Building Successful Feedstock Logistical Systems

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1 Building Successful Feedstock Logistical Systems February 4, 2015 Southeastern Sun Grant Regional Conference Auburn, Alabama Lance Stewart Supply Chain Manager

2 Genera Energy Privately held biomass supply solutions company based in Vonore, TN Bringing an industrial approach and experience to agricultural biomass supply - Energy crop production, biomass processing, management services The most experienced company in the country producing, managing, handling, and processing a wide variety of biomass feedstocks - Purpose grown energy crops like high biomass sorghum, switchgrass, miscanthus, energy cane, short rotation woody crops, residues - Diverse geographies Extensive partners up & down the value chain 167 Tellico Port Road Vonore, TN (423) tel. Dr. Sam Jackson accepting the 2013 Sustainable Biofuels Award for Sustainable Feedstock Innovation, Awarded at the World Biofuels Markets 2013 Congress & Exhibition, the largest international gathering of its kind. 3

3 Genera s Biomass Scope Perennial Herbaceous Crops Annual Herbaceous Crops Crop Residues Woody Biomass Switchgrass Miscanthus Energy Cane Wide Hybrids Tropical Grasses High Biomass Sorghum Sweet Sorghum Tobacco Corn Stover Wheat Straw Sugarcane Bagasse Forest Residues Secondary Processing Residues Short Rotation Hybrid Poplar & Willow Feedstock opportunities are region-specific Imperative that biomass feedstock systems are sustainable A feedstock portfolio solution is generally most efficient and lowest risk

4 Genera s Integrated Solution Proprietary GIS Model Energy Grange Management Supply ASSURE System BIN-SPEC Processing Planning Land Production Harvest Logistics Storage Inventory Transport Milling Handling Data-Rich Feedstock Supply & Cost Model >95% establishment rate success Max Axle Weight per Truck Increases Efficiency Moisture Management & Optimized Location Project-Specific System Design Land Accumulation & Control Model Optimized Harvesting Across Multiple Systems Moisture management, safety & security are critical Maintain Quality & Minimize Cost Risk Management & QA/QC

5 Genera Improves Customer s Economics Cost Per Ton 1. Lower feedstock cost by as much as 33% 2. Generate more consistent quality, improving yields & lowering operating costs Quality 20 Copyright 2014, 2014, Genera Energy Inc. Inc.

6 Supply ASSURE TM System Proprietary GIS Model Energy Grange Management Supply ASSURE System BIN-SPEC Process Harvest and Collection Equipment selection driven by full-cost / yield analysis Preferred provider network ensures availability at the right time and place Precise scheduling of harvest type and location, maximizing just-in-time delivery Aggregation and Transportation Moisture management for quality control Maximize density to reduce cost Minimize field to storage move & time Scheduling accommodates automated weather adjustments Inventory Control Real-time tracking software Location and custody specific ERP integration and QA/QC risk management tools 6

7 Operational & Cost Improvement Opportunities Year-round just-in-time supply Efficiency in daily operational schedules (in spite of the weather) Preserve field standing yield in delivered feedstock Minimize non-biomass material in feedstock Minimize the cost of capital Cost effective dry-down solutions Cost effective buffer stock solutions Copyright 2014, 2015, Genera Genera Energy Energy Inc. Inc.

8 Operational & Cost Improvement Opportunities Year-round just-in-time supply Minimize non-biomass material in feedstock Biomass supply chain and logistics system requirements are complex and the challenges are not trivial, but Efficiency in daily operational Minimize the cost of capital schedules (in spite of the weather) Cost effective dry-down solutions Preserve field standing yield in delivered All upstream feedstock agricultural or resource Cost supply effective systems buffer functioning stock solutions today are complex, they just have a longer history of focused effort Copyright 2014, 2015, Genera Genera Energy Energy Inc. Inc.

9 Facilities & Resources 1 Processing R&D Facilities (Biomass Innovation Park) 2 Energy Crop Research 3 & Demonstration Plots Extensive Partners Across Supply Chain 22-acre commercial scale processing campus driving efficiencies & innovations between farm gate & biorefinery gate Design flexibility allows custom processing to customer specs 50,000 tons/yr biomass processing capacity, 100,000 tons/yr biomass storage Located in Vonore, TN Since 2011, operational experience with switchgrass, corn stover, miscanthus, bagasse, sorghum, energy cane, wood chips Scale ranging from 10m 2 to hundreds of acres Locations spread throughout the U.S. & tropical regions Broad variety of biomass crops, varieties & cultivars including: perennial grasses - 5+ annual energy crops - 5+ woody crops - Oilseed crops - Mixed crop systems Large enough scale to do commercial equipment testing & validation Biotech & genetics companies with advanced genetics & plant stock Equipment manufacturers & dealers developing improved equipment for planting, harvesting, aggregation, transportation Extensive network of ag input suppliers and vendors Data & information companies Longstanding relationships with leading university and national laboratory scientists and researchers

10 High Biomass Sorghum New variety trials Improved harvesting equipment to address moisture challenges

11 High Biomass Sorghum Improved harvesting equipment to address moisture challenges New biomass head with double conditioning roller to facilitate stalk dry down

12 High Biomass Sorghum Baling dry biomass sorghum offers increased flexibility Produced large square bales averaging 1,350 lbs at 15% moisture

13 Baling Operations Evaluated new bale harvesting equipment at commercial scale New Holland s self-propelled swather and 340 Big Baler produced 1,150 pound bales at 18% moisture, 16 ft. swather traveled between 6 and 6.5 MPH

14 Bale Storage R&D Evaluating storage scenarios and bale wrap products Partnering with IBSS to evaluate moisture accumulation, dry matter loss, costs, air flow inside and around stacks, moisture accumulation and condensation

15 Forage Chopping Switchgrass Forage chopped hundreds of tons of switchgrass with a single pass system High throughput bulk handling system reduces time and labor

16 Forage Chopping Switchgrass Trucks filled in under 5.5 minutes, traveled ~7 miles to receiving depot, round trips averaged 46 minutes Moisture content averaged 13.7%

17 Bulk Chop Material Handling Average time to weigh in, unload, weigh out: just over 7 minutes Highly scrutinized safety practices and detailed hazard assessments were key to keeping all workers safe

18 Challenges in Forage Harvest Operations Weather Complications Direct truck loading can be an option Tip wagons typically used Storage complications Direct delivery and use Currently researching alternatives Feedstock bulk density Short distance hauls Compaction can be an option 18

19 Bulk Biomass Storage Opportunities Evaluating suitability of pile storage for forage chopped biomass Comparison to coal and wood chip industry methods and technologies Copyright 2014, 2015, Genera Genera Energy Energy Inc. Inc.

20 Stacker Reclaim Pile R&D Working with INL to evaluate pile storage, installed weather station, extensive use of sensors At 150 days, very promising results

21 Agronomic Advancements Shorter establishment period for perennials Advanced planting procedures with precision ag Visual obstruction method and improved methods for predicting supply shortfalls within-season Testing crop enhancement products and specialized fertilizers to evaluate yield impacts 21

22 Integrating Future Technologies

23 Scaling Requires Industrial Approach & Integrated Data Systems

24 Summary Genera provides de-risked, scalable feedstock supply and processing solutions Specialized in providing consistent, uniform industrial biomass feedstocks Genera s industry-leading expertise can improve efficiencies and reduce costs in any biomass processing application

25 Genera Energy Inc. 167 Tellico Port Road Vonore, TN Phone Fax