Agriculture

�� Mineral Gold: Mineral Gold: MineralsMinerals

�� Cristal gold: Cristal gold: WaterWater

�� Black gold: Fossil Black gold: Fossil OilOil

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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)

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Source: CADER / Bloomberg

Rank 2007 2008 20092010

(estimated)

1 Germany Germany Germany Germany

2 France France France France

3 Italy Brazil Brazil Brazil

4 USA USA USA Argentina

5 Brazil Argentina Argentina USA

6 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

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BIODIESEL EXPORTS & DOMESTIC MARKET

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YearsInstalled Capacity

m/t

Exports

Domestic

m/t

2011* 3.000.000

Exp: 2.000.000*

D: 700/900.000*

2010 2.000.000Exp: 1.400.000

D: 500.000

2009 1.500.000 Ex: 1.150.000

2008 1.200.000 Ex: 725.000

2007 180.000 Ex: 170.000

Exports: 95% EU - 5% others

*estimated

Prices May 2011

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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!

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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 !

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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.

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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

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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 1890

Piedra del Aguila Neuquen 1400

Chocon Neuquen 1200

Alicura Neuquen 1000

Rio Grande Cordoba 750

Futaleufu Chubut 448

Pichi Picun Leifu Neuquen 261

Diamante Mendoza 150

Nihuil I Mendoza 72

Ameghino Chubut 47

Rio Hondo Santiago del Estero 18

Cadillal Tucuman 12

New Project

Barrancosa Condor Santa Cruz 1700

HYDROPOWER

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PERSPECTIVES

�Present/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.

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INVESTMENTS OPPORTUNITIES in ARGENTINA

Incentives

�Export-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.

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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

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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.comflang@geaconsultingcorp.com

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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

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