MU DAN PROJECT

1. MU DAN PROJECT * * * Avv. Carlo Sinatra Founder and Managing Partner Sinatra Law Firm Founder and President of GssepOnlus 1

2. Sustainabilitychanges the Earth MU DAN PROJECT FOR CHINA A GSSEP PROJECT May 2014 2

3. GSSEP – MU DAN PROJECTIndex GSSEP – MU DAN PROJECT GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM (GSSEP) MU DAN PROJECT: GENERAL OVERVIEW MU DAN PROJECT: TECHNICAL OVERVIEW 3

4. GSSEP – MU DAN PROJECTIndex GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM Overview • Energy investments should address energy needs within a comprehensive sustainable vision. • GSSEP developed a model which combines growth and availability of food, energy and quality of life. • A new model to ensure developing Countries access to sustainable, reliable and affordable energy, not affecting climate change and taking into account economical, technological and geopolitical issues. 4

5. GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM GSSEP – MU DAN PROJECTIndex Key main principles and Guidelines Keyprinciples • Such agrobioenergyislands are of very significant dimensions and contribute to a massive production of energy in the frame of a fully integrated sustainable scheme with the hosting territory. • GSSEP’s biomass plants do not utilize food which remains in the territory and constitutes an important component of the GSSEP economy. • GSSEP is being organized as a worldwide initiative with the objective of promoting GSSEP’s principles in all Countries focusing on implementing sustainable growth for their populations. • Currently GSSEP’s organization is based in Italy but is intended to create branches all over the world. • LOBAL • GSSEP’s main concrete principles: • Keep the main part of energy output in the territories where the initiatives are implemented, so as to promote local growth and development. • GSSEP’s renewable energy sources are mainly photovoltaic, energy from food residues, hydro, all combined into «dedicated agro and bioenergy islands» adapted to the physical characteristics of the territories. • GSEP is a new philosophy to address development and cooperation. 5

6. GSSEP – MU DAN PROJECT Keymainprinciples and Guidelines GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM • All of GSSEP’s investments are necessarily associated to very important infrastructural investments such as improvement, upgrading and reinforcement of roads, railways, airports and ports, as needed, but are also focused on many social investments in schools, hospitals, multicultural centers, renewable energy museum, childhood and women organizations, training and education programs on food, energy and sustainable development targets. • GSSEP is lead by a group of experienced professionals, actively engaged in many disciplines, such as: development, legal, communication, engineering, agriculture, financing, chemistry, environmental science, lobbying and public affairs. • GSSEP’s business model is based on an effective effort to assess the feasibility of the projects in different Countries and to start working with Companies actually interested in investing on a long term basis in the successful GSSEP projects. GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM 6

7. GLOBAL SUSTAINABLE AND SOCIAL ENERGY PROGRAM MU DAN PROJECT 7

8. MU DAN PROJECT Overview One of the first projects of Global Sustainable and Social Energy Program hasbeenconstructedthinking to Chineseterritorieswhere a strong renewableenergydevelopmentcould be related to a still more massive agricolture development, creatingintegration, sinergies and direct and indirect social benefit for the guestingterritory. The Project thought for China, and implementable in differentchineseterritorieswilling to guest it, itiscalled «MU DAN». 8

9. MU DAN PROJECT Overview MU DAN is an agro-energy, sustainabledevelopmentplan and isfounded on the following threekeyconcepts: 1. Economicsustainability:return on investments, entrepreneurialsupport, modular business plan, accessibleenergy production in a frame of integratedrenewablesenergyresources and namely:hydro, biomassplant, pvplants and biogas plant. Part of the profits of suchactivityshould be dedicatedyear by year to implement a local social plan. Economicallyspeaking Lily is a winningproject for all, entrepreneur, financialinstitutions, populations, localgovernments. 9

10. MU DAN PROJECT Overview 2. Environmentalsustainibility: innovative technologies, respectful of health and environment, protection of land and traditions and high standards of security. 3. Social sustainibility:technology transfer, employementopportunities for localresources, localindustriesdevelopment, education and training, integration of public infrastructures (hospitals, schools) and infrastructures. 10

11. MU DAN PROJECT Objectives • System Integration for food and energy production in China to support: • - Growth of food and energy production in order to address growing demand • - Local infrastructure development • - Qualified and responsible response to the right to energy, which means widespread access to sustainable energy and improvement of quality of life 11

12. MU DAN PROJECT General description MU DAN isorganizedintodifferentsublocalprojects, named BioenergyIslandsbased in the provinces of Guangxi,yunnan and hunancontaining: a) Hydroplant or a system of mini hydroplantsbetween 5/10/15 Mw.globally b) Biomassplantfunctioningas the case may be with foodcrops, (just crops and notfood!) between 5/10Mw. c) Pvplantsatleast 20 Mw.ineach province, butnot on the agriculturalland.InGuangxi and Yunnan,mainlyutilizingsugarcane and othercropsavailable,suchasthose from rice. d) New agriculturalactivitiesaimed to produce crops fo the biomassplants (whoseextensionisdepending on kind of cultivationbutshouldnot be lessthan 10000 ha globally). e)Training on new technologies (also in agricolture and related to «optimization»). f) Social infrastructuresfinanced with year by year royalties outcomingas part of the profits of activitiesproducingenergy and g)Education centers on food, energy and sustainabledevelopment targets. 12

13. Farming and new agriculturecultivation HydroPlants MU DAN: IMPROVEMENT MODEL Sustainable progress MU DAN Photovoltaicplants Biomassplants Social evolution 13

14. MU DAN PROJECTHelping farmers to improve and expand crops and skills towards a better life Feeding/Sale produce Food produce Power Generation Biomass – 5/10/15 Mw ExpandToday’sFarming Foodcrops biomass specifcrops Biomass production/Sale The sun PV Power Generation / Sale - 20 Mweach province Improvement Model Social Evolution • - Job Employment • Education(Schools and training) • Health (Hospitals) • Communication (Culture center) The water Mini-hydroPower Generation / Sale – Sale – 5/10/15Mw globally 14

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16. Guangxi province 16

17. Yunnan province 17

18. Hunan province 18

19. MU DAN PROJECT – AGRICULTUREBioenergy Island: Biomass Feedstocks and Total Land repartition • The landcultivation of eachbioislandwill be sharedbetween: • Sugarcane • Rice crops • OtherFoodCrops 19

20. MU DAN PROJECT – AGRICULTUREBioenergy Island: Location LOCATION Each Bioenergy Island covers a variable surface of 3000/5000 Hectares dedicated to agriculture (partially already existing,partially new one)provided that the actual dimension shall be based on the kind of cultivation as well as on land characteristics and logistic structure on the bioenergy island. We believe that each bio island could generate significant employment mainly of them in agriculture. 20

21. MU DAN PROJECT – AGRICULTUREBioenergy Island: Flexibility location and implementation timing • In itsaim of developing a sustanableproject for China, GSSEP intends to agreedirectly with the Chinesenational and localGovernments, as the case may be, the specific layout and content of the Mu Dan project, suchas: • Mix of renewableenergyresources to be used and implemented, • Geographical definition of specific areas for one or more bioenergy islands. • Extension of the lands to be granted. • - Overall frame conditions. 21

22. Sugarcane Bagasse and top and trash of sugarcane are the main residues of sugarcane. While bagasse is dry, fibrous residue remaining after sugarcane stalk after extraction of juice, trash of sugarcane is the remaining of the plant in the field after the harvest. (Associated with GSSEP are currently patentingnew technology process for sugarcane treatment,fully in line with GSSEP sustainable principles) • MU DAN PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues 22

23. MU DAN PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues 23

24. MU DAN PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues Rice Crops Rice is the main agricultural crop and staple food in China. High amount of rice production contributes to high availability of rice residues such as rice husk and rice straw. These residues could be an option for any biomass energy systems. Rice husk is the outer cover of rice which comes from rice milling process as by-product. The usage of rice husk as solid fuel can be a promising way to provide considerable amount of useful energy. Rice straw, on the other hand, is another by-product of rice and great bio-resource since it is one of the richest material in terms of its lignocelluloses. 24

25. MU DAN PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues 25

26. Other food residues To be evaluated in any of the three provinces • MU DAN PROJECT – AGRICULTUREBioenergy Island: Agricultural Residues 26

27. MU DAN PROJECTSustainable social plan Mu Dan Project, in accordance with GSSEP principles, provides as an essential element the creation of significant social investments totally at charge of the investors. For each bioenergy island, Mu Dan Project intends to offer, during all life of the project: • small hospital, • childhood center, • schools, • women emancipation and education center, • Several professional training centers for new technologies utilized in Lily Project, • multicultural center aimed to spread the new GSSEP culture on sustainability, both in relation to food (nutrition) and energy,as the case maybe,based on the royalties which the renewable energy projects contained in Mu Dan project,shall grant to GSSEP for implementing a social programme which global content shall be agreed between GSSEP and the Government. • MU DAN PROJECTSustainable social plan 27

28. In order to have a confirmation of the potentially interested investors which also GSSEP reasonably believes having the chance to involve in the implementation of Mu Dan Project, GSSEP considers essential having a bankable frame fully in place and namely that the project be provide with: Legal instruments and facilitation to grant the investors of the renewable energy part of Mu Dan project and the island necessary to implement the Mu Dan Project and particularly the bioenergy island7s under a concession scheme or equivalent for a period of at least twenty five/thirty years and no material cost/fee for investors. Tax and fiscal exemption for ten years on all the revenues of the Project and not application of VAT duties. • MU DAN PROJECTSustainable«frame » requested by GSSEP/LILY 28

29. MU DAN PROJECTSustainable«frame » requested by GSSEP/MU DAN 3. Authorization process to be complied within a reasonable time being agreed in full respect and compliance with the applicable laws (also specifically issued for Mu Dan Project, if necessary) but in a period not exceeding six/nine months from the date of starting of the authorization procedure so to optimize time and costs of the Project implementation. 4. A specific tariff scheme to be provided for all the produced power and 5. Full support to grid issues by competent Government and institutions in order to facilitate power dispatching and also grid repowering, if necessary. 29

30. MU DAN PROJECTMU DAN advantages and assets for China • The advantages of Mu Dan for China are the following: • Significant sustainable, social, economic and business development based on investments per “island” including social infrastructure; • Innovative technology, both in biomass and in agriculture; • training to facilitate future autonomous use by the local population; • keep the food and the energy produced in China; 30

31. MU DAN PROJECTMU DAN advantages and assets for China • new jobs creation in agriculture; • Increase of the current income of the agriculture through the sale of the existing biomass and new food available for sale; • creation of multicultural centers, women emancipation and children organizations, education centers, professional schools and hospitals. 31

32. MU DAN PROJECTMU DAN time constraints GSSEP is developing a project similar to MU DAN in other countries such as Tunisia where discussions with local governments are currently in very advanced course, but it would be very important for our world mission start the soonest implementing one, not smaller, in China too. 32

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