Montana Microbial Products A Research and Development Company

Montana Microbial Products • A Research and Development Company commercializing microbial products and technology • Products – Enzymes for fuel alcohol production – Integrated cellulose and starch process – Barley protein concentrate for fish feed – Bacteria to control plant diseases

Fuel Alcohol Industry • Developed to address high prices and help with energy independence • Renewable Fuel Standard to create mandate and market for biofuels • Current US industry based on corn • Need for development of fuels from sources other than corn. • DOE focus on cellulose (cellulosic ethanol)

Cellulosic Ethanol Renewable Fuel Standards Schedule 18, 000 Cellulosic Ethanol (Million Gallons) 16, 000 14, 000 12, 000 10, 500 10, 000 7, 000 8, 000 6, 000 3, 000 4, 000 2, 000 1, 000 0 2013 2015 2018 2020 2022

Cellulosic Ethanol Sources

Cellulosic Ethanol Production Thermochemical • • CHP – generate heat and power for sale on grid, syn gas becomes byproduct or co-product High up-front capital costs – access to grid Biochemical (Enzyme Based Focus on low-lignin agricultural waste feedstocks cornstover, wheat straw, sugarcane bigasse • Lower up-front capital costs •

DOE Biofuels Policy • High Impact Feedstocks: 100 million tonnes • Large Scale Biorefineries • No starch • 25 years and no commercial plants

Cellulosic Ethanol Economics • Low density – expensive to haul –$65/ton FOB Plant = $0. 76/gal etoh • Very absorbent – dilute slurries, high capital costs –$4. 50/gal plant capacity = Debt repayment $0. 53/gal • Expensive processing – enzyme and energy cost –Enzymes =$0. 36 to $0. 50 gal etoh produced –Distillation 3 -4 X conventional corn plant

Regional Approaches • Fit Project to Local Resources – Use all available resources within reasonable distance, i. e. starch and cellulose sources • Reduce Costs – Reduce energy costs, i. e. Process changes, lignin – Feedstock collected as a result of some other activity, i. e. wood waste, food processing, etc • Create valuable co-products – Barley protein, chemicals, energy products

Straw to Ethanol Montana Resources • Montana: Barley Straw Fairfield Bench: 7 — 10 million gallons • Integrate with feed barley, off spec malt barley, livestock feeding: 15— 20 million gallons

Add Value Food and Fuel Barley Protein Concentrate Aquaculture Feeds

Creating Value § One ton of barley will produce 560 lbs of BPC and 83 gal of Ethanol § BPC will sell for $700 -$800/ton (fishmeal sells for approximately $900/ton) § Et. OH will sell at prevailing market prices § One ton of barley worth $278, § Conventional ethanol ($153 and DDG $125

Aquaculture § Aquaculture is the fastest growing sector of agriculture § Fishmeal is the main diet constituent of farmed trout, salmon, shrimp and other hatchery fish § It takes approximately 4. 5 units of wild fish per unit of fishmeal § 4, 963, 000 m. tons fishmeal consumed annually § 46% aquaculture, 26% poultry, 24% pigs § Major research effort to develop plant based protein sources to replace fishmeal

Conclusion • Biofuels from local biomass is feasible – but • Requires flexibility (think outside the box) • Use all available resources • Is capital intensive

Thank You Contact: Cliff Bradley, Bob Kearns MMP, 109 S. Parkmont, Butte 406 494 3390 cbradley@montana. com kearns@3 rivers. net