Summary of presentations at the 2009 Intl Business meeting in Port-au-Prince

1. HAITI: OPEN for BUSINESS OCTOBRE 1st2009investment opportunities in renewable energiesDieuseul ANGLADE, eng.Director General Bureau of Mines and Energy International Business Meeting, Port-au-Prince, 1-2 October, 2009 BME

2. Presentation Plan Overview of the energy Sector Investment opportunities Conclusion BME

3. 1. Overview of the energy sector Haiti energy “consumption” matrix (% TOE) Haiti energy “markets” matrix (USD) hydro Other petroleum fuels Petroleumproducts 25% Wood Diesel (380 M) Biomass (wood & charcoal) 72% Wood-Charcoal (150 M) * Most wood-fuel consumed by SMEs (Moonshine, drycleaners, bakeries) BME

4. 1. Overview of the energy sector The energy demand Transportation, industry and domestic consumption 380 000 tons de charcoal per year for families: a US$ 150 M market 200 000 tons of wood in the SMEs : a US$ 60 M market 130 millions gallons of diesel : a US$ 380 market BME

7. Substitution of keroseneReplacement of kerosene lamps with lighting by small PV systems in rural areas

8. Briquette productionProduction of briquettes from waste/renewable sources of biomass as substitutes for wood & charcoal BME

9. 2. Investment opportunities 2.1 Wind Energy Lac Azuéï 10 km from P-au-P grid; 50 MW potential wind speeds : 5 to 7 m/s. Northern Haiti Near Cap-Haitien grid; 2 MW potential wind speed : 5 to 6 m/s. The preliminary study is being executed by 3E, a Belgian firm. Feasibility studies will be undertaken next. BME

11. Small PV rural solar projectsFor lighting, pumping, seafood and vaccine conservation BME

12. The energy market is the second largest in Haiti after the food market. There are already good examples of successful public-private partnerships in the Haitian Energy Sector, where the Government has committed to buying all the power produced for 5 to 15 years: SOGENER, HAYTRAC, E-POWER 3. Conclusions BME

13. 3. Conclusions The Government of the Republic of Haiti has also committing to the following actions : Elaboration and submission to the vote of Parliament a bill for the creation of the enabling framework for the acceleration of the use of renewable energy and the associated technologies ; Implementation of various forms of incentive mechanisms for the promotion of private sector investment in renewable energy (production and deployment); BME

14. 3. Conclusions Pursuing actions related to the development of biofuels, in particular: feasibility studies, R&D and the reinforcement of Public-Private partnerships; Carrying out a public awareness campaign for renewable energy, utilizing instruments designed to inform and motivate. HAITI IS WORKING HARD TO MAKE THE ENERGY SECTOR A GROWING AND SUSTAINABLE SECTOR BME

15. THANK YOU Dieuseul ANGLADE, Ing. Directeur General Bureau des Mines et de l’Énergie Email : dsanglade@yahoo.com Web site: www.bme.gouv.ht BME

16. Rolando Gonzalez-Bunster IDB International Business Meeting Investment in Wind Power Generation from an International Investor’s Perspective International Business Meeting, Port-au-Prince, 1-2 October, 2009 BasicEnergy

17. Economic and Commercial Aspects Country’s political situation should be stable and should present macroeconomic growth in the short term. Payment risk needs to be minimal Capital for these projects migrates very easily. If too much risk is perceived in a certain country and/or market, investors will identify alternate places to deploy their capital and develop similar projects where less risk is perceived. Long Term (15-20 yr) Power Purchase Agreements (“PPAs”) are a must to secure financing. Involvement of multilateral funding is highly desirable. Commercial financing in developing countries tends to be very short term with high interest rates which limits the possibilities to develop capital-intensive projects like wind power projects. Financing sources like IDB play a significant role in promoting these projects in developing countries. BasicEnergy

18. Site Selection Initial site selection is a very methodical and technical exercise. Once a site is selected, significant time and resources need to be dedicated to research its feasibility. Wind atlases which contain macro wind measurements are not enough (these only provide general guidelines). Site-specific towers need to be erected in order to measure wind behavior for at least one (1) year. For financing purposes, these site-specific measuring towers need to be measure wind speeds at least 2/3rds the height of the expected hub height of the wind turbines (as high as 100+ meters). These measurements need to be validated by independent third parties An investor will typically invest in securing the site and purchasing wind turbines once the site is validated by site-specific wind measurements BasicEnergy

19. Permitting Too much bureaucracy hinders project development. In countries where wind projects have not been developed, authorities are typically hesitant to fast-track permitting - this creates a barrier against developments. Other countries are competing for these projects and are willing to have more streamlined permitting processes. Permitting is required for financing, hence if the permitting process is not clear and streamlined, achieving financing can become challenging. A single point permitting window is highly desirable BasicEnergy

20. Technical and Construction Aspects Available offloading ports are one of the early items that need to be identified when making an investment decision. The lack of proper infrastructure to offload the equipment from the ships could easily eliminate the chance for a successful project. Access to site from to the unloading point to the each of the towers’ location is also an important task that needs to be performed early on in the investment decision process. If too much investment is required due to: 1) poor road conditions; 2) tight curves that don’t allow blade transportation; or 3) Mountainous terrain; then project feasibility can be jeopardized. Access to grid as close to the site as possible. A long transmission line can increase project cost significantly and threaten the project’s feasibility. Terrain profile can influence balance of plant costs BasicEnergy

21. Carbon Credits Although the variable costs of wind projects are minimal, the construction aspect is very capital-intensive. As such, power prices need to be high enough to repay the financing and allow for an acceptable return to the investor. Energy prices are typically not enough to allow for this. To solve this issue, carbon credits are one of the few lifelines to make projects feasible. The current Clean Development Mechanism (CDM) expires 2012. Difficult to predict carbon credit impact on a project’s economics post 2012. A wind project in Haiti would displace Diesel (no. 2) generation – this is a “cleaner” fuel than Coal or Heavy Fuel Oil which results in less carbon credits than the same project could generate in other countries with a “dirtier” energy matrix. BasicEnergy

22. Thank You! Rolando Gonzales Bunster, Basic Energy BasicEnergy

23. Prospects for Jatrophacurcas cultivation in Haiti CHIBAS International Business Meeting, Port-au-Prince, 1-2 October, 2009 CHIBAS

24. Why Jatropha? Haiti presently imports over twice as much diesel fuel as gasoline (ethanol is a substitute of gasoline) Haiti heavily depends on diesel for the production of electricity Feedstock for ethanol production would compete for the best arable land; which is limited Ethanol would have a relatively small local market Oil processing and production of bio-diesel is scalable Plant oil can be used directly (for local electric power generation, mills, irrigation, and small industry) And Jatropha is potentially a multipurpose crop (reforestation & restoration of degraded land, biodiesel, SVO, charcoal briquettes, high protein animal feed and honey) CHIBAS

25. Energy matrix (Market) > USD 350 M * % of energy mix (market) Tons of Oil Equivalent > USD 150 M > USD 60 M CHIBAS The market for Biodiesel * Most of the wood is not sold on the market

26. Land availability for Jatropha How much land can be usedto grow Jatropha ? Expected yields ? What are the profits from growing Jatropha ? Mapping the risks (red): Land use, environment, areas suitable for food crops, other socio-economic risks, etc… Land use map CHIBAS

27. Land availability for Jatropha In green: area where you can grow Jatropha with limiting the negative impacts. A: >800,000 ha B: >500,000 ha A B There is enough land to meet Haiti’s diesel market! CHIBAS

29. High protein animal feed550,000 ton (165 M USD)

30. Honey12,000 ton (36 M USD)

31. Oil & Biodiesel (liquid biofuels)100 million gallons (280 M USD)

32. Charcoal briquettes200,000 ton (60 M USD)

33. Honey12,000 ton (36 M USD) CHIBAS

34. Working with small holdersMaximizing profit along the value chain Integrate small holders to the Jatropha value chainThere is an opportunity to develop a market chain integrating small holders and producers; one that is profitable to ALL the actors of the value chain (IDB market study) “LwilAgogo” – building strategic alliances along the value chainProfitable businesses integrating the small holders and producers CHIBAS

35. CHIBAS at the service of the local agro-industry CHIBAS will be improving, releasing and promoting the use of improved Jatropha varieties as multipurpose crops (food/feed and energy); CHIBAS is a technical center to serve the farmers and the agribusiness sector in getting access to the best and most adequate technology and the best agricultural practices; CHIBAS realizes feasibility studies to establish plans for the formulation of project designs (or projects) and investment strategies (including a complete sustainable and profitable value market chain assessment) maximizing incomes for the farmers and the local communities. CHIBAS

36. Thank You! Gael Pressoir, CHIBAS, ExecutiveDirector Geneticist & Plant Breeder gael.pressoir@chibas-bioenergy.org Skype: gael_pressoir Phone: +509 3465 0449 CHIBAS

37. Can the biodiesel valuechainbeanopportunityforPrivate Sector Investments in Haiti? Source: Biodiesel Value Chain Feasibility Study for Haiti – IDB and USAID/DEED International Business Meeting, Port-au-Prince, 1-2 October, 2009 BID & USAID-DEED

38. The study has considered 3 lines of business FARM BUSINESS JATROPHA PRODUCTION CENTER (JPC) BIODIESEL Jatropha pressing Machine to press jatropha Chemical plant Cake Oil Solid fuel-pellet IDB & USAID-DEED

39. The main products have been considered FARM JATROPHA PRODUCTION CENTER BIODIESEL INDUSTRY GENETICR&D S E E D S Notes: Final products considered in the study Final products subject to more investigation but with potential % Shown as % of dry fruit. IDB & USAID-DEED

43. Regulation & Public Investments

44. R&D best crops

45. Focus of development actors: arid/semi-arid lands IDB & USAID-DEED

46. Income/ ha1 = $229 65,000 ha 700 ha 6,500 ha Except for the small scale biodiesel plant, the three businesses present NPV positive in all scenarios Variation of NPVs according to oil prices and jatropha land productivity Farm business: NPV/ ha Jatropha Production Center business NPV/ JPC Biodiesel business: NPV/ industrial plant 1 Income in fifth year Asumption: Diesel pumpprice in Haiti: $2,31 IDB & USAID-DEED

48. Oilprice (JPC business): 50% diesel price

49. Jatrophadryfruit (Farmbusiness): 10% oilprice

50. JPC businessincludes pellets business($US / gal) IDB & USAID-DEED

51. $1000-1150/ha 238 2210 22100 Jobs 35 195 260 3250 3250 2600 $447/ha Salary Profits 65,000 ha 700 ha 6,500 ha The economic impact in terms of development of each business is also significant in all scenarios analyzed Farm business: Income/ ha Jatropha Production Center business Income/ ha Biodiesel business: Income / industrial plant IDB & USAID-DEED

53. 184,000-203,000 jobs(170,000 approximately on the farms)

55. Replace the entire charcoal market ($320M)

57. arid or semi-arid land

58. can possibly be a transitory and complimentary culture

59. efforts both focused and at a national scale(1) From the fifth years and on IDB & USAID-DEED

60. Thank You! Eduardo Almeida, BID IDB & USAID-DEED

61. Eucalyptus Project for Biomass Production International Business Meeting, Port-au-Prince, 1-2 October, 2009 FGV - BID

62. Methodology Agroclimatic Zoning LandCapability FGV - BID

63. Phase 1 – Land Suitability Eucalyptus FGV - BID

64. Eucalyptus in the World Source: ABRAF, 2007 FGV - BID

65. Haiti Energy Matrix Area Covered by Forest: 3,8% Source: IEA. FGV - BID

66. Biomass Project Manufacturing Bricket Firewood Stove FGV - BID

67. Process of Forest Production 18 month FGV - BID

68. Forestry Project FGV - BID

69. Forestry Project Total area: 6.000ha – 1.000ha per year Early planting First harvest FGV - BID

70. Biomass Project FGV - BID

71. Total Investments per unit of 1.000ha, USD FGV - BID

72. ANOTHER ALTERNATIVE OF BIOMASS: ELEPHANT GRASS Production cost of elephant grass= USD 20,00/t Planting and harvesting in the same year FGV - BID

73. Thank You! Cleber Lima Guarany cleber.guarany@fgv.br FGV - BID

74. The Biodiesel Haiti project International Business Meeting, Port-au-Prince, 1-2 October, 2009 Biocarburants d’Haiti, SA

76. Major stakeholders: 4 local entrepreneurs: Reynold Roy, Reginald Noel, Georges Garnier, PascaleOriol

77. Paid up capital: us $ 120,000

78. Present activity: production of biodiesel on an experimental basis out of used vegetable oil collected from local restaurants

79. Current production: 500 gal /month sold to individuals Biocarburants d’Haiti, SA

80. What do we want to do ? Based on experience acquired over the past 2 years: Transform current activity into a biodiesel production project out of jatropha oil Biocarburants d’Haiti, SA

82. Phase 2 : encourage small farmers to participate in a jatropha plantation program (with the help of winner project usaid) Incentives will include: free seeds from our nurseries, technical assistance and a guaranteed purchase agreement at a pre approved price Biocarburants d’Haiti, SA

83. Our production Goal: 1 Million gallons of biodiesel Phase 1: 300 gal/ha/year for a total production : 360,000 gal of biodiesel Expected time to full output : 3 years Phase 2: 640 000 gal out of jatropha plantations own by small farmers Expected time to full output: 3 years from end of phase 1 Biocarburants d’Haiti, SA

84. Target Market Private industries with electricity generation capacity (generators) currently 22 % of Haiti’ s diesel consumption or 25 M gal / year Biocarburants d’Haiti, SA

86. At today’s price, sales at end of phase 2 will amount : $ 2.5 millions

87. Expected net profit on sales : 21 % Biocarburants d’Haiti, SA

88. What is the estimated investment? 2,8 Millions us $ for plant and related equipment as well as plantation program Biocarburants d’Haiti, SA

90. Equity financing

91. Assistance in securing bank financing

92. Technical, logistical and managerial support once project launched Biocarburants d’Haiti, SA

93. Thank You! Reginald Noel, Biocarburants d’Haiti SA, biodieselhaiti@hotmail.com Biocarburants d’Haiti, SA

94. WINECO-TEVASAEthanol plant International Business Meeting, Port-au-Prince, 1-2 October, 2009 TEVASA

95. Terminal Varreux WHARF SPECIFICATION DRAFT 11.0 METERS FOR WHARF 9.8M FOR TANKERS LOA 190 METERS MAX FENDERS YOKOHAMA LIST OF TANKS 46,000 BBLS 16 46,000 BBLS, WITH FLOATING ROOF 2 25,000 BBLS 2 17,500 BBLS 1 8,300 BBLS 4 TEVASA

96. Caribbean Basin Initiative (CBI) TEVASA Ethanol produced/processed in beneficiary countries are permitted to enter the US duty- free Ethanol has to originate from bio-mass sources and has to have undergone a full transformation process in the CBI country Tax saving of US 54 cents a gallon

97. 30 million gal.year dehydration plant TEVASA In full operation by mid 2010 Expansion possible to 60 M gal Corresponding tanks and infrastructure additions to accommodate the increased volume are planned

98. 30 million gal.year dehydration plant TEVASA In full operation by mid 2010 Expansion possible to 60 M gal Corresponding tanks and infrastructure additions to accommodate the increased volume are planned

99. Processing ethanol for the US market TEVASA Final stages of negotiations Ethanol will originate from Brazil and after processing in Haiti it will be exported to US for further blending with gasoline

100. Plant Layout TEVASA

101. Thank You! Maulik Radia, TEVASA, Managing Director maulikradia@yahoo.com TEVASA

102. Renewable Energy For a Better World Transforming Haïti’s energy challenges into wealth and job creating opportunities International Business Meeting, Port-au-Prince, 1-2 October, 2009 ENERSA

104. Small, young,… but the FASTEST GROWING solar company in the country (700% growth)

105. Industry leader in number of installations (in just over 2 years of operations)

106. From 800 sq ft, moving to new 10,000 sq ft facility

107. Widest covered geographic area

108. 58 towns & remote villages… and counting

110. Trained from scratch & employed so far 18 solar technicians (almost all of them youth from Cité Soleil)

111. Investing in our Human Resources

112. Investing in environmental projects

113. Supporting youth initiatives ENERSA

115. Reducing the country’s dependence on imported fossil fuel

116. Creating jobsSo, we’re in the business of Socioeconomic Development has an OVERALL installed capacity ofabout360 MW while Haïti Germany has 10 times that, just in solar PV - 1,500 MW PV installed in 2008 alone Spain Installed 1,800 Mw PV in 2008 ENERSA

117. MANUFACTURING as a wealth creating option SOLAR STREET LIGHT MARKET VALUE ADDED CHAIN PV MARKET VALUE ADDED CHAIN Si- Feedstock Wafer Si- Feedstock Cell Wafer Module Cell Manufacturing Division Solar appliance Module BOS BOS Installation Division Installation Installation 43% 59% ENERSA

119. Radio

121. Radio

123. 60W

124. 120WCHAJMAN Small Business Mobile phone Charging station ENERSA

125. OTHER PRODUCTS & SERVICES MULTI Kw INSTALLATIONS Village Mini Central Solar Plant STRONG R&D DEPARTMENT Hospital 4 main focus: Security Cost User friendly Install. friendly Custom design for specific projects Coffee Export Coop Solar Irrigation Pump ENERSA

127. hurricane proof

128. 12h of light per night

129. Fully automatic (ON/OFF)

130. 3 days autonomy

131. 25% cheaper than imported

132. Designed in Haïti

133. Solar panel made in Haïti

134. LED light bulb made in Haïti

135. Pole made in Haïti ENERSA

137. OFF-Grid :

138. Residential (SHS)

139. Commercial / Institutional

140. Stand-Alone Utilities ECONOMICALLY VIABLE MARKET SEGMENTS INDUSTRY STRUCTURE FLOW CHART Government Local component supplier Mezzanine Financing Inventory Loan Institutions Installation Division Foreign component supplier Manufacturing Division Micro Business Household Consumer Other local installers Market segments financing mechanism (credit / loan) $ $$$ ENERSA

141. 5% 15%-20% 20% - 25% 50 % ( NOTE ABLE TO AFFORD ) Opening solar market through proper financing mechanism SOLAR HOME SYSTEM MARKET POTENTIAL ECONOMICALLY VIABLE 50% penetration potential with proper financing 375,000 HH in Haïti $ 175 M market 200 M HH worldwide Cash able 1 – 3 year credit 3 - 5 year credit Need subsidy Solar needs subsidies ? No… Not for all market segments ENERSA

142. PROFITABLE solar company, but… Renewable Energy For a Better World Our Greatest Achievement? Changing people’s lives NO VILLAGE TOO REMOTE… COUNTING ON YOUR SUPPORT THANK YOU ENERSA