1. Alabama River Companies Biorefining Journey

2. Biorefining Technologies Explored Crude Tall Oil (CTO) to biodiesel Hemicellulose extraction prior to pulping – VPP Ethanol from semi-bleached fiber Gasification of biomass/sludge

3. Biorefining Technology Results CTO to biodiesel – not feasible, fractionating the resins from the fatty acids too costly – and the remaining sulfur component is an issue VPP – technology not developed and business plan suspect Ethanol from semi-bleached fiber Use slip stream to prove process Business model only valid during periods of poor pulp pricing coupled with high ethanol pricing

4. Biorefining Technology Results Gasification (syngas) makes the most sense in the short term as a lime kiln fuel - but not without issues 2006 DOE/OBP biorefinery solicitation – the minimum $50 million award required a $75 million investment Alabama River processes over 150 BDT of sludge per day with good btu value which makes it a viable feedstock Project economics require an additional 150 BDT of biomass per day – availability, price and procurement issues OBP may have some 10% solicitations in 2007

5. Official announcement of biodiesel facility made 9/27/06 Plant capacity of 40 million gallons Initial primary feedstock will be soybean oil Projected start up late 1 st quarter 2007 Project capitalizes on synergies of the two processes/operations