in the Northwest Martin Tobias CEO & Chairman, Imperium Renewables Biofuels

What are biofuels? Alternative fuels made from agricultural products such as palm, soy, canola, corn, sugarcane, and even animal fats and fish oil An important step toward energy independence Opportunity to increase value of local crop lands and reduce the need for single source energy Simplest way to reduce greenhouse gas emissions right now

Biodiesel vs. Ethanol Sources: National Biodiesel Board, Governors’ Ethanol Coalition, USDA CompatibilityDiesel enginesGasoline engines FeedstockOil-seed crops (soy, canola), waste oils Sugars (beet or cane), grains (wheat, corn) Yield per acre (gallons)Soy: 55Corn: 420 Reduction in greenhouse gas emissions (vs. petrol.) 41%12% 2005 US production (million gallons) 753,900 Net energy gain220%24%

Environmental benefits Net zero CO 2 emissions ◦Burning fossil fuels introduces new carbon into the atmosphere. ◦Burning biofuel just re-releases the carbon absorbed by the plant (feedstock) during its lifetime. Significant reductions in: ◦Particulate matter ◦Volatile organic compounds ◦Carbon Monoxide Greenhouse Gas Emissions per Mile, Passenger Car

Spotlight on the Northwest State Diesel consumption Gasoline consumption Biodiesel production Ethanol production Oregon Washington 1, Idaho Alaska (All in million gallons per year.)

Growing demand for biodiesel Five states have enacted Renewable Fuel Standards, and another six are in process. Highlights include: By 2010, these mandates alone will require the use of over 73 million gallons of biodiesel each year. Washington - Starting in 2007, all diesel sold retail must contain 2% biodiesel; expected to increase to 5% by Portland, OR - Starting 7/1/2007, all diesel sold in the city must be 5% biodiesel; in 2010, that increases to 10%.

Potential production of ethanol in the NW The Northwest is not a major corn or soy producer, but it does have abundant cellulose that could be used as feedstock for ethanol without planting any new crops. Sources: Sustainable Industries Journal, CH2M Hill Wheat field residues, often burned after harvest, could instead be used for cellulosic ethanol production. Washington wheat fields alone have immediate potential to supply 300 million gallons per year from wheat residues. The inland Northwest is also good growing country for switchgrass, a prairie perennial grass energy crop. Oregon produces almost 4.5 million tons of forest residue per year as part of forest-thinning efforts. And about 62,000 tons of sawmill waste are sent to Oregon landfills each year.

Potential production of biodiesel in the NW Currently, we have a Catch-22: the growth of local markets for canola is inhibited by a lack of local production, which doesn’t exist because there is no local market. However: Canola is an excellent rotation crop for wheat in Oregon, and also provides an alternative to the fluctuations of wheat prices. As federal and state incentives continue, more producers will be willing to build ethanol and biodiesel plants, which may not otherwise be profitable. Other biodiesel feedstocks are available from international growers until the Northwest can produce the necessary quantity at a viable price.

It Takes a Village… Source: Morgan Stanley Research

About Imperium Renewables Northwest’s first commercial (5 million gallons a year) refinery. Founded by John Plaza in late 2003 as Seattle Biodiesel. Privately funded by the founders as well as leading venture capital firms including Nth Power, Technology Partners and Vulcan Capital. Building 100 million gallon biodiesel plant (the nation’s largest) in Grays Harbor, Washington. The company expects to begin production at the plant in 2007 and have 400 million gallons of capacity on line by fourth quarter 2008.

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