1 Feedstock Cost and Demonstration Units renewable chemicals and fuels Rick Wilson Chief Executive Officer

Confidential 2  Cellulosic n-butanol via biomass hydrolysis and fermentation  Biocatalyst is non-GMO  Large and existing n-butanol Markets  Platform for broad range of other chemicals  Dramatic cost advantage vs. petroleum with low-cost feedstock  Capital light enabled by bioreactor technology & co-location model  Co-location with biomass power, pellet plants, sugar mills, & pulp mills  Commercial performance metrics achieved at pilot  470,000 GPY Demonstration facility with American Process Cobalt Snapshot

Confidential 3 ~ Eighty Percent (80%) cost advantage 1. Importance of Feedstock Cost - Price of Biomass

Confidential 4 Upgrading Value 80% Theoretical Conversion Kraft Pulp

Confidential 5 Importance of Low Feedstock Cost  Higher margins, better returns  Produce high value products and returns improve even more!  Smaller facilities possible  Lower financing risk with high returns  Projects are built – climb down the learning curve  Corn ETOH, double industry capacity, 20% cost reduction

Confidential 6 Timeline for Deployment Following technology scale-up best practice guidelinesLab Bench 16X Pilot Pilot 220X Commercial 10 – 25 MGPY 20-50X Demo Plant Demo Plant Alpena, MI with API 470,000 GPY 150X

Confidential 7 Alpena Demonstration Facility – Next Step after Pilot  Cellulosic ETOH Demo to include butanol  Alpena, MI, at Decorative Panels, INC facility  470,000 GPY n-butanol  Extracts sugars from wood  Conditions, ferments, produces finished product  De-risks technology 2 years available  Expansion or Demo other products

Confidential 8 2. Demonstration Units and Scale-up Best Practice 1. Pilot Plant. Typically 5000 – 20,000 GPY, two generations. Test unit operations semi-integrated. 2 Year program 2. Demo Plant. Typically 250,000 GPY+. 100X scale-up, 6 month operations “after it works” to prove reliability and reproducibility –Test large scale unit operations and fix problems –Troubleshoot integrated performance –Organizational development 3. Commercial Plant. Typically 20-50X Scale-up. Also seen as risky by investors

Confidential 9 Accelerated Scale-up? Fact. Fewer than 20% of New Technology Scale-ups Deliver on Promises  Problems not identified and fixed at demo, get fixed at commercial where costs are 20-50X greater  Or you run out of money and the company fails The Biggest Business Risk to Emerging Renewable Companies is Technology Failure Due to Scale-up Short Cuts

Confidential 10 Summary  Cellulosic feedstock will enable a highly-profitable renewable chemicals industry  Sugar and Corn only make sense for specialty and some commodity chemicals  Sugar and Corn will never enable economic production of diesel or gasoline replacements, with the exception of ethanol.  Building an industry based on renewable chemicals first, and then when costs drop, fuels, is the route to creating jobs

11 Feedstock Cost and Demonstration Units renewable chemicals and fuels Rick Wilson Chief Executive Officer