World Waste to Energy City Summit – May 2015 Vincent Chornet President and CEO Enerkem biorefineries: setting a new global standard in biofuels, chemicals and waste management

Enerkem at a glance MSW-based biofuels and renewable chemicals producer World’s first full-scale commercial MSW biorefinery beginning operations in Edmonton, Alberta 300 million invested to date to move from R&D to commercial stage 200 employees New alternative to landfilling and incineration

ENERKEM ALBERTA BIOFUELS World’s first commercial MSW-to-biofuels and chemicals facility inaugurated June 4th 2014 ENERKEM ALBERTA BIOFUELS Capacity: 38 million litres per year (i.e. 1 X standard Enerkem system) Feedstock: Municipal solid waste (household garbage from City of Edmonton) 100,000 dry tonnes per year Products: Biomethanol, cellulosic ethanol

Not skipping steps: an essential Modular commercial Biorefineries WESTBURY FACILITY x 2 University of SHERBROOKE pilot x 2 SHERBROOKE x 3 Laboratory Pilot Syngas Demo Methanol Demo Ethanol Demo Full-scale commercial production Piloting began in 2003 Tested over 20 types of waste feedstock Industrial demo facility producing syngas, biomethanol and advanced ethanol Accumulated over 11,700 hours of operations in campaign

Cost-competitive and sustainable ACT solution 38-152 MLPY Municipality: Supplies 100,000- 400,000 tons of MSW per year (long-term contract) Pays tipping fee – attractive compared to status quo Suggests sites Enerkem: Invests approx. $100M to build, own and operate the biorefinery Converts RDF into 38 to 152 MLPY of biofuels/biochemicals Works with the city to optimize MSW sorting into commodities and for site selection Manages business risks incl. sale of final product Creates high-quality jobs: 600 direct/indirect during construction 150 direct/indirect (permanent) during operation (for 1 X standard Enerkem system of 10 MGY) Generates $C65M/year in net economic benefits in the region (for 1 X standard Enerkem system of 10 MGY)

Comparison with incineration Enerkem Incineration Where does the carbon go? Biofuels and chemicals (replacing oil) Smokestack emits CO2 Finality Chemical recycling of carbon into alcohols Waste elimination Technology Partial oxidation Reforming Catalytic conversion Mass combustion CAPEX for equivalent plant EBITDA* $225M $425M Primary revenue source Sale of liquid fuels and chemicals Sale of waste disposal service and electricity Break-even tipping fee Power generation: ½ the tipping fee Fuels and chemicals: less than ½ the tipping fee Greater than $80/mt * For processing 500,000 mt/year unsorted MSW

 City of Edmonton’s Integrated Waste Management Centre Recycled  20% Composted  40% Biofuels  30% Landfill  10%  Waste diversion = 90%

Large market potential BIOFUELS: US$ 98 BILLION REN. CHEMICALS: US$ 57 BILLION Sources: World Bank, 2012; Statista 2015; MarketsandMarkets

Business model Moving beyond BOO model  licensing and equipment supply Modular manufacturing approach enabling global expansion 43 pre-fabricated modules for standard facility (e.g. Edmonton): 15 process-driven modules 28 structural modules

Target growth areas for global partnerships Strategic partnerships with leading industrial groups Selection based on market attractiveness: public policies tipping fees proximity to petrochemical infrastructure population City clusters: North America: L.A. - San Francisco - San Diego - Stockton - Sacramento New York - Washington - Philadelphia - Harrisburg Seattle - Portland - Vancouver Montreal - Ottawa Edmonton - Calgary Toronto - Detroit - Cleveland - Buffalo Chicago - Indianapolis Europe: Paris - Lille - Antwerp - Brussels - Cologne / Dusseldorf - Frankfurt - Rotterdam - Amsterdam London - Southampton - Manchester - Leeds - Sheffield - Liverpool - Nottingham - Birmingham Manneheim - Stuttgart - Munich - Nuremberg Milan - Turin - Lyon - Marseille Budapest - Vienna Barcelona – Valencia Sevilla - Málaga Rome - Naples Warsaw - Katowice Istanbul – Ankara Asia: Shenyang - Anshan - Changchun - Harbin Shijiazhuang - Tientsin - Beijing - Jinan - Zibo Nanking - Shanghai - Xuzhou - Hangzhou - Hofei Tokyo - Osaka - Nagoya - Hamamatsu Okayama - Kitakyushu - Hiroshima - Fukuoka Pusan - Taegu - Ulsan - Seoul - Changwon – Taejon Middle East: Riyadh - Damman - Bahrain - Doha - Dubai - Abu Dhabi

Vincent Chornet President and CEO vchornet@enerkem.com