GS Caltex Corporation August 2012 R&D Center GS Caltex Corporation KOREA

Subsidiaries & Affiliates GS Caltex Overview The first private oil company in Korea as a JV between GS Holdings & Chevron in 1967 Chairman & CEO : Dong-Soo Hur, Ph.D. Sales revenue(2011) : USD 42 billion / Operating Profit(2011) : USD 1.8 billion Implemented energy business diversification and vertical integration 50% 50% Chevron Caltex Lubricants Petrochemicals Refining & Marketing Upstream Subsidiaries & Affiliates More than 10 companies for Power Supply, City gas, & New & Renewable Business, etc.

Petroleum & Petrochemicals Introduction of R&D Center Vision : Leading the future with global outstanding technology R&D pursuits at GS Caltex cover future-oriented new businesses such as new energy sources, high-efficiency energy devices and advanced materials as well as the traditional fields of oil refining and petrochemicals Boasting state-of-the-art equipment and high-caliber R&D staff, the R&D Center explores new businesses through ongoing research to drive the future growth of GS Caltex Biochemical materials Carbon fiber Thin-film Battery Electrode material for rechargeable batteries Carbon material for EDLC Hydrogen/fuel cell Waste-to-energy Charging infrastructure for electric vehicles Solar Cell Biofuel Petroleum product Lubricant product Petrochemical product, etc. Green Solution Petroleum & Petrochemicals Advanced Material Energy Device Source

Bio Business and Projects Bio Business of GS Caltex Commercial production of biodiesel and investigation of a new bio-project by various R&D activities Bio Business and Projects Biofuel for Diesel Mandatory use of biodiesel from 2012 in South Korea GS Bio, our subsidiary company currently producing biodiesel (Capa. : 100,000 ton/yr) at Yeosu refinery complex in South Korea Biofuel for Gasoline Biobutanol process development in accordance with future governmental policy Energy Chemicals Biopolymers Development of renewable or biodegradable polymers using bio-based intermediates production (Nylon 4, PTT, etc) Value added chemicals 2,3-Butanediol production from biomass and development of its derivatives (e.g. butadiene) Finding new application of crude glycerin, a by-product from biodiesel production

Bio Strategy and Activities Support and Supplement for existing oil and petrochemical industry with bio-based energy and products Transformation of low-value by-products(or wastes) into high value added products Pre-emptive response to government policy Open Innovation Strategy for strong buildup of technical value chain and timely, effective development Global network utilization including university, research institute, company, etc Collaboration with feedstock suppliers, plant owners for renovation needs, and people who are interested in commercial co-production and joint marketing Main Activities Core technologies development such as strain, fermentation, separation, and pretreatment Integrated process optimization of core technologies Process design and engineering for commercial scale up

What is Biobutanol? Biobutanol is a valuable product as chemical and fuel Substitute for petroleum based butanol An advanced biofuel that has many benefits over ethanol As transport fuel High Energy Density Low Water Solubility Low Corrosive Low Vapor Pressure Issue of biobutanol commercialization Low final butanol concentration ( < 20 g/L) Low butanol productivity ( < 0.5 g/L/hr) due to low cell density Low yield of butanol due to hetero-fermentation (0.28~0.33 g/g) High cost of butanol recovery from low-concentration yields Biobutanol GS Caltex develops proprietary bacteria and process for biobutanol production!!

Biobutanol Development-Microbe Strain Development Key success factor to increase production performance such as yield, titer, productivity, and selectivity Eliminating co-production pathway of acetone and ethanol (approx. 40% of final products) Various types of genetically modified strains with breakthrough performance secured Ready for the commercial production of biobutanol X Glucose Acetate Acetone Butyrate Ethanol Butanol Functional pathway Cofactor balanced Co-products eliminated High yield High rate High titer Low byproducts GS Caltex’s biocatalysts are microorganisms that have been designed to metabolize various sugars to produce biobutanol

Biobutanol Development-Process Process Development Continuous fermentation process using in-situ butanol recovery with high yield and productivity Our technologies are at a world-leading level : high performance microbe, high productive bioreactor and separation process with low energy consumption For energy saving, dehydration process is ideally combined with membrane and distillation Integrated process and optimization could be developed by simulation techniques and engineering know-how Basic design for commercial biobutanol plant is almost completed Patent More than a dozen of patents and patent applications for the innovative biobutanol process Process Engineering Fermentation Separation System

Biobutanol Pilot Plant Our Pilot Plant Capacity : 30,000 L/yr or above Fully integrated system : fermentation, butanol recovery, water separation and products purification equipments Location : R&D Center of GS Caltex, Daejeon-city, South Korea Funded from a Korea government

Lignocellulosic materials Lignocellulosic Biomass Utilization Development progress for utilizing 2nd generation biomass Overcome the ethical concerns of food (1st generation biomass) as fuel Reducing the production cost of biofuel and biochemical in the near future Conducting a research on applications of various types of biomass to produce biomaterials and co-working with SUDOKWON Landfill Site (capital region of Korea) Management Corp (waste wood) Pretreatment issues for cellulosic biomass Considering a variety of pretreatment technologies such as acid, base, and enzyme Reviewing process for low operating costs and capital expenses, as well as high yield of hydrolysis Pretreatment Dilute acid, Base, Enzyme, etc Lignocellulosic materials Solid sugar or Sugar syrup Construction waste wood sorting facilities (SLC, Korea)

2,3-Butanediol Development What is 2,3-Butanediol? One of the constitutional isomers of butanediol, catalyzing to Butadiene and MEK (methyl ethyl ketone) Produced by microbial fermentation from various biomass, including molasses, starch, lignocellulosic materials, and crude glycerol Our status for 2,3-Butanediol New robust genetically engineered strains, producing 2,3-Butanediol as similar levels of ethanol with respect to titer, yield and productivity A novel and effective 2,3-Butanediol recovery process using solvent extraction A novel dehydrating process from 2,3-Butanediol to Butadiene and MEK using self-developed catalyst Catalytic process 2,3-Butanediol Fermentation Biomass MEK 1,3-Butadiene 2-Butene