Biorefinery of the Future

POET Biorefinery of the Future International Fuel Ethanol Workshop Nashville, Tennessee June 18, 2008 Mark D. Stowers, Ph.D. Vice President, Research and Development POET [email_address] www.poetenergy.com

Integrated bio-refining model incorporating project development, technology innovation, design and construction, R&D, plant management and product marketing

20+ years ethanol industry experience

World’s largest ethanol producer, 23 plants in operation

1.3 Billion gallons per year

3.5 million ton of distillers’ grains

Biorefinery of the Future Transportation Bio-Refinery Elec or Steam Bio-Diesel Solid Fuel Boiler Grain Oil Proteins Ethanol DDGs CO 2 Edible Methane Anaerobic Digester Bio-Mass Power Grid Bio-Diesel Spec Chemical Feedstock Solar Power Wind Power

Biorefinery Future: Industry Challenges

Corn Ethanol as foundation

Taking cost out of corn to ethanol and reducing environmental impact

Developing and implementing cellulosic ethanol technology

Creating new opportunities using our existing manufacturing capability… building a biorefinery

Biorefinery Drivers

Research and development capacity

BPX: the next generation

Corn fractionation

Cellulosic ethanol

Alternative energy

Biochemicals/biomaterials

Sustainability of Corn Production

Steady decreases in use of pesticides and fertilizer

Future for Corn

Increasing yield while reducing fertilizer and pesticide

220 bushel/acre in 2018 and 300 bushel/acre in 2030

The Future of Corn Ethanol: It’s in the Genes

Up to 50,000 genes

Located on ten chromosomes

Estimated haploid genome size of ~2.5 billion nucleotides

Serves as the foundation for numerous studies, especially those aimed at improving the agronomic characteristics of the plant

Multiple universities and all major seed companies engaged in sequence annotation and systems and trait development

BPX: the Next Generation

Lower energy usage

Higher solids and higher ethanol yields

Improved distillers’ grains

Corn Fractionation Corn Fiber Composition Corn Fiber 100 lbs Starch (17%) Protein (11%) Fiber (59%) Ash (6%) Oil (3%) Other (4%) Cellulose (30%) Hemicellulose (60%) Galactan (8%) Mannan (2%) Xylan (60%) Arabinan (40%) Triglycerides (87%) Sterol Esters (5%) Sterol Ferulates (5%) Free Sterols (2%) Tocopherols (1%) Lignin Precursors Polyphenolics

Cellulosic Ethanol: Starts with Corn

Poet Integrated Corn Cellulose Biorefinery Ethanol Grain Corn Corn Germ Endosperm CO2 Distill Centrifuge & Dry Pre-treat Hydrolysis & Fermentation Distill Steam to Process Bran Cellulosic Ethanol Biomass Boiler Separator Solid Fuel Anaerobic Digester Liquids Boiler Biogas DDG Dryers Electric Generator DGHP Corn Cob

Solid Fuel Boiler Project

POET Biorefining –Chancellor

Solid Fuel Boiler

Waste Wood Chips

Landfill Gas burner

Chemicals to Biochemicals

Biotechnology penetration in the $1+ trillion chemical industry and $1 trillion value by 2025

2000 (actual) $67 billion 5.3%

2005 (actual) $98 billion 6.7%

2010 (forecast) $159 billion 9.6%

2025 (projection) $1000 billion 33%

Higher oil prices; ethanol volume growth; emerging new products and technologies

Source: McKinsey and Company, 2006; MBI

Selling Prices for Common Chemical Intermediates (cents/pound) Light blue = 2000 and dark blue = 2005 Economic fit between biotech and chemical markets Feasible biotech processes Source: Jim Stoppert, Cargill

Biochemical Transformation

Genetic Engineering

Genomics/Proteomics

Metabolic Engineering

Synthetic Biology

Semisynthesis

Genetic Engineering High Value Protein Product gene α Recombinant Microbe

Genomics/Proteomics

Gene Expression

When?

Where?

How?

Why?

Microarray

Metabolic Engineering

Synthetic Biology John Frost, Draths Corporation; MBI

Semisynthesis: Interfacing Microbial and Chemical Synthesis John Frost, Draths Corporation; MBI

Specialty Chemical Opportunities

Benzene replacement

Organic Acids/Alcohols

Protein-based biomaterials

John Frost, Draths Corporation; MBI

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

Biotechnology as an enabler to create a new value chain for molded materials Oil & Gas pumping Refining & Cracking Chemical Trans- formation Polymer- ization Com- pounding Molding Farms Milling Biotech Trans- formation Polymer- ization Com- pounding Molding Source Feeds Monomer Polymer Downstream Processing Source Feeds Monomer Polymer Downstream Processing Crude Oil Monomer Monomer Polymer Final Product (Plastic) Biomass Monomer Monomer Polymer Final Product (starch, cellulose) (Plastic) 2010 Current Selective participation by chemical industry Full participation by chemical industry Mix of existing players and new entrants Agribusiness companies

Fuel Ethanol Foundation