1. Sustainable Alternative Jet Fuel Update Achievements / Next Steps Air Transport: What Route to Sustainability Third ICAO Pre-Assembly Conference Montreal, Canada Richard L. Altman Executive Director, Commercial Aviation Alternative Fuels Initiative (CAAFI) www.caafi.org ®

2. Alternative Sustainable Fuel Dynamic Dimensioning a new Sustainable Jet Fuel Dynamic Progress since 2009 ICAO Conference (Rio 11/09) What are the key remaining Needs? How can aviation cooperate globally to meet these needs?

3. Global Climate Reduce PM 2.5 Contain CO2 Growth Air Quality New Sustainable Dynamic Environment Need

4. Ongoing Fleet Renewal / Technology Development ATC/NowGen/ Operational Improvements Low Carbon Fuels Forecasted Emissions Growth Absent Reduction Measures Baseline CO 2 Emissions* 2050 Carbon Neutral Growth and Reduction Timeline *Notional View, Source Air Transport Association of America Carbon Neutral Growth Now Aviation’s Goal …… for FAA “Next Gen” Enviromental Team in U.S. …… by International Airlines (IATA) globally

5. F Improve Fuel Fraction Reduce Crack Spread Enhance Supply Security New Sustainable Economic Dynamic Need Jet < 10% Gasoline Diesel 5

6. Ref: Presentation AFRL (W. Harrison), 8/15/06 Bridging Economic “Valley of Death” is Goal 6

7. 2009 Aviation Achievements First Major Aviation Fuel Qualification in 20 Years passed – ASTM D7566! Four flight programs of Biofuels ICAO Accepted Best Practices - Risk management - CO2 LCA Analysis Principles - Implementation via CAAFI and other processes Four Commercial projects formed Winner 2010 Air Transport World Joseph S. Murphy Award for Industry Service!

8. 2010 Off to Excellent Start Hydrotreated Renewable Jet (HRJ/ Bio-SPK) tracking to 12/10 ASTM Approvals (Jan. - Present) White House recognition of Aviation as lead customer for Biofuels (Feb.) FAA/DESC “Single Fuel Buyer” Alliance (March) Greatly expanding the scope of potential supplier discussions (April, May) First Quantitative Jet Fuel Carbon LCA (PARTNER) leads aviation centric impact quantification (May) “Farm to Fly” with USDA formalized (July) “One Buyer” United Aviation Exhibit at Farnborough Air Show (July)

9. Sustainable Jet, Where Are We? Over 50 Fuel Companies part of CAAFI Four Existing “Off – Take” Agreements” Several Additional Negotiations. U.S. State and International Deployment Initiatives Growing 37% of Top 100 Biofuel Companies Predict 1 Billion Gallons of Renewable Jet by 2020….Biofuels Digest 9/10/10

10. Multiple Success Models (U.S. Example) Arizona California* Florida ** Georgia** Hawaii** Illinois Michigan** Mississippi* Ohio** New York** Pennsylvania** Oklahoma Tennessee** Texas** Washington* West Virginia Wisconsin * airline/producer agreements ** study proposals or Pilot Plants

11. Going Forward What is Needed? Where/How can Cooperation help?

12. To Achieve Aviation Goals….. Ensure that Multiple Feedstocks and Processes Are Matured/ Qualified Achieve “Feedstock Readiness” via disciplined systems risk management. Quantify Carbon Gains and Reduce Environmental/Sustainability Uncertainty Capitalize on Local Air Quality gains (not just CO2) Leverage success models to ensure unique focused “single customer” status

13. Blend Comp’s Criteria and Blend % Limits Annex 3 Other Adv Fuels or Processes Annex 2 50% Metabolic Blends Annex 1 50% Hydpross’d SPK Fuel Blends Fuel Produced to D7566 Can Be Designated as D1655 Fuel 5.1 Materials and Manufacture D1655 Table 1 D7566 Av Turbine Fuel Containing Syn HC’s Table 1 Blended Fuel Performance Properties ASTM D7566 Passed Sept 09 On track for HRJ passage 12/10 Jet Fuel Approval Process Working Well 13

14. Biomass Bio - OilsSyngas Ethanol / C2+ Alcohols 2nd Gen. Biofuels HRJ SynJet FAME SynJetMethanolFT SynJetHydrogen Shift Reaction Bio - Oil Extraction Hydrolysis / Fermentation Gasification Ligno-cellulosic Bio-Conversion Pyrolysis / Liquifaction Esterification Hydrotreatment Fischer Tropsch Process Methanol Synthesis All FeedStocks and Processes Required! FRJ PRJ CRJ HRJ Hydrotreated Renewable Jet FT Fischer Tropsch Process FRJ Fermentation Renewable Jet PRJ Pyrolysis Renewable Jet CRJ Catalytic Renewable Jet - Certified by end 2011 - Targets for 2013, 2014

15. Feedstock Readiness? Grow yield/acre in reduced time frame Improve growth in dry / high saline soil conditions Address invasive species concerns Working “Feedstock Readiness” System Methods with Agriculture

16. Aviation Specific Carbon LCA Available! Analysis Represents - Cumulative Totals - with Variability Bands Next Pathways considered next: - Sugar cane to Fermented Jet (FRJ) - Pyrolysis Oils to Blend Stock Data from Stratton et al. MIT/PARTNER (2010)

17. PM 2.5 Is Next Target Air Quality Regulations Increasing Capitalize on Air Quality (PM 2.5) Gains Large Gains with Alternatives

18. FEEDSTOCK SUPPLIERS FUEL PRODUCERS DISTRIBUTORS / FBO’S CAAFI Supply Chain Model Success Facilitate Maximum Opportunity “Flow-up” Focus and Communicate Requirements “Flow Down” Now 50+ suppliers /stakeholders Nearly 20 Airlines with agreements

19. Global Links To One Aviation Customer 2006 SWAFEA 2009 ABRABA2010

20. New Sustainable Fuel Dynamic Achievable Algae – U.S.Sugarcane - BrazilPyrolysis - Holland