Sustainably Growing Above-Ground Energy Reserves

Sustainably Growing Above-Ground Energy Reserves

Sustainable Feedstocks Environmental Non-food feedstocks Grown on non-food non-fiber land International sustainability certification Low direct and indirect carbon intensity Social Rural development and jobs Workforce diversity Sustainability certification Local community participation Economic development catalyst Community health and safety Economic Self-sustaining business model (subsidy free viability) Market access Supply chain Scale Regulatory Approvals 2

Formula for Success Cost Reduction Identification Tracking Control Yield Improvement Genetics Agronomics Horticulture Value Increase Oil Biomass Carbon Enhanced Economic, Environmental and Social Sustainability 3

2 nd Gen Crop-based Feedstock Fundamentals Strategic Perennial Non-food Low cost land Sufficient scale No dluc / Low iluc Supply chain / logistics Market flexibility Monetization Annual Non-food True varieties Regulatory approvals No/limited iluc Supply chain / logistics Market flexibility Monetization Tactical Crop improvement program R&D program & collaboration Regional market access 100% co-product utilization Continuously pursue higher value markets Business flexibility Crop improvement program R&D investment Regional market access 100% co-product utilization Continuously pursue higher value markets Farmer alignment 4

Feedstock Development Focus Operational Jatropha Camelina Polyculture Non-food grown on marginal land (meets EPA renewable biomass definition) Breeding program (elite regionally adapted germplasm) Pending regulatory approval (U.S. EPA expected late-2015) Only patented seed varieties on the market All regulatory approvals (U.S. EPA, FDA, USDA, CARB, RED/FQD) Double-, relay- or inter-cropped Market Ready No competition with food Not 5-7 years out Viable on non-food, non-fiber land and/or in polyculture 5

Non-Food Annual and Perennial Energy Crops 100% Perennial Crop - Jatropha Annual Crop - Camelina 6

Perennial Annual Supply Chain Sustainability Integration maximizes value and extends sustainability further up supply chain 100 percent co-product utilization and revenue maximization Feedstock Production Processing Products YIELD ENHANCEMENT TECHNOLOGY SEED PRODUCTION/SALES CONTRACT/DIRECT GRAIN PRODUCTION EXTRACTION & REFINING VIRGIN OIL, FEED & CHARCOAL Camelina Jatropha

Business Model and Deployment Strategy Company Owned Farms Seeds Services Seeds Central Services Land Acquisition Farm Planning Germplasm Supply Plant Science Support Soil Science Support Farming Technology Land & Farm Management Equipment Sourcing Infrastructure Support Extraction Technology Processing Technology Logistics Off-Take Management Research & Development Services Seeds Managed Farms Contract Farms Services Seeds Services Services Franchise Farms Joint Venture Farms 8

Data-Based Farm Planning Raw Land Multi-Spectral Satellite Image Land Classified by Vegetation Land Classified by Carbon Debt Land Preparation Decided by Carbon Recent Satellite Image 9

Data-Based Farm Selection Systematic Regional Analysis and Farm Identification Sort and target growers based on parcel characteristics, fallow rotations, historical crops, etc. Reduces transaction costs, increases sustainability and farmer revenue Northern Montana Farm Parcels

Data-Based Farm Management Soil Amendment Tracking Labor Management - Productivity 11

Focus on Applied Research Science & Technology Agronomics Genetics Horticulture Optimization Research & Development Lab Testing & Field Application Soil chemistry Tissue analysis Genetic/phenotype characterization Market assisted breeding Continuous selection and breeding Horticulture technology & practices 1965 2008 12

Continuous Crop Improvement Process Soil Science Plant Science Agricultural Technology = Improved Crop Yields 5 Yr Goal 100% 10 Yr Goal 300% 13

Regulatory and Environmental Landscape Sustainability as regulatory compliance criteria EU RED & FQD Fuel Quality Directive (FQD) will limit crop-based biofuels to 7% Moving towards including iluc for compliance on emissions Camelina has no iluc (U.S. EPA & CARB) Jatropha will have very low iluc (preliminary U.S. EPA) Waste Products Classification Redefine certain waste products like used cooking oil (UCO) and distillers corn oil (DCO) as co-products Include full field-to-tank emissions AND primary product iluc (in future) MASBI Findings (Midwest Aviation Sustainable Biofuels Initiative 2012) Sustainability criteria are essential to supportive biofuels policies Camelina is only scalable feedstock with necessary attributes and approvals to supply marketplace in near- and medium-term 14

De-Risking Sustainable Feedstocks Feedstock Supply Cost basis fuels vs. Market basis fuels Feedstocks with known risks can be mitigated Risks Agricultural risk Market risk Development risk Yield risk Mitigation Crop insurance Farmer participation Integrated pest and disease mgmt. Training Genetic, agronomic and horticultural R&D Market access (local) Economically competitive subsidy free viability Feedstock Sustainability Focus on 2 nd generation feedstocks that do not compete with food Land selection & farmer education No or limited dluc and iluc Adopt sustainability criteria Crop improvement R&D Regionally adapted germplasm Strategic alignment Enhanced market value for certified products Sustainability without subsidies 15