Industry, Corporate & Civic Responsibilities
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1 Woody Biomass Chips: Energy Chips & MDF Materials Heat Treated Phytosanitized Baled Wrapped Barcoded Our Mission We will maintain the most diverse, robust and economically beneficial forest products industry possible while providing meaningful and sustainable job opportunities to our logging and forest management communities. - Arthur House, President Maine Biomass Exports, Inc. 56 Stephenson Lane Belfast, Maine Tel: FAX drathous@gate.net Web: Industry, Corporate & Civic Responsibilities MBE operates under a basic premise that reliance upon renewable energy resources and its utilization allows for unique opportunities to provide a myriad of benefits to States and communities, their forests, and citizens. Woody biomass when employed in an ecologically and economically sustainable manner helps accomplish important goals. MBE s primary focus has always been on providing opportunities for workforce development, job growth and economic enrichment of urban communities. Sound biomass programs maintain existing forest product industries, provide renewable sources of energy and bio-based products, diversify and strengthen rural communities and their economies, reduce wildfire threats, improve air quality and increase the health and resiliency of forests. By being good stewards of our forests and adhering to best practices means and methods in everything we do, we not only secure the future of our own environment but, also we become good neighbors to our European counterparts in their quest for clean energy and sound environmental endeavors. We are built upon a foundational philosophy of providing quality services and products to clients from a Ground Up approach. We believe we can work with strategic alliance partners, suppliers and clientele to secure, produce and aggregate materials for clients at costs enabling them to achieve their goals. Utilizing two primary competitive drivers, Focus and Cost Containment we ensure best product at best prices available on long-term basis. Our negotiated contracts ensure clients with longterm bankable feedstock supplies at reliable pricing for durable time-frames. This guarantee is made entirely possible by doing what we do best and doing more of it (Focus) and striving for the lowest cost in everything we do (Cost Containment), which is not a function of cutting prices but, one of managing costs to provide for desirable margins and below industry pricing for our client s benefit. Maine s forests, which include the largest Continued on page 5 1
2 Maine s Forests Heat Based Phytosanitation Heat Based Phytosanitation Phytosanitation safeguards against potential threats posed by insects, nematodes or other contamination by adhering to stringent technologies that assure only the best feedstock is procured, and processed in accordance to best practices of the industry and offered for export under rigorous control and oversight by the USDA-APHIS, in strict accordance to acceptable EU Phytosanitation Rules and Regulations. While there are various means and methods of compliance to fumigation and or treatments, MBE has chosen to focus on Heat-Based Phytosanitation as its premier product intended to be offered into the EU either in bulk or baled, wrapped & barcoded for custody chain and sustainability documentation. MBE s chosen Phytosanitation system has been scrutinized by USDA and has been approved and determined as a Heat Treatment System that meets the requirements of the European Union. Our Phytosanitation System shall process debarked and chipped materials, from log-length feedstock to produce a Heat Treated, dried wood chip to approximately 30% or less moisture content. Materials will be processed in a drum drying process, at or above 165 Fahrenheit, then conveyed into a walking floor bin that moves the heated chips toward storage silos or material storage locations. Materials will then be moved through controlled heat chambers at sustained, verifiable temperatures at or above 56 Celsius (133 Fahrenheit) for a period of 30 minutes or greater. This process meets or exceeds protocol requirements of the EU for Phytosanitation Treatments of wood chips. If processed material is to be delivered in bulk, it is stored under protective cover awaiting loading to Panamax vessel bound for EU locations. If materials are baled, then they can be stored indefinitely outside without need for cover or warehousing costs. Productive capacity of our first line shall exceed 25,000 BDMT per month, with productive capacity to be enhanced accordingly. The forests of Maine stretch from Kittery to Fort Kent and from Jackman to Lubec. In fact, forests cover 90% (17.7 million acres) of the state, making Maine the most heavily forested state in the country. Northern and eastern Maine has the largest tracts of undeveloped forest in the eastern United States. In the western United States, large blocks of forest are publicly owned and overseen by the federal government. Maine is unique in that the public owns just 6% of forest in the state. The other 94% (16.7 million acres) is in private hands. Public Ownership The public owns roughly 6% (1,000,000 acres) of Maine forestland. Of that, the state of Maine owns Baxter State Park (235,000 acres), 55 State Wildlife Management Areas, 29 Public Reserve Lands (482,000 acres), and 32 State Parks (from 500 to 43,000 acres in size). In total, the state owns more than 800,000 acres of public land. The federal government owns the other 200,000 acres of forest, including the part of the White Mountain National Forest located in western Maine, Acadia National Park, and five National Wildlife Refuges across the state. Private Ownership Non-Industrial Private Landowners More than 250,000 families and individuals own more than 35% (6.2 million acres) of Maine s forest. Small woodland owners are those who own between one acre and 1,000 acres. Counted together as a whole, they lay claim to the largest share of Maine s forest. Industrial Landowners Companies that own paper mills, sawmills and other wood processing facilities own nearly 28% (5 million acres) of the forest, including large tracts in northern and eastern Maine. Large Non-Industrial Landowners A handful of landowners own 14% (approximately 2.5 million acres) of Maine s forest. Owners of large tracts of non-industrial forest include individuals, families and public and private companies. By definition, a large non-industrial forest landowner owns more than 100,000 acres. Investment Companies Investment institutions, such as banks, insurance companies, mutual and pension funds and university endowment funds, own about 15% (more than 2.6 million acres). MBE has Exclusive Contracts with Bankable Feedstock Providers for 1 Million US Tons of Feedstock Annually 2
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4 Emerging Technologies Baled & Wrapped Wood Chips 4
5 Industry, Corporate & Civic Responsibilities Maine s forests, which include the largest unbroken tract of undeveloped forest east of the Mississippi River, sustain tens of thousands of jobs in the forest products industries. That resource is intact and productive today and is a testament to good management by landowners and the ability of the forest-based economy to adapt, strengthen, and to diversify across markets for forest products. MBE focuses on the engagement of industry affiliates who hail from some of the economically depressed areas in the State of Maine. We seek to empower our work force with the tools, equipment and opportunities they need to enhance their self sufficiency, so well demonstrated for over 230 years in Maine. We endeavor to make Maine, once again, the most vibrant shipping port on the east coast once great sea captains, fishing and whaling vessels set to sea for commerce now we envision Maine as the place that Our Forests Go to Sea From. Our Civic Responsibilities are pure and simple. We follow the basic principles of one of the world s most recognized civic organizations: Rotary International. As a business person, and a 35-year Rotarian; MBE is run in accordance to two underlying Rotarian themes: Service Above Self and in all the things we say and do - we must operate by the Four Way Test. 1. Is it the truth? In every aspect of our business, our professional undertakings and transactions, we offer complete open-book access to our clients. When we say we are going to do something, we mean it. When we make a representation - it is true. When we develop long-term relationships - our word is GOLD - that is how we conduct business. A Walgreens VP once said, You call it a sleep-at-night test, you don t need to ask consent to do the right thing, you just do it. 2. Is it fair to all? The bedrock principle in any successful relationship and or business transaction must be that everyone in the transaction must have mutual equity. Without a sense of equity for all stakeholders - there is no cohesion or adherence to long-term goals. We strive for a fairness that provides that equity. 3. Will it build goodwill & relationships? To endure, the competitive enterprise system must be practiced within the framework of a strict moral code. Indeed, the whole fabric of the capitalistic system rests to a large degree on trust...on the confidence that businessmen and women will deal fairly and honestly, not only with each other, but also with the general public, with the consumer, the stockholder, and the employee. Call for Details: See how we can establish Long-Term Bankable Reliable Supplies of Industrial Pellets for your Needs Arthur House, President Maine; where our forests go to sea. In Service Above Self, we strive for ways to help others to achieve their goals and to be able to realize potentials and opportunities from working with others. By helping each of our clients, employees, suppliers and constituents to accomplish their goals, we reach our own - thus realizing that when we serve the most, we benefit the most. Under the Four Way Test we follow these principles: 4. Is it beneficial to all concerned? Earning a fair margin is right, but doing it without ethical consciousness, moderation, and without responsibility for consequences is indefensible. The tenets of truth, honesty, decency, and morality are now more complicated than ever before and create the often-used explanation, It all depends. But The Four-Way Test gives a bright, clear answer in any situation. 5
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