Benefical Use of Digester Gas Point Loma Wastewater Treatment Plant Industrial Energy Association April 8, 2015

BioFuels Energy, LLC (“BFE”) has secured long term bio-gas rights from the Point Loma Wastewater Treatment Facility. (By-product of competitive RFQ/RFP Process) BFE purifies the digester gas such that the end product meets the new SDG&E pipeline injection standards (Rule 30) [First project in the State of California to do so] BFE nominates the cleaned biogas (“directed biogas”) to the BioFuels customers and provides renewable energy under a long term Power Purchase Agreement: University of California San Diego (2.8 MW) City of San Diego South Bay Water Reclaimation Plant (1.4 MW) $45 M Total Capital Cost

Digesters Digesters Gas Flares Gas Flares Proposed Proposed BUDG Site BUDG Site GUF GUF Point Loma Wastewater Point Loma Wastewater Treatment Plant (PLWTP) Treatment Plant (PLWTP) PLWTP PLWTP

Point Loma Project Timeline City Issues RFQ for Digester Gas …………. Jan BUDG Biogas Agreements Executed………… Oct Completed Project Financing………………. Nov. 2, 2010 Initiated Construction ……………………….. Dec Fuel Cells Delivery …………………………. August 2011 Complete Construction ………………………... Dec Operation/Maintenance NTP …………………. Jan (started 10 year term) 4

BUDG Site

Southside PLWTP 6

BioFuels Energy’s Pt. Loma Biogas Facility 8

BUDG SIMPLIFIED PROCESS CHAIN 9

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San Diego Gas & Electric Rule 30 Biomethane Gas Delivery Specification PUC Approved and Issued August 27, 2009 Approval of subsequent SDG&E Advise Filing defines “biogas” as being derived from renewable organic sources. 98% methane requirement (98.1% avg. actual) Water Vapor 7 lb/MMscf or less Oxygen.2% or less (.1%) Total Sulfur.75 gr. S/100 scf Others- CO2 (.5%) - N2 (1.3%) 11

Continuous Biogas Monitoring Equipment Moisture & CO2 Analyzer O2 Analyzer Gas Chromatograph Sulfur Chromatograph H2S Monitor Flow Measurement Temperature/Pressure Heat Content (every few minutes) 12

South Bay 1.4 MW Fuel Cell 13

UCSD 2.8 MW Fuel Cell 14

The Directed Biogas Nomination Process 15 Mar-2015 P001- BioFuels Point Loma, LLC Cumulative ImbalanceNominationFuel LossNet SchedDeliveryOperational Imbalance Carryover (161.9) S1-Mar (161.9) 800 (3) (707.6) M2-Mar (707.6) 800 (3) (785.5) Tu3-Mar (785.5) 600 (2) (821.7) W4-Mar (821.7) 600 (2) (869.3) Th5-Mar (869.3) 450 (2) (751.9) F6-Mar (751.9) 450 (2) (1,142.8) S7-Mar (1,142.8) 300 (1) (1,227.5) S8-Mar (1,227.5) 300 (1) (722.9) M9-Mar (722.9) 300 (1) (215.5) Tu10-Mar (215.5) 600 (2) (22.2) W11-Mar (22.2) 500 (2) Th12-Mar (2) F13-Mar (3) S14-Mar (3) (374.2) S15-Mar (374.2) 725 (3) (421.5) M16-Mar (421.5) 725 (3) (400.9) Tu17-Mar (400.9) 597 (2) (273.7) W18-Mar (273.7) 600 (2) (144.2) Th19-Mar (144.2) 600 (2) (629.6) F20-Mar (629.6) 600 (2) (895.7) S21-Mar (895.7) 700 (3) (894.9) S22-Mar (894.9) 691 (3) (870.6) M23-Mar (870.6) 700 (3) (941.2) Tu24-Mar (941.2) 386 (1) (613.8) W25-Mar (613.8) 400 (1) (356.8) Th26-Mar (356.8) 400 (1) (145.6) F27-Mar (145.6) 400 (1) (64.2) S28-Mar (64.2) 724 (3) (513.0) S29-Mar (513.0) 725 (3) (506.1) M30-Mar (506.1) 725 (3) (537.0) Tu31-Mar (537.0) 600 (2) (494.6) Totals 18,023.0 (67.0) 17, ,690.3 (494.6)

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Significant Biogas Project Issues Variability of Digester Gas Supply in establishing Plant Capacity (Design for swings vs average) Interface with existing site flares Responsibility for installation of utility gas interconnection Location of Gas Extraction Location (impact on digester dome pressure) 17

Challenges to Expanding/Developing Biogas Projects Cost of Biogas interconnect too high and installation is provided on a cost plus basis from the utility Interconnect $1.084M/$8.119M – actual $ 1.99M Uncertainty over requirement for new BTU District Challenge of matching significantly reduced natural gas prices; renewable premium not sufficient to cover price differential No long term market for RINS Impact on operation of continuous siloxane monitoring Changing Biogas Quality Injection Requirements Difficulty of securing a guarantee to meet Rule 30 Reduced SGIP/Grant Incentives 18

Alternate Uses for Renewable Biogas Renewable CNG as a Transportation Fuel As “Directed Biogas” for use in new Energy Generation Facilities For Sale to Investor Owned Utilities as Fuel in existing generation units to meet RPS goals For Sale to Commercial, Industrial, & Institutional Customers (boiler or generation applications) 19

Thank You, BioFuels Energy, LLC Frank J. Mazanec, Managing Director (760)