Social Entrepreneurship ATC

March

Trees for Livelihood

A Humanitarian Appli

Sustainable Energy P

cation of Cutting Edge,

roduction Technology

– South Africa – March 2008

2008

nspired by the personal beliefs of its Founders and major shareholders,

Anagenesis Trees Corporation (ATC) is embarking on a course of Strategic

Philanthropy by initiating its first Corporate Social Responsibility Program in

close cooperation with certain, select charitable organisations. Via the “Trees for

Livelihood Program” ATC intends to demonstrate Social Entrepreneurship by

drawing on its commercial professionalism and cutting edge technology-based

model green enterprise and superb market position to create positive systemic

change via focused local intervention in the social, economical, medical and

educational (skills development) circumstances of a group of contracted employees,

their immediate families and the circle of people they may care for.

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I F C O M P A N I E S BE L I E V E TH E Y A R E I N BU S I N E S S T O S E R V E

P E O P LE , T O HE L P S O L V E P R O B L E M S , T O U S E A N D E M P L OY

T H E I N G E N U I T Y O F T HE I R W O R K E R S T O I M P R O V E T HE

L I V E S O F P E O P L E A R O U N D T H E M BY L E A R N I N G F R O M T H E

N A T U R E T H A T G I V E S U S L I F E , W E H A V E A C H A N C E .

- P A U L H A W K E N -

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hile ATC’s booming expansion is taking shape via eleven scheduled

“Anagenesis Projects” worldwide, the creation of a new, humanitarian

version of the corporation’s commercial formula, based on “Social

preneurial Principles”, will form the local platforms necessary to –jointly-

ent the program.

ith the availability of adequate sources of capital forming the main

constraint of social entrepreneurs trying to initiate or scale up projects,

the “Trees for Livelihood Program” is characterized by the short, medium

ng term financial earning capacity of the underlying commercial Anagenesis

t. In that respect, strategic cooperation with multilateral agencies and (local)

nment to enhance the program’s effectiveness is unlikely to be burdened by a

budgetary dependency of the program.

nagenesis Trees Corporation (ATC) was formed to bridge the current

technology gap in large scale Celluloid Ethanol production, namely huge

global demand and the absence of a credible, sustainable supply. The

Company possesses the tools with which to redress this balance and, in so doing,

spur a wave of commercially viable and environmentally friendly

investment.

ATC possesses two unique intellectual property assets. The first

of these is an extremely fast growing, pollution clearing tree, that

re-growths from its stump after cutting. The second is a

revolutionary celluloid ethanol production method.

ANAGENESIS – the Gree irth

lends its name to the compa

he basis for ATC’s intellectual pr

over 30 years research and devel

of forestry, farming, business

investments. Through over 16 years of pain

research and combination of the more rob

species, Anagenesis has developed the u

selected Anagenesis Trifolia Tree that gro

is stronger than traditional Asian species.

he selected tree is native to the O

history. The original species

extremely fast growth, clusters of

lavender flowers, large, elephant-ear-

extraordinary cash value for timber. It shou

Anagenesis Trifolia Tree grows larger in o

old pine trees and yields 3 to 4 times more

to its extremely high celluloid content. A

harvesting the trees at the end of the first

they can be harvested all year round (by ro

forest farm per week, to ensure that there

place). Any delay in harvesting is unproble

do not wilt and decay like corn; they will

and yield more ethanol.

A

T

T

Forest Farming inv

cater to institutions

revenues until trees

the species. Yet, for

are competitive com

to their rate of retur

the volatility in trad

The Greek word for re

name to the company and the Anagenesis Trifolia Tree.

–Year-round harvests due to

F O R E S T F A R M IN G R E - D E F IN E D

estments (usually specialized in timber) are very long-term and usually

, pension funds and High Net Worth individuals. Investors don’t see

are harvested which can be 15 to 40 years from planting, depending on

est farming/timber investments provide steady, consistent returns that

pared to stock, bond, commodity, direct and alternative investments. Due

n predictability and portfolio management optimization, they smooth out

itional investment cycles. Anagenesis has added a new dimension to this.

fast regrowth from stump

k word for renewal, renovation and total reb

ny and the Anagenesis Trifolia Tree.

ANAGEN ESI S

newal, renovation and total rebirth – lends its

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operty encompasses

opment in the fields

and agricultural

staking and intense

ust and fastest grow

nique, scientifically

ws more rapidly and

rient and has a long

is known for its

showy and fragrant

sized leaves, and

ld be noted that the

ne year than 15-year

celluloid ethanol due

TC intends to start

year after planting;

ster, one piece of the

is always a forest in

matic since the trees

simply grow larger

nce the trees are harvested, Celluloid Ethanol

can be produced using our unique and

exclusively patented distillery. We use a

combination of fermentation, hydrolysis and a mixture

of acids combined with the latest IT technology that

renders Anagenesis’ Celluloid Ethanol system a very

efficient and inexpensive system to operate as compared

to enzymatic processes. The requisite constituents in

our process are: 1. Trees (trunks, leaves, branches etc),

2. A mixture of acids and 3. A plentiful supply of water.

Nothing goes to waste; the water can be reused again

and again while the residue can be sold and used for

agricultural purposes. As mentioned, the system is inexpensive to run which makes

it financially viable even without subsidies.

ur cellu

tank to

stations

to a massive 91%

ethanol with a sp

converted in an

O

O

Albeit promising, existing ethano

overwhelming majority of ethanol

To satisfy the targets set by bot

Union, production must increase s

will lead to even greater price incr

While this is a major disadvantage

of fossil fuel energy required as in

only 30%* (National Geographic

22%** (substantial but not adequ

requires huge storage facilities for

production of celluloid ethanol, wh

The only available celluloid ethagrants. Thus, there is no productio

*) By comparison: the Anagenesisrequired.

**) By comparison: the Anagenesis91-100%

CELLULOID ETHANOL APPLICATIONS:

ATC is able to combine the production of

celluloid ethanol with a specially convertedelectricity generator to produce clean, zero

emissions electricity via a Closed Loop System.

ATC’s celluloid ethanol can be mixed with fossil

fuel (normal oil) in a special tank to producee.g. E85 or E15, which can be sold todistributors/gas stations.

loid ethanol can be mix

produce E85 and whic

. Carbon dioxide emiss

. Alternatively, we are

ecially converted elect

environmentally friend

or

IN PE R S P E C T IV E

l production techniques suffer from various problems. The

in the United States and European Union is derived from corn.

h the United States Federal Government and the European

ubstantially on the already vast increase of the last years. This

eases on sensitive foodstuffs destined for human consumption.

in itself, the biggest disadvantage of corn is that for every unit

put to produce ethanol, the output is only 1.3 units, a return of

, October 2007) and a drop in carbon dioxide emissions of

ate). Corn-based ethanol can be harvested only once a year,

both the corn and the ethanol. The answer is the large-scale

ich exists neither in the United States nor Europe at present.

nol technology is financially non-viable without subsidies orn of clean, zero emissions electricity derived from ethanol.

Tree yields 1100-1200% more energy than the input

Trifolia Tree based ethanol reduces CO2 emissions by

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ed with fossil fuel (normal oil) in a special

h can be sold directly to distributors/petrol

ions through the use of E85 are reduced up

able to combine the production of celluloid

ricity generator. In this scenario ethanol is

ly manner to produce steam which in turn

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powers the generator. Apart from the initial use of electricity to start the ethanol

distillery and generator (a single occurrence), the system is 100% self sustained since

we will be using part of the electricity produced to power the distillery and we will

be using celluloid ethanol to produce electricity. This is defined as a CLOSED

LOOP SYSTEM, which is 100% clean and generates 100% renewable energy with

zero emissions. The ultimate environmentally friendly power generation system, in

other words. Anagenesis Trees Corporation’s system of plantation management,

celluloid ethanol and clean electricity production is aimed at reducing environmental

damage and benefit the Earth while demonstrating that repairing the environment

can be profitable in more ways than one.

nagenesis Trees Corporation aspires to change the landscape with a forest

investment offering revenues as early as one year from planting, an annual

IRR ranging from 30% to over 150% depending on the location of the

forest, and the potential for dividends to investors as early as the second year from

planting. It is a forest investment that will be harvested all year round and produces

large quantities of celluloid ethanol, i.e. 11 to 12 times (1100% to 1200%) more

energy than the input required, drops carbon dioxide emissions by a staggering 91%

to 100% without detriment to the agricultural market and without affecting

sensitive food prices. Extremely important, also, is the fact that our unique,

exclusive breakthrough technology is financially viable even if the oil prices drop

below $40 a barrel without a single cent in subsidies.

hile the secondary income streams – ethanol, agroforestry, carbon

credits and renewable energy credits (RECs) – are compelling in their

own right, electricity is slated to be our main source of revenue.

Electricity will be bought by local Electricity Authorities (public or private) or

directly by the State, Country or neighbouring Countries depending on the project’s

location. Since we can produce celluloid ethanol at will we can adjust the generation

of electricity to peak hours and thereby achieve improved financial performance if

this is an objective of our local partner. Also, storage spaces are kept to a minimum

because harvesting occurs all year round. Unlike corn or other crops, the trees do

not go bad if they are not harvested – they simply continue to increase in size, which

in turn translates to more ethanol and more electricity. We need approximately

18,500,000 trees to be able to produce 100,000,000 American gallons of Ethanol on

an annual basis and power a 520MW generator (24/7) all year round, providing

electricity to –by average- a minimum of 960,000 middle-income South African

households (or a much higher number of low-income households).

A

W

-A Humanitarian Application of Cutting Edge, Sustainable Energy Production Technology-

Trees for Livelihood

Anagenesis Trees Corporation (ATC) is a new corporation using cutting edge technology to contribute innovatively – both directly and indirectly - to ongoing efforts to

curb the greenhouse effect. Its patent pending fast growing tree not only represents the ultimate “environmental filter”, it also re-grows from its own stump when cut. The

Anagenesis Tree’s extremely high cellulose content forms excellent feedstock for ATC’s other cutting edge innovation, an inexpensive technique to produce “Cellulose

Ethanol” with high octane levels for multiple applications. The short, medium and long term earning potential of this unmatched and exclusively patented method is

enormous, demonstrating that profit-oriented interests and environmental restoration are compatible and, in fact, logically symbiotic.

In addition to three European and eight scheduled US-based projects – all driven by normal commercial entrepreneurial principles and forming the sound basis of any

company - the members of ATC’s management also intend to realize their personal convictions by assisting in launching a new, humanitarian version of ATC’s corporate

formula, based on “Social Entrepreneurial Principles”. The main objective of said project is to benefit a substantial plantation workforce and their families and the circle of

those for whom they may care, with a special attention to the most vulnerable people of all, children!

INVESTORS

PLANTATIONPLANTATION – VILLAGE-Home for Workers & their Families-

INTEREST-from Year 2 onward-

LABOUR

NET PROFIT ALLOCATION:

FIXED TERM INVESTMENT

Awareness-Buildi

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One Worker’s Income should support minimum Ten FamilyMembers

Housing for Families

Health Care for Families Nutrition for Families (feeding schemes)

Education for Children

Skill Development & Education for Workers and theirfamilies (e.g. Forestry)

Development of Local Infrastructure

Protection

ng