Production of High Value Chemicals

From Low Value Biodegradable Materials

21 March 2017

An Introduction to Earth Energy Renewables

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Converting low value feedstocks to high value products

FEEDSTOCK PRODUCTSEER CONVERSION

Modified Anaerobic Digestion

Short/Medium-Chain Fatty

Acids

• Acetic acid

• Propionic acid

• Butyric acid

• Valeric acid (Pentanoic)

• Caproic acid (Hexanoic)

• Heptanoic acid

• Caprylic acid (Octanoic)

• Ammonium sulfate

• Phosphate fertilizers

• Potable water

Org

anic

s in

W

aste

Wat

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ran

ge

Pee

lsC

orn

Mill

Still

age

Foo

d W

aste

Bak

ery

Res

idu

als

Ca Salts Esters

Alcohols Aldehydes

Di-acids Fuels

A novel, simple, low cost conversion process

Recycle of short-chain fatty acids for elongation

Feedstock Preparation

Water

Excess Potable Water

PurifiedFatty Acids

Ammonia andPhosphate

Anaerobic Digestion

Clarification Concentration Extraction Fractionation

Digestate

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Innovative integration of mature, well-understood technologies

Process Advantages: • Dry, wet or liquid feedstocks• Thermodynamically robust non-sterile fermentation• Removes nitrates, nitrites, phosphates

Key markets for short/medium-chain fatty acids

Propionic Acid

Butyric Acid

Valeric Acid

Caproic Acid

Heptanoic Acid

Caprylic Acid

Bakery PreservativeFeed Mold Inhibitor

Flavor/FragranceAnimal Health and Nutrition

Thermally Stable Synthetic Lubricants (Polyolesters)

New & High PotentialBiocidal, Antifungal

Thermally Stable LubricantsPolyolesters

Thermally Stable LubricantsEnergy Drinks

UnsaturatedOrganic Acids

Small/Medium- Chain

Organic Acids

Potential addressable market is substantially larger

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Small- & medium-

chain organic acid salts

Esters

Ketones

Biological Conversion

Chemical Conversion

Organic matter

Triglycerides

Ca/Na Salts

Aldehydes

Amides

Primary Alcohols

Secondary Alcohols

Diols

Amines

Nitriles

Dicarboxylic Acids

Basis for a new bio-chemical platform

Fuels: Alcohols,

Hydrocarbons

Fatty Acid Conventional Raw Materials

Raw Materials

Cost ($/ton)

Conventional Cash Mfg Cost

($/ton)

Market Price ($/ton)

MajorManufacturers

C2 Acetic Methanol, CO 275 400 500-800 Celanese, BP

C3 Propionic Ethylene, CO 675 1,000 1,300-3,500 BASF

C4 Butyric Propylene, CO 675 1,500 1,600-5,000 Eastman, OXEA

C5 Valeric Butylene, CO 925 2,000 4,000-7,200 OXEA

C6 CaproicCoconut, Palm

Kernel Oil1,000 2,000 3,000-5,200 P&G Chemicals

C7 Heptanoic Hexylene, CO 1,500 2,500 3,400-6,000 OXEA

C8 CaprylicCoconut, Palm

Kernel Oil1,000 2,000 2,600-3,800 P&G Chemicals

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Significant cost advantage relative to conventional processes

Manufacturing Costs for C2 – C8 Organic Acids by Conventional Processes

EER cash manufacturing cost (w/o depreciation) is on the order of $500/tonfractionated fatty acids at scale.

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Economic structure of business opportunity

• Modest capital cost

• Low operating costs

• Low feedstock costs

• High organic acid yields

• Large addressable markets

• High org acid market prices

Favorable Economic Structure

ROI > 40% at 30 T/D

ROI > 75% at 300 T/D

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Development status and commercialization plan

• Successfully demonstrated process concept in semi-continuous pilot plant

• Recently completed $ 4MM investment round

- Led by global marketer of animal nutrition and health products, food additives, dietary and personal care products

- Executed off-take with lead investor

• Constructing a continuous, fully-integrated demo plant in Bryan

- Operate for ~1 yr to develop basis-of-design for first commercial plant

• First commercial plant (30 T/D) in Bryan, TX

• Second commercial plant in Cedar Rapids, IA

• Seeking feedstock partners, investors for commercial development in 2018

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Commercial deployment strategy

First commercial facility–30 TPD

30+ TPD

100-500 TPD

2018/2019

2020 – 2022

2022+

Chemicals & Intermediates

Animal Nutrition, Feed & Food Preservatives

Synthetic Lubricants

Fuels

Scale up production

from 30 TPD to 500 TPD

From specialty to commodity

markets

Strong and highly experienced leadership team

David Austgen, Chief Executive Officer – An accomplished, entrepreneurial executive with 28 years of energy and chemical industry experience with Dow, Shell Oil Company, Luca Technologies, Proterro Inc. and ADI Analytics. He has had global leadership responsibility for business development, innovative technology development and commercialization in a broad range of projects. As JV Manager for Shell Alternative Energy & Biofuels, he oversaw more than $300 million in investments in Iogen Energy, Codexis, Virent Energy Systems and several other companies. He has held senior management positions throughout his career and has a consistent record of leading and managing diverse, complex teams and projects to successful outcomes. He holds a B.S. in chemical engineering from Notre Dame, a PhD in Chemical Engineering from the University of Texas, and an M.B.A also from the University of Texas.

Cesar B. Granda, Chief Technology Officer – Dr. Cesar Granda obtained his B.S and his Ph.D. in chemical engineering from Texas A&M University in 2004. His research has focused on the biotechnology and waste utilization areas. As such, together with Dr. Mark Holtzapple, he is the main inventor of the Earth Energy Renewables technology for converting organic material into carboxylic acids. Dr. Granda served as the Chief Technology Officer of Terrabon before joining Earth Energy Renewables. Dr. Granda has authored and co-authored dozens of technical papers and book chapters and is the investor of many patents and patent applications. Dr. Granda is a senior member of the American Institute of Chemical Engineers and the Omega Chi Epsilon Chemical Engineering Honor Society.

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John Wooley, Founder; Business Development – With 35 years of business experience, John has founded and managed a diverse group of companies and developments, both public and private. Responsibilities included the direction of over 1,000 employees, $400 Million in revenue, 9 years of NASDAQ public reporting, complex logistics and real estate and intellectual property management in all 50 states of the U.S., China and 18 other countries. As a manager and executive officer of Earth Energy Renewables, for the past ten years, John has focused on the development of alternative energy waste conversion technologies. He was selected as an Ernst & Young Entrepreneur of the Year in 1995. John served as Treasurer for Ann Richards’s first statewide election campaign for State Treasurer, served on the board of Huston-Tillotson College and chaired the Central Texas fundraising drive for the United Negro College Fund. John has passed the CPA and Bar exams and received a BBA and Doctorate of Jurisprudence from the University of Texas.

Jeff Wooley, Founder, Legal, and Corporate Administration: Jeff has over 35 years of legal training and experience practicing corporate, real estate, banking, securities, franchise and intellectual property areas for both private and NASDAQ listed businesses. With over 20 years of in-house general counsel experience, Jeff has overseen a wide variety of corporate and real estate transactions, private placements, public offerings, risk management issues and state and federal filings and compliance matters. Jeff has been a member of the Texas Bar Association for over 35 years and received a BA from Rice University and a Doctorate of Jurisprudence from the University of Texas.

Don Short – Mr. Short spent 31 years as an international executive for The Coca-Cola Company. He held a variety of positions, including VP of Coca-Cola USA, SVP of Coca-Cola Japan, CEO Coca-Cola India, Group President Africa & The Middle East, CEO Minute Maid, and founder of the Beverage Institute for Health & Wellness. After retirement from Coke, Mr. Short has developed and launched several brands in the beverage and supplements categories. He is an active board member for several start-ups, as well as non-profits

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Jubo Zhang, Chief Chemist – Dr. Jubo Zhang obtained B.S. from Beijing University in China and Ph.D. in Organometallic Chemistry from North Carolina State University (Raleigh, NC) in 2005. He joined Texas A&M University to perform postdoctoral research on catalysis both in the Department of Chemistry (2005-2007) and in the Department of Chemical Engineering (2007-2008). His experience and expertise have been on catalyst development, chemical synthesis, lab research reactor design and testing, analytical instruments and methods, and gasoline/jet-fuel/diesel specifications and ASTM testing. He has published seven original research papers and coauthored several patents. He joined Professor Holtzapple group (2008) and was part of the Terrabon team since 2010 aiding in the development of the technology for upgrading mixed ketones and alcohols to drop-in fuels such as gasoline, jet fuel and diesel. He has also been involved in downstream process scale-up in pilot and demonstration plants, and developed chemical process engineering and problem-solving skills and knowledge. He will continue the efforts to commercialize EER technology to convert biomass materials to chemicals and fuels.

Experienced and accomplished advisors and scientists

Graeme lain Brown – Former Joint Chief Executive Officer Executive Director of Asian Plantations Ltd, APL on the AIM of the London Stock Exchange. Graeme Brown cofounded the Company and was primarily responsible for operations before exiting this investment via the sale to Felda Global Ventures Holdings (FGV) in 2014 . Prior to this he worked for eight years at KeresaPlantations where he remains the managing director over which time he planted and managed a 9000 hectare palm oil plantation. He is a specialist in plantation planting palm species and plantation operations with over 15 years experience in the industry. He also founded Keresa Mills Sdn Bhd which was a pioneer in the implementation of advanced vertical sterilizer milling technology for FFB processing. He graduated from Otago University in New Zealand.

Eric Appelman obtained his MSc in Chemical Engineering from Twente University (Netherlands) in 1987, and then started to work with Unilever in the processing and use of edible oils and fats. He moved to Unilever's subsidiary Unichema (later ICI), which specialized in natural fatty acids and derivatives, and held a number of technical sales and business development roles in surfactants, lubricants, paper chemicals, adhesives, coatings and polymer additives. Later he worked as a technical director for the Marine & Protective Coatings business of Sigma Kalon. In 2008, Eric became EVP at Swedish chemicals group Perstorp where he was accountable for Innovation and Strategy. In that role he was exposed to industries like animal feed, synthetic lubricants and coatings and resins. Today Eric works with companies that seek to build a strategy-driven innovation portfolios and those that seek to commercialize new chemicals technologies. He holds a number of non-executive and advisory board positions.

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1. Novel but simple, low-cost process for converting wastes and residues to

high value chemicals

2. Capable of utilizing any biodegradable feedstock

3. Substantial existing market for organic acids with growth potential

4. Total addressable markets for derivatives is orders of magnitude larger

5. Funding raised for continuous, fully integrated demo unit

• Process concept proven in semi-continuous pilot unit

6. Seeking feedstock partners and investors for commercial development

• Bryan, TX and Cedar Rapids, IA

7. Highly experienced Management Team

Summary Messages

Sustainable high value chemicals from low value bio-degradable materials

“Simplicity is the ultimate sophistication”

Leonardo Da Vinci