SOLARIS Energy Tobacco

SOLARIS Energy Tobacco

Activities and Results

Sunchem Holding

Sunchem Holding is a research and development company driven to develop the next generation of sustainable energy crops

For this purpose Sunchem Holding created, through targeted selection, a GMO free tobacco variety called Solaris

Solaris does not contain nicotine and is therefore unfit to grow traditional leaf tobacco, it is characterized by low leaf and high seed production; the separation and pressing of seed generates oil for biofuels, press cake for animal feed and dry biomass for energy generation

As a result of multiple annual harvests and related high yields per hectare, the carbon reduction potential of Solaris exceeds all other energy crops

Sunchem Holding holds the exclusive rights to exploit and globally develop the industrial patent for “energy tobacco” (PCT/IB/2007/053412); the patent has been deposited in 119 countries and has been granted in over 70 countries (USA, all African Countries, EuroAsia, Italy, Russia)

Mission - Vision - Values

MissionTo develop and promote through traditional targeted selection next generation energy cropsthat are deployed in a socially & environmentallysustainable manner

VisionTo become a global supply chain leader in the biofuels market ValuesOur key values are:- Innovation through research & development- Social and environmental sustainability

Energy TobaccoThe Solaris tobacco variety maximizes the production of flowers and seed and has reduced growth of leaf

Solaris is very robust, it can be cultivated in a variety of climates and soils, amongst others on marginal lands unsuitable for food production

Solaris’ yieldsOne hectare of Solaris generates an average of 3 tons of seed per harvest, subject suitable conditions 3 or more harvests per year can be obtained

Seed contains 40% oil, through cold pressing up to 33% oil and 67% protein cake can be extracted

In addition 1 to 2 tons of dry biomass per hectare and per harvest result from the seed separation process

Alternatively 60-100 tons per hectare of fresh biomass can be harvested for the production of biogas

Product applications

TOBOIL, a crude oil for energy production, biodiesel and bio jet fuel

Press cake for animal feed

Biomass for the generation of electricity and heat - the calorific value of the dry biomass amounts to 3.800 kcal/kg and for the generation of biogas - fresh biomass produces 190 m3 of gas with 54% methane

Integrated Value Chain

Sunchem History

2012-2013-2014 – Sunchem enters in the pre-industrial phase

1990-2002 – founding partner of Sunchem, plant genetist Prof. Corrado Fogher worked on the analysis, genetics and DNA of Energy Tobacco

2003 – Prof. Corrado Fogher designs a variety of seed tobacco that leads to the founding of Sunchem in 2007 for development of international patent PCT/IB/2007/053412

2007-2008-2009 – Sunchem tests the plant in different countries: Romania, Brazil, USA, Bulgaria, Egypt, Italy and Algeria

2010-2011 – Sunchem further consolidates test results and knowledge of agro-practice, oil, cake and biomass

Tim

e

Development

The starting principle is developing a strong scientific foundation

Understanding of technology and product grows

Sunchem expands knowledge and improves its international network

Sunchem develops a stable agro-protocol, has deep knowledge of its products and engages strong partnerships

Italy

Since 2008 Sunchem Holding pursued testing at many different sites in order to refine the agronomic protocol for different latitudes, soil and climate conditions

In 2012, more than 400 hectares on one site have been cultivated to support setting agronomic parameters for larger scale operations

In 2013, the base-case production of seed has stabilized between 2.5 and 3 tons per hectare per harvest, however sites in Africa reach over 4 tons of seed per harvest showing substantial upside can be achieved with ongoing improvement in plant variety and choice of location

A large variety of plants are followed throughout their development during which different parameters are recorded. Inflorescences from the most productive plants are collected and evaluated, after which again the most promising lines are selected for selfing

Following plant selection, the reproduction capacity is tested in test fields

Sunchem’s partner “Plantechno”is managing the genetics and the selection process

Activity selection and variety improvements

Various other lines from the plant’s germoplasm (collection of genetic resources) and crosses aimed at increasing productivity are also being evaluated

• Lines N1, N2 and N3: The core of the selection project. These are three Solaris lines that were selected in 2012 that have reached production between 400 and 500gr of seed per plant over two harvests and were chosen as next plants for the selection 2014

• Between 280 and 300 plants per line were transplanted per field

• Lines A1, A2 and A3: Three lines originated with an intra-specific cross aimed at increasing oil production

• Lines Ca and Cb: Lines originated with an intra-specific cross between high-yield seed varieties

• Lines II1and II17: Lines originated with an INTER-specific cross and colchicine treatment. Their phenotype has been evaluated under field conditions

• Line G1: Tobacco from Plantechno’s germoplasm, characterized by extremely large capsules. Their phenotype has been evaluated under field conditions

• Line PLT103: A tobacco variety originally used in the crosses that were undertaken in the generation of the Solaris variety. Grown for comparison with the different lines grown this year (positive control)

• Line O1: Early variant of Solaris obtained in 2007. Grown for comparison with the different lines grown this year and original lines (second positive control)

• Lines PLTA4, PLTA56, PLTA60, PLTA61, PLTA65 and PLTA88: Germoplasm lines grown to evaluate their phenotype under field conditions. Photographic evidence from past years suggests high seed production

Various plant lines of tobacco are being grown to either select highly productive and stable Solaris lines or to evaluate their characteristics to continue the breeding of new varieties. Two test sites with different soil characteristics (clay and sandy) are used, where plants from the following lines are being grown and their development and yields followed carefully

Production results selection lines 2013

Line n. capsules Seed gr.

SN3P38

SN3O42

PN1S25

SN3S38

SN1D44

Line n. capsules Seed gr.

SN3P38

SN3O42

PN1S25

SN3S38

SN1D44

1143

1187

1059

972

815

1212

1345

872

1016

937

147.5

172.5

229

122

128.9

308

275

176

206

135

TotalSeed gr.

455.5

447.5

405

328

263.9

1° Harvest 2° Harvest

SN3P381° 2°

SN3O421° 2°

PN1S25

SN3S38

SN1D441°

1° 2°

2°

2013 Solaris

Field Site 1 Henry County, VA (Mountain Valley Organics)

Field Site 2 Callands, VA (Briar View Farm)

Field Site 3 Plankinton, SD

Seed Yield 6K = 682kg/acre 12K= 714kg/acre 24K= 861kg/acre

The results in USA with

SOUTH AFRICA 2013-14

MARBLE HALL (LIMPOPO REGION)

Farm: “Terblanche Boerdery” of Jannie Terblanche

Farm: “Nyawa Boerdery” of Peter Kok

Transplantation: (30 – 09 – 2013)

1° Harvesting: (02 – 02 – 2014)SEED PRODUCTION 1° HARVEST: 3,8 – 4,5 TON/ha

BRASIL 2013 – 2014RIO GRANDE du SOLMINAS GERAIS

Rio PardoUberlandiaMocambigno

In the states of Minas Gerais and Rio Grande, 3 hectares of Solaris were cultivated on 3 separate sites

The combination of skilled farming and Sunchem’s technical expertise resulted in a increase of more than 50% in productivity year over year.

EGYPT

In the period between 2006 and 2011 Sunchem starteda fruitful collaboration with the University of Cairo and the Egyptian Ministry of Agriculture. Cultivations were made in the Giza and El- Bustan regions, with the University of Cairo involved in studying the different characteristics of Solaris

Based on favorable climate conditions and with drop fed irrigation 5 harvests of 3 tons per hectare were reached, for the first time exceeding a total of 10 tons and showing the continuous harvesting potential

Unfortunately, after the Arab spring of 2012 a large part of this important work has stalled, nevertheless the accumulated technical data remain a reference

Sunchem is still working with The University in the context of an international EU project on biofuels

NAMIBIA

In collaboration with the Namibian government and related to the electricity constrains and need for labor in the country an initiative was launched to construct a 5 MW biogas installation for which Solaris will be the prime feedstock

With 60 to 80 tons of fresh biomass per hectare per harvest Solaris delivers a solid feedstock alternative, given high sugar and oil content gas production yields are over 190 m3 /ton Trials to date show similar production volume of around 3 tons of seed per harvest with a minimum of 3 harvests year

BULGARIA 2013

Results of the 2013 trial were presented at the AGRO-CONFERENCE START TRANSNATIONAL CONFERENCE FOR SME BUSINESS SUPPORT SERVICES IN THE ANIMAL BREEDING AND HORTICULTURE SECTORS

14 November 2013, Sheraton Sofia Hotel Balkan, Sofia, Bulgaria

In Bulgaria Sunchem cultivated 20 hectares of Solaris on 3 different sites, 2 harvests with an average of 3 tons per hectare resulted

Sunchem Holding Team

Massimo Ghilardi (President) Dr. Sergio Tommasini (Managing Director)Dr. Michael Knap (Strategy Committee) The operational team:Nicola Fogher (Agro Technician)Dr. Francesco Di Lucia (Agronomist)Dr. Massimo Zuin (Agronomist)Prof. Milvio Avogadro (Engineering and Process)D.ssa Serena Reggi, PhD (Genetics)Dr. Stefano Gattolin, PhD (Genetics)Dr. Kiril Perfanov (Genetics)D.ssa Nicoletta di Norscia, PhD Student (bio-energy expert)Eng. Andrea Vaccaro (environment) Dr. Mauro Finguerra (international tax)Dr. Pietro Busi (financial management)Massimo Mela (accountanting)Avv. Paolo Cecchi (International law)D.ssa Valentina Predazzi – SIB (Patent)

Every partner company around the world has a

specific team to follow-up on the Sunchem Holding objectives

Sunchem USA – Tyton (Partner Tyton Bioscience Corporation)Tyton BioSciences Corp. is located at the Dan River Business Development Center on Ringgold Industrial Park West, off Highway 729 (Kentuck Road) in Pittsylvania Country.Point of Contact: Dr. Peter Majeranowski ( [email protected] ), Dr. Iulian Bobe, PhD ( [email protected] )*** *** ***Sunchem Terasol Oleos Ltda (Partner Terasol LLC and Argos Oil BV)Terasol is located in Rua Prof. Joao Mendes Franca 155, Sala 07 Bairro Morumbi, San Paulo BrazilPoint of Contact: Dr. Henrique Hubrig [email protected]), Dr. Carlos Claro ([email protected])*** *** ***Sunchem South Africa Ltd (Partner AtlasInvest N.V.)Point of Contact: Dr. Michael Knap ([email protected]) Eng. Joost Van Lier ([email protected]) *** *** ***Sunchem Alpha Namibia Ltd (partner Otjozondjupa Holdings Ltd)Otjozondjupa has located in Windhoek, Namibia.Point of contact: Dr. Zedekias Gowaseb ([email protected])*** *** ***Sunchem Bulgaria (Partner Tae Ltd)Point of contact: Dr. Svetlin Stoev ([email protected])

Sunchem Network

In addition to the countries were Sunchem conducted trials, starting in 2012 working relationships have been developed with many organizations interested in conducting agricultural trials of Solaris, discussions on further development are ongoing in

- ARGENTINA- ECUADOR- VENEZUELA- PERU- NICARAGUA- URUGUAY

- SPAIN- MACEDONIA- ALBANIA- TURKEY

- GHANA- ANGOLA- ZAMBIA- ZIMBABWE- MOZAMBIQUE

A project for agro-energy innovation

Through innovation challenging new technological frontiersfor a new vision on agriculture and energy