Technology to Supply Cellulosic Ethanol and “Green” Electricity April 15, 2010

2 Reserve Space for “Tracking” Contents Or Company Logo Company logo OUTLINE  Why biofuels? Drivers Southeast US advantages  Starting up a company Georgia Tech ATDC/Venture Lab Valley of Death  Discussion Fact vs Fiction IMHO If I were King

3 Reserve Space for “Tracking” Contents Or Company Logo Company logo UNITED STATES ENERGY SOURCES  2008 Data

4 Reserve Space for “Tracking” Contents Or Company Logo Company logo IEA – WORLD ENERGY OUTLOOK 2008

5 Reserve Space for “Tracking” Contents Or Company Logo Company logo DECLINING OIL PRODUCTION - CANTARELL

6 Reserve Space for “Tracking” Contents Or Company Logo Company logo KEY GLOBAL ENERGY CHALLENGES  Oil Production Decline Rate  Oil Price Volatility -OPEC/National Oil Companies -Lack of Reliable Data  Global Rate of Investment in Oil Production  Scale of Carbon Solutions  Cost of Usable Energy Storage

7 Reserve Space for “Tracking” Contents Or Company Logo Company logo KEY ENERGY CHALLENGES FOR RENEWABLES  Scale  High Cost  Infrastructure Barriers Capital/Financing/Lag Time NIMBY  Flexibility Limitations Wind, Solar are Intermittent Energy Storage Technology Limits Inefficient Distribution Systems  Sustainability Problems & Unintended Consequences

8 Reserve Space for “Tracking” Contents Or Company Logo Company logo KEY FACTORS FOR SUCCESSFUL BIOFUELS DEVELOPMENT  Scale – A High Impact Solution  Feedstock – Readily Available with Predictable Costs  Low Cost – Compared to Gasoline  Infrastructure – Use Existing or Offer Alternate, Low Cost Option  Locale – Win-Win Relationships  Policy – Mandates for Renewables, High Greenhouse Gas Reduction

9 Reserve Space for “Tracking” Contents Or Company Logo Company logo MASSIVE SUSTAINABLE PINE RESOURCE  Southeastern United States has 192 Million Acres of Timberland  54 % of the total area  88% is Privately Owned  463 Million tons of Small Diameter Softwood in Forest Inventory USDA FOREST SERVICE SOUTHERN RESEARCH STATION Forest Inventory and Analysis Sources: USDA Forest Service,2007 Map Maker 2.1. For Information Visit: Produced July18, 2007.Author Spatial Data Services All Live Merchantable Softwood Tree Biomass Green Tons per Acre of Timberland >35 Tons per acre

10 Reserve Space for “Tracking” Contents Or Company Logo Company logo PHOTOSYNTHESIS STORES ENERGY IN BIOMASS AS CARBOHYDRATES

11 Reserve Space for “Tracking” Contents Or Company Logo Company logo PINE HAS BEST ETHANOL YIELD

12 Reserve Space for “Tracking” Contents Or Company Logo Company logo CELLULOSE – POLYMERS OF GLUCOSE

13 Reserve Space for “Tracking” Contents Or Company Logo Company logo SOUTHERN PINE WOODCHIPS TO ETHANOL  Enzymatic Hydrolysis/Sugar Platform  Power Generation from Lignin Fuel

14 Reserve Space for “Tracking” Contents Or Company Logo Company logo SCALE UP TO COMMERCIAL SIZE PLANT Lab Scale Pilot Operation Demonstration Plant Commercial Plant 100,000 Gal 2,500,000 Gal 56,000,000 Gal Annual Production Proof of Concept TechnologyIntegration Prove Economics/ Optimize Optimize & Drive Costs Lower

15 Reserve Space for “Tracking” Contents Or Company Logo Company logo COMPETITION Biofuels - Second generation Biochemical (Carbohydrate conversion; C6, C5)

16 Reserve Space for “Tracking” Contents Or Company Logo Company logo COMPETITION  Biofuels - Second generation Thermochemical (Syn gas + conversion; Pyrolysis bio-oil) Other

17 Reserve Space for “Tracking” Contents Or Company Logo Company logo COMPANY FACTS  Formed in May 2005 anticipating high growth from energy security & environmental policy changes  Founders have deep industry and entrepreneurial experience  Georgia Tech affiliated company; licensing technology from Georgia Tech and The University of Georgia General Information Funding Information   Prior Funding Rounds: $1.325 million common stock $200,000 state grants   Current Funding from Strategic Partners In Progress

18 Reserve Space for “Tracking” Contents Or Company Logo Company logo SELECTING A PATHWAY  Southern Pine Feedstock Available Year Round at Massive ScaleAvailable Year Round at Massive Scale Low, Predictable CostsLow, Predictable Costs Existing InfrastructureExisting Infrastructure SustainableSustainable  Enzymatic Hydrolysis Process Technology Cellulosic Ethanol & Green ElectricityCellulosic Ethanol & Green Electricity Scale-up Advantages with PineScale-up Advantages with Pine Efficient Approach with Woody BiomassEfficient Approach with Woody Biomass 90+ % Greenhouse Gas Reduction90+ % Greenhouse Gas Reduction

19 Reserve Space for “Tracking” Contents Or Company Logo Company logo MARKETS  Customers Area fuel distributors – Off-take contracts -Chevron, Shell, Marathon, etc. -RaceTrac, QuickTrip, etc.  Distribution Delivery via tank truck to customer area distribution terminal Superior logistics vs. corn ethanol Mandated Market Total biofuels - 36 Billion gal/yr by 2022 Existing Market Corn ethanol – 10+ Billion gal/yr in 2009 Target Market Southeast US E10 gasoline blend: 3.4 Billion gal/yr   Other Markets – “Green” Electricity Customers – Power Generation Cos.   Trends Mandated renewable electricity – 20% Renewable Portfolio Standard Carbon credits (future) Strong public policy supporting liquid transportation fuel & “green” power   Biofuels 3.4 Billion 10 Billion 36 Billion

20 Reserve Space for “Tracking” Contents Or Company Logo Company logo DEVELOPING STRATEGIC PARTNERS  Georgia TechRoyalties  University of GeorgiaRoyalties  Georgia PowerRenewable liquid boiler fuel  Oak Ridge National LabsResearch collaboration  NovozymesProprietary enzymes  Plum Creek Timber Co.Higher pulpwood value  ArborGenProprietary woody energy crops  Genera EnergyProprietary switchgrass energy crops  Davis Oil CompanySupply of renewable transportation fuel

21 Reserve Space for “Tracking” Contents Or Company Logo Company logo MARGINS OF CELLULOSIC ETHANOL PRODUCTION – COMMERCIAL SCALE Revenue Components ($/Gal)  Recent Wholesale Ethanol Price (CBOT)$1.60  Transportation to SE Service Station$0.33  Production Credit (2008 Farm Bill)$0.56  Total Revenue$2.49 Cost Component Description ($/Gal)  Recent Pine Feedstock Cost ($56/dry ton)$0.70  Net Conversion Costs$0.90  Transportation to SE Service Station$0.10  Net Delivered Cost to SE Service Station$1.70 Margin Using Recent Costs($/Gal)  Projected Margin$0.79

22 Reserve Space for “Tracking” Contents Or Company Logo Company logo ETHANOL FROM SE PINE WOODCHIPS – COST ADVANTAGE Oil - $60/bbl ÷ 42 gal/bbl = $1.43/gal Corn - $3/bu ÷ 2.8 gal/bu = $1.07/gal Woodchips - [($28/Green Ton) x (2 Dry tons/Green ton)] ÷ 80 gal/Dry ton = $0.70/gal Woodchips - [($28/Green Ton) x (2 Dry tons/Green ton)] ÷ 80 gal/Dry ton = $0.70/gal 2. Feedstock Cost Calculations :  Pine Woodchips – Low cost relative to alternative fuel feedstocks 1. $28/GT (8+20) GT = Green Ton (8+20) = $8/ton to timberland owner + $20/ton to harvest, chip, deliver wood

23 Reserve Space for “Tracking” Contents Or Company Logo Company logo ETHANOL FROM SE PINE WOODCHIPS – COST ADVANTAGE Oil - $120/bbl ÷ 42 gal/bbl = $2.86/gal Corn - $6/bu ÷ 2.8 gal/bu = $2.14/gal Woodchips - [($28/Green Ton) x (2 Dry tons/Green ton)] ÷ 80 gal/Dry ton = $0.70/gal Woodchips - [($28/Green Ton) x (2 Dry tons/Green ton)] ÷ 80 gal/Dry ton = $0.70/gal 2. Feedstock Cost Calculation Examples:  Pine Woodchips – Low cost relative to alternative fuel feedstocks 1. $28/GT (8+20) GT = Green Ton (8+20) = $8/ton to timberland owner + $20/ton to harvest, chip, deliver wood

24 Reserve Space for “Tracking” Contents Or Company Logo Company logo EFFICIENT USE OF PINE RESOURCE C2 Biofuels Cellulosic Ethanol Plant Biomass Power Gen Plant 1 Ton Pine Woodchips Ethanol Value = $77 Electricity (for export) Value = $8 Electricity Value = $34 = $28 Revenue = $85 Revenue = $85 Revenue = $34 Revenue = $34 Assumptions: Ethanol Price - $1.93/gal Electricity Price - $.06/kwh Electricity Price - $.06/kwh

25 Reserve Space for “Tracking” Contents Or Company Logo Company logo SUSTAINABILITY – THINK LOCAL  Grow, Convert, Consume Within Area Tapping Low Value Components of an Existing Timberland Industry Supply Liquid Fuel/Green Electricity Low Distribution Costs Low Water Usage, Marginal Ag Land, 30 Year Planting Cycle   Washington County Area ~ 60 Mile Radius 5.7 MM Acres 4 MM Acres in Timberland 2 MM Acres in Commercial Timberland 0.4 MM Acres to Sustainably Supply Commercial Cellulosic Ethanol Plant State of Georgia

26 Reserve Space for “Tracking” Contents Or Company Logo Company logo SEEDLINGS FOR PINE TIMBERLAND

27 Reserve Space for “Tracking” Contents Or Company Logo Company logo GROWTH IN GASOLINE – AFFECTED BY RECESSION & HIGH OIL PRICES

28 Reserve Space for “Tracking” Contents Or Company Logo Company logo WORLD ENERGY CONSUMPTION

29 Reserve Space for “Tracking” Contents Or Company Logo Company logo U.S. ENERGY CONSUMPTION

30 Reserve Space for “Tracking” Contents Or Company Logo Company logo EUROPE ENERGY CONSUMPTION

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32 Reserve Space for “Tracking” Contents Or Company Logo Company logo INDIA ENERGY CONSUMPTION