1. Aviation Biofuels Barriers to Adoption and Value Chain Risk Mitigation © 2010 UOP LLC. All rights reserved. UOP 5191-01 Advanced Biofuels Leadership Conference 21 April 2011 Jim Rekoske, VP & GM Honeywell’s UOP

2. Value Chain in Biofuel Production  Long, fractured value chain in several distinct industries:  Rural real estate / farming  Biotechnology  Oleo Chemicals  Refining and Chemicals  Fuels Marketing Land Owners Energy Crop Growth & Development Oil Production & Pre-purification Conversion Distribution to Market Many stakeholders = added transactions costs General Observations

3. Value Chain in Biofuel Production Land Owners Energy Crop Growth & Development Oil Production & Pre-purification Conversion Distribution to Market Sustainability, Energy Security, Rural Development Competing uses for land, other resources; aversion to “new”, production and scheduling risks Technical risks, capital access, deployment between food / fuel Competitive equipment uses, technology need for fuels Technology risks – will it work Market demand at pricing which permits value creation for the chain

4. Biofuel and Fossil Fuel Comparison Land Owners Energy Crop Growth & Development Oil Production & Pre-purification Conversion Distribution to Market Risk throughout the value chain in biofuels Mineral Rights Owners Exploration & Production Logistics / Transport Conversion Distribution to Market Highly Integrated Majors Outcomes Risk Profile Outcomes Risk Profile

5. Barriers and Tools to Manage Risks  Feedstock –Can I acquire sufficient feed at manageable price while limiting commodity risk?  Technology –Does the technology work as advertised?  Market –What combination of price and volume will the market demand?  Financial –Can a sufficient financial return be made available to compensate the risks?  Partnerships  Demonstrations  Policy stability  “Market Leader”  Advantaged Pricing  Financial risk mitigation, performance guarantees, loan guarantees, stable partners / customers Barriers Tools Most elements in place – environment improving

6. Valero + Darling = Diamond Green Diesel LLC  Announced in January 2011, Diamond Green Diesel, LLC plans to construct a 10,000 BPSD Ecofining Unit in the US

7. Backup Material

8. Honeywell Honeywell Overview $33 B Broad and Diverse Businesses, Technologies and Products 38% 16% 32% 14% Aerospace Specialty Materials Automation and Control Solutions Transportation and Power Systems

9. UOP Overview Since 2005, a Honeywell Company – part of Specialty Materials business unit Leading supplier and licensor of processing technology, catalysts, adsorbents, process plants, and technical services to the petroleum refining, petrochemical, and gas processing industries. UOP Technology Furnishes: 60% of the world’s gasoline; 85% of the world’s biodegradable detergents; 60% of the world’s para-xylene. 3400 employees worldwide. Strong relationships with leading refining and petrochemical customers worldwide. Biofuels: Next in a Series of Solutions 2003 National Medal of Technology Recipient RefiningGas ProcessingPetrochemicalsRenewable Energy

10. “Other” Oils: Camelina, Jatropha Lignocellulosic Biomass, Algal Oils Second Generation Oxygenated Biofuels BiodieselEthanol Hydrocarbon Biofuels JetDieselGasoline First Generation Natural Oils From Vegetables and Greases Fuel & Power Fuel & Power Renewable Energy Honeywell Renewable Fuels Vision  Building on 96 years of petrochemical industry technology and expertise  Produce real “drop-in” fuels instead of fuel additives/blends  Leverage existing refining, transportation, energy, biomass handling infrastructure to lower capital costs, minimize value chain disruptions, and reduce investment risk  Focus on path toward second generation feed stocks and chemicals

11. Sustainable Technologies – Feedstock Flexible / 2 nd Generation UOP/Eni Ecofining TM Process UOP/Eni Ecofining TM Process Natural Oil/Fats Renewable Jet Process Renewable Jet Process RTP ® (Pyrolysis) RTP ® (Pyrolysis) Hydrogen Natural Oil/Fats Hydrogen Biomass Honeywell Green Diesel TM Honeywell Green Jet TM Green Power / Fuel Oil (now) Green Fuels (2013) Upgrading Process Envergent Technologies – UOP/Ensyn JV Green Jet (if req) Green Diesel Gasification Separation FT Synthesis Conversion Rentech / UOP Alliance Green Fuels UOP Renewable Fuel Technologies

12. Natural Oils v. Diesel and Jet Fuel 60 40050065010001300 Boiling Point, °F Gasoline Diesel No. 2 Lubricating Oils Asphalt Jet 300 Heavy Fuel OilsGases Crude Oil 1 6 81015 20 4371 Number of Carbon Atoms Natural Fats and Oils  Nature stores excess energy in triglycerides – fats and oils  Triglycerides have chemical structures similar to diesel and jet fuel − Less branched, but similar structrure

13. Technology that produces a fully fungible hydrocarbon product Uses existing refining infrastructure, can be transported via pipeline, and can be used in existing automotive fleet Two units licensed in Europe with first commercial start-up in 2010 Excellent blending component, allowing refiners to expand diesel pool by mixing in “bottoms” Can be used as an approach to increase refinery diesel output PetrodieselBiodiesel Green Diesel NOx Baseline+10 Baseline or better Cetane 40-5550-6575-90 Cold Flow Properties Baseline Needs Additives Baseline or better Oxidative Stability Baseline Needs Additives Baseline or better Natural Oil/ Grease + Hydrogen Green Diesel + nC3 & Naphtha + Glycerol Biodiesel (FAME) Natural Oil/ Grease + Methanol Performance Comparison Process Comparison vs. Biodiesel Ecofing Process Chemistry and Flow Scheme X X UOP/ENI Ecofining™ Green Diesel

14.  Initially a DARPA-funded project to develop process technology to produce military jet fuel (JP- 8) from renewable sources  Targets maximum Green Jet production  Green Jet Fuel can meet all the key properties of petroleum derived aviation fuel, flash point, cold temperature performance, stability  Certification of Green Jet as a 50% blending component in progress Deoxygenating/ Isomerization Deoxygenating/ Isomerization Built on UOP Refining Technology Green Diesel Green Diesel Green Jet Green Jet Natural Oil/ Grease DARPA Project Partners Deoxygenating/ Selective Cracking/ Isomerization Deoxygenating/ Selective Cracking/ Isomerization Natural Oil/ Grease UOP Renewable Jet Process

15. Completed Flight Demonstrations Feedstock: Jatropha oil Feedstock: Jatropha and algal oil Feedstock: Camelina, Jatropha and algal oil Feedstock: Camelina Feedstock: Jatropha oil

16. Royal Netherlands Air Force 16 June 2010 Gilz Rijen Air Base Netherlands Recent UOP Green Fuel Demonstrations USAF A-10C 25 March 2010 Eglin AFB US Navy Green Hornet 22 April 2010 Pax River NATC USAF C-17 27 August 2010 Edwards AFB US Navy RCB-X 22 October 2010 Naval Station Norfolk F-15 III Strike Eagle 25 October 2010 Eglin AFB Deliveries exceeding 400k gallons in 2010

17. UOP Alliance with Rentech Gasification & Fischer-Tropsch technologies to convert biomass to jet, diesel and naphtha Utilize available forest and agricultural waste to create valuable fuels Biomass to Liquid Biofuels through FT Rentech Rialto Project 640 bbls / day diesel 35 MW electricity UOP licensed technology Rentech Rialto Project 640 bbls / day diesel 35 MW electricity UOP licensed technology

18. Pyrolysis Oil Solid Biomass Commercially Proven Patented Technology ENV 5233-04  510°C, <2 seconds  Biomass converted to liquid pyrolysis oil  Fast fluidized bed, sand as heat carrier  High yields; >70 wt% liquid on woody biomass Rapid Thermal Processing (RTP™)