SCOTIAAGHELEK.

1306 LTD Incorporated in SCOTLAND Registration number: SC421442

Integrated Biorefinery Design for Sustainable Oilseed Rape Biomass Processing Sustainable biorefineries have a critical role to play in our common future. The need to provide more goods using renewable resources, combined with advances in science and technology, has provided a receptive environment for Biorefinery systems development. Biorefineries offer the promise of using fewer non-renewable resources, reducing CO2 emissions, creating new employment, and spurring innovation using clean and efficient technologies. Lessons are being learned from the establishment of first-generation biofuel operations. The factors that are key to answering the question of Biorefinery sustainability include: the type of feedstock, the conversion technologies and their respective conversion and energy efficiencies, the types of products (including coproducts) that are manufactured, and what products are substituted by the bioproducts. The BIOPOL review of eight existing biorefineries indicates that new efficient biorefineries can revitalize existing industries and promote regional development, especially in the R&D area. Establishment can be facilitated if existing facilities are used, if there is at least one product which is immediately marketable, and if supportive policies are in place. Economic, environmental, and social dimensions need to be evaluated in an integrated sustainability assessment. Sustainability principles, criteria, and indicators are emerging for bioenergy, biofuels, and bioproducts. Practical assessment methodologies, including data systems, are critical for both sustainable design and to assure consumers, investors, and governments that they are doing the right thing by purchasing a certain bioproducts. If designed using lifecycle thinking, biorefineries can be profitable, socially responsible, and produce goods with less environmental impact than conventional products and potentially even be restorative!

ScotiaAghelek.1306

BIOREFINERIES
Access to renewable and sustainable sources of energy, chemicals and natural resources is a critical issue facing Scotland. Energy security, food security, climate change and green growth are challenges being faced around the globe. Many countries, Scotland included, have responded to these challenges through a range of policy mechanisms, all of which are intended to enhance the development of sustainable industries, protect environments and food resources, and to mitigate climate change. One specific and highly appropriate opportunity exists to meet these challenges - establishment biomass transformation value chains to produce bio based products from biomass. Bio based products encompass biomaterials, bio based chemicals and biofuels. The value chain begins with growing, harvesting and collecting biomass. Ultimately, the end products are delivered to customers in Scotland and internationally following processing in Biorefineries. Large and sufficient quantities of biomass, either derived from plantation forests or rotation crop residues are available in Scotland. International studies have shown that establishing Biorefineries will have significant effects in; mitigating climate change through significantly reducing GHG emissions; reducing reliance on imported, dwindling and increasing costly fossil fuels; reducing reliance on imported chemicals and plastics and provide a chemical plastics industry focussed on renewable resources; providing opportunities to replace a high % of key plastics and chemicals produced from non-renewable resources. Establishing Biorefineries and biomass transformation value chains offer a pathway to deliver; jobs security for the agricultural and chemical industries; food security; energy security; regional development; and sustainable farming and forestry practices. However, there is limited understanding amongst local industry, the Scottish Government and the research community of the relevance of existing capabilities and infrastructure, or of the barriers to establishing biomass value chains. In Scotland, almost all current activity along the biomass transformation value chain is directed toward supporting bioenergy production. This almost singular focus is useful to grow the industry but misses the significant and growing opportunity to create a broader bio economy based on bio based products from advanced materials and chemicals. Direct benefits of Biorefineries: Several studies and research analyses have identified significant social, economic and environmental benefits that would flow from the establishment of Biorefineries in Scotland. Economic benefits include; new jobs from new transformational processes, such as collection, pre-treatment and processing of biomass; business investment and secondary flow on employment effects; maintaining the chemical and forestry, pulp and paper industries base; added value for biomass residues; value adding for bio based co-products; stimulating significant new innovation in forestry, pulp, paper and chemical industries; and replacement of imported fossil fuels and chemicals. Hence, estimated economic benefits in Australia could be in excess several billion pounds p.a. International benefits from Biorefineries are estimated to be up to GBP 200B p.a. Social benefits include growth in regional communities through population growth and industrial diversification; and regional economic development. Furthermore, evidence from European studies indicate high levels of public and non-government organisation (NGO) acceptance of Biorefineries. Environmental benefits include; Reduced greenhouse emissions; and Reduced fossil fuel emissions, estimated 3-5 times reduction in carbon dioxide emissions for second generation biofuels. Challenges: Significant challenges have been identified that will impact on the development of Biorefineries and biomass value chains: access to and competition for biomass in sufficient quantities to ensure long-term viability; defining sustainable practices appropriate for the growth and collection of biomass; development of logistics systems to ensure efficient collection, delivery and storage of biomass; accessing sufficient capital investment to establish new Biorefineries of sufficient scale or to retrofit existing pulp mills utilising temperate biomass; overcoming the low level of research and development (R&D) by Scottish companies across the value chain and by research institutions into development of bio based products from biomass transformation; identification of bio based products capable of direct substitution or replacement in the Scottish chemical industries; overcoming the inertia in Scottish chemical industries to look at import replacement strategies, perceptions and concerns by some sections of the community and governments over the environmental impacts of biomass collection either from forests or from farms; limited understanding by governments, researchers and communities of the potential role Biorefineries could play in the establishment of new industries, new jobs and regional development and valuing biomass for bio based products such renewable chemicals and plastics could place pressure on existing uses of the biomass Competitive Advantages: Scotland has a number of significant competitive advantages that would enhance the development of biomass value chains and bio based products industry. It has a highly skilled workforce in some key areas of the value chain, an attractive business environment, a relatively inexpensive and ample supply chain for biomass and a regulatory framework across the value chain that can deliver environmentally sustainable biomass to Biorefineries. Each component of the value chain could provide significant uplifts in value to provide for long-term sustainable industry growth based on developing domestic and export markets. This would create a significant number of new jobs, new companies and revitalise rural sectors. The ability to integrate across the value chain exists during the development of the industry. Bringing investors, government, research and the chemical, forest, transportation and agricultural sectors together into a focused industry-wide plan provides Scotland with a significant competitive advantage. The plan must be supported by government to reduce the risk to capital investment and access to technologies. Opportunities: The key drivers of change; energy and food security, climate change and spiralling costs from the fossil industry oil and chemicals industry create opportunities for Scotland to develop a sustainable energy and chemicals sector. The way forward will be based on strategies that are realistic, have scale, increase investment and innovation across the value chain for temperate biomass to renewable chemicals and materials. The development of a bio based industry around temperate biomass has the potential to add hundreds of millions pounds from domestic production and from exports. Key opportunities exist to add value to biomass by; ensuring an adequate price is provided to the producers; enhancing the efficiency of transport; ensuring supply of biomass is year round and is consistent in quality and quantity; co-ordination across governments and the sectors of the value chain; improving the innovation framework for chemical and plastics sector in Scotland; accessing international technology and best practice for the development of Biorefineries for fuel, food and chemicals; providing adequate skills development and training opportunities across the value chain to ensure Scottish workers can meet the demands of growing industries; providing a long-term, sustainable future for the agro technical industries, and maintaining linkages between the development of the chemicals, bioenergy, and farming sectors. Innovation: Innovation is the key component to drive new industry development. Ethyl acetate and acetic acid are two in-demand chemicals that are also chemically quite close to ethanol. However, research and development in this area is limited in Scotland and requires significant coordination and funding. The development of smaller scale (thousands of tonnes versus millions of tonnes) biomass transformation facilities will be economically viable given the right product mix and incentives from government to cross the valley of death in order to reach scale. National Benefit: Growing internationally competitive and profitable bio based products industries that are based on renewable biomass (temperate or tropical) will generate a range of national benefits. Most significantly, it can provide a basis for replacement of existing imported chemicals used within the manufacturing industry as oil production decreases and prices escalate. Synergies with the pulp and paper industry exist through development of a bio based products industry providing opportunities for diversification and value adding at existing mills, providing certainty for forest workers and mill operators. Actions to deliver Biorefineries and Biomass Value Chains: Achieving a vision for the development of a bio economy in Scotland, based on renewable and sustainable biomass transformation, will require a reformation in the way industry, community and governments work. The opportunity is large and the challenge is equally as large.

ScotiaAghelek.1306

A Biorefinery is a multi-disciplinary and complex concept addressing at the same time the production of value-added bio-products (chemical building blocks, materials), and bioenergy (biofuels, power and heat) from biomass, within a sustainability assessment carried out along the entire value chain and life cycle. Development of sustainable biorefineries calls for research, development and integration of innovative technologies to prove the technical and economical viability related to the entire value chain (biomass production, biomass conversion, safe recycling and/or disposal of waste, conformity of end-products to end-user requirements) of advanced biorefineries. This concept attempts to integrate the different scientific and industrial communities with the expectation to achieve a break-through beyond the "business as usual" scenario. The development and implementation of Biorefinery processes is of crucial importance for building a bio-based economy. However, most of the existing Biorefinery concepts use limited feedstock and technologies. They solely produce ethanol or biodiesel and generally keep focusing on producing biofuels, with the consequence of substantially reducing the added value of the biomass chain. Moreover, the standard Biorefinery concepts use massive economies of scale at one dedicated site in order to achieve higher performance and optimise along few product lines (e.g. liquid biofuels and electricity, basic biochemicals plus ethanol or biodiesel).

The ScotiaAghelek.1306 project is an ambitious Biorefinery approach aiming at demonstrating the technical and economic viability of the synergy of the biomass agro-industry with chemical, biochemical and thermochemical conversion processes and technologies that will be combined so as to optimise production routes of high added value novel bio fuels, dietary oils, chemicals and polymers as well as protein isolates and concentrates. The final objective is to show in pilot and/or commercial industrial plants the feasibility of the Biorefinery and demonstrate some of the sub-processes in industrial pilot plants. The integration of all the elements will be designed for a large or small-scale production in order to enable adaptation in various EU and least developed regions, and will take into consideration life cycle management, socio-economic constraints and policy rule issues. The ScotiaAghelek.1306 project will bridge the gap between agriculture and chemical industry by integrating the whole biomass chain in a multi-feedstock, multi-process, commercially viable multi-products and adaptable approach for a sustainable bio economy in Scotland. ScotiaAgheleks objective is to establish a complete Agriculture to Industry Biorefinery for the delivery of branded TOMS Bio transport fuel, modified oils and added value protein isolate commodities into the Scottish highland & islands market place.. While developing know-how That can form the basis of considerable technical export opportunities.

ScotiaAghelek.1306

ScotiaAghelek.1306

ScotiaAghelek.1306

Maximising Opportunities from Industrial Biotechnology

TOMS -Triglycerides of Modified Structure, Renewable Energy & PROTEIN ISOLATES

Scottish liquid Biofuel & Food Oil with Bio Renewable Product values from the complete OSR harvest.

ScotiaAghelek.1306 Ltd.
www.scotiaaghelek1306.com

The History of the clan Aghelek,

There are conflicting opinions on the origin of this family, with some saying that the lands lay in the county of Angus, while others recognise the barony of Auchinleck in Ayrshire, in 1300 the Laird of Auchinleck is believed to have followed William Wallace to Glasgow to Kill Earl Percy of Northumbria. John Aghelek, or Achinfleck, is the first record of the name in 1306. The name itself could be purely descriptive of the topography, with 'auchen' describing raised areas of land separating water, and 'lech' referring to death, in sense of barren land. One of the daughters of Sir John Auchinleck married into the family of Boswell. Alexander Boswell was elevated to the bench in 1756, assuming the title of Lord Auchinleck, and his son Jame was the famous biographer of Samuel Johnson. Britain's greatest general Field Marshal Sir Claude Auchinleck was the British commander-in-chief in India until Winston Churchill assigned him to Egypt to lead the Allies in their offensive there in 1941. He lead the British 8th Army at the first Battle of El Alamein, but was not victorious, and he was replaced by Bernard Montgomery (later Field Marshall Montgomery). Without the Auck's victory in the critically important defensive (first) battle of Alamein, where the 8th Army stopped Rommel dead in his tracks, the later Battle of Alamein could not have been achieved. The first battle at Alamein was gruelling but vital, and led on to the second. His achievement was understandably overshadowed by the uplifting victory of the 8th Army under Montgomery, but hopefully history will give 'The Auck' due credit for laying the ground so well for Monty.
ScotiaAghelek 1306 Ltd: Seeks to emulate the courageous spirit of the clan Aghelek.

ScotiaAghelek.1306

Summary
The ScotiaAghelek.1306 Ltd project BOP(Biorefined Oilseed Products) is focused on oil seed rape (OSR) with the objective to develop products tailored to meet functional requirements within different food and non food markets, including renewable bio energy, in the UK & Europe. The target is to establish a complex Biorefinery in the North East of Scotland strategically located to derive the least cost logistical values associated with farm derived as well as industrial bio chemical supplies as inputs and, routes to markets B2B, direct to downstream product development packaging and distribution, direct to wholesale-retail and as direct resources for the Biorefinery operations (GHP) for cost reductions. The North East of Scotland as well as selected additional areas within Scotland are considered to be among the finest areas in the European area for the cultivation of oil seed rape varieties. Scotland has a tradition of cultivating OSR as a break rotation crop gaining average yields in excess of 2.5 MT of grain per Ha, generally with excellent oil content.

Scotland's farmers produced over 115,000 tonnes of oilseed rape in 2008 In 2008, 33,000 hectares of oilseed rape were grown in Scotland. In 2011/12 64,000 Has of OSR have been planted with an estimate for 160,000 MT. With crop management improvements, economic stimulus and demand led impacts Scottish Farm lands could produce considerably more than this. Notably, evaluations have suggested that all areas in Scotland can support increased cultivation of OSR in response to progressive market demand. The Scottish Biomass Action Plan has been informed by the EU Biomass Action Plan, and shares its aims of promoting economic growth, commitment to renewables and diversification of supply. The ScotiaAghelek.1306 ltd proposal set out in this overview to seek to support the Scottish executives ideologies on Climate Change while emphasising the very real opportunity to establish technologies and know-how that hold exceptional products to market values with major future export of technology potentials. Scotland has complimentary regulation and planning, notably the update of Scottish Planning Policy paper SPP6, guidance outlines a strategic framework for renewables development, and encourages the identification of sites for new biomass -Biorefinery plants through the development planning process. Projects can attract financial support through the Scottish Executive. The main source of financial support is the Renewables Obligation (Scotland)and the current review of the Obligation will seek to increase biomass use. The Executive recognises the benefits of generating heat and power together and is keen to encourage the further development of CHP, Scotland is already performing better than the UK average. Support for biofuel crops is available under the Land Management Contracts implemented as part of the Rural Development Plan for Scotland in 2007/8 Biomass supply is a key issue in Scotland. In Europe, supply chains are well-developed. While in Scotland there is a need for improved assessment of available and future resource, and capacity building; this has been identified as a barrier to growth and development of the sector. The advent of a complex Biorefinery designed to have highly demanded outputs into the B2B, FMCG, and new products development sectors will have a direct positive impact upon the vitality of farming to engage further with the cultivation of OSR. The key incentive for growth in the biofuels sector is the Renewables Transport Fuels Obligation (RTFO) with the UK target for transport biofuel sales of 5%. The Scottish Executive has adopted this target and supports the introduction of the RTFO.

ScotiaAghelek.1306

There is a high level of interest from the farming sector in the production of energy crops, with oil seed rape being the major biofuel feedstock grown in Scotland. Market confidence grew considerably with the announcement of two major biodiesel processing plants in Scotland 2007/8 to be situated at Grangemouth and Rosyth. Most unfortunately, both projects were shelved by 2009 due to inter-corporate competition in the case of INEOS (proposed 300,000 MT production of Biodiesel p.a.) and lack of funding for Rosyth. Neither of these previous proposals were focused upon the sustained use of Scottish grown OSR and neither considered the necessity of adopting a complete Biorefinery approach to the potentials that are held within the OSR harvest. While there is financial support available to farmers to grow energy crops (through the Aid for Energy Crops scheme), the main drivers for future growth are expected to be market led this being the priority of ScotiaAghelek.1306 Ltd to establish and drive forward. The coordination of biomass policy across the Executive is led by the Renewables and Consents Policy Unit, part of the Energy and Telecommunications Division within the Enterprise, Transport and Lifelong Learning Department. The Interdepartmental Bioenergy Group, comprising relevant Executive policy areas, will oversee the implementation of the Plan and ensure that biomass policy is developed in a way that ensures all diverse interests are considered. However, there is a key role for both public authorities and business in progressing the overall aims of the plan. The Executive has made a commitment to work closely with Scottish stakeholders to ensure the Plan continues to be relevant and provides the strategic framework for realising the full potential that a vibrant biomass sector can bring to Scotland. Maintaining the high quality of the environment is an important element in the development of a sustainable biomass industry, with potential impacts on soil and water quality, air quality, biodiversity, landscape and GHG emissions. Impacts on the environment from the development of the raw material and use of these to manufacture renewable outputs has been the long term interest of the ScotiaAgheleks founders where they have engaged a national and multinational levels for over 30 years. The ScotiaAghelek Biorefinery is conceptualised to be designed build and commissioned for operation according the core principles that drive the notion of sustainable industry.

The executive, associates, partners and member of ScotiaAghelek.1306 Ltd have the intention to develop a vibrant enterprise model that embraces the positive ideologies expressed above from a professional commercial standpoint that introduces tried and tested patented methodologies with associated advanced technologies for the production of both high value added renewable energy fuels and advanced dietary oil as well as protein isolate concentrates from complex Biorefinery operations that are sustainable Economically, Socially and Environmentally.

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BRIEF DESCRIPTION OF PROJECT OBJECTIVES:

ScotiaAghelek.1306 Ltd has the intention to take a lead role in : the Oils, Fats, Human and Animal protein industries, the Detergents, Surfactants and related Chemical industries, the Oleochemical and Biodiesel industries. In order to succeed in its mission, ScotiaAghelek.1306 intends to be involved in every aspect of the industry: Research , Marketing, Processing, adding value to Products. The company strategy involves maintaining a balanced presence in key fields related to nutrition and the environment: Human and Animal nutrition, Renewable Energy and Renewable Chemistry Development. Targeting the North East of Scotland as its primary enterprise development region and project base: ScotiaAghelek.1306 Ltd has the intention to design, build and construct for operation, complex bio refineries at strategic global locations for the manufacture of its TOMS biofuels and light low calorie plant oils using primary oil seed feedstocks for this purpose, and so generating large volumes of both human and animal food biomass that also have application for the general bio renewables industries. (Bio Polymers, Bio Plastics and various extracted Bio Chemical and Protein Isolates) ScotiaAghelek1306 Ltd will enter into long term procurement agreements with selected refined fossil fuel companies, blenders, and distribution organisations to produce a branded range of TOMS bio fuels and blended fuels that comply with the policy directives of the EU. As and where enterprise is established ScotiaAghelek.1306 Ltd will engage with the production of low calorie oils for food and industrial utility as well as the production, manufacture and marketing of deoiled value added seed cake commodities; Protein Isolates. Activities will include: Oils & Fats Technologies, Preparation, Pressing, Extraction, Refining, Fat Modification. Chemicals for Life, Detergents, Surfactants & Chemicals, Oleochemicals & Biodiesel. Commissioning: Oilseeds & Feedmill Equipment, Bio Solvent Extraction Equipment.

SPONSORSHIP, MANAGEMENT & TECHNICAL ASSISTANCE:

The founders of ScotiaAghelek.1306 Ltd are: Mr Michael Starkie. Senior executive BP Plc. Dr. Janos Thesz. Inventor of TOMS methodology, Senior Chemist Hungary. Dr.Jens Lttke, Technical Director. Germany. Dr. Clive Richardson. Development Policy Analysis and Management Consultant. Mr Carl Gunnar Harstrup. Procurement Specialist Civil Engineer. Mr Lars Aage H. Christiansen. Financial Analyst. The anticipated EPC partners/suppliers of technical scientific inputs for Scotia Aghelek.1306 Ltd are www.desmetballestra.com http://www.sofiproteol.com/ http://www.alvanblanch.co.uk/ http://www.niroinc.com/about/about_niro_inc.asp http://www.bioexx.com/page/about-us http://www.burcon.ca/about_burcon.php as global leaders in the target sectors for ScotiaAghelek1306 Ltd. The enterprise for ScotiaAghelek1306 Ltd is to locate in the North East Scotland Oil Seed Rape agricultural counties. Establishing relations with the Biosciences KTN IB Sector Team https://connect.innovateuk.org/web/biosciencesktn

Primary management will be undertaken by the above partners.

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ScotiaAghelek.1306 Ltd.'s MARKET ORIENTATION:

ScotiaAghelek.1306 is to establish as a primary partner with the agricultural communities at local levels and regional councils, delivering bio fuels and blended transport/home fuels to market under branded titles to the wholesale and retail sectors. This being complimented with the delivery of light oils for food and/or industry applications alongside wholesale operations for the sale and distribution of deoiled value added Rape Meal Protein isolate commodities. ScotiaAghelek outputs will be directly to local-regional markets while the advance of the methodologies will be employed at international levels. Projected production volumes are anticipated to be Bio Fuels, Light oils 40,000 MT p.a. by 2014 at an average to market value of +/- 1,200 GBP/MT sales objective 48,000,000 GBP with net market share of +40% for the proposed venture in this sector. TOMS Blending sales to fuel distribution arrangements may reach 800,000 MT p.a. @ 5% blend; the current Government policy. Sales of deoiled Rape Meal and value added protein products will be in the region of 2,000 GBP/MT and 21,000 MT in volume p.a. sales objective 42,000,000 Total revenue target 2014 90,000,000 (Currently unenhanced bulk RSM trades at 185 GBP/MT potential as a bland stock sale; therefore 11,100,000 considerably less than refined protein isolates of the ScotiaAghelek ideology.) Scottish farmers currently loose + 20/MT off the value of their farm gate invoice due to transport costs.

NB Research by EU partners has showed that a number of useful products may be obtained (or prepared) from the deoiled OSR meal. For example, around 40% crude proteins may be extracted from OSR meal (see following descriptions) for high value uses such as synthesis of polymer materials; alternative to synthetic plastics; extracts with pesticidal and fungicidal action for plant protection; glues, adhesives, products for cosmetics and paper industry; and natural dispersants for addition to detergents to aid shifting of grease and grime. Further details of these developments can be found at the website <http://www.nf-2000.org/secure/FP5/F1186.htm>.The research has also highlighted the need for further research to fully exploit the bioactive components identified in OSR at a commercial scale. Additional research is also needed to identify other yet-unexplored high-value components in OSR meal.

Potential users of products are the Councils of Scotland, Farming communities, and throughout the regions general wholesale/retail distribution channels as branded products, home heating and off grid power generation are considered significant markets alongside direct transport fuels. Presently Scotland's sources of supply for Bio Fuel products are both direct and indirect imports as blended fuels, as well as those produced from tallow in Scotland by Argent Oils Ltd. Risks of future competition and the possibility that market may be satisfied by substitute products is limited. Risks that tariff protections or import restrictions affecting products is limited however; the UK Biofuels sectors have suffered from low cost products swamping the market. As regionally produced and consumed bio renewable fuels and products have most carbon positive sensitivities there is agreeable policy in support of ScotiaAghelek ideologies. The critical factors that determine market potential are continual supplies of least cost primary feedstocks tied to direct logistical competencies in support of sales while revenues from sales require to be market sensitive.

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TECHNICAL FEASIBILITY, MANPOWER, RAW MATERIAL RESOURCES & ENVIRONMENT:

TOMS -Triglycerides of Modified Structure:
A brief introduction to TOMS bio fuels. Patented Bio Fuel production methodology and protected separation IP. Biodiesel can cost lower than diesel: One of the reasons why biodiesel production is not growing fast enough, as was previously expected, is that fossil diesel is more cost-efficient. Part of the survival of the biodiesel industry depends on whether the product cost can be made equal to or lower than that of diesel. This has proven to be a challenge for biodiesel proponents and business owners alike. Our solution is TOMS. For the sake of clarity, let us state that there is a TOMS1 Methodology and a TOMS2 Methodology. TOMS2 is a logical extension of TOMS1 evolved to counter the food V/s fuel debate as the potentials are to produce food and fuel oils from oil seed grains primary triglyceride resources. The methodologies are compatible with the global leading technology process engineering profiles. The manufacturing of TOMS bio fuels 1 & 2 does not create a glycerol stream, there is no waste and no water phase. TOMS 1 can make use of either (Bio)Ethyl Acetate or Methyl Acetate in order to manufacture a Bio Fuel (Diesel) type with properties that have numerous improvements over traditional Biodiesel (FAME). Both are stand alone novel bio diesel types. Our aim is to establish EN certifications for these two fuel types. Both fuel types can have variable viscosities that enable the replacement of D2 and D4 fuel types. Further both can be delivered in a bespoke form that will allow for much improved Cold Flow Properties; up to 18 C. (Bio)Ethyl acetate is a solvent used in printing inks, varnishes and in the manufacture of enamels, plastics and rubber. It is also used for manufacturing flavours for the food industry as well as extraction solvent in the production of pharmaceuticals. Among the organic solvents, (Bio)Ethyl Acetate is considered to be one of the most environmental friendly. The burn characteristic of both fuels has many improvements over petroleum diesel and FAME bio diesel. In the case of (Bio)Ethyl Ester being the reagent in the presence of a biological catalyst TOMS 1 can be 100% biologically derived bio fuel. 93% if Methyl Ester is used. TOMS2 is an advance of the TOMS1 methodology and is especially interesting when working with virgin plant Oils and/or animal triglycerides. It is possible, in the case of manufacture with Ethyl Ester, to separate the TOMS bio fuel into 100% Pure Fatty Acid Ethyl Ester (FAEE) (50%) and Light commercial plant oils.(50%). FAEE can command a high value as a stand alone bio fuel type while the light plant oils have high demand values for a broad spectrum of commercial food and industry applications. For the moment we are aware that FAME is the popularised and well marketed global bio diesel standard, unfortunately to the exclusion of more attractive bio fuels like TOMS, something we will seek to change. However, when TOMS are manufactured using Methyl Ester it is possible to separate out 100% pure FAME (48%) and light commercial plant oils (52%). Yes, there is a third Bio fuel product to be considered as there is nothing to prevent the blending of FAME & FAEE to surrender an additional high value product. FAME and FAEE are both covered by the EN 14214 standard. All together 5 fuel types are considered: 1 TOMS Etac T100 Direct use for off grid Generators and for Diesel vehicles. 2 TOMS Mtac T100 Direct use for off grid Generators and for Diesel vehicles. 3.TOMS Derived FAEE 100% pure Direct use for Diesel Vehicles. 4 TOMS Derived FAME 100% pure Direct use for Diesel Vehicles. NB: Derived FAME and FAEE would require no expensive distillations. 5 TOMS Derived FAEE/FAME blend. Direct use for Diesel Vehicles.

Finally, there are the TOMS Derived light commercial oils. (food grade - also commercially attractive to the biopolymer markets). You may assume that these light oils will have characteristics that place them in a very unique bracket, this would be a correct assumption. We are well aware that there is no other commercial plant or animal oils company producing TOMS derived light oils. An established manufacturing Biorefinery plant balanced output would produce 50% bio fuel and 50% Light food oils.

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TOMS - TRIGLICERIDES OF MODIFIED STRUCTURE NOVEL BIODIESEL Toms methodology produces modified triglycerides by way of interesterification of triglycerides with Alkyl esters of short chain fatty acids (practically working with bio ethyl acetate as the reagent), whereby a mixture of reduced molecular mass modified triglycerides (with lowered viscosities, superior cold properties, etc.) And alkyl esters of displaced biomass fatty acids (i.e. Conventional biodiesel) are formed in an equilibrium reaction, the rate of trans-formation being controlled by sufficient excess of bio ethyl acetate. NB: While via genetic engineering only one acetyl group containing modified triglyceride can be produced, in our chemical pathway we can attain any acetyl-content (statistically speaking) thus we are capable of manufacturing modified triglycerides applicable as substitutes of no. 2. Diesel oil as well as no. 4 diesel. With this patented methodology the glycerol back-bone of biomass triglycerides is retained as part of the fuel. Owing to this and also the incorporation of ethyl acetate, out of a unit of, oil we get 10 17% more fuel, producing far superior fuel properties over conventional biodiesel. The advance upon these fuel properties are "designer oils where we emphasis our novel light oils utility for novel biopolymers, with "unexpected" properties. ScotiaAghelek.1306 Ltd has the aim of: Establishing - interesterification Bio fuel methodology as a mainstream sustainable commercial approach to the production of superior liquid bio fuel.

We so modify naturally occurring, high molecular mass and hence high viscosity triglycerides, so as to replace a certain % of original long (C16 C22) fatty acid chains with short ones (for practical reasons: with C2, i.e. acetyl, via partial interestification with methyl/ethyl acetate), whereby owing to molecular mass reduction we get lowered viscosity aceto glycerides plus methyl/ethyl esters (FAME/FAEE) of displaced fatty acids, thus the overall viscosity of this fuel mixture being approximately 6 cSt. Owing to retention of the glycerol backbone + incorporation of (m)ethyl-acetate moieties into the fuel, out of a single unit of feed-stock oil we get a 10 - 17% excess of fuel, which is an inherently oxygenated one, with around 37 MJ/kg calorific value (however having a specific gravity of 0.91 - 0.92, this offsetting in terms of volumetric energy density). The glycerol structure ensures excellent cold properties (gelling point being - 15 C on rapeseed oil based fuel, vs. 0C for FAME), owing to dilution of double bonds our iodine number is always lower than that of FAME/FAEE, etc. Depending on feedstock/excess ethyl acetate used, we can influence fuel (viscosity) properties within quite broad limits (e.g.: Making the equivalent of no.4. Diesel for heavy duty vehicles-generator fuels as well as lighter no 2, etc.). When bio ethyl acetate is used in the TOMS fuel feedstock the fuel is to be considered 100% renewable. Use of a bio catalyst ensures that the TOMS bio fuel is 100% non-fossil derived bio fuel.

Prizes at Salons in: GENEVA: GOLDKUALA L.: GOLDWARSAW: GOLDZAGREB. GOLD TAIPEI: SILVERNRNBERG: SILVERBELGRADE: GOLDBPEST: GENIUS DIP. BIO FUEL INVENTION OF 2007.

ScotiaAghelek TOMS methodology produces oil through bio solvent extraction, avoiding the use of any fossil based chemicals, thus lowering the overall environmental impact from our Biorefinery. The extraction technique retains the natural antioxidants and the characteristic smooth nutty flavour while ensuring that variable products can be obtained. The oil may be further refined to produce TOMS that are designed bespoke exactly to the requirements of a particular function.

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EVALUATION OF TOMS bio fuel: VISCOSITY: 5 V 6 cst at 40C (MEETS PRESENT STANDARDS) CLOUD POINT: - 12 > -15C (SUPERIOR!) FLASH POINT: >250xc (SUPERIOR!) SPEC. GRAVITY at 15C: 0,91 (3.4% GREATER VOLUMETRIC ENERGY DENSITY) COPPER STRIP CORROSION: class 1a (meets present standards) MOTOR TESTS (10% BLEND WITH PETRODIESEL): same as FAME bio diesel EMISSIONS: SUPERIOR TO FAME bio diesel (50% LESS SMOKE!) Meets German qualitatsstandard but no preheating is required!!

Janos Thesz holds two fuel samples: Left (Dark coloured Conventional Biodiesel + Glycerol) Right (light coloured TOMS-Biodiesel)

JANOS THESZ has developed an entirely new process creating an innovative biofuel. INTERLECTUAL PROPERTY RIGHTS OWNER OF PATENT GRANTED AND OVER 50 INTERNATIONAL REGISTRATIONS

TOMS -Triglycerides of Modified Structure

TOMS1 is a first class patented methodology invented by Dr Janos Thesz. TOMS 2 is a registered and protected Intellectual property invented by Dr Janos Thesz one of the founders of ScotiaAghelek.1306 Ltd.

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FLOW PROCESS FOR TOMS 1

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ScotiaAghelek.1306

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TOMS 2 SEPARATION TO TOMS LowC + FAEE (FATTY ACID ETHYL ESTER.

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Commercial Rapeseed Protein Isolates

ScotiaAghelek.1306 Ltd is to be the first company to develop and commercialize Rapeseed protein in the United Kingdom, a novel protein resource that is functional and nutritionally complete. Founded in 2012 and headquartered in NE Scotland, ScotiaAgheleck.1306 is a Scottish company incorporated to pioneered ground breaking, proprietary technology to naturally process oilseeds into fuel and food-grade oils and proteins, at low temperatures, without the use of noxious solvents. This results in the creation of a much higher quality fuels, food oils and protein than has ever been possible before. With sustainability assessments that are, under any evaluation, impressive. These innovations competitively positions ScotiaAgheleck.1306 Ltd to add significant value to the fuel - food chain by producing quality fuel, modified food oils and protein from OSR grains that has been previously limited. ScotiaAgheleck.1306 Ltd will activate commercially, swiftly producing the complete food-grade protein from a major global crop for Human Nutrition, as well as food-grade modified Rape Oil and Meal for animal feed at its Bio-refinery in conjunction with exceptional fuel oils possessed of superior novel characteristics and those that exceed the EN approved standards for Biodiesel. The companys low energy requirement environmentally sound processes high yield production is a sustainable model that may be replicated to make a valuable contribution to solving the global issue of fuel & food scarcity. MARKETS / FOOD ScotiaAghelek patented and proprietary technology has unlocked OSR as another source of high quality plant protein for human consumption. ScotiaAgheleks introduction of commercial OSR Protein Isolates marks a new era for a massive global market, with applications ranging from sport-drink to general food use, clinical and advanced adult therapeutic nutrition and ultimately to child and infant foods. SPORTS NUTRITION Sports nutrition is rapidly growing as consumers seek options to improve their overall health. From protein bars to drinks, Sports nutrition products help the body maintain, repair and build muscle. PAEDIATRIC NUTRITION Child and Infant nutrition requires the highest level of confidence in safety of the protein both from a nutritional and immunological perspective. ADULT/THERAPEUTIC NUTRITION Nutritional requirements change substantially as one ages: elevated needs for protein and nutrients coincide with declining appetite. The excellent amino acid profile of canola can help maintain the protein balance and sustain health. A KEY PART OF FOOD FORMULATIONS ScotiaAghelek OSR protein has high functionality due to its un-denatured character, which makes it valuable for use in food formulations such as bakery, emulsions, foaming and meat applications to extend and build structure as well as give nutritional value. SPECIALIZED MARKETS ScotiaAghelek OSR proteins are also appropriate for vegan, gluten-free and lactose intolerant markets. Vegetable protein isolates are commonly used for their nutritive value and to replace animal proteins omitted from the diet. MARKETS / OIL Numerous studies have shown that the fatty acid distribution found in Canola oil has significant positive effects on the health of consumers moving away from more saturated dietary fats. Canola Oil has been shown to lower blood cholesterol levels and has a beneficial effect on clot formation, thereby decreasing the risk of heart disease and stroke

ScotiaAghelek TOMS methodology produces oil through bio solvent extraction, avoiding the use of any fossil based chemicals, thus lowering the overall environmental impact from our Bio-refinery. The extraction technique retains the natural antioxidants and the characteristic smooth nutty flavour while ensuring that variable products can be obtained. The oil may be further refined to produce TOMS that are designed bespoke exact the requirements of a particular function.

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GREEN CHEMICALS AND BIOPOLYMERS FROM RAPESEED MEAL WITH ENHANCED END-PERFORMANCES.

Industrial Biotechnology Platform: The industry led technology platform on sustainable chemistry which brings together the leading chemical industries with the new emerging biotechnology sector was launched in 2004 in recognition that biotechnology has an important contribution to make to a sustainable and competitive chemical industry. The platform is a multi-stakeholder forum, involving other industrial stakeholders such as the textile industry, detergents, the pulp and paper industries, and is designed to develop a European strategic research agenda and carry out joint research projects. Industrial Biotechnology or white biotech is a multidisciplinary technology, which can be used to produce goods on an industrial scale, while respecting the environment and has shown to be good for people, planet and profit. The technology uses all the tricks that life and nature provide to produce goods like antibiotics, detergents, plastics and fuels. Rapeseed is the most important source of edible plant oil and animal feed protein in Scotland, as well as an important bio-energy crop. Rape seed is a major crop worldwide Rapeseed meal contains 35~45protein after extracting the oil, the amino acid composition of which is . well-balanced in regard to FAO requirements and is rich in sulphur-containing amino acids and lysine; generally the limiting constituent in both legumes and cereals. Rapeseed protein is a very good complete protein and worthy of development for full value utilization. The main objectives of ScotiaAghelek.1306 Ltd are: 1) 2) 3) 4) 5) 6) 7) to to to to to to to evaluate the market and the competitive position of Scottish oilseed proteins in food and non food markets improve the quality of industrial rapeseed meal by developing a new oil extraction process (use of (Bio) Ethyl Acetate. improve knowledge of the structure/function relationship of the various protein types in rapeseed, as native or modified protein develop a protein extraction process adapted to rapeseed meal and the provision of high quality proteins develop modification processes to enhance and diversify protein functionality evaluate the potential of protein-enriched fractions for glues, adhesives, coatings and films evaluate the potential of protein enriched fractions as surfactants for cosmetics, detergents and wetting agents.

Rapeseed: After oil extraction, a protein-rich meal results and, this is usually used for animal feeds or fertilizers. The crude protein content of soy protein isolate (SPI) in the industrial production can easily reach 90%. Compared with SPI, rapeseed protein has lower crude protein content and poorer colour even using the similar preparation process. Reasons: 1 Compared with SPI, the components of rapeseed protein are more complex their point and molecular weight has a large distribution range. Part of the protein, its isoelectric point, reach's as high as 11 , other proteins isoelectric point distributed at 4~8. 2 Cellulose content in rapeseed meal is higher than soybean meal, and there are anti-nutrients and toxic substances in rapeseed meal of which none are in soybean meal. There is big difference in Chemical composition, functional properties, and bioactivities between rapeseed protein and soybean protein. The high content of crude protein in relation to its market price makes rape meal a popular and widespread protein supplement in animal feed. In the past the part played by rape meal in animal food rations was limited because of unwanted substances especially erucic acid and glucosinolates. Both depress food intake by making it much less palatable. The deciding factor which has brought about the success of the widespread use of rape meal in animal nutrition as seen today has been the development of new varieties with very low contents of erucic acid and glucosinolates (double low or 00-varieties). It has thus been possible to produce rape meal with a content of glucosinolates not higher than 20 mmol/kg seed or 35mmol/kg extracted meal.

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OSR protein is widely accepted as a high quality plant based protein. It has an excellent balance of amino acids, low antigenicity and has the highest Protein Efficiency Ratio of all commercial plant based sources. Unfortunately, canola protein is currently available only in OSR meal, a non-optimized product which impairs the value of OSR protein. The Company's technology converts OSR meal into multiple by-product streams: protein concentrates, customized fibre protein products and other co-products tailored to maximize value in their respective markets and generate significant value in excess of that derived from OSR meal. OSR is an world crop. OSR is grown primarily for its oil which is used extensively in the food industry. Additionally, it is also becoming increasingly important in the European bio-diesel industry. The oil makes up approximately 40% of the OSR seed. The 60% of the seed remaining after crushing and oil extraction is known as OSR meal and is sold as a low value feed ingredient in animal nutrition markets.

OSR is dependent upon two products to drive demand, oil and meal. This is in sharp contrast to soybeans, the world's leading oil seed, which is grown for the oil but also for the myriad of other food ingredients generated from the non-oil portion of the bean. The large number of products created from soybeans provides diversification of market and demand, resulting in stable crush margins and steady profitability. OSR, with only two products to drive demand, has experienced much greater volatility in crush margins. If the OSR business is to continue to be sustainable, it must create new products and new sources of demand. ScotiaAghelek technology addresses this need. OSR meal contains approximately 36% protein. OSR protein is of high quality because of its good balance of essential amino acids and the low molecular weight of the major storage protein. The amino acid balance provides excellent nutritional value and the low molecular weight results in very low antigenicity, which suggests that food allergenicity issues will be minimal. A commonly used measure of protein quality is the Protein Efficiency Ratio (PER) which compares the total weight gain of a growing animal to the weight of protein consumed over the growing period. Based on this measure, OSR protein has been shown to be superior to other plant based sources such as soy and pea and competitive with milk and beef. (Source: Sarwar et al.) Plant Proteins PER Animal Proteins PER Canola 3.29 Egg white 3.71 Soy 1.60 Minced beef 3.36 Pea 1.56 Casein (milk) 3.13 OSR meal also contains high levels of fibre (12%) and phytate (3.1%) which significantly impair the nutritional value of the composite OSR meal product. The maximum potential of non-oil OSR can only be realized through fractionation and targeted processing and this is the opportunity ScotiaAghelek seeks to exploit. Through proprietary, patent-pending processing, ScotiaAghelek fractionates the OSR meal into separate by-product streams which are optimally tailored to end user markets and, in so doing, resolves OSR meals sub-optimal combination of elements. ScotiaAgheleks process utilizes aqueous extraction techniques, enzyme treatment and standard filtration equipment to separate meal into the following product streams: SA OSRPRO IP INSOLUBLE PROTEIN Key Features: High quality insoluble protein concentrate. Low molecular weight, low antigenicity. Low phytate Economically attractive substitute for fishmeal, soy protein concentrates and animal-based proteins SA OSRPRO SP SOLUBLE PROTEIN Key Features High quality soluble protein concentrate Low molecular weight, low antigenicity Low phytate Economically attractive substitute ingredient in products where solubility is key, such as milk replacers SA OSRPRO FP FIBRE PROTEIN Key Features High quality insoluble protein Low molecular weight, low antigenicity Economically attractive ruminant feed ingredient SA OSRSUGAR Key Features Soluble sugar concentrate In combination with OSR Pro FP, results in an alfalfa-like nutritional profile ScotiaAghelek.1306 20

ScotiaAghelek seeks to introduce OSR-based bio products initially to the animal feed industry and, once the technology is established at a commercial scale, to human cosmetic and food markets. ScotiaAgheleks strategy is to validate its technology on a commercial scale in the lower risk animal nutrition markets and then expand into the higher value, higher return and higher risk human markets. This strategy is based on the following perceptions: Animal feed markets have lower regulatory, commercial and technical risk than human markets. It is easier to place large volumes in the animal feed markets, thereby more efficiently consuming the capacity of the initial production plant. Animal nutrition is not primary area of expertise of the founders of the Company. Recent events have created a market ripe for new plant based protein sources. The Mad Cow disease problem in Europe has resulted in bans on meat and bone meal as protein sources in animal feeds. Import bans on meat and bone meal have also been imposed in Japan. In addition, there is increased scrutiny on feed additives such as antibiotics and their impact on animal and human health. All of this has producers seeking safe, natural, high quality food sources to sustain and safeguard their assets and their markets. Of particular note is the aquaculture market, which through its explosive growth, is expected to outstrip its ability to generate sufficient feed from current sources, such as fish meal. MARKET FORCES ARE DRIVING DEMAND FOR PLANT PROTEINS.

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MARKET CONDITIONS DRIVING DEMAND FOR OSR BIOPRODUCTS

Aquaculture production has been expanding at a rate of 15% per year and is predicted to continue to grow dramatically in the future (Source: Feed Management). The largest cost component in this industry is feed and fish meal is the most important protein source in the fish feed recipe for salmon, trout and shrimp (these species consume 52% of pelleted fish feed production (Source: Feed Management)). Fish meal is a finite resource which cannot be produced in sufficient quantities to sustain aquacultures growth. Further, fish meal supply is subject to the vagaries of climate and fishing conditions and, therefore, pricing has historically been volatile. For these reasons, aquaculture seeks new protein sources to replace fish meal. Canola protein, with its good amino acid balance and low antigenicity is the leading plant based candidate to replace fish meal. In fact, prior research has shown that dephytinised OSR protein concentrate could entirely replace high quality fish meal in trout diets without adversely affecting performance, provided that the diet was simultaneously supplemented with Finnstim (a product used to enhance taste). (Prendergast et al.) Meat and Bone Meal Shunned by Regulators The bovine spongiform encephalopathy (BSE or Mad Cow Disease) problem has resulted in bans on meat and bone meal in Europe and import bans in Japan. This is creating a huge void in protein markets that must be filled with high quality plant-based alternatives. Canola protein is well positioned to fill this void. Genetically Modified Organisms (GMOs) Not Accepted in Europe The concern over GMOs in Europe shows no signs of relenting and the European food industry has no choice but to use only non-GMO ingredients. This extends to the feed used for livestock production. Because soybeans are not grown in Europe, soy protein users must maintain voluminous records tracing the source of the soybeans to prove that they come from non-GMO stock. Because non-GMO OSR is grown in Scotland compliance with non-GMO guidelines is a simple matter. One need only source seed from the abundant supply. OSR has great potential to be the non-GMO plant-based protein of choice in Europe.

OSR COMPETITIVE ADVANTAGE OSR protein has significant competitive advantages to support penetration of protein markets. OSR protein: is one of the highest quality plant-based protein sources is more abundant and supply is more predictable than fish meal does not create BSE worries and is not subject to bans is well suited to address the demand for non-GMO protein in Europe OSR bio products offer hungry markets a protein source which is:

High quality Natural Safe Abundant

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The protein composition of rape meal is favourable for animal and human nutrition. The amino acid composition of the protein decisively determines the quality of the protein. The essential amino acid content of rape meal is of generally good nutritional quality. The higher contents of methionine, cystine, and threonine in comparison to soybean meal are important . On the other hand, the content of lysine is lower and this must be taken into account if soybean meal is replaced by rape meal (Bell, 1990). Nevertheless, rape meal can compensate for the low lysine content of other animal foods such as cereals and milling by-products. Where sulphur containing amino acids(methionine and cystine) or threonine are limiting acids, in rations rape meal can improve the quality of diets. Oilseed rape is being grown throughout the world in increasing amounts. The uses of oilseed rape are very varied in human and animal nutrition as well as for technical purposes and in the chemical industry. Of the means available to increase economic yield, adequate nutrient supply and optimized fertilizer use play an important role. To safeguard high yields and to utilize the yield potential of new varieties to their full extent, nutrient availability has to be optimized. The farmer needs to make best use of efficient and balanced fertilizer application. This includes not only the traditional macronutrients nitrogen, phosphorus and potassium, but also magnesium, sulphur and lime as well as the micronutrients. Since 1991, virtually all rapeseed production in the European Union has shifted to rapeseed 00 (double zero), with low content of erucic acid and low content of glucosinolates. The production of rapeseed in the European Union is still conventional, that is does not contain GMO. Heat treatment (at 100C for 20 to 25 minutes) of rapeseed increases the metabolizable protein content of rapeseed cake in the diet for ruminants and the digestible protein for pigs. Heat treatment of rapeseed improves the nutritive value and the protein quality of rapeseed cake. Chemical composition and the nutritive value of rapeseed cake depend on processing conditions.

Plant capacity : 300 TPD

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A QUALITY INVESTMENT OPPORTUNITY. FROM AGRICULTURE TO INDUSTRY.

The oilseed-based refinery is represented most of the time by chemistry factories or biodiesel plants. However, this industrial sector cannot fit well with a bio refinery definition, since most plants do not seem to exchange materials or products between each other. In Europe one can mention a single oloeochemical industry in this sector, Novance, in France, that can be considered as refinery according to a complex definition. Indeed Novance, a subsidiary of a biodiesel industry (Diester Industrie) that produces and trades diester from semi-refined rapeseed oil (produced by Sofiproteol) and other oleo-products in the sectors of detergents, solvents, paints, resins... These added value products are mainly derived from glycerine, a major co-product of biodiesel production. TOMS methodology does not produce glycerol. A major success factor for this refinery development can be due to a good logistic transportation of oil, by 3 communication routes (railways, road, fluvial). Oleon in Belgium, also belonging to Sofiproteol, is another oil in-dustry producing various intermediates as substitutes of derived petroleum products for various markets (cosmetic, coating, lubricants, detergents,) The strategy of acquisition of Oleon by Sofoproteol allows the group to be present on the whole seed processing industry giving a leader position of the group on oil international trade . An illustration of various routes for production of high added-compounds is given above. One can also consider in this classification the waste oil based Biorefinery, where waste oil is collected separately and refined so that it can be used to produce biodiesel. Most of the time, the same process as the oil refinery can be used for waste oils, and in other cases used oil can be treated with all sorts of wastes. So it is a mix between oil refinery and waste refinery, depending on the dominance of the raw material. ScotiaAgheleks ideology is based on the complete use of primary harvest from oil seed rape while there can be consideration for the use of waste oils for the production of TOMS methodology bio fuels and Industrial oils but, not when considering the production of Light oils for food utility. http://www.biorefinery.nl/fileadmin/biopol/user/documents/PublicDeliverables/BIOPOL_D_4_2_PUBLIC_with_EUROVIEW_-_Final_100709_opt.pdf In March 2007 a close cooperation between the projects BIOREFINERY EUROVIEW (Project no. 044275 FP6-2005-SSP-5A) and BIOPOL (Project no.: 44336 FP6-2005-SSP-5A) was initiated. Through this cooperation, maximum added value should be created for further development of ad-vanced bio refineries in Europe. Among others, this involved joint efforts on mapping of existing and future bio refineries, which is a topic in both projects. The cooperation established between the two projects included a common survey of industrial acceptance of the Biorefinery concept and was strengthened during the course of the programs by a common mapping analysis. To enhance the added value, complementary approaches were chosen for finalization and upgrading this joint work. The results are reported in this combined re-port of the addenda of deliverables D1.2 Selection and description of existing platforms and D1.3. Mapping of existing European industrial Biorefinery sites and D 4.2 Note with results identification, classification and mapping of existing EU bio refineries from BIOREFINERY EUROVIEW and BIOPOL respectively.

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Oilseed crushing yields vegetable oils and protein meals as co-products. While vegetable oils are used for food and technical industry uses (pharmaceuticals, paints, detergents, biodiesel, etc.), Protein meals are used to meet the increasing demand for meat and industrial pharmaceutical- as well as direct food substitutions.

The majority of European oilseed bio refineries are located in Belgium and the Nether-lands, followed by one in France, one in Italy and one in Finland, Scotland is an ideal location for establishing bio refinery operations based on OSR harvest values. Oilseed bio refineries are currently less developed in the EU27+, in spite of a large production of oil seed crops that seem to be mostly used for uneconomic biodiesel production. Production of Scottish Branded TOMS Bio Diesel types plus food and/or industrial oils to market Production of (Bio) Ethyl Acetate from agricultural residues. Seed to Certification Scottish Agriculture Bio Fuel and Light low calorie Rape Oil, RMC derived commodities. Integration with NFU-S, SAC ,SCRI, GSI; REFA , Production of value added commodities from RMC. Extractions-Separations Potential for Biorefinery Port or hinterland location. Production of Bio renewable commodities. Establishment of branded Bio Diesel retail and wholesale as blended varieties and as 100% Bio Fuel targeting energy - transport fuel sectors. Establishing retail and industrial use products from OSR harvest values. Potential for establishing Turnkey core activities at Port or Hinterland 2013/14 location recommendations may focus upon Angus. Establishing long term S2C NFU-S member contracts by 2013 for harvests 100,000 tonnes OSR/Multi year arrangements. Consideration for strategic enterprise location under guidance from industry stakeholder groups and local government.

OIL SEE RAPE AREAS OF SCOTLAND

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As the global population continues to increase and diets in developing countries incorporate higher levels of protein, we are faced with an ever growing concern in protein availability. Traditional sources have been mainly animal-based (beef, pork, cheese, eggs, etc.) and It is unlikely that these sources will be able to accommodate the worlds growing needs. As food supply constraints are increasing, due to urban development of arable land, alternate uses of crops for bio-fuel and other industrial purposes, and many crops having already maximized yields. The result is an alarming imbalance between over-demand and under-supply. There is also an increased consumer focus on natural and organic products, combined with a strong trend toward plant-based proteins as a substitute for animal sources, which has made it even more crucial to consider the implications of processing technologies. The European protein ingredient market is currently the worlds largest, at an average turnover of USD $8,000,000,000 and growing at 4% per year. Asian and US markets are growing even faster and growth rates currently stand at 7% and 6% respectively.

SUSTAINABILITY Sustainability issues and sustainable products are evolving to become more than a passing marketing fad. Consumers are actively seeking out responsibly sourced products and avoiding products marketed by manufacturers that are known for irresponsible corporate behaviour. For many consumers, the presence of a Fairtrade, Non-GMO or similar seal is becoming a key purchasing point. The companys focus on environmental responsibility and sustainability has now led to the development of a new generation of processes that completely eliminate solvents from the process. ScotiaAghelek.1306 Ltd believes that the key to corporate sustainability lies in focusing on processes that limit the impact on the environment through minimizing carbon emissions, as well as land and water use within an economic framework that facilitates corporate growth and profitability. ScotiaAghelek.1306 Ltd is committed to minimizing its environmental footprint and to exploring new and innovative ways to continually increase its efficiencies of food production.

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COMPLEX PROJECT IDEAS:

Rapeseed is the worlds number two oil seed crop ranking behind soybeans and ahead of cotton seed, peanuts and sunflower seeds. The oil from it has the best fatty acid composition of all vegetable oils. OSR, improved rapeseed, has low composition of erucic acid and glucosinolates and hence called 'double-low'. In global production rapeseed and canola now rank second with 45 million metric tons produced or 15%of world oil seed production of 286.2 million tons. ScotiaAghelek..1306 considers that Scotland is an ideal location for developing the know-how and technical skills required for international trade development. 1. Rapeseed meal for protein production; The protein from the meal can be solubilized and precipitated out by using different mechanism of protein precipitation .Table salt and cold water can be used in this process The protein isolate has an excellent balance of amino acids and useful functional properties for applications in both food and non-food sectors. 2. Paper: Rapeseed meal proteins isolates showed good interaction with paper fibres .The effect of rapeseed protein was investigated on the mechanical properties, stiffness and strength of recycled paper .Therefore they could be used to improve mechanical properties of recycled paper. 3. As personal care ingredients As a plant ingredient in cosmetic or other body care applications in which animal based ingredients might be undesirables 20 % and 40% ethanolwater mixture was used to test the raw material solubility which makes their way in cosmetics products possible. It whips and foams like an egg white and that means it functions as binding ingredient. This is big benefit when one look at the package food industry. 4. Rapeseed meal as fertilizer; the concern is competitive market with very low price. The meal has to have slightly higher value than traditional fertilizer. Therefore, there is no used for specific properties of the meal. Field experiments under controlled conditions show fast mineralization nitrogen contained in the meal. The results caused be too fast growth before winter in the case of early seeding and an important risk of leaching during winter. 5. Rapeseed meal as combustion material; the calorific value of or power of the meal is roughly equal to the ones of anthracite and charcoal; 17,500kJ/kgas compared to 20,000kJ/kgof coal and anthracite. The auto inflammation point of rapeseed meal is relatively of high value (nearly 700 degree centigrade) The main thermal characteristics of the meal allows its utilization as material for combustion. As content is relatively low and its calorific value is approximately equivalent to the that of charcoal. 6. Rapeseed meal for bio gas production; Rapeseed meal can be fermented in a biogas plant to produce biogas. Co-fermentation with liquid manure is used yielding a gas converted to heat and power by small combined heat and power plant .Certain studies show a gas yield of 350lit/kg meal. Biorefining and the philosophy behind have been developed for new opportunities to provide a combination of protein concentrates/isolates, starches, biocides, lipids and technical oils from OSR. The general objective is to produce new high added value end products by utilisation of dry fractionation, cold oilseed pressing Biosolvent extraction and pure aqueous extractions systems. This document introduces an enterprise analysis for the economic opportunity to engage with the aqueous enzymatic extraction of oilseed rape based on the Biorefining concept. The results of the Bioraf economic feasibility study on Biorefined Oilseed Products indicates that a combined production of technical oils, proteins, lipids and biocides is economically viable based on pilot scale mass balances, and that quality and costs of the end products can be realised in the market. Bioraf primary studies evaluated the mass balance of Oil Seed Rape, according to their cold pressing and aqueous protein extraction analysis, at: Solvent & Enzymic Extraction 32% refined Oil So for TOMS and FAEE 19% Carbohydrates Into CHP 16 % Protein Concentrates For products animal feed and possible human 15% Dried Hulls Into CHP 10% Protein isolate For health and sports drinks products. 2% Emulsifiers Into various industries. 1% Biocides. Into agricultural activities. Following the Bioraf methodology ScotiaAghelek would seek to introduce improved OSR oil recovery using Bio Ethyl Acetate as the most desirable solvent extraction chemical while running this through into the TOMS production methodology as the reagent for the downstream process. The predicted output analysis would be in line with the 2nd generation illustrated: Surrendering: high quality technical and edible oil protein of high biological value carbohydrates glucosinolates (insecticides) Development of Technologies that fulfil: n increasing demand for Environmental Friendly Products A n increasing interest for Renewable Raw Materials A n increasing interest in securing Sustainable Energy Supply A n increasing awareness of the interdependence of A technology, the environment, production, and utilisation ScotiaAghelek.1306 27

PROTEIN EXTRACTION PROCESS.

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ScotiaAghelek.1306

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Mission:

ScotiaAgheleks objective is to establish a complete Agriculture to Industry Biorefinery for the delivery of branded TOMS Bio transport fuel, modified oils and added value protein isolate commodities into the Scottish highland & islands market place.. While developing know-how that can form the basis of considerable technical export opportunities.

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BIOMASS BOILER FUEL

Rape seed based pellets or straw based pellets are a direct consideration for the Biorefinery. OSR pellets are made from 100% natural ingredients. The energy contained in the original raw material is highly concentrated, giving a fuel with very good energy qualities, calorific, with minimal amounts of ash. Rape based pellets are 6mm wide and have a dryness rating of 91%. This makes them perfect for all hopper-fed boilers and biomass CHP systems. The burning of biomass pellets causes zero CO2 emission as the plant during its growth absorbs as much carbon dioxide, as is fed into the atmosphere during burning. The ash from burning pellets can be used as a mineral fertilizer due to its high content of elements vital for plant growth. The fuel analysis (below) of the straw pellets shows their total suitability as a heating fuel. Straw Pellets - Fuel analysis Currently, there are several hundred thousand tonnes available to be used for energy production in NE Scotland. This amount is subject to large fluctuations due to the conditions of crop abundance and consumption in agriculture, but generally, the tendency in this market is heading towards increasing straw supply. In connection with this, there is a surplus of straw that can be used for energy production purposes. That could help decrease damage of CO2 to the environment. Straw pellets, as an energy fuel, contain a relatively high amount of volatile ingredients, that make this kind of fuel burn very effectively. At the same time, the content of ash and moisture remains at a constant, level. As is shown, pellets have a high calorific value, which under proper conditions can equal the calorific value and quality of coal dust.

The Characteristics of OSR Straw Pellet as Fuel

No 1

Parameter Calorific Value

Value l 18.1

Unit MJ/kg

Combustion Heat

19.8

MJ/kg

3 4 5

Moisture Content Ash Content Pouring Density

8.0 7.0 0.54

% % kg/dm3

Specific Gravity

1.0

kg/dm3

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As part of its commitment to EU targets, the UK needs 30% of all renewable electricity and heat to be obtained from biomass, material derived from living, or recently living organisms, by 2010. There are two main sources of biomass for energy generation; purpose grown energy crops and residual materials from food crops. Using agricultural resides avoids the food vs. fuel dilemma and may add value to existing food crops. At the moment, there isnt a significant market for OSR straw in the Scotland, and a lot of it is chopped into the soil through ploughing. Developing a market would add value to the gross margin of the crop at farm level. Research into pelletisation of OSR straw, the effect that storage has on their value and quality, and the combustion behaviour of OSR straw pellets has been conducted at Harper-Adams while there are a number of technologies that can be employed to deliver first class OSR fuel pellets. Using established methodologies, where possible, measurements have been made to the European Solid Biofuels Standard. By making the straw into pellets and increasing the bulk density, the net energy content per unit volume is also increased. Storage, transport and handing of the material are easier and cheaper, with pellets having a 42% weight advantage over straw. The quality during storage has been investigated, durability and compression tests, handling and storage impacts on the material have been carried out with positive conclusions. Combustion testing at the Energy Technology Centre at Cranfield University. For each combustion test, the emissions, temperature and amount of ashes has been recorded. Converting the straw into pellets has other benefits. Because generally it doesnt need to be dried, the energy required to do so is low compared with other materials- approximately 5% of the energy available in the straw. PELLET MANUFACTURING PROCESS Alchemy Technologies of Swansea produced the pellets from straw stored for each period at Harper Adams. The manufacturing process, which is similar to the production process for wood pellets, is summarised as follows: 1. 2. 3. 4. 5. Grind straw to uniform length fibre dust using hammer mill Add calcium lignosulphate binding agent at 5% binder:straw ratio Pellet mill press at high pressure and temperature (see Figure 2) Green pellets cooled to improve strength and storage stability Excess post-press dust removed by screening and vacuuming

Typically around 60% of the straw produced in-field can be recovered for utility.

A significant proportion of cereal straw is used in the livestock sector. Although only a very small amount of oilseed rape straw is currently utilised for livestock feed, it has a potentially large market as an energy source.

A cut-away drawing of a CPM pellet mill as used to produce the OSR pellets for the Harper Adams project. Image courtesy of California Pellet Mill Co

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Breakdown of Scottish straw production (tonnes) by region in 2007

Total

Wheat

Winter Barley 4,270

Spring Barley 64,424

Oats

Other Cereals 600

Oilseed Rape 7,433

North East Scotland North West Scotland South East Scotland South West Scotland Totals.

13,495

11,070

56,474

62,538

241,156

19,354

1,385

57,734

270,004

61,775

243,384

42,951

2,379

84,022

19,630

16,135

72,588

10,097

2,204

3,414

359,603

144,718

621,552

83,472

6,568

152,603

1,368,516

Potential cereal and oilseeds straw availability (tonnes) by Scottish regions after deduction of current requirements for animal bedding North West Scotland North East Scotland South East Scotland South West Scotland -80,146 Recoverable cereal straw biomass on UK farms typically ranges from 2.75 4 t/ha depending upon crop type. Any remaining straw stubble is incorporated back into soil. Currently, the main reason for baling and removing straw from fields is for use in the livestock sector. Barley and oat straw is typically baled and removed from fields for use as a source of roughage in livestock feed rations. Wheat straw has a lower feed-value than barley or oat straw but is widely used for animal bedding for cattle, pigs and horses. Other smaller markets for wheat straw include use as fuel for heat and power generation and small volumes are used in the mushroom industry. Due to its relatively low bulk density, transport costs for hauling straw any significant distance are high. So, in the absence of nearby livestock or other markets for straw, it is typically more cost effective to plough straw back into soil.

161,894

422,371

-537,275

In order to access this surplus straw farmers need to be compensated for both the cost of baling and removal and for replacement of nutrients forgone in removed straw. The following analysis provides an indication of the price of straw that must be met before farmers are likely to consider going to the effort of retaining straw for sale. There is clearly a surplus of cereal straw in Scotland that could provide a useful renewable energy resource, plus there are oilseed straw resources that could be recovered. However this straw resource should not be viewed as a cheap waste by-product from agriculture, as straw has value in its nutrient content and in providing organic amendment to soil to maintain good soil condition. Farmers will need compensation for this and for the costs invested in recovering straw. Taking into consideration the current cost of buying-in replacement fertiliser for the nutrients exported in straw and the balance of costs in bailing and removing wheat straw, a minimum wheat straw value of around 113/ha or 32/tonne is likely to be required to persuade most farmers to part with their straw. Current spot farm-gate prices for straw are only around 84% of this value but there is no slump in supply. Some farmers may be able to reduce costs in the chain to compensate or more likely most currently fail to recognise its additional fertiliser value.

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Value of nutrients removed in wheat, barley and oilseed rape straw at typical rates of straw removal and current fertiliser prices (ADAS, 2008) Nutrient content (per tonne of straw) Wheat N 5.0 kg P2O5 1.3 kg K2O 9.3 kg Total Barley N 5.0 kg P2O5 1.5 kg K2O 12.3 kg Total Oilseed Rape N 5.0 kg P2O5 2.2 kg K2O 11.5 kg Total Nutrient value per tonne of straw () Total nutrient value of removed straw (/ha) 19.78 6.62 32.55 58.94 18.65 6.00 34.65 59.29 36.54 13.40 48.30 98.24 Operating costs for handling straw Operation Costs /ha Straw chopping (on harvester) 4.00 Straw chopping (separate operation) 40.00 Baling (517 kg/bale)48.36 Moving bales from field to stack 9.67

5.65 1.89 9.30 16.84 6.78 2.18 12.60 21.56 8.70 3.19 11.50 23.39

ScotiaAghelek.1306

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SWOT.

Currently competition is limited while a number of established and planned projects in Scotland are seen as complimentary market demand developers.

STRENGTHS ScotiaAghelek.1306 is working with the set of desirable goals as described by Scottish research and development and the declared political objectives of the EU and Scottish Executive. ScotiaAghelek .1306 holds novel IP and patented values. ScotiaAghelek.1306 has objectives that have a high degree of synergy with evolving national and international bio renewable objectives. ScotiaAghelek.1306s development ideologies are closely aligned to the Scottish and EU executive policies related to climate change, sustainability and GHG emissions reductions. Regional research has illustrated that most areas in Scotland are able to cultivate first class OSR.

WEAKNESSES The established Oil Seed Rape Agricultural Community requires to be invigorated following a number of years of poor return from this area of agriculture. Response: ScotiaAghelek will deliver prime values to agriculture. Established vendors of transport fuel may seek to mitigate against a brand that is specifically Scottish in nature. Generally such vendors are established in prime selling (retail) locations. Response: ScotiaAghelek will partner and/or JV with Scottish fuel distribution companies that hold long term relationships with agricultural services communities and rural fuel clients. Response: ScotiaAghelek will enter the food oil and industrial oils market by deliberately marketing the products as prime Scottish produce superior to alternatives. Many areas of the highlands are loosing transport fuel retail services and having to travel increased distances in order to obtain fuel. Response: ScotiaAghelek will evolve decentralised Bio Diesel refinery feedstock activities at locations that support the use of rural manufactured Bio Fuels. i.e. Demand led bio refinery deployment The establishing of new manufacturing and distribution logistics demands a primary centralised operational core. This may lead to a period of delay before decentralised services take hold. OVERALL ScotiaAgelek.1306 Ltd holds a direct resources to market distribution ideology within a demand and policy supported target region, while there are undoubtedly opportunities for the company to exploit IP - Patented knowledge through export of technology and know-how developed in Scotland-UK.

The ScotiaAgelek.1306Ltd.s business model is to leverage its very valuable core TOMS and protein isolate methodologies, advanced process engineering technologies, and operating experience, through the formation of alliances and strategic partnerships with respected industry participants on a global basis.

We believe the combination of our own formidable IP and technical know-how, combined with the capital, infrastructure and market presence of a major strategic partner or partners, can create a path to robust global growth.

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General SWOT analysis ScotiaAghelek.1306 Biorefinery

Strengths Adding value to the use of biomass Maximizing biomass conversion efficiency minimizing raw material requirements Production of a spectrum of bio-based products (food, feed, materials, chemicals) and bioenergy (fuels, power and/or heat) feeding the full Bio-based Economy Strong Knowledge Infra Structure available to tackle both non-technical and technical issues potentially hindering the deployment trajectory Biorefinery is not new, it builds on agriculture, food, and energy industries Opportunities Can make a significant contribution to sustainable development Challenging national, European and global policy Goals international focus on sustainable use of biomass for the production of bioenergy-biochemicals International consensus on the fact that the biomass availability is limited so that the raw materials should be used as efficiently as possible i.e. development of multi-purpose Biorefineries in a framework of scarce raw materials and energy International development of a portfolio of Biorefinery concepts, including composing technical processes Strengthening of the economic position of various market sectors (e.g. agriculture, chemical and energy) Weaknesses Broad undefined and unclassified area Involvement of stakeholders of different market sectors (agro, energy, chemical, ...) over full biomass value chain necessary Promising Biorefinery processes/concepts/Ideology suffer from a lack of clarity. Promising biomass value chains, including current/future market volumes/prices, not clear. Studying and concept development instead of real market implementation Variability of quality and energy density of biomass

Threats Economic change and volatility in fossil fuel prices Fast implementation of other renewable energy technologies feeding the market requests. Bio-based products and bioenergy are assessed to a higher standard than traditional products (no level playing field) Availability and contractibility of raw materials (e.g. climate change, policies, logistics) (High) investment capital for pilot and demo initiatives difficult to find, and existing industrial infrastructure is not depreciated yet Changing governmental policies Questioning of food/feed/fuels (land use competition) and sustainability of biomass production Goals of end users often focused upon single Product.

ScotiaAghelek.1306 future (2012-2014) Activities: We conclude that an OSR Biorefinery in Scotland can make a significant contribution to sustainable development by adding value to the sustainable use of OSR biomass cultivation. Promoting the production a spectrum of bio-based products (food, feed, materials, chemicals) and bioenergy (fuels, power and/or heat) feeding the emerging Scottish Bio-based Economy. Our target is to design build and operate a Biorefinery aimed at maximizing biomass conversion efficiency, so minimizing raw material requirements, while at the same time the economic positions of various market sectors (e.g. agriculture, forestry, chemical and energy) are strengthened. There is an international consensus on the fact that the biomass availability is limited so that the raw materials should be used as efficiently as possible i.e. development of multi-purpose Biorefineries in a framework of scarce raw materials and energy. The key parameter is to establish the ScotiaAghelek.1306 Biorefinery as a successful endeavour bringing together key stakeholders normally operating in different market sectors (e.g., agriculture, transportation fuels, chemicals, energy, etc.) in multi-disciplinary partnerships to discuss common Biorefinery-related enterprise, to foster necessary RD&D trajectories, and to accelerate the deployment of developed technologies (platform function).

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The current main driver in Biorefinery development, i.e. efficient and cost effective production of transportation biofuels, is to increase the biofuel share in the transportation sector, while the co-produced bio-based products provide additional economic and environmental benefits.

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INVESTMENTS, REQUIRMENTS, PROJECT FINANCING & RETURNS: ScotiaAgheleks executives possess special technical patent registered skills and know-how backed by long term executive inclusion with enterprise assembly for the bio fuels and renewable commodities sectors. ScotiaAghelek.1306 Ltd will seek to establish least cost supplies of equipment and services. Chemical process engineering, construction and logistic skills are well established in Scotland as is the agricultural architecture for the region that has in the past produced more than double the amount of current OSR harvests. Local suppliers of equipment and services will be at a premium as it is also the working policy of our EPC contractor to source as close to a project location as possible. ScotiaAgheleks executive will be seeking to identify Scottish Chemical and Engineering services for the fabrication of specialist refining and separation technologies, not least as this will lead to the export of IP established expertise in the future. Scotland has available manpower and infrastructure facilities (transport and communications, power, water, etc.). Breakdown of projected capital costs by major categories of expenditures. 1. 2. 3. 4. 5. 6. 7. Land and Primary buildings 5,000,000 Complete EPC Bio Refinery + tank farm + TOMS separation 18,000,000 26,000,000 (size 50-100K p.a. Capacities). (Potential for modular deployment) Complete EPC Bio Refinery Protein Isolates 35,000,000 Patented IP protected technologies 3,000,000 Transport & Communications Capital 1,000,000 Estimated total: 58 66,000,000 by 2014. Estimated Corporate establishment 30,000,000 to operational for 2014..

Source of raw materials 50 100 MT p.a. @ average cost of 250/MT(10 25 Million p.a.), at correct moisture content with average 40% oil content OSR harvest direct from Scottish farmers active according to agricultural growers contracts. There are no import restrictions on required raw materials while ScotiaAghelek will be supporting a 100% Scottish product range. ScotiaAgheleks proposed plant location will be strategic in relation to suppliers, markets, infrastructure, and manpower. Location advice will be derived from significant research conducted by the Scottish Agricultural College and Highland Councils between 2005-12 ScotiaAgheleks proposed plant size is moderate when compared to other known proposed plants (INEOS 07-09 300,000 MT/p.a.) as the company recognises that market conditions as leveraged by major consumers of OSR harvests over the past several years have reduced incentives for Scottish farmers to engage with the cultivation of OSR. It is considered that by combining crushing, expelling, bio refining technologies and branded product developments that have significant regional stimulus upon the OSR harvest will promote a deliberate farming increase in feedstock cultivations. Potential environmental issues are always a significant factor when considering process chemical engineering and/or increased professional agricultural activity. TOMS processing is particularly environmentally friendly with opportunity to make 100% use of bio derived bio degradable chemicals while holding no impact upon water demand while up to 30% of the raw material inputs could be utilised as CHP biomass feedstock (2,100-3,200 kWh/m3 x 30,000 MT) . In terms of agriculture SAC and the NFU (Scotland) are keen protectors of the agricultural forestry waterways and seashores of Scotland. The proposed financial structure of venture will be grants, bank debt and equity, sources and terms of equity and debt financing to be arranged. Projected financial statement, information on profitability, and return on investment. (reviewing). Critical factors determining the profitability and the over all success of bio refinery operations are the abilities to duplicate the holistic management of value adding activities to the primary feedstock as has been the case with the petroleum chemical industries. Sustaining procurement of least cost feedstock resources is also a value exchange that must have reference to sustained Fairtrade principles as agriculture activities demand essential loyalties in order to continue building and delivering produce from any land area. GOVERNMENT SUPPORT & REGULATIONS The ScotiaAghelek.1306 project, in the context of the Scottish governments economic development and investment program has a high degree of structural support with linkages to the Scottish Agricultural College, National Farmers Union and Scottish Banking and Investment sectors. Specific government incentives and support available to project are mentioned in the project summary. The expected contribution of project to economic development is considered to be pronounced in terms of land utility (arable and set aside) while directly off-setting the importing of bio fuels, feeds and bio renewable commodities. Remaining unexpressed, the project will generate RTFO carbon credits assisting with the low carbon emissions objectives of government and keenness to address climate change issues. TIMETABLE ENVISAGED FOR PROJECT PREPARATION & COMPLETION 2012 Research Design & Build 2013 Primary pre commissioning operations 2014 Fully Operative. ScotiaAghelek.1306

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Scope of works : TURN-KEY SUPPLY OF A COMPLETE RAPESEED CRUSHING, PROTEIN ISOLATE AND BIODIESEL PRODUCTION PLANT
Industrial Operation : Early 2014 Plant capacity : - 40,000 TPY TOMS biodiesel and/or 20,000 MT (FAEE/FAME) plus 20,000 MT edible industrial light low calorie food oil. 21,000 TPY of high value Rape Meal Protein isolates and extracts for industrial applications. 39,000 TPY of fibre extracts and trace elements as well as CHP energy inputs for the Biorefinery operations.
Processing units : Pre-pressing unit Extraction unit Crude oil acid degumming unit Degummed oil stripping unit TOMS Biodiesel production unit Utilities : Water cooling Steam generation and distribution system Compressed air generation Electricity distribution network Fire fighting system Auxiliaries: Chemicals storage Oil and biodiesel intermediate storage and load-out TOMS separation unit for the production of EN14214 FAEE/FAME + TOMS LowC Oil

THE FIGURE BELOW SHOWS ROUTES OF RAPESEED MEAL APPLICATIONS

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SELECTED NEWS COMMENTS

Scotland's future's green, but is it golden? THE golden yellow carpet which stretches across large swathes of Scotland's farmland every spring ought to be a symbol of the vibrant future for the agricultural community. Oil-seed rape is a key part of the biofuels revolution sweeping the globe, providing oil that can be easily turned into biodiesel. Within a few short years, enthusiasts believe, Scottish farmers will be growing millions of gallons of fuel to power the nation's cars, transforming the rural industry. However, the reality may prove otherwise. Agriculture groups and environmental bodies, along with rapeseed farmers, have told The Scotsman they believe the idea of a national biodiesel industry is a pipe dream, a supposedly green initiative which may wreak untold ecological damage. On paper, success looks assured. Next year, a vast, 90 million biofuel production plant will become fully operational in Grangemouth. Capable of producing about 100,000 tonnes of biodiesel a year, the INEOS Enterprises facility, backed by 9 million in regional assistance from the Scottish Executive, will meet more a third of the UK's biodiesel needs. INEOS shelved plans for this project in 2009. With farming in transition - the number of livestock kept on farms declined last year - farmers have hoped they will be able to give over ever increasing acreage to oil-seed rape. Their harvest - some 120,000 tonnes last year - would be crushed to remove its oil. With volumes decreasing there is a disincentive for ADM & Cargill to continue engagement, not least as these two giants only have interest in least cost acquisition of grain, zero interest in crushing/expelling or manufacturing product in Scotland. But obstacles lie ahead. At present, the harvest must be taken to Liverpool, Hull or Kent, the only sites with specialist crushers. Farmers have to pay up to 20 a tonne in haulage costs. This unacceptable situation still persists in 2012. Until the Grangemouth plant fires up, about half of Scotland's rapeseed will still be processed in the north-east of England, with the remainder ferried abroad, mostly to Germany and Austria. What is more, INEOS has no plans to build a crusher, so the rapeseed will continue its journey south before it can come back to Scotland. This factor combined with the uneconomic process intended (production of Glycerol) illustrated that the INEOS ideology held no sustainable economic feasibility. Proposals to build a combined biodiesel plant and crusher at the former Royal Navy dockyard in Rosyth have, meanwhile, become delayed by legal and planning problems. Now shelved. The problems was the choice of location. Port of Dundee would have been better or at an inland strategic location. Once a Bio refinery has an established profile with increasing demand then it would be wise to target a port location. And with Scottish farms not able to slake the Grangemouth plant's thirst for the raw ingredients for biofuel, concern is growing over how INEOS will meet its full production capacity. The intention of INEOS was to import waste and low cost Palm Oils holding no reliance upon the Scottish OSR harvest. The answer, environmentalists fear, is a deluge of cheap, alternative biomass, such as palm or soya oil, imported from as far away as southeast Asia. Correct. There is growing evidence that the global demand for palm oil is leading to vast tracts of south-east Asian rainforest being ripped up and replanted, threatening endangered species such as orang-utans. Transporting the fuel thousands of miles around the world also creates emissions. Correct And the demand for biofuels is set to increase. Under the Executive's Renewable Transport Fuel Obligation (RTFO), at least 5 per cent of transport fuel must come from renewable resources by 2010. Correct. INEOS, which expects to have its planning application for the biofuel plant approved by Falkirk Council this summer, vows to use home-grown rapeseed when possible. The economics of the INEOS profile would never make this possible. Jason Woods, the biofuels business manager for the firm, said: "We will purchase oil from oil-providers, who themselves will have relationships with their own providers, such as Scottish oil-seed rape farmers. We are having discussions with our potential oil- providers to ensure that as much as possible is sourced from Scottish farms, and with our imports, we are very keen to have as low a carbon footprint as possible. SCOTLAND HAS NO CRUSHERS-EXPELLERS OR BIO SOLVENT EXTRACTION BY 2012.

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But a spokesman for the Executive last night confirmed: "Imports will have an important role to play in meeting demand for biomass in developing and growing the sector in Scotland. The new government will seek to ensure sustainable practices are at the heart of our policies. Why bring oil from Asia when there is a surplus in Eastern and Northern Europe as well as high potential to extend agriculture in Scotland.? A Scottish Bio fuel blend is most desirable.

'More energy crop' could be grown Steven McKenzie BBC Scotland News website, Highlands and Islands reporter Government and campaign reaction More farmland could be put to use for the growing of energy crops because of the problems affecting the livestock industry, a farming leader has said. John Picken, chairman of NFU Scotland's biofuels working group, said the acres of oilseed rape and wheat grown could be increased with government backing. Foot-and-mouth over the summer into the autumn led to restrictions on the movement of animals, lower prices and sheep on hill farms being slaughtered because they could not be sold and faced a shortage of grazing with the onset of winter. Mr Picken said the difficulties facing livestock farmers could see grassland being ploughed up and left fallow. However, with financial backing at UK level the land could be put to use for the growing of oilseed rape for the production of bio-diesel, or wheat for generating heat. Mr Picken added: "The growing of cereals for malting is up to maximum capacity and I don't think we can produce any more because there are not any more maltsters or distilleries to provide for. "So there is a bit of room so to speak for growing energy crops." The majority of oilseed rape production is in the north east, but the arable farmer from St Andrews, Fife, said almost anywhere in Scotland was suited to the crop. Quick guide: BIOFUELS SCOTLAND.. Highest yields could be gained in the Highlands because of the long hours of daylight in summer. Mr Picken said the UK was lagging behind other countries in the production of biofuels. He said: "America is leading the way with subsidies and tax breaks and they are going to double their usage of maze. Mr Picken conceded there was a debate on how to balance growing for energy and food, but warned that the production of crops for biofuels was at risk of becoming a "missed opportunity" in Scotland. He welcomed moves to open bio-diesel plants at Grangemouth, near Falkirk, and Rosyth, near Edinburgh. INEOS Enterprises' proposal to build one of Europe's biggest bio-diesel plants in Grangemouth was given the go-ahead by Falkirk Council in October 2008/9 yet failed to launch as it did not meet Scottish farmer-industry concerns. However, plans by DMF Biodiesel for a processing facility in Rosyth has returned to Fife Council as a live planning application following a legal challenge. Since dissolved any interest. The local authority had previously given its approval. The Department for Environment, Food and Rural Affairs said farmers growing energy crops may be eligible for a single Common Agricultural Policy payment and also claim EU energy aid payment to a maximum of 45 Euros (32) per hectare. A spokeswoman said: "UK government see biofuels as part of the renewable energy mix, but wish to ensure that the biofuel supplied in the UK offers carbon benefits and is produced sustainably. The Scottish Government said it was looking at the role of biofuels in an effort to reduce CO2 emissions. A spokesman said it had also recently committed 10.2m of investment in biofuel production through Regional Selective Assistance funding for the plant in Grangemouth and another in Motherwell.

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Lord Palmer, a sitting peer, who grows around 120 acres of oil-seed rape on his estate in Duns, Berwickshire, describes the situation as "absolutely bonkers". Lord Palmer discovered only by chance that his crops were being processed in Germany and Austria. "When I found out, I thought, 'Hold on, aren't we missing a trick here?'," he recalled. "In theory, there should be a sustainable system where Scottish farmers grow oil-seed rape, it's crushed here and then used here. But ask 20 different experts in the field and you'll get 20 slightly different answers. From 2005 in a number of meetings and reports this opinion has been stressed repeatedly. "This is a new phase for farmers, growing things like rapeseed, but we're incurring large transportation costs with no crusher in Scotland. Correct, while paying through the nose for imported inferior products. Oil-seed rape is already Scotland's most widely grown non-cereal, with about 83,000 acres planted throughout the country. Some 11,000 acres are grown purely for industrial use. Farmers believe this could be substantially increased. SACs evaluations suggest that more than double this acreage is very feasible. Visible local demand for OSR harvests is seen to be the key to stimulating the agriculture. Both Peter Loggie, policy manager at the National Farmers Union Scotland, and Elaine Booth, oil-seed specialist at the Scottish Agricultural College, want government action. Mr Loggie said: "It would not be sensible to support environmentally friendly road fuels, yet import large quantities of palm oil from places like Indonesia." Ms Booth suggested safeguards be included within the RTFO. It is an issue on which the UK government has been consulting. Exactly!. John Picken, the combinable crops chairman at the NFUS and a St Andrews-based rapeseed farmer, contrasts the burgeoning biodiesel trade with the North Sea oil industry. The latter, he said, received "amazing government help", while the former has "been given no encouragement". Correct, scant assistance. Duncan McLaren, chief executive of Friends of the Earth Scotland, said: "The biodiesel industry is nowhere near as green as it makes out. It has been overhyped, and there is a real risk of environmental damage caused by cheap imports. Given millions of pounds of public money has gone to INEOS, there should be certification process to check where biomass is coming from, in the same way tropical timber is certified. Biomass from Scotland used in Scotland no brainer. Doug Parr, chief scientist at Greenpeace UK, said: "Biofuels are often touted as a green fuel source; however the truth is often less clear," he said. "Growing and processing biofuel crops causes greenhouse emissions, especially if the raw materials are grown in areas where ancient forests have been cleared and burned, such as Indonesia." OIL-SEED RAPE - FACTS & FIGURES OIL-SEED rape, or rapeseed, is the most widely grown non-cereal in Scotland, with 83,000 acres planted across the country. A further 11,000 acres is estimated to be planted solely for industrial use on "set-aside", land that has been taken out of production to reduce the surpluses being produced by farmers. SAC estimates that there is 200,000 acres available in 2012 for planting and the 2011 OSR harvest topped 165,000 MT. Cumulatively, the crop covers an area approximately 145 times the size of Edinburgh's Holyrood Park. 99% The proportion of oil-seed rape among Scotland's entire non-food and industrial crops in 2006 No 1 The new INEOS biofuel facility would have been be the largest of its kind in Europe. 1,430,000 acres; amount of rapeseed grown in UK The INEOS facility would be capable of producing 250,000 tonnes of oil-seed annually, which would be turned into about 100,000 tonnes of biodiesel and 150,000 tonnes of rape meal for animal rations. No INEOS would have produced no oil as there had no crusher-extraction planned. They wanted to have another party invest in crushing-extraction but offered no guarantees of off-take. 46.4 million metric tonnes; the worldwide production of rapeseed in 2005. 30% percentage of UK rapeseed grown on industrial contracts in 2006. The market value of oil-seed rape is about 175 a tonne (185/MT 2012 February). 76% of Scottish oil-seed rape is grown in Aberdeenshire, Angus, Fife, Highland, Moray and Perth. The target location for ScotiaAghelek. Some 5 per cent of transport fuel must be generated through renewable resources by 2010. Scottish demand for bio fuel blending can be accommodated with the use of OSR bio fuels. By then, two million tonnes of biofuel will be needed in the UK. 0.25% The amount of UK fuel supplies coming from renewable sources in 2005. 2:1 The ratio of omega-6 and omega-3 fatty acids found in rapeseed oil. Improved by TOMS light oils values !

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The economics of producing quality oils, proteins and bioactive products for food and non-food purposes based on Biorefining in the North East of Scotland..
The ScotiaAghelek.1306 project BOP(Biorefined Oilseed Products) is focused on rape seed with the objective to develop products tailored to meet functional requirements within different food and non food markets in Europe.

Contents Preface: 1. Introduction Table 1 Biorefinery Outputs & Values 2. Products and sales prices Table 2 Price of feedstock OSR + Market values of comparable products, GBP/MT 2.1. Rape seed 2.2. Protein isolate and concentrate 2.3. Refined rape seed oil 2.4. Carbohydrates 2.5. Hulls and dietary fibres 2.6. Biocide 2.7. Emulsifiers 3. Capacity and investments 4. Marketing and product development 5. Economic viability Table 3 Table 3 Trading Profits and Loss 2014-2018

6. Organisation 7. Conclusions Literature Appendix

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The analysis has also focused on the price trends for the various output products in the production process. In addition, the economic viability at different price levels for the products has been calculated. The representation will seek to analyse how a rise in the total investments by 10-50 Percent will influence on the overall economy. The main focus has been to assess the economic structure in the process and to identify areas of special economic interest in terms of processing costs and end product functionality and thereby price level. The economic feasibility study is based on data and recommendations from the technical and biological partners in the project. An overall sales revenue and gross margin analysis is conducted for a five year period.

Introduction

The objective of Biorefining is to develop sustainable processing systems for decentralised productions (bio refineries), where the production system is tailored to handle, process and upgrade the agricultural output of a region to make a full and optimal utilisation of the biomass, and thus keep the highest possible share of the value added in the region. Bio refineries can be build-up by one or several processing lines, which opens up for synergies in relation to investment and labour costs and flexibility in relation to production and market as well as benefits in relation to transportation of bulk biomass materials.

Outputs Products TOMS LowC Oils 20% FAEE 20%

Values 20,000 MT 20,000 MT 8,000 MT 1,000 MT 21,000 MT 18,000 MT 3,000 MT 9,000 MT.

Protein Isolate: 8% Biocide: 1% Carbohydrate 21% Protein Concentrate: 18% Protein Isolate: 3% Dietary Fibres: 9%

European agriculture produces mainly cereals, oil- and protein crops as well as fibres (straw). Added value through product and market development receives an increasing attention in research and development projects. Scotland is an ideal location for considering this approach with many clear reasons for establishing the economics for Biorefined Oilseed Products(BOP).

Table 1 Biorefinery Outputs & Values

The overall project objective is to produce new high added value endproducts by both bio solvent and the aqueous extraction of cruciferous oil seeds (including rape seed). This techniques/methodologies give possibilities to create a potential Scottish production of plant proteins and other valuable side products based on one of the most important and examined crops in Northern Europe.

The output and mass balance in the process is:

This enterprise outline describes the economic part of the project which is based on system analysis. The task is to assess and optimise the production economy in each link of the system. The system analysis is based on a model plant with an overall capacity of 100,000 tons rape seed per year.

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2. Products and sales prices Metric Tons. The end-products from the BOP-process have the potential to substitute a number of well known products and to enter well known markets as well as niche markets. The input in the process, however, is based on a single dominant raw material, rape seed. Table 2.1 shows the prices of various products, which are comparable to the BOP-products. The prices, which have been applied in this calculation, are import prices delivered within the Scottish boarders. In this respect the actual prices at the plant gate can differ from the prices shown in the table due to regional or local conditions.

Price of feedstock OSR + Market values of comparable products, GBP/MT

BOP Products Comparable Products OSR Seed. Farm gate (FarmG) Wheat Bran (FG-DU) Biodiesel (FG) Market/Industr y Input Feed Technical 2014 2015 2016 2017 2018

OSR Seed Hulls, Dietary Fibres TOMS FAEE

270 145.8 695.87

310 145.8 673.91

290 145.8 673.91

285 122.5 622.79

315 132.1 788.5

TOMS Oils

Refined Rape Seed Oil. Dietary Oils (DSPD) Casein (DSPD) Molasses (FG-DU) Wheat Gluten (DS-PD) Protein concentrate, no milk, glucose, fat. (DS-PD)

Technical

1589.00

2600.86

3284.66

4700.21

5000

Protein Isolate Carbohydrate Protein Concentrate

Food Feed Feed Feed

4090 116 899.8 827.08

5904 136.4 802.94 697.74

4677.41 92.8 841.88 731.53

4523.80 99.75 791.66 720.41

5526.31 91.35 884.16 760.37

Biocides

Plant protection (DS-PD) Diglycerides (FG-DU) & (DSPD)

Agriculture

2700

..

Emulsifiers

Technical

300

FG = Factory Gate DS-PD = Downstream Product Development FG-DU= Factory Gate Direct Utility

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2.1. Rape seed The average Farm gate price of rape seed, which is the primary input in the production system, is 294/MT (2014-17). Lately the price of rape seed has been fluctuating and has increased markedly. The input of rape seed accounts for about 40 Percent of the variable costs in the system. In 2012, the price of rape seed was above 250/MT the price has thereby increased close to 80 Percent since the beginning of 2005. By the end of 2006 the farm gate price of rape seed was less than 60/MT (Scotland). The future price of rape seed will depend on the world market price for other oil crops such as soya beans, sunflower and olive oil. It is expected that the total production of rape seed will decrease in regions like Scotland when there are reductions in concessions for land utility, unless there is a market demand response more in tune with economics in the field activities. ScotialAghelek.1306s influence over agricultural performance reward for engaging with OSR cultivation will be pronounced. 2.2. Protein isolate and concentrate Protein isolate is the second most important sales product in the system. The price of casein, which can be regarded as a comparable product to protein isolate has been relatively stable between. Lately the price has been very unstable with low import prices although it seems that prices have recovered somewhat. Protein isolate account for about 12 Percent of the total output in the BOP-system and 42 Percent of the total revenue in the system, in this respect it is a vital product in the system and only small changes in the output price will have a major impact on the overall economy. The consumption of casein is very low and probably negotiated by very few buyers. In this respect it is difficult to predict the future price of casein. It is assumed that an average price at about 4944/MT is a reasonable estimate. 2.3. Refined rape seed oil. Within the ScotiaAghelek framework Rape Seed Oil is extracted with cold press and low temperature Biosolvent Ethyl Acetate then reacted to form a TOMS 1 complete Bio Fuel. This product may find direct market sales however moving through to TOMS 2 we have a separation of the TOMS 1 into Fatty Acid Ethyl Ester an EN14214 Bio Diesel that is a 100% bio derived product and 100% pure. This separation also produces, in roughly equal volumes TOMS Low Calorie Oils. The versatility of this modified triglyceride blend is considerable when considering the vitality for potential product development for designer dietary, industrial or direct food industry utility. The values are predictably 21% of total BOP output commanding the high average value of 3435/MT but steadily increasing as value added product lines are opened. 2.4. Carbohydrates The price of carbohydrates (molasses) has also been relatively stable within the last 3-4 years. Molasses is a typical by-product from sugar-beet production and the carbohydrates from the BOP-process is likewise regarded as a by-product from this process. There has been a slight tendency of a reduced price level for this commodity, but carbohydrates are however low value products and therefore considered less vital in the overall economic system. However, within the Biorefinery system the opportunity to use carbohydrates as feedstock into an in-house CHP system returns value for value against the calorific content while reducing C02 emissions adding to sustainability considerations.

2.5. Hulls and dietary fibres Hulls and dietary fibres are by-products from the process and can in a number of applications replace wheat bran. Wheat bran is like carbohydrates a low value product. Again value can be returned to the system in terms of CHP feedstock.

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2.6. Biocide Rape seed contain 12-15 characteristic glucosinolates, which have a potential as antifungal or anti insecticidal biocides (BOP). Biocides are high value products. Currently there are no alternative products on the market and it is difficult to forecast how biocides will or can substitute other pest or weed control products in the future. Certainly there can be a direct sale to the agricultural communities across Scotland. In the BOP-project, several tests have been made regarding the effectiveness and toxicology of glycosinolate products from different European crops, including rape seed. The antifungal and antiinsectical activity have been tested on selected test organisms e.g. slugs (Deroceras reticulatum) aphids (Aulacorthum Solani), larvae of leatherjackets (Tipula oleracea) and also Potato cyst nematode (Globodera rostochiensis). None of the tests until now have shown satisfactory and significant percentage kill on any of the test organisms with glycosinolates from rape seed. The price of the active ingredients of pesticides naturally varies substantially based on which type of pesticide, the efficiency and the cost of production. The prices of active ingredients in well known broad spectre insecticides and fungicides are estimated to be in the range of 200/MT Based on the potential substitution effect of the BOP-glycosinolates the price is estimated to be 200/MT, which must be considered as a very conservative estimate. In the production process the share, from biocides of the total revenue relatively insignificant as the production output is less than 1% 1000 MT/p.a. 2.7. Emulsifiers Emulsifiers is also an important high value sales product in the BOP-process. Emulsifiers can be compared with diglycerides. It is however difficult to conclude about the price trend for emulsifiers, and the output share is relatively modest. The production of emulsifiers in the system is 133 tons/ year and the price is estimated to be about 20/MT (Castrol,1995). 3. Capacity and investments In the economic feasibility study the combined process is divided into sub-processes. The processing and investment costs are estimated for each sub-process and for the combined system per unit of rape seed input (tons) in a production set-up with a capacity of about 12.5 ton seed/hour. It is assumed that the operation time at the plant is 24 hours per day and 333 days per year, which corresponds to an annual input of 100,000 MT rape seed and a capacity of 99,900 tons dry matter sales product. The total investments are estimated to be 65 million GBP for EPC, stationary machinery and processing equipment and 5 mill GBP for Land, buildings and outdoor areas. The period of depreciation is 20 years for buildings and 10 years for machinery (SL). Capital costs are assessed by using the current real interest (7.84 Percent) which is based on a market interest at 10 Percent and a 2 Percent predicted inflation. An interest rate of 10 Percent seems reasonable for such industrial investments. Labour cost at the plant is assumed to be 3.1 mill. GBP/year, which covers the salary for 50 full/Par time employees inclusive management-executive levels. In addition we assume that +10 Percent of these costs are needed for administration.

4. Marketing and product development An important item in the cost structure is product development and marketing activities. If the production plant is regarded as a going concern these activities should be included. An estimate is 10 Percent of the total variable and fixed costs in the system (100Million), which corresponds to about 10 Million GBP (average). These expenditures cover laboratory facilities, 2 engineers for product development and research, 1 laboratory technician and 2 marketing and salesmen. The cost of marketing and product development is at the same level as similar biotechnological companies. It is however difficult at this stage to estimate the exact expenditures. Miscellaneous costs covers packing and other expenditures in connection to the production and sales activities.

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5. Economic viability 5.1. The analysis is based on an estimated production scenario. The basic scenario is presented in figure 5.1. A detailed description of the overall economic calculation of the basic scenario is shown. While for ScotiaAghelek there is the independent consideration for TOMS 1 & 2 The most economic viable lines in the process is the production line, which produce refined TOMS oil and emulsifiers and the production line, which produce protein isolate, biocides and carbohydrates. From an economic point of view further research and development should be emphasised on these two processes as the disclosed values are very much under stressed in terms of downstream product development operations that will be in sync with the Biorefinery. The sub-process which produce protein concentrate, protein isolate and dietary fibres creates a significant lower surplus due to a lower value of the sales products focus is submitted to this task with respect to the development of emulsifying and lipid protein products. Dried hulls are very costly to produce traditionally. Especially if it is assumed that this production should pay for its own share of the fractionation and cleaning costs. However, as the production is combined and interrelated with the other processes it should be regarded as a by-product. Dried hulls cannot generate less than the Calorific burn value return as fuel for CHP that reduces the overheads. Assumed that the combined process will contain all sub. processes, will be analysed whether the intermediate products should be sold to the market or go into downstream products or delivered for direct utility as cost cutting-energy savings. At this stage the sales values are stressed in terms of selling B2B, wholesale or direct utility. The results of this outline feasibility indicate that a combined production can be a viable investment when the assumptions made with respect to processing costs, investments, yields and product functionality are realised.

From Refined Rape Seed Oil TOMS 1 is produced. This moves to TOM 2 separation methodology to produce approximately: 20,000 MT of FAEE 20% And 20,000 MT of TOMS for high value food and Industrial applications. 20% Protein Isolate: 8% 8,000 MT/p.a. Biocide: 1% 1,000 MT/p.a. Carbohydrates: 21% 21,000 MT/p.a. Protein Concentrate: 18% 18,000 MT/p.a. Protein Isolate: 3% 3,000 MT/p.a. Dietary Fibres: 9% 9,000 MT/p.a.

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Table 3 Trading Profits and Loss 2014-2018 Products FAEE TOMS Protein Isolate: 8% 8,000 MT/p.a. Biocide: 1% 1,000 MT/p.a. Protein Concentrate: 18% 18,000 MT/p.a. Protein Isolate: 3% 3,000 MT/p.a. Dietary Fibres: 9% 9,000 MT/p.a. Carbohydrates 21% 21,000 MT/p.a. Emulsifiers Total OSR Purchases Etac + Reagents + Enzymes @10% Gross Profits Fixed and variable Costs, inclusive of consumables and CETDF debt servicing (6Million) Marketing & Product Development Labour Costs Depreciation Land & Buildings Depreciation Plant & Machinery Interest Charges Primary Net Profit/Loss 2014 13,917,400 31,780,000 32,720,000 2,700,000 14,887,440 2,481,240 1,312,200 2,436,000 300,000 90,098,280 27,000,000 2,700,000 62,834,280 30,000,000 2015 13,478,200 52,017,200 47,232,000 2,700,000 14,452,560 2,093,220 1,312,200 2,864,400 300,000 133,585,380 31,000,000 3,100,000 102,349,780 36,000,000 2016 13,478,200 65,693,200 37,419,280 2,700,000 15,153,840 2,194,590 1,312,200 1,948,800 300,000 137,951,310 29,000,000 2,900,000 108,000,110 42,000,000 2017 12,455,800 94,004,200 36,190,400 2,700,000 14,249,880 2,161,230 1,102,500 2,094,750 300,000 163,164,010 28,500,000 2,850,00 136,758,760 45,000,000 2018 15,770,000 100,000,000 44,210,480 2,700,000 15,914,880 2,281,110 1,188,900 1,918,350 300,000 182,365,370 31,500,000 3,150,000 149,633,710 46,000,000 Total 69,099,600 412,594,200 197,772,160 13.500,000 74,658,600 11,211,390 5,047,000 9,072,300 1,500,000 794,455,250 147,000,000 14,665,000 632,790,250 199,000,000

3,000,000 3,100,000 500,000 6,500,000 9,000,000 10,734,280

3,600,000 2,800,000 500,000 6,500,000 9,000,000 43,949,780

4,200,000 3,000,000 500,000 6,500,000 9,000,000 42,800,110

4,500,000 3,000,000 500,000 6,500,000 9,000,000 68,258,760

4,600,000 3,300,000 500,000 6,500,000 9,000,000 79,733,720

19,900,000 16,200,000 2,500,000 32,500,000 45,000,000 317,690,250

The total investments are estimated to be 65 million GBP for EPC, stationary machinery and processing equipment and 5 mill GBP for Land, buildings and outdoor areas. The period of depreciation is 20 years for buildings and 10 years for machinery (SL). Capital costs are assessed by using the current real interest (7.84 Percent) which is based on a market interest at 10 Percent and a 2 Percent predicted inflation. An interest rate of 10 Percent seems reasonable for such industrial investments. Corporate establishment trading & development fund (CETDF) is 30 Million GBP. Total funding 100 Million GBP. Labour cost at the plant is assumed to be 3.1 mill. GBP/year, which covers the salary for 50 full/Par time employees inclusive management-executive levels. In addition we assume that +10 Percent of these costs are needed for administration. Marketing and product development. An important item in the cost structure is product development and marketing activities. If the production plant is regarded as a going concern these activities should be included. An estimate is 10 Percent of the total variable and fixed costs in the system (30Million), which corresponds to about 3 Million GBP (average). These expenditures cover laboratory facilities, 2 engineers for product development and research, 1 laboratory technician and 2 national marketing and salesmen. The cost of marketing and product development is at the same level as similar biotechnological companies. It is however difficult at this stage to estimate the exact expenditures. Miscellaneous costs covers packing and other expenditures in connection to the production and sales activities.

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6. Organisation A Biorefinery plant as described may be organised as a joint stock company. In this case where the primary input is a standard bulk commodity it will be necessary to organise a formal contractual agreement between farmers and the plant. Likewise it will be necessary to establish a co-operative with contractual delivery agreements among farmers grain merchants-transporters and this could also include the contractors who provide land clearance and repair at rotations of crops as the Biorefinery CHP unit will be designed to make maximum use of straw availability. While Rape seed is a conventional crop, which is available from most of the European regions as a bulk commodity the ScotiaAghelek.1306 ideology will be to focus upon establishing a balanced supply into operations from the NES agricultural community and to exchange value directly in terms of outputs to the Scottish economy while stimulating and investing in downstream product developments. In this case it is important that the company has access to relatively large amounts of long term capital and this is probably best accomplished through shares, JV agreements and, by establishing a joint stock company. it will be relevant to create formalised contractual cultivation - delivery agreements for seeds as the OSR profiles indicate that special species of rape seed are a prerequisite for sustained commercial production promotion of the various end products mentioned above.

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As-Is Basis Moisture (%) Protein (%) Fat (%) Ash (%) Crude Fibre (%) Minerals Sodium Phosphorus Total Phosphorus Phytate Phosphorus Available Phosphorus Potassium Calcium Magnesium Sulphur Amino Acids Aspartic acid Glutamic acid Serine Glycine Histidine Arginine Threonine Alanine Proline Tyrosine Valine Methionine Cystine Isoleucine Leucine Phenylalanine Lysine Tryptophan Total Amino Acids Digestible protein (% of C.P.) Digestible energy (kcal/kg) 5.10 60.80 2.80 6.10 7.75

Typical Analysis - IP-60 Dry matter Basis % of crude protein

64.10 3.00 6.40 8.17

0.66 0.91 0.00 0.91 0.41 0.70 0.46 0.77 4.61 11.70 2.97 3.53 1.40 3.97 2.68 2.96 4.03 1.77 3.60 1.43 0.90 2.74 5.27 2.81 3.19 0.74 60.30 88.40

0.70 0.96 0.00 0.96 0.43 0.74 0.48 0.82 4.86 12.33 3.13 3.72 1.48 4.18 2.82 3.12 4.25 1.87 3.79 1.51 0.95 2.89 5.55 2.96 3.36 0.78 63.54 7.58 19.23 4.88 5.80 2.30 6.53 4.41 4.87 6.62 2.91 5.92 2.35 1.48 4.50 8.66 4.62 5.24 1.22 99.13

4340.00

Antinutritional Factors Phytate 0.00 Glucosinolates (umole/g) Total 3-butenyl 4-pentenyl 2-OH-3-butenly CH3-indolyl 4-OH-3-CH3-indolyl 2.59 0.72 0.11 1.33 0.10 0.25

0.00

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Typical Analysis - IP-55 As-Is Basis Dry matter Basis Moisture (%) 5.10 Protein (%) 57.50 60.59 Fat (%) 2.65 2.79 Ash (%) 5.77 6.08 Crude Fibre (%) 8.19 8.64 Neutral 28.34 29.86 Detergent Fibre (NDF) Acid Detergent 14.91 15.71 Fibre (ADF) Minerals 0.00 Sodium 0.62 0.66 Phosphorus 0.00 Total 0.86 0.91 Phosphorus Phytate 0.00 0.00 Phosphorus Available 0.86 0.91 Phosphorus Potassium 0.39 0.41 Calcium 0.66 0.70 Magnesium 0.44 0.46 Sulphur 0.73 0.77 Amino Acids 0.00 0.00 Aspartic acid 4.36 4.59 Glutamic acid 11.06 11.66 Serine 2.81 2.96 Glycine 3.34 3.52 Histidine 1.32 1.40 Arginine 3.75 3.96 Threonine 2.53 2.67 Alanine 2.80 2.95 Proline 3.81 4.02 Tyrosine 1.67 1.76 Valine 3.40 3.59 Methionine 1.35 1.43 Cystine 0.85 0.90 Isoleucine 2.59 2.73 Leucine 4.98 5.25 Phenylalanine 2.66 2.80 Lysine 3.02 3.18 Tryptophan 0.70 0.74 Total Amino 57.03 60.09 Acids Digestible 86.79 protein (% of C.P.) Digestible 4104.42 energy (kcal/kg) Antinutritional Factors Phytate Glucosinolates (umole/g) Total 3-butenyl 4-pentenyl 2-OH-3-butenly CH3-indolyl 4-OH-3-CH3indolyl

% of crude protein

7.56 19.18 4.87 5.79 2.26 6.54 4.39 4.85 6.61 2.90 5.90 2.36 1.36 4.52 8.76 4.66 5.12 1.21 98.84

0.00

0.00

2.59 0.72 0.11 1.33 0.10 0.25

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THE SUSTOIL FINAL REPORT 2010.

The ability to develop very large scale industrial uses for oilseeds (such as biofuels) is limited by the amount of land area available for growing industrial crops and by the yield potential of individual crops. It has been estimated that using the best management practices, combined with the optimum characteristics of several current OSR varieties to produce new germplasm, the potential realistic yield that could be attained is in the region of 6.5 tonnes/ha, compared to typically 3 3.5 tonnes/ha achieved in most of Europe. If the yield in those countries already attaining the EU average yield and above could be raised to this potential, then a further 12.4 million tonnes of oilseed rape could be produced in the EU, an increase of 76%, without increasing demand on land. Where farm yields are currently failing to keep up with those of the best performing crops, a number of causal agronomic problems have been identified. Fungal pathogens that affect early growth, and later stems and pods, are identified as key causes of yield loss in many crops. The potential seed yield of sunflower has increased greatly over the past 30 years due to improved harvest index; however actual seed yield has not increased so much because of limiting factors such as water stress and diseases. The main short term strategies are communication in order to inform farmers of the best cultural practices, based on both the post emergence strategy to control weeds and the increased possibility to irrigate the crop. Longer term strategy should focus on the adaptation of crop management to the expected water availability and the drought tolerance of varieties should be better investigated. The Biorefinery concept should exploit the availability of all potential raw materials from the chosen feedstock and the opportunity to capture valuable by products from straw prior to their conversion to biofuels cannot be ignored. The application of a green technology such as the use of supercritical CO2 offers substantial benefits within the Biorefinery concept as 100% of the required energy and extraction solvent can be obtained from other unit operations. It is envisaged that within this concept the raw materials (straws) can be pre-treated by extraction with supercritical CO2 to recover a range of valuable molecules before being used as a biofuel feedstock. The main barrier to the adaption of this step within the Biorefinery is the development of the markets for the extracted molecules rather than the technology. Alternative uses for the straw include the production of levulinic acid and methane via anaerobic digestion. Opportunities also exist for the physical separation of straw components to produce composite materials, the fibrous outer husk can be used in the production of particle boards or paper and the light-weight pith from the sunflower stalk could be used for insulation products or in absorption of metals from waste water. The primary processing of olives, rapeseed and sunflower has been examined and alternative novel processing technologies, improved residual oil recovery and the valorisation of residues wastes have all been proposed. Traditionally, for oilseeds a combination of pressing and solvent extraction is used. Alternative processes or process adaptations include e.g. dehulling, enzymatic (watery) pre-treatments, extrusion, supercritical fluid extraction, or microwave application were all considered and the advantages of each identified. Significant changes of the process will influence the composition, properties and quality of the meals. For example, low temperature extraction will probably result in proteins with better functional properties and therefore these potential process changes were also evaluated in respect of their impact on the recovery and quality of by-products. Conversion of the seed oils to biodiesel is a key step and one in which process improvements and reduction of waste products can significantly improve profitability. One of the main byproducts is glycerol and although a number of potential applications for glycerol have been identified, the generally low purity of crude glycerol (crude glycerol from a biodiesel process currently contains only 35% to 50% glycerol) limits its potential applications. The high cost of glycerol purification and increasing overcapacity force's small and medium biodiesel producers to pay for the disposal rather than utilise the crude glycerol. Hence, biodiesel's future stability and viability is likely to be dependent on innovative and economical technologies for the utilisation of the low-grade crude glycerol in order to offset the cost of biodiesel production. Novel routes to biodiesel including using immobilised lipases that can yield high purity glycerol and novel enzymatic glycerol-free routes to biodiesel production were considered. One example involves partial transesterification using lipases to obtain two fatty acid methyl esters (FAMEs) and one molecule of 2-monoglyceride instead of three molecules of FAME. Another potentially attractive route is the transesterification of triglycerides (TG) with methyl acetate, which yields three mols of FAMEs and one molecule of glycerol triacetate, which can also be used as a fuel. Both routes are potentially attractive due to a current surplus of glycerol in the market which seriously hinders the biofuel sector. The industrial partners in this project identified short term measures that could enhance the efficiency and competitiveness of existing processes and Biorefineries. These measures include modifications to the primary oil extraction process, developing new product streams and reducing waste streams. Improvements to the primary oil extraction process is mostly applicable to seed oils and a number of possible changes that could be made to an existing oil mill to improve the recovery of valuables components of oilseeds while conserving the main unitary operations of the processing were suggested. Dehulling of the seed and the use of alternative solvents including alcohols, water and supercritical CO2 were all considered to be viable options. An alternative approach would be to skip the extraction step by immerging flaked oilseeds in ethanol and catalyst and then using ethanol for extraction of ethyl esters of fatty acids. Ethyl esters would be more environmentally friendly as ethanol is produced by fermentation of biomass as opposed to methanol from fossil fuels. Moreover, this method is hexane free. The supply of olive oil is in surplus so improvements to the processing of olives needs to be focused on quality improvement and the reduction of aqueous waste streams so alternative methods of extraction and the treatment of waste water have been considered. Supercritical CO2 extraction has been presented as a more efficient extraction method alternative to solvent extraction in seed oil refineries and these conditions are very suitable for olive oil extraction. These extraction conditions (28-30oC and 300bar) are very similar to the old traditional cold pressing and this was good enough reason to examine the possibilities. Supercritical CO2 has produced much higher extraction yields of oil from most mediums, the oil was of much higher quality due to low temperature and no solvent residues remain in the extracted oils. Examination of the wet waste effluents of the olive mill confirmed that high value by-products could be derived from this waste stream, potentially generating sufficient income to eliminate the environmental impact of the effluent. These by-products include polyphenols, recovery of 3- 5% residue olive oil by filtration or skimming, soluble, fermentable sugars for ethanol and CO2 generation and a possible source of Squalene. The technology for reduction and/or utilization of olive mill wastes exists but it must be tailored to the size and economic means of the olive mill in order for these technologies to be applicable at the point of production and thus offer the maximum benefit. There are existing, and potential value added applications for renewable oils and these are predominantly related to specialised consumer use such as, in order of end value, industrial, food and personal care. As the value chain grows the degree of purification and natural/green nature of the extracted oils becomes more important. For example, there is a move away from solvent extracted oils to crushed seed oils as traditional solvents are viewed as non-green and potentially harmful. 'Greener' solvents could be considered but ideally oils recovered without solvent use are now required.

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SUSOIL Cont.:

Value and diversification can be added by producing more functional oil derivatives or extracting additional materials. Proteins, polysaccharides, liposomes and Squalene were all identified as having both high value and market potential As well as short-term, practical considerations, modelling and optimization studies were conducted on a range of oil Biorefinery-related processes. The processes ranged from upstream schemes such as oil extraction (cold-pressing and hexane-based extraction), protein extraction and supercritical CO2 extraction from wheat straws to actual biodiesel production and downstream processing of biodiesel by-products and their subsequent conversion to added-value chemicals such as succinic acid. Levulinic acid production was identified from the modelling as a high value product that could be produced cost effectively from the Biorefinery. Overall 11 different schemes were studied. The economic viability and the environmental impact of each scheme was investigated through economic studies and integrated Life Cycle Analysis (LCA) taking into account production rates for main products, by-products/wastes, prices of materials, emissions' rates/energy requirements, capital and other operating costs. Direct comparisons between different biodiesel production processes including various upstream and downstream routes were made using results from the optimization and Life Cycle Analysis studies performed. The expansion of oil crop production or of an increased number of oil Biorefineries will have social and economic impacts. Various policy scenarios to understand any potential environmental, economic and policy constraints which the bioenergy and Biorefinery sector could face within a sustainable development framework have been developed. Within a selected region potential stakeholders were identified and the social network within which firms and institutions (potentially involved in the production of biodiesel) operate was identified. Data related to the niche creation mechanism and the knowledge base of the stakeholders was also identified and from this the optimal balance of economic drivers and knowledge transfer was determined. Such a policy-mix would guarantee the emergence of a clear and stable converging trend towards the full innovation niche within the considered ten year timeframe and would ensure an efficient allocation of public resources. This project has drawn together academic and industrial knowledge in the field of oil crop Biorefineries and has delivered a wide range of reports that have proposed both short-term and longer term changes that can enhance the competitiveness of this sector. It has developed practical solutions and models for future growth and has disseminated this information widely. Further information can be found on the SUSTOIL website at www.sustoil.org SUSTOIL Reports and Deliverables Sustoil Final Report WP 1: Optimisation of Oil Crops Agronomy and Oil Yield and Utilisation of By-Products Deliverable 1.4 (1.2) Presentation by Katerina Stamatelatou WP 2: Optimisation of Primary Processing Deliverable 2.5 (2.1 + 2.2 + 2.3) Presentation by Wim Mulder WP 3: Developing Advanced Biorefinery Schemes for Integration Into Existing Oil Production / Transesterification Plants Deliverable 3.4 (3.1 + 3.2) Presentation by Zsanett Herseczki WP 4: Adding Value to Existing Biorefineries and Processing Facilities Deliverable 4.4 Presentation by Patrick Carre WP 5: Modelling, Simulation, Multi-Objective Optimisation and Life Cycle Analysis of Integrated Biorefining Schemes Deliverable 5.7 Presentation by Michael Binns and Constantinos Theodoropoulos WP 6: Modelling stakeholders interplay and policy scenarios for bio-refinery and bio-diesel production Deliverable 6.11 Final Periodic Report Presentation by Piergiuseppe Morone Presentation by Caterina De Lucia Newsletters May 2010 - Joint SUSTOIL and BIOREF-INTEG biannual newsletter, Biorefinery Researcher, Issue Four November 2010 - Joint SUSTOIL and BIOREF-INTEG biannual newsletter, Biorefinery Researcher, Issue Three. May 2009 - Joint SUSTOIL and BIOREF-INTEG biannual newsletter, Biorefinery Researcher, Issue Two. December 2008 - Joint SUSTOIL and BIOREF-INTEG biannual newsletter, Biorefinery Researcher, Issue One. Biorefinery Reports and Roadmaps November 2007 - Status Report Biorefinery 2007, report commissioned by the Dutch Agency for Innovation and Sustainability (SenterNovem), and co-financed by the Dutch Ministry of Agriculture, Nature and Food Quality (LNV). June 2007 - Mapping the Development of UK Biorefinery Complexes : Literature Review, NNFCC report. June 2007 - Mapping the Development of UK Biorefinery Complexes, NNFCC report. November 2006 - Achieving Sustainable Production of Agricultural Biomass for Biorefinery Feedstock, Biotechnology Industry Organization report. June 2006 - How much bioenergy can Europe produce without harming the environment?, EEA report. March 2006 - Biofuels in the European Union - A vision for 2030 and beyond, Final draft report of the Biofuels Research Advisory Council. February 2006 - An EU Strategy for Biofuels, Communication from the European Commission. April 2005 - The vision for 2025 and beyond - A European Technology Platform for Sustainable Chemistry , SUSCHEM report. April 2005 - Biomass as Feedstock for a Bioenergy and Bioproducts Industry. The Technical Feasibility of a Billion-Ton Annual Supply. Joint USDA and USDOE report. August 2004 - Top Value Added Chemicals from Biomass Volume I - Results of Screening for potential candidates from Sugars and Synthesis Gas, USDOE report.

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SUSOIL Cont.:

Biorefinery Publications Andersen M., Kiel P., Integrated utilisation of green biomass in the green Biorefinery, Industrial Crops and Products, 2000, 11, 129-137. Clark J.H., Deswarte F.E.I., The Biorefinery concept - an integrated approach, in Introduction to Chemicals from Biomass, ed. J.H. Clark, F.E.I Deswarte, Wiley, 2008. Clark J.H., Budarin V., Deswarte F.E.I., Hardy J.J.E., Kerton F.M., Hunt A.J., Luque R., Macquarrie D.J., Milkowski K., Rodriguez A., Samuel O., Tavener S.J., White R.J. and Wilson A.J. Green chemistry and the Biorefinery: a partnership for a sustainable future, Green Chem., 2006, 8, 853 860. Deswarte F.E.I, Clark J.H., Wilson A.J., Hardy J.J.E., Marriott R., Chahal S.P., Jackson C., Heslop G., Birkett M., Bruce T.J., Whiteley G., Toward an integrated straw-based Biorefinery, Biofuels, Bioproducts and Biorefining, 2007, 1, 245 254. Fernando S., Adhikari S., Chandrapal C., Murali N., Biorefineries: current status, challenges, and future direction, Energy & Fuels, 2006, 20, 1727-1737. Jong E. de, Ree R. van, Tuil R. van, Elbersen W., Biorefineries for the chemical industry A Dutch point of view, In Biorefineries - Industrial Processes and Products, ed. Kamm B., Gruber P., Kamm M., Wiley-VCH, 2006 Kamm B., Kamm M., Principles of Biorefineries, Appl. Microbial. Biotechnology., 64 (2004) 137-145. Kamm B., Gruber P., Kamm M. (Eds.), Biorefineries Industrial Processes and Products, WILEY-VCH, 2006. Koutinas A.A., Wang R.H., Webb C., The biochemurgist - Bioconversion of agricultural raw materials for chemical production, Biofuels, Bio products and Biorefining, 2007, 1, 24 38. Sanders J., Scott E., Weusthuis R., Mooibroek H., Biorefinery as the bio-inspired process to bulk chemicals, Macromolecular Bioscience, 2007, 7, 105 117. Thorsell S., Epplin F.M., Huhnke R.L., Taliaferro C.M., Economics of a coordinated Biorefinery feedstock harvest system: lignocellulosic biomass harvest cost, Biomass and Bioenergy, 2004, 27, 327-337. Wright M.M., Robert C. Brown R.C., Comparative economics of biorefineries based on the biochemical and thermochemical platforms, Biofuels, Bioproducts and Biorefining, 2007, 1, 49-56. Wright M.M., Robert C. Brown R.C., Establishing the optimal sizes of different kinds of biorefineries, Biofuels, Bio products and Biorefining, 2007, 1, 191-200.

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