1. Ryan Thorpe Chief Operating Officer Tharaldson Ethanol

2. Tharaldson Ethanol

4. Energy and Security Act of 2007 Also known as RFS2 Ethanol Mandate 2011- 12.6 Billion Gallons 2012- 13.2 Billion Gallons 2013- 13.8 Billion Gallons 2014- 14.4 Billion Gallons 2015- 15 Billion Gallons

5. Ethanol Margins

6. EPA announcement 11-15-13 EPA reduces 2014 total mandate from 18.15BB gallons to 15.21. This is made up of corn based ethanol, advanced biofuels, and biomass-based diesel Corn based ethanol cut from 14.4BB to 13.1BB gallons I will focus on corn based ethanol

7. Fallout from EPA announcement Long term-puts pressure on the future of corn based ethanol, limits its growth Leaves no room for cellulosic biofuel growth Caps the ethanol penetration at 10%, reducing the need to get E-15 at the pump, even though ethanol is currently $1 cheaper than gasoline

8. The real loser from this announcement The American Farmer!!!!!!!!!!!!!! United States corn ending stocks for 2014 will be the highest since 2005, 1.8BB bushels (prior to the ethanol boom) World ending corn stocks for 2014 will be the highest since 2001, 162MM tons (6.36BB bushels)

9. US Corn Ending Stocks

10. World Corn Ending Stocks

11. 2014 Estimate US Corn

12. World Soybeans Ending Stocks

13. North Dakota Ethanol Production 2005- 30,000,000 2008-128,935,229 2011-383,574,864 2012-365,093,524 2013-367,145,656

14. Percentage of Ethanol Exported out of ND 2008-82% 2011-93% 2012-92.5% 2013-92%

15. Questions????