1. BioProducts & BioEnergy Sector Lignocellulose Techno-Business Meeting UBC Video-Conference Bob Ingratta Jan. 13, 2009

2. Discussion Items 1.Lignocellulose Short Term Actions from Executive Summary Paper 2.Input on Actions & Priorities 3.What is Right, Wrong, Missing? 4.Identify Technology gaps; Factors to stimulate growth; Priority Co-Products

3. Platform ChemicalPotential DerivativesApplicationsMarket Size Lactic AcidPolylactidePLA biodegradable PolymerCurrently 140KT (capacity) But could be 3.5MT by 2020 Ethyl lactateSolventCurrently 20KT could be 100KT as a green solvent Acrylic AcidAcrylates, coatings, superabsorbent polymers, adhesives Currently 2.5MT Propylene GlycolAntifreeze, polyesters, detergentsCurrently 1.3MT SorbitolPolyetherpolyolsPolyurethanes~2MT Succinic Acid1,4 - ButanediolSolvent, coatings, resins~0.9MT TetrahydrofuranSolvent,speciality polymer~0.5MT 2- PyrrolidinoneSolvent,plasticizer, speciality polymer 20-30KT Levulinic AcidDiphenolic acidPossible Bisphenol – Substitute in polycarbonates Bisphenol A ~3MT market Examples of Platform Chemicals and their Derivatives

4. Lignocellulose based Ethanol and Chemicals Key Strategic Issues Key Strategic Issue Platforms to address: 1.Feedstock (BioMass) availability – access, economical and predictable supply. 2.BioConversion and BioRefinery efficiencies – unlock the energy both pre-treatment and catalysis. 3.Market Receptors – create demand and enable infrastructure distribution.

5. Lignocellulose based Ethanol and Chemicals Proposed Short-term Actions for Discussion Feedstock (BioMass) Strategic Platform: 1.Develop analytical tools for characterizing composition of biomass and intermediate co- products –Do we need an incubator lab system? 2.Cost-efficient systems for transport or on-site processing. – Portable plant and concentrate energy 3.Identify high value co-products & systems for integrated biorefinery to offset feedstock costs

6. Lignocellulose based Ethanol and Chemicals Proposed Short-term Actions for Discussion BioConversion Strategic Platform: 1.Optimize enzyme technology for hydrolysis. 2.Pre-treatment/separation technologies 3.BioRefinery systems to obtain high value streams. 4.C5 fermentation technology improvements. 5.Pulp Mill Extension –shared learnings systems. 6.Enable Capacity by funding technology scale-up and pilot plant tests. 7.Define Priority co-products value targets & roadmap of potential uses.

7. Lignocellulose based Ethanol and Chemicals Proposed Short-term Actions for Discussion Market Receptor Strategic Platform: 1.Identify and Enable Compatibility of bio-based chemicals within existing commercial processes. 2.Develop eco-clusters with networking services. 3.Incentives for infrastructure development. Energy Crop conversion; BioFleet program; Co-Product Use 4.Policy needs to enable Canada competitiveness & Risk mitigation for investment confidence

8. Summary of Short Term Actions 1.Beginning of a New Path to Success 2.Let’s Discuss & Define Actions that will meet your needs. 3.Goal is to help SMEs innovate & grow 4.We believe this is a Process for Support and not just a single meeting.