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

2. EXPLORING THE PROSPECTS EXPLORING forfor ETHANOL GENERATION 1.5 ETHANOL

3. DEFINING GENERATION 1.5 n Gen 1: sugar, starch (conventional) – Commercial technology (financeable) n Gen 2: Lignocellulose – Technology not commercial

4. DEFINING GENERATION 1.5 n Gen 1: sugar, starch (conventional) – Commercial technology (financeable) n Gen 1.5: sugar, starch (new sources) – Existing technology / integrations n Gen 2: Lignocellulose – Technology not commercial

5. OVERVIEW

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

7. RANGE OF TECHNOLOGIES EMPLOYED

9. Bioagra

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

11. Natural gas

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

13. WORLD COMMODITY PRICES ??

14. GENERATION 1.5

15. n SMALL GRAINS AS FEEDSTOCK n AGRICULTURAL INTEGRATION n FUTURE FEEDSTOCKS n TECHNOLOGY ASSESSMENT n HOW CAN EVERYBODY WIN? AGENDAAGENDA

16. DO MULTPLE FEEDSTOCKS WORK FOR ETHANOL?

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

18. Abengoa Bioenergy Netherlands

21. n n MAX. HOURLY WIND PRESSURE BIOETANOL GALICIA

22. CASTILLA y LEON

23. Agrana

24. TARKIM

25. POUNDMAKER

26. NORTH WEST TERMINAL UNITY, SASKATCHEWAN

27. HUSKYENERGYHUSKYENERGY Minnedosa, Manitoba Lloydminster, Saskatchewan

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

29. 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

30. 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!

32. INTEGRATED AGRICULTURE FOOD, FEED, FUEL

33. 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

34. E3E3E3E3

36. REEVE AGRI-ENERGY

37. POUNDMAKER

38. Animal Feed Coproducts The Forgotten Value

39. Animal Feed Coproducts Value Value of Corn

40. 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.

41. Why do we worry about the blend wall and ignore the feed wall?

42. LIVESTOCK THE PARTNER TO GRAIN ETHANOL

43. SO… IS THERE MORE THAN JUST SQUARE BOXES IN CORNFIELDS? SO… IS THERE MORE THAN JUST SQUARE BOXES IN CORNFIELDS?

44. SO… IS THERE MORE THAN JUST SQUARE BOXES IN CORNFIELDS? YES! SO… IS THERE MORE THAN JUST SQUARE BOXES IN CORNFIELDS? YES!

46. LET “MOTHER NATURE” HELPLET HELP

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

48. ENERGY WHEAT AND BARLEY Biomass Fuel

50. ALTERNATIVEFEEDSTOCKSALTERNATIVEFEEDSTOCKS

51. SunSpuds TM SUGAR – Not Grain, Not Cellulose TUBER – Proprietary Hybrid of Sunflower and Jerusalem Artichoke PERENNIAL – High Resistance, Low Input Agricultural Crop FARMING & STORAGE – Modified Potato Practice

52. Plant growth to 10 ft.

53. SunSpuds Tubers

54. Ethanol Feedstocks Comparison Ethanol Feedstocks Comparison Basis: 30MM GPY

55. SunSpuds TM Above-ground biomass for boiler fuel (or cellulose conversion)

56. TECHNOLOGYASSESSMENTTECHNOLOGYASSESSMENT

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

58. 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?

59. 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?

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

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

62. We must always remember… We must always remember…

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