Purina project

Olive Mill Waste Management Project

1

Waste management for olive mills - Developing tomorrow needs

Agenda

- Context - Market Landscape - Investment Analysis - Team on the Ground - Next Steps

2

Waste management for olive mills - Developing tomorrow needs

Concept

Input

Output

Impact

Value creation

Raw materials

Products/commodities

Net Revenues

Investors yield 100%

150 Tons Leafs

Olive oil 100 Tons

118K

5000 Tons Solid

Energy 3.958MV

3.5 Million

10000 Tons Liquid

Polyphenols 15 Tons

7.5 Millions

100% each year

Total Waste 15,150 Tons

3

Waste Management for Olive Mills Project

Significant importance of the polyphenols as they are major antioxidants

ANTIOXIDANTS,

, ANTIMICROBIAL, CARDIOVASCULAR,, DISEASES,, PREVENTION,

ANTI%CARCINOGEN, ANTI%MUTATION!

Source:!!Published!data!on!the!eect!of!an5oxidants!

Waste management for olive mills - Developing tomorrow needs

4

The polyphenols market is of high interest for pharma & agricultural uses

Ingredient)for)pharmaceu2cals)on)Cardiovascular) diseases) ) Fito)M.)et)al.)Atherisclerosis,)181,)149@158,)2005) ) "Oxida'on*of*LDL*is*a*hallmark*for*atherosclerosis*and* coronary*heart*diseases*development.*One*of*the* earliest*steps*in*the*genera'on*of*oxidized*LDL*is*the* lipid*peroxida'on*of*polyunsaturated*fa>y*acids.*Lipid* peroxida'on*and*its*chain*reac'on*in*LDL,*can*be* interrupted*if*LDL*lipids*are*protected*from*free* radicals*by*an'oxidants,*such*as*phenolic)content)of) olive)oil)"* * Preliminary)clinical)trials)has)been)completed)under) LIFE)ENVIRONMENT)PROGRAM,)No:)LIFE013)ENV/ GR/000223,)and)more)research)could)be)funded)to) boost)the)use)of)polyphenols)in)the)pharma)industry))

Ingredient)for)biological)pes2cides)and)bio@fer2lizers) ) ) Paraskeva,)C.)A.)et.)al)"Water)environment) research",)Volume)79,)Number)4,)April)2007)) ) "Olive*mill*wastewater*(OMW)*produced*from*small* units*sca>ered*in*rural*areas*of*Southern*Europe*is*a* major*source*of*pollu'on*of*surface*and*subsurface* water.*In*the*present*work,*a*treatment*scheme*based* on*physical*separa'on*methods*is*presented....*The* concentrated*frac'ons*collected*in*the*treatment* concentrates*were*characterized*by*high*organic*load* and*high*content*of*phenolic*compounds.*The* concentrates*were*tested*to*examine*their*toxicity* towards*undesired*herbs.*The*polyphenols*concentrate* could*be*used*as*bioKpes'cide*in*small*dosages*or*bioK fer'lizer."" ) )

Source:))Published)data)on)the)eďŹƒciency)of)polyphenols)

Waste management for olive mills - Developing tomorrow needs

5

Agenda

- Context - Market Landscape - Investment Analysis - Team on the Ground - Next Steps

6

Waste management for olive mills - Developing tomorrow needs

Goal is to produce high value added olive polyphenols investing on an olive mill waste management unit

Motivation Facts • • • •

.........

New technology Abundant raw material High market demand High environmental benefit

Today

Final stage

Concluded • Planning phase • Revenue Model • Site selection • Team recruitment • Technology use • Permits & patent rights obtained • Initial funding options 7

Waste management for olive mills - Developing tomorrow needs

World Status Greece has 10 times higher production of olive oil than the US and 15% of global production

World Production Italy 25%

Spain 30%

Other 23%

Tu r k e y 7%

Greece 15%

Olive mill waste in Greece Rest of Greece 50% Facts • Greece production: - 2.0 Million Tons Olive Oil - 2.5 Million Tons of waste each year - 750 Tons of waste in the island of Crete only • US production: - 0.2 Million tons Olive Oil

Island of Grete 50%

Waste management for olive mills - Developing tomorrow needs

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Market Status Olive mill waste can be used in the production of power, cosmetics or bio-fertilizers, but is currently unused in Crete

Waste management status for Olive Mills

Electrical power

Cosmetics

Agricultural

• Environmental Pollution & Negative impact at Local communities • 120K> Annual cost for Olive Mills

• Renewable energy, high demand, country policy support • Secured supply sale price for 25 years

• Infant stage of a developing market • Multi-use of phenols in all kind of pharmaceutical and organic products • Minimal Global production, only one company in the world develops polyphenols from Olive waste

• Bio-fertilizer production • High export demand

Medical Final research phase 9

Waste management for olive mills - Developing tomorrow needs

Market Demand Cosmetics and specialty chemicals for agriculture markets are very prominent at an international level with low competition and high barriers to enter

Environment Pollution

High Demand Country Policy

Developing Market Antioxidants

No Competition bio-fertilizer

Waste of Olive Mills

Electrical power

Cosmetics

Agricultural

120K> Annual Cost for Oil Mills

Fixed Sales Price for 25 years

Minimal Global Production only 1 company currently

10K / Kg Export

Medical Final research phase

10

Waste management for olive mills - Developing tomorrow needs

Competitors Few competitors operating worldwide, offering purified polyphenols at prices between 5K-3M per Kg

World Companies

Poly- phenol Producers

• • • • •

Price per Kg to final market

Creagri Inc, (California) a Pfizer spinoff BIO-Botanical Research Inc. Olivus Inc Creagri Inc Johannes Bürger Ysatfabrik GmbH

$10,000 $5,000 $800,000 $50,000 $3 Million Our cost $700 / per Kg

Local Waste management

• Olive producers using olive seed • Olive mills sell olive seed for $45 per Ton

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Waste management for olive mills

Agenda - Context - Market Landscape - Investment Analysis - Team on the Ground - Next Steps

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Waste management for olive mills - Developing tomorrow needs

The capital investment is dedicated to plant equipment and partially subsidized by approved EU funds

ASSETS' CAPITAL' INVESTMENT' ' WORKING' CAPITAL' ' ' ' TOTAL'ASSETS' ' ' ' ' '

2,500,000'$' ' ' '200,000'$' ' ' ' ' 2,700,000'€'

LIABILITIES' 93%' ' ' 7%' ' ' ' ' 100%'

EQUITY' ' EU' SUBSIDIES' ' DEBT' ' ' TOTAL' LIABILITIES'

1,000,000'$' ' '800,000'$' ' ' '900,000'$' ' ' '2,700,000'$'

37%' ' 30%' ' ' 33%' ' ' 100%'

The'interest'rate'for'the'debt'is'assumed'equal'to'12%' Note:&The&assump.ons&&for&the&business&plan&are:&1)&a&20%&tax&rate&on&the&profit&and&a&50%&prepay&in&the&beginning&of&each&year&2)&An&increase&on&the&opera.ng&cost&of&3.0%&annually,&3)&An&increase&on&the&selling&price& of&each&MWh&by&0.3%&annually,&based&on&the&contract&signed&with&Regulatory&Authority&for&Energy&(RAE)&of&Greece.& Source:&ADIVA&HELLAS&&business&plan,&July&2011&

Waste management for olive mills - Developing tomorrow needs

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The capital investment to establish the plant is dedicated to plant equipment and is equal to ~$2.2M Investment$required$on$$ each$bucket$(M$)$ 2.5$ 0.3$

2.2$

Other&

Total&

0.2$

2.0$ 0.4$ 1.5$

0.1$

0.7$

1.0$ 0.6$ 0.5$

0.0$ Equipment&

Materials&

IT&systems&

Studies&

Legal&expenses&

Cost$buckets$ Fence$

Power$Generator$

Filters$

ConstrucCon$plan$

ConstrucCon$insurance$

FloXaCon$unit$

Sheds$&$Buildings$

Electrolytes$

Grant$plan$

Social$Insurance$fee$

BoXling$unit$

Water$Supply$

Security$system$

Pharma$&$Agricultural$studies$

ConnecCon$to$the$Grid$

Cooling$tower$O$Dryer$

Resins$&$membranes$

SoQware$and$IT$system$

Fees$for$the$company$foundaCon$

InstallaCon$

Polyphenols$drying$unit$

TransportaCon$fees$

ProducCon$monitoring$system$

Increase$of$share$capital$

Means$of$transportaCon$

PyrolyCc$material$

CablesOAutomaCon$

Expenses$prior$to$operaCon$

Source:(www.vioparet.gr;(ADIVA(HELLAS(

Waste management for olive mills - Developing tomorrow needs

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Capital expenses to expand the plant either at start on after the 1st year of operation up to $500K 0.5$

0.4$

0.3$

0.0$

0.0$

Installa1on&

Social&Insurance&fee&

0.5$

0.1$

0.1$

0.3$

0.2$

0.1$

0.0$ Power&Generator&

Cooling& tower&8&Dryer&

Pyroly1c&material&

Total&

Cost%buckets%

The$$addi(onal$investment$of$$500K$will$be$dedicated$on$acquiring$ equipment$$to$increase$$the$power$genera(on$capacity$of$the$plant$ !

Note:!The!expanded!plant!could!be!set!form!the!beginning!or!a8er!the!ďŹ rst!year!of!opera;on!

Source:!ADIVA!Hellas!business!plan!

Waste management for olive mills - Developing tomorrow needs

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Operating expenses in 1st full operation year up to ~$1M

OpEx%of%year%2% break/down%(000$)% 1,000%

55.2%

34.5%

7.1%

3.3%

995.6%

162.3% 800%

168.3%

600%

400%

192.0%

372.9%

200%

0% Maintenance(Transporta:on(

G&A(

Salaries(

Packaging(

Marke:ng(

OďŹƒce(Lease( Equipment( insurance(

Total(

Cost(buckets(

Main(opera:ng(expenses(are(the(maintenance,(( transporta:on,(G&A(and(salaries(costs( Source:%ADIVA%HELLAS%%business%plan,%July%2011%

Waste management for olive mills - Developing tomorrow needs

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Revenues projections till 2036 for the main products of the plant: Polyphenols and Energy

Revenues'(M$)' 20'

15'

15'

15'

15'

16'

16'

16'

16'

16'

16'

16'

16'

16'

16'

16'

16'

16'

16'

16'

16'

16'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

5'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10'

10' Polyphenols'

15'

Oil' Energy'

10' 10' 7' 6' 5'

5' 5'

5'

2' 0'

5'

2' 0'

1'

2'

2012' 2013' 2014' 2015' 2016' 2017' 2018' 2019' 2020' 2021' 2022' 2023' 2024' 2025' 2026' 2027' 2028' 2029' 2030' 2031' 2032' 2033' 2034' 2035' 2036'

Polyphenols*are*the*main*source*of*revenue* Note:&The&assump.ons&&for&the&business&plan&is&an&increase&on&the&selling&price&of&each&MWh&by&0.3%&annually,&based&on&the&contract&signed&with&Regulatory&Authority&for&Energy&(RAE)&of&Greece.& Source:&ADIVA&HELLAS&&business&plan,&July&2011&

Waste management for olive mills - Developing tomorrow needs

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Solid business model developed to project the profitability of the investment

Year Production Ravenues Mwh Current 253€/MWh 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

4.563 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957

$1.593.283 $4.887.636 $4.902.299 $4.917.006 $4.931.757 $4.946.552 $4.961.392 $4.976.276 $4.991.205 $5.006.178 $5.021.197 $5.036.260 $5.051.369 $5.066.523 $5.081.723 $5.096.968 $5.112.259 $5.127.596 $5.142.978 $5.158.407 $5.173.883 $5.189.404 $5.204.972 $5.220.587 $5.236.249

Ravenues Revenues Ravenues Total Operating oil 0,5€/Kg Polyphenols Costs 300€/Κg $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542

$0 $1.034.976 $2.069.953 $5.174.881 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763

339.536 € $117.797.711 $3.925.018 $215.275.063

Τόκοι

Depreciation

EBT

Tax

Profit

Payback

Cash Flows

New Invest

Acc. Cash Flows

$0 -$455.400 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-$703.985 $61.732 $2.499.743 $4.610.432 $6.885.048 $10.803.984 $11.306.761 $11.291.288 $11.275.032 $11.257.966 $11.240.066 $11.319.218 $11.345.436 $11.329.428 $11.307.923 $11.285.445 $11.261.965 $11.237.451 $11.211.872 $11.185.194 $11.157.384 $11.128.923 $11.098.742 $11.067.320 $11.034.620 $12.409.577

-$455.400

$237.498.987

$671.370 $1.015.811 $1.046.285 $1.077.674 $1.110.004 $1.143.304 $1.177.603 $1.212.932 $1.249.320 $1.286.799 $1.325.403 $1.365.165 $1.406.120 $1.448.304 $1.491.753 $1.536.505 $1.582.601 $1.630.079 $1.678.981 $1.729.350 $1.781.231 $1.834.668 $1.889.708 $1.946.399 $2.004.791

$206.820 $109.265 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$139.875 $185.415 $185.415 $185.415 $185.415 $185.415 $185.415 $185.415 $185.415 $185.415 $45.540 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$738.760 $4.775.664 $5.904.093 $8.992.340 $14.149.642 $14.131.138 $14.111.678 $14.091.234 $14.069.775 $14.047.269 $14.163.559 $14.184.400 $14.158.554 $14.131.525 $14.103.275 $14.073.768 $14.042.963 $14.010.822 $13.977.303 $13.942.362 $13.905.957 $13.868.041 $13.828.570 $13.787.493 $13.744.763

$517.132 $3.416.841 $4.610.432 $6.885.048 $10.803.984 $11.306.761 $11.291.288 $11.275.032 $11.257.966 $11.240.066 $11.319.218 $11.345.436 $11.329.428 $11.307.923 $11.285.445 $11.261.965 $11.237.451 $11.211.872 $11.185.194 $11.157.384 $11.128.406 $11.098.225 $11.066.803 $11.034.102 $12.374.560

$0 $917.097 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-$703.985 $517.132 $2.499.743 $4.610.432 $6.885.048 $10.803.984 $11.306.761 $11.291.288 $11.275.032 $11.257.966 $11.240.066 $11.319.218 $11.345.436 $11.329.428 $11.307.923 $11.285.445 $11.261.965 $11.237.451 $11.211.872 $11.185.194 $11.157.384 $11.128.923 $11.098.742 $11.067.320 $11.034.620 $12.409.577

$336.997.790 $33.637.369

$316.085

$1.854.150

$301.190.185 $61.616.786 $239.573.399

$917.097

$237.954.387

$1.756.825 $6.086.155 $7.135.794 $10.255.429 $15.445.062 $15.459.857 $15.474.697 $15.489.581 $15.504.510 $15.519.483 $15.534.502 $15.549.565 $15.564.674 $15.579.828 $15.595.028 $15.610.273 $15.625.564 $15.640.901 $15.656.283 $15.671.712 $15.687.188 $15.702.709 $15.718.278 $15.733.892 $15.749.554

$221.628 $1.358.823 $1.293.662 $2.107.293 $3.345.659 $2.824.377 $2.820.390 $2.816.202 $2.811.809 $2.807.203 $2.844.341 $2.838.964 $2.829.126 $2.823.602 $2.817.830 $2.811.803 $2.805.512 $2.798.950 $2.792.109 $2.784.978 $2.777.551 $2.769.817 $2.761.767 $2.753.391 $1.370.203

!

18

Source:(www.vioparet.gr;(ADIVA(HELLAS(

Waste Management for Olive Mills Project

Operating expenses projections till 2036

Opera&ng) Expenses)(M$)) 2.5)

2.0) 1.5) 1.6) 1.5) 1.4) 1.4) 1.4) 1.3) 1.2) 1.3) 1.2) 1.1) 1.2) 1.1) 1.1) 1.0) 1.0)

1.5)

1.0)

1.6)

1.7)

1.7)

1.8)

1.8)

1.9)

1.9)

2.0)

0.7) 0.5)

0.0)

0.0) 2012)2013)2014)2015)2016)2017)2018)2019)2020)2021)2022)2023)2024)2025)2026)2027)2028)2029)2030)2031)2032)2033)2034)2035)2036)2037)

Note:)The)assump&ons))for)the)business)plan)are:)1))a)20%)tax)rate)on)the)proďŹ t)and)a)50%)prepay)in)the)beginning)of)each)year)2))An)increase)on)the)opera&ng)cost)of)3.0%)annually) Source:)ADIVA)HELLAS))business)plan,)July)2011)

Waste management for olive mills - Developing tomorrow needs

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The plant is designed based on proprietary technology developed in Germany by Dr. Niebelsch端tz

Proprietary*technology*is*revolu3onizing*the*olive*mill*waste*water*treatment*for*the*produc3on*of*polyphenols* * * * * * * * * * * German*patents*are*registered*under*the*numbers:* * 19828054*C1** * 10*2007*041*806!

!

Note:!The!patents!could!be!found!in!!h4p://www.argus:umwelt.de/Research.html!

Source:!ADIVA!HELLAS!!business!plan,!July!2011!

Waste management for olive mills - Developing tomorrow needs

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The plant will be constructed on a 750m2 area in BIOPA Rethymnon Area%map%

Business%zone%of%Rethymno%map%

A"lease"is"already"signed"for"an"area"of"750m2"at"â&#x201A;Ź"415/month,"while" an"addi<onal"such"area"is"available"upon"request"at"a"lower"price" Source:(www.vioparet.gr;(ADIVA(HELLAS(

Waste management for olive mills - Developing tomorrow needs

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Production: Simple batch process to produce the high value added product of olive polyphenols & power

Olives' treatment' waste'

Filtra/on' through'fabric'

Ac/vated' carbon' ďŹ ltra/on'

MicroďŹ ltra/on'

Hydrogen'

Electrolysis'

Olive' polyphenols' concentrate'

Aqueous' waste' Index' Process'

Power'

Major'product' Secondary'product'

Source:(ADIVA(HELLAS((business(plan,(July(2011(

Waste management for olive mills - Developing tomorrow needs

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Secondary process in place to reach the final product

Final&product&for& agricultural&uses&&

Olive& polyphenols& concentrate&

Spray&& drying&

Olive& polyphenols& powder&

Index& Process& Major&product& Final&product&

Further&processing&required&if&final&use&is&to&be&an&ingredient&in& pharmaceuAcals,&according&to&set&specificaAons&from&final&customer& Source:(ADIVA(HELLAS((business(plan,(July(2011(

Waste management for olive mills - Developing tomorrow needs

23

Lean organization structure serves the flexibility of operations

Plant&director&

Engineers&(4)&

Lab&technician&(4)&

Admin&StaďŹ&#x20AC;&(1)&

Driver&(1)&

!

Note:!The!plant!will!be!func3onal!for!24!hours!!and!there!will!be!three!shi9s!per!day!of!the!engineers!and!the!lab!technicians!

Source:!ADIVA!HELLAS!!business!plan,!July!2011!

Waste management for olive mills - Developing tomorrow needs

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Agenda

- Context - Market Landscape - Investment Analysis - Team on the Ground - Next Step 25

Waste management for olive mills - Developing tomorrow needs

Team Management Team of Phase A

Michael Verykakis

Dr. Horst Niebelschütz

Dr. Fenia Markydaki

Harris Kalofonos

!

Executive Director Avida Hellas Renewable Energy (Crete)

Professor of Chemistry Berlin University (Germany)

Senior Associate, Global Strategic Planning at Sandoz (Germany)

Development Officer (USA)

• Founding member of Project • Conducted professional various renewable energy projects in Germany for 20 years with companies like: Royal Dutch Shell, Deutsche Bank, Deutsch Bahn • Extensive development management experience in solar parks and waste management units in Greece for 12 years • Graduate of Cologne University, Germany

• Expert in renewable energy and waste management project • Patent owner of high press hydro energy extraction • Worked with German Government and Companies such as: Schering AG, Varta AG, Biermann AG, Behala AG, BMW AG, Metro

• Worked for Boston Consulting Group across the EU focusing on the Pharma industry & strategic planning • Prior to BCG, worked as a consultant for Sepracor Inc. (currently Sunovion) in the US, & at Bayer AG and Fraunhofer Institute in Germany • Graduated Tufts University, Boston MA

• Responsible for Investor Relations of the Project.

• Works as a consultant for the International Olympic Academy and a Fundraising office of USAW • Worked with companies such as Asics and Liberty Mutual

More than 30 years in business

More than 35 years in consulting and business

More than 9 years in research and business

More than 10 years in business

Waste management for olive mills - Developing tomorrow needs

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Agenda

- Context - Market Landscape - Investment Analysis - Team on the Ground - Next Steps

27

Waste management for olive mills - Developing tomorrow needs

Licensing process can be expedited by Invest in Greece

Licence&type& 1.

Permit&of&establishment&with& environmental&memo&for& low&nuisance&

2.

Construc;on&permit&

3.

Contracts&with&the&raw& material&(olive&mill&waste)& suppliers&

4. & !

Energy&produc;on&permit&

Required&;me&to&issue& 1E&2&months& & & & 1&month& & & 2&weeks& & & & 2&weeks&aGer&contracts&with& suppliers&&are&signed&!

Responsible&desk& Ministry&of&Environment& & & & Construc;on&Agency&of& Rethymnon&(Poleodomia)& & Director&of&the&plant& & & & Regulatory&Authority&for&Energy& (RAE)& &

For&total&value&of&investment&&just&above&$3M,&the&licensing&process& could&be&processed&on&fast&track&by&Invest&in&Greece&Agency& !

Note:!www.inves-ngreece.gov.gr,!www.rae.gr,!www.poleodomia.gov.gr!

Source:!ADIVA!HELLAS!!business!plan,!July!2011!

Waste management for olive mills - Developing tomorrow needs

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Olive Mill Waste Management Project

29

Waste management for olive mills - Developing tomorrow needs