DOE/USDA Biomass Feedstock Gate Review Meeting March, 2005 Note: Each presentation is allotted 35 minutes; 20 min. for the presentation and 15 min. for reviewer Q&A.

Presentation Outline Strategic Fit –Feedstock fit –Milestone fit –Stage gate fit Technical Barriers Addressed Customers Technical Feasibility and Risks Competitive Advantage Project Overview History and Accomplishments Plan/Schedule Legal/Regulatory Compliance Critical Issues and Show-stoppers Plans and Resources for Next Stage Summary

Improved Plants & Production Practices for Grasslands & Biomass Crops Native Grass Utilization Project Biomass Power for Rural Development Chariton Valley Switchgrass Project UT Switchgrass Project Biomass Supply Systems & Logistics Supply Forecast & Analysis Economic Impacts from Competing Demands for Ag. Feedstocks to Produce Bioenergy & Bioproducts Project Fit in the Overall Feedstock Stage Gate Scope Feedstock Fit

B Milestone Ag. Residue & Energy Crop Feedstocks Available to a Biorefinery at $35/dry ton by 2015 Collection/ Harvesting Technology is Available Storage Technology is Available Transportation Technology is Available Preprocessing Technology is Available Feedstock Milestone Hierarchy Intermediate Targets ? 2010: xx tons at $xx/ton 2015: xx tons at $xx/ton 2020: xx tons at $xx/ton Production Technology is Available C Milestone By 2010 identify sufficient, sustainable ag. residue supply at $10/dry ton grower payment C Milestone By 2009, develop and demonstrate innovative dry storage methods so that feedstock degradation is less than 5% providing a 50% cost reduction compared to current (2003) bale based systems. ( $1.75/dry ton ) C Milestone By 2009, demonstrate preprocessing technologies that produce ag. residue resources with bulk and flowability properties similar to other large solid commodities so that it can be handled with traditional high- volume conveyance thus reducing costs by 50% when compared to bale-based systems. ( $2.75/dry ton ) C Milestone By 2010, technologies and methods are developed to harvest and collect nationally xx M tons/year of ag. residues with a 50% cost reduction when compared to current (2003) technologies. ( $12.50/dry ton ) C Milestone By 2009, demonstrate transportation cost reductions resulting in average transportation costs of$8/dry ton or less. C Milestone By 2006, resource data with national coverage for all significant existing ag. residue resources is up-to-date, documented, and readily accessible via the internet Systems Integration C Milestone By 2007 develop optimized process and cost models for feedstock supply systems and validate analytically that ag residue feedstocks could be supplied to biorefineries at $35/dry ton. Milestone Fit

What Stage is the project in? Stage Gate Fit

Sustainable Supply Cost Social Impacts Economic Impacts Environmental Impacts Biomass Variability Engineering / Infrastructure - Single Pass/Selective Harvest - Preprocessing & Storage - Transportation Resource Availability Sustainability Requirements - Erosion & Soil Health - Crop Yield & Productivity Technology for Agricultural Residues Technology for Energy Crops Agriculture Sector Paradigm Shifts Forest Sector Systems New Crop Development - Perennial Grasses - Hybrid Poplar - Willow Other Long Term Barriers Gray areas not covered in current review 1 st Tier 2 nd Tier 3 rd Tier Technical Barriers Addressed

List and discuss customers of this work Customers

Discuss feasibility and risks of project and processes/technology it is developing (see Stage Gate guide) Technical Feasibility and Risks

Discuss how this project will improve the chances of commercial launch of the technology. Describe what could happen to make this area of research obsolete. Competitive Advantage

Discuss project activities, participants, objectives Project Overview

Discuss history and accomplishments at a level of technical detail sufficient to provide basis for reviewer evaluation – this is the “meat” of the presentation History and Accomplishments

Show plans and schedule for this project and discuss any deviations or issues Plan/Schedule

Discuss patent positions, waste streams emissions, safety, permitting, etc. issues. Are these issues insurmountable? Legal/Regulatory Compliance

What are the critical performance parameters that must be met? Are there any potential show-stoppers (e.g. environmental issues, capital replacement cycles/needs) Critical Issues and Show-stoppers

If this project is successful, what’s next? Plans and Resources for Next Stage

Summary comments/issues Summary