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May 2009

Biofuels Sector

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NAME REGIONCAPACITY

(lt/day)

INCAUCA Miranda, Cauca 300.000

PROVIDENCIA Palmira, Valle 250.000MANUELITA Palmira, Valle 250.000

MAYAGEZ Candelaria, Valle 150.000

RISARALDA La Virginia, Risaralda 100.000

TOTAL 1.050.000

At the moment Colombia has a production

output of over 1 million liters of ethanol.

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Current and future ethanol proyects willdouble Colombia ethanol output in the next

couple of years.

NAME REGIONCAPACITY

(lt/day)TYPE OF

CROP

GPC Puerto Lpez, Meta 20.000 CassavaRIOPAILA Zarzal, Valle 300.000 Sugar cane

BIOENERGYPto. Lpez Pto.

Gaitn, Meta300.000 Sugar cane

MAQUILTEC Tuta, Boyac 300.000 Sugar beetAlcoholes

QuindianosAsociados

Valle R. La Vieja,Quindo

150.000 Sugar cane

EthanolConsortium Board

Marialabaja, Bolvar 300.000 Sugar cane

Total 1.370.000

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Domestic Biodiesel production will reach500,000 tons by the end of the year 2009.

NAME REGIONCAPACITY

(lt/year)YEAR

OLEOFLORES Codazzi, Cesar 50.000 Jul-2007ODIN ENERGY Santa Marta, Magdalena 36.000 Mar-2008

BIOCOMBUSTIBLESSOSTENIBLES DEL

CARIBESanta Marta, Magdalena 100.000 Feb-2009

BIO D Facatativ, C/marca 100.000 Abr-2009

MANUELITA San Carlos de Guaroa, Meta 100.000 Jun-2009

ECODIESEL Barrancabermeja 100.000 Sept-2009

BIOCASTILLA Castilla La Nueva, Meta 10.000 Sept-2009

TOTAL 496.000

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Demand for ethanol and biodiesel willincrease five fold by the year 2020.

0

50

100

150

200

250

300

2008 2010 2015 2020

EthanolBiodiesel

Source: UPME, MME

Milesdeg

alones

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Because there are more than 7 million hectares of

available land to develop large scale projects

Colombia has 7 million hectares of available land in which to plant and grow crops

destined for the biofuels industry. This land does not compromise Colombias rainforests or

otherecological reserves..

Zones with high

potential for

ethanol production

Zones with high potential

for the production of palmoil

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Colombia has three times the amount of availableland to develop biofuel projects than Malaysia

Land uti lization (Colombia vs. Malaysia)

Sources: Food and Agricultural Organization, United Nations

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Colombias available land amounts toaround 90% of land currently devoted to

cultivating biocrops in Brazil

Colombiahasthepotential

to

be

one

of

thecountrieswiththelargestlandextensiondevotedtoplantingandharvestingofbiocropstosupplyethanolandbiodieselprocessingplants

Land used to plant Biocrops (millions of hectares)

Source: International Energy Agency (IEA)

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Colombias sugar industry is the most productiveworldwide and the palm oil industry is the most

productive in the region

Colombiasurpasses

Brazils

andEcuadorssugar

productivitylevelsby50%and55%respectively.ThesugarindustryinColombia

isaworldleaderinproductivitybeingableto

produce9,000litersofethanolperyear/ha.

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In palm oil production, Colombiasproductivity levels are twice those of Ecuador

and surpass Brazils by 50%.

In palm oil production,Colombias productivitylevels are twice those of

Ecuador and surpass

Brazils by 50%. Colombia

can produce 4,200 liters of

biodiesel per hectareannually.

Palm oil process

Palm oil

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Colombia has centered its

biofuel production on sugarcane and palm oil;.Energy efficiency of biocrops used in the production ofethanol and biodiesel

barrels/ ha/ year

ETHANOL Biodiesel

Source: Ministry of Mines and Energy according to Goldman Sachs y LMC

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Because Colombias internal demand isnot fully covered by local production of

biofuels as well as the existence of a lawthat requires the mix of biofuels withfossil fuels

Productionofethanolonly

meets66%ofestablished

demand Productionofbiodieselmeets20%

oftheestablisheddemand

GovernmentmandatedmixofE20B20by2020. Colombianlaw

currentlymandatesa10%blendofethanolin gasolineanda5%blendof

biodieselindiesel.

By2020,localdemandforethanolisexpectedto

increase500%fromcurrentlevelswhilethe

demandforbiodieselshouldincrease700%.

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Because Colombia offers investors aflexible and progressive legal

framework regarding Biofuels

Single Enterprise Free Trade Zone: In Colombia new agribusiness projectsof Biofuels can be granted the status of Free Trade Zones in any place of the

country as a Single Enterprise Free Trade Zone

Investment in Millions or Outsourced Jobs

USD $ 16.94 500

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Income Tax Exemption for 10years:

Cultivo de Palma Africana

Palma Africana

Colombia offers an Income Tax exemption for new late yield crops, like Africanpalm, planted between 2003 and 2013. These plantations will have a 0% income tax rate for

10 years form the moment they are planted

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Legal Stability Agreements for

up to 20 years

ColombiaoffersinvestorstheopportunitytosignaLegalStabilityAgreement foraperiodofupto20years.Thismechanismallowstheinvestortoinsurethatthelawsandtheirinterpretationwillbeapplicablefromthemomenttheysignthecontractforupto20years

Objective

Requirements

Term

Guarantees legislation and currentadministrative interpretation of thatlegislation

Minimum investment requirement of

USD 1,690,000.Payment of a premium equivalent to 1%of the investment made

Up to 20 years