1. KHOO HOCK AUN MANAGING DIRECTOR/CEO, COSMO BIOFUELS GROUP, MALAYSIA VICE CHAIR, ROUNDTABLE ON SUSTAINABLE BIOFUELS Greener Skies September 27, 2011, Island Shangri-La Hotel, Hong Kong BIOFUELS HAVE ARRIVED: THE LOGISTICS OF GETTING THEM ON BOARD Session 2 Panel 2

2. OUTLINE OF PRESENTATION Cost and supply are the greatest barriers to a sustainable supply of aviation biofuels. What needs to be done to by governments and industry to create this chain of sustainable production at affordable cost?

3. Marketing to Airlines - Source/Production - Analysis of Competitive Environment - Supply Chain Issues - Size of the Problem - Elegance of the Solution Bio Synthetic Paraffinic Kerosene

4.  Aviation industry seeks early adoption biofuel  10% replacement by 2030 requires 20.4 Mtoe biofuels.  Aviation industry requires truly sustainable biofuels;  Regulations are fierce;  Prefer 2 nd generation sources such as jatropha, algae, camelina. USA has focus on domestically grown camelina.

5. Research and development into superior planting material,seed production, nurseries, and establishing strategic plantations Development of viable contract-farming hybridised with plantation methodology Establishment of sufficient logistical and expellation infrastructure for the farmers and plantations to process their harvested seeds into crude jatropha oil Development of a practical safe Refinery Network to create BIO-SPK product in demand Establishment of a trading platform to create a market for the jatropha based aviation biofuel Research & Development Initiatives Advanced Plantation Approaches Agribusiness Supporting Infrastructure Bio-SPK Refinery System Trading Platform

7. JATROPHA CURCAS OIL PALM BELT BELT

8. CountryLabour Cost Availability of Labour Availability of Land Rainfall Fuel Security ChinaLowHigh MixedHigh IndonesiaLowHigh Low CambodiaVery Low HighVery High MixedHigh MalaysiaVery High Low HighLow PhilippinesLowHigh ThailandHigh Low High MyanmarLowHigh MixedHigh IndiaLowHigh LowHigh LaosLowHigh MixedHigh VietnamLowHigh MixedLow

9. The Jatropha Bio-jetfuel value chain for sustainable feedstock Criteria of partners Potential stakeholders Research & Development –Three continents to be covered –Professional fields and management –Land availability –Technological ability to produce biojet fuel –Optimal Logistic to fueling hubs –FFP – Fit for Purpose logistic integration –Off take contracts –Embrapa Agroenergia –Other research institutions –… –Curcas – Americas –Inocas -Africa –Cosmo -Asia –Petrochemical Partners –“Green field” –… –Aviation Logistic Operators –End users: airlines, airports SUSTAINABILITY: PROJECT MANAGEMENT: To cross-check the RSB criteria on the Brazilian Bio-jetfuel Platform: Inocas, Yale University, Fundacao Espaco Eco – Curcas, Inocas, Cosmo, Santiago Sustainable Feedstock BioJetFuel production BioJetFuel use –Track record in plant sciences –Experience in Jatropha research

10. The RSB is an international multi-stakeholder voluntary initiative developing a sustainability certification program for biofuels production. The RSB standard is … generic to all crops, adaptable to new information, truly multi-stakeholder; … and includes … environmental criteria social criteria

11.  Principle 1: Biofuel operations shall follow all applicable laws and regulations.  Principle 2: Sustainable biofuel operations shall be planned, implemented, and continuously improved through an open, transparent, and consultative Environmental and Social Impact Assessment (ESIA) and an economic viability analysis.  Principle 3. Biofuels shall contribute to climate change mitigation by significantly reducing lifecycle GHG emissions as compared to fossil fuels.  Principle 4. Biofuel operations shall not violate human rights or labor rights, and shall promote decent work and the well-being of workers.  Principle 5. In regions of poverty, biofuel operations shall contribute to the social and economic development of local, rural and indigenous people and communities.  Principle 6. Biofuel operations shall ensure the human right to adequate food and improve food security in food insecure regions.

12.  Principle 7. Biofuel operations shall avoid negative impacts on biodiversity, ecosystems, and other conservation values  Principle 8: Biofuel operations shall implement practices that seek to reverse soil degradation and/or maintain soil health.  Principle 9. Biofuel operations shall maintain or enhance the quality and quantity of surface and ground water resources, and respect prior formal or customary water rights.  Principle 10. Air pollution from biofuel operations shall be minimized along the supply chain.  Principle 11: Use of Technology, Inputs, and Management of Waste.  Principle 12. Biofuel operations shall respect land rights and land use rights.

13. reporting of : certificates risk assessments risk management reports self evaluations independent audits application Self Risk Assessment decision by the RSB SOE Compliance with RSB Standard for Participating Operator Operator YES application to Certification Body Self Risk Assessment Full Self Evaluation audit planning Participating Operator independent audit NO compliant Certificate Re-auditing not compliant

14.  No Feedstock Limitations  Easy to Ship and Store  Fits into Existing Infrastructure  Produced Using Proven Chemistry/Biology  Despite Years of Effort, No Second Generation Biofuels Have Been Fully Commercialized – Why Not? 14

15. 2009 – Algae R&D Projects Mature, Start of Sales Into Higher-Value Non-Fuel Markets 2010 – Algae Pilot Projects & Demonstration Projects Increase in Scale & Production 2011 – Early Algae Fuel Production Projects Arrive For Defense, Government, CO2 2011– Early-Stage C02 Capture Projects Arrive (Expensive at first, then cheaper) 2012-2015: Scale Up: Commercial Projects, Production, Markets (Costs decrease) 2010-2015: Phase 1: Smaller Markets: Higher-Value Commodity Products: Pharma/Nutraceuticals, Animal Feed Supplements, High Value Oils, Green Polymers: Bio-Degradable Chemicals, Materials, Additives 2012-2020: Increased Production, Competition Lowers Costs, Market Share Increases To Commercialization 2012-2020: Phase 2: Big Markets: Algae Grows as a Commodity for Fuels: Biodiesel, Biocrude, Drop in Fuels, Ethanol, Aviation Fuels, Animal Feed, Large-Scale Green Chemical Markets, Plastics, Polymers Emerge * Note - will be expensive at first, then cheaper as production increases Source ALGAE 2020 STUDY, Emerging Markets Online

16. THANK YOU !! Contact Details: Khoo Hock Aun Mobile : +6016-301 4079 Email : Email :khoohockaun@cosmobiofuels.comkhoohockaun@gmail.com COSMO BIOFUELS GROUP