1. Renewable Aviation Fuels Carbon War Room April 2013 Note: This Presentation is designed for optimal use on screen rather than print-out. If you would like a printable version, please contact shunt@carbonwarroom.comshunt@carbonwarroom.com

2. Carbon War Room 2 The Market Policy Technology not enough not the bottleneck CWR: Dismantling Market Barriers Capital

3. Carbon War Room 3 Source: Spring Ventures LLC, Bloomberg NEF

4. Biofuel Market Context: 2011 International Energy Agency Biofuel Roadmap and Production Forecast Global biofuel supply grows from 2.5 EJ today to 32 EJ in 2050 Biofuels share of total transport fuel increases from 2% today, to 27% in 2050 In the longer-term, diesel/kerosene- type biofuels are particularly important to decarbonise heavy transport modes Large-scale deployment of advanced biofuels will be vital to meet the roadmap targets $11 trillion in investment in biofuels would be needed between 2011 and 2050 Final energy (EJ)

5. The Aviation Industry 5 650million tons total CO2e emissions in 2010 Forecast to reach 1100 by 2020 on Business-as-Usual

6. Emissions Reductions 6 Plane & engine efficiency, satellite based navigation, and other advancements are critical. Renewable Aviation Fuels can get to GigaTon scale by catalyzing the switch to renewables for the entire “barrel” Source: Kar, Rahul (2010). Dynamics of Implementation of Mitigating Measures to Reduce CO 2 Emissions from Commercial Aviation. S.M. thesis: Massachusetts Institute of Technology. Renewable jet fuels are essential to meet emission reduction targets.

7. Advanced Biofuel Feedstock Overview Jatropha is a perennial tree, which produces oil-bearing seeds and is capable of growing on marginal land Pongamia is a leguminous oilseed-producing tree with naturally high oil yields and can be grown in marginal conditions Halophytes are salt tolerant plants capable of growing on coastal deserts and can be irrigated with full strength seawater Aquatic microorganisms capable of producing high oil yields - Autotrophic algae are grown in open ponds or photo-bioreactors - Heterotrophic algae are grown in dark fermentation tanks Aquatic, photosynthetic microorganisms capable of producing high volumes of biomass Non-food cellulosic biomass can include agriculture residues, timber residues, municipal solid waste, or dedicated biomass energy crops such as macroalgae Camelina is an annual oilseed-producing plant, which is used as a rotational crop in dry-wheat farming regions Jatropha Camelina Pongamia Halophytes Algae Cyano- bacteria Cellulosic Biomass Industrial Gasses Emissions from steel mills, coal-fired power plants, and other industrial facilities.

8. Natural Oils Jatropha and Other Perennial Oilseeds CamelinaHalophytes Aquatic Micro- Organisms (AMOs) Hydrolysis of Biomass to Produce Sugars Biomass Hydrotreating Thermochemical Conversion of Biomass Pyrolysis Oil Gasification to Fischer- Tröpsch Fermentation of Sugars through GMOs to Produce Alcohols, Oils or Hydrocarbons Further Refining to Produce Finished Fuels Liquid- Phase Catalytic Processing Advanced Biofuel Conversion Pathways Food-based crops (corn, sugarcane) Dedicated Energy Crops Residues/Waste streams Source: FullerSmith LLC

9. Ethanol, Butanol, Lactic Acid, Chemical Monomers Fermentable or “free” sugars Overview of Biomass Conversion Pathways : Highly complex compared to natural oils Cellulose Hemi- cellulose Lignin Physiochemical, chemical, biological, or electrical pre-treatment FermentationDilute acid or amylase pretreatment Enzymatic or chemical hydrolysis Recycled Power Combustion Bio-gasses Bio-char Bio-oils Pyrolysis Co- products Deoxygenated hydrocarbons Hydrogenation, cracking Gasoline, Diesel, Jet Fuel, Organic Chemicals Isomerization Dirty Syngas Gasification Clean Syngas Gas Clean-up Alcohol Oligomer- ization Alcohols Alcohol Synthesis Fischer-Tropsch Synthesis Oxygenated Hydrocarbons Liquid-phase catalytic Processing Starch Lignocellulosic Biomass Alcohol Oligomerization Lipids, hydrocarbon precursors, and drop- in fuels GMOs Source: FullerSmith LLC

10. Context 10 Fuel industries are extremely capital intensive Economic crash has delayed advanced fuel industry commercialization Hard to get project finance Investor interest flagged Stock values down – starting to stabilize Energy markets are hugely distorted – not a level playing field! > 250 types of fossil fuel support in just the 24 OECD countries (http://www.oecd.org/site/tadffss/)http://www.oecd.org/site/tadffss/ IMF: Energy Subsidy Reform: Lessons and Implications Fuel industries are extremely capital intensive Economic crash has delayed advanced fuel industry commercialization Hard to get project finance Investor interest flagged Stock values down – starting to stabilize Energy markets are hugely distorted – not a level playing field! > 250 types of fossil fuel support in just the 24 OECD countries (http://www.oecd.org/site/tadffss/)http://www.oecd.org/site/tadffss/ IMF: Energy Subsidy Reform: Lessons and Implications

11. The Barriers 11 GLOBAL, COMMERCIAL SCALE, ADVANCED, RENEWABLE FUEL INDUSTRY Technical Certification

12. The Barriers: Information 12 Most companies & many technologies are early stage Lack of uniform metrics and side-by-side analysis Lack of Understanding of options, roles, risks, commercialization pathways, and potential to scale  Capital requirements  Technology maturity  Environmental / Carbon Impacts  Feedstock Availability & Costs Better information is required to accelerate the formation of the Renewable Aviation Fuel Market

13. RenewableJetFuels.org 13

14. The Barriers: Sustainability 14

15. The Barriers: Finance: Valley of Death 15