Renewable Power from Poultry Litter Presentation by Eric Jenkins VP Commercial Development, Fibrowatt LLC February 2007

Outline What we do How we do it How to structure projects Why it is worth doing

1. Fibrowatt has commissioned America’s first Poultry Litter Fuelled Power Plant 3

The 55MW Fibrominn Plant Commissioning began in May 2007 4

Poultry Litter Fueled Power Plants Generating renewable electricity from poultry litter Well proven technology (14 year operating record in the UK) Carbon neutral Improves and protects water resources Improves sustainability and biosecurity for poultry farmers Recovering value from the nutrients by selling the ash fertilizer Biomass power has an important place in rural communities

Who is Fibrowatt? Fibrowatt LLC, based in PA The founders built the world’s first three poultry litter fuelled power plants in the UK Fibrowatt’s Minnesota plant is currently being commissioned A 55 megawatt, 700,000 ton/year turkey litter plant The first in the US Development work began 1999 Financed with $202m of investment grade rated debt in December 2004 Commercial Operations will commence in August 2007 50MW Projects under development in North Carolina, Arkansas, Mississippi and Maryland

2. How Power From Poultry Litter Works 7

Poultry Houses

Covered Conveyor

Loading the Truck

Tarpaulin Cover

Truck on Scales

Fuel Delivery

Trucks Unloading

Thetford Fuel Hall

Truck Cleaning

How it Works

Inside the Boiler

3. How to Jump-Start Projects 19

How Long Does It Take? 2. Construction phase 2 – 3 years 1. Development phase 2 - 4 years 2. Construction phase 2 – 3 years TOTAL 4 – 7 YEARS 20

What Does It Cost? 2. Construction phase: $150-200M 1. Development phase: $3-10M 2. Construction phase: $150-200M 21

What are the key requirements? 1. Fuel – adequate fuel already available 2. Sites – multiple sites already offered 3. Electricity contracts – federal incentives needed 22

Facilitating the Projects 1.9 ¢/kWh Production Tax Credit (§45) To level the playing field Poultry Litter should get the same incentives as Wind Placed-in-Service Deadline needs to be 7-10 years out Our plants take 2-4 years to develop, design, permit & finance Construction takes at least a further 2½ years Option to select 30% Investment Tax Credit Same incentive as Solar Power Ability to utilize tax-exempt bonds 23

4. Why it is worth doing 24

Multiple Benefits of our Plants Renewable Energy Producing green, carbon-neutral power from domestic resources 750MW of identifiable projects Pollution Reduction Reducing groundwater contamination from excess animal waste Agricultural Sustainability Rural economic development Enabling the poultry industry to maintain sustainable growth Enhancing bio-security for poultry farmers Supporting the Family Farmer 25

Challenge & Opportunity Renewable Power from Poultry Litter is (currently) more expensive than Coal There is significant potential The poultry industry is concentrated in Southern States, which have little wind resource A viable renewable energy option for Southern States Projects Currently Planned North Carolina 3 plants 155MW Arkansas 2 plants 110MW Georgia Alabama 105MW Mississippi 1 plant 55MW Maryland 45MW Other States 4 plants 160MW Total 15 plants 750MW 28

The Carbon Cycle CARBON (CO2) ENERGY Flue Gases BEDDING MANURE & FEED MANURE ELECTRICITY BIOMASS Ash NUTRIENTS