1. “Focus on Energy: Using Biomass for Fuel”

2. Making ethanol work for the world. ™ Larry Johnson Business & Project Development

3. Collection Handling Storage

4.  “Green Energy” Mandates State renewable portfolio standard State renewable portfolio goal www.dsireusa.org Solar water heating eligible * † Extra credit for solar or customer-sited renewables Includes non-renewable alternative resources WA: 15% by 2020* CA: 20% by 2010 ☼ NV : 25% by 2025* ☼ AZ: 15% by 2025 ☼ NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) HI: 40% by 2030 ☼ Minimum solar or customer-sited requirement TX: 5,880 MW by 2015 UT: 20% by 2025* ☼ CO: 20% by 2020 (IOUs) 10% by 2020 (co-ops & large munis)* MT: 15% by 2015 ND: 10% by 2015 SD: 10% by 2015 IA: 105 MW MN: 25% by 2025 (Xcel: 30% by 2020) ☼ MO: 15 % by 2021 WI : Varies by utility; 10% by 2015 goal MI: 10% + 1,100 MW by 2015* ☼ OH : 25% by 2025 † ME: 30% by 2000 New RE: 10% by 2017 ☼ NH: 23.8% by 2025 ☼ MA: 15% by 2020 + 1% annual increase (Class I Renewables) RI: 16% by 2020 CT: 23% by 2020 ☼ NY: 24% by 2013 ☼ NJ: 22.5% by 2021 ☼ PA: 18% by 2020 † ☼ MD: 20% by 2022 ☼ DE: 20% by 2019* ☼ DC: 20% by 2020 VA: 15% by 2025* ☼ NC : 12.5% by 2021 (IOUs) 10% by 2018 (co-ops & munis) VT: (1) RE meets any increase in retail sales by 2012; (2) 20% RE & CHP by 2017 29 States have an RPS 6 states have goals KS: 20% by 2020 ☼ OR : 25% by 2025 (large utilities )* 5% - 10% by 2025 (smaller utilities) ☼ IL: 25% by 2025 WV: 25% by 2025* †

5. BioFuels Production and RFS2

7. Development and consumption of biomass by DONG Energy starting from 1989.

8. Inbicon’s raw material know-how: DONG Energy’s 100% biomass-fired power plant.

9.  368MMDT/Y- Forest Products  998MMDY/Y- Agricultural  1,368,000,000 Total Dry Tons Available  Potential for > 100 Billion Gallons of Ethanol

10.  Woody Biomass  Designated Energy Crops  MSW and Industrial Wastes  Crop Residues

11.  Lumber Harvest Residues  Milling Byproducts  Tree Plantations  Orchard Trimmings  Forest Management  Urban Green Wastes

12.  Sorghum  Sugarcane  Miscanthus  Switchgrass  Poplars/Willows  Algae  Exotics

13.  Grain Processing Byproducts  Industrial Wastes  Consumer Wastes  Food and Beverage Byproducts

14.  Wheat and Barley Straw  Rice Straw  Corn Stover  Corn Cobs  Bagasse  Grasses

15. Inbicon Biomass Refinery 50MT/hr (20Mgpy) On-Site CHP Plant SteamPower Multi-fuel (as req’d) lignin Ethanol C5 Molasses Straw/Stover/Cob Power Steam Existing 100Mgpy Grain-based Ethanol Facility Energy Reduction of 50-100%+

16. 1,200 MT/day – 20Mgpy

18. Baler from Krone capable of pressing 4’X4’X8’ bales weighing about 1300 lbs.

20. Tarp Covering U.S.

21. Wheat Straw Storage: Stokervarme, DK

22. Property (%bdb)Corn StoverCorn Cobs ASH CONTENT 8.13%3.78% CELLULOSE (C6 sugars) 37.49%43.50% HEMI‐ CELLULOSE CONTENT (C5 sugars) 26.54%36.50% LIGNIN CONTENT 16.74%11.60%

23.  Higher capital costs  Lower operating costs  Very clean product  Contains all the cobs  Reduced volume per acre  Less moisture control  Compliments farmers’ schedule

24.  Lower capital costs  Higher operating costs  May contain 10% dirt  Contains very few cobs  Greater volume per acre  More moisture control  Requires farmer scheduling

26. One Pass Stover Bale with Cobs

27. One Pass System

28.  200,000 acres @ 2.5 tons/acre  500 farmer contracts @400 acres/farmer  Each contract will have options/variables  $15 million in inventory @ $30/ton  250 acres for storage sites

29.  800,000 bales @ 13 pound density  20,000 bales/day in a 40 day harvest season  555 semi-loads per day @ 36 bales/load  50 balers required @ 100 acres/day

30.  What does the plant need?  Cob/stalk ratio  What will the plant accept?  Moisture content  What is the pricing formula?  Contract specifications

31.  Use GIS analysis and regional crop history  Coordinate radius with road delivery system  Estimate tons harvested per acre  Calculate % of total available acres needed

33. Defined 25 mile radius of selected plants

34. Tracking of biomass bales per field

35. Feedstock Supply Analysis Create Procurement Company Develop Procurement Model Initiate Procurement Contracts Define Collection and Storage Logistics Implement Program

36.  Procurement and delivery contracts  Define logistical and timing details  Credit-worthy feedstock supplier  Financing of procurement company  Staffing - personnel  Equipment requirements  Deposit on farmer contracts  feedstock payment  Fuel purchase and storage  Regional Storage Sites  Insurance

37.  Host plant subsidiary  Farmer owned cooperative  Independent company

38.  Identify and contact growers  FCS office (USDA)  Host plant customers  Grain elevators  Farm groups and associations

39.  Local weather reporting system  GPS field locations  ID and quantify product at harvest  Match harvest with each contract  Identify and coordinate storage sites

40.  Federal (BCAP)  State (Economic Development)  Local (TIF – Utilities)

41.  Form a local advisory committee  Identify and contact growers  FCS office (USDA)  Host plant customers  Grain elevators  Farm groups and associations

42.  Negotiate harvest schedule with growers  Quality control and land use details  Incentives and penalties  Payment guarantees  On farm storage where applicable

43. Full time staffing activities  General Mgr. and CFO (1)  Office and clerical (1)  Acquire and service contracts (3)  Scheduling and coordinating harvest (1)  Staff hiring and training (1)  Manage harvest crews (1)  Equipment maintenance (2)  Fuel supply infrastructure (1)  Manage feedstock inventories (1)

44.  Part time staffing (harvest)  Harvest and collection (~50)  Trucking from field to storage (~45)  Manage fuel delivery (1)  Collect and coordinate data (~5)  Miscellaneous “Gofer” (1)

45.  Identify all growers within a plant radius  Conduct grower informational meetings  Negotiate and sign contracts for delivery

46.  Balers, semis, loaders, stackers, wagons, fuel trucks, choppers, windrowers  Purchase  Lease  Custom Contract

47.  Harvesting: Balers, Tractors, Loaders  Trucking: To Plant and Regional Storage Sites  Stacking: Roadside and Regional Storage

48.  Grading and Drainage  Road Access  Zoning and Permitting

49.  Roadside storage  Farmer storage  Tempering  Bale covering  Weighing and accounting

50.  Field location and harvest date  Bale count, moisture and density  Ownership recording and receipt  Reconciliation with Contract  Storage site destination

51. Inventory Management  Storage specifications  Fire Protection  Transport from Storage to Plant  Permitting and Zoning  Dust Control  Feedstock Security

52. Can it be done? Absolutely!

53. Will it happen? Absolutely!

54. When will it happen? When we get technology, government, and financing working together.

55. Making ethanol work for the world. ™