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Advances in Biorefiningfor the Production of Fuels

and Chemicals

Tim Eggeman, Ph.D., P.E.Agricultural Biotechnology International Conference

Saskatoon, Saskatchewan September 13, 2010

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Company History• Founded in 2002

• Series A ($6MM) in 2006– Led by MDV and Firelake Capital– Proved technology at lab scale

• Series B ($34MM) in 2008– Co-led by Globespan and PrairieGold– Valero Energy Corporation – Money raised for demo plant

• Current Status– Demo construction is underway– US DOE grant $25MM– Leveraging strategics for 1st commercial

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ZeaChem TechnologyCONFIDENTIAL

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• Advanced cellulosic― Best of bio & thermo chemical processes

― Hybrid cellulosic technology – “Prius”

― Highest theoretical yield 160 gal/BDT

• Proven components & processes― Natural organism; no enzymes

― Ultra-low CO2 net impact

• Product platform flexibility― Biofuels (ethanol, butanol)

― Bio-based chemicals (ethyl acetate, propylene)

ThermoChemical

BioChemical

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Biomass:• Hardwood• Softwood• Switch Grass• Corn Stover

ZeaChem C2 Platform

HydrogenResidue to Gasifier

AcetateEsterSales

EthanolSales

Ethyl Acetate

Sugars Acetic Acid

ZeaChem’s Core Technology

AceticAcidSales

Ethanol

EthyleneSales

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Theoretical Yields

Cellulose, 40

HemicelluloseSugars, 18

HemicelluloseAcetate, 2

Lignin, 30

Other, 10

Biochemical OnlyYield: 78-112 gal(neat)/BDT

39-56

Biochemical Processing

100

Balance61-44

Thermochemical OnlyYield: 112 gal(neat)/BDT

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100

Balance30

Mixed Alcohol Synthesis

ThermochemicalProcessing

Balance14

Syngas70

Values in Italics Indicate Chemical Energy Flow Normalized to Biomass = 100

Yield assumes 200 gal(neat)/BDT for 100% Chemical Efficiency

Syngas FermentationYield: 112 gal(neat)/BDT

56

100

ThermochemicalProcessing

BiochemicalProcessing

Balance30

Balance14

Syngas70

ZeaChem HybridYield: 156 gal(neat)/BDT

78

100

60 40

ThermochemicalProcessing

Biochemical Processing

Hydrogenolysis

Balance4

Residue8

Balance18

Ester52

H2

30

5

6

$/g

al

Yield Drives Economics

Ethanol Price

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About GreenWood Resources

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A Resource That Lasts Forever™

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• ZeaChem process is feedstock agnostic– Hardwood, softwood, grasses, ag residues

• Dedicated sustainable energy crops– Geographic diversity, “Grow where we go”

• Contract with GreenWood Resources – Supply high yield hybrid poplar feedstock

• Benefits– Efficient harvesting, cost effective– “Store on the stump”– Integrate energy crop + biorefinery =

minimal footprint, low CO2

Dedicated Energy Farms

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Efficient Harvesting

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ZeaChem Technology Deployment

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Lab Pilot Demo

Milestones:• Proven at lab scale• Raised $6MM for pilot

Milestones:• Proven at non-integrated pilot scale • Successfully fermented mixed sugars and hydrolyzates• Raised $34MM to support demo

Milestones:• Construction announced 11/09• 10,000x fermentation scale-up met and exceeded targets• Completed downstream conversion: glacial acetic acid, commercial grade ethyl acetate, ethanol

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Hydrolyzate Fermentation

0

10

20

30

40

50

60

70

0 50 100 150Time, Hr

Ace

tic A

cid,

g/l

Corn SyrupPoplar Hydrolyzate

Exceeds TargetTiter in 60 Hours

Target Titer = 50 g/l

Fermentation Works WellWith Hydrolyzates.

Mixed Sugars, Wood BreakdownProducts, etc. Issues Are Solved.

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Demonstrated Scale-up Success

• 10,000x Scale-up• Repeated numerous times

• Multiple vendor trials• Glacial Acetic Acid,

99+% pure

Scale-up

Control

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Demonstrated Products

FuelSolventVAMUse

$20B/yr$0.2B/yr$3B/yrUS Market

D 4806D 4614D 3629ASTM Spec

EthanolEthylAcetate

AceticAcidProduct

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• 250,000 GPY capacity• Produce ethyl acetate and cellulosic ethanol• Hybrid poplar + others feedstocks• 75 Construction jobs, 25 Operating jobs• Capex and Opex Funded in Cooperation with US DOE

Integrated Biorefinery

Schematic of future facility

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Groundbreaking June 2, 2010

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Solving “Food vs. Fuel” DebateFarmYield

FactoryYield

AutoEff.

LandProd.

CornEthanol

150Bu/ac/yr

2.7Gal/bu

14Mile/gal EtOH

5,670Mile/ac/yr

1st Gen.Cellulosics

7.5BDT/ac/yr

90Gal/BDT

14Mile/gal EtOH

9,450Mile/ac/yr

AdvancedCellulosics

15BDT/ac/yr

135Gal/BDT

14Mile/gal EtOH

28,350Mile/ac/yr

AdvancedCellulosics +

Auto Efficiency

15BDT/ac/yr

135Gal/BDT

25Mile/gal EtOH

50,625Mile/ac/yr

0 20,000 40,000 60,000

Ad. Cell. +Auto Eff.

AdvancedCellulosics

1st Gen.Cellulosics

Corn Ethanol

Land Productivity, Mile/ac/yrMaximize efficiency at farm, factory and vehicle

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Water Advantage

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Approximately an 80% reduction in farm to fuel water demand overcorn ethanol and 35% reduction over 1st Generation Cellulosic

Biochem Thermochem Syngas ZeaChemOnly Only Fermentation Hybrid

FarmWater Demand (rain+irrigation), gal H2O/ 4,000 Water Demand (rain+irrigation), ac ft/BDT 0.13 0.13 0.13 0.13Factory Yield, gal EtOH/bu 2.7 Factory Yield, gal EtOH/BDT 90 90 90 135Water Demand, gal H2O/gal EtOH 1,481 Water Demand, gal H2O/gal EtOH 482 482 482 321

FactoryWater Demand, gal H2O/gal EtOH 3 Water Demand, gal H2O/gal EtOH 6 2 2 3

Farm+FactoryTotal Water Demand, gal H2O/gal EtOH 1,484 Total Water Demand, gal H2O/gal EtOH 488 484 484 324

Cellulosic EthanolCorn Ethanol

Farm,1,481

Factory,3

Corn Ethanol1,484 gal H2O/gal EtOH

Farm,321

Factory,3

ZeaChem324 gal H2O/gal EtOH

Farm,482

Factory,2

Other Cellulosic484 gal H2O/gal EtOH

Switch toCellulosic Feedstock

Improve FactoryYield

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Carbon Advantage

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Fuel Technology GHG % Reduction from Gasoline

Gasoline 0%

Corn Ethanol 21-24%

Cellulosic Ethanol w/Stover 86-89%

ZeaChem w/Energy Farm 94-98%

Perennials + Green Factory Utilities = Lowest GHG Footprint!

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Other Platforms – Fuels and Chemicals

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C2 PlatformAcetic Acid Ethyl AcetateEthanolEthylene

C3 PlatformPropionic AcidPropanolPropylene

• Chemicals: Plastics, Acrylics• Fuels

C4 PlatformButanol

C6 PlatformHexanolHexene

ZeaChem’sTechnology

Status: Demo

Status: Lab/Pilot

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• Hybrid technology = High yield– Drives economics and environmental performance– Product flexibility: biofuels and biochemicals

• Relentless focus on risk reduction across value chain– Feedstock– Technology– Offtake– Financing

• Executing C2 platform at demo plant scale

ZeaChem Summary

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Thank you

Tim Eggemantime@zeachem.com

(303) 248-7774