1. From Biofuels to the Bio-Economy Next Steps for Canada EPAC Billings, MT June 25, 2012

2. Consulate General of Canada Rocky Mountain Region Territory (5 states) Montana Wyoming Colorado Utah New Mexico Territory (5 states) Montana Wyoming Colorado Utah New Mexico MT WY CO UT Political Section: Monitor political & economic events Consular Section: Assist Canadians Trade Section: Promote cross-border trade and investment Political Section: Monitor political & economic events Consular Section: Assist Canadians Trade Section: Promote cross-border trade and investment NM Denver 2

3. Canada Resource Rich:  Agriculture S. Ontario, Quebec lowlands, Prairies  Minerals Gold, Potash, Iron Ore, Copper, Nickel, etc. Production across all Canada  Forestry Production across all Canada

4. Canadian Ethanol Development – 1980s &’90s  Intent: Introduce cleaner/less polluting fuels  1980s > Wheat-based ethanol production in Prairies 1998 > Corn-based ethanol production begins in Ontario (presently - 60% of Canadian production is corn- based)  Ethanol slower to ‘take-off’ in Canada than US  Government emphasis on environmental (GHG) vs energy security (GHGs, Kyoto, Sustainability)  Mandates introduced in 2010 (other programs hadn’t adequate market penetration or reductions in GHGs)

5. Canadian Renewable Fuels Mandates :  Nationwide Renewable Fuels Content Mandate: Gasoline – 5% renewable content (ethanol) - December 2010 Diesel / Heating Oil – 2% renewable content - July 2011  Provincial Mandates: Ethanol %Biodiesel % Manitoba 8.5 2.0 Ontario 5.0 2.0 Saskatchewan 7.5 2.0 British Columbia 5.0 2.0 Quebec 5.0 (target) 2.0 Alberta 5.0 2.0

6. Results:  Rising Ethanol Production 1.9 billion litres/yr (2011) 12% yr/yr increase 80% of ethanol production from plants built after 2005 (legislation introduced in ’06)  US imports cover the shortfall Canada largest importer of US ethanol Blend wall issues

7. Rise of 2 nd Generation Biofuels  Cellulosic production: ethanol from fuel additive to fuel alternative  Decline of Canadian forestry industry Rural forestry communities declining  Long-term ethanol food crop (corn/wheat) constraints

8. Canadian Renewable Fuels Strategy  Intersection of Canada’s Natural Resources, Infrastructure and People Strengths Agriculture Forestry Oil/Gas Intellectual know-how  Result: The Bio-economy

9. Bio-Chemical Cluster Development Drayton Valley / Ft Saskatchwan   Sarnia   Montreal

10. Sarnia (Ontario)  One of North America’s five principal petrochemical complexes  Large, existing infrastructure serving Central Canada and US Great Lakes/Midwest  Intersection of Forestry (pulp/paper), Agriculture, Petro-chemical Infrastructure and Human Capital  Focus on sustainability Success Stories: BioAmber, Rentech, Gevo (Lanxess), Zeachem (?)

11. Drayton Valley/Ft Saskatchewan (Alberta)  One of North America’s five principal petrochemical complexes  Intersection of Agriculture, Forestry (pulp/paper), Petro-chemical Infrastructure + Human Capital  Proximity to fossil fuel feedstocks  Local Champions: Biobased-chemical programs Biorefining Conversions Network Alberta Innovates BioSolutions Success Stories: Mascoma, Weyerhaeuser, CLIB, Otoka Energy

12. BioEnergy Canada: Progression Agriculture  Ethanol  Forestry  Biobased Chemicals + Fuels  Bio-Economy Canada

13. More Information: Presentations/Publications:  Bioproducts in Canada: Business Case 2012 (www.investincanada.ca)www.investincanada.ca  Ethanol’s Contribution to Canada’s Transportation Sector (www.growthenergy.org)www.growthenergy.org  The Greening of Sarnia-Lambton (www.suschemalliance.ca)www.suschemalliance.ca Canadian Biofuels Conferences – 2012/13  Canadian Renewable Fuels Summit Ottawa (December 3-5, 2012)  World Congress on Industrial Biotechnology and Bioprocessing Montreal (June 16-19, 2013)  Biorefining Conversions Network Annual Strategic Retreat Banff, AB (November 2012)  Sustainable Chemistry Alliance Annual General Meeting Sarnia, ON (June 2013)

14. Stan Pence Consulate General of Canada – Denver 303.626.0663 stan.pence@international.gc.ca stan.pence@international.gc.ca