Investment case

Investment case

1. Demand for Biomass is Growing Every Day
The Brazilian market for wood chips is one of the largest in the world and continues to grow — 2023 being a record year. A major contributing factor is the increasing focus on green energy and biomass. Many large production facilities are self-sufficient in energy production due to the country's challenges with its power distribution grid, and there's a rapid shift from fossil fuels to bioenergy, which is driving massive demand for wood chips supplied to major industrial players' facilities around the country.

2. Demand for Wood Fiber Set to Explode While Supply Faces Challenges
The ongoing shift away from fossil-based materials (such as plastics and textiles) is gaining momentum daily. This, combined with stricter regulations on forestry in the northern hemisphere, is creating a significant demand-supply gap for wood fiber. Responsibly managed and certified plantations, such as those growing fast-growing species like eucalyptus — which matures in 5-8 years compared to around 80 years for pine — will play a critical role in the international raw wood commodity market.

3. Sourcing is Key – Our Unique Sourcing Capability is Ready to Scale to Meet Demand
Due to the supply gap in the raw wood market, sourcing is key — what you can harvest, you can sell. Eternali has spent the last five years surveying existing forest assets across Brazil and has invested in and developed a unique platform called Terroá. This platform provides direct access to official land databases, forming a one-of-a-kind search engine for finding the right land and raw material. With exclusive access to Terroá, we gain a significant advantage in sourcing raw wood materials and plantations — both for wood logs and residues for wood chip production. Our on-site teams in northern Brazil have also established strong relationships with local sawmills to further source residues for our biomass production facilities. With Terroá and our experienced team on the ground, we are positioned to scale and meet the rising demand.

4. Strong Customer Agreements in Place
Eternali has demonstrated its ability to both source forest products and run its own production facility in Brazil that meets the stringent quality standards required by our customers. For biomass production, we already supply major brands in Brazil. Additionally, for sourcing and trading wood logs, Eternali is set to finalize long-term agreements with some of the largest buyers in the paper production industry. This includes plantations that are currently in the process of receiving FSC-certification, ensuring that all our operations are aligned with global sustainability standards.

5. Sustainability at the Core
The team behind Eternali brings decades of experience in sourcing, managing international distribution chains, and operating local production for both domestic and international supply. We are fully committed to making Eternali a trusted supplier of biomass and wood fiber. Sustainability and ESG principles are at the heart of everything we do:

• The world needs greener energy, so let’s contribute to the transition from fossil fuels to biomass sourced from wood.

• The world needs more wood to replace plastic and oil, so let’s focus on producing wood from FSC-certified plantations and regions where growth rates are 5-6 times faster than in Europe or the US.

And we do all of this while adhering to modern ESG standards, including ensuring full traceability of our biomass sourcing and working exclusively with certified plantations for our wood raw materials.