December 18, 2018
Attention
This is an unofficial translation of an excerpt of the press release issued on December 6,2018 by Daiwa Energy & Infrastructure Co. Ltd. The original press release is inJapanese.,

Daiwa Energy & Infrastructure Co. Ltd

DEI to Invest in Bioendev AB in Sweden

Daiwa Energy & Infrastructure Co. Ltd. (President: Hideki Araki, Headquarters: Gran
Tokyo North Tower, 1-9-1 Marunouchi, Chiyoda-ku, Tokyo / “DEI”) agreed to subscribe
for the shares issued by Bioendev AB (CEO: Johan Berggren, Headquarters: Korsvägen
1, 913 35 Holmsund, Sweden / “Bioendev”) on December 5, 2018.
Bioendev is a leading torrefaction* technology and plant engineering company withproduction technology for bio-coal. Bio-coal is drawing attention as a fuel to replace coalamong the global trend for a reduction in greenhouse gas emissions and the switch froma power situation dependent on coal-fired power generation to clean energy including
biomass power plants.
*Torrefaction is the formation of carbides that decompose organic waste, especiallywoody biomass, into substances with high carbon content by thermal decomposition at
200 to 300°C. Bio-coal generated by torrefaction can increase the efficiency oftransportation and storage because the amount of energy held in bio-coal is 20 to 30%
higher than that in wood pellets. In addition, bio-coal is attracting attention as aproduction technology of the biomass fuel supplied to thermal power plants in Europe
and the United States. This is because bio-coal allows thermal power plants to greatly
increase the co-firing rate with cola without replacing existing facilities.
We aim to support further business development and to increase the corporate value ofBioendev. We will do this through the dispatch of outside directors and the build-up of
Bioendev's solid management base utilizing capital we have invested. In addition, wewill also pursue collaboration with Bioendev utilizing our global network and know-how

in the field of renewable energy.
We are promoting joint projects such as importing PKS from Southeast Asian countries
and constructing a wood pellet plant in Vietnam with our alliance partner, Biomass
Fuel Co., Ltd (President: Eisaku Kuroda, Headquarters: 2-7-14 Kyobashi, Chuo-ku,Tokyo). As we invest in Bioendev this time, we aim to enhance our biomass related
businesses from a technology perspective and to accelerate globally including in NorthAmerica.
The whole of the Daiwa Group has proven strong with initiatives on the Sustainable
Development Goals (SDGs) adopted by the United Nations in 2015 and announced thelaunch of the SDGs Promotion Committee chaired by Seiji Nakata, President and CEOof Daiwa Securities Group Inc. This investment in Bioendev may also contribute toachieving the United Nations’ 17 SDGs, in particular, Goal 7: Affordable and Clean
Energy, Goal 9: Industry, Innovation and Infrastructure and Goal 13: Climate Action.
Daiwa Securities Group will promote a renewable energy business and contribute to theachievement of SDGs going forward.

1. Outline of Bioendev AB
Incorporation

2007

Headquarter

Korsvägen 1, 913 35 Holmsund, Sweden

Major ShareholderUmeå Energi AB

Representative

Johan Berggren

Business

Research and Sales of Torrefaction TechnologyWeb Address

http://www.bioendev.se/

2. 17 Goals of SDGs *This investment contributes to three goals below【Goal 7 】 ： Affordable and Clean Energy
Promote renewal energy through bio-coal【Goal 9 】 ： Industry, Innovation and Infrastructure
Create added value utilizing Torrefaction Technology【Goal 13】 ： Climate Action
Contribute to prevention of global warming by suppressing CO2 emissions

3. Outline of Biomass Fuel Co., Ltd
Incorporation

2008

Headquarter

2-7-14 Kyobashi Chuo-ku, Tokyo

Representative

President: Eisaku Kuroda

Business

Procurement, Manufacturing and Sales of Biomass Fuel

Web Address

http://www.biomassfuel.co.jp/End