1. Progress in Advancing Cellulosic Biofuels: The Iogen Story
Cellulosic Ethanol
Progress in Advancing Cellulosic Biofuels: The Iogen Story
Brian Foody
Iogen Corporation
ABLC
Washington D.C.
April 22, 2014

2. Overview Who is Iogen Path to Commercialization Changing the Game
Playing Capital Light

3. Making Cellulosic Ethanol Since 2004
Who is Iogen?
Making Cellulosic Ethanol Since 2004
2004
2005
Over 30 years development, with $500 million invested
Over 300 patents issued or pending
Strong focus on technology validation and commercial implementation
History with blue chip partners
2009
2007
2010
2011
Enzyme Business: Historical relationships include:

4. Who is Iogen? A great team
One of the world’s largest and most experienced in cellulosic biofuels
9 years developing, designing, de-bugging and scaling-up cellulosic ethanol technology in our integrated demo plant
Achieved steady, reliable production operations - integrating biotech, process tech and engineering
Projects developed in Canada, US, Germany and Brazil
Extensive feedstock supply chain experience, with contracts totaling over million MT/yr

5. Who is Iogen? Seen a lot: Design Cycle Strategy
Extensive Pilot and Demonstration Plant Programs
1984: First pilot plant (wood, 1 TPD input)
1992: Second pilot plant (with Amoco, 1 TPD input)
2001: Demonstration plant (straw to sugars, ~ 20 TPD)
2004: Upgrades to produce ethanol (straw to ethanol)
2007: R6: Upgrades in co-product processing
2009: R7: Simplified design
2011: R8: Upgraded pretreatment, hydrolysis
2013: Adapted operation on bagasse
Evolution of Designs with Extensive Data and Operation
Cost/process models linked with performance data
Many demo scale cycles of iteration including:
design > operation > redesign
Many design issues identified and resolved, patents filed
Cycle of Process Design Improvement
R1 to R8
Develop
Operate
Implement

6. Addressing the demonstration challenge
9 years of problem solving and improvement
Robust, high yield process with attractive economics
Extensive validation and testing through 24/7 integrated operations
Integration of designs with operating experience
Iogen’s $100 million demo plant in Ottawa, Canada
Recent focus: sugar cane bagasse
Initial lab & pilot screening
6 months operation in the plant
Adapted designs from observations of differences between bagasse and 9 year baseline experience

7. Overview Who is Iogen Path to Commercialization Changing the Game
Playing Capital Light

8. We’re implementing CE at commercial scale in Brazil
Brazilian Sugar Mills
Raízen Costa Pinto Mill, Piracicaba, Brazil
Brazil’s largest cane processor, Iogen partner
24 sugar/ethanol mills,
~ 65 m tonnes/yr. crushing
~ $30 billion sales
~ 40,000 employees
The Costa Pinto 2G Ethanol Project – Start-up Q4 2014
US ~$100 million
40 m litres/yr. 2G ethanol
Bagasse as feedstock
Residue to boiler
Once operational, Raizen plans for 7 more plants

9. Why is Brazil interested in Cellulosic Ethanol?
Increases yield per acre by 50% or more
Takes the pressure off opening expensive new cane plantations
Uses materials that now go to waste or are burned
Enables mills to “extend” their operating season

10. Co-location with existing sugar cane mills  creating synergies

11. Abundant and relatively cheap feedstock
Bagasse is available at low cost, prepared for use, in steady supply
Access to sugarcane trash currently left on the field

12. Significant cost savings
Capex savings by using existing equipment and other site infrastructure
Opex shared across an existing site

13. Focus on 2G scale-up
Allows us to focus on scale-up and de-risking of the 2G process
Pave the way for roll-out of larger scale plants with much less risk
Developing know-how on the integration of 2G with 1G

14. The Costa Pinto Cellulosic Ethanol Project
Operational by the end of 2014

15. Overview Who is Iogen Path to Commercialization Changing the Game
Playing Capital Light

16. What does the game look like?
Rough landscape:
Product markets: driven by the RFS / commodity prices
Yields: gal/MT
CAPEX: $6 - $10/gal/yr
Typical strategic choices
Drive improvements in the yield / cost curve
Simplify to make it cheap
Complicate to add yield / product revenue
Source low cost feedstock
Tipping fee for MSW vs “pay to collect” ag residues, etc.
Generate large by-product revenues
Get financial support on capital

17. What does the game look like?
Rough landscape:
Product markets: driven by the RFS / commodity prices
Yields: gal/MT
CAPEX: $6 - $10/gal/yr
How good, really, are our yields?
Biotech processes can drive very high yields, but (at least conventionally) on only 50% - 55% of feedstock
45% - 50% of the feedstock:
Doesn’t make it to market; and
Doesn’t capture renewable fuel premiums
Can all our feedstock sell as fuel?
Potential for twice our current yields and half our current unit capital costs

18. Renewable Hydrogen Content (“RHC”) as a drop-in biofuel
Bioconversion Residue
Renewable Biogas
Renewable H2
Renewable H2 Content in Gasoline or Diesel
RINs and LCFS credits
Process steps
“Renewable biogas” is made by anaerobic digestion and/or gasification/methanation of bioconversion residues
“Renewable Hydrogen” is made by using biogas to displace non-renewable natural gas that is already used to make hydrogen in steam methane reformers.
“Renewable Hydrogen Content” (RHC) is made by deploying the renewable hydrogen in refinery units where hydrogen is already incorporated into the fossil fuel backbone and the final product is transportation fuel.
Iogen has established a proprietary position in this approach:
U.S. Patent No 8,658,026
U.S. Patent Application No 13/722,522 Notice of Allowance

19. Implementation in Conventional Oil Refineries
Key “drop-in” features
The process uses existing refinery equipment and involves no process or capital changes
Refiners’ assets are not made obsolete by RHC cellulosic biofuel production
Potential for RHC fuels is on the order of 7 billion gallons (ethanol equiv)/yr
about 14X the current capacity for CNG/LNG
H2 Source
H2 Sink

20. What does the game look like?
The old landscape:
Product markets: driven by the RFS / commodity prices
Yields: gal/MT
CAPEX: $6 - $10/gal/yr
The new landscape:
Yields: >150 gal/MT
CAPEX: <$5.00/gal/yr

21. Overview Who is Iogen Path to Commercialization Changing the Game
Playing Capital Light

22. The Deployment Challenge – Played Capital Light
What does it take to roll-out cellulosic biofuel?
Significant amounts of (other people’s) money
Can you catalyze a roll-out as a strict licensor?
Project development for cellulosic biofuel development offers some unique challenges –
Sophisticated and novel feedstock acquisition and logistics challenges
Sophisticated and novel technology, both to scale-up and sell to investors
Iogen’s take on it:
We intend to be capital light – but more than a licensor
Making projects happen;
Integrating “best” technology
Making projects succeed
It’s critical to be open to effective alliances and collaborations

23. We’re active developing several sites in the U.S.
Developing a large cellulosic biofuel facility in KS area
Feedstock: wheat straw
Products: cellulosic ethanol, RHC biofuel
Front end development under way
Potential for substantial benefit to the region
Increased farm income
Local economic activity
EXAMPLE ONLY

24. Thank You