1. Papernol Technical, Economic and Environmental aspects of converting waste paper into Ethanol February 26, 2008

2. Outline  Ethanol facts  Ethanol sources  Comparison to Papernol  Papernol process Hydrolysis Fermentation Purification  Full scale outlook

3. Fossil Fuel Burden

5. Rate of Use 0%10%15%20%5%25% Oil Reserves Updated July 2005. Source: International Energy Annual 2003 (EIA), Tables 1.2 and 8.1-O&GJ. Canada’s reserves include tar sands. The United States uses more oil than the next five highest-consuming nations combined. 3% 7% 25 % 7% 3% U.S. Dependence on Foreign Oil

6. Fossil Fuel  Comes From Politically Unstable Parts of the World  Weakening Pressure on the Dollar  High CO 2 Emissions  Fixed Availability  50 -100 years of supply left

7. Acres to Replace Gasoline

8. U.S. Ethanol Production RFA, 4/3/07 Currently:6.5 bgy capacity at 124 biorefineries (purple dots) Near Future: Additional 6.4 bgy capacity at 76 biorefineries under construction and 7 under expansion (yellow) TOTAL: More than 12.8 bgy capacity Source: Renewable Fuels Association, 8/1/07 FAR FARTHER VERY FAR

9. U.S. Ethanol Production RFA, 4/3/07 Currently:6.5 bgy capacity at 124 biorefineries (purple dots) Near Future: Additional 6.4 bgy capacity at 76 biorefineries under construction and 7 under expansion (yellow) TOTAL: More than 12.8 bgy capacity Source: Renewable Fuels Association, 8/1/07

10. Increase in the Price of Corn

11. Bio-Fuel Draw Backs: Dead Zone in Gulf of Mexico

12. Starving the Poor http://www.msnbc.msn.c om/id/22902512 /

13. They Have What We Don’t

14. Papernol over Ethanol/ Gas  No Transportation or Farm land Lower Energy cost Lower Dollar Cost  Takes Advantage of Waste  Local: No Foreign Out Sourcing  Improves Local Economy  Fills in Gaps in Bio-Ethanol Map

15. Papernol Preparation and Hydrolysis Fermentation Purification

16. Three Steps to Papernol  Acid Hydrolysis Dilute acid to generate glucose from cellulose  Fermentation Converting Glucose into Ethanol  Distillation Separating Ethanol from water

17. Stages of Project Development Lab Concept Proof Medium Small Demonstration Pilot Integrated Processing Orange Grove Full Unit Lab Scale – Proof of Concept Currently in process at UTC Available budget: $500 Restricted Testing Medium Scale: 2008-2009 Small Demonstration Budget needed: $150,000 Tested using UTC ENGR labs Pilot Scale: 2009- 2010 Integrated Processing Utilize TVA/UTC Chickamauga site Estimated budget needed: $1,000,000 Orange Grove: 2010-2011 Full Unit – Skid Mounted Modular Estimated budget needed: $3,000,000

18. Parallel Development  Analysis of Development of: Process Equipment Materials Economics

19. Energy Equivalent Prices of Gas

20. Visioning the Energy Future  25x’25 By 2025, America’s farms, ranches and forests will provide 25% of the total energy consumed in the U.S. while continuing to produce safe, abundant and affordable food, feed and fiber  20 in 10 Goal in President’s 2007 State of the Union Address to replace 20% of our transportation fuels with renewable sources by 2017  30 by ’30 DOE’s 2002 “Vision”: goal of replacing 30% of our energy use with renewable sources in 30 years  36 bgy RFS by 2022 New legislation proposed to increase the RFS from 7.5 bgy in 2012 to 36 bgy in 10 more years, 21 bgy from advanced ethanol sources

21. Economic Outlook

23. 10 Year Price History of Ethanol

24. Thank You For Having us !  What Would the Chattanooga Energy Hub Want From Papernol ?