1 Taconic Energy Overview NYSERDA Business Development Program Review William Acker June 10 th, 2010

2 Taconic Energy Overview  Save billions of gallons of oil  Eliminate tens of millions of tons of CO 2  Do it NOW – without changing vehicles, fuel, or infrastructure Each gallon of bio-surfactant saves 50 gallons of fuel and 1000 pounds of CO 2  Based on sound science and validated in extensive testing  Unique chemistry  NYSERDA contracts  Independent lab testing  Strong team  Multi billion dollar market  Market penetration strategy

3 Product  How it works  Frictional losses are substantial  Ability to target site  Metal affinity and lubricity  Dose  One gallon of bio-surfactant treats 2,000 gallons of fuel  Benefits  2% to 5% fuel savings (3% to 7% with ongoing use)  50 gallons of fuel saved per gallon of bio-surfactant  1000 pounds CO 2 reduced per gallon of bio-surfactant  Reduce engine wear AggregateUnited States Fuel Saved (gal.)5 Billion Gallons Fuel Saved ($)> $10 Billion CO2 eliminated50 Million Tons

4 Team William AckerCEO  Serial Entrepreneur  Vast experience in energy sector James KetchamPresident  Lead Texaco Fuel Research and Chevron Fuel Additive Technology  Expert in performance testing of fuels and additives Benjamin KaufmanCTO  Lead Texaco Fuel Additives Research and BASF Fuel Additive Business for NAFTA region  Expert in fuel additive chemistry Carl TomikProduct Manager  25 years of sales experience  Business-to-business and consumer experience

5 Markets  Vehicle Fleets  Gasoline portion approx. $100MM, with $10MM entry segment  After Market Additives  Gasoline retail  Specialty retailers (Hypermarkets)  Regional firms  Multi-nationals  Diesel Markets  Bulk  Fleets & Military  Future Carbon Market?  Price on carbon  EPA mandates

6 Market Strategy  Launch in US fleet vehicle market in 2011  Economic savings aligned with purchase decision making  Create awareness  Field experience and supply chain scale  Select international markets  High fuel cost markets  Educated consumers  Domestic specialty retailers (hypermarkets)  Willingness to differentiate  Green marketing value  Broader fuel retailer market

7 Competition  Initially competing against non-consumption  Detergents  Restore performance v. improving performance  Can have large affects in select vehicles  After-market products  Different market segment  High consumer skepticism  Traditional fuel additive companies

8 Taconic Chemistry  Delivered with fuel to site where needed (“silver bullet”)  Thermally survives on combustion wall, provide friction modification there and in oil, combusted when not on wall  Polar head and attachment chemistry matters  High affinity for metal surface  Orientation to provide dense packing  Tail properties matter  Length, geometry and bulk Molecule Design Strategy Lubricity providing Tail Attachment Point Polar Head

9 Bio-surfactant Design Considerations  Environmental  EPA registered for use in US fuel o Substantially similar classification (CHONS) o Renewably derived – used in cosmetics/shampoos  Compatible with commercial handling and distribution  Cost and Processing  Derived from inexpensive starting materials  Special production metallurgy or conditions not needed  Desired product maximized/waste minimized  Intellectual property estate being pursued  Broad patent on class of materials as fuel additives- application filed  Method for use in diesel – application being prepared

10 Vehicle Testing EPA HFET Standard Dyno Test Taconic Pkwy Road Test Fleet Test “Real World” Road Test “Real World” Experience “ Real World” evaluation in centrally fueled fleets Historical vehicle fuel economy comparisons for single sites Historical site fuel usage comparisons Engine wear data comparisons via oil sample analyses 4.6% Improvement 4.3% Improvement

11 Taconic Energy Additive Solutions Discussion and Thank You