1. Next Gen. Energy Board 08-31-2007
By Jerry Larson

2. Otter Tail Ag Enterprises, LLC Vision Statement
To add value to our region’s economy
Mission Statement
To produce renewable fuels at a maximum return on investment.
To grow member equity value.
To be accountable to the environment and our members.
To be socially responsible to our community and our employees.
To be innovative and adaptive to new technology

3. OTAE Board Facts:
Many of OTAE’s board members have previous successful ethanol experience
OTAE’s Board of Governors and Advisory have expertise in finance, construction, government permitting,research and promotion, marketing, employee management and business growth and development..

4. OTAE,LLC Support Team… Design Build Team – Harris Mechanical
Design Technology –
Grain Handling/equipment – T.E. Ibberson Co.
Legal – Lindquist & Vennum, P.L.L.P.
Accountants –
Environmental – National Resource Group, Inc
Project Consultant

5. Successful Businesses
Leaders possess vision and entrepreneurship
Flexible business structure
Sourced professional, rather than home-grown, management and technical expertise
Linked with experienced partners
Located near low-cost materials
Evaluated and used appropriate forms of technology
Properly capitalized
Sufficient risk management
Managers receiving sufficient compensation
Identified a compelling competitive advantage
Understand the competitive threats and substitutes
Experienced legal counsel
Diverse board members
Goodwill local investment

6. Business Model
Limited Liability Company
One dollar, one vote
Coop
Distribution based on patronage which requires delivery
Or pool charges
Joint Venture
Harnessing expertise with local ownership

7. OTAE, LLC intends to utilize the JOBZ program
OTAE, LLC also is seeking USDA Renewable Energy Grants and other programs designed for rural business expansion.
OTAE,LLC is exploring the use of New Market Tax Credits at one of the sites where this program applies.

8. OTAE, LLC intends to utilize the JOBZ program
OTAE, LLC also is seeking USDA Renewable Energy Grants and other programs designed for rural business expansion.
OTAE,LLC is exploring the use of New Market Tax Credits at one of the sites where this program applies. 8

9. Assumptions – 55 MGY plant Based on Historic Averages
Categories OTAE,LLC
Ethanol Price (net) $1.34
DDGs (net price) $81/ton
Corn Price $2.29/bu
Energy (BTU/Gal) ,000
Electricity (per kw)
Natural Gas (per deca-therm) $7.50
Employees

10. Estimated Allocated Net Income Based on previous Assumptions (55 Million Gallon Production)
15 months
year 1 year year year year 5
Allocated Return to
Stockholder Investment % % % % %
Average of years 2-5 = %

11. Supporting Documentation
Pre-construction Permitting
Financial Close
17 folders, 58 signatures
Leases
Appraisals
Purchase Agreements
Guarantees
Certified Projections
Sufficiency of Funds
Bill of Sale
Disbursement Agreement
Loan Documents
Title Company
Others

13. Intrinsic Risk Factors
Corn Cellulose
Blend Wall Lack of Research
Carbon Foot Print Lack of Loan Guarantees
Declining Crush Margins No proforma high enough to
attract equity
Get production costs down
rather than cheaper
feed stocks
4x Capital Costs
Huge Election Problems

14. The Short-Term Future
In the use of bio-mass to replace natural gas
Fluidized Bed
Methane
Fractionation
Syngas

15. Needed Incentives
Funding Bench-Top Research to Demonstration
Loan Guarantees
Extension of VEETC

19. The Leading Firm in Cellulose Ethanol
A Pioneer in Making Ethanol From “Biomass”
Active since the late 1970’s
$80+ million spent in development
A World Leader in the Field
Two $7 million cellulose ethanol pilot operations
World’s largest cellulose ethanol ($30 million) demonstration plant
Leading-edge commercial enzyme manufacturing
Private and Public Partnerships
$14+ million from Petro-Canada
$15 million from the Government of Canada
Major strategic partnership with Shell
IOGEN Corporation