POET’s Project LIBERTYUpdate and Review

Mark D. Stowers, Ph.D.October 2009

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95% of Our Liquid Transportation Fuels Are Derived from Oil…46% is sourced from OPEC.

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We can produce all of our liquid transportation fuels from domestic renewable sources…and meet our food and feed needs while creating a bioeconomy for biobased chemicals.

• Available Biomass– 300+ bu/ac corn– Billion tons of biomass

• Can be done in an environmentally sustainable manner

• Manufacturing Platform for Biochemicals

• Produce More Food/ Feed

• Project LIBERTY is an important part of this strategy.

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Presentation Outline

• Project Overview• Technology Development

– Feedstock Collection, Storage and Processing

– Cellulosic Ethanol Production• Market Development• Timeline and Milestones

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Project LIBERTY Goals & Objectives

Goal: A commercial-scale cellulosic ethanol biorefinery.

Objectives:• Integrate cellulosic ethanol technologies with existing corn-

based, dry mill ethanol technologies• Implement a sustainable biomass feedstock collection,

storage, and delivery system• Maximize alternative energy production and minimize

traditional energy usage• Enable replication at other existing or new biorefineries

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Ethanol GHG Reduction Over Gasoline

Source: BESS version 2008.3.0, Liska and Cassman, 2009 GREET, Wang et al, 2007.

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Project Overview

• Excellent progress being made

• Strategic partnership with DOE, State of Iowa

• Industry leading collaborations paying off

• Farmers engaged

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8

POET Biorefining – EmmetsburgEmmetsburg, Iowa

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Biomass Source for Cellulosic Ethanol

Source: National Renewable Energy Laboratoryhttp://www.nrel.gov/gis/biomass.html

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• Cobs– 12-25% of the above

ground weight of the corn stalk

– 2 times the bulk density of stover

– 16% more carbohydrate than stover alone

• Collection Options– Separate corn & cob

streams– Grain/cob co-mingled

Corn Cob Collection/Processing

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Collaborating Agriculture Equipment Manufacturers

Fantini

All logos and trademarks of agricultural equipment manufacturers or university logos are provided by their respective companies or institutions and are not owned by POET.

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Local Corn Producers Involvement

LIBERTY Field DayNovember 6, 2008

LIBERTY Blastoff Meeting, March 13, 2008

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Cob Harvests

2007-2008 A total of nearly 13,000 acres Iowa, South Dakota, and Texas. 13 equipment manufacturersthree cob harvest methods. Excellent farmer feedback. Feedstock analytics developed with (NREL). Economic data collected and evaluated.

2009 Planning for 25,000+ acres in Iowa & South Dakota.15 equipment manufacturers. Four cob harvest methods: Towable carts, CCM, Flex- harvester, Baling. First pre-commercial harvest . Agronomics. LIBERTY Field Day. Pre-Field Day activities. OEM specific demo days

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Cob Collection to Meet LIBERTY Goals

Year Systems Acres Tons Collected2009 14 20,000 12,0002010 100 100,000 70,0002011 400 280,000 210,0002012 450 315,000 252,000

770 BDT/day is equal to 246,400 BDT/year

for a 320 day operating year

The market for corncobs at LIBERTY alone:

- average farmer has 700 corn acres

- ~40% of the corn acres in a 35 mile radius

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POET Biomass, LLC

• Serve the farmers– Information source– Sustainable harvesting– Technology evaluation

• Manage the biomass supply chain– Sourcing– Procurement– Harvest– Logistics

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POET Research Center Scotland, South Dakota

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Process Technology Achievements

• December 2008 Lab scale performance in pilot facility

• January 2009 24/7 pilot plant operation

• February 2009 Process de-bugging

• March 2009 Lignin removal process completed

• April 2009 LIBERTY targets achieved at lab scale

• May 2009 Anaerobic digester installed• June 2009 >5 fold reduction in enzyme cost

Current total process cost – $1.00/gallongreater than corn based ethanol

• October 2009 LIBERTY design package preparation

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Cellulosic Ethanol Pilot Plant

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Cob Handling and Processing

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Pretreaters

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Fermentation

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Distillation & Evaporation

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Anaerobic Digester

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Preliminary LIBERTY Designs

• POET Biomass LLC co-located at POET Biorefining - Emmetsburg

• 2009 Cob Storage• LIBERTY Cob Storage and

Handling• Cellulosic Ethanol Process

Layout• Validation of Solid Fuel Boiler

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Blend Wall

REGULATORY CAP

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Market Development1) March 6, 2009 (Waiver)

Growth Energy has submitted a waiver to the EPA asking them to increase the allowable ethanol blend up to 15%.

2) March 27, 2009 (Flex Pump Tax Incentive)HERSETH SANDLIN LEGISLATION INCREASES AVAILABLITLY OF BIOFUELS; ENHANCES ALTERNATIVE ENERGY INFRASTRUCTURE -- Introduces Bipartisan Bill to Provide Incentives for Installing Biofuel Dispensers; Increases Demand for Clean, Domestic Sources of Fuel

3) March 30, 2009 (FFV Mandate)Bill: H.R. 1476 The Open Fuel Standard Act – Promoting Choice at the Pump for Every American

4) April 3, 2009 (Pipeline) HARKIN, THUNE, JOHNSON INTRODUCE BIPARTISAN LEGISLATION TO PROMOTE BIOFUEL PIPELINESWashington, D.C. – U.S. Senators Tom Harkin (D-IA), John Thune (R-SD) and Tim Johnson (D- SD) today introduced legislation that authorizes loan guarantees for the construction of renewable fuel pipeline projects.

5) May 26, 2009 (EPA RFS2 Proposed Rule)Growth Energy gives testimony (June 9) and prepares written responses to support RFS2 volumetric ethanol increases. Growth Energy files comments with EPA September 25, 2009.

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Summary

• Moving to commercial scale– Feedstock business development– Cellulosic ethanol technology

• Market development underway• Cellulosic ethanol is not another 5 years away

– It is here• Key factors for success

– E15 waiver approval– Availability of federal loan guarantees– Availability of capital

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