Producing Commercial Liquid Fuels

from Cellulosic Biomass

Western Region Forest Resources Association (FRA) Fall Meeting September 2012

Ensyn’s Renewable Fuel from Cellulosic Biomass

Markets

Technology

Economics

Strategic Relationships

What we do

Roll-out

Produce a liquid petroleum replacement from cellulosic non-food biomass - Renewable Fuel Oil or “RFO”

Powerful unit economics - cash cost of $45 BOE & capital light

Commercially proven RTP technology with over 30M gallons of RFO produced - UOP/Honeywell performance guarantee

Targeting large global petroleum markets – leverages existing fuel oil and refinery infrastructure

Strong Strategic Relationships – UOP Honeywell (Envergent), Chevron & Biomass Owners

Significant capacity expansion in progress

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RTP™ History & Accomplishments

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1984: Foundation

1989: Commercial

production, fuels and chemicals for

food sector & $20+ MM Liquidity

Event

1990-1998: Scale-up, fuels and chemicals for food

sector

1998-2005: Development & sale of

petroleum application for US$100 MM

2006-Present: Focus on renewable fuels Strategic partnerships

Project rollout Chemicals upside

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2 3

4

From Cellulosic Biomass to a Barrel of Oil

Engine Fuel (for power)

Heating Oil RFS2 Approval in

Process

Refinery

Feedstock (transportation fuel)

RFS2 Approved

Stand-Alone Upgrading

(transportation fuel)

RFS2 Approved

Biomass Feedstock RTP Process Petroleum

Replacement Fuel Broad and Deep

Addressable Markets

The RTP Edge

Non-catalytic process maximizes carbon conversion from solid biomass to liquid fuels – and generates high liquid yields

Gas and Char co-products used as source of energy to run the facility

Maximizes the conversion of carbon in solid biomass to liquid carbon (in less than a second)

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Natural Progression to Transportation Fuels

Power generation Heating Oil Refinery Feedstock (transportation fuels)

Standalone upgrading (transportation fuels)

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Natural Evolution of the Market Applications for RFO

A consequence of: • Rapid RFO Technology Development

• RIN approval / EPA

• Strategic/Industry interest

• Massive market potential

• Strong RFO unit economics

20+ years of combustion experience in Wisconsin – over 15 million gallons combusted for heat

Multiple recent commercial RFO demonstrations in different boilers - Hosted at Ensyn’s partners & customers

RFO can be co-fired or used alone in conventional commercial and industrial boilers

RFO combustion emissions compare favorably with fossil fuel

• SOx Reduction: > 99% • NOx Reduction: > 36% • CO Reduction: > 72%

RFO as Heating Oil – Enormous Project Opportunities

Heating – Canadian Iron Ore

Pelletizing Mill

Iron Ore Mill - Boiler Ops

Ran up to 22 GJ/hr

Fired one burner exclusively on

RFO replacing HFO

Application was ideal for RFO

RFO Flame

Iron Ore

Pelletizing

Furnace

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RFO in Refineries: Drop-In Transportation Fuel

RFO Refinery Processing Transportation Fuel

Utilizes existing refinery capital equipment and infrastructure

(fully fungible hydrocarbon)

Minimum of 70 gallons per Ton of wood biomass in pilot plant trials

(80 gallons per tonne)

More than 100 gallons per Ton demonstrated (110+ gallons per tonne)

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Ensyn’s Standard RFO Production Facility

Yield, availability, product quality consistent with historical production

Scale of reference facility minimizes the delivered cost of biomass

Standard 400 tpd design (maximizes economies of scale while minimizing biomass price risk)

400 tonnes per day of dry

biomass

~850 barrels per day, BOE = 23 million gallons per

year of RFO

Capital costs of $60-$100 million, depending on existing infrastructure

Modular, Repeatable Facility

Input 400 tpd biomass

Output

850 BOE/day

(23 MM Gallons/year of RFO)

Capital Cost $60 - $100 mm

Cash Operating

Cost

$45 / Barrel of Oil Equivalent (BOE)

Construction Period

18-24 months

Facility Profile

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Key Strategic Relationships with Ensyn

Key Strategic Relationships

Shareholders

Since 1996, Ensyn has returned 3x the amount it has

raised in equity funding

Implementation Plan – Strategic Partners

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Ensyn’s Core Competency

Strategic Partners

Business Model

+ +

Fiber +

Technology +

Offtake

Build-Own-Operate

Market leadership with extraordinary long-term returns

RFS2 supports market for biofuels to 2022

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0

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15

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25

30

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2008 2010 2012 2014 2016 2018 2020 2022

(bill

ion

ga

llon

s)

Conventional Biofuel Cellulosic Any Advanced Biodiesel

16 billion gallons per year of cellulosic

biofuels

RFS2 Mandated Volumes to 2022 by Renewable Fuel Type

3.9 3.8 3.7

3.0 2.8

2.5

1.9

1.6 1.4 1.4

$0

$2

$4

$6

$8

$10

$12

$14

0

1

2

3

4

$B

n

Siz

e o

f m

andate

(bill

ions)

Renewable Advanced Cellulosic Value ($Bn)

Top 10 Refiner Obligations under RFS2

US refiners’ obligation to use renewable liquid fuels

Broad bi-partisan support in the U.S. Congress

Not a subsidy

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Projects with Strategic Partners

Massive Heating Oil Markets and RINs

Commercially Proven Tech Transportation Fuels and

RINs

Ensyn RFO: Best-in-Class Commercial Option for Liquid Fuels from Cellulosics