BiofuelsSustainable mobility

Turning Ideas into Reality.

MAN Ferrostaal

2

InsightThe future belongs to biofuels

Between now and 2030 the worldwide consumption of fuels for

transportation will increase rapidly. 680 billion litres of fuel will then

be required additionally each year. Biofuels will cover one-third of

this additional requirement.

The biofuel market offers great potential for the industrial agricultural

sector. Above all, sugar cane, soy, and, as progress is made, lignocel-

lulose from biomass will permit biofuels to be manufactured on an

economically attractive basis. Bringing together the best partners for

a project is essential for the successful production of biofuels.

MAN Ferrostaal puts this Best Partner principle into practice. We

develop biofuel projects which are financially viable and profitable

in the long term. With this in mind, we integrate the relevant market

participants as partners in a project company. As an experienced

general contractor, we also ensure best practice construction and

operation of the plants.

3

How do you think biofuels will develop on the

market?

Striving for security of supply, efforts to protect the

environment, and the great economic potential for

the agricultural sector are all factors which are rap-

idly boosting the market. Biofuels constitute a global

business and will in future corner a considerable share

of the fuel market. But this does not mean that every

plant will produce biofuel economically. One prerequi-

site here is that the technology used in the plant works

efficiently. The other is that all the links in the value

chain – from the raw material to the investment in

the plant through to acceptance of the biofuel which

is produced – are dovetailed as effectively as possible.

Consequently we have conducted an intensive analy-

sis of over 150 countries around the world. We know

where projects for biodiesel and bioethanol which will

be economically successful can be implemented with-

out subsidies. Furthermore, not every biofuel works ac-

cording to the same business model at every location.

Intelligent project development and financing, plus

bringing together the best partners are decisive crite-

ria for success.

“As project developer we bring together the best partners for each

project. In this way we tailor each project ideally to the local condi-

tions: from the business model to the financing, technologies and

components through to project implementation.”

A large number of companies which produce bio-

fuels from agricultural products are active on the

market. What distinguishes MAN Ferrostaal from

the competition?

In contrast to technology providers, generally we do

not have products or processes of our own, nor are we

tied to individual manufacturers. That is our advan-

tage: as partner we develop economically successful

and attractive products for our customers. Together

with the agricultural industry, investors, financial insti-

tutions and customers we develop the entire project –

from the feasibility study through to the production

and marketing of biofuels.

What benefits does this bring for your partners and

customers?

Customized project development, our role as general

contractor and, in selected cases, the investment of our

own capital in the project company are an expression

of our strong commitment to the overall success of a

project. For us, partnership is characterized by mutual

trust and common values. It is therefore considerably

more worthwhile for our customers to cooperate with

MAN FerrostaalBest partner for biofuels

4

Dr. Ing. Stephan Reimelt, Member of the Executive Board at MAN Ferrostaal responsible for Biofuels, sees enormous growth potential in the market for biofuels.

us on the basis of our Best-Partner Business Model than

with the cheapest provider in a request for quotations.

MAN Ferrostaal has been active in the biofuels sec-

tor for many years. What special know-how does the

company have?

MAN Ferrostaal has very well-trained personnel and

know-how in the crucial areas. Project development,

project management and project financing are our

fundamental success factors. We have implemented

projects worth several hundred million US dollars in

other business areas, for example in the petrochemical

industry. With biofuels we also offer other parts of the

value chain in addition to the customized solutions

when required. We are our own engineering partner

here and, in the case of edible oil plants, we also work

with our own processes. However, the most important

aspect in all cases is the economic concept. This has to

be right in order for plants to operate successfully on a

long-term basis.

And what competence does MAN Ferrostaal provide

on site?

Our decades of business activities mean that we are at

home in our customers’ markets in South America, Asia

and Eastern Europe. Our staff in the various countries

know the markets like the backs of their hands and are

very efficiently networked there. In many regions of the

world MAN Ferrostaal stands for reliability, sustainabil-

ity and trust. This is a major advantage when it comes

to finding the right partners for a project.

Despite the euphoria regarding opportunities and

growth, biofuels are increasingly becoming the subject

of public criticism. What are your thoughts on that?

This is a point which we take very seriously. Our strate-

gy is to be environmentally friendly: our plants must

not result in competition with foodstuffs, destruction

of rainforests or a burden on the environment. We are

constantly selecting technological ideas and testing

their feasibility on the basis of these premises. For ex-

ample, in terms of the biofuels derived from energy

plants, we are well prepared for the second generation

of biofuels.

5

BiofuelsA market with a future

Exploding prices for crude oil, pollutant emissions, climate change –

the topic of alternative energy has become a focus of attention around

the world. Because biofuels promise two things: energy security, and

a reduction of CO2 emissions, which are the main cause of global

warming.

Alternative energies are dominating political discus-

sion. This in turn boosts development on the biofu-

els market. The Kyoto Protocol is the United Nations’

general agreement on climate change and envisages

the industrialized countries reducing their annual

emissions of greenhouse gases by an average of 5.2%

by 2012. Similar targets exist in the European Union:

by 2020, biofuels should account for 10% of the fuels

used for transportation. China and India even want to

replace 20% of the crude oil they require with renewa-

bles by 2020.

Biofuels are in demand – increasingly so as other

countries will jump on the bandwagon. The demand

for alternative sources of energy will skyrocket in the

future. Forecasts estimate that in 2020 15% of global

fuel requirements will be covered by biofuels. In fig-

ures, this amounts to 300 billion litres per year, a vol-

ume which will require a large number of industrial

plants to be constructed.

6

The biofuels market is growing – driven by climate change, the pursuit of energy security and the significant commercial potential for the agricultural sector.

Regions

US EU

Brazil/Latin

America ChinaDrivers

Less importantImportant

Farmerrevenues

Energysecurity

Environment

Fundamental growth drivers

South East Asia CIS

© McKinsey

Biofuels are a market with a future: some 40 countries want to use alternative fuels for transportation in the future.

At the same time, new developments are revealing a

wide range of opportunities: new technologies will

extend the range of plants cultivated in the future.

Bioethanol from wood or waste products – that is al-

ready possible today. Progressive development will

make biofuels better in the future, continuously re-

duce costs and thus ensure that the fuels become even

more competitive.

Biofuels are a market with a future – for technology

providers and suppliers of plant components, but

above all for the agricultural sector. It offers excel-

lent opportunities for industrial agriculture in South

America, Asia and Eastern Europe.

7

The demand for alternative sources of energy will skyrocket in the future. Forecasts estimate that in 2020 15% of global fuel requirements will be covered by biofuels.

Transport fuel market/Billion litres ¹ Compound Annual Growth Rate

2,360

2,660

300

1,940

1,980

40

2005 2020base case

Biofuels

Fossil fuels

680

420

260

· CAGR¹ of 15%; 1/3 of total growth

· More than oil from Saudi Arabia

· Additional 1,000 – 1,500 plants required

© McKinsey

Agricultural sectorOpportunity

Excellent commercial opportunities are offered for the agricultur-

al sector. Biofuels are booming. The high costs for crude oil, di-

minishing raw materials, mandatory blending quotas specified by

governments – future scenarios already assume that a significant

proportion of the energy we will use for transportation and mobility

in the future will come from biofuels.

New markets are emerging: in order to satisfy this enor-

mous demand, it will in future be necessary to produce

several billion litres of biofuel each year. Traditional

markets will be expanded by new future markets – the

agricultural sector will become an important player in

the energy industry.

In this context great potential is forecast above all

for the biofuels of the second generation. In contrast

to the first generation, it will be possible to integrate

whole plants into the production process for these

second-generation biofuels. Energy plants will play

an important role. MAN Ferrostaal is monitoring and

checking technological developments so that it will be

able to master the challenges of the future. Because

the second generation promises greater returns with

lower land requirements and does not compete with

food production.

From the initial idea, MAN Ferrostaal offers its cus-

tomers in the agricultural sector intelligent project

development in which every detail of the production

of biofuels is carefully considered from the outset. In

addition, we combine project development with the

services of an experienced plant constructor and the

financial strength of a large industrial company. We are

therefore the ideal partner for the agricultural sector

where biofuel projects are concerned – be it bioethanol,

biodiesel, biomass-to-liquid fuels or bioethanol from

lignocellulose.

8

30

160

25

20

15

10

0

Biofuels: risk versus return

90 150140130120110100

Return (Percent/IRR)

Distributor

Farmer

Producer

Producer with feedstock

Producer with distribution

Fully integrated producer

Advantage for fully integrated producer: integration of ethanol and feedstock production improves returns while reducing volatility.

Risk Percent (standard deviation/mean) © McKinsey

9

Excellent prospects for the agricultural sector: in the future, a significant proportion of the energy we use for transportation and mobility will come from biofuels.

MAN Ferrostaal will establish partnerships for entering the biofuel market¹ Operation and Maintenance; ² Engineering Procurement Construction; ³ Utilities and Operation; 4 Special Purpose Company

EPC2

E, P C U/O3

Local feedstock provider

MAN Ferrostaal(minority

share)

Special Purpose Company

Offtaker Strategic investor

Local feedstock provider

· Provides land and conducts operations (agro, conversion)

· Gets access to finance/offset

· Provides equity and integrates project

· Provides EPC service

MAN Ferrostaal

· Operation· Provides maintenance

Offtaker

O&M¹

StrategicInvestor

· Provides the en-trepreneurial skills and representation

· Offering offtake agreement

· Outsource project development to partners

Major partners in biofuel production will join in a special purpose company

7 steps of project development

Identify and secure feedstock

Sign confidentiality agreement with all major partners (core development)

Generate project development agreement

Conduct feasibility study technically + commercially (active development)

Structure SPC4 and involve financing partners early in evaluation process

Define timelines, milestones and budget

Financial close

The high yields and the good greenhouse gas balance make bioethanol produced from sugar cane a competitively viable alternative to fuel from fossil energy sources.

Bioethanol

The need to produce biofuels is greater than ever.

Bioethanol provides an alternative to fuel from fos-

sil energy sources. And it has one major advantage:

in contrast to fossil fuel, the raw material will not run

out because it grows again in fields and meadows.

Bioethanol can be produced from various raw mate-

rials which contain starch or sugar. Cereals, cassava,

sugar beet and, above all, sugar cane are suitable for

manufacturing bioethanol. While the juice of the sug-

ary plants is fermented directly, the starch in cereals

must first be disintegrated by enzymes to convert it

into sugar, which is then fermented to ethanol.

In the bioethanol sector MAN Ferrostaal concentrates

primarily on sugar cane and sweet sorghum. These

are raw materials which have decisive competitive ad-

vantages over the starch-containing crops: high yields

per hectare, a good greenhouse gas balance and a large

degree of independence from the food markets make

it a competitively viable alternative to gas from fossil

energy sources – totally without state subsidies.

10

Electrical power30 MW

500 t/hSugar cane

Bioethanol from sugar cane

C12 H22 O11 + H2O C2 H5 OH

CO2 for assimilation

CO233.5 t/h

Bioethanol35.2 t/h

Sugar cane facilitates economically attractive bioethanol production.

Today it is already possible to blend 5 to 10% of bioeth-

anol into motor fuel. In important markets such as Eu-

rope, the USA and Brazil there is already a statutory ob-

ligation to blend fuels. It is to be expected that this will

soon be the case in many countries around the world.

The markets on which we are concentrating with bioeth-

anol – in addition to Brazil and South East Asia – are

predominantly countries which satisfy the economic

and climatic conditions for producing bioethanol. We

have been utilizing our competencies successfully in

these core markets for over 60 years. Our profound

knowledge of the world markets enables us to react to

changing market conditions and emerging sales and

purchasing streams – as project manager, financial ex-

pert and general contractor.

Sugar cane bioethanol plantThe sugary juice of sugar cane is extracted, clarified and fermented using yeast. This produces alcohol. This alcohol is then concentrated by means of distillation, rectification and

dehydration. The energy required for the process line is obtainend by combustion from the fibrous residue, the bagasse. The special feature: most of the electrical power generated here can be fed into public grids.

11

Fermentation

Shredder

Water

Steam generator

Bagasse

Vinasse

Technicalalcohol

Steam

Juice extraction

Turbine

Yeast separation

DehydrationConcentration

BioethanolC2H5OH

Electrical power

Sugar cane

Sweet sorghum

Filtration

Mud

Production of biodiesel has shot up in recent years. Blending quotas and record prices for fossil oil will continue to strengthen thisupward trend in the future.

12

Biodiesel

Production of biodiesel has shot up in recent years –

and is still increasing. According to forecasts, sales of

biodiesel will rise to a good ten million tonnes per year

by 2010 in the European Union alone. Statutory blend-

ing quotas and drastically rising costs for fossil fuels

will continue to strengthen this upward trend in the

future.

Biodiesel can be produced from oils from a wide variety

of plants, for example rapeseed, soybeans and oil palm,

by means of a simple chemical reaction. Because of

its excellent combustion properties – which can com-

pete with conventional diesel – biodiesel has long been

established on the market. In the biodiesel segment

MAN Ferrostaal is concentrating primarily on the raw

materials rapeseed and soy. These two plants promise

the best cost and greenhouse gas balance compared to

other raw materials. Together with its partners, MAN

Ferrostaal has its own processes for producing biodie-

sel with a worldwide licence for using what is known as

the CD process (Connemann process). This process has

already been accepted on a broad front.

Biodiesel from plant oil

108 kg methanol

Biodiesel plant

Multifeed stock: rapeseed oil, soy oil, palm oil

(example: rapeseed oil/1,030 kg)

1,000 kgBiodiesel

Refining1,000 kg Edible oil

C3H5 (CO2 R)3 + 3 CH3OH C3H5(OH)3 + 3 CH3CO2RCatalyst

103 kgPharma glycerin

Highly efficient processes allow MAN Ferrostaal to produce edible oil or biodiesel from a variety of starting materials. In the preparation of biodiesel, the addition of methanol also produces pharma glycerine.

13

Reception/Store

Edible oil

Methanol & Catalyst

Biodiesel

ResidueEvaporation

Pharma glycerin

Methanol recovery

Distillation of glycerin

Pressing/Extraction

Refining

In addition to having the technological know-how, as

project developer and general contractor we also or-

ganize the planning, financing, construction and com-

missioning of the plants.

“Turning Ideas into Reality” for us means actively

shaping the future. By working closely with specialists,

we are able to react quickly to new developments and

offer customized solutions – this will also apply for

the raw materials of the future: jatropha, for instance,

a plant which is extremely easy to cultivate and is not

suitable for human consumption.

Possible components of a complete plant:Starting with the storage of rapeseed and soybeans, the subsequent seed preparation and oil refining. With this type of biodiesel production, the structure of the oil involved must initially be modified by means of a simple chemical reaction. In the transesterification methanol is added and the conversion

to methyl ester takes place. A catalyst enables glycerin and methanol to exchange places, resulting in individual fatty acid methyl ester chains and glycerin. In subsequent cleaning steps, the surplus methanol is removed again by means of rectification and reintegrated into the process.

Standard sizes of our biodiesel plants according to the CD process: 280, 400, 600, 800 tonnes per day. The plants can be set up as multifeed stock plants so that they are able to react flexibly to raw materials availability and to the fuel market.

A generation with potential for the future: bioethanol from straw, wood and agricultural waste. The advantage: the wider range of usable biomass promises high fuel yields.

Bioethanol from lignocellulose (LC)

Energy from waste products – the second generation

is more than a vision. Today it is already possible to

produce high-quality fuels from wood, organic waste

and straw. The word lignocellulose stands for a new di-

mension of biofuels.

When bioethanol is produced from lignocellulose, bio-

mass is broken down into fermentable C5/C6 sugars

and converted into bioethanol. The advantage: almost

every solid biomass can be used for this suitable pro-

cess, and consequently the range of plants which can

be cultivated increases enormously. At the same time,

the areas needed for cultivation are reduced, because

the entire plant is used for this production process –

not just its starch or its sugar. Bioethanol from ligno-

cellulose today already promises extremely high fuel

yields while being largely CO2-neutral. Thereby the

raw materials are available in large quantities and at

low cost. In addition, this energy source does not com-

pete directly with the food chain.

14

Bioethanol from lignocellulose (LC)

The future – but not yet ready for the market: MAN

Ferrostaal is cooperating closely with knowledge pro-

viders and specialists in order to let this vision be-

come reality.

Lignocellulose Ethanol

EnergyLignin

CO2

C5/C6 sugar fermentation

C6 H12 O6 + C5 H10 O5 C2 H5 OH

CO2 for assimilation

The raw materials for producing BtL fuels are available in large quantities – waste wood can also be used.

BIOMASSBiomass-to-Liquid (BtL)

A generation with potential for the future: biomass-to-

liquid fuels promise high returns and CO2 neutrality.

Ideal prospects for large-scale production. Lignocellu-

lose provides the basis for this fuel. Straw, wood, energy

crops, agricultural waste – nearly all sorts of solid bio-

mass in the world can be considered for the production

of BtL biofuel. To produce BtL biofuel, biomass is con-

verted into synthesis gas, which is subsequently proc-

essed into synthetic biofuels. Just as in the production of

bioethanol from lignocellulose, the entire plant is used

for BtL biofuels. This increases yields, while at the same

time reducing the land that needs to be cultivated.

BtL fuels also have a very special property: their qual-

ity is even better than that of fossil fuels. They excel

through significantly lower CO2 emissions, zero emis-

sions of particulare matter, low NOx emissions and an

adjustable product quality (octane and cetane number).

As a result they can be used pure or as a blend in ve-

hicles without the engine having to be modified. MAN

Ferrostaal is working to bring the second generation

onto the biofuel market.

15

BIOFUEL

Biomass Line

Main BtL Process Line

The raw materials for producing BtL fuels are available in large quantities – waste wood can also be used. BtL Biofuels are widely accepted by the mineral oil industry.

Production of fuels on the basis of biomass-to-Liquid (BtL)Biomass-to-liquid means highly efficient thermochemical conversion of biomass into automative fuels of superior quality.

Gasification

Syngas preparation

Biomass logistics

Storage

Biomass preparation

Fuel synthesis

Product storage

Fuel blending & distribution

Energy has become the central topic in the world econ-

omy. The Kyoto Protocol, the United Nations’ general

agreement on climate change, envisages the industri-

alized countries reducing their annual emissions of

greenhouse gases by an average of 5.2% by 2012. Other

countries are following suit – because every gram less

of greenhouse gas which is pumped into the earth’s

atmosphere helps to protect our environment. Biofu-

els make a contribution here through their special cha-

racteristic: when they are used to produce energy, they

only release as much carbon dioxide as was bound

while the plant grew.

Energy industrySustainability

Biofuels have great potential to reduce CO2 emissions worldwide.

MAN Ferrostaal is playing its part here by developing biofuel projects.

The topic of sustainability is at the focus of our biofuel activities. This

means that our plants must not result in competition with foodstuffs,

the destruction of rainforests or a burden on the environment.

16

Fuel mix in Europe: Vision 2030

Less than 40 percent of fuel will be based on oil.

Others (biodiesel, bioethanol)

Sunfuel based on biomass

Oil based< 500 ppm sulphur

Oil based< 10 ppm sulphur

Synfuel based on natural gas

Regenerative hydrogen ~4%

~35%

~38%

~23%

10 20 30years

In producing biofuels we only use raw material from

areas for which no rainforest was destroyed. Here we

support efforts to introduce certificates that verify

that no damage has been done to the environment and

that are valid worldwide. Furthermore, we are concen-

trating on raw materials which are not taken directly

from the food production chain. In the bioethanol

segment this means predominantly sugar-based raw

materials, in particular sugar cane. In comparison to

other raw materials, sugar cane evinces an excellent

greenhouse gas balance and is fully competitive with

gasoline from fossil energy sources. With our focus on

Latin America and South East Asia, we are also concen-

trating on countries where sufficient agricultural land

is available to permit not only enough food to be pro-

duced but also to grow biomass for generating energy.

In the interests of the sustainable production of biofu-

els, MAN Ferrostaal also checks whether technological

ideas are feasible. As soon as the necessary technology

is available, we want to expand our range to include

biofuels of the second generation. Large-scale utili-

zation of waste products which do not compete with

food production will then be possible.

17

Energy worldwide: resources and consumption are spread unevenly around the world. Basically there are enough raw materials in the world to ensure the supply of food and energy.

Fuel versus foodThere is enough biomass in the world to supply not only enough food but also to permit the production of biofuels.

2005 2020 Million tons per year

Excess biomass available for biofuels, equals a penetration rate of ~ 50% of total liquid transportation fuels

5,000

800

500

800

2,100

Biomass and crops to satisfy demand for food and feed

2020

Demand Supply

Biofuels

Feed

Food 720

42090

1,230

1,300

3,700

© McKinsey

CO2 emissionsThe future belongs to the biofuels of the second generation: they promise high fuel yields while remaining largely CO2-neutral.

Biodiesel, palm oil – South East Asia

Biodiesel, soy oil – Brazil

Biodiesel, soy oil – USA

Biodiesel, rape oil – Europe

Diesel fuel

2nd generation EtOH¹

EtOH¹ sugar cane – Brazil

EtOH¹ corn – USA

EtOH¹ wheat – Europe

EtOH¹ sugar beet – Europe

Petrol

kg CO2 equivalents / GJ (Giga Joule)

Source: meó, partly derived from Biomass Sustainability Act(The values do not take into account any changes in land use)

¹ Ethanol

25.9

15

0 20 40 60 80 100

28.3

48.2

57.7

68.8

85

32.4

36.2

45.3

86.2

2 to

MAN FerrostaalComprehensive expertise – worldwide

The decades of experience as a general contractor for the con-

struction of large industrial plants all around the world mark out

MAN Ferrostaal as ideally suited to develop and build plants for the

production of biofuels. Our services cover the entire process, from

planning to financing to turnkey handover.

Development and financing

Our services start at an early stage – with the business

idea. We put the project on a solid basis with feasibil-

ity studies, market analyses, a business plan and the

search for strategic investors. In the contract phase

we do the preliminary work and devise strategies for

the central questions. We have technology providers

and engineering partners to assist us. In the financing

phase we develop a bespoke, efficient and transpar-

ent financing strategy. In selected cases we also get in-

volved financially.

Project management

MAN Ferrostaal generally takes on overall responsibil-

ity for a project, frequently as the general contractor

controlling the engineering, purchasing and construc-

tion of the plant – through to commissioning. Risk

management plays a central role here. Our project and

quality management is certified in accordance with in-

ternational standards. A partner-like relationship with

customers, suppliers and financial partners which is

based on transparency and trust is essential here.

Coordinating the partners

In some projects we bring together more than 100

partners. Our global sourcing is an important success

factor here. We cooperate with the world’s best suppli-

ers of material and services, thereby guaranteeing the

best possible cost and quality management. Our staff in

over 60 countries systematically monitor the regional

markets and thus support our global sourcing activities.

Precise knowledge of the creditworthiness and quality

of the local providers ensures a solid basis for selecting

the suppliers. As the general contractor we coordinate

the work of all these partners, thus ensuring the high

quality of the resulting products and services.

Integration of complex systems

Plants for producing biofuels are technically complex

products. As a partner-like service provider, we reduce

the complexity for our partners. The partnership does

not end with the handover of the turnkey plant – we also

take on responsibility for maintenance and service.

18

Formula for success: MAN Ferrostaal relies on a partner-like relationship with customers, suppliers and financial partners.

19

Approach

ProjectDevelopment

· Fair distribution of risks among partners· Realistic budget and schedule· Professional common risk management

Best Partner

MAN Ferrostaal offers an attractive business approach to partners.

Success on the world market with MAN Ferrostaal

For our customers our competencies are the key to

success. An example: our customer Methanol Hold-

ings Trinidad, Ltd. (MHTL), for whom we have already

constructed methanol and ammonia plants, has grown

to become number two for methanol on the world

market. Here, too, things started with a raw material

and an idea. MAN Ferrostaal developed this basis to-

gether with the customer, integrated the best partners

and technologies, and turned it into a success story. A

success story which we would also like to repeat with

our partners from the agricultural and energy sectors

by producing biofuels.

Our services at a glance:

· MAN Ferrostaal is an experienced and reliable part-

ner that can take over project development on behalf

of the customer. We offer this service for an all-inclu-

sive fee.

· MAN Ferrostaal contributes to the capital resources

for selected projects governed by conditions which

are agreed on individually with the customer.

· MAN Ferrostaal offers engineering, purchasing and

construction for a large number of different plant

types. As a successful general contractor we take on

responsibility for constructing turnkey plants.

Risks

Model

EPC Equity

Triple Value

· We have been building edible oil plants with capaci-

ties of between 40 and 800 tonnes per day for over 35

years. To date we have developed around 100 edible

oil plants – figures which speak for themselves. These

plants are spread throughout thirty countries around

the world – for example in Thailand, Germany, Brazil

and Russia.

20

MAN Ferrostaal is a worldwide provider of industrial solutions.

Competence is the key to success. We have been translating ideas

into successful projects for over 75 years, worldwide. We are linked

to many of our customers by a long-standing partnership. With our

project development we have supported them in forging new paths

along the entire value chain. As project manager we ensure that

plants are profitable on a long-term basis.

MAN FerrostaalTurning Ideas into Reality

Whether in South East Asia, South America, Europe or

the Middle East – our large projects in the biofuels in-

dustry and in other industrial sectors speak volumes

about our competencies – as project developer, financ-

ing expert and general contractor.

Selected references at a glance:

· We have already constructed methanol and ammo-

nia plants in Trinidad for our customer Methanol

Holdings Trinidad, Ltd. (MHTL), including the largest

methanol plant in the world. We are currently imple-

menting one of the largest orders in the history of our

company: the construction of a petrochemical plant

complex for producing ammonia, urea ammonium

nitrate and melamine.

· As the general contractor we are currently construct-

ing two turnkey biodiesel plants with an annual ca-

pacity of 100,000 and 200,000 tonnes.

Part of a biodiesel plant with a capacity of 100,000 t/a

20

21

Biodiesel plant, Poland

Project development and project management provided by MAN Ferrostaal: petrochemical plant in Trinidad.

· In Brazil we have completed the most modern blast

furnace in South America. This furnace has a daily

output of 7,800 tonnes of pig iron. MAN Ferrostaal

took over responsibility for all the financing for im-

ports, and also for handling financial aspects.

· We have implemented a turnkey pulp mill in Musi, In-

donesia. In addition to project development, our range

of services included engineering, purchasing and build-

ing the mill. This pulp mill has a capacity of 450,000

tonnes of elemental chlorine-free pulp per year.

· In Thailand we have built and placed in service a com-

pressor station for the Petroleum Authority of Thai-

land. This station is part of the 3,000 kilometre pipe-

line network which is used to distribute Thailand’s

own natural gas in the country.

· We were a member of a consortium which implement-

ed a turnkey refinery plant for ENAP, the national pe-

troleum company in Chile. Together with ENAP we de-

veloped a challenging project and financing concept.

MAN Ferrostaal Your partner for biofuels

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Preliminary Assessment-> MF Internal Process

Project Execution

YES

YES YES

YES

NO NO

NO NO

Active Develop-

ment

Project Development Approach by MAN Ferrostaal¹ Confidentiality agreement / Memorandum of Understanding (CA/MoU); ² Project Development Agreement (PDA); ³ Special Purpose Company (SPC)

Pre-Development GO / NO GODecision

Business Opportunity

ProjectIdea

CA / MoU¹(optional)

Signing of PDA²

Financial Close

Basic equirements to be checked:· Legal situation regarding per-missions

· Feedstock availability + localisation of site

· Overall plant concept· Preliminary financial analysis

Preparation of bankable feasibility study· Incorporation of SPC³, shareholding· Authorizations / Permissions· Finalizing of business plan (incl. investment plan, financial analysis etc.)

· Signing of all agreements· Involvement of financial arranger + in-house financial structuring

Recoupment of Development Costs· Third party costs· Reimbursable internal costs· Success fee

Concept Phase

Basic Principles of Joint Project Development:· Split of tasks & responsibilities· Schedule, budget, organisation· Mechanism for recoupment of

costs

Biofuels are a core business for us. We provide project development,

general contracting and project financing from a single source.

Combined with our Best-Partner Model we are therefore attractive

both for established market participants and new players. Together

with our partners we develop and implement projects – with solid

time and budget planning, professional risk management and com-

mercial success.

Your contacts at MAN Ferrostaal:

Headquarter

MAN Ferrostaal AG

Tel + 49-6722-501-455, Fax + 49-6722-501-654

Contact for bioethanol

Tel + 49-6722-501-231, Fax + 49-6722-501-654

Contact for biodiesel

Tel + 49-201-818-2751, Fax + 49-201-818-3987

Contact for BtL/lignocellulose

Tel +49-6722-501-601, Fax + 49-6722-501-654

Central and South America

MAN Ferrostaal do Brasil Comércio e Indústria Ltda.

Tel +55-11-5541-9877, Fax + 55-31-3299-0543

MAN Ferrostaal México S.A. de C.V.

Tel + 52-55-52423530, Fax + 52-55-55335908

South East Asia

P.T. MAN Ferrostaal Indonesia

Tel + 62-21-797-3356, Fax + 62-21-798-8018

MAN Ferrostaal Thailand Co., Ltd.

Tel + 662-652-8998, Fax + 662-652-8755

MAN Ferrostaal Asia Pacific Pte. Ltd.

Tel + 65-9674-64-97, Fax + 65-6756-1828

Biofuels market with low raw material prices

MAN Ferrostaal locations

MAN Ferrostaal biofuels competence centres

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MAN Ferrostaal is at home in over 60 countries around the world.

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General email contact for biofuels: biofuels@manferrostaal.com

MAN Ferrostaal AGHohenzollernstraße 2445128 Essen/GermanyPhone +49. 201. 818-01Fax +49. 201. 818-2822

www.manferrostaal.com