1. Wisconsin Biodiesel Blending Program 3 February 2011 Integrated Biorefineries Platform David Jenkins Wisconsin Office of Energy Independence This presentation does not contain any proprietary, confidential, or otherwise restricted information

2. Wisconsin Biodiesel Blending Program Project Overview Mission is to ensure that Wisconsin obtains 25% of its transportation fuels and 25% of its electric power from renewable sources by 2025. Actively promote the production and use of biodiesel as an alternative transportation fuel. Position WI as a leader in biodiesel technology innovation, production and consumption. Recognize installation of blending equipment will enable the increased sales of biodiesel and growth of the biodiesel industry.

3. Wisconsin Biodiesel Blending Program Project Overview Currently, biodiesel is sold at one terminal and 8 retail locations in the state Biodiesel cannot be effectively splash blended at higher blend levels in cooler climates in the northern US. In-line blending equipment completely mixes biodiesel with conventional diesel so that the fuels do not separate. Opening the market and creating a demand for the fuel, will help to stimulate production and distribution of the product.

4. 4 Wisconsin Biodiesel Blending Program Project Status Start Date – Aug 20,2010 End Date – Dec 31, 2012 5% complete – RFA Issued Competitive Grant opportunity released Oct 22, 2010 Aiming for 3 to 6 sites Open Opportunity, no responses to date Anticipate partner selection complete by fall 2011 $1.2 million –$600,000 –$600,000 from selected partners Funding received FY10 - $0 Non-ARRA related project Timeline Budget Project Development WPMCA members, API and biodiesel production facilities OEI Other partners determined upon site selections. Project Participants

5. Wisconsin Biodiesel Blending Program Project Status 5

6. At this time, project baseline goals and timelines have not changed Award is in a contingency status until partners are selected and approved by US DOE. 6

7. 7 Wisconsin Biodiesel Blending Program Project Approach Overall goal -- make biodiesel fuel available to the largest number of consumers through a minimal number of terminal facilities. Partnership between state government, agri- businesses, large corporations established to implement this program. –Meetings with WPMCA, API and Biodiesel producers to strategically site companies and terminal facilities Competitive Process launched in October, followed by continued outreach. Go-no go based on responses and interest from industry to complete projects before the end of 2012

8. 8 Wisconsin Biodiesel Blending Program Technical Accomplishments Technical accomplishments limited at this point. RFA released, awaiting for responses. Once sub-recipients are selected there will be significant changes to this area

9. 9 Wisconsin Biodiesel Blending Program Relevance This program directly address the Biomass Program’s goals by: deployment of biofuels supported through public and private partnerships, and, supporting the EISA goal of 36 bgy of renewable transportation fuels by 2022. Biodiesel that meets both the biomass based definition and the advanced biofuels requirements is anticipated to supply 1.2 billion Gallons towards the Renewable Fuels Standard 2 requirement. Distribution infrastructure is necessary to meet this requirement. Known benefits of biodiesel use include reduced particulate matter (PM), hydrocarbon (HC),and carbon monoxide (CO) levels and greenhouse gas reductions.

10. 10 Wisconsin Biodiesel Blending Program Success Factors and Challenges Successes: Completion of installation of in-line biodiesel blending infrastructure in Wisconsin terminals Challenges: Lack of interest in program based on risk of commitment for Large Capital Investments May change with increased RINS value and reinstatement of federal tax incentive Cost of equipment may limit number of sites Availability of ASTM biodiesel to meet demand Lack of demand for biodiesel fuel, beyond RFS2

11. Wisconsin Biodiesel Blending Program Benefits and Expected Outcomes Increased Commercial Viability of Biodiesel –Current sales of biodiesel fuel in WI are less than 500,000 gallons/yr. –Creating a demand for production and boosting distribution could lead to an additional 2 MGY 11

12. 12 Wisconsin Biodiesel Blending Program Summary Direct deployment of biofuels supported through public and private partnerships, Competitive Process to select partners/projects underway Overall goal -- make biodiesel fuel available to the largest number of consumers through a minimal number of terminal facilities. Creating a demand for production and boosting distribution could lead to an additional 2 MGY, contributing to RFS2