Green energy: a sustainable energy and waste diversion solution. Tim Cesarek Enerkem Senior Vice President Business Development

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1 Green energy: a sustainable energy and waste diversion solution Tim Cesarek Enerkem Senior Vice President Business Development

2 Enerkem at a glance Produces biofuels and renewable chemicals from waste Proprietary technology Founded in employees $200M in equity investments from financial and strategic investors Operates 2 facilities in Québec: Pilot plant in Sherbrooke Demonstration facility in Westbury Builds/develops 3 fullscale commercial plants: Edmonton (Alberta) / Varennes (Québec) / Pontotoc (Mississippi)

3 Rigourous path to commercialization MODULAR COMMERCIAL FACILITIES WESTBURY FACILITY UNIVERSITY OF SHERBROOKE PILOT SHERBROOKE Laboratory Pilot Syngas Demo MethanolD emo Ethanol Demo Full-scale commercial production

4 The Enerkem Approach Build, own and operate model for first plants Standardized plant model Lower operating temperatures and pressures Lower costs compared to traditional waste conversion technologies Marketable end-products Lower disposal costs

5 (US$/metric ton) Solving a growing waste problem New Landfills Permitted in the U.S. Average Remaining Life of U.S. Landfills ($/metric ton) MSW Landfill Tipping Fees 50 $ Years $31.44 $39.09 Alaska Hawaii Years Years 40+ Years Source: Waste Business Journal (2011). Note: Average remaining life of landfill by State calculated as: remaining MSW landfill capacity (2010) divided by average MSW landfilled per year from 2000 to 2010.

6 Process driving a sustainable competitive advantage KEY HIGHLIGHTS Heterogenous feedstock Key IP Low severities Low OPEX Low CAPEX Key IP Gas purification & separation (chemical-grade CO, H 2 & CO 2 streams) CO, H 2 & CO 2 reacted with catalyst to produce fuels & chemicals Product optionality Low-severity technology capable of converting heterogeneous feedstock to clean syngas, the fundamental building block for all Enerkem s products

7 Renewable chemicals for everyday products

8 (Billions GPY) Meeting the increasing demand for renewable fuels 40 U.S. RFS2 Canadian RFS mandates CAGR: 9.0% 16 billion gallon premium cellulosic/ nextgen market Average annual ethanol content mandated at 5% (2% for biodiesel) Several provinces also legislated renewable fuel content: BC, AB, SK, MA, ON Advanced biofuels² Biomass-based diesel Cellulosic biofuels Renewable fuels (Corn-based biofuels)¹

9 Enerkem s locations 3 Edmonton, Alberta, Canada (equity partners) Commercial facility Under construction Sorted municipal waste 10 MGY (38 M litres/year) 4 Pontotoc, Mississippi, U.S.A. Commercial facility Under development 1 Sherbrooke, Québec, Canada Pilot Plant Sorted municipal waste and wood residues 10 MGY (38 M litres/year) 2 Westbury, Québec, Canada 5 Varennes, Québec, Canada (JV partner) Demonstration facility Commercial facility Commissioned in 2009 Under development Treated wood and waste 1.3 MGY (5 M litres/year) Sorted industrial, commercial and institutional waste 10 MGY (38 M litres/year)

10 Demonstration facility in Westbury, Quebec

11 Part of an integrated waste management system Recycled 20% Composted 40% Biofuels 30% Landfill 10% Waste diversion = 90%

12 100,000 tonnes Enerkem facility in Edmonton, AB 25-year waste supply agreement with the City of Edmonton July 2013 Enerkem will help increase the City of Edmonton s waste diversion rate to 90%

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15 Planned full-scale facilities Varennes, Quebec (Canada) Integration of an existing, first-generation ethanol plant and a new cellulosic ethanol facility Pontotoc, Mississippi (U.S.) Selected to receive funding from U.S. Department of Energy (DOE) and Department of Agriculture (USDA)

16 Today Tomorrow Well-defined vision for growth Expect to partner with chemical companies Chemicals Products could include: Butanol, Propanol, Acrylic acid and Ethylene International Expansion In discussions with a number of select partners Asia, Middle East, Europe Manufacture and Sell Enerkem Systems to Leverage Strategic Partnerships Build, Own, and Operate Sites and Systems Westbury Demonstration Operational Edmonton Commercial Under Construction Varennes Commercial Under Development Strategy designed to retain full control of technology and optimize growth

17 Enerkem s waste-based biofuels answer many of today s challenges and needs Displaces reliance on oil and petroleum Helps transition to a green economy Significantly reduces GHG footprint Does not use feedstock that competes with food supply Provides a competitive and sustainable waste diversion solution Stimulates the economy: creates jobs, reduces imports and provides export opportunities

18 Imagine using your garbage to fuel your car