Baltic Clean

Fuels Project

Investment Overview
Winter 2016
Baltic New Technologies
•  Aim - to build a heavy hydrocarbons-to-diesel processing complex

•  Location – Ventspils, Latvia

•  Unique Technology – Veba Combi Cracking (owned by British Petroleum, licensed by KBR)

•  Expected Output - > 1 mln tpa of diesel

•  Target Revenue per year - > USD 1.7 bln

•  Target Profitability - EBITDA margin 25%

•  Total Investment Cost - estimated at USD 1.6 bln

•  Solving a lack of diesel production capacity in the European Union

•  Expecting to contribute nearly 5% to Latvian GDP

•  Creation of additional thousands of jobs

•  The only private sector project in Latvia formally endorsed under the framework of the European
Commission President’s EUR 300bln Investment Plan 2014-2020 for Europe

•  EUR 102mln tax exemption approved by the Government of Latvia and the European Commission

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Project Snapshot

ADVANCED VCC FEEDSTOCK PRODUCTS

TECHNOLOGY
Coal (30%): Ultra-low-sulphur
State-of-the-art 0.6 mln tpa diesel
process, that Up to 1.2 mln tpa
allows to maximize
conversion of heavy High sulphur fuel
hydrocarbons into oil HSFO (70%): Petrochemical
high quality light 1.4 mln tpa naphtha
oil products Up to 0.4 mln tpa
VCC Advantages

Ready for use high quality products

New opportunities for utilization of low-value feedstock
VCC — Veba Combi Cracker
technology
 Progress snapshot to date
Set up of Baltic New
Technologies, project SPV
domiciled in Latvia
Feasibility study completed
by KBR
Proposals for Licenses and
Basic Design Packages of
the main units received
Commercial proposals
For FEED received from top-
ranked international
contractors
The project is officially sealed as strategically important by the
Government of Latvia and European Commission
Long-term land lease
agreement signed with Free Port
of Ventspils
Government of the Republic
of Latvia approved tax
relief in the amount of
EUR 102mln
(Endorsed by European
Commission)
Core project team
comprising top-ranked
industry professionals
Memorandum of
Understanding and term sheet
signed with
Vitol Group, leading public
energy and commodities
Company, for supply and take-off
Memorandum of
Understanding and term
sheet signed
with Ventspils Nafta
Terminals for the use of basic
infrastructure
Memorandum of
Understanding signed with
Linde Group for the
construction of hydrogen unit
of VCC facility under Build-
Own-Operate arrangement