1. Ethanol & Innovation Investment Overview
Tyler J. Krutzfeldt, CFA
Managing Director
Mont Vista Capital
June 25, 2012
EPAC Meeting
Billings, MT

2. What we will discuss Energy Market Overview Biorefinery 2.0, 3.0
Our Focus
Conclusion

3. Who we are
A specialized merchant banking team focusing on clean energy, water, and infrastructure opportunities with a sustainable investment strategy.
T. Krutzfeldt founding Board member of Algae Biomass Org, speaker at FEW, Platts Biofuel Financing, and published Billings Gazette, Ethanol Producer.

5. Chindia

6. China’s appetite

8. Fuel Switch

9. Fuel Switch

10. Fuel Switch

11. Crude to Nat Gas

12. Fuel Switch

13. Power Cost – full carbon

14. Power costs – low carbon

15. Gas – bearish, mid-term
2011, the US accounted for half of natural gas supply increase, globally
Because of new supply, natural gas prices have dropped 85% since 2008
Fracking and coal economics
Peak oil doesn’t mean we’re running out of oil. It means we have to spend more to get the remaining oil …bearish for gas

17. A Biorefinery
Fuel molecule is lower % gross revenue than non-fuel co-products
Revenue diversification via food, chemical, and premium* drop-in fuels
Premium* = D5 RINS
Capital markets keen on biochemicals & biomaterials displacing under current specs
Biochemical supply constrained

18. Biorefinery Pathways
Ethanol + biogas fuel switch

19. Biorefinery Pathways Ethanol + algae Addressable Markets Co2 Nutrients
Pharma
Fertilizer
Chemicals/Fuels

20. Other Pathways Cellulosic Fractionation to Clean Sugars (Biorefinery)
Supply chain/capex/cap markets uncertainty
Fractionation to Clean Sugars (Biorefinery)
$ $0.15 per pound $6/bushel sorghum
Compelling for downstream product pathways
CCS/EOR
Significant uncertainty

21. Our Focus
6-8 key clean energy/clean water businesses, not technologies alone
Problem solvers, not seekers
Substitutes in existing supply chains
Lifecycle GHG targets assist in defining strategy over investment horizon.
Projects not ideas
Series of little bets

22. Conclusion opening gates…