BIOFUELS: FUELING THE FUTURE  Presentation to the Drexel Great Works Symposium  Nathaniel S. Doyno  Partner & Clean Technology Officer  The Ecolibrium Group, LLC  May 6 th, 2010

PRESENTATION OVERVIEW  The Ecolibrium Group  Me  Biofuels 101  Biofuels in the US  Biofuels in PA  Biofuels in Philadelphia  Case Study: Black Gold Biofuels

THE ECOLIBRIUM GROUP, LLC  Philadelphia-based Sustainability Consulting Firm  Established August 2009  Woman & minority owned (W/MBE)  3 Partners + 6 FTE  Two Business Units  Sustainability Strategy Group  Sustainability Action Plans; Sustainability Performance Measurement, Verification & Reporting; GHG Emissions and Environmental Performance Indicator Benchmarking & Analysis;  Clean Technology Business Development Group  Feasibility Studies; Market Research & Analysis; Strategic & Business Plans; Sales, Marketing, & “Go-2-Market” Strategies; International, Domestic, & Local Business Representation; Investor Matchmaking; Grant Writing

ABOUT ME  B.S. City & Regional Planning, Cornell University (‘05)  “Field Tested” Entrepreneur  Steel City Biofuels, Inc.  Founder & Former Executive Director  GTECH Strategies, Inc.  Co-Founder & Former Board Member  Pittsburgh Region Clean Cities, Inc.  Former Coordinator & Board Treasurer  Sustainability & Social Venture Thought Leader  City of Pittsburgh Green Government Task Force  Pittsburgh Green Jobs Advisory Board  Pittsburgh Technology Council’s “Green Tech Network”  Sustainable Pittsburgh’s “Champions for Sustainability”

BIOFUELS 101  Why You Should Care about Biofuels  Biofuels Fact vs. Fiction  Biofuels Resources

BIOFUELS 101 (cont.)  Why You Should Care About Biofuels  Petroleum fuels are essential to every aspect of the US and global economies  Transportation: Cars, public transit, school buses, etc.  Shipping: Trucks, trains, barges, ships, etc.  Construction: Anything painted yellow  Petroleum fuels are non-renewable, and in short-supply, particularly in the USA  Petroleum fuels are bad for both humans and the environment  Petroleum fuels are a direct threat to our National Security  Currently there are a very small number of viable clean and renewable alternatives to petroleum fuels  The US currently has the expertise, technology and natural resources necessary to make clean and renewable biofuels that are cost-competitive with petroleum

BIOFUELS 101 (cont.)  Biofuels Fact vs. Fiction  Some biofuels ARE bad for the environment  Corn ethanol  Palm-oil biodiesel  Not all biofuels are created equal  Advanced feedstocks are more sustainable and do not compete with food production or sensitive ecologies  Algae, switchgrass, agricultural & urban waste streams, etc.  2 nd & 3 rd Generation processing technologies are more efficient and environmentally friendly  Gasification & pyrolisis, biological/enzymatic, nanotech, etc.

BIOFUELS 101 (cont.)  Biofuels Resources  US DOE Alternative Fuel Data Center   US EPA Fuels & Additives Division   International Roundtable On Sustainable Biofuels   nable_Biofuels nable_Biofuels  European Biofuels Technology Platform 

BIOFUELS IN THE US  Energy Policy Act of 1992 (“EPAct”)  Requires Federal and certain State Government fleets to purchase increasing percentages of Alternative Fuel Vehicle’s (“AFV’s”) annually.  Regulated fleets can get credit for AFV purchases by using 20% (B20) or higher biodiesel blends. 1 AFV credit = 450 gallons of pure biodiesel (B100), or 2,250 gallons of B20.  Created the Clean Cities Program  Primary goal is to expand and stimulate alternative fuel markets to replace petroleum used in the transportation sector.  Annual budget increased in 2009 from $13 to $300 million.  Distributes grants for biodiesel blending and distribution infrastructure.  Provides operating support and project funding for Regional “Clean Cities Coalitions” to expand awareness of and demand for alternative fuels.  Provides free technical support for regulated fleets utilizing biodiesel.

BIOFUELS IN THE US (cont.)  Energy Policy Act of 2005  Requires the use of alternative fuels in dual-fueled AFV’s (which includes diesel vehicles) unless Secretary of Energy grants a waiver.  Energy Independence & Security Act of 2007 (“EISA”)  Requires Federal Agencies to install at least one renewable fuel pump at all federal fleet fueling centers by  Executive Order (2007)  Requires Federal agencies with 20 or more vehicles to increase alternative fuel use by 10% per year relative to 2005 baseline through  Executive Order (2009)  Requires Federal agencies to consider fleet and transportation management during greenhouse gas inventory and mitigation processes.

BIOFUELS IN THE US (cont.)  Federal Renewable Fuel Standard (“RFS”)  Authorized by EISA in 2007, new RFS rules finalized and released February 3rd 2010 (“RFS2”).  National volumetric blending mandate, escalates annually.  Requires 650 million gallons of “biomass-based diesel” (such as biodiesel) be blended in  Requires 1 billion gallons of “biomass-based diesel” be blended in  Expands regulated fuel types to include diesel sold for use in non-road, locomotive, and marine engines.

BIOFUELS IN PA  Assets  Federal, State & Local Government leadership  Aggressive/progressive legislation & incentives  Available Feedstock  Large & established forestry industry  Large & established agricultural industry  Large urban centers  Research institutions with biofuels expertise  Penn State, CMU, University of Pittsburgh  National Energy Technology Laboratory (NETL)

BIOFUELS IN PA (cont.)  Legislation  Current  PA Renewable Fuel Standard (RFS) requires that every gallon of “on-road” gasoline and diesel contain at least 2% biofuels  The first RFS to require cellulosic (e.g. non-corn based) ethanol  Took effect May 1 st, 2010  Proposed  Expansion of PA RFS to “off-road” fuels (home heating oil, construction, etc.)  Incentives  PA Biodiesel Producer Tax-Credit  PA DEP Alternative Fuel Incentive Grant Program  PA Energy Development Authority

BIOFUELS IN PHILADELPHIA  Greenworks Philadelphia  Current high-profile biofuels users include the City’s fleet, SEPTA, PECO, Temple, and others.  Philadelphia Region Clean Cities  Local resource and advocate for petroleum alternatives  The Energy Cooperative  SE PA’s largest distributor of biodiesel and bioheat  BlackGold Biofuels

CASE STUDY: BLACKGOLD BIOFUELS  Local, woman-owned & run biofuels start-up  “2 nd Generation” conversion technology that utilizes a true waste stream as feedstock  First plant is operational in SF  2 nd plant currently under development in Philadelphia

CONTACT  Nathaniel S. Doyno  Partner & Clean Technology Officer  The Ecolibrium Group, LLC  1528 Walnut Street, 21 st Floor   Office:  Cell: