1. Department of Environmental Quality Energy Planning and Renewable Energy Section June 26, 2012, Billings, Montana Howard Haines Montana Bioenergy Program Manager 406 841 5252 hhaines@mt.gov Biofuels Montana Update: EPAC Billings Biofuel Conference Biofuels Montana Update: EPAC Billings Biofuel Conference Chester MT, 3/07

2. *Most E10 is out of Billings and Missoula. Ethanol is being used for octane boost (not E10) Ethanol Use (all retail may or may not) State FYMGY blendMGY ethanol 2004172.4 2005303.1 2006303.0 2007 12.63.1gas total 2008 40.669 4.067 491.90 2009 170.679084 17.067315.175 2010 174.592936 17.459 311.197 2011 206.571 blend + 0.632197 =21.3496.324 2012 thru April198.973412.578

3. Proposed Ethanol Plants (Mont) Permitted MGY Feedstocks 0125 Wheat, corn, barley (only 1 on MDT list, 6/2012) (383 MGY in July 2008) Operating/planned cellulosic pilot plants 0 (Aug 2008 had 1 in Butte, @ 150k/year capacity)

4. *Biodiesel as B5 is not tallied (as sold in Havre) Biodiesel Use (variable, depends on cost) State FYBlend-MGY B-100 gallons 20040.345 70,000 20050.347 71,000 20060.348 71,149 2007 336,180** 2008 946,328Total Diesel, mgy 2009 802,759 245.243 2010 758,560 207.931 2011 784,598 273.570/ 958.646 2012 (thru Apr) 807,589242.179/ 808.925

5. Proposed Biodiesel Plants (Mont) Permitted MGY Feedstocks 1 0.1-0.275 Canola, safflower, camelina Total planned 0 Operating (FY 2012) 40.015Self use, used fry oil 10.100Canola, camelina, other

6. What’s Next: Biobutanol? Why: Higher energy content (24%+); Higher allowable blend rate for vehicles & pipelines (16-24%); More higher value co-products; Each gallon of biobutanol = 1.3 ethanol equivalents Process: ABE (6:3:1 advanced now 35:65:1) & others Each pound grain = about 1/3 (in weight) each of alcohols (acetone, butanol, ethanol, propanol) gases (CO2 & H2) and distillers grains

7. Biobutanol ~ Biofuels Growth? 14 billion gallon/yr (bgy) EtOH capacity (15 bgy RFS cap) 13 bgy “E10” blend wall Higher allowable 100 mgy ethanol ~ 80 mgy biobutanol (Gevo and Butamax) (plus DDGS, acetone & EtOH) or 14 bgy EtOH capacity ~ 11.1 BtOH capacity 16% (E10 equivalent) blend rate = 20.8 bgy Biorefinery or Bioremediation?

8. ProductPrice, $/ton Gasoline $833.00 ($2.5/gal ) Petroleum $612.00 ($90/bb) butanol 1,780-1,984 isobutanol 2,220-2,447 2-ethyl hexanol 2,180-2,660 Acetone 1,034-1,322 Jet fuel $901.40 fuel ethanol $714.0

9. Where to Get Help: www.biodiesel.org www.deq.mt.gov www.biodieseleducation.org http://agr.mt.gov/camelina/default.asp Howard Haines 406 841-5200, hhaines@mt.govhhaines@mt.gov Camelina

10. The End. Thanks for Listening, Questions?