1. Agenda Background – Bioresources/Renewable Energy Overview – Bioresources inc Investment Growth Potential – future investment opportunities, innovative approaches NEPIC Innovation Day Ramside Hall – November 15, 2011

2. NEPIC – strategic deliverers for public sector funded (RDA) Regional Biofuels Project  £1.7M public sector funding April 2008 – March 2011  Co-incided with UK legislation – RTFO; European legislation - RED  Sustainability criteria  Vision – for NE to become a global hub for biofuels/renewable energy  Underpinned by a number of strategic initiatives In order to build critical mass, recognised the need to focus on a wider bioresources sector incorporating fuels, heat, electricity, chemicals/materials. Background

3. 30% electricity, if all wind, will require ~15,000 turbines 12% heat target, if met by biomass alone, will require ~20 million tonnes of wood in UK by 2020 10% transport target, if met by biofuel alone, will require ~6.5 billion litres bioethanol and biodiesel in UK by 2020 In all the above, opportunities exist..... Size of Challenge – Scale of Opportunity Business growth and investment…..innovation

4. NEPIC Leadership Team Marketing & Communications Manufacturing & Productivity North East Bioresources and Renewables – (NEBR) PEG TIG Innovation Skills & ResourcesEnergySupply Chain  Promoting the Northeast as a centre of biomass processing into fuels, energy, chemicals and materials.

5. Building Low Carbon Economy in NE – existing projects

6. Building Critical Mass in North East England Building Low Carbon Economy in NE - additional projects ?

7. Overview of Biorefining Classification System International Energy Agency (IEA) Bioenergy Task 42 Biorefinery Document

8. Anaerobic digestion Biogas Combustion Electricity Pre-treatment e.g. Graphite Resources Gasification Syngas Fuels e.g. Ineos Bio Chemical Feedstocks e.g. Tees Valley Hydrogen e.g Air Products SNG (NEPIC feasibility study) Organic Residues and Waste Combustion Electricity and Heat Sembcorp/ SITA Wilton 11 NWL Lignocellulosic Crops and Residues Bio Methanol Digestate

9. Teesside CCS Project has been submitted by DECC to the European Commission under the NER300 Process. An IGCC process gasifying coal with carbon capture. Options: 1.Generate syngas from high temperature gasification, convert CO to CO 2 and capture (sequester or market opportunity eg EOR). - hydrogen then used to produce electricity. 2.Utilise green hydrogen as key feedstock for chemical producers in Tees Valley 3.Utilise syngas stream as key feedstock for chemical producers in Tees Valley Proposed Teesside CCS Project

10. 10 Rev 1.5, 07 November 2011 Biomass / Coal Gasification Syngas Boiler Power Gen Steam&Power Gas turbine Combined Cycle IC Engine Fuel Cells Refinery Hydrotreating Transportation fuels Fuel cells Chemicals Fertilizers Hydrogen Fischer- Tropsch Methanol Ethanol Formaldehyde Methyl Acetate Acetic Acid DME Ethylene Propylene Acetic Anhydride VAM PVA Ketene Diketene & Derivatives Acetiv Esters Gasoline Polyolefins Oxy Chemicals Wax Diesel/ Kerosene Gasoline Naphtha *based on information from ThermoChem Recovery International, Inc Syngas Applications & Synergy For Tees Valley Chemical/Process Industry 2 nd generation biofuel Heat and Power application (Bio)refineries MTBE

11. Biomethanol Opportunity From Biomass. Through gasification, production of 2nd generation /advanced biofuel from woody biomass Use of existing but redundant MeOH facility at Billingham Option to produce at different scales – impact on volume but also cost Could use 1, 2 or 3 gasifiers each processing ca 250K oven dry tonnes per annum. Taking biomass handling, gasification, gas cleaning and methanol synthesis the investment ranges from £200M - £400M assuming use of existing methanol process infrastructure.

12. ‘Green Product’ Demand An increasing number of market sectors focussing on green products - examples include transport (biofuels), polymer production (packaging materials), construction industry (lower energy buildings) and specialities (cosmetics). More and more suppliers are being asked to demonstrate ‘green credentials’ by leading high street brands e.g Coca Cola, Marks & Spencer, Polyester (PET) bottles m E.G + PTA

13. Ongoing/Next Steps  Continue to seek and develop relationships with potential investors – build on NEPIC relationship with UKTI – India, Brazil, China, Russia, USA etc.  Address key areas of Policy, Feedstock/Finance  Maintain and build upon connectivity to supply chains – strategic thrust teams  Fully exploit opportunity of RGF SME bid  Lead partner and involvement in European Projects LOCIMAP (Low Carbon Industrial Manufacturing Parks) UK, Scandinavia, Mainland Europe Wood SNG (synthetic natural gas from woody biomass) Austria, Germany, Holland, Italy Innovative Supply Chains for Low Value Forest Waste – pre commercial thinning’s and residues