Introduction Letter ALTBIOT CC

Herewith I would like to render our respect and thank you for your interest shown in our company and products. Let us provide you with more detailed information about our activities.

Alternative Fuel Biotechnologies, Close Corporation (AltBioT CC) is a head company that runs planning and financial management for the bio mass recycling factories, which produce ecologically “clean” bio products and bio fuel – wooden fuel granules (pellets). These pellets come as a result of a zero-discharge and ecology-friendly process of wood waste recycling that is performed in full compliance with Kyoto Protocol.

In 2007 AltBioT invested into construction of two advanced wood product and pellet factories in Krasnodar and Vologda Regions. The first factory-which is situated in Pavlovskaya village of the Krasnodar’s territory- has been launched in the first quarter of 2009, the second one is scheduled to be launched in the fourth quarter of 2010. Raw material consumption of each factory reaches up to 130 thousand m3 of wood annually (wood production inclusive). The nominal capacity of wood pellet production line used in each factory comprises 10 tons of finished goods per hour.

In the long run, between 2009 and 2020, we plan to invest in construction of 20 such a factories all over the territory of Russian Federation.
Commercial output of our factory is well competitive on the world market and meets the most exacting requirements of quality and environmental safety. Ninety percent of raw materials consist of hard wood (ash, acacia, oak, beech, maple); the equipment for pellets production carries into effect innovative kinematic solutions.

Taken together the above mentioned factors allow us to produce pellets of higher density (up to (in bulk) 760 kg/m3) compared to that of our competitor’s with maximum heat value index of 18 MJ/kg.

Assortment of AltBioT bio produce is now comprised of industry quality pellets (intended for heat and power stations and boiler houses), wood processing products and in the nearest future-when our second     plant starts pellet production-of premium-grade pellets  (intended for private consumers).

Wood output can be divided into several basic groups, such as follows:

• Solid glued woodblocks for building and windows-production;
• High-quality millwork (windows, doors);
• Three-layer furniture board;
• Three-layer floor-covering.
• Euro pallets
• Parquet wood

The use of wooden granules-as an alternative energy carrier- for electricity and power production is beneficial to both energy producers and consumers due to high level of convenience, safety, efficiency and ecological compatibility of such kind of alternative fuel.

Our technological approach is distinguished by the most rational use of raw materials and a waste free production as it implies:

• differentiated scheme of processing
• handling of all wood kinds (including wood of low grade, dead, damaged by fire or wind, cut under the program of sanitary felling, environmental harvesting or routine reconstruction of artificially-planted field-protecting trees that need to be replaced due to its age)
• usage of all parts of the tree trunk (including crown and root)
• internal redistribution of leftovers for their processing and transformation into high-quality and profitable output.
• usage of in-house produce to cover energy needs of our own factory (heating boilers, drying cells, etc.)

At present our specialists, in collaboration with the equipment producers, work on the possibility of agricultural leftover utilization – such as straw, flex boon, sunflower seed husk – and easily renewable biomass – such as bulrush – as a raw material for solid fuel production.

AltBioT carries out its managing activity in compliance with ISO 9001-2001 standards, aiming at the subsequent certification.

To streamline the production accounting AltBioT will use cutting-edge ERP (Enterprise resource planning) software helping to monitor the assets turnover, daily performance records, equipment efficiency and process flow coordination

AltBioT products are being realized on the European market through the Trade House, which will incorporate a Distribution center, capable of handling up to 100 000 tones of merchandise per year with further expansion potential.

The establishment of the Trade house took place in April 2009. The EU representative offices of AltBioT are scheduled to be open in  2010.