GS Caltex CorporationGS Caltex Corporation

August 2012

R&D Center

GS Caltex Corporation

KOREA

- 2 -

GS Caltex Overview GS Caltex Overview

50%Chevron

50%

CaltexCaltex

The first private oil company in Korea as a JV between GS Holdings & Chevron in 1967

Chairman & CEO : Dong-Soo Hur, Ph.D.

Sales revenue(2011) : USD 42 billion / Operating Profit(2011) : USD 1.8 billion

Implemented energy business diversification and vertical integration

LubricantsPetrochemicalsRefining & Marketing Upstream Subsidiaries & Affiliates

More than 10 companies

for Power Supply, City gas,& New & Renewable Business,

etc.

- 3 -

Introduction of R&D CenterIntroduction of R&D Center

• Biochemical materials

• Carbon fiber

• Thin-film Battery• Electrode material

for rechargeable batteries

• Carbon material for EDLC

• Hydrogen/fuel cell• Waste-to-energy• Charging

infrastructure for electric vehicles

• Solar Cell• Biofuel

• Petroleum product• Lubricant product • Petrochemical

product, etc.

GreenSolution

Petroleum & Petrochemicals

AdvancedMaterial

EnergyDevice

EnergySource

Vision : Leading the future with global outstanding technology

R&D pursuits at GS Caltex cover future-oriented new businesses such as new energy sources, high-efficiency energy devices and advanced materials as well as the traditional fields of oil refining and petrochemicals

Boasting state-of-the-art equipment and high-caliber R&D staff, the R&D Center explores new businesses through ongoing research to drive the future growth of GS Caltex

- 4 -

Bio Business and Projects

En

erg

y

Bio Business of GS CaltexBio Business of GS CaltexC

hem

ica

ls

Commercial production of biodiesel and investigation of a new bio-project by various

R&D activities

Biofuel for Diesel

- Mandatory use of biodiesel from 2012 in South Korea

- GS Bio, our subsidiary company currently producing biodiesel (Capa. : 100,000 ton/yr) at Yeosu refinery complex in South Korea

Biofuel for Gasoline

- Biobutanol process development in accordance with future governmental policy

Biopolymers

- Development of renewable or biodegradable polymers using bio-based intermediates pro-duction (Nylon 4, PTT, etc)

Value added chemicals

- 2,3-Butanediol production from biomass and development of its derivatives (e.g. butadi-ene)

- Finding new application of crude glycerin, a by-product from biodiesel production

Bio Strategy and ActivitiesBio Strategy and Activities

- 5 -

Bio-Strategy Support and Supplement for existing oil and petrochemical industry with bio-based energy and

products

Transformation of low-value by-products(or wastes) into high value added products

Pre-emptive response to government policy

Open Innovation Strategy for strong buildup of technical value chain and timely, effective development

Global network utilization including university, research institute, company, etc

Collaboration with feedstock suppliers, plant owners for renovation needs, and people who are interested in commercial co-production and joint marketing

Main Activities Core technologies development such as strain, fermentation, separation, and pretreatment

Integrated process optimization of core technologies

Process design and engineering for commercial scale up

GS Caltex develops proprietary bacteria and process for biobutanol production!!

Biobutanol is a valuable product as chemical and fuel Substitute for petroleum based butanol

An advanced biofuel that has many benefits over ethanol

As transport fuel High Energy Density

Low Water Solubility

Low Corrosive

Low Vapor Pressure

Issue of biobutanol commercialization Low final butanol concentration ( < 20 g/L)

Low butanol productivity ( < 0.5 g/L/hr) due to low cell density

Low yield of butanol due to hetero-fermentation (0.28~0.33 g/g)

High cost of butanol recovery from low-concentration yields

- 6 -

What is Biobutanol?What is Biobutanol?

Biobutanol

- 7 -

Biobutanol Development-MicrobeBiobutanol Development-Microbe

Strain Development Key success factor to increase production performance such as yield, titer, productivity, and selectiv-

ity

Eliminating co-production pathway of acetone and ethanol (approx. 40% of final products)

Various types of genetically modified strains with breakthrough performance secured

Ready for the commercial production of biobutanol

X

X

X

Glucose

Acetate

Acetone

Butyrate

Ethanol

Butanol

Ethanol

Functional pathway

Cofactor balanced

Co-products eliminated

High yield

High rate

High titer

Low byproducts

GS Caltex’s biocatalysts are microorganisms that have been designed to metabolize various sugars to produce biobutanol

Biobutanol Development-ProcessBiobutanol Development-Process

Process Development Continuous fermentation process using in-situ butanol recovery with high yield and productivity

Our technologies are at a world-leading level : high performance microbe, high productive bioreactor and separation process with low energy consumption

For energy saving, dehydration process is ideally combined with membrane and distillation

Integrated process and optimization could be developed by simulation techniques and engineering know-how

Basic design for commercial biobutanol plant is almost completed

Patent More than a dozen of patents and patent applications for the innovative biobutanol process

Fermentation

- 8 -

Separation System

Process Engineering

- 9 -

Biobutanol Pilot Plant Biobutanol Pilot Plant

Our Pilot Plant

Capacity : 30,000 L/yr or above

Fully integrated system : fermentation, butanol recovery,

water separation and products purification equipments

Location : R&D Center of GS Caltex, Daejeon-city, South

Korea

Funded from a Korea government

Lignocellulosic Biomass UtilizationLignocellulosic Biomass Utilization

- 10 -

Construction waste wood sorting facilities (SLC, Korea)

Development progress for utilizing 2nd generation biomass

Overcome the ethical concerns of food (1st generation biomass) as fuel

Reducing the production cost of biofuel and biochemical in the near future

Conducting a research on applications of various types of biomass to produce biomaterials and co-

working with SUDOKWON Landfill Site (capital region of Korea) Management Corp (waste wood)

Pretreatment Dilute acid, Base,

Enzyme, etc

Lignocellulosic materials

Solid sugar or Sugar syrup

Pretreatment issues for cellulosic biomass Considering a variety of pretreatment technologies such as acid,

base, and enzyme Reviewing process for low operating costs and capital expenses,

as well as high yield of hydrolysis

What is 2,3-Butanediol? • One of the constitutional isomers of butanediol, catalyzing to Butadiene and MEK (methyl ethyl ke-

tone)

• Produced by microbial fermentation from various biomass, including molasses, starch, lignocellulosic materials, and crude glycerol

Our status for 2,3-Butanediol• New robust genetically engineered strains, producing 2,3-Butanediol as similar levels of ethanol with

respect to titer, yield and productivity

• A novel and effective 2,3-Butanediol recovery process using solvent extraction

• A novel dehydrating process from 2,3-Butanediol to Butadiene and MEK using self-developed catalyst

2,3-Butanediol Development 2,3-Butanediol Development

- 11 -

Catalytic process

2,3-Butanediol

Fermentation

Biomass

MEK

O

1,3-Butadiene

2-Butene