Advances in Ethanol Doug Berven Director of Corporate Affairs POET, LLC

20+ years ethanol industry experience Over 1.5 billion gallons of production Largest producer of ethanol in the world Over 1,500 team members 11,000 farmer investors 30,000 producers delivering grain 26 ethanol plants in production Vertically integrated business model Technology leader in our field POET Company Profile

20+ years ethanol industry experience

Over 1.5 billion gallons of production

Largest producer of ethanol in the world

Over 1,500 team members

11,000 farmer investors

30,000 producers delivering grain

26 ethanol plants in production

Vertically integrated business model

Technology leader in our field

Triple Bottom Line People - Social 30,000 farmers delivering grain 494,000 employed due to ethanol in 2008 320M barrels of oil that ethanol replaced in 08 Planet - Environment Ethanol offers over 50% reduction in GHG to gasoline Water use for ethanol decreased 26.6% from 2001 Total energy use for ethanol decreased 21.8% Profit - Economic + $65.6 billion to Gross Domestic Product +$19.9 billion in consumer income +$11.9 billion in Federal tax revenue Replaced $32 billion in crude oil imports

People - Social

30,000 farmers delivering grain

494,000 employed due to ethanol in 2008

320M barrels of oil that ethanol replaced in 08

Planet - Environment

Ethanol offers over 50% reduction in GHG to gasoline

Water use for ethanol decreased 26.6% from 2001

Total energy use for ethanol decreased 21.8%

Profit - Economic

+ $65.6 billion to Gross Domestic Product

+$19.9 billion in consumer income

+$11.9 billion in Federal tax revenue

Replaced $32 billion in crude oil imports

Improvements in Corn Production

Corn Sustainability Improvements 1987-2007 Source: Field to Market Land Use Soil Loss Irrigation Energy Climate Amount of land to produce one bushel of corn Soil loss per bushel, above a tolerable level Irrigation water use per bushel Energy used to produce one bushel Emissions per bushel 37% 69% 27% 37% 30%

Potential for Food and Fuel 2007 2018 2030 Acres (millions) 86.5 86.5 86.5 Bushels per acre 151.1 211.5* 300** Total Corn Production 13.1 18.3 26 Total Production for Food and Feed 10.9 12.6 15.2 Total Ethanol from Corn (billions of gallons)*** 9.2 24.7 48.6 Same amount of land 40% more grain for food and feed 428% more corn for grain-based ethanol *DuPont Prediction. **Monsanto Prediction. ***Ethanol yield based on current industry yield of 2.8, and projected improvements of 2.9 in 2018 and 3.1 in 2030.

Land Use Impacts A study by Stanford recently concluded that there are 1 – 1.2 billion acres of idled agricultural land United States farms only 324 million acres From 1987 to 2007 corn production increased 41% in bushels per acre By 2030 Corn production will double on same amount of land Deforestation is down 50% while ethanol increased 5X

A study by Stanford recently concluded that there are 1 – 1.2 billion acres of idled agricultural land

United States farms only 324 million acres

From 1987 to 2007 corn production increased 41% in bushels per acre

By 2030 Corn production will double on same amount of land

Deforestation is down 50% while ethanol increased 5X

Fueling the United States Top crude oil sources and the US Ethanol contribution (Gasoline Equivalent) Source: US Department Of Energy. Adjusted to reflect API gravity gasoline yields.

New Developments in Ethanol Production Natural Progression of Innovation

Developed and owned by POET Exclusive to POET network plants Only NO COOK process in the industry Reduced energy costs Additional starch accessibility conversion to ethanol (higher yield) Reduced fermentation byproduct formation (additional higher yield) Significant reduction in VOC emissions Increased nutrient quality in DDGS DDGS flowability and anti-caking properties

Developed and owned by POET

Exclusive to POET network plants

Only NO COOK process in the industry

Reduced energy costs

Additional starch accessibility conversion to ethanol (higher yield)

Reduced fermentation byproduct formation (additional higher yield)

Significant reduction in VOC emissions

Increased nutrient quality in DDGS

DDGS flowability and anti-caking properties

4 year research, development, and pilot plant project—extended one additional year Dry mill fractionation of the incoming corn with proprietary equipment and processes Fractionation of corn to Bran, Germ and Endosperm Value added co-product(s) Research and develop bran conversion to ethanol Research and develop value for all new co-products Air emissions from co-product dryers are reduced approximately 75% Reduction in “non-fermentables” in the fermenter by ~ 50% Reductions in plant energy requirements of 20 to 25%

4 year research, development, and pilot plant project—extended one additional year

Dry mill fractionation of the incoming corn with proprietary equipment and processes

Fractionation of corn to Bran, Germ and Endosperm

Value added co-product(s)

Research and develop bran conversion to ethanol

Research and develop value for all new co-products

Air emissions from co-product dryers are reduced approximately 75%

Reduction in “non-fermentables” in the fermenter by ~ 50%

Reductions in plant energy requirements of 20 to 25%

Other Advances Zero Water Discharge - Online POET Biorefining – Bingham Lake 3.2 gallons to 2.6 gallons Ethanol Pipeline to East Coast Partnership of POET and Magellan $3.5 billion investment Several proprietary production advances Several Co-product advances And More…

Zero Water Discharge - Online

POET Biorefining – Bingham Lake

3.2 gallons to 2.6 gallons

Ethanol Pipeline to East Coast

Partnership of POET and Magellan

$3.5 billion investment

Several proprietary production advances

Several Co-product advances

And More…

Cellulosic Ethanol At POET, we believe cellulosic ethanol will be done both commercially and economically in the next 3-5 years Cellulosic ethanol is not possible without the foundation of grain-based ethanol

At POET, we believe cellulosic ethanol will be done both commercially and economically in the next 3-5 years

POET’s Project LIBERTY Transformation of a conventional grain based dry mill ethanol facility into an integrated bio-refinery in Emmetsburg, IA – Bolt on Model Poet Biorefining – Emmetsburg Pilot scale plant in Scotland, SD

Transformation of a conventional grain based dry mill ethanol facility into an integrated bio-refinery in Emmetsburg, IA – Bolt on Model

Project LIBERTY Overview Over $200 million capital investment in coordination with the U.S. DOE Biorefinery will produce 125 million gallons of ethanol 25 million from cellulosic feedstock Cellulosic feedstocks are corn cobs & corn fiber Multiple synergies with the corn & cellulose model Collaborations –DOE, OEMs, Universities, Biotech companies, Farmers

Over $200 million capital investment in coordination with the U.S. DOE

Biorefinery will produce 125 million gallons of ethanol

25 million from cellulosic feedstock

Cellulosic feedstocks are corn cobs & corn fiber

Multiple synergies with the corn & cellulose model

Collaborations –DOE, OEMs, Universities, Biotech companies, Farmers

How will America Benefit According to the Department of Energy: Every 1 Billion gallons of ethanol will produce between 10,000 and 20,000 jobs Five billion gallons of Cellulosic ethanol made from cobs alone can produce between 50,000 and 100,000 good paying green jobs. 5 Billion gallons of cellulosic ethanol from corn cobs alone would displace and additional 325,000 barrels of oil per day

According to the Department of Energy:

Every 1 Billion gallons of ethanol will produce between 10,000 and 20,000 jobs

Five billion gallons of Cellulosic ethanol made from cobs alone can produce between 50,000 and 100,000 good paying green jobs.

5 Billion gallons of cellulosic ethanol from corn cobs alone would displace and additional 325,000 barrels of oil per day

American Benefits – cont. Another DOE study shows we have 1 billion tons of available biomass At 85 gallons per ton that is 85 billion gallons of ethanol 85 billion gallons of ethanol equals 60% of the US transportation fuel supply 60% is the amount of petroleum we import to the US on an annual basis That means a lot of Good Green JOBS at home and a lot of money that stays within our borders!

Another DOE study shows we have 1 billion tons of available biomass

At 85 gallons per ton that is 85 billion gallons of ethanol

85 billion gallons of ethanol equals 60% of the US transportation fuel supply

60% is the amount of petroleum we import to the US on an annual basis

That means a lot of Good Green JOBS at home and a lot of money that stays within our borders!

Ethanol Benefits Gasoline enriched with ethanol burns cleaner due to the additional oxygen Up to 30% fewer tailpipe emissions Reduces ozone-forming pollutants Reduces greenhouse gas emissions of over 50% No adverse effect on groundwater Without ethanol, gas prices would rise by 14.6% Ethanol reduces U.S. dependence on foreign oil Ethanol adds to the economic vitality of the U.S.

Gasoline enriched with ethanol burns cleaner due to the additional oxygen

Up to 30% fewer tailpipe emissions

Reduces ozone-forming pollutants

Reduces greenhouse gas emissions of over 50%

No adverse effect on groundwater

Without ethanol, gas prices would rise by 14.6%

Ethanol reduces U.S. dependence on foreign oil

Ethanol adds to the economic vitality of the U.S.

Another American Evolution

POET Biorefinery Concept Ethanol BFrac ™ Plant Yellow Corn Corn Germ Endosperm CO 2 BPX ™ Sacch & Ferment Distill Centrifuge & Dry DGHP Pre-treat Hydrolysis & Ethanol Fermentation Distill Corn Stover Steam to Process Bran Ethanol Biomass Boiler Separator Solid Fuel Anaerobic Digester Liquids Aerobic wastewater Treatment system Steam Generator Biogas Hydrolysis & Specialty Chemical Fermentation Product Recovery Specialty Chemical DDG Dryers Other Solid Fuel Thin Stillage/Syrup

Closing Comments Agriculture and Ethanol Industries are serious about sustainability We need to balance the Triple Bottom Line Ethanol is a threat to the Status Quo Ethanol is getting better while oil is getting worse Ethanol is cleaner, greener, renewable, viable and available

Agriculture and Ethanol Industries are serious about sustainability

We need to balance the Triple Bottom Line

Ethanol is a threat to the Status Quo

Ethanol is getting better while oil is getting worse

Ethanol is cleaner, greener, renewable, viable and available

Thank You