1. Science. Solutions. Service. ABENGOA BIOENERGY 1 www.abengoabioenergy.com Abengoa Bioenergy R&D

2. Science. Solutions. Service. ABENGOA BIOENERGY 2 "The present document has been drafted by Abengoa for its exclusive use as a presentation. It does not suppose a bid, commitment nor recommendation, it has not been verified by third parties and consequently neither the Company nor its employees assume responsibility for the use of the information, commentaries and valuations contained or connected with this document. Disclaimer

3. Science. Solutions. Service. ABENGOA BIOENERGY 3 Table of Contents 1.Abengoa overview 2.Biofuels definition 2.European directive on biofuels 3.Review of EU Biofuels directive – Public consultation: eBio view

4. Science. Solutions. Service. ABENGOA BIOENERGY 4 1.Abengoa Overview

5. Science. Solutions. Service. ABENGOA BIOENERGY 5 Abengoa is a technological company that applies innovative solutions for sustainable development in infrastructures, environment and energy sectors. It is present in over 70 countries where it operates through its five Business Units: Solar, Bioenergy, Environmental Services, Information Technology, and Industrial Engineering and Construction. Abengoa overview 2005200405 / 04 (%) Sales (M)2,023.51,746.1+ 15.9 EBITDA (M)216.9180.1+ 20.1 EBITDA / Sales (%)10.710.3

6. Science. Solutions. Service. ABENGOA BIOENERGY 6 The Evolution of Abengoa Bioenergy 1995 2002 - 03 Abengoa identifies the need for a renewable alternative to transport sector energy needs R&D award by the European Commission ( 4.5 million) R&D award by the U.S. DOE ($35.5 million) 1996-2001 Construction of the two largest facilities in Europe Acquisition of High Plains Corporation in the U.S. 2005 Construction of third facility in Spain First sales of ethanol from Spain to other EU countries Joint venture with Cepsa (Total) for ETBE facility Expansion of U.S. plants (York, NE and Colwich, KS) Construction of fourth facility in US 40,000 tons award in France 83 Ml of ethanol exports contracted in Europe R&D award by the U.S. DOE ($2.2 million) 2006 Strategic Investment in O2Diesel 2004 Expansion of Portales, NM, and BG Joint venture with Cepsa (Total) 200 Ml of ethanol exports contracted in Europe 200,000 t Biodiesel Plant Start-up BCyL (200 Ml) +60,000 tons award in France

7. Science. Solutions. Service. ABENGOA BIOENERGY 7 La Coruña (190 Ml) York, NE (210 Ml) Colwich, KS (95 Ml) Portales, NM (115 Ml) Ravenna, NE * (325 Ml) Cartagena (150 Ml) Salamanca (200 Ml)AB France * (250 Ml) Abengoa Bioenergy is the only international producer of ethanol Production Facilities in EUProduction Facilities in U.S. EU (Ml) 2006 2007 2008 Production 540 540 790 Construction * 250 250 EU (Ml) 2006 2007 2008 Production 540 540 790 Construction * 250 250 US (Ml) 2006 2007 2008 Production 420 745 745 Construction 325 US (Ml) 2006 2007 2008 Production 420 745 745 Construction 325 YTD Production Capacity

8. Science. Solutions. Service. ABENGOA BIOENERGY 8 1.Biofuels definition

9. Science. Solutions. Service. ABENGOA BIOENERGY 9 Definition Biofuels are fuels that derives from biomass Liquid biofuels as bioethanol and biodiesel ares used mainly in self- propulsion vehicles reducing contaminant effects and favouring Kioto Protocol performance Why biofuels? Environmental protection Energy dependence New outles for agriculture

10. Science. Solutions. Service. ABENGOA BIOENERGY 10 2.European directive on biofuels

11. Science. Solutions. Service. ABENGOA BIOENERGY 11 EU biofuels directive (directive 2003/30): Directive sets reference values for the market share of biofuels (2% at the end of 2005 and 5.75% at the end of 2010) Member States must set national indicative targets

12. Science. Solutions. Service. ABENGOA BIOENERGY 12 3.Review of EU Biofuels directive – Public consultation: eBio view

13. Science. Solutions. Service. ABENGOA BIOENERGY 13 EU biofuels directive review A progress report on the directive is required by the end of 2006: - Consultation of the interested parties has run till 10 th July Key questions that have been addressed: 1)Is the objective of promoting biofuels still valid? 2)Prospects for biofuels market share in 2010 3)Targets and support for biofuels 4)Certification of biofuels 5)Beyond 2010 6)Technical issues in the development of biofuels

14. Science. Solutions. Service. ABENGOA BIOENERGY 14 Is the objective of promoting biofuels still valid? General thinking is the objectives are still valid. The most important reasons: -Security of supply -Reduction of greenhaouse gas emissions Other reasons: -Creation of jobs -New market opportunities for the agricultural sector -Access to energy in developing countries -Technology development and technology transfer -Reduction of non-GHG emissions (ej sulphur)

15. Science. Solutions. Service. ABENGOA BIOENERGY 15 Trends for biofuels market share in 2010 General thinking is the objective will not be achieved due to: -Lack of policies to support increase of production capacities -Some Member states have not established the objectives or are inferior to 5,75% (UK) Main factors favoring bioethanol: - Global transport fuel - Could be produced from virtually any organic material - Contains more energy than required to produce it - Reduce GHG emissions and other toxic as benzene, particulates… - Biodegradable in water and soil - Economic development in rural areas - Development of technologies - Savings from avoided oil imports - Potential to be used in compression engines - A sustainable fuel options – combustion engines to hydrogen fuel cells Main barriers: - Opposition of oil refineries due to a growing dieselization of EU fleet which lead to a discriminatory national road fuel duties - No information to the general public and failure on public policy makers to recognize the power of biofuels as alternative fuels to capture public interest and support

16. Science. Solutions. Service. ABENGOA BIOENERGY 16 Targets and support for biofuels Looking towards 2010, is the present European system of indicative targets and support for biofules appropiated or need to be changed? European system need to be changed in particular in issues regarding: - Compliance with the 2010 target - The need to promote public awareness and support - The need to promote energy crops - Measures to promote lignocellulosic ethanol Commision proposed options for supporting biofuels. From eBio point of view the more advantageous are: - The biofuel directive is amended to require MS to use biofuel obligations as a tool to national targets in both petrol and diesel - Sanctions for no compliance - Targets at least maintained - Public awareness and promoting lignocellulosic ethanol Obligation and/or detaxation

17. Science. Solutions. Service. ABENGOA BIOENERGY 17 Certification of biofuels Questions that have been addressed: 1)Should there be a system to ensure that biofules have been made from raw materials whose cultivation meets minimum environmental standards? Yes, if can be demonstrated that certificates are appropriate for: - demonstrating compliance with these minimum environmental standards - are non discriminatory - are robust, non practicable and non-bureaucratic 2)Should a wider system of certificates be introduced, indicating the greenhouse gas and/or security of supply impact of each type of biofuel? Yes, considering the same than previous. Use LCA analysis. Special credit to lignocellulosic ethanol 3)Should there be a scheme to reward second-generation biofuels (made with processes that can accept a wider range of biomass) within biofuel support systems? Yes, and in addition EU Commission must make a step-up in committing funds to assists the EU industry in R&D

18. Science. Solutions. Service. ABENGOA BIOENERGY 18 Beyond 2010 Questions that have been addressed: 1)Should the EU continue acting in favor of biofuels after 2010? Yes, if not investments will not be made 2)If the EU is to continue acting in favor of biofuels after 2010, should this action include or exclude the definition of a quantified target for biofuels? Yes, for the following reasons: - Move towards a secure and environmentally sustainable transport system - Clarity to CAP - Investments of stakeholders - R&D performing - Auto manufactures investments

19. Science. Solutions. Service. ABENGOA BIOENERGY 19 Questions that have been addressed: 3) Should EU action include the following measures (which could be pursued without defining a quantified target): a) support for research, development and dissemination of good practice? Yes b) continued Community financial support for the supply of biofuels and their feedstocks? Yes c) continued scope for Member States to support biofuels through tax reductions/exemptions? Yes d) the labeling of all fuel to show the proportion of biofuel it contains? Yes e) a campaign to inform consumers of the benefits of biofuels? Yes 4)If the EU is to define a quantified target for biofuels after 2010, what should it be? What year(s) should it relate to - 2015? 2020? Both? Targets should be fixed for 2015, 2020 and 2030. Values of 10%, 15% and 25% respectively 5)Terms to be expressed the target for biofuels after 2010? System of market share. In addition, a quantifiable GHG savings target Beyond 2010 (continued)