0 Land used for energy as a % of land under agriculture production Food production and energy production don’t compete Source: UNEP, Issue paper Bioengery No 1 “LAND USE, LAND USE CHANGE AND BIOENERGY” (Ravindranath et al, 2009) The feedstock for ethanol and biodiesel represents 2.3% of the land currently under agricultural production.* Head of the Food and Agriculture Organisation (FAO), Jacques Diouf, notes that globally enough food is produced to feed the entire world.

1 Myth – ethanol takes more energy to make than you get out of it? NO! Energy balance – ethanol is a net energy positive Source: Journal of Industrial Ecology, University of Nebraska, 2009 Report How Much Energy Does It Take to Make a Gallon of Ethanol? by David Lorenz and David Morris, 1995 NEG = Energy Consumable − Energy Expended Ethanol contains much more energy than is used to make it The Net Energy Ratio for an average biorefinery is 1.5 to 1.79 according to the study published in the Journal of Industrial Ecology. The Net Energy Gain (NEG)of today’s corn ethanol plant is up to 151% according to the study “How Much Energy does it take to make a gallon of Ethanol” GreenField’s Plants are state of the art

2 Ethanol – Quick Facts In 2010, global production of ethanol will reach 85 billion litres 50 billion litres are produced in North America Canada's production of homegrown clean ethanol was over 2 billion litres in 2009 and displaced 6.75 million barrels of foreign oil. In 2010, Greenfield will produce almost 600 million litres of ethanol Current Canadian mandate is for 5% ethanol to be blended in all gasoline – (September 2010)

3 Canada’s Biofuel Industry There are 28 renewable fuels plants in Canada (16 ethanol plants). These plants produce a total of 2.25 billion litres of renewable fuels annually. They generate gross annual economic benefits of $2.139 billion to the Canadian economy across Canada. These operations are creating 1,038 direct and indirect jobs annually. In September 2010, the Canadian Renewable Fuels Standard mandating 5% ethanol content will come into force. There is currently no public policy in place to grow the industry capacity.

4 Policy In Canada A national mandate for 5% ethanol content in gasoline will be in place September First generation capital support is exhausted. First generation operating support will taper off and there is no policy or programs in place to take their place Second generation capital support exists under SDTC programs. Second generation operating support does not exist.

5 What is happening in the US? I. Project Introduction Future supply will be seen in the cellulosic ethanol technologies Total RFS 1 st Generation Ethanol 2 nd Generation Ethanol Other (Biomass-based Diesel) Undifferentiated Advanced Biofuel Advanced Biofuels Renewable Fuel Standard (EISA)

6 USA Blend Wall It is expected that the blend wall will increase this summer. Too early to know if it will go to E15 immediately.

7 A Flex Fuel Infrastructure is being built in the USA – Canada should follow Big 3 Automakers in the USA have committed to making 50% of their vehicles flex fuel (85% ethanol, 15% gasoline) by 2012 Engine technology is closing the mileage gap (3-4 %) between gasoline and ethanol E-85 A partnership between the Department of Energy and the ethanol industry in the US is building flex fuel infrastructure. You can drive from Miami to Detroit, Chicago to Houston and from Boston to New York and fill up with E85 all along the way.

8 US - Obama

9

10 US – e85 Corridor Chicago to Houston Plus Detroit to Miami and New York to Boston under construction

11 US –Current Market Status – Vehicle and Infrastructure 8 million flex fuel vehicles on the road (3% of US vehicles) and adding 800,000 to 1 million each year Nearly 2,000 E85 stations

12 We built an ethanol industry in Ontario in partnership with government Together, we built a $1 billion a year industry in Ontario. Today and everyday 2 million litres of ethanol is produced in Ontario

13 The Ontario mandate requires about 700 million litres per year… 1 billion litres will be produced annually by 2011 Supply Chatham – GreenField 140 Sarnia – Suncor 200 Aylmer - IGP 150 Collingwood – Collingwood 50 Johnstown – GreenField 210 Total Supply Suncor 2010/11200 Demand mlpy 1,000

14 GreenField’s Green Facts GreenField produces 350 mlpy of fuel ethanol and another 100 mlpy of high purity industrial alcohol each year in Ontario. GreenField buys over 45 million bushels of corn for its Ontario operations, of which a 1/3 is returned to the farm as feed. Over 90% of GreenField’s corn is bought from Ontario farms. GreenField employs over 250 people in Ontario and has 3 ethanol plants creating highly skilled green jobs in Johnstown, Chatham and Tiverton. GreenField owns and operates Canada’s only industrial alcohol packaging facility, located in Brampton. It is estimated that GreenField’s facilities have a spin off impact on employment in their local areas of over 450 jobs. GreenField is the only producer to offer farmers a “buy direct” program.

15 GreenField’s biorefineries of the future Building on the success of our corn ethanol facilities GreenField is actively pursuing opportunities in… Cellulosic ethanol production Green power generation Biochemical Production

16 GreenField is investing in second generation ethanol The first step is ethanol from non traditional feedstocks… Cellulosic Ethanol using fermentation to convert biomass to ethanol. Today we are making ethanol from corn cobs using GreenField’s patented technology. This technology is the foundation for making ethanol from other agricultural products and forestry waste. Engineering is complete for the commercial demonstration plant. Construction will start in Cellulosic Ethanol using Gasification to convert municipal solid waste to ethanol. GreenField is in partnership with Enerkem for future Ontario and Quebec plants. Enerkem’s first plant is being built in conjunction with the City of Edmonton waste diversion department. The Enerkem technology used for feedstock-waste paper, cardboard, plastics, packaging, sawdust, woodchips etc. and makes ethanol (or methanol). The next plant will be built at GreenField’s Varennes, Quebec location

17 Biochemical Research Laboratory

18 Biochemical Pilot Plant

19 The pretreatment pilot plant

Is there anything wrong with Ethanol? Should it become a more important part of the transportation fuel mix in Canada?

21 Will biofuels really make a difference? Health ---Economy – Security -- Environment Currently, the ethanol industry replaces 364 million barrels of imported oil each and every year in the USA and Canada. A major study by the Windmill Group identifies 645,000 jobs created by ethanol in the USA and $92 billion. First generation ethanol has 59 percent fewer Greenhouse Gas Emissions when compared to conventional gasoline. Cellulosic ethanol, the second generation of renewable fuels, is 90 percent cleaner than gasoline, and with the current feed stock of biomass, there is enough biomass in the USA alone to produce 85 billion gallons (61% of the gasoline that is used in the US every year) of cellulosic ethanol annually.

22 Cleaner Home Grown Fuel. Biofuels will make a difference. The fact is - ethanol works – it makes us less dependent on foreign oil, contributes to this country’s economy and is better for the environment.

23 Barriers and Opportunities Support for the ongoing growth of the industry and commercialization of research.  Investment Community  Public Policy Makers and Politicans

24 Canada’s Energy Policy -- Important steps to make Canada’s Transportation system clean and green Important elements of a Renewable Transportation Fuels Strategy 1. Ensure access to markets through flexible and practical renewable fuels standards (mandates). 2. Support commercialization of new biofuels technologies by providing: a)Direct capital support such as SDTC NexGen Fund (critically important) b)‘Safety net’ operating support for advanced biofuels (similar to ecoEnergy for Biofuels Program) c)Tax measures designed to stimulate private investment (i.e. flow through shares) 3. Promote ‘flex fuel’ vehicles and infrastructure for high level renewable blends (i.e. E85) 4. Regulate trade to protect domestic industry from ‘dumping’ 5. Alignment of carbon management systems with the US (i.e. ‘cap and trade’ regulations)