1. Agenda n Introduction to Biofuels n Biotechnology can help make Biofuels cheaper n The next generation of biofuels and the US economy n Israeli biotechnology is helping biofuels

2. Introduction to The World Of Biofuels Starch from grains is broken to sugars, sugars are fermented to produce ethanol Plant oils are broken to fatty acids to produce biodiesel Ethanol (up to 10%) is blended with gasoline to be used in available gasoline engines Biodiesel (up to 20%) is blended with diesel to be used in available diesel engines Ethanol Biodiesel Blend with Gasoline Gasoline Engines BioEthanolBioEthanol BioDieselBioDiesel Blend with Diesel Diesel Engines FUEL

3. 3 * GEL – Gasoline equivalent liters Biodiesel consumption (B. Li) n Soybean and Canola n Corn Ethanol (Gasoline) Ethanol consumption (US – B. of GEL*) Biodiesel (Diesel) The world consumption of Biofuels is growing EU Target – 5.75% of transport fuel in 2010 US – 30 % of transport fuels in 2030 EU Target – 5.75% of transport fuel in 2010 US – 30 % of transport fuels in 2030

4. US Ethanol Fuel Consumption is Growing In the US ethanol consumption is growing US Ethanol Production  Can be mixed with gasoline  Higher octane than gasoline  Non toxic Pros:  Has 65% energy content of gasoline  Mixes with water. Could not be transported through conventional pipes  Competes with food/feed on resources Cons: n Ethanol refineries are located in the “corn belt”

5. US Government Decision - Go for More Biofuels n Develop a renewable and DOMESTIC source of biofuels n The aim of US government- replacing 100 Billion Gallons (BG) of motor fuel (30% of the 2004 demand) by 2030 2005: The 30:30 initiative by the Bush Administration US transportation fuel demand is growing fast

6. How much corn ethanol can the US produce? The conclusion – Corn ethanol is NOT the solution for the future needs Percentage of Corn used for Ethanol Corn Ethanol - Major Source For Biofuels? n Using 20% of corn production is replacing 4% of current use of gasoline for transportation n US corn production increase is slow (1% a year)

7. 7 Ethanol an be made from any biomass! Corn Starch Cellulose Ethanol FUEL FFV- flex fuel cars can Use gasoline or ethanol Sucrose All plants Cellulose is the most abounded bio material in the world!

8. 1BT of biomass is needed to produce 20% of the US gasoline! Need about 1BT of biomass in 2030 n To meet the US government 2030 goal, a 1BT of biomass should be produced to make 71 BG of ethanol. n To make 1 BT of biomass, additional cellulose feedstock is needed n Cellulose feedstock could not compete with conventional crops on land and water Wheat Straw Forest Residues Corn Stover Cellulose Perennial Crops

9. Price of Biomass Ethanol Production is Expected to Decline Market size of $34B for cellulosic ethanol feedstock $ 156 for GEB $ 83 GEB $ 46 GEB  To become competitive, costs of cellulosic ethanol production must be sharply reduced

10. Cellulose Refineries Will Spread All Over The Country. IOGEN 18 MG/Y switchgrass n Total production of 200M gallons in 2009 n Locations are spread all over the US n US government funded these refineries with a total of $385M n Congress is likely to approve $750M loan guaranties for enlarging production BlueFire Ethanol 19 MG/Y Waste wood, Abengoa 11.4 MG/Y Corn Stover. Wheat Straw Alico 13.9 MG/Y Waste wood POET 125 MG/Y Corn stover Range Fuels 9 MG/Y Waste wood

11. How can Biotechnology help? Improved Plant with. Standard Plant Improved Plant: Increased Yield ( ) n 25% higher yields under normal and stress conditions n Generic function in plants: Applicable to other crops Candidate 1Control

12. 12 Evogene’s Activity in Biodiesel Improving Existing Crops n Higher Yields Soybean - Agreement with Canola – Improved seeds being developed n Increased oil for Biodiesel Model plant results underway “Biodiesel Oriented” Crops n Evogene - Ormat 3 year project, $2M initially Develop non edible, non arable commercial crops for Biodiesel Output: Pre-commercial variety field trial

13. The next step : Breeding/GM Biomass Varieties for Marginal Land n Large areas left out from the growing cycle n Drought, a major limitation n Salt tolerance is important when using waste water