Covering Key Aspects  Technical  Environmental  Economic August 8, 2008 EthanolRecycle PaperRecycle

Topics  Ethanol  Energy  Location  Time line  Opportunity

Growing Demand For Ethanol New US Facilities 500 Million gallons in construction or planned

Corn Ethanol Drawbacks  Cropland Intensive  Impacts Food Supply  Higher Water Pollution Potential  Large Fossil Fuel Input  Low Net Energy Yield

Population = Paper Location, Location, Location RFA, 4/3/07 Source: Renewable Fuels Association, 8/1/07 Paper More Paper Even More Paper

Papernol Advantages  Converts Waste Stream to Revenue Stream  Resource from Local Community  Improves Local Economy  Minimal Transportation/Fuel Inputs  No Cropland Requirement  Fills in Gaps in Bio-Ethanol Map

Fermentation: Convert Glucose into Ethanol Distillation: Separate Ethanol from water Acid Hydrolysis: Dilute acid to generate glucose from cellulose Papernol -- Process Paper Sugar Ethanol CO 2 Molecular Sieve Pure Ethanol Preparation and Hydrolysis FermentationPurification

Papernol Outlook  Significant Potential in Ethanol Market  Economically Competitive with Corn & Switchgrass  Net Energy Positive 250% energy return  A Renewable, Non-Food Ethanol Source

Adding Stream Value Papernol More than 2:1 Stream Value 1 Ton of Paper at $150 ½ ton of CO 2 at $0.10 per lb ($100) 100 Gallons of Ethanol at $3 per gal ($300)

Time Line Lab Proof of Concept Medium Small Demonstration Pilot Integrated Processing Full Scale Production Lab Scale: 2008 – Proof of Concept Limited Testing Completed at UTC Engineering Labs Medium Scale: Tested Using UTC Engineering Labs: Detail Mass Balance Energy Balances Simulation Preliminary Economic Analysis Pilot Scale: Will Process UTC Recycle Paper 1 ton/day Location: Chickamauga Site Caruastar Plant Full Economic Analysis Capital Investment ROI Local Facility 50 ton/day Estimated Total Project Budget $3-5 million

Can Intech and UTC Papernol Work Together ? Opportunity