ETHANOL

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BIOMAN 2009 Brian Roach Venture Manager
ETHANOL FULTON, NY
July 27, 2009
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Topics to Cover

• A Developing Industry
• Northeast Biofuels First in NY
• The Perfect Storm
• The Plant
• The Future

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Bubble Growth 2005 - 2008

• Unheard of profitability
• 3 year payback for new plants (1.80- 2.00/gal)
• Construction Boom
• Overcapacity built
• Margins decline
• Discretionary production disappears

Bubble Bursts
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2008 Stats

• 9 Billion Gallons produced in 2008
• 170 operating bio-refineries in 26 States
• Target 10.5 Billion Gallons in 2009
• Nearly 9 of Americas Gasoline Supply
• Record Exports of Distillers
• Per acre yield continues to improve

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The Impact

• Investment in technology
• Collaboration Academia Industry
• Infrastructure capability and efficiency
• Job growth in agribusiness
• Awareness of complexities of energy
• Momentum toward alternatives

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Northeast Biofuels

• Brownfield retrofit of Miller Brewery
• Destination model approx. 2.4 BGPY
• Central to heart of NE agriculture
• Access to transportation infrastructure
• Solid employee base
• Strong Academic resources

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The Perfect Storm

• EPC Contract signed May 2006
• Construction begins July 2006
• Design construction delays
• Testing begins August 2008
• Commodity market volatility
• Testing indicates problems
• Cash tightens Chapter 11 January 14

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New Opportunity

• Sale to Sunoco Closes June 15
• ICM engaged to address design flaws
• Mobilize reconstruction mid fall
• Resume start up April 2010

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Why Sunoco?

• A pioneer in evaluating and testing the
  commercial viability of alternative fuels.
• Sunoco history - development of alternatives.
• Recognized value of Fulton plant in market
• Opportunity for future growth
• Anchors Sunoco presence in Northeast

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MASH PREPARATION
FERMENTATION
CO2
HAMMER MILLS
YEAST PROPAGATION
YEAST HYDRATION
FERMENTATION
MASH SLURRY
LIQUEFACTION
JET COOKER
COOK WATER
Enzymes
Enzyme
Backset
Nutrients
Ammonia
Enzymes
Corn Oil Extraction System (future)
Whole Stillage
BEER WELL
DISTILLATION COLUMNS
CENTRIFUGES
ANAEROBIC TREATMENT MODULE
EVAPORATORS
Wet Distillers Grains
Syrup
MOLECULAR SIEVES
DAY TANKS
Syrup
DRYERS
DISTILLATION
Dry Distillers Grains
FINAL PRODUCT TANKS
LIQUIDS AND SOLIDS SEPARATION
Ethanol to Load-out
Denaturant
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Production Numbers

• Operating Cycle 353 days
• Ethanol Production 100 MGPY
• CO2 Production 807 Tons/day
• DDGS Production 914 Tons/day
• Corn Feed Rate 101,556 bu/day
• Rail Load Rate 750 gpm

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Project Plan

• Complete Design Development
• Mobilize Contractors
• Complete Modifications
• Flush / Hydro test
• First Grind
• Performance Testing
• Steady State Operation

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Keys to Success

• Maximize Value of Existing Products
• Improvements in Production Efficiency
• Alternatives to Fossil Fuel for Production
• Integrate GHG footprint to Strategic Planning
• Integration of Cellulosic and Biomass
• Advance Transportation Alternatives
• Improve Risk Management Strategies
• Academic Research Partnerships
• Meaningful job creation / local economic impact

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• To survive, the ethanol industry must stand on
  its own merits, in the absence of subsidies,
  tariffs and other political support systems.