February 10, 2006Jeff Passmore, Executive Vice President

Iogen Corporation

Presentation to:Governor’s Ethanol Coalition & US EPA Environmental Meeting“Ethanol and the Environment”

2

The Leading Firm in Cellulose Ethanol Technology

Pioneer in making ethanol from “biomass” Active since late 1970s $120 million spent in development $30 million annual revenue in related businesses

A leading position 178 employees focused in this area $40 million demonstration plant… the world’s first Competitive commercial manufacturer of enzymes

Alliances:

$60m $21m $16m

3

Iogen’s cellulose ethanolprocess

4

Iogen’s Ottawa demo plant - The world’s most advanced cellulose ethanol facility

5

Demonstration Scale Prototype Cellulose Ethanol Plant

6

Demonstration Scale Prototype Cellulose Ethanol Plant

7

Demonstration Scale Prototype Cellulose Ethanol Plant

8

Demonstration Scale Prototype Cellulose Ethanol Plant

9

Steady production underway since April ‘04

10

First cellulose ethanol shipment - April 21, 2004

11

The 9,000 mile launch of cellulose fuelled E85 Yukon – Aug. 2004

12

Iogen cellulose ethanol fuels G8 leaders’ vehicles Gleneagles, Scotland, July 2005

13

Iogen cellulose ethanol fuels delegates’ flex fuel fleet at COP11, Montreal

November 28 – December 9, 2005

14

Straw and stover - Our oil Farmers often burn or plow-under the residue that could be used as

feedstock. In certain black soil zones, straw burning would be eliminated.

15

DOE: Cellulose ethanol could deliver 20% savings in gasoline consumption

16

“The purpose of this report is to determine whether the land resources of the United States are capable of producing a sustainable supply of biomass sufficient to displace 30% of the country’s present petroleum consumption (i.e. 60 billion gallons per year)…1 billion dry tons of biomass feedstock per year

The short answer to the question … is yes.”

DOE & USDA: Cellulose ethanol could displace over 30% of the country’s present petroleum consumption

Source: USDOE / USDA April 2005

17

States capable of supporting a cellulose ethanol industry

20

1119

7 1410

6

8

18

16

49

135

3 12

15

17

1

2

Iogen Cellulose Ethanol PlantPreliminary U.S. Feedstock Availability Assessment

Based on total wheat and barley straw averages for 1999/2000drawn within a 100 km radius (metric tonnes)

1. MN-ND South (2.3)

2. MN-ND-North (2.3)

3. NE Montana (2.2)

4. Whitman-Lata (2.2)

5. North Central Montana (2.2)

6. South Central Kansas (2.0)

7. Western KS -Eastern CO (1.9)

8. North Central OK (1.9)

9. Lincoln-Adams-Grant (WA) (1.8)

10. North Central Kansas (1.8)

11. NW Kansas -S. Central NE (1.8)

14. Hodgeman (1.4)

15. Central North Dakota (1.4)

16. OK Panhandle (KS,CO,OK,TX) (1.2)

17. North Central South Dakota (1.2)

18. SW Oklahoma (1.1)

19. North East Colorado (1.0)

20. Chase County (.67) (by request)

12. NW-ND (1.6)

13. Walla-Walla-

Umatilla (WA-OR) (1.5)

Not Estimated

<10,000

10,000 -24,999

25,000-49,999

50,000-99,999

100,000-149,999

150,000+

ACRES

Reference: Superimposed on the USDA Map - All Wheat 1999 - Harvested Acres by County created by USDA National Agricultural Statistics Service.

29 J

anua

ry 0

2n

Iogen Cellulose Ethanol PlantPreliminary U.S. Feedstock Availability Assessment

Based on total corn stover averages for 1999/2000drawn within a 100 km radius (metric tonnes)

Reference: Superimposed on the USDA Map - All Corn for Grain 1999 - Harvested Acres by County created by USDA National Agricultural Statistics Service.

Not Estimated

<10,000

10,000 -24,999

25,000-49,999

50,000-99,999

100,000-149,999

150,000+

ACRES

7 4

10

13

8

11 6 3

2 1 9

15

14

51216

17

18

19

20

21

22 2324

1. E. Central IL - W. Central IN (11.7)

2. W. Central IL (11.0)

3. North IL (10.9)

4. N. Central IA – S.Central MN (9.6)

5. S. Eastern NE (8.9)

6. East Central IA (8.6)

7. NW Iowa – SW MN (8.4)

8. Central MN (8.3)

9. Central Indiana (7.8)

10. West Central Iowa (7.7)

11. S. Central Iowa (7.5)

12. S. Central NE (6.6)

13. NE Iowa – SE MN (6.3)

14. NE Nebraska (5.9)

15. South Illinois (3.6)

16. SW NE – Chase County (3.4)

17. OK Panhandle (KS,CO,OK,TX) (2.9)

18. NW KS – S. West NE (2.5)

19. MN-ND South (2.5)

20. N. Central SD (2.3)

21. NE Colorado (2.2)

22. W. Kansas – Eastern CO (1.9)

23. Hodgeman (1.6)

24. S. Central KS (.84)

29 J

anua

ry 0

2

- - supporting E4 to E7supporting E4 to E7

21

Benefits to energy security

Cellulose ethanol can have a significant impact

Over a billion tons of agriculture and forestry residue plus dedicated crop material is available in the US, according to recent DOE/USDA estimates

Using Iogen yields, a billion tons of cellulosic material equates to the production of ~75 billion gallons of cellulose ethanol or, on an energy basis, over 40% of the US current gasoline consumption

22

Benefits to the environment DOE: Ethanol made from cellulose has

virtually no net CO2 emissions

Gasoline Ethanol from Corn Ethanol from Cellulose

23

• Puts $ in farmer’s pockets

• Keeps jobs on the farm and in the community

• Represents a living example of sustainable development • Eliminates the need for straw burning (certain soil zones)

Benefits to agriculture

24

Commercial plant rollout: What are the site evaluation criteria?

Assess commercial/country risk using factors such as:Feedstocks

Type, availability, cost, ease of collection

Government Policy Tax situation, fuel mandates, financial incentives

Infrastructure Issues Water availability/cost, road network, rail, power and natural gas price

Investment Climate Tax rates, industrial development incentives, financing options

Ethanol & Co-Product Sales Off-take customers, refinery locations, market proximity

25

2007 Construction start targeted Pursuing a disciplined Front End

Development Process Staged commercial and technical

milestones

Working closely with Shell

Straw procurement underway 320 contracts (382,000 t/yr) in place

27

A commercial biorefinery will look like…

Project Developer: Iogen Shell Global Solutions

Lead Equity Investors: Royal Dutch/Shell Iogen Energy

Lead Candidate Locations: Idaho Saskatchewan Alberta

• Project Data:• $350 M project cost• ~ 500,000 t/yr feedstock • ~ 30 million gal/yr production• Associated power plant and

enzyme plant

28

The US Energy Policy Act of 2005 aggressively pursues cellulose ethanol

• 7.5 billion gallons of renewable fuel by 2012

• A $1 billion loan guarantee program• 80% non-recourse loan guarantee for first four plants up to max of• $250 mm/plant

• A 2.5:1 trading ratio for cellulose ethanol

• 250 million gallon minimum annual required volume of cellulose ethanol beginning in 2013

29

The President’s ’06 State of the Union Address put wind in the sails of the ’05 Energy Policy Act

“Keeping America competitive requires affordable energy. Here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world.

We will also fund additional research in cutting-edge methods of producing ethanol, not just from corn but from wood chips, stalks, or switch grass.

Our goal is to make this new kind of ethanol practical and competitive within six years. Breakthroughs on this and other new technologies will help us reach another great goal: to replace more than 75 percent of our oil imports from the Middle East by 2025.”

- President Bush, Jan. 31 State of the Union Address