Opening remarks of the Chairman of the Board Matti Sundberg

Summary of the speech of the Chairman of the Board Matti Sundberg at the Inauguration of 3rd Generation Bioethanol Production Line on 4 May 2010

Dear Mr. Prime Minister, Ladies and Gentlemen,

I am pleased to welcome you to the inauguration of Chempolis’ third-generation bioethanol production line.

Chempolis has made focused investments in the development of new technologies for the production of paper pulp, biochemicals and biofuel from non-wood and non-food raw materials since 1995.

Chempolis’ technology was ready for trial use approximately five years ago. In order to perform trial runs, Chempolis has been investing in this demonstration plant since 2008. Today, the plant features the technology of a small production facility and can be used in the engineering and procurement of commercial plants.

In 2008–2009, Chempolis obtained reliable results on the production of pulp using its formicofib™ technology. Quality expectations were exceeded in record time, and the papermaking properties were highly comparable to those of euca pulp.

We invited you here today to witness the production of biofuel using Chempolis’ formicobio™ technology and to celebrate the inauguration by attending the seminar in our production hall.

Today, we would also like to provide an answer to the question: What makes Chempolis’ formico® technology unique?

The formico® technology by Chempolis is the world’s first third generation (3G) biorefining technology. In short, 3G stands for the technology that produces paper pulp and biofuel from agricultural by-products, such as straw, and enables the utilisation of the entire vegetable matter, thus increasing the extent of added value and revenue of the process. In addition, the production process is energy self-sufficient and produces no greenhouse emissions, and the closed-loop circulation system minimises water consumption.

Based on the superior energy and environmental characteristics of the process, it can be stated that the technology requires less investments and enables lower operating costs than traditional manufacturing methods.

At least 5 billion tonnes of non-food/non-wood raw material are produced globally each year, which means that there is enough raw material for the papermaking and chemical industries and for the production of transport fuel.

It is no exaggeration to say that Chempolis’ formico® technology is the most significant innovation in the industry for years, and that the timing of its commercial launch is impeccable.

In celebration of the inauguration, may I ask Mr. Prime Minister to join me here to light some of Chempolis’ bioethanol which has, by the way, a 96 percent concentration of alcohol.