BIOMASS

Energy
Procurement
BEWI Circular
June 2023

CIRCULAR
ABOUT
US

BEWI Circular

CIRCULAR
About BEWI CIRCULAR
Berga by BEWI & BEWI Circular

• Berga Recycling has joined BEWI Circular part of BEWI ASA in June 2022.
“Through our acquisition of Berga, we continue to lead our industry’s change towards a circular economy.
We are super excited about the opportunities Berga’s platform provides us with, enabling us to challenge
existing business models and structure the supply chain for materials for recycling,” says CEO of BEWI,
Christian Bekken.

Berga’s vision is to become the world’s largest agency for materials for recycling. In 2021, the company
purchased and sold an annual volume of approximately 82,000 tons of materials for recycling through a
network of hundreds of customers globally. The trading is completed through an online trading platform,
which is linked to Berga’s comprehensive network of logistic partners. Through the system, customers can
track the delivery of the material, enabling improved planning throughout the value chain and securing a
seamless process from the completion of the transaction to the delivery of the material.

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About BEWI CIRCULAR
Operating Segments

June 2023 4
About BEWI CIRCULAR
Consistently delivering profitability growth

Delivering continued growth

and solid results in
challenging markets

In 2022, BEWI continued to deliver

solid results and strong growth from
organic and strategic initiatives.

June 2023 5
BEWI & SUSTAINABILITY CIRCULAR
A circular economy and an inclusive society

June 2023
6
ABOUT
BERGA BY BEWI

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Why BERGA ? CIRCULAR

 Founded in 2011, joined the BEWI Group in June 2022.

 Worldwide presence and international structure in place with resources

for representation, logistics, documentation, administration and IT
Sourcing
infrastructure.
 Access to a large volume of chips in 5 different countries
Inspection
 Well capitalized

 Sustained growth of more than 20% in the last 3 years.

Logistics
 Representatives in more than 15 countries

 Best in class trading platform

Documentation

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What is the Berga Platform?
Trading Commodity Collaboration platform

• Cluster of several different systems

• Provides visibility of collection of material
• Tracking of buying and selling opportunities
• Support our Circular methodology
• Support pricing simulation evaluation and
calculation
• Simplifies Freight Cost management
• ISO 14001 & ISO 9001 in preparation

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Why Biomass ?
Why Biomass
CIRCULAR
Energy transition & Strategic positionning

• The coal industry is in decline

• Strong global trend toward renewable energy
• Europe to achieve 32% of renewable energies consumption by 2030
• Targeting the paper mills industry which use wood chips to produce electricity and pulp
• Positioning Berga with customers and suppliers :
• Long term contract with customers
• Agreement with wood pellets project
• Long term contract with landowners and chips producers

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Carbon Footprint
Carbon Footprint CIRCULAR
Subtainability Program : Measuring our GHG and CO2 consumption

• Committed to establish full circle carbon footprint process

• Technology integrated in Berga business process to calculate real time the CO2 carbon footprint

• Using state of the art tools, such as Patch.io, to measure, report and adjust actions.

• Manage and mitigate risk

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 Biomass Products

October 23 16
Woods Recycled Products

Biomass & BioFuel

Wood Chips
Pulp & Paper

Wood Pellets Biomass & BioFuel

(White and black)

Biomass
Wood Logs Lumbers
Furniture

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Wood Certification
Berga ensure all our sources have the proper certifications that comply with international
compliance regulation
• FSC: Forest Substainability Certificate
• SBP: Sustainable Forest Program
• RED II: Recyclable Energy Directive 2018 (RED III have been approved in the past weeks but not official yet)
• ENPlus A1: A1 quality for household and small boiler while A2 is for industrial and have higher ash residue

FSC SBP REDII ENPlusA1

Europe
India
Pakistan
South Korea
Japan

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Our Suppliers

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Our Suppliers
Types and targeted partners
• Negotiated long term agreement with existing wood pellets producers to fulfill future requirements for Tata Power,
NTPC and GSECL Power Ltd
• Currently negotiating with start-up wood pellets production facility in North America. Launch date of Phase I in Q1
2025 with a capacity of 500,000 MT per year. Phase II will follow in 2026 with additional capacity of 500,000 MT per
year and Phase III in 2027 with a production capacity of 500,000 mt per year.
• In negotiation with other wood pellets production facilities in North America to commence operations in 2025 with a
production capacity of 500,000mt per year

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 Our Customers

Third quarter 2020 24

Our Customers
Types and targeted clients
Pellets:
• Supply of wood pellets industrial in Asia
• Supply of domestic wood pellets in Europe
• Currently negotiating to supply industrial wood pellets
to power plants in Europe

Chips:
• Multi-year supply contract (1M+ MT) with a Global Energy and services group
• Currently negotiating for a multi-year contract (1M+ MT )with a Mexican multinational building materials company
• Currently negotiating with paper mills

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 Transaction

Third quarter 2020 26

Trade example
Step by Step transaction

Sales Transport Fumigation

• Product Need • Contract based on •Contractual agreement •Planning inspection
analysis and based on specs, quality before loading with Berga •Fumigation process with
product specification, Phyto certificate release
understanding quantity & Price and preselected supplier •Shipping line booking representative
(Woodchips Only)
• Validating required confirmation & logistics
Certificates

Clients Supply Inspection

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Trade example
Loading Material scenarios

Woodchips
• Loaded in bulk in the ship holds
• Full load is ± 30 000 MT per ship
Woodpellets
• Loaded in bulk in the ship holds, full load is
± 30 000 MT per ship
• Loaded in bulk in super sac of ± 1 MT
• Loaded in bags of 15 Kgs on pellets in containers
• Loaded in bags of 15 Kgs on boat (high volume)

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Chronology of a transaction
• National Bank Margin of credit for US Letter of Credit to a maximum of $2,5M
• Insured with EDC Insurance program for 1% of the transactions.
• EDC Insurances on deposit for selected suppliers
• EDC insurance on Letter of credit to guarantee each contract with the bank

CUSTOMER BERGA TRANSIT FROM NORTH AMERICA

BERGA
APPROVED ORDER PREPARATION LOADING OFF-LOADING
LC CLIENT
INSPECTION
67 105
DAYS
0 5 60 65 85 DAYS

TRANSIT FROM SOUTH AMERICA & ASIA

FUMIGATION
(woodchips) OFF-LOADING

June 2023 29
 Summary

Third quarter 2020 30

Summary

• Strong worldwide network of suppliers, customers and representative

• International well capitalized corporation
• BEWI ASA listed on Oslo stock exchange
• Secured long term supply contracts with pellets and chips producers
• Concluded long term wood chips supply contract with a Global Energy and services group
• Currently negotiating to supply wood pellets to national energy companies in Asia
• Assist customers to meet renewable energy consumption target by 2030
• Complete in-house logistical team
• BEWI sustainability program up to 2030
• Corporate carbon footprint

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Other
THANK YOU

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