Cellulosic Ethanol Progress in Advancing Cellulosic Biofuels The

Cellulosic Ethanol Progress in Advancing Cellulosic Biofuels: The Iogen Story Brian Foody Iogen Corporation ABLC Washington D. C. April 22, 2014

Overview • Who is Iogen • Path to Commercialization • Changing the Game • Playing Capital Light 2

Who is Iogen? Making Cellulosic Ethanol Since 2004 2007 • Over 30 years development, with $500 million invested • Over 300 patents issued or pending • Strong focus on technology validation and commercial implementation • History with blue chip partners 2005 2009 Enzyme Business: Historical relationships include: 2010 2011 3

Who is Iogen? A great team One of the world’s largest and most experienced in cellulosic biofuels • 9 years developing, designing, de-bugging and scaling-up cellulosic ethanol technology in our integrated demo plant • Achieved steady, reliable production operations - integrating biotech, process tech and engineering • Projects developed in Canada, US, Germany and Brazil • Extensive feedstock supply chain experience, with contracts totaling over 2. 8 million MT/yr 4

Who is Iogen? Seen a lot: Design Cycle Strategy Extensive Pilot and Demonstration Plant Programs • 1984: First pilot plant (wood, 1 TPD input) • 1992: Second pilot plant (with Amoco, 1 TPD input) • 2001: Demonstration plant (straw to sugars, ~ 20 TPD) • 2004: Upgrades to produce ethanol (straw to ethanol) • 2007: R 6: Upgrades in co-product processing • 2009: R 7: Simplified design • 2011: R 8: Upgraded pretreatment, hydrolysis • 2013: Adapted operation on bagasse Evolution of Designs with Extensive Data and Operation • Cost/process models linked with performance data • Many demo scale cycles of iteration including: design > operation > redesign • Many design issues identified and resolved, patents filed Cycle of Process Design Improvement R 1 to R 8

Addressing the demonstration challenge � • 9 years of problem solving and improvement • Robust, high yield process with attractive economics • Extensive validation and testing through 24/7 integrated operations Iogen’s $100 million demo plant in Ottawa, Canada • Integration of designs with operating experience • Recent focus: sugar cane bagasse • Initial lab & pilot screening • 6 months operation in the plant • Adapted designs from observations of differences between bagasse and 9 year baseline experience

Overview • Who is Iogen • Path to Commercialization • Changing the Game • Playing Capital Light 7

We’re implementing CE at commercial scale in Brazilian Sugar Mills Raízen Costa Pinto Mill, Piracicaba, Brazil’s largest cane processor, Iogen partner • • 24 sugar/ethanol mills, ~ 65 m tonnes/yr. crushing ~ $30 billion sales ~ 40, 000 employees The Costa Pinto 2 G Ethanol Project – Start-up Q 4 2014 • • • US ~$100 million 40 m litres/yr. 2 G ethanol Bagasse as feedstock Residue to boiler Once operational, Raizen plans for 7 more plants 8

Why is Brazil interested in Cellulosic Ethanol? • Increases yield per acre by 50% or more • Takes the pressure off opening expensive new cane plantations • Uses materials that now go to waste or are burned • Enables mills to “extend” their operating season 9

Co-location with existing sugar cane mills creating synergies 10

Abundant and relatively cheap feedstock • Bagasse is available at low cost, prepared for use, in steady supply • Access to sugarcane trash currently left on the field 11

Significant cost savings • Capex savings by using existing equipment and other site infrastructure • Opex shared across an existing site 12

Focus on 2 G scale-up • Allows us to focus on scale-up and de-risking of the 2 G process • Pave the way for roll-out of larger scale plants with much less risk • Developing know-how on the integration of 2 G with 1 G 13

The Costa Pinto Cellulosic Ethanol Project • Operational by the end of 2014 14

Overview • Who is Iogen • Path to Commercialization • Changing the Game • Playing Capital Light 15

What does the game look like? • Rough landscape: • Product markets: driven by the RFS / commodity prices • Yields: 75 - 95 gal/MT • CAPEX: $6 - $10/gal/yr • Typical strategic choices • Drive improvements in the yield / cost curve • • Simplify to make it cheap Complicate to add yield / product revenue • Source low cost feedstock • Tipping fee for MSW vs “pay to collect” ag residues, etc. • Generate large by-product revenues • Get financial support on capital 16

What does the game look like? • Rough landscape: • Product markets: driven by the RFS / commodity prices • Yields: 75 - 95 gal/MT • CAPEX: $6 - $10/gal/yr • How good, really, are our yields? • Biotech processes can drive very high yields, but (at least conventionally) on only 50% - 55% of feedstock • 45% - 50% of the feedstock: • • Doesn’t make it to market; and Doesn’t capture renewable fuel premiums • Can all our feedstock sell as fuel? • Potential for twice our current yields and half our current unit capital costs 17

Renewable Hydrogen Content (“RHC”) as a drop-in biofuel Bioconversion Residue Process steps • “Renewable biogas” is made by anaerobic digestion and/or gasification/methanation of bioconversion residues Renewable Biogas Renewable H 2 Content in Gasoline or Diesel RINs and LCFS credits • “Renewable Hydrogen” is made by using biogas to displace non-renewable natural gas that is already used to make hydrogen in steam methane reformers. • “Renewable Hydrogen Content” (RHC) is made by deploying the renewable hydrogen in refinery units where hydrogen is already incorporated into the fossil fuel backbone and the final product is transportation fuel. • Iogen has established a proprietary position in this approach: • • U. S. Patent No 8, 658, 026 U. S. Patent Application No 13/722, 522 Notice of Allowance 18

Implementation in Conventional Oil Refineries Key “drop-in” features • The process uses existing refinery equipment and involves no process or capital changes • • H 2 Source H 2 Sink Refiners’ assets are not made obsolete by RHC cellulosic biofuel production Potential for RHC fuels is on the order of 7 billion gallons (ethanol equiv)/yr • about 14 X the current capacity for CNG/LNG 19

What does the game look like? • The old landscape: • Product markets: driven by the RFS / commodity prices • Yields: 75 - 95 gal/MT • CAPEX: $6 - $10/gal/yr • The new landscape: • Product markets: driven by the RFS / commodity prices • Yields: >150 gal/MT • CAPEX: <$5. 00/gal/yr 20

Overview • Who is Iogen • Path to Commercialization • Changing the Game • Playing Capital Light 21

The Deployment Challenge – Played Capital Light What does it take to roll-out cellulosic biofuel? • Significant amounts of (other people’s) money Can you catalyze a roll-out as a strict licensor? • Project development for cellulosic biofuel development offers some unique challenges – • • Sophisticated and novel feedstock acquisition and logistics challenges Sophisticated and novel technology, both to scale-up and sell to investors Iogen’s take on it: 1. We intend to be capital light – but more than a licensor – Making projects happen; – Integrating “best” technology – Making projects succeed 2. It’s critical to be open to effective alliances and collaborations 22

We’re active developing several sites in the U. S. • Developing a large cellulosic biofuel facility in KS area • Feedstock: wheat straw • Products: cellulosic ethanol, RHC biofuel • Front end development under way • Potential for substantial benefit to the region EXAMPLE ONLY • Increased farm income • Local economic activity 23

Thank You 24