© Poet 2007 Minnesota Next Generation Energy Board June 28, 2007 Jeff Fox Vice President, Legal & Government Affairs

© Poet 2007

20 years ethanol industry experience Over one billion gallons of production capacity World’s largest dry mill producer Over 1,100 team members 33 ethanol plant development projects Unique business model (integrated) Low cost producer Leading developer of technology Operate 20 plants 7 plants under construction 10,000 farmer investors Company Profile

© Poet 2007

America’s Challenge Reducing climate change Strengthen energy security Revitalizing rural economy Safeguarding water resources

© Poet 2007 Climate Change The production and use of 4.9 billion gallons of domestic ethanol reduced C0 2 -equivalent greenhouse gas emissions by approximately 8 million tons in That would be the equivalent of removing 1.21 million cars from American roads. Source: Argonne National Laboratory, GREET 1.7 Model

© Poet 2007 The U.S. currently imports more than 13.5 million barrels of oil per day. At a cost of $60 per barrel, this equates to more than $295.5 billion per year, almost thirty percent of our annual trade deficit. No economy can sustain this level of wealth transfer.

© Poet 2007 The 2006 U.S. Ethanol Industry… Increased gross output by $41.1 billion through the combination of spending for annual operations, ethanol transportation, and capital spending for new biorefineries under construction. Supported the creation of 160,231 jobs, including nearly 20,000 jobs in manufacturing. Added $2.7 billion in new tax revenue for the federal government and $2.3 billion for state and local treasuries that can be used for new roads, school improvements and first responders. Source: RFA

© Poet 2007 Ethanol Quick Fact Ethanol produces 67% more energy than it takes to produce. That compares to a loss of 20% with gasoline Source: RFA

© Poet 2007 Our Challenge Global Warming –The debate is over. It is the issue. Dependency on Foreign Oil –“For too long our nation has been dependent on foreign oil…it is in our vital interest to diversify America’s energy supply.” President George W. Bush, 2007 State of the Union 35 Billion Gallons by 2017 –The vision is clear

© Poet 2007 Why Cellulosic Ethanol? 2006 ethanol production = 5 bn gallons 2005 total transportation fuel consumption = 140 bn gallons To meet the federal government 2017 goal of 35 bn gallons of ethanol must be produced –Grain corn is projected to provide 15 bn gallons of ethanol by crop year –Alternative biomass feedstock will be required to meet the additional 20 bn gallons of ethanol.

© Poet 2007

Recipients Poet of Sioux Falls, South Dakota, up to $80 million. The plant is in Emmetsburg (Palo Alto County), Iowa, and after expansion, it will produce 125 million gallons of ethanol per year, of which roughly 25 percent will be cellulosic ethanol. For feedstock in the production of cellulosic ethanol, the plant expects to use 842 tons per day of corn fiber, cobs, and stalks.

© Poet 2007 Recipients Iogen Biorefinery Partners, LLC, of Arlington, Virginia, up to $80 million. –The proposed plant will be built in Shelley, Idaho, near Idaho Falls, and will produce 18 million gallons of ethanol annually. The plant will use 700 tons per day of agricultural residues including wheat straw, barley straw, corn stover, switchgrass, and rice straw as feedstocks. Range Fuels (formerly Kergy Inc.) of Broomfield, Colorado, up to $76 million. –The proposed plant will be constructed in Soperton (Treutlen County), Georgia. The plant will produce about 40 million gallons of ethanol per year and 9 million gallons per year of methanol. As feedstock, the plant will use 1,200 tons per day of wood residues and wood based energy crops.

© Poet 2007 Recipients Abengoa Bioenergy Biomass of Kansas, LLC of Chesterfield, Missouri, up to $76 million. –The proposed plant will be located in Kansas and use 700 tons per day of corn stover, wheat straw, milo stubble, switchgrass, and other feedstocks to produce 11.4 million gallons of ethanol annually. ALICO, Inc. of LaBelle, Florida, up to $33 million. –The proposed plant will be in LaBelle, Florida. The plant will produce 13.9 million gallons of ethanol a year and 6,255 kilowatts of electric power, as well as 8.8 tons of hydrogen and 50 tons of ammonia per day. For feedstock, the plant will use 770 tons per day of yard, wood, and vegetative wastes and eventually energycane. BlueFire Ethanol, Inc. of Irvine, California, up to $40 million. –The proposed plant will be in Southern California. The plant will be sited on an existing landfill and produce about 19 million gallons of ethanol a year. As feedstock, the plant would use 700 tons per day of sorted green waste and wood waste from landfills.

© Poet World Ethanol Production

© Poet 2007 Ethanol Demand/Feedstock Supply E bn gal5 bn bu –Matches NCGA 2016/2017 projections E bn gal mm ton –Matches biomass feedstock availability projections E bn gal 1250 mm ton –Matches “Billion Ton Study”

© Poet 2007 Sustainable Collection of Biomass “All biomass is local” Issues management –Erosion –Soil fertility Balancing act “Changing Agriculture” –No-till –Feedstock collection What about cobs?

© Poet 2007 Cobs –78% of material exiting the combine –18% of the above ground stover –16% more carbohydrate than stover alone 35.4% glucan 31.1% xylan Collection options –Separate –Grain/cob co-mingled Processing options –On farm processing –Off-site processing Corn Cob Collection/Processing

© Poet 2007 The “Cob Caddy”

© Poet 2007 “CCM” Package

© Poet 2007 Co-mingled Corn Grain and Cobs (CCM) The corn & cob mixture is unloaded into common hopper bottom trailers & hauled to the farm, plant or separation area.

© Poet 2007 Separation Options The Corn & Cob mix can be separated at the field, farm or plant.

© Poet 2007 Storage Options CCM can either be separated in the field or hauled to a pile for further processing.

© Poet 2007 Dry Grind Ethanol Production

© Poet 2007 How Ethanol will Be Made Cob Processing Pretreatment Saccharification Fermentation Alternative Energy

© Poet 2007 Poet Biorefinery Ethanol Grain Corn Corn Germ Endosperm CO2 Ferment Distill Centrifuge & Dry Pre-treat Hydrolysis & Fermentation Distill Steam to Process Bran Cellulosic Ethanol Biomass Boiler Separator Solid Fuel Anaerobic Digester Liquids Boiler Biogas DDG Dryers Electric Generator DGHP Corn Cob

© Poet 2007 Project LIBERTY The ability to operate cob collection and bio-refinery systems to: –Validate the technology at commercial scale –Validate the economics at commercial scale –Enable replication at other existing dry mills or new grassroots facilities Project LIBERTY deliverables: –11 percent more ethanol from a bushel of corn –27 percent more ethanol from an acre of corn –83 percent less fossil fuel consumption –24 percent less water consumption

© Poet 2007 The Real Cost of Food

© Poet 2007 Thank you