Michael Eckhart Managing Director Global Head of Environmental Finance Corporate & Investment Banking Citigroup Capital Markets, Inc. “Financing the Commercialization of Bio Projects” (and Companies) Presented to: Advanced Biofuels Leadership Conference April 21-23, 2014 Gaylord, Washington, DC

Global Leadership in Renewable Energy Citi is a consistent leader in Renewable Energy transactions across sectors, geographies and products. 3

PERSPECTIVE

(°C) Warming of the global climate is now unequivocal, and to a level of 90% certainty, it is due to human activity. Source: IPCC AR5 Working Group 1: Climate Change 2013: The Physical Science Basis

Cumulative CO2 emissions to reach 800 Gt by 2035, split evenly by OECD and non-OECD… Non-OECD OECD Gt OECD 51% Non-OECD 49% Energy-related CO 2 emissions by 30-year Periods Source: World Energy Outlook, 2013, IEA Total Emissions

Years of Fossil Fuel Reserves and Resources Total remaining recoverable resources Proven reserves Cumulative production to date CoalNatural gasOil years 233 years 178 years 142 years 61 years 54 years

The World is Preparing to Act… IEA’s Global Energy-Related CO2 Emissions by Scenario Source: International Energy Agency World Energy Outlook (1)Other includes concentrated solar power, geothermal, marine energy, small hydro and wind offshore. Current Policies Scenario New Policies Scenario Efficient World Scenario 450 Scenario (2°C) 4

40 YEARS INTO A 100-YEAR TRANSITION TO CLEAN ENERGY

Financing the Commercialization… Technology Innovation Market Structure innovation Policy Innovation to Drive Supply and Demand Financial Innovation

Financing the Commercialization… Technology Innovation WindSolarHydro OceanGeoBio Market Structure innovation Policy Innovation to Drive Supply and Demand Financial Innovation

Financing the Commercialization… Technology Innovation WindSolarHydro OceanGeoBio Market Structure innovation PURPA 1978Utility De-RegBiofuel blending EPACT 1992Net Metering Policy Innovation to Drive Supply and Demand Financial Innovation

Financing the Commercialization… Technology Innovation WindSolarHydro OceanGeoBio Market Structure innovation PURPA 1978Utility De-RegBiofuel blending EPACT 1992Net Metering Policy Innovation to Drive Supply and Demand PTC / ITCRPSRECs FITRFSRINs Financial Innovation

Financing the Commercialization… Technology Innovation WindSolarHydro OceanGeoBio Market Structure innovation PURPA 1978Utility De-RegBiofuel blending EPACT 1992Net Metering Policy Innovation to Drive Supply and Demand PTC / ITCRPSRECs FITRFSRINs Financial Innovation Project FinanceYieldcos Lease FinanceSecuritizations Loan GuaranteesGreen Bonds

Debt and Equity Financing FormPastCurrentFutureCost DebtRepaymentNet WorthCertainty0%-10% DSCR EquityPrior SuccessTechnologyChange10%-25% MarketsProfits Management Leadership Technology Establishes the Cost Base Policy Establishes the Investment Environment

Michael Eckhart Managing Director Global Head of Environmental Finance Corporate & Investment Banking Citigroup Capital Markets, Inc. Thank You

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