POET’s Project LIBERTYUpdate and ReviewMark D. Stowers, Ph.D.October 2009© Copyright 2009 POET, LLC. All rights reserved.

95% of Our Liquid Transportation Fuels Are Derived from Oil…46% is sourced from OPEC.

We can produce all of our liquid transportation fuels from domestic renewable sources…and meet our food and feed needs while creating a bioeconomy for biobased chemicals.Available Biomass300+ bu/ac cornBillion tons of biomassCan be done in an environmentally sustainable mannerManufacturing Platform for BiochemicalsProduce More Food/ FeedProject LIBERTY is an important part of this strategy.

Available Biomass

300+ bu/ac corn

Billion tons of biomass

Can be done in an environmentally sustainable manner

Manufacturing Platform for Biochemicals

Produce More Food/ Feed

Project LIBERTY is an important part of this strategy.

Presentation OutlineProject OverviewTechnology DevelopmentFeedstock Collection, Storage and ProcessingCellulosic Ethanol ProductionMarket DevelopmentTimeline and Milestones

Project LIBERTY Goals & ObjectivesGoal: A commercial-scale cellulosic ethanol biorefinery.Objectives:Integrate cellulosic ethanol technologies with existing corn-based, dry mill ethanol technologiesImplement a sustainable biomass feedstock collection, storage, and delivery systemMaximize alternative energy production and minimize traditional energy usageEnable replication at other existing or new biorefineries

Ethanol GHG Reduction Over GasolineSource: BESS version 2008.3.0, Liska and Cassman, 2009 GREET, Wang et al, 2007.

Project OverviewExcellent progress being madeStrategic partnership with DOE, State of IowaIndustry leading collaborations paying offFarmers engaged

POET Biorefining – EmmetsburgEmmetsburg, Iowa8

Biomass Source for Cellulosic EthanolSource: National Renewable Energy Laboratoryhttp://www.nrel.gov/gis/biomass.html

Corn Cob Collection/Processing Cobs12-25% of the above ground weight of the corn stalk2 times the bulk density of stover16% more carbohydrate than stover aloneCollection OptionsSeparate corn & cob streamsGrain/cob co-mingled

Collaborating Agriculture Equipment ManufacturersFantiniAll logos and trademarks of agricultural equipment manufacturers or university logos are provided by their respective companies or institutions and are not owned by POET.

Local Corn Producers InvolvementLIBERTY Field DayNovember 6, 2008LIBERTY Blastoff Meeting, March 13, 2008

Cob Harvests2007-2008 A total of nearly 13,000 acres Iowa, South Dakota, and Texas. 13 equipment manufacturersthree cob harvest methods. Excellent farmer feedback. Feedstock analytics developed with (NREL). Economic data collected and evaluated.2009 Planning for 25,000+ acres in Iowa & South Dakota.15 equipment manufacturers. Four cob harvest methods: Towable carts, CCM, Flex-harvester, Baling. First pre-commercial harvest . Agronomics. LIBERTY Field Day. Pre-Field Day activities. OEM specific demo days

Cob Collection to Meet LIBERTY GoalsThe market for corncobs at LIBERTY alone: - average farmer has 700 corn acres - ~40% of the corn acres in a 35 mile radius770 BDT/day is equal to 246,400 BDT/year for a 320 day operating year

POET Biomass, LLC Serve the farmersInformation sourceSustainable harvestingTechnology evaluationManage the biomass supply chainSourcingProcurementHarvestLogistics

POET Research CenterScotland, South Dakota

Process Technology AchievementsDecember 2008 Lab scale performance in pilot facilityJanuary 2009 24/7 pilot plant operationFebruary 2009 Process de-buggingMarch 2009 Lignin removal process completedApril 2009 LIBERTY targets achieved at lab scale May 2009 Anaerobic digester installedJune 2009 >5 fold reduction in enzyme costCurrent total process cost – $1.00/gallon greater than corn based ethanolOctober 2009 LIBERTY design package preparation

Cellulosic Ethanol Pilot Plant

Cob Handling and Processing

Pretreaters

Fermentation

Distillation & Evaporation

Anaerobic Digester

Preliminary LIBERTY DesignsPOET Biomass LLC co-located at POET Biorefining - Emmetsburg2009 Cob StorageLIBERTY Cob Storage and HandlingCellulosic Ethanol Process LayoutValidation of Solid Fuel Boiler

Blend WallREGULATORY CAP

Market Development1) March 6, 2009 (Waiver) Growth Energy has submitted a waiver to the EPA asking them to increase the allowable ethanol blend up to 15%.2) March 27, 2009 (Flex Pump Tax Incentive) HERSETH SANDLIN LEGISLATION INCREASES AVAILABLITLY OF BIOFUELS; ENHANCES ALTERNATIVE ENERGY INFRASTRUCTURE -- Introduces Bipartisan Bill to Provide Incentives for Installing Biofuel Dispensers; Increases Demand for Clean, Domestic Sources of Fuel3)March 30, 2009 (FFV Mandate) Bill: H.R. 1476 The Open Fuel Standard Act – Promoting Choice at the Pump for Every American4) April 3, 2009 (Pipeline)HARKIN, THUNE, JOHNSON INTRODUCE BIPARTISAN LEGISLATION TO PROMOTE BIOFUEL PIPELINES Washington, D.C. – U.S. Senators Tom Harkin (D-IA), John Thune (R-SD) and Tim Johnson (D-SD) today introduced legislation that authorizes loan guarantees for the construction of renewable fuel pipeline projects.May 26, 2009 (EPA RFS2 Proposed Rule)Growth Energy gives testimony (June 9) and prepares written responses to support RFS2 volumetric ethanol increases. Growth Energy files comments with EPA September 25, 2009.

SummaryMoving to commercial scaleFeedstock business developmentCellulosic ethanol technology Market development underwayCellulosic ethanol is not another 5 years away It is hereKey factors for successE15 waiver approvalAvailability of federal loan guaranteesAvailability of capital