THE LARGEST BRAZILIAN BIODIESEL COMPANY

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SUSTAINABILITY IN PRACTICESUSTAINABILITY IN PRACTICESUSTAINABILITY IN PRACTICE

A company will only contribute to sustainable development if it A company will only contribute to sustainable development if it isis

ENVIRONMENTALLY ENVIRONMENTALLY FRIENDLYFRIENDLY

SOCIALLY SOCIALLY RESPONSIBLERESPONSIBLE

ECONOMICALLY ECONOMICALLY EFFICIENTEFFICIENT

RESPECT TO THE ENVIRONMENT AND SOCIAL RESPONSABILITY SHOULD BE AN ASSET AND NOT A LIABILITY

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BIODIESEL AND THE ENVIRONMENTBIODIESEL AND THE ENVIRONMENTBIODIESEL AND THE ENVIRONMENT

carboncarbonsulphursulphurparticulatesparticulates

reduces greenhouse gas reduces greenhouse gas emissions ofemissions of

is green when made from is green when made from perennial oilperennial oil--bearing plantsbearing plants

is biodegradableis biodegradable

is renewable and a perfect is renewable and a perfect substitute for mineral fuelssubstitute for mineral fuels

BIODIESELBIODIESEL

sustainable in thesustainable in thelong termlong term

plants absorb carbon plants absorb carbon dioxide while growingdioxide while growing

less risk to the less risk to the environmentenvironment

is more is more ecofriendlyecofriendly when the when the biomass is used in the biomass is used in the production processproduction process

replaces heating fuelsreplaces heating fuels

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BIOFUELS AND THE ENVIRONMENTBIOFUELS AND THE ENVIRONMENTBIOFUELS AND THE ENVIRONMENT

The sustainability of different The sustainability of different biofuelsbiofuels can only be evaluated by comparing can only be evaluated by comparing their energy balances, that is, the relation between the renewabtheir energy balances, that is, the relation between the renewable energy le energy

generated and the fossil materials used in the production procesgenerated and the fossil materials used in the production processs

1.3 1.9 1.93.0

3.2

8.3

0

2

4

6

8

Corn US

Beet EU

SugarCaneBrazil

SoybeanUS

RapeseedEU

SunflowerEU

Ethanol Biodiesel

ENERGY BALANCEENERGY BALANCE

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BRASIL ECODIESEL AND THE ENVIRONMENTBRASIL ECODIESEL AND THE BRASIL ECODIESEL AND THE ENVIRONMENTENVIRONMENT

BrasilBrasil EcodieselEcodiesel hired hired EcoSecuritiesEcoSecurities* to determine the energy balance of * to determine the energy balance of biodieselbiodiesel made from castor oil in our plant in made from castor oil in our plant in IraquaraIraquara, , BahiaBahia

Major assumptions* Plantation by family farmers with manual sowing and harvesting* Average size of properties: 6 ha (14.8 acres)* Average production: 600 kg/ha per year (243 kg/acre )* By-products (castor seed cake and glycerin) used to generate heat during the production process

BRASIL ECODIESEL CAN PRODUCE THE “GREENEST”

BIOFUEL IN THE WORLD

ENERGY BALANCE = 10.5

*EcoSecurities is a leading company in the field of carbon credits, with headquarters in London. The figure for the energy balance is preliminary, pending final auditing by an independent expert.

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BRASIL ECODIESEL AND THE ENVIRONMENTBRASIL ECODIESEL AND THE BRASIL ECODIESEL AND THE ENVIRONMENTENVIRONMENT

Additional advantages Additional advantages

* castor planted in semi-arid regions of poor soil and irregular rainfall, land improper for intensive agriculture, no forest cover

* abundant availability of unemployed or underemployed work force

* castor oil and cake being non edible by humans and animals, no competition between food and fuel

Future perspectives Future perspectives

* if and when methanol is replaced by ethanol in the transesterification process, the energy balance of biodiesel made from castor oil should be above

* an even higher ratio will result from the use of jatropha (pinhão manso) because it is a perennial plant and shows a higher oil productivity per hectare than castor plants

40:1

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JatrophaJatropha Curcas Curcas oiloil

Family farmersFamily farmersand own landand own land

Castor oilCastor oil

Family farmersFamily farmers

Sunflower Sunflower oiloil

Family farmers Family farmers and intensive and intensive

agricultureagriculture

Soy oilSoy oil

Oil industriesOil industries

BRASIL ECODIESEL AND ECONOMIC EFFICIENCY Vegetable oils diversification

BRASIL ECODIESEL AND ECONOMIC BRASIL ECODIESEL AND ECONOMIC EFFICIENCY EFFICIENCY Vegetable oils diversificationVegetable oils diversification

Diversified sourcing of vegetable oils• mitigates risks • benefits from Brazilian agricultural potential

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Focus on non edible and highFocus on non edible and high--yield oil cropsyield oil crops* better relation between oil and meal/cake* no competition between food and fuel* availability of land* labor intensive – positive social and human development impact

Marginal UseMarginal Use Production ExpansionProduction ExpansionOil Meal Oil Cake Oil Cake

SOYA

SUNFLOWER CASTOR JATROPHA CURCAS

1,0

4,04,0

1,01,0 1,01,0 1,01,0 1,01,0 1,01,01,51,5

Oil Meal

BRASIL ECODIESEL AND ECONOMIC EFFICIENCY Vegetable oils diversification

BRASIL ECODIESEL AND ECONOMIC BRASIL ECODIESEL AND ECONOMIC EFFICIENCY EFFICIENCY Vegetable oils diversificationVegetable oils diversification

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BrasilBrasil Ecodiesel aims to reduce soy oil usageEcodiesel aims to reduce soy oil usage

Feedstock Sourcing - 2010

70%

20%

18%

45%

12%30%

5%

2007 2010

OIL MARKET

SUNFLOWER

CASTOR

JATROPHA

BRASIL ECODIESEL AND ECONOMIC EFFICIENCYDiversification of feedstocks and sourcing

BRASIL ECODIESEL AND ECONOMIC BRASIL ECODIESEL AND ECONOMIC EFFICIENCYEFFICIENCYDiversification of Diversification of feedstocksfeedstocks and sourcingand sourcing

Own Lands20%

Intensive Agriculture

25%Family Farmers

35%

Oil Market20%

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Storage facilities for vegetable oils and grains: 32

Biodiesel plants: 7

Oil Extraction units: 6

Major Major biodieselbiodiesel producer in producer in Brazil and the only one with Brazil and the only one with

a nationwide presencea nationwide presence

* 4 in operation* 2 pre-operational* 1 in planning

* 2 in operation* 1 pre-operational* 3 under construction

Farms: 6 (32,000 hectares / 79,000 acres)

BRASIL ECODIESEL AND ECONOMIC EFFICIENCYGeographical diversification

BRASIL ECODIESEL AND ECONOMIC BRASIL ECODIESEL AND ECONOMIC EFFICIENCYEFFICIENCYGeographical diversificationGeographical diversification

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Agriculture Oil Extraction

Transesterification

animal feedstock

Oilseeds Vegetable Oil

Sunflower Meal

organic fertilizerheat generation

Castor and Jatropha Cake

final userheat generation

Oil Market

Biodiesel

Glycerin

BRASIL ECODIESEL AND ECONOMIC EFFICIENCYIntegrated Operating Process

BRASIL ECODIESEL AND ECONOMIC BRASIL ECODIESEL AND ECONOMIC EFFICIENCYEFFICIENCYIntegrated Operating ProcessIntegrated Operating Process

Integrated production structure guarantees vegetable oil supply and mitigates commodity prices/currency fluctuations

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THE BRAZILIAN BIODIESEL PROGRAM AND SOCIAL INCLUSIONTHE BRAZILIAN BIODIESEL PROGRAM THE BRAZILIAN BIODIESEL PROGRAM AND SOCIAL INCLUSIONAND SOCIAL INCLUSION

** In a pioneering move, the Brazilian In a pioneering move, the Brazilian BiodieselBiodiesel Program offered a tax Program offered a tax incentive to incentive to biodieselbiodiesel producers using producers using feedstocksfeedstocks planted by family planted by family farmersfarmers

** The maximum rebate is given to The maximum rebate is given to biodieselbiodiesel derived from castor plant derived from castor plant ((mamonamamona) and palm () and palm (dendêdendê) produced by family farmers in the North, ) produced by family farmers in the North, Northeast or the semiNortheast or the semi--arid regionarid region

** A A ““Social Fuel Stamp" identifies the Social Fuel Stamp" identifies the biodieselbiodiesel producers which employ producers which employ family farmers and are thus eligible to enjoy the tax incentive family farmers and are thus eligible to enjoy the tax incentive

** BrasilBrasil EcodieselEcodiesel was the first company to receive the was the first company to receive the ““Social Fuel Social Fuel Stamp"Stamp"

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BRASIL ECODIESEL AND SOCIAL INCLUSIONBRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

BrasilBrasil EcodieselEcodiesel performs its social inclusion function in two ways:performs its social inclusion function in two ways:

SOCIAL INCLUSION

Establishment of Establishment of settlements in its settlements in its

own landsown lands

Network of Network of contracts with contracts with family farmersfamily farmers

BrasilBrasil Ecodiesel cooperates closely with rural unions at the Ecodiesel cooperates closely with rural unions at the federal and state levels, cooperatives, NGOsfederal and state levels, cooperatives, NGOs

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Communal Production NucleusCommunal Production Nucleus Integration Network of Agricultural Integration Network of Agricultural PartnersPartners

Focus on new crops intensive in labor Focus on new crops intensive in labor * Assured supply – loyalty programs with feedstock suppliers* Institutional solidity – relationship with rural area organizations

•• Santa Clara Nucleus, established Santa Clara Nucleus, established in 2003in 2003

•• ~ 100,000 by the end of 2007~ 100,000 by the end of 2007

BRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

7676

76 Regional Offices76 Regional Officescovering covering

1,200 Municipalities1,200 Municipalities

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SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS

BRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

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SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS

BRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

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SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS

BRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

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SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS

BRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

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SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS

BRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

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SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS

BRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

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SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS

BRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

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SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS

BRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

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SANTA CLARA COMMUNAL AGRICULTURAL NUCLEUS

BRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

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BRASIL ECODIESEL AND SOCIAL INCLUSIONBRASIL ECODIESEL AND SOCIAL BRASIL ECODIESEL AND SOCIAL INCLUSIONINCLUSION

INTEGRATION NETWORK OF AGRICULTURAL PARTNERSINTEGRATION NETWORK OF AGRICULTURAL PARTNERS

In its contracts with agricultural partners, BrasilIn its contracts with agricultural partners, Brasil Ecodiesel:Ecodiesel:

* commits itself to buy all the seeds produced with guaranteed prices

* for family farmers in the semi-arid, provides castor seeds, bean seeds, tools and technical assistance through regular visits by agents (who also provide information on health, hygiene, education)

BrasilBrasil Ecodiesel has 57,000 families under contract, reaching Ecodiesel has 57,000 families under contract, reaching over 100,000 by the end of 2007over 100,000 by the end of 2007

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SUSTAINABILITY IN PRACTICESUSTAINABILITY IN PRACTICESUSTAINABILITY IN PRACTICE

ENVIRONMENTALLY ENVIRONMENTALLY FRIENDLYFRIENDLY

SOCIALLY SOCIALLY RESPONSIBLERESPONSIBLE

ECONOMICALLY ECONOMICALLY EFFICIENTEFFICIENT

BRASIL ECODIESEL FULFILLS THESE CONDITIONS IN AN UNPARALLELED WAY

SUSTAINABLE DEVELOPMENT FORUM 2007SUSTAINABLE DEVELOPMENT FORUM 2007

NEW YORK, APRIL 30, 2007NEW YORK, APRIL 30, 2007

JORIO DAUSTER JORIO DAUSTER –– CHAIRMAN OF THE BOARDCHAIRMAN OF THE BOARD

www.brasilecodiesel.com.brwww.brasilecodiesel.com.br