ChallengesChallenges && OpportunitiesOpportunities inin DevelopingDeveloping aa SustainableSustainable BiomassBiomass InfrastructureInfrastructure

P.P. NairNair UOPUOP LLC,LLC, AA HoneywellHoneywell CompanyCompany

CO2 Summit: Technology & Opportunity June 6-10, 2010 Vail, Colorado

© 2009 UOP LLC. All rights reserved. Honeywell Corporate Overview

• 125,000 employees in more Transportation & Power Systems than 100 countries • A Fortune 100 company – Specialty Materials sales of $34.5 billion in 2008 Aerospace • Global leader in advanced 15% technology products, 36% services 15% UOP and solutions 34%

Automation & Control

Technology Company, Financially Strong and Global UOP Proprietary What UOP Does UOP creates knowledge via invention and innovation and applies it to the energy industry

y 1,570 Scientists and Engineers y Process Technology y 2,600 active patents y Catalysts y Expertise y Adsorbents y Experience y Equipment y Services

Since 2007

Petroleum Petrochemicals Natural Gas Renewables

Today More Than 60% of the World’s Gasoline and 85% of Biodegradable Detergents are Made Using UOP Technology

UOP 5158-03 Agenda

y Global Context: – Energy Demand – Regulations y UOP Vision for Sustainable Infrastructure y Technology Solutions: – Green Diesel – Green Jet – Lignocellulosic Conversion paths y Summary Macromarket Summary: Through 2020

y Global energy demand is expected to grow at CAGR 1.6%. –Primary Energy diversity will become increasingly important over this period with coal, natural gas & renewables playing bigger roles. y Fossil fuels are expected to supply 83% of energy and 95% of liquid transportation needs y are expected to grow at 8-12%/year to ~3.0 MBPD

Biofuels: A Growing Presence

Source: IEA, 2008 Petroleum Refining Context

Butane

Light Ends Gas Processing Sulfur Plant Sulfur Unit Butane- Alcohol Isobutane Butylene H2 Etherification Alkylation Iso-octane Iso-octane y Refining: ~100 years Fuel Gas Isomerate Production Light Naphtha LPG Isomerization Alkylate Gasoline Jet Crude Oil Flue Gas Fuels H2 H y ~750 refineries Catalytic 2 Reformate LPG Solvents Reforming Crude Treating Naphtha Naphtha Diesels H Aromatics & Desalting Hydrotreating 2 BTX Light Production Distillates y ~85M BBL of crude Heating Light Distillate Distillates

(Topping) H Oils 2 Hydrotreating Latest Refining Heavy Diesel and Heating Oil refined daily Technology Crude Oil Distillation Oil Crude Distillate Geases Development Heavy Distillate & Licensing Hydrotreating Light Olefins Production Fuel Oil H2 Fluid Catalytic Atmospheric Cracking Gasoline y ~50M BBL transport Gas Oil Gasoline, Naphtha, Middle Distillates, Gas Oil H Hydrotreating 2 Gasoline Kerosene and Jet Fuels fuels; ~6M BBL of Gas Oil Hydrocracking Diesel and Heating Oils

Product Treating Blending aviation fuel Lube Oils

Vacuum Distillation Lube Oil Lube Oils Solvent Production Extraction & Deasphalting Heavy Fuel Oil y Complex but efficient Vacuum Resid Visbreaking Asphalt Asphalts conversion Diesel Gasification Syngas/Steam Coking Electricity Coke processes Natural Gas Natural Gas, Fuel Oil Energy Conservation & Plant Environmental Maintenance/ Plant Upgrades Hydrogen Production/ Controls Management & Revamps Gas-to-Liquids (Power Reliability/ Purification/Recovery Production) Safety

Fuel, Wax H2

Fossil fuel production has 100 years head start relative to sustainable biofuels – but technology is catching up fast. Biofuels: A Quickly Changing Landscape

2007 2008 UOP Position y All biofuels are good y Not all biofuels are good y Emphasis on life y More, faster y Concern for food chain cycle analysis as a impact & competition way of measuring y No criteria to “sustainability” measure impact of for land/water adopting biofuels y Measured y Ensure technology is adoption feedstock flexible y Availability of nd “inexpensive” bio y Utilization of LCA y Focus on 2 feedstocks analysis to “qualify”: generation technologies y Government link to GHG, energy, mandates and sustainability y Create partnerships incentives favor y Bio feedstocks tracking between feedstock ethanol and energy prices suppliers and fuel producers y Government mandates/ incentives increasingly technology neutral y Emphasis on “real” biofuels

Increasing Awareness of Potential Impact Charting the EU Renewable Landscape

Renewable Energy Directive Fuel Quality Directive (RED) (FQD)

y 20% of EU gross energy y GHG Emissions: Fuel Suppliers consumption from renewables to reduce 2020 levels by 6% by 2020 relative to 2010 levels y Transport Fuels: 10% renewable y Carbon footprint reduction for content by 2020 all land transport fuels y Incentives for renewable power y Sustainability criteria y Sustainability criteria y Fuel quality specs y State specific targets

y 3 pieces of legislation adopted Emissions Trading Scheme (ETS) y Each member state must comply: y CO2 Cap and Trade system y Broad industry coverage – Timetables may differ y Includes air transport – Financial penalties or incentives will vary – Mix and total energy targets vary by state – Wide differences on starting point Charting the US Renewable Landscape

Renewable Power Standard Renewable Fuel Standard (RPS) (RFS) y State mandated ~2.5M BPD biofuels by 2022 renewable power yCorn ethanol, capped at y More than 30 States have RPS ~1M BPD ySustainability targets will force transition to 2nd generation feedstocks yTechnology neutral

Mandatory RPS State Renewable Goal

Carbon Legislation y California LCFS: Fuel Carbon Legislation Adopted Intensity reduction yFederal Mandates for y North Eastern States GHG Cap & transport fuels - RFS Trade initiative y Federal Carbon Cap legislation yState mandates controlling introduced carbon emissions yState Mandates for renewable power Global Legislation Overview: Ground Transport Fuels

Canadian Law C-33 Mandates: EU-27 – Adopted Mandates: • E5 by 2010 • RED – 10% by Energy content by 2020 • B2 by 2012 • FQD – 6% GHG reduction by 2020 from 2010 levels • B5 in British Colombia by 2010 • E10/B5 targets

EISA 2007: • E10 mandate • RFS mandate -36 Billion • E20/B20 by 2017 Gal by 2022 • Several State mandates in effect • California – LCFS Mandates: • E5-E10 mandates mandated • Brazil: E25/B3 • B1-B5 mandates • GHG initiatives • Argentina: E5/B5 (2010) established in NE States • Colombia: E10/B5 E_ : Renewable content in Gasoline B_ : Renewable content in Diesel Global Biofuels use Trending Towards a Nominal E10 & B5 Specific Drivers for Aviation Biofuels

• Commercial aviation commitments to carbon neutral growth – Visibility of aviation industry dictates sustainability is a key factor – European ETS dictates C reductions starting in 2012 – ATA/AITA disconnect pulls alternative fuels (not just biofuels) into the mix • US Defense Sector commitments – Air Force: 50% of all domestic aircraft running on 50/50 blend by 2016 – Navy: 50% of all systems running on alternatives by 2020 • Global consumption (2008) – 5 M bpd or 80 B gpy – US Military: 0.3 M bpd or 4.5 B gpy Key Drivers of Emissions Reductions

th / Using less fuel ow al Gr s ew nt ns re en me io su et R lop y Efficient Airplanes ss ea Fle ve Emi n M g De d tio oin gy ts ste uc ng olo men y Operational Efficiency ca ed O hn prove re o R Tec ts /Im Fo w/ tmen Emissions s Inve 2 ATM Low Carbon Fuels Changing the fuel CO Baseline y Sustainable Biofuels

Carbon Neutral Timeline 2050

Presented to ICAO GIACC/3 February 2009 by Paul Steele on behalf of ACI, CANSO, IATA and ICCAIA

OEM’s and US Military Driving Green Jet Demand Agenda

y Global Context: – Energy Demand – Regulations y UOP Vision for Sustainable Biomass Infrastructure y Technology Solutions: – Green Diesel – Green Jet – Lignocellulosic Conversion paths y Summary UOP Biofuels Vision

• Produce real “drop-in” fuels instead of fuel additives/blends • Leverage existing refining/ transportation infrastructure to lower capital costs, minimize value chain disruptions, and reduce investment risk • Focus on path toward second generation feedstocks Renewable Hydrocarbon Biofuels Oxygenated Biofuels Energy Fuel & Ethanol Biodiesel Fuel & Diesel Jet Gasoline PowerPower

“Other” Oils: Camelina, Jatropha, Halophytes First Second Generation Generation

Lignocellulosic Natural oils biomass, (vegetables, greases) algal oils US/EU: Second Generation Feedstock Focus

Feedstock: – Significant R&D being invested into development 2nd generation and transition feedstocks • Algae • Camelina • Cellulosics y Time line for commercial production: – Camelina – 2010 – Cellulosics – 2012 – Algae – 2017? Algae Provides the Greatest Substitution Potential Biofuel Production: Regional Feedstock Trends

Global Trend: – Food based to First Generation Transition Second Generation non-food based Edible Grains, Oils Inedible Grains, Oils Cellulose, Algae y US/EU: – Food vs fuel – Sustainability

InedibleInedible – GHG emission TransitionTransition FeedstockFeedstock reduction targets y China/India – Non-food feedstocks • Jatropha, cassava, sweet sorghun, pongamia Source: IFQC y SE Asia/S America – Feedstock advantaged, palm, soy, castor Increased focus on 2nd Generation & Transition Feedstocks Time-lines for Commercial Scale Production Vary Forthcoming Feedstocks

Camelina Pennycress y Current markets Northwest US and y Member of mustard family Southern Canada y High seed & oil yield y Wide-spread acreage y Off season from as rotation crop Corn & Soy y >200 million gallons (87M & 78M by 2012 in the US acres planted in 2009) y Potential for >100M gpy by 2015 Jatropha Animal Fats/Greases y Yields high quality oil y Considered as waste biomass y Seed quality, cultivation practices y Sells at discount to most and water impact yields natural oils y Yields vary from – Highly saturated 220-450 gal/acre/ year y Meets the US EPA’s LCA based GHG reduction criteria y Potential in limited number of areas y Potential for ~200K BPD of renewable diesel/jet production in Americas/EU y 200K to 500K bpd potential Feedstock utilized for Green Fuels: Geography specific UOP 5341-33 Algae: Multiple Sources for Fuels

Wild Algae Enhanced Heterotrophically Algae Strains Grown Algae

Low Production Moderate Production Cost Moderate Production Costs Costs Moderate Pre-Treatment Costs

EcofiningTM High Pre-Treatment Low Pre-Treatment Costs Costs Green Fuels Jet, Diesel Getting There

CostCost AlgalAlgal ReductionReduction inin LignocellulosicLignocellulosic ClimateClimate ActiveActive LifeLife CyclesCycles COCO22 EquivalentsEquivalents EfficiencyEfficiency SustainabilitySustainability TechnologyTechnology Biofuels NetNet EnergyEnergy Sustainability ProductionProduction ≤≤ ConsumptionConsumption DistributedDistributed EmissionsEmissions UncompromisedUncompromised SupplySupply ChainChain ProductProduct QualityQuality StandardsStandards

VehicleVehicle FleetFleet EnergyEnergy WorldWorld TradeTrade FeedstockFeedstock ContentContent AvailabilityAvailability Agenda

y Global Context: – Energy Demand – Regulations y UOP Vision for Sustainable Biomass Infrastructure y Technology Solutions: – Green Diesel – Green Jet – Lignocellulosic Conversion pathways y Summary Biofuels Overview: Technology Pathways

Feedstocks = UOP Areas Products

Sugars Fermentation Dehydration Ethanol

C6 Sugars Distiller’s Grain C / C CO Enzyme 5 6 2 Renewable Starches Conversion Sugars Energy Acid or Enzyme Hydrolysis

Direct Green Conversion Gasoline Hydrotreating Lignin, Cellulose Pyrolysis/Thermal oil & Hemicellulose Depolymerization Bio- Fischer- Lights s ga Tropsch H2O yn Gasification S Alcohol Green Synthesis Diesel/Jet

FCC Natural Oils Hydrotreating Glycerine

nd Co-Feed 2 Gen Feeds Transesterification (Jatropha, FAME or Camelina & Algal) FAEE Current biofuel market based on sugars & oils. Use bridging feedstocks to get to 2nd Generation Feeds: Algae & Lignocellulosics UOP/ENI Ecofining™ Green Diesel y Superior technology that Process Comparison vs. Biodiesel produces a drop-in diesel Natural Oil/ Grease y Uses existing refining BiodieselBiodiesel (FAME)(FAME) + Glycerol + infrastructure, can be Methanol transported via pipeline, and can be used in existing Natural Oil/ Grease automotive fleet GreenGreen DieselDiesel + Propane + y CFPP and Cloud Point can be Hydrogen controlled Process Overview y Excellent blending component, allowing refiners Feed Make-up 2.2 – 3.5 Hydrogen Wt-% to expand diesel pool by Acid Gas mixing in “bottoms” Reactor Removal CO2 System y Can be used as an approach Propane to increase refinery diesel Separator output Green 1 – 10 Naphtha Vol-% Water or Jet Green 88 – 98 Diesel Vol-% Product Honeywell Green DieselTM Product Comparison

Biodiesel Honeywell Green Petroleum ULSD (FAME) Diesel Oxygen Content, % 0 11 0 Specific Gravity 0.84 0.88 0.78 Cloud Point, °C -5 -5 to +15 -20 to +10 Cetane 40 - 52 50-65 70-90 Sulphur, ppm <10 <2 <2 Energy Density, MJ/kg 43 38 44 Energy Content, BTU/gal 129 K 118 K 123 K Poly-Aromatics, vol-% 4 - 12 0 0 Colour Clear Light to Dark Clear Yellow Oxidative Stability Baseline Poor Baseline Production cost $/gallon Baseline Baseline - $0.22

High Quality Fully Fungible Diesel fuel at a Lower Cost than Biodiesel. UOP Renewable Jet Process Overview

• Initially a DARPA-funded project to develop process technology to produce Natural Oils & Crude Oil military jet fuel (JP-8) from renewable Fats sources TM • An extension of UOP Ecofining UOP Renewable Oil Refinery process, with selective cracking to make Jet Process jet-range material • Produces SPK that meets all properties of Synthetic ASTM D7566 Fossil Jet Fuel Paraffinic • Certification for blending up to 50% in Kerosene progress DARPA Project Partners 50% 50%

Fully Fungible “drop-in” Renewable Fuel

Technology being Licensed RenewableAviation Emissions Aviation Are Growing Fuel Rapidly Market Drivers

EU GHG Emissions by Sector as an Index of 1990 Levels 180 y EU Emission Trading Scheme

160 extending to aviation sector:

140 – Aviation emissions: Fastest growing of any 120 sector

Index 100 =1990 =1990 Index 100 Index 100 100

80 Key Drivers of Emissions Reductions

60 19901991199219931994199519961997199819992000200120022003 th ow Gr Year Source: ICAO s res ion su Int Aviation Waste ss ea Emi n M d tio Energy Total (Without LUCF) ste uc ts ca ed men Industrial Processes Transport re R prove Fo w/o ts /Im Agriculture tmen Emissions es M Inv 2 AT

CO Low Carbon Fuels y US Military’s National Security driven Baseline goals to achieve both greater substitution and GHG reduction Carbon Neutral Timeline Presented to ICAO GIACC/3 February 2009 by Paul Steele on behalf of ACI, CANSO, IATA and ICCAIA Renewable Jet Process will meet an unaddressed gap if aviation is to grow at or beneath carbon neutrality UOP’s Renewable Jet & Green Diesel Process

Selective Product Deoxygenation Hydrocracking Separation Feedstocks Hydrogen Rapeseed Tallow Light Fuels

Jatropha CO2 Soybean Algal Oils SPK Palm Oil (Green Jet) Camelina Greases Water Green Diesel y Feedstock flexible y Costs – Capex: similar to typical refinery process unit – Opex: SPK cost subject to feedstock cost, but can be competitive with Jet A-1 with current US incentives y High quality green hydrocarbon products – Swing between SPK and Green Diesel production to meet demand Commercial scale proven technology Key Properties of Green Jet

Jatropha/ Jatropha Camelina Algae Jet A-1 Derived Derived Derived Description Specs SPK SPK SPK Flash Point, oC Min 38 46.5 42.0 41.0 Freezing Point, oC Max -47 -57.0 -63.5 -54.5 JFTOT@300oC Filter dP, mmHg max 25 0.0 0.0 0.2 Tube Deposit Less Than < 3 1.0 <1 1.0 Net heat of combustion, MJ/kg min 42.8 44.3 44.0 44.2 Viscosity, -20 deg C, mm2/sec max 8.0 3.66 3.33 3.51 Sulfur, ppm max 3000 <0.0 <0.0 <0.0 y Over 6000 US Gallons of bio-SPK made

Production Viability Demonstrated Fuel Samples from Different Sources Meet Key Properties ASTM D7566 Issued 1st Sept 09

D1655 5.1 Materials and y Body of Spec Applies to Manufacture Finished Semi-Synthetic Fuel Produced to D7566 Can Fuel Table 1 Be Designated as D1655 Fuel y Annex for Each Class of Synthetic Blending Component D7566 y Allow Re-Certification to Av Turbine Fuel Containing Blend Comp’s Criteria Syn HC’s D1655 and Blend % Limits Table 1 y Annex 1 Blended Fuel Annex 1 Performance – Hydroprocessed SPK Annex 2 50% Properties Annex 3 Other Adv Hydpross’d • Includes 50% FT Other Adv Fuels or SPK Fuel Fuel Fuels or Processes Blends Processes Certification of SPK to 50% targeted for 2010

Slide courtesy of Mark Rumizen, FAA/CAAFI UOP Proprietary Completed Flight Demonstrations Feedstock: Jatropha oil

y Successful ANZ Flight Demo Date: Dec. 30, 2008

Feedstock: Jatropha and algal oil

y Successful CAL Flight Demo Date: Jan. 7, 2009

Feedstock: Camelina, Jatropha and algal oil

y,

y KLM European Test Flight: November 23, 2009 Camelina US Military Supply Contracts y AF and Navy are now certifying HRJ through large fuel purchases through the Defense Energy Support Center (DESC) – These fuel purchases will accelerate the military certification of HRJ fuels – 1600 gallons of on-spec HRJ-5 was delivered to the Navy on spec and on time – Additional fuel is being produced to meet the next Navy and Air Force deadlines – HRJ5 and HRJ8 specification limits are more stringent than ASTM D7566 spec – Overall program will further demonstrate the feedstock and process flexibility of the UOP technology to produce HRJ fuels to meet different specifications Line Volume Item (gallons) Type of Fuel Feedstock Prime Supplier Producer Comment 1 40,000 Navy HRJ-5 Camelina Sustainable Oils UOP Optional 2 150,000 Navy HRJ-5 Camelina Sustainable Oils UOP Amount 3 100,000 Air Force HRJ-8 Camelina Sustainable Oils UOP 4 100,000 Air Force HRJ-8 Tallow UOP (Cargill Feed) UOP Optional 5 100,000 Air Force HRJ-8 Camelina Sustainable Oils UOP Amount Optional 6 100,000 Air Force HRJ-8 Tallow UOP (Cargill Feed) UOP Amount 7 1,600 Navy HRJ-5 Algal Oil Solazyme UOP All from 2nd Generation Sustainable Feedstocks UOP 5341-23 Life Cycle Analysis for Renewable Jet Fuel

Cumulative Energy Demand Greenhouse Gases 1.6 90 1.4 80 LUC Error Bar 1.2 70 60 1 5000 50 0.8 eq./MJ 4000 2

40 eq./MJ 0.6 3000 2

g CO 30 2000 0.4 g CO 20 MJ (Input)/MJ (Output) 0.2 10 1000 0 0 0 0 Kerosene Jatropha Tallow Soy -500 Green Green Green Kerosene Jatropha Camelina Tallow Soy Jet Jet Jet Green Green Green Green Jet Jet Jet Jet Non-renewable, Fossil Non-renewable, Nuclear Cultivation Oil Production Renewable Biomass Renewable, Wind, Solar, Geothe Fuel Production Transportation Renewable, Water Use Significant GHG Reduction Potential

Basic Data for Jatropha Production and Use. Reinhardt, Guido et al. IFEU June 2008 Biodiesel from Tallow. Judd, Barry. s.l. : Prepared for Energy Efficiency and Conservation Authority, 2002. Environmental Life-Cycle Inventory of Detergent-Grade Surfactant Sourcing and Production. Pittinger, Charles et al. 1, Prarie Village, Ka : Journal of the American Oil Chemists' Society, 1993, Vol. 70. Lignocellulosic Biomass Processing Options

Direct Heat & Combustion Power

Fast Pyrolysis Upgrading Transport Pyrolysis Oil Fuels

Solid SynGas Biomass

Hydro- Fischer Gasification cracking/ Tropsch Dewaxing Envergent Route to Energy Fermentation/ Bioethanol/ Catalysis Biobutanol

UOP 5363-08 Pyrolysis Oil to Energy & Fuels

CornCorn StoverStover P P Electricity Production P P Available

Refinery Today

P P Fuel Oil Substitution Biomass Fast Pyrolysis Pyrolysis Oil

MixedMixed WoodsWoods Transport Fuels (Gasoline, Jet Diesel) 3 Years to complete R&D Chemicals (Resins, BTX)

Conversion to Transport Fuels Demonstrated in Lab Collaboration with DOE, USDA, PNNL, NREL RTPTM Unit Process Diagram

Quench & Separation Conversion Feed System

Surge Bin

Feed Bin

Heat for Moisture Reduction

Minimal Net Utilities – RTP Is Self sustaining Process With Reduced Carbon Footprint UOP 5363-11 Pyrolysis Oil as Burner Fuel

• Energy densification Property Value Test Method Gross Heat of 15 min ASTM D240 improves logistics and Combustion, MJ/kg Point, oC provides flexibility Pyrolysis Solids 2.5 max ASTM D7544, Content, wt% Annex I • Relatively low emissions Water Content, 30 max ASTM E203 (NOx, SOx, ash) wt% pH report ASTM E70

• Consistent quality results Kinematic 125 max ASTM D445 Viscosity, cSt @ in improved operations 40 °C - ASTM D7544, Standard Density, kg/dm3 1.1 – 1.3 ASTM D4052 Specification for Pyrolysis Liquid @ 20 °C Sulfur Content, 0.05 max ASTM 4294 Biofuel, established last month wt% Ash Content, 0.25 max ASTM 482 wt% Flash Point, oC 45 min ASTM D93, Procedure B 25-30% Lower Cost than #2 Pour Point, oC -9 max ASTM D97 Fuel Oil on an Energy Basis Pyrolysis Oil Energy Applications

Fuel Heat y Compatible with Burner specialized turbines y Specialized burner tips RTP Gas Electricity Unit Turbine CHP improve flame/burning y Convert to steam to Diesel use existing Engine infrastructure Green Optimized Gasoline, UOP Green y Use as a blend in Upgrading Diesel & diesel engines Technology Green Jet y Upgradable to Syngas Hydro- Gasification Fischer- Tropsch cracking/ hydrocarbon fuels Dewaxing

Multiple Applications for Pyrolysis Oil, a Renewable Fuel Available Today UOP 5363-14 Cetane impact Fuels could be be could Future Cold flow Engine properties relaxed for relaxed Oxygenates Particulates new engines requirements still important Could Decrease Aromatics could be higher without higher be negative emissions Nil Nil 10-60 10-80 35 max Typical ULS Diesel Limited by cold flowLimited by Limited by emissions Limited by Conventional (from petroleum) 4 7 44 38 Nil Typical Gasoline 10 25 55 35 0.9 0.8 Max wood) Biofuel 5 17 40 10 (from mixed 0.6 0.1 Min

Separate Directly into a Gasoline Fuel

Process Further into Diesel, Jet or Chemicals Paraffin, wt% Iso-Paraffin, wt% Olefin, wt% Naphthene, wt% wt% Aromatic, Oxygenate, wt% Deoxygenated Product Properties RTPTM Economics – Fuel Oil Substitute

Comparison of Cost of RTP Operation to Purchasing Equivalent Amount of Fuel Oil 15.0

il 14.0 O l Delivered &Dry Cost, Feedstock Fue 13.0 2 # of nt 50 $US/Metric Tonne 12.0 ou m A nt 11.0 le 40 va ui 10.0 Eq g in 30 uy 9.0 B of 40 $US/MT Feedstock Million $US/year t os Breaks even @ ~28 $US/barrel 8.0 C

7.0

6.0

5.0 15 20 25 30 35 40 45

Crude Oil Price, $US/barrel y 400 BDMTPD RTP, hardwood whitewood feed; 330 days per year y #2 Fuel Oil scaled from 28 Nov 08 WTI Spot, 55 $US/bbl, & 1.67 $US/USGal for #2 Fuel Oil, Source EIA y Pyrolysis oil contains 55% of energy content of fuel oil, by volume. y 15 year straight line depreciation included in cost of operation; $US 30 million RTP ISBL CAPEX

Economic Solution for Fuel Oil Substitution UOP 5363-16 Agenda

y Global Context: – Energy Demand – Regulations y UOP Vision for Sustainable Biomass Infrastructure y Technology Solutions: – Green Diesel – Green Jet – Lignocellulosic Conversion paths y Summary Summary y Renewables are going to make up an increasing share of the energy pool – Fungible biofuels enable synergy & refinery expansion – Essential to overlay sustainability criteria y To achieve sustainability, biofuels must be “Done Right”. y US Military & OEM’s driving bio-jet interest y Biomass derived fuel and power enable growth of the agriculture sector and improve the rural economy. y Important to promote technology neutral and performance based standards and directives to avoid standardization on old technology.