Covering Key AspectsTechnicalEnvironmentalEconomic

August 8, 2008

Ethanol Recycle PaperRecycle

Topics Ethanol Energy Location Time line Opportunity

Growing Demand For Ethanol

New US Facilities500 Million gallons in construction or planned

Corn Ethanol Drawbacks

Cropland Intensive Impacts Food Supply Higher Water Pollution Potential Large Fossil Fuel Input Low Net Energy Yield

Population = PaperPopulation = PaperLocation, Location, LocationLocation, Location, Location

RFA, 4/3/07

Source: Renewable Fuels Association, 8/1/07

Paper

More Paper

Even More Paper

Papernol Advantages Converts Waste Stream to Revenue

Stream Resource from Local Community Improves Local Economy Minimal Transportation/Fuel Inputs No Cropland Requirement Fills in Gaps in Bio-Ethanol Map

Fermentation:Convert Glucose into Ethanol

Distillation:Separate Ethanol from water

Acid Hydrolysis:

Dilute acid to generate glucose from cellulose

Papernol -- Process

Paper

Sugar

Ethanol

CO2

Molecular Sieve

Pure Ethanol

Preparation andHydrolysis

Fermentation Purification

Papernol Outlook Significant Potential in Ethanol

Market Economically Competitive with Corn

& Switchgrass Net Energy Positive

250% energy return A Renewable, Non-Food Ethanol

Source

Adding Stream Value

PapernolMore than 2:1Stream Value

1 Ton of Paper at $150

½ ton of CO2 at $0.10 per lb($100)

100 Gallons of Ethanol at $3 per gal($300)

Time LineLabProof ofConcept Medium

Small DemonstrationPilot

Integrated Processing

Full Scale Production

Lab Scale: 2008 – Proof of ConceptLimited TestingCompleted at UTC Engineering Labs

Medium Scale: 2008-2009

Tested Using UTC Engineering Labs:

•Detail Mass Balance•Energy Balances•Simulation•Preliminary Economic Analysis

Pilot Scale: 2009-2010Will Process UTC Recycle Paper

• 1 ton/dayLocation:

• Chickamauga Site • Caruastar Plant

•Full Economic Analysis• Capital Investment • ROI

Local Facility50 ton/day

EstimatedTotal Project Budget

$3-5 million

Can Intech

and UTC Papernol Work Together ?

Opportunity