1. Philip W. Madson President Cincinnati, Ohio U S A

2. THE FUTURE OF FUEL ETHANOL THE FUTURE OF FUEL ETHANOL Small Grains and Cattle Leading the Way!

3. MORE THAN 6,000 ETHANOL PLANTS WORLDWIDE SOURCE: DR. JOHN MURTAGH

4. RANGE OF TECHNOLOGIES EMPLOYED

6. Bioagra

7. DO SMALL GRAINS WORK FOR ETHANOL?

8. Abengoa Bioenergy Netherlands

9. Osage

10. ENSUS

11. ENSUS

14. n n MAX. HOURLY WIND PRESSURE BIOETANOL GALICIA

15. CASTILLA y LEON

16. Agrana

17. TARKIM

18. POUNDMAKER

19. NORTH WEST TERMINAL UNITY, SASKATCHEWAN

20. HUSKYENERGYHUSKYENERGY Minnedosa, Manitoba Lloydminster, Saskatchewan

21. n PERSPECTIVE n AGRICULTURAL INTEGRATION n FUTURE FEEDSTOCKS n TECHNOLOGY ASSESSMENT n HOW CAN MONTANA WIN? AGENDAAGENDA

22. TODAY IN USA “SQUARE BOX IN A CORNFIELD” IN A CORNFIELD” TODAY IN USA “SQUARE BOX IN A CORNFIELD” IN A CORNFIELD”

23. Natural gas

24. THE “SQUARE BOX” RISK THE “SQUARE BOX” RISK - COMMODITY CYCLES

25. WORLD COMMODITY PRICES ??

26. U.S. FUEL ETHANOL PRODUCTION - Second Cycle - 1991-1999

27. CAN THE COMMODITY RISK BE MITIGATED ?? CAN THE COMMODITY RISK BE MITIGATED ??

28. MULTIPLE FEEDSTOCKS WHEATWHEAT BARLEYBARLEY CORNCORN MILOMILO TRITICALETRITICALE WHEATWHEAT BARLEYBARLEY CORNCORN MILOMILO TRITICALETRITICALE

29. HUSKYENERGYHUSKYENERGY Minnedosa, Manitoba Lloydminster, Saskatchewan

30. TARKIM

31. CASTILLA y LEON

32. WHEAT, BARLEY, AND OTHER GRAINS YIELD PROPORTIONAL TO STARCH CONTENT

33. EXAMPLE 20 MM GPY PLANT EXAMPLE FEEDSTOCK Ton/Yr WHEAT BARLEY 210,000 (+8%) CORN (base) DDGS Ton/Yr 70,000 (+26%) 234,000 (+21%) 98,000 (+77%) 194,000 55,500

34. EXAMPLE 20 MM GPY PLANT EXAMPLE FEEDSTOCK Ton/Yr WHEAT BARLEY 210,000 (+8%) CORN (base) DDGS Ton/Yr 70,000 (+26%) 234,000 (+21%) 98,000 (+77%) 194,000 55,500 Know your livestock!

36. INTEGRATED AGRICULTURE FOOD, FEED, FUEL

37. Internal Animal Feeds Electricity and boiler Renewable "Green" Grid Electricity Ethanol (Fuel Grade) W D G (Wet Distillers Grain) Anaerobic Digester Waste Beef Facility Beef Milk Nitrogen BioFertilizers as N-P-K DDG Export (Dried Distillers Grain) Dairy Facility Ethanol Plant Water Waste Waste and solubles Steam and Electricity

38. E3E3E3E3

40. REEVE AGRI-ENERGY

41. POUNDMAKER

42. Animal Feed Coproducts The Forgotten Value

43. Animal Feed Coproducts Value Value of Corn

44. Consequences of Industry Practice re: Animal Feed Coproducts If agriculture system is viewed as a whole, the livestock industry captures the differential. Therefore, the value-added money remains in the ag community.If agriculture system is viewed as a whole, the livestock industry captures the differential. Therefore, the value-added money remains in the ag community. If export, the differential value-added potential is lost to USA agriculture.If export, the differential value-added potential is lost to USA agriculture.

45. Barley ETHANOL Osage Bio Energy DEHULLEDBARLEY(91-93%) STEAM Barley Dehulling Ethanol Plant Biomass Boiler BARLEY PROTEIN MEAL RENEWABLE FUEL PELLETS HULLS(7-9%)

46. SO… IS THERE MORE THAN JUST CORN? SO… IS THERE MORE THAN JUST CORN?

47. SO… IS THERE MORE THAN JUST CORN? YES!SO… IS THERE MORE THAN JUST CORN? YES!

49. GENERATION 1.5

50. LET “MOTHER NATURE” HELPLET HELP

51. “Wheat” “Energy Wheat” “Wild Wheat” “High Protein” “High Starch”

52. ENERGY WHEAT AND BARLEY Biomass Fuel

53. TECHNOLOGYASSESSMENTTECHNOLOGYASSESSMENT

54. Is Corn the Bridge to Cellulose Ethanol? Is Corn the Bridge to Cellulose Ethanol?

55. Commodity Cycles Investment Mania Bankruptcies Premature Announcements Funky Science Commodity Cycles Investment Mania Bankruptcies Premature Announcements Funky Science Is Corn the Bridge to Cellulose Ethanol? Is Corn the Bridge to Cellulose Ethanol?

56. Is Corn the Bridge to Cellulose Ethanol? Or Has the Bridge Been Blown? Is Corn the Bridge to Cellulose Ethanol? Or Has the Bridge Been Blown?

57. Do we need a new paradigm? Do we need a new paradigm? Purpose-grown small grains Biomass-fueled boilers Livestock integration Generation 1.5

58. Is Corn Really the Bridge to Small Grains Feedstocks? Is Corn Really the Bridge to Small Grains Feedstocks?

59. We must always remember… We must always remember…

60. “ ALCOHOLISM ” IS A DISEASE “ VALUE - ADDED PROCESSING ” IS A BUSINESS “ ALCOHOLISM ” IS A DISEASE “ VALUE - ADDED PROCESSING ” IS A BUSINESS