Sustainable Growth & Development together with Global Communities

SHAIYO-AA GROUP

Topics • Why Shaiyo-AA is considered as one of the

leader in biomass power plant business in Thailand and South East Asia?

• What are the motivation for investment in biomass power plant projects?

• What are the common barriers faced by biomass power plant investors?

• How we sustainably overcome the barriers? • Opportunity for our future cooperation • Key success for our cooperation

Why Shaiyo-AA is one of the leader in biomass power plant

business in South East Asia?

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Shaiyo-AA Group of Business

Logistics

R&D

Shaiyo-AA is the Leader in Fully Integrated Biomass Power Plant Business

R&D of energy tree

Sprout production Plantation

Transportation Bio-fuel production

Biomass Power plant

Motivation of Investment In Biomass Power

Plant Projects

Surplus Biomass Supply y

Incentive Adder

Experience/Know how

Strong support from Community

Market Opportunity through PEA

(PPA) throu

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Motivation of Investment In Biomass Power

Plant Projects

Efficient Logistic System

Carbon credit revenue CDM PoA on Power Development

Programme in Thailand

revenue

CO2

Common Barriers faced by Biomass

Power Plant Investors

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Lack of Funding

Insufficient Resources Lack of Effective

Gov Policy Support

/Schemes

Many Choices of

technologies

SPP VSPP

gasification

How Shaiyo-AA overcome the Barriers

Funding

Equity

Bank CDM

Lack of Knowledge ck of Knowledg 24 years of experience/know how

How Shaiyo-AA overcome the Barriers

Insufficient Resources

� 2.5 million contract farming

� We have 30 woodchip mills

� Deliver 400 million sprout a year for planting

/Schemes

• BOI • PPA• Adder

Optimize and apply:

Lack of Effective Gov Policy Support

Many Choices of

technologies

Kasetsart University

sEstablish partnership and choose technology based on requirement such as VSPP, SPP, gasification or combustion

To Establish Biomass Power Plants of Today and Tomorrow

for the Future of Humanity

Shaiyo-AA s Vision

Shaiyo-AA s Sustainability Missions

Mission 1: Turning waste into energy

Mission2: Improvement of high efficiency

Biomass Power Plant projects

Mission 3: Corporate Social Responsibility (CSR)

MISSION 1: TURNING WASTE INTO ENERGY

Barks Agro Residues MSW waste garbage

195,520 km2

Agricultural area in Thailand

61 million tons/year (Approx Agricultural waste)

Approx of electricity that can be produced possibly

from agro waste

Approx of electricity that can be produced posssibly

Rice straw

Sugar cane leaves and tips

Tree barks and residues

Info use for illustration only, do not quote as reference info

ROADMAP FOR BIOMASS PROJECTS (Short term)

Namphong Banbeung

Prasat Chokchai

2.3 Establish partnership with

quality performance technology providers especially designers from Germany to re-innovate technologies and replication of technologies locally to create competitive costing for biomass technology and equipments

MISSION 2: IMPROVEMENT OF HIGH EFFICIENCY BIOMASS POWER PLANT

PROJECTS

Expansion of Biomass Power Plant projects within Thailand and the region through the following effort: 2.1 R&D for energy crops and planting at unused land and degraded land for sufficient supply of biomass fuel for Biomass Power Plants

2.2 Improve Logistic and Supply chain System including transportation of biomass, lead-time of delivery of biomass, and storage capacity of biomass

SHAIYO AA s Sustainability Mission

2.1 R&D for Energy Crops Objective to meet sufficiency of Biomass Supply

• SHAIYO AA Direction is to do R&D for

Energy Crops, we call it fast growing energy trees and fuel trees with high heating value for planting at degraded land or unused land

Sustainable social economic of community

2.1 R&D for Energy Crops A Sustainable Biomass Fuel Model

Degraded land / Unused land Plantation

Biomass Fuel

Biomass Power Plant

2.1 R&D for Energy Crops Benefits to Sustainable Development

Collection center

Individual contracted farmers

To collect and supply biomass fuel

2.2 Improve Logistic and Supply chain

Requires efficient system to supply biomass fuel to

biomass power plants

2.3 Establish partnership with high potential technology, engineering, and

designers

• Combustion => German Technology • Boiler => German Technology • Hydraulic system => German Technology • Turbine => German Technology

MISSION 3: CONDUCT CORPORATE SOCIAL

RESPONSIBILITY (CSR)

3.1 Design Environmental friendly Power Plants

3.2 Create mutual Individual benefits

3.3 Create mutual Communities benefits

3.4 Contribute to Global Benefits

3.1 Design Environmental friendly Power Plants Conventional Power Plant uses fossil fuel such as NG, Coal and lignite , which creates environmental impact • Open dumping and burning of biomass residues will create environmental issues such as release of methane and CO2

• Carbon emission approximately 0.5812 tCO2/MWh

•Total Potential emission reduction in Thailand from Residues is equivalent to 170,000 Million tons of CO2 per year

Type Percentage

Natural Gas 72

Lignite 12

Coal 8

Hydro 5 Biomass 1.5 Others 1.5

Burning residue release CO2 Left over release CH4 Should go to Power Plant

Info fm internet for illustration only, do not quote as ref

3.2 Create mutual Individual benefits

• Job and income increases • Contract Farming: Guaranteed Floor Price •Skills Transfer

3.2 Create mutual Individual benefits (cont)

3.3 Create mutual Community benefits

• Community fund contribution approx 172,000 Euro/year

• Create infrastructure support and donation for building of Road/School/Temple/Community Centers

• Provide electricity security to community

3.4 Contribute to Global Benefits

Absorb CO2 by 32.24 million tons

Release O2 by 48.81 million tons

3.4 Contribute to Global Benefits (cont)

•Absorb CO2 by farmed tree

32.24 Mil Ton/year

• Increase O2 to environment

44.81 Mil Ton/year

• Create good environment and reduce global warming

The figures used are from internal database for illustration only, Do not quote for references please

External Support 1. PPA from PEA

2. Adder from Eppo

4. CDM PoA on Biomass Power Plant Development Program in Thailand managed by ACSV, initiated by GIZ & DIW

3. BOI

SUMMARY

Mission 1: TURNING WASTE INTO ENERGY Mission 2: IMPROVEMENT OF HIGH EFFICIENCY BIOMASS POWER PLANT PROJECTS 2.1 R&D For Energy Crops

2.2 Improve Logistics & Supply Chains 2.3 Establish Partnership with Quality

Performance Technology Designers Mission 3: CSR

Prospective of SAA as the Key Factors in Motivation Biomass Power Plant Investor

Internal Mission External Factors

• Availability of technology support such as Germany • Thailand Government policy and scheme

o PPA o Adder o BOI

• International scheme CDM PoA on Biomass Power Development Programe in Thailand

Key Success Factors for Promoting Biomass Power Plants

Biomass Power Plant

Energy Tree

Residues

Collecting Cost

Cost of Planting, Harvest, Logistic

Feed in Tariff/ Adder/ CDM

SUMMARY

Our Future Cooperation

Our Future Cooperation

• Over 24 years of power plant experience and know how

• We have 150 mechanical engineers • We have high quality technicians with low cost

Shaiyo- AA s Strength

• We have 68,000 m2 of workshop space

Our Future Cooperation (cont) Shaiyo- AA s Facilities

Our Future Cooperation (cont)

• Our business is located at AFTA Zone

Shaiyo- AA s Strategic Location

Our Future Cooperations (cont)

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Our Future Cooperations (cont)

We seek for strategic partnership :

• In Engineering such as biomass power plant, MSW power plant, gasification, biogas, etc

• Provision of Manufacturing services • Cooperate in EPC (Engineering Procurement

Construction) • Join in R&D • Join Investment (Joint Venture)

Key Success for

Our Cooperation

Key Success for Our Cooperation

•No Market •No Demand•Lack Opportunity ( AFTA ) •Competitor Strong

No purchase

High price

High Cost

High Price

German Products

Key Success for Our Cooperation (cont)

German products

( Engineering and Know How )

Fabrication in Thailand

(Thai Manufacturing)

German products

( Engineering and Know How )

FabricationnFabricationonn in Thailanin Thailandddin Thailand

(Thai Manufacturingai Manufactturinturi g))))))

Low Cost

Low Price

Big Volume of Purchasing

•Big Demands •Big Market Share •Market Leader

Low Price

Thank You

Thank you to GIZ and his team for •opening the door of future opportunity and •Initiate our cooperation between German organization and Thailand

FOR BUSINESS INQUIRIES:

International Communication Advisory on behalf of Shaiyo-AA Contact: Mrs. Nicole Tan E-mail: nicole.pstan@gmail.com Mobile: +66 085 360 1333 Or Inquiry Support : intercomm@shaiyo-aa.com Mobile Number: +6689 797 7213

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