1. Zindel
Investment Partners
Alternative energy vs Traditional
Alexander Abolmasov
Confidential
The Russian Power 2006
7th International Forum

2. Small installed capacity, but fast growth
Fuel share/growth rate matrix, 2005
20%
Other
(geothermal, Wind turbines
18%
solar, wind, 59 GW
Renewable Energy Existing Capacities, 2005
et etc)
16%
Power capacity annual growth, %
14% Biomass
power 44 GW
12%
10%
8% Geothermal
combustible Small hydro
power
renewables Solar thermal
power
6% 9,3 GW
and waste power
66 GW
Ocean (tidal)
0,4 GW
4% power
Solar PV, grid-
natural gas
hydro Solar PV, off- 0,3 GW
connected
grid
2%
oil
coal 3,1GW
2,3 GW
nuclear
0%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Fuel share of TPES,%
Source: REN21 2006 Renewables Global Status Report, IEA,
ZIP estimates
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3. Costs
Turnkey investment costs ($/kW), 2004
Typical Ene rgy Costs (ce nts/kW h), 2005
Integrated gasif ication
C os ts of central grid
supplies : natural gas combined cy cle (IGCC)
C os ts of central grid
Combined cy cle (CCGT)
s upplies: c oal
Traditional
resources
Electricity grid supplies
Adv anced high temperature
f rom f ossil f uels (av arage)
and pressure design on coal
Modern power stations on coal
Thermal power station
(traditional) on coal
Marine Energy
Marine energy
Geotherm al power
(plant s ize: 1-100 MW )
Geothermal power
Sm all hy dro
(plant size: 1-10 MW )
Small hy dro power
Grid connec ted
photov oltaic s
(2500 kW h/m 2 per y ear)
Grid connected photov oltaics
Alternative
Solar therm al power
resources
(plant s ize: 1-100 MW )
Solar thermal power
Of f -shore wind
(turbine size: 1,5-5 MW )
Wind energy
On-shore wind
(turbine size: 1-3 MW )
Biom ass power
Biomass energy
(plant size: 1-20 MW )
3 8000
0 5 10 15 20 25 30 35 0 1000 2000 3000 4000 5000 6000 7000
Power
le
Price
Wholesa
onsumer
Power
Price
Retail

4. Alternative energy – response to global trends
Rising fuel prices (~2 times since 2000)
Improved technology leads to high profit margins
Government support (subsidies and penalties)
Fossil fuels prices
$80.00 $7.00
$70.00 $6.00
$60.00
$5.00
$50.00
$4.00
$40.00
$3.00
$30.00
$2.00
$20.00
$1.00
$10.00
$0.00 $0.00
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Source: Bloomberg, ZIP estimates
oil crude prices, $ coal prices natural gas prices
4

5. But Substantial by Value
• 368 global renewable companies with mcap $222bn.
• TOP 50 with mcap $222bn.
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6. Alternative energy indices
250 70
American Stock Exchange indices:
60
WilderHill Clean Energy Index (ticker: ECO);
200
WilderHill New Energy Global Innovation Index (NEX);
50
Cleantech Index (CTIUS).
150
NASDAQ indices:
40
CLEN – Clean Energy Index;
Corr = 0,79 30
100
NASDAQ Clean Edge US Index.
World alternative indices:
20
International Economic Platform for Renewable Energies (IWR)
50
RENIXX - Renewable Energy Industrial Index;
10
Best performing stocks:
0 0
Share price Share price Market
May-05
Oct-04
Nov-04
Dec-04
Jan-05
Feb-05
Mar-05
Jun-05
Jul-05
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
Sep-04
Sep-05
Aug-04
Apr-05
Aug-05
Apr-06
Source: Bloomberg
change change Cap
1M, % 1Y, % ($mln)
Sector
ECO index Oil prices Biofuels (Ethanol) 16,12 29,4 20020
Archer-Daniels-Midland Co
Solar Energy 59,94 435,8 3168
Solarworld AG
Fuel Cells 7,29 131,6 1377
Energy Conversion Devices
Solarworld
Archer-Daniels-Midland Co Energy Conversion Devices
60
80
50
45 70
50
40
60
35 40
50
30
30
25 40
20
30 20
15
20
10
10
10
5
6
0 0
0
Dec-02
Dec-03
Dec-04
Dec-05
Jan-04
Jul-04
Oct-04
Jan-05
Jul-05
Oct-05
Jan-06
Jul-06
Apr-03
Aug-03
Apr-04
Aug-04
Apr-05
Aug-05
Apr-06
Aug-06
Apr-04
Apr-05
Apr-06
Jan-03
May-03
Jan-04
May-04
Jan-05
May-05
Jan-06
May-06
Sep-03
Sep-04
Sep-05
Sep-06

7. There has been a rush of initial public offerings by biofuels companies
Biopetrol Industries
Biofuels Corp 35
350
30
300
25
250
Volatile stocks, but the capital 20
200
markets have an appetite for 15
150
these and many other 10
100
renewable projects. 5
50
0
0
Mar-06
Dec-05
Jan-06
Feb-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Jun-04
Aug-04
Oct-04
Dec-04
Feb-05
Apr-05
Jun-05
Aug-05
Oct-05
Dec-05
Feb-06
Apr-06
Jun-06
Aug-06
Nov-05
Investors believed in future
returns.
Raised £13,3m in IPO, June 2004 (AIM) Raised £74m in IPO, November 2004
(Switzerland) – 92% of market cap
Market Capitalization at IPO – £22m
Market Capitalization at IPO – £80,4m
Stabilization: where fair value
D1 Oils EOP Biodiesel
25
600
lies?
500
20
400
15
Overoptimistic investors?
300
10
200
IPO too early? 5
100
0 0
Mar-06
Oct-04
Dec-04
Feb-05
Apr-05
Jun-05
Aug-05
Oct-05
Dec-05
Feb-06
Apr-06
Jun-06
Aug-06
Sep-05
Oct-05
Dec-05
Jan-06
Feb-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Nov-05
7
Raised £13m in IPO, October 2004 (AIM) Raised £26m in IPO, September 2005
(Germany) – 90% of market cap
Market Capitalization at IPO – £34m
Market Capitalization at IPO – £28,9m
Source: Bloomberg

8. Biodiesel will only become more attractive as oil prices increase
Announced Capacity
US average fuel prices, US$/gallon
10000
10000
3.5
9000
3
8000
2.5 7000
thousands tons
2 6000
1.5 5000
5,75% EU Target
1 4000 3184
3000
0.5 Source: Clean Cities Alternative Fuel Report, DOE
2000
0 1150
Nov 2004 Mar 2005 Sep 2005 Feb 2006 Jun 2006 1000
0
Gasoline Diesel Ethanol B85 Biodiesel B20
2002 2005 2010t
8
Source: Morgan Stanley, ZIP estimates

9. European Diesel Refining Capacity 2005
Rotterdam: (52m)
European Refining Capacity:
Shell – 20m Finland:
Western Europe – 526m BP – 18m Neste Oil - 10m
Exxon – 10m
Mediterranean Europe – 174m Other – 4m
Germany: (96m)
Hamburg:
Shell - 10m
UK: (87m) Ingolstadt:
OMV - 5m
Coryton:
Antwerp: (37m)
BP – 10m Esso – 5m
Total SA – 17m
Other – 7m
Fawley:
Exxon – 13m
Exxon – 16m Karlsruhe:
Other – 7m
Shell – 5m
Killingholme:
Total SA – 10m Esso – 4m
ConocoPhillips – 10m Ruhr – 4m
ConocoPhillips – 3m
Pembroke:
Chevron – 10m Wilhelmshaven:
Total SA – 4m ConocoPhillips – 10m
Stanlow: Lingen:
Shell – 12m BP – 4m
Teesside: Schwedt:
PetrolPlus – 5m Shell – 4m
Ruhr – 4m
Italy: (95m)
Other – 3m
ENI - 24m
Le Havre: (34m) Exxon - 19m Gelsenkirchen:
Total SA – 16m BP – 13m
ISAB - 18m
Exxon – 14m Saras – 15m Spergau:
Shell – 8m Total SA – 11m
Other – 17m
Greece: (20m)
Hellenic – 14m
Hellas – 6m
Spain: (60m)
Repsol – 35m
Fos-sur-mer: (36m)
CEPSA – 25m
9
Total SA – 17m
Exxon – 13m
Shell – 6m
Source: Morgan Stanley

10. Case-study 1: Biodiesel company D1 Oils PLC
BUSINESS MODEL
Key value drivers:
Own Key value drivers:
fully integrated, global biodiesel business
plantations fully integrated, global biodiesel business
model;
D1 Oils model;
low-cost and highly efficient feedstock ––
low-cost and highly efficient feedstock
Jatropha Curcas –– which is sourced for ~€365/ton
Jatropha Curcas which is sourced for ~€365/ton
Contract
Refining Raw Materials from joint-venture plantations in India, Asia Pacific
from joint-venture plantations in India, Asia Pacific
Farms and Africa (this compares with ~€600/ton for
and Africa (this compares with ~€600/ton for
rapeseed);
rapeseed);
minimization of the dependency on raw
minimization of the dependency on raw
materials supply;
JV Managed materials supply;
Distribution Farms risk diversification through JV agreements.
risk diversification through JV agreements.
Different oil costs, €/ton
700 650
D1 Oils raised £13 million on IPO to fund the 600
D1 Oils raised £13 million on IPO to fund the
continued planting of jatropha and to finance the
continued planting of jatropha and to finance the 465
500
construction of its modular refinery units.
construction of its modular refinery units.
365
400 334
300
200
100
0
Palm oil Jatropha oil Soy oil costs Rapeseed oil
costs costs costs
10
Source: Morgan Stanley

11. D1 Oils PLC: share price fluctuations
Source: Morgan Stanley
• October 2004, IPO (AIM) £13m to fund the Key value drivers:
Key value drivers:
continued planting of jatropha and to finance the fully integrated, global biodiesel business model;
fully integrated, global biodiesel business model;
construction of four additional refineries by low-cost and highly efficient feedstock – Jatropha Curcas –
low-cost and highly efficient feedstock – Jatropha Curcas –
November 2006, five by the end of the year. which is sourced for ~€365/ton (represent 85-90% of the total
which is sourced for ~€365/ton (represent 85-90% of the total
production costs);
•December 2006, The company has over £ 80m of production costs);
Strategic co-location of plant with oil refinig in Teesside.
short-term debt on the balance sheet. The debt is Strategic co-location of plant with oil refinig in Teesside.
risk diversification through JV agreements.
the part of the on-demand facility of £95,2m that risk diversification through JV agreements.
the company expects to renegotiate at the end of Risks
Risks
December 2006
Long-term horizon (not enough supply till 2010)
11
Long-term horizon (not enough supply till 2010)
Highly leveraged
Highly leveraged
Uncertainty on FAMY pricing
Uncertainty on FAMY pricing

12. Com parison of different fuels
Pellets Market
350%
Diesel oil
Cost of heat production relative to fuel oil,
300% Canada Baltics
Russia
13% 11%
10%
250%
Electric US
Sw eden
8%
power 19%
200%
Shale
%
150% Shale oil
Coal
Denm ark
Fuel oil
100% 7%
Peat Finland
Others (less
Wood chips, Austria 6%
Poland Germ any
than 5%)
sawdust 5%
50% 5% 5%
11%
Firewood
Gas
Source: Bioenergy International December 2005, Wood Pellet Association of Canada
0%
0 20 40 60 80 100
Price development in Germany
Coefficient of efficiency, %
Source: Clean Cities Alternative Fuel Report, DOE
Raw Oil
Wood chips, sawdust, pellets have low
Wood chips, sawdust, pellets have low Natural gas
costs of production and one of the
costs of production and one of the
highest coefficient of efficiency.
highest coefficient of efficiency.
Pellet market 2005 growth rate:
Pellet market 2005 growth rate:
Germany ––57%
Germany 57%
Sweden ––20-25%
Sweden 20-25%
Austria ––20%
Austria 20%
Russia ––23%
Russia 23%
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July 02
July 03
July 04
July 05
Jan 02
April 02
Oct 02
Jan 03
April 03
Oct 03
Jan 04
April 04
Oct 04
Jan 05
April 05
Oct 05
Jan 06
April 06
Source: DEPV

13. Case-study 2: Pellet Company
VAPO
Vapo Oy is one of the world’s leading peat industry companies and one of Finland’s largest sawmill
operators. The Vapo Group consists of the Parent Company Vapo Oy and four business areas: Local
Fuels, Pellets, Heat and Power, and Environment.
Pellet production is the largest in the Baltic Sea Region. Vapo has pellet plants in Finland, Sweden,
Estonia, Denmark and Poland. The number of Vapo’s own plants is 13.
Pellets deliveries (tonnes)
600000
500000
In 2005, Vapo’s own and its partners’ pellet mills
In 2005, Vapo’s own and its partners’ pellet mills 119%
produced aatotal of 503 000 tonnes of pellets (57,3 400000
produced total of 503 000 tonnes of pellets (57,3
MEUR). This equals about 2,4 TWh.
MEUR). This equals about 2,4 TWh.
Vapo’s pellets destinations: 300000
Vapo’s pellets destinations:
municipal district heating system;
municipal district heating system; 80,6%
power for the national grid;
power for the national grid; 200000
fuel pellets for the Finnish and world markets.
fuel pellets for the Finnish and world markets. 49,7%
100000
0
2002 2003 2004 2005
Source: Company data
13

14. European Wood Pellet Production 2005
Sweden:
1 356 000 tons
Russia:
758 000 tons
More than 240 pellet
More than 240 pellet
plants across Denmark:
plants across 535 000 tons
Europe.
Europe.
Germany:
388 000 tons
Austria:
409 000 tons
Italy:
14
169 000 tons

15. Solar Market
● Installed capacity - 30% CAGR
● The world solar photovoltaic (PV) market grew 55% in 2005, reaching $11.2bn. (2006e- $19bn)
● World solar PV industry raised more than $1,8 billion on capital markets over the past 1 year (27
transactions).
●Over 75% of global demand is now grid-connected, with Japan and Germany accounting for two-thirds of the
global market.
● Profit Margin - 30%.
European Solar Photovoltaic Installations European Solar PV Revenues
2500
1800
1600
2000
1400
1200
Megawatts
1500
1000
mln $
800
1000
600
400 500
200
0 0
2001 2002 2003 2004 2005 2006e
2006e
1999
2000
2001
2002
2003
2004
2005
Source: Frost&Sullivan
15

16. Germany:
Solon – 58 MWp
Schott Solar – 57MWp
SolarWorld – 44 MWp
Solarwatt – 36 MWp
Aleo Solar – 35 MWp
Sunset Energietechnik – 30 MWp
European Solar PV
Others – 104,05 MWp
Modules Production 2005:
569 MWp
Netherlands:
Shell Solar (Europe) – 24 MWp
Belgium:
Photovoltech – 3 MWp
Spain:
Austria:
Isofoton – 40 MWp
PVT-Austria – 2,6 MWp
BP Solar – 19 MWp
Others – 3,7 MWp
Others – 13,4 MWp
France:
Tenesol (Total Energie) – 30 MWp
Photowatt International – 29 MWp
Others – 0,43 MWp
Italy:
16
Helios Technology – 8 MWp
S.E. Project – 8 MWp
Others – 5,5016 MWp
Source: European Commission Joint Research Center, ENF

17. Case-study 3: Solar Company
Solarworld AG
Solarworld AG - Solar group with a fully integrated solar value chain process from solar silicon as the
raw material to high quality solar power generating systems.
It owns silicon production assets in order to limit dependency on external silicon supply and to secure
the raw material for the new sites.
BUSINESS MODEL
Silicon Wafer Cell Module
Trading
Procurement Production Production Production
EBITDA (€m) Consolidated net income/loss (€m)
Solarworld on 22 February
Solarworld on February
2005 announced the acquisition of
2005
108.3 52
announced the acquisition of
the crystalline solar activities of
the crystalline solar activities of
2004 2004
the Shell
Shell Group.
Group. The
49.4 18.1
the The
transaction includes production
transaction includes production
2003 2003
11.7 -1.5
sites in the US (California,
sites in the US (California,
2005 growth 2005 growth Washington State) and
Washington State) and
rate – 119,23% rate – 187,29%
2002 2002
11.7 -1.5
Germany, as well as distribution
Germany, as well as distribution
subsidiaries in Munich,
subsidiaries in Munich,
2001 2001
20.7 8.7
Singapore and South Africa.
Singapore and South Africa.
0 20 40 60 80 100 120 -10 0 10 20 30 40 50 60
Source: Company data
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18. Think about New Energy!!!
www.zindelfund.com
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