AQP ETANOL COMPANY S.R.L.

1. THE COMPANY AND THE MARKET 1.1. SUMMARY OF THE PROCEEDINGS OF THE BUSINESS PLAN

AQP ETHANOL S.R.L. is a development and innovation company that has found in a problem business opportunity. Currently the world is in critical times and that climate change has led to increased desertification reduction of glaciers and loss of ecosystems such as deserts and cloud forests that supply water to many areas of the world has brought this has brought as a result in less fresh water on the planet and as a consequence less water for agriculture which threatens world food security since the population is growing demographically quadratic form and agricultural air are decreasing by the advance of desertification and lack of water, yet this scenario are planting large areas of crops into biofuels confines of turn, is why we have sought an alternative that does not involve jeopardizing food security and seeks to solve an environmental problem that the use of organic waste from the production of rice as one of the 4 agricultural products increased global consumption is a serious problem, and thus exploiting the properties of rice husk is we have achieved what ethanol which when mixed with gasoline can get a biofuel that does not conflict with food security and solve the environmental problem of waste rice. DESCRIPTION OF THE ELEMENTS OF SUCCESS As a rice husk waste from rice production not incur costs for its production nor would have to plant more area and for many years been building to which is a clean and cheap raw material as compared with the production of ethanol from sugar cane which represents a cost of $ 40 000 per ha and water consumption of 18000 m3 which could irrigate and sow beans 6 campaigns. We live in an economy of intangibles and many consumers are environmentally conscious and therefore always seek and consume products that do not pollute the environment as is the case of biofuel GOALS OF THE PROJECT Power realization of a production plant for ethanol from rice husk

CONCLUSION There is another cheap and cost effective to produce ethanol without compromising environmental safety, which is obtaining it from waste rice husk which is economical because it is a waste material. SUMMARY OF PROCESINNOVACION.THE BUSINESS PLAN SHOWING IMPROVEMENT IN THE BUSINESS Our business plan thinks about the future of the business: how to go faster and what to do along the way to reduce uncertainty and risks. The following business process contents a set of logically related tasks performed to achieve a defined business outcome: The industrialization of waste from rice production as a result to get BIOFUEL. Also were conducted market research, product evidence, costs, among other studies to guarantee the use of rice husks as biofuel without affecting the ecosystem and the economy. Improvements by introducing something NEW / DIFFERENT FROM EXISTING KNOWLEDGE AND TECHNOLOGY Ethanol from cellulose can be produced from a variety of agricultural residues (corn, wheat, sugarcane, etc.), Plant wastes from industrial processes (paper pulp, sawdust) and energy crops such as switchgrass. The difference that makes our project is that we will not use land to grow crops that suppress and threaten the food security of the poorest and use water for feedstock crops that produce ethanol, rather than being used to plant products in large amount of demand as rice. This will be a higher quality biofuel without using all the resources mentioned above only based on rice husk. Organic waste of energy that abounds in rice growing areas when not in use becomes an environmental problem as it builds up around the mills because its decomposition is slow. Note that the rice husk biofuel results achieved in the environmental impact such as clearing forests to plant crops that produce biofuels and the decline of soil fertility, reduction of greenhouse gases among others. THE MARKET NEED Domestic ethanol demand of 250 000 liters per day, which proyections are 9125 0000 liters per year in the Peruvian market for biofuels. There is a global effort to develop clean energy. Japan: Are expected by 2030 with 20% ethanol and LPG instead of petroleum products.

Canada: the year 2015 will require a mixture of 10% ethanol. Finally, in China, Colombia and Venezuela have similar measures.

On March 31, 2005 approving the regulations of Law No. 28,054, the promotion of biofuels, which states that the percentage of fuel ethanol in gasoline marketed in the country will be 7.8%.

Principal Uses of Ethanol

16% 23%

combustible 61% uso industrial produccion de bebidas alcoholicas

THE PROBLEM: Domestic production of ethanol, is not satisfied, the only producer of ethanol (Romero Group) supply the domestic market. The international price of oil is not stable, with growth prospects. The company's existing ethanol production (Romero Group) affects food production. THE SOLUTION

PRODUCT/SERVICE SHOWS THAT MEETS AN IMPROVED CUSTOMER NEED

The product offered is ethanol produced from organic waste from agricultural bran of rice, (renewable resource), which improve vehicle performance, in fact; the lubricity of biodiesel extends the life of diesel engines. Compared with conventional fuels has the potential to produce lower emissions of pollutants, especially emissions of lifecycle greenhouse gases, which in other words, keep our environment clean. They enable fuel regardless of import policies and

fluctuations in oil prices, forcing a reduction in these costs, producing far less emissions harmful to living things, water and air. DIFFERENTIATE THEM FROM THEIR COMPETITORS The production of ethanol from rice bran does not affect food production. The production of ethanol is made from organic waste.

THE PRODUCT
NAME: 98 Ethanol GL, based on rice bran /AQP ETANOL COMPANY CONCEPT: We proposed to investigate a cost effective method of obtaining industrial ethanol from rice husks. The obtained results showed a yield of 25 liters of alcohol (ethanol) of 98 GL from 100.00 Kg. of rice husks, competitive traditional raw material molasses. The obtained method makes it profitable to produce alcohol for industrial ethanol from rice hulls and other agricultural residues, forestry and industry, and can turn the country into an exporter of alcohol and / or using this alcohol, as alcohol fuel (gasohol). CARACTERISTICS: Calories Non-toxic Oxygenating, non-carcinogenic Renewable and sustainable

The production and use of the mixture of 85% ethanol (E85) with gasoline saves 36% of fossil energy and saves 70% of greenhouse gases compared to gasoline production and use The production and use of the mixture of 5% ethanol (E5) with fuel-saving 1.12% of fossil energy and save 3% of greenhouse gases compared to gasoline production and use Ethanol has an octane rating than gasoline much higher-around 110 - what it does not burn as efficiently in conventional engines. APPLICATION Biofuels produced from bioethanol E5: E5 Biofuel means a mixture of 5% bioethanol and 95% of regular gasoline.

E10: E10 Biofuel means a mixture of 10% bioethanol and 90% of regular gasoline E85: A blend of 85% bioethanol and 15% gasoline used in vehicles with special motors. E95 and E100: Mixes up to 95% and 100% ethanol is used in some countries like Brazil with special motors. E-DIESEL: Bioethanol allows blending with diesel fuel additive using a solvent and producing a biofuel diesel E-Diesel ETBE: not marketed as a biofuel, but is used as a gasoline additive. ETBE (ethyl tertiary butyl ether).

STANDARD AND VARIABLES / CATEGORY

Variables: pressure and temperature Constants: the acid concentration and time.

RESOURCES / COMPOSITION
Action: rice husks Plant tissue composed of cellulose and silica elements that help your good performance and fuel)

TECHNOLOGIES USED
Fermentation Distillation

PRICE
The price of ethanol from rice husk, will depend largely on two factors: The cost of raw materials from which produces ethanol. The cost of processing to convert the feedstock into the desired product Common cost 1 liter of ethanol to 2.7 soles.

CONCLUSIONS OF THE TEST PROTOTYPE

Promoting ethanol production and consumption of rice husks generated internal economic importance in the field of agribusiness, a large demand for specialized direct labor and exploitation of existing and potential agricultural resources such as rice. Given the significant volumes of ethanol required, must be developed transport infrastructure, storage, distribution and use under the conditions of security techniques and product characteristics "ethanol from rice hulls' demands.

PRODUCT LIFE CYCLE

At present rice husk is a problem for many farmers, because they see it as waste and burn it, rice is a product that will never happen to stop in Peru and in many countries, so that the projection of our project and the development of our product (ethanol) has no risk of failure, as it has enough raw material. A projection made from rice husk, alcohol and added value, January-June 2007 ", gives an estimate of national production of 86 million liters of alcohol 96 GL and an aggregate value of 256'908, 750 soles, about 80 million. Therefore the product we produce is endless cycle of life as biofuel consumed in alcoholic beverages and industrial use.

TECHNICAL SPECIFICATIONS OF PROTOTYPE

Specifically, the scale is composed of lignin (20 to 25%), cellulose (35 - 40%) and hemicellulose (15 to 20%), by what is considered a suitable substrate for ethanol production, because of its availability and relatively low cost. It has successfully completed the circle of the technology to convert wasteligno cellulosic ethanol. Earlier in the twentieth century it was completely the saccharification of cellulose by chemical processes, but the cost of these processes showed that although it was technically feasible but economically it was not because the cost of oil was very cheap. 15 years ago a barrel of oil cost 12 U.S., now exceeds 130 USD with a tendency to go up. Since the mid 95's began the first steps in production testing and removal of cellulases for industrial application and since 2002 was achieved by the methodology that reduces costs by up to 30 times what it was before this time. One important being is the sum of the experience of chemical and enzymatic hydrolysis, knowledge of cellulases, cellulose features and improvement of the materials from process equipment. The use of biomass ligno-cellulosic residues as raw material for alcohol production has the following advantages: Cellulose is an abundant resource that is readily available in all types of plant material including waste products such as stalks and corn cobs, wood pulp, wood chips, sugarcane straw and leaves and rice husks. Cost is very cheap and rather solves a waste disposal problem. The use of lignocellulosic residues reduce the use of starches and sugars (corn, cassava, potatoes, beets, molasses, etc..), Which would have a better application in human food.

COMPONENTS AND ELEMENTS OF TECHNOLOGY PLAN

It will have a new technology for ethanol production will use organic materials in rice (husk) inedible. This technology uses subcritical water for the pretreatment of the raw material, followed by fermentation and distillation of rice hulls. 3 methods were used:Stages: chemical processing methods based on Duninng - Lathrop and Scoller - Tornesh., Biological processing, comprising: obtaining and selecting the yeast strain, inoculum preparation and inoculation and fermentation and distillation, usingfirst traditional computer lab glass, then a team called the pre-pilot and finally a small pilot plant, the latter two with our own design and construction advice, using national material

PROCESS FLOW

RICE BRAN
COLLECTION

PRE-TREATMENT

ENZYMATIC HYDROLYSIS FERMETATION

DISTILATION

ETHANOL

PRODUCTION SYSTEMS, MACHINERY AND EQUIPMENT

Production program: Steps established in function of time. Purchasing: the raw material is purchased "rice husk."

Market vendors: Groups of companies or companies that offer the raw material (rice husk etc.) productive market. F1: Collection F2: Pre-treatment F3: Enzymatic Hydrolysis F4: Fermentation F5: Distillation

QUALITY CONTROL PROCESS, SUPPLIERS AND PRODUCTION LINE

Quality control: Define technical specifications for each component Minimum specifications of the mixture (without altering national standard) Define quality control points in the process Establishment of procedures of the laboratory tests.

- Training and purchase of equipment

MANAGEMENT TEAM
FINANCIAL PROYECTIONS COMPANY INFORMATIONLEGAL BUSINESS ESTABLISHMENT - Company name: AQP ETHANOL COMPANY SRL - Purpose: The purpose company will produce ethanol from rice husk, sale, distribution, and marketing it to domestic and international markets.-The duration of the company shall be unlimited Processes: -Elaboration of the draft of constitution. -Preparation of the deed - Registration of legal persons - Sunat/Essalud (to register as taxpayers only RUC and request number. Addition, users must register their workers essalud.) -Special permits -Authorization of the book of lists Ministry of Labour and Employment Promotion (Document Processing Office)

VISION

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- Consolidate as leaders in the production and marketing of ethanol from rice bran, using clean technologies and encourage environmental culture of preserving our environment

MISSION
- In AQP ETHANOL COMPANY are entrepreneurs, values and commitment, we produce ethanol from rice husk to contribute to the care of our environment, we grow our business profitably and create value for our shareholders, for the people with whom work for our customers and suppliers and thus contribute to the progress of our community.

OBJECTIVES GENERAL OBJECTIVES

- Producing ethanol from the fermentation and distillation of rice husk and marketing in the domestic market through forward sales contracts.

SPECIFIC OBJECTIVES
- Strengthen partnerships with fuel distribution companies and joint users of rice.- Improving the technology for the production of biofuel. - Expand the supply market gradually

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SWOT
STRENGTHS OPORTUNITIES

- Low price of main raw material. - Extends the life of the engines - The combustion is more complete. - Increased demand in the market. - Increase the number of jobs.

- Free Trade Agreement. - Ease of credit. - Easy entry into the market by the existing monopoly.

WEAKNESSES

THREATS

- Seasonality of the rice crop. - Issuance of the final product waste - Storage of raw material

- Altering the price for the global economic crisis. - Reduction of crops by natural phenomena. - Competition in the market. - Increase the price of raw material demand.

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2.

Management Team:
C.E.O. Eng. Pedro Juan Davila Z. Finance Lic. Mariela Chuquirima Acesor Lic. Alexandra Sequeiros Marketing Lic. Patricia Castro Valencia

Logistic Lic. Noemi Oviedo P.

Operations and Maintenance Lic. Jeanberth Vera Moya

Acesors Eng. franco follano pata Eng. Patricia valencia bustamante

4 operadores

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3. Financial Proyections: INCOME STATEMENT: AQP etanol company S.A.A Income Statement For the Year Ended December 31 year 1 Sales Cost of good sold Gross profit Operating expenses Operating profit Other income and expenses Net profit before taxes Income taxes NET PROFIT 158400 120000 38400 19352 19048 8685 27733 8320 19413 year 2 221760 168000 53760 27093 26667 12159 38826 11648 66004

BALANCE SHEET

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Schedule of operating expenses AQP etanol company year 1 advertising auto expenses bank charges depreciation dues & subscriptions employee benefits insurance interest office expenses officer' salaries payroll taxes professional fees repairs & maintenance salaries & wages security supplies 1400 1960 900 4202 1260 5883 1300 2200 500 1300 2200 700 1000 2000 1200 2400 1500 900 year 2 2100 1260

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taxes & lincenses telephone utilities Other TOTAL OPERATING EXPENSES

2700 970 580

3780 970 580

19352

26393

4. Contact: Jeamberth Vera Moya, President and CEO AQP ETHANOL COMPANY S.R.L. 400 Venezuela Av. Tel.: +(51)958822307 Email Adress: jeanberth_24@hotmail.com

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