Sustainable Bioethanol Projects in Sub-Saharan Africa

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1 Sustainable Bioethanol Projects in Sub-Saharan Africa Company Introduction and Project Kawambwa Date: 4 November 2015 Reference: Zambia Trade and Investment Conference

2 CNE listed on the London Stock Exchange (LSE:CNEL) Technology solutions for the bioenergy industry 108 projects in Europe, China and South East Asia Aggregate capacity of 9 million tons of bioethanol Expand into Africa no feedstock supply chain Africa needs: Economic diversification and job creation Energy security and reduced fuel costs Rural development and poverty alleviation Develop a bioenergy industry in Sub- Saharan Africa Build a sustainable feedstock supply chain Large scale projects Social impact and economic empowerment of rural communities In partnership with government and local stakeholders

3 Replicating Project Recently Developed in Thailand Ubon Bio Ethanol (UBE), Thailand Built in 18 months for PTT (Petroleum Authority of Thailand) 20% of Thailand's fuel-grade ethanol Cassava feedstock Annual production 120 million litres of ethanol Starch, HMS & other by-products Positive and sustainable local impact 600 direct employees 10,000+ out-growers Additional jobs in supply chain Biomass power plant Water treatment plant

4 Sustainable Feedstock Program 10,000+ out-growers produce >600,000 tonnes of cassava

5 Efficient Biorefinery 600 workers produce 120 million litres of bioethanol, starch & other by-products

6 Reduced Fuel Prices Mandatory ethanol blending E20 and optional Flex-Fuel blending E85

7 Portfolio of Projects in Sub-Saharan Africa Nigeria, Edo State 26,000 Ha Zambia, Luapula 20,000 Ha Ethopia Uganda Kenya Zimbabwe, Mashonaland 40,000 Ha Malawi South Africa

8 Joint Venture with Republic of Zimbabwe $150m of direct foreign investment 40,000 Ha project in Mashonaland Central 20,000 economic opportunities for redundant cotton farmers Dr Samuel Undenge, Energy and Power Development Minister signs agreement with Sunbird Bioenergy for 120 million litre bioethanol project in Mashonaland Central. October million litres of ethanol for national fuel blending program Development to commence in 2016

9 Compelling Case for Bioenergy in Zambia High cost of fuel due to transportation costs Dar es Salaam to Ndola 2,000 km Kawambwa to Ndola 400 km Political imperative for economic diversification Job creation Import substitution Energy security Available natural resources Low land utilisation Renewable water resources

10 KTC Kawambwa Bioethanol Project Kawambwa 20,000 Ha of land allocated Phase 2 Phase 1 5,000 Ha in phase 1 15,000 Ha phase million litres of fuel-grade bioethanol 36 MW of electricity (biomass power & solar) Starch and other by-products Employment 300+ direct employees 20,000 out-growers (1 Ha per small-scale rural farmer) Other value chain opportunities

11 Biorefinery will be Constructed Within 18 Months 2015 Sign IPPA Cassava variety trials 2016 Develop first 5,000 Ha of land Commence building the biorefinery 2017 Commission the biorefinery Expand farming operations to 15,000 Ha 2018 Expand farming operations +20,000 Ha Achieve operating capacity

12 Local Cassava Production Guarantee a market for local farmers and provide micro-finance to scale-up

13 Project Cost and Deliverables Project Finance to up-scale the power station Project Finance for biorefinery $40m $150m Year 600,000 tonnes of cassava production 120 million litres of bioethanol $110m of revenue Project Finance for farm 300+ direct jobs 20,000+ economic opportunities Mezzanine Finance Equity Finance Micro Finance $110m of import substitution 20% of petrol locally produced Additional 36MW of electricity

14 Maximise Benefits for all Stakeholders Return for investors Proven technology Experienced team Economic empowerment Direct local-employment Income opportunities for local farmers Power generation and new local infrastructure Aligned with government objectives Economic diversification Creating a >$1billion bioenergy industry Energy security and lower fuel costs Import substitution

15 Richard Bennett