Environmental And Energy Study Institute

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1 Environmental And Energy Study Institute Congressional Briefing September 22, 2006, Washington, D.C. By Maurice Hladik, Director of Marketing Iogen Corporation Ottawa, Canada

2 Who is Iogen? Headquartered in Ottawa, Canada, Iogen Corporation is an industrial biotechnology company specializing in cellulose-based enzyme technology Iogen operates the world s only demonstration cellulose ethanol facility Production of cellulose ethanol commenced in April

3 Strategic Partnerships 3

4 Iogen s cellulose ethanol demonstration facility 4

5 Iogen s cellulose ethanol process 5

6 Demonstration scale cellulose ethanol plant 6

7 Demonstration scale cellulose ethanol plant 7

8 Elements of commercialization include: Building stakeholder alliances April Cellulose ethanol launch 8

9 Elements of a commercial plant rollout include: Understanding all site evaluation criteria Assess commercial/country risk: Feedstocks Type, availability, cost, ease of collection Government Policy Tax situation, fuel mandates, financial incentives Infrastructure Issues Water availability/cost, road network, rail, power and natural gas price Investment Climate Tax rates, industrial development incentives, financing options Ethanol & Co-Product Sales Off-take customers, refinery locations, market proximity 9

29 January 02 16 20 Iogen Cellulose Ethanol Plant Preliminary U.S.

11 29 January Iogen Cellulose Ethanol Plant Preliminary U.S. Feedstock Availability Assessment 12 Based on total combined wheat and barley straw and corn stover averages for 1999/2000 drawn within a 100 km radius (metric tonnes) MN-ND South (4.8) 2. NW KS -S. Central NE (4.3) 3. OK Panhandle (KS,CO,OK,TX) (4.2) 4. SW Nebraska (Chase County) (4.1) 5. Western KS Eastern CO (3.8) 14. N. Central KS (2.2) 6. North Central South Dakota (3.5) 15. N. Central OK (1.9) 7. North East CO (3.3) 16. Lincoln Adams Grant (WA) (1.8) 8. Hodgeman -KS (3.1) 17. Butte (CA) (1.7) (includes rice straw) 9. South Central Kansas (2.9) 18. Central North Dakota (1.7) 10. MN-ND North (2.5) 19. NW North Dakota (1.6) 11. NE Montana (2.2) 20. Walla Walla Umatilla (WA-OR) (1.5) 12. Whitman-Lata (WA-ID) (2.2) 21. SW Oklahoma (1.2) 13. North Central Montana (2.2) 22. San Joaquin (CA) (.94) (includes rice straw) Reference: Superimposed on the USDA Map - All Wheat Harvested Acres by County created by USDA National Agricultural Statistics Service. ACRES Not Estimated <10,000 10,000-24,999 25,000-49,999 50,000-99, , , ,000+

12 29 January 02 Iogen Cellulose Ethanol Plant Preliminary U.S. Feedstock Availability Assessment Based on total corn stover averages for 1999/2000 drawn within a 100 km radius (metric tonnes) Reference: Superimposed on the USDA Map - All Corn for Grain Harvested Acres by County created by USDA National Agricultural Statistics Service E. Central IL - W. Central IN (11.7) 2. W. Central IL (11.0) 11. S. Central Iowa (7.5) 3. North IL (10.9) 12. S. Central NE (6.6) 4. N. Central IA S.Central MN (9.6) 13. NE Iowa SE MN (6.3) 5. S. Eastern NE (8.9) 14. NE Nebraska (5.9) 6. East Central IA (8.6) 15. South Illinois (3.6) 7. NW Iowa SW MN (8.4) 16. SW NE Chase County (3.4) 8. Central MN (8.3) 17. OK Panhandle (KS,CO,OK,TX) (2.9) 9. Central Indiana (7.8) 18. NW KS S. West NE (2.5) 10. West Central Iowa (7.7) 19. MN-ND South (2.5) 20. N. Central SD (2.3) 21. NE Colorado (2.2) 22. W. Kansas Eastern CO (1.9) 23. Hodgeman (1.6) 24. S. Central KS (.84) ACRES Not Estimated <10,000 10,000-24,999 25,000-49,999 50,000-99, , , ,000+

present petroleum consumption The purpose of this report is to determine whether the land resources of the

13 DOE & USDA: Cellulose ethanol could displace over 30% of U.S. present petroleum consumption The purpose of this report is to determine whether the land resources of the United States are capable of producing a sustainable supply of biomass sufficient to displace 30% of the country s present petroleum consumption (i.e. 60 billion gallons per year) 1 billion dry tons of biomass feedstock per year. The short answer to the question is yes. 13

14 Resolving energy security Keeping America competitive requires affordable energy. Here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world. We will also fund additional research in cutting-edge methods of producing ethanol, not just from corn but from wood chips, stalks, or switch grass. Our goal is to make this new kind of ethanol practical and competitive within six years. Breakthroughs on this and other new technologies will help us reach another great goal: to replace more than 75 percent of our oil imports from the Middle East by President Bush, Jan. 31 State of the Union Address 14

16 Benefits to agriculture Puts $ in farmer s pockets One billion gallons of cellulose ethanol would be produced by one thousand hundred million gallon plants. Anticipated agriculture revenue per plant is $40 million for a total of $40 billion additional farm income. By comparison, both corn and soybean have a total annual crop value of $20 billion each. Makes agriculture a major energy player. 16

17 Benefits to rural communities Keeps jobs on the farm and in the community Each plant creates 200 direct jobs from skilled labour through technicians to scientists and engineers. Plus those involved with biomass harvest and transport. Each plant also creates 400 construction jobs over two years, and an estimated 450 permanent spin-off jobs. 17

Presentation to: Emerging Energies Conference University of California Santa Barbara

Presentation to: Emerging Energies Conference University of California Santa Barbara February 10-11, 2006 Maurice Hladik, Director of Marketing, Iogen Corporation Who is Iogen? Headquartered in Ottawa,