Ontario has a large forest biomass resource and is positioning itself as a leader in bioenergy production. It has implemented policies like the Green Energy Act and feed-in tariffs for biomass electricity to encourage investment in renewable energy. There are many existing forest and pulp and paper companies in Ontario that are looking to capitalize on the shift to bioenergy by investing in new facilities that convert forest residues and wood waste into electricity or wood pellets. The province aims to attract more private investment to help grow its bioenergy sector.

2. Ontario, Canada Location & Vital Statistics How is the Sector Positioned to Grow? Leaders in the production of Bioenergy Capitalizing on the paradigm shift to large scale bioenergy in Northern Ontario.

3. Ontario

4. 157 million customers within a day’s drive

5. Large Economy 39% of Canada’s Population – 12.9 million people 39% of Canada’s GDP 48% of Canada’s Manufacturing Shipments 43% of Canada’s Exports

6. Quick Facts, Ontario’s Forests 2% of the World’s forests 17% of Canada’s forests 21.8 million hectares of Ontario’s Crown forest is eligible for harvest. Annual allowable harvest area: 350,000 hectares

7. Proportion of Forest Compared to Total Land Area

8. Huge Biomass Resource Ontario’s forests cover nearly 700,000 square kilometres (270,000 square miles) – an area 1.5 times the size of Sweden! Sustainable annual Production of 30 million cubic metres! available merchantable wood supply utilized merchantable wood supply Annual Available Harvest & Actual Harvest 0 5 10 15 20 25 30 35 40 45 50 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 Year Volume (million m³)

9. Ontario’s Biofibre Supply 7.6 - 9.5 Total 4.7 – 5.8 Unused and available trees (i.e. roundwood) 3.7 Traditionally Unmerchantable (i.e. tops, branches and undersized trees) - from all current harvest operations and from unused and available trees Annual Supply Millions GMTs Sources of Forest Biofibre

10. 85% of Ontario’s Crown managed forest is 3 rd party certified (24.7 million hectares) (2007) Forest Certification

11. The Green Energy Act Developed to: Make a Ontario a global leader in clean renewable energy Conserve energy Stimulate innovation and technological advances to generate thousands of green jobs Maintain energy security and ensure climate protection.

12. Ontario is committed to get off dirty coal power by 2014 Ontario is investing in new forms of renewable peaking power (Biomass) to help balance the intermittent nature of some forms of renewable energy. Creating a 21st century "smart" energy system to better manage our supply mix, allowing for more renewable sources of power Ontario’s Coal Reduction Strategy

13. OPA Feed In Tariff 13.8 Cents/KWH for Biomass

14. Feed In Tariff On April 8 th 2010 the Ministry of Energy and Infrastructure and the Ontario Power Authority announced: 184 Large Scale 20 year Feed in Tariff contracts totalling: 2500MW of Renewable energy. Representing 8 billion dollars of investment in Renewable energy. “ With the Green Energy and Economy Act, Ontario has distinguished itself as a renewable energy leader, not only in Canada but in North America. Today’s announcement shows how quickly good policy leads to real results.” Tim Weis, Director, The Pembina Institute

15. Ontario Power Generation Coal Conversion OPG has committed to the conversion to 100% biomass power generation at its station in Atikokan Ontario (2012) OPG has just launched its Request for Indicative Pricing on Fuel contracts for Wood Pellets. (Closes May 12, 2010) Atikokan is the first of 3 facilities that are being assessed for conversion to renewable biomass fuels. Atikokan Generating Station

16. Biomass Electricity in Ontario; Room to Grow! Pulp and Paper facilities currently consume approximately 1.8 million green tonnes of biomass to produce over 120MW of renewable biomass power. Ontario’s Feed in Tariff has no Target Levels. Without Target levels we have no official limits on the amount of renewable energy that can be put into our grid.

17. Large Scale Projects Abitbibowater has completed the construction and is now in the operation of a 50MW steam turbine consuming primarily traditional sawmilling residual and non-merchantable wood biomass sourced from their traditional operating areas. 50MW Under Construction Biomass harvesting near Fort Frances, Ontario.

18. Tembec operates an integrated 7.2 MW co-generation facility at its Chapleau sawmill site. The co-gen consumes waste bark and hog fuel to produce electricity while the excess heat and steam is used to run the sawmills dry kilns

19. Capitalize On Ontario’s Paradigm Shift to Large Scale Bioenergy

20. Access to Biomass “ This government is putting Ontario’s wood to work to create jobs and generate wealth for Ontario when we need it the most. We are taking firm actions to ensure Ontarians get the maximum benefits from our forests.” – Michael Gravelle, Minister of Northern Development Mines and Forestry

21. Crown Wood Supply Competition Stage II Competitive Wood Supply Competition (Closed): Offered existing companies and new entrants from around the world a chance to compete for 11 million cubic metres of wood. Ontario is committed to the creation of green jobs and ensuring new investment in the forest industry.

22. Forest Tenure Reform The Province has developed a proposed framework and is inviting the people of Ontario to help create a modernized Ontario tenure and timber pricing system. The framework is characterized by: A greater role for market forces in the pricing and allocation of Crown timber. This would: Create a cost competitive and accessible supply Promote efficient value-added use of timber

23. Incorporated in 1940 by John B. Morgan in Thessalon Ontario, Midway Lumber employs nearly 115 staff. Sawmill processes 80,000m3 of wood annually and produces nearly 20 million board of value added product and 35,000T of residual wood material.

24. Midway Lumber Mills LTD. is fully certified under the Forestry Stewardship Council (FSC). MLM is actively investigating opportunities to capitalize on their available milling residual stream focused primarily on bio-energy initiatives.

25. Moncrief Construction Ltd was established in 1967. The company originally started in power line construction and has grown to encompass road building, sub station construction and maintenance, pipeline corrosion control, civil construction and most recently a forestry division.

26. Wincrief Forestry Products was formed in partnership with the Wabaseemong First Nation and Moncrief Construction Ltd. Wincrief Homes manufactures modular homes and currently employs 20 people. Windcrief Forestry Products is actively looking to diversify their manufacturing capacity with a primary focus on bio-energy and wood pelletizing initiatives.

27. Currently own the former Krueger Inc. veneer and wafer board facility in Longlac Ontario, with 17 hectares of industrially zoned land on two adjoining properties. Historical annual supply of 500,000 m3 of sustainable aspen fibre within 150km of the facility. The facilities wood procurement operations were certified by the Sustainable Forestry Initiative (SFI)

28. Established harvesting and fibre delivery infrastructure. Fully integrated and accessed to the Canadian Pacific Railway . Looking for partners in the establishment of an integrated value added/bio-energy facility.

29. Publicly traded on the TSE under the symbol TMB Tembec is a leading integrated forest products company, with operations throughout North America. Annual sales of $2 billion and employ 6,000

30. Operates over 30 market pulp, paper and wood product manufacturing units, and produces silvichemicals from by-products of its pulping process and specialty chemicals. Tembec markets its products worldwide and has sales offices in Canada, the United States, China, Korea and Japan. Tembec is actively seeking out investment/partnership opportunities in bio-energy related initiatives.

31. Consistently Ranked as a top 20 North American Lumber producer with a maximum annual output of nearly 1.1 billion board feet from seven facilities in Northwestern Ontario Terrace Bay Pulp Inc., a Buchanan owned facility has in place a 45 MW co-generation plant which satisfies all of the plant’s energy requirements. The Buchanan Company is actively seeking out opportunities in the emerging Bio-Energy and Bio-Fuels sectors.

32. Weyerhaeuser is one of the largest forest products companies in the world Weyerhaeuser Operates two Mills in Ontario. A state of the art Orient Strand Lumber Mill in Kenora, Ontario A modern Orient Strand Board (OSB) in Wawa Ontario. Weyerhaeuser Ontario is interested in looking into potential partnership opportunities. Weyerhaeuser in Ontario has access to over 1 million cubic meters of raw material.

33. Why are we Here? Ontario is here in recognition of the superior level of innovation in the bioenergy sector across Europe and especially in Sweden. We are reaching out to your experience and expertise to help shape the future of Ontario’s Bioenergy Sector.

34. WELCOME TO ONTARIO ! We want you to participate in this exciting and prosperous sector We can help!

35. Thank You! Stephen Roberts Business Development [email_address]