East Coast Ethanol, LLC

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Welcome
East Coast Ethanol, LLC
East Coast Ethanol, LLC
C. Thompson Associates
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Disclaimer
This presentation is for informational purposes
only. It is not an offer to sell
securities. Nothing that is said or presented
should be perceived as an offering to sell
securities.
East Coast Ethanol, LLC
East Coast Ethanol, LLC
C. Thompson Associates
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Goals of the East Coast Ethanol

• Create Options for Farmer

East Coast Ethanol, LLC
East Coast Ethanol, LLC
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Historical Farmer Share of the Food Dollar
East Coast Ethanol, LLC
Source The Carbohydrate Economy Volume No. 3,
Issue No. 3, Fall 2001
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Goals of the East Coast Ethanol

• Create Options for Farmer
• 2. Economic Impact

East Coast Ethanol, LLC
East Coast Ethanol, LLC
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Economic Impact

• We send over 1Billion Dollars/Year to countries
  that dont like us.
• These plants create 45 jobs at the plant
  w/average pay of 40k/job.
• An additional 35 jobs are provided to capture and
  market CO2.
• An additional 1000 indirect jobs are added.
• Over 100MM of economic impact per year.

East Coast Ethanol, LLC
East Coast Ethanol, LLC
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Goals of the East Coast Ethanol

• Create Options for Farmer
• Economic Impact
• 3. Environmental and Energy Benefits

East Coast Ethanol, LLC
East Coast Ethanol, LLC
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Good for the Environment and Mobile Energy

• 33 less green house gases during combustion.
• The US spends 50Billion/year on respiratory
  illness related to air pollution
• Half life of 24 hours vs. up to 500 years for
  petroleum products.
• Net Energy Balance of 1.3 vs. 0.8 for petroleum.
• A Step Towards Energy Independence.

East Coast Ethanol, LLC
East Coast Ethanol, LLC
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Goals of the East Coast Ethanol

• Create Options for Farmer
• Economic Impact
• Environmental and Energy Benefits
• Return on Equity Business Model

East Coast Ethanol, LLC
East Coast Ethanol, LLC
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Business Fundamental Proximity Corn
East Coast Ethanol, LLC
East Coast Ethanol, LLC
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U.S. Ethanol Plant Locations
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C. Thompson Associates
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Business Fundamental - Corn Trends
2007 Planted Acres USDA.
1.90
2.06
2.43
1.94
1.85
2.32
2.42
3.20
1.82
1.97

• Demand has driven corn prices up
• Farmers responded with highest planted acreage
  since 1944
• Yields are trending higher (i.e. 120 to 150
  bushels/acre in 10 years)
• Would need to convert 40 of irrigated acreage in
  SE to meet 100 of ECE corn needs

• PRX October 07 Forecast
• Total Production 13.3 billion bushels
• Carry In 1.3 bi. Supply Total 14.6 billion bu.
• Total Exports 2.35 billion bushels (16 )
• Total Surplus 1.9 billion bushels (13)

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C. Thompson Associates
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Historical Ethanol Development
Policy Development Timeline
2008
Business Fundamental Driven Growth
Environmental Policy Growth
Survival by Policy Era
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Business Strategy Fundamentals The Price of
Oil

• Key Uncertainties
• Geopolitics
• Reserves
• Economic Growth

Energy Information Administration Reference Cases
OPEC Oil Embargo
93.53/barrel NYMEX Futures Pricing 10.29.07
U.S. Invades Iraq
Iraq Invades Kuwait
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Ethanol vs. Wholesale Gasoline
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Regional Corn Consumption
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Southeast Ethanol Market

• Questions?

• Source Energy Information Administration

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Strategic Advantage
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Development Stage Organization
East Coast Ethanol Board of Directors (17 Members)
Executive Committee
Project Management C.Thompson Associates
GA, FL, NC, SC Site Development Committees
Design/Build Partners
Professional Services
Strategic Partners
Strategic Resources

• Fagen, Inc.
• ICM

• Brown Winick Legal Counsel
• Christianson Associates Forecasts
• Internal Accounting Steve Elliott
• Hein Associates External Auditing

• US Water
• US Energy
• Ethanol Marketing
• Grain Marketing Procurement
• Norfolk Southern
• CSX
• TranSystems

• PRX
• Southern Ethanol Council
• Local and State Economic Development Resources

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Time Line Goals

• Start indication of interest meetings February
  2008
• Planned effective date with SEC July 2008
• Financial close October 2008
• Start construction Fall 2008
• Subsequent plants every 60 days
• Construction schedule 18 to 22 months per plant
• First plant start-up Summer 2010
• Timeline is contingent upon successful sale of
  membership units and financial close. Any
  funding delays may result in delayed plant
  construction and start-up.

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Summary
Base Business Model

• Destination Plant - 27 MM/year
• Strong Ethanol Market 18 MM/year
• Strong Feed Market 11 MM/year
• Logistics Advantage Strategic
  Resouces Rail/Truck/Water
• Regional Economic Impact 500B/year
• Regional Jobs 4000-5000
• Energy Independence 1B/day
• Environmental Benefit Billions/year
• Energy Balance 1.3E vs. 0.8G

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Food vs. Fuel - Rise of Corn Price

• The impact of 1.00 Corn Price Increase on
  Livestock, Poultry and Consumer Food Prices

Source John M Urbanchuk The Relative Impact of
Corn and Energy Prices in the grocery Aisle
(LECG,LLC 6.14.07)
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Examples of Corn Price in Food
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Net Energy Balance
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