World Waste to Energy City Summit – May 2015

Vincent ChornetPresident and CEO

Enerkem biorefineries:setting a new global standard in biofuels, chemicals and waste management

We’re building the bioeconomy. | © Enerkem, 2015

Enerkem at a glance

• MSW-based biofuels and renewable chemicals producer

• World’s first full-scale commercial MSW biorefinery beginning operations in Edmonton, Alberta

• 300 million invested to date to move from R&D to commercial stage

• 200 employees

• New alternative to landfillingand incineration

ENERKEM ALBERTA BIOFUELS

Capacity: 38 million litres per year(i.e. 1 X standard Enerkem system)

Feedstock: Municipal solid waste (household garbage from City of Edmonton)100,000 dry tonnes per year

Products: Biomethanol, cellulosic ethanol

World’s first commercial MSW-to-biofuels and chemicals facility inaugurated June 4th 2014

We’re building the bioeconomy. | © Enerkem, 2015

Laboratory Pilot SyngasDemo

MethanolDemo

EthanolDemo

Full-scale commercialproduction

SHERBROOKE

WESTBURY FACILITYMODULAR COMMERCIAL BIOREFINERIES

UNIVERSITY OF SHERBROOKE

PILOT

Not skipping steps: an essential

x 2 x 2

x 3

We’re building the bioeconomy. | © Enerkem, 2015

Cost-competitive and sustainable ACT solution

Municipality:

• Supplies 100,000-400,000 tons of MSW per year(long-term contract)

• Pays tipping fee – attractive compared to status quo

• Suggests sites

Enerkem:

• Invests approx. $100M to build, own and operate the biorefinery

• Converts RDF into 38 to 152 MLPY of biofuels/biochemicals

• Works with the city to optimize MSW sorting into commodities and for site selection

• Manages business risks incl. sale of final product

• Creates high-quality jobs:

• 600 direct/indirect during construction

• 150 direct/indirect (permanent) during operation(for 1 X standard Enerkem system of 10 MGY)

• Generates $C65M/year in net economic benefits in the region(for 1 X standard Enerkem system of 10 MGY)

38-152 MLPY

We’re building the bioeconomy. | © Enerkem, 2015

Comparison with incineration

Enerkem Incineration

Where does the carbon go?Biofuels and chemicals (replacing oil)

Smokestack emits CO2

FinalityChemical recycling of carbon into alcohols

Waste elimination

Technology

Partial oxidation Reforming Catalytic conversion

Mass combustion

CAPEX for equivalentplant EBITDA*

$225M $425M

Primary revenue sourceSale of liquid fuels and chemicals

Sale of waste disposal service and electricity

Break-even tipping fee

Power generation: ½ the tipping fee

Fuels and chemicals: less than ½ the tipping fee

Greater than $80/mt

* For processing 500,000 mt/year unsorted MSW

City of Edmonton’s Integrated Waste Management Centre

Recycled 20%

Composted 40%

Biofuels 30%

Landfill 10%

Waste diversion = 90%

We’re building the bioeconomy. | © Enerkem, 2015

Large market potential

Sources: World Bank, 2012; Statista 2015; MarketsandMarkets

BIOFUELS: US$ 98 BILLION REN. CHEMICALS: US$ 57 BILLION

We’re building the bioeconomy. | © Enerkem, 2015

Business model

• Moving beyond BOO model licensing and equipment supply

• Modular manufacturing approach enabling global expansion

• 43 pre-fabricated modules for standard facility (e.g. Edmonton):

• 15 process-driven modules

• 28 structural modules

We’re building the bioeconomy. | © Enerkem, 2015

Target growth areas for global partnerships

• Strategic partnerships with leading industrial groups

• Selection based on market attractiveness:

• public policies

• tipping fees

• proximity to petrochemical infrastructure

• population

Thank you

For more information:

www.enerkem.com

Vincent ChornetPresident and CEO

vchornet@enerkem.com