Christianson & Associates, PLLP Ethanol Energy Efficiency Report & Iowa Plants Analysis Iowa Renewable Fuels Association Summit John O. Christianson

Energy Efficiency Improvements Data gathered from 2004 – 2007 Submit accurate data to the EPA to determine the actual levels of energy usage within the ethanol production industry and evaluate greenhouse gas emissions. Full copy of the report available at U.S. Ethanol Industry Efficiency Improvements 2004 through 2007

BTUs

Plants producing DDGS Average of all plants used 29,231 BTUs/gal 2007 Reduction of 4,700 BTUs / gal since 2004 Reduction of 13.84% BTUs used Plants producing Wet distillers Average of all plants used 19,901 BTUs/gal 2007 Reduction of 5,430 BTUs/ gal since 2004 Reduction of % BTUs used BTUs

Plants producing DDGS (Leaders) Used 26,693 BTUs / gal in 2007 Reduction of 1,890 BTUs / gal since 2004 Reduction of 6.6% BTUs used Plants producing Wet distillers (Leaders) Used 17,526 BTUs / gal in 2007 Reduction of 5,209 BTUs / gal since 2004 Reduction of 22.81% BTUs used BTUs

kWh

Plants producing DDGS Used.7412 kWh / gal in 2007 Reduction of.1264 kWh since 2004 Reduction of 14.57% kWh used Plants producing Wet distillers Used.5237 kWh / gal in 2007 Reduction of.1196 kWh since 2004 Reduction of 18.59%

Plants producing DDGS (Leaders) Used.5734 kWh in 2007 Reduction of.0262 kWh since 2004 Reduction of 4.37% kWh used Plants producing Wet distillers Used.4769 kWh in 2007 Reduction of.0671 kWh since 2004 Reduction of 12.33% kWh used kWh

Economics of being an Energy Efficiency Leader Plants producing DDGS Equates to over $1 Million saving for BTUs Equates to over $350,000 savings for kWh Plants producing Wet distillers Equates to $950,000 savings for BTUs Equates to $100,000 savings for kWh

Yellow ~ Iowa Plants Blue ~ Feedlot Plants Green ~ All other Plants Wet vs. Dry Iowa & East of Hwy 83 Approx.70% dry Feedlot country Less than 5% is dry

Ethanol Netback Price Iowa lower by $0.09 to $0.15 / gal 2007 prices ranged from $ $1.90 / gal 2008 prices ranged from $ $2.19 / gal

Feedstock Costs Iowa paid from $0.09 to $0.36 less / gal 2007 prices ranged from $ $1.46 / gal 2008 prices ranged from $ $2.12 / gal

Distiller Revenue Wet distillers increased revenue by $ $0.23/ gal

BTUs Cost per Gallon Wet Distillers save 30% of BTUs usage Feedlot country saved 2007 $0.15 / gal 2008 $0.23 / gal

Grind Margin Calculation Ethanol Netback* + DDGS Netback* - Feedstock Cost* - Denaturant Cost - BTU Cost Grind Margin * Includes Realized Hedging

Grind Margin Analysis

Grind Margin 2007 Iowa led the country by $ $0.14 / gal 2008 Iowa followed by $ $0.10 / gal Iowa Corn cost benefit is NOT enough to offset Ethanol price disadvantage Distillers revenue disadvantage

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Thank You John O. Christianson, CPA Christianson & Associates, PLLP For more information on Biofuels Financial Benchmarking Services Please contact: Paula Emberland at (888)