Wood chips loading program Searsport Maine

2. Maine Woods Biomass Exports, LLC 28 E. Main Street – Searsport, ME Arthur House – President 207-548-2118 Maine Woods Biomass Exports, LLC 28 E. Main Street – Searsport, ME Arthur House – President 207-548-2118

3. 40 Years in Business • Adjunct/Assistant Prof. Florida International University • Graduate Program: • Business Development/Marketing Strategy • Corporate Finance for Construction & Development • Adjunct Prof. Franklin Pierce/Notre Dame NH – Lynn U. FL • Undergraduate Programs: • Entrepreneurism and Marketing • Banking – Money & Finance • Education: • BS Business – Marketing/Math Focus Keene State College • MBA Marketing – International Focus New Hampshire Collage • Doctoral Studies – Marketing Nova Southeastern U • Hysenga School of Business

4. Maine Woods Biomass was Conceived Late in year of 2010 Maine Woods Biomass was Conceived Late in year of 2010 • Early interest in Biomass was spurred by: • Work in Haiti with Dr. Robert Bar – Penn State – Agrarian Project Jathropa • Start up of Jathropa would have been in Florida on Citrus Plantations • Citrus research yielded major business operation for EU/US Power feedstock • 170,000 Acres of dying, dead or repurposing of citrus trees • Citrus now harvested for GREC, INEOS, Other electric power generator firms • Export market for citrus died due to many reasons: • MC, • Fumigation, • Lack of Incentives • Logistical Nightmare in FL • Simultaneous Interest on Horizon in Maine

5. The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change, which commits its Parties by setting internationally binding emission reduction targets. Recognizing that developed countries are principally responsible for the current high levels of GHG emissions in the atmosphere as a result of more than 150 years of industrial activity, the Protocol places a heavier burden on developed nations under the principle of "common but differentiated responsibilities." Climate change is a global problem that requires a global solution. In 2010, governments agreed that emissions need to be reduced to ensure global temperature increases are limited to below two degrees Celsius. All countries, including major emitters, need to play a role in meeting this global goal.

6. Notice of Changes to Export Requirements Forest Product Exports to the European Union “On June 17, 2014 the European Union published amendments to its principle plant health directive (Council Directive 2000/29/EC) which regulates the import of plants and plant products including forestry products. Member countries of the European Union are to adopt the requirements within their laws, regulations, etc. by 30 September 2014. The Requirements will come into force for imports arriving on or after October 1, 2014. The requirements do not remove existing derogations, but do change import requirements for certain commodities. Wood must be: - Heat Treated or, - fumigated or, - chemical pressure impregnated. Fumigation or chemical pressure impregnation must be completed using approved products. At present the E.U. has not approved any fumigation products. Heat treatment is defined as the application of 56°C for a minimum duration of 30 continuous minutes throughout the entire profile of the wood (including at its core). Phytosanitation – Heat Treatment is the only EU/ USDA-APHIS approved method/process for exporting wood chips to the EU from North America.”

9. In 1600’s UK had depleted it’s forests. • King’s Mark – Masts 3- 4 Per Vessel • 50 Acres Per Vessel • Hand felled trees. • Second largest occupation – behind farming. • Horse drawn from harvest sites to mills or waterway. • Logs floated to lumber mills throughout Maine. • Lumber distributed throughout Maine – New England. • Materials for ship building – construction timbers etc.

10. Movement of Timber was enhanced by statewide rail. • During the last 50+ years the rail fell behind trucking. • Newly revitalized rail way – Central Maine & Quebec. • Prospect Phytosanitation Facility. • Replacement for chemical based fumigation processes. • Processes energy wood chips for EU Power Production. • Port of Searsport – 1st Choice for all export operations. • Finalizing Lay down areas for storage – handling. • Finalizing loading productivity issues – require 9,000 MTPD

11. Heat Treated – Energy Chips – Bulk Loaded • Heat Treated – Kiln Dried Logs – FAS Bulk • E = MC3©–Baled Energy Chips • MDF Wood Chips for Turkey – Aboard Buyer Vessels • Wood Chip Carrier (Panamax) Owned by Buyer • Established EU Routes on Dedicated Basis • Existing Port Conditions Suitable for Vessel Operations • May/June 2015 Expected First Vessel Loading - Export

15. Low Cost Provider Benefits Lower costs allows for two options: 1. Lower Price to Buyer – Secures Sales 2. Wider Company Margins to: a. Pay higher prices for fiber, and b. Spend more to improve port operations.

21. Partial List of Products - Affiliates & Alliances The above is a small representation of all of the affiliations we have made over the past 3.5 years. We look forward to building an even greater network of industry professionals in 2015.

22. A Prospective of the Local Area Searsport is 8.5 Miles by Road and 12 Miles by rail from Prospect

23. A Prospective of the Railway Supply Line

24. A Prospective of the Prospect Site

25. A Prospective of the Log Processing Site

26. A Prospective of the Port of Searsport

27. Wood Chip Handling & Loading Perspective 40,000 Metric Tonnes – MDF – for Bulk Loading

38. Loads at 6,000 MTPD $1.5 Million (Budget) Assists Existing 4,500 MTPD

39. Potential Global Reach out of Searsport Prospect/Searsport can be the “Fiber Hub” from the US - Providing Long-term – Meaningful Jobs – All Year Work – to Supply Diverse Clients

40. Thank you for inviting me here today. My office is open to each and everyone in this audience and to anyone who cares to visit and ask for more information. I urge anyone with questions to call on us at any time. For 3.5 years now, I have had an open-door policy. That will not change. Searsport: 207-548-2118 Belfast: 207-338-5285 Mobile: 207-930-5168