Deployment of Third-Generation Cellulosic

Biorefineries

Tim Eggeman, Ph.D., P.E.TAPPI International Bioenergy & Bioproducts Conference

Memphis, TNOctober 16th, 2009

Company History• Incorporated in 2002

• Series A ($6MM) in 2006– Led by Mohr Davidow Ventures (MDV) and Firelake Capital

Management– Proved out technology at lab scale

• Series B ($34MM) in 2008– Co-led by Globespan Capital Partners and PrairieGold

Venture Partners, follow on from Series A VCs – Valero Energy Corporation – Money raised for Demo plant

• Current Status = Execution on Demo Plant

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ZeaChem TechnologyCONFIDENTIAL

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• “Third-generation”― Best of bio & thermo chemical processes

― Hybrid cellulosic technology – “Prius”

― Highest theoretical yield 160 gal/BDT

• Proven components & processes― Natural organism; no enzymes

― Ultra-low CO2 net impact

• Product platform flexibility― Biofuels (ethanol, butanol)

― Biochemicals (ethyl acetate, propylene)

ThermoChemical

BioChemical

ZeaChem Technology

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HydrogenResidue to Gasifier

Sales

Biomass:• Hardwood• Softwood• Switch Grass• Corn Stover

EthanolSales

Ethyl Acetate

Sugar Solution

Acetic Acid

ZeaChem’s Core Technology

Theoretical Yields

Cellulose, 40

HemicelluloseSugars, 18

HemicelluloseAcetate, 2

Lignin, 30

Other, 10

Biochemical OnlyYield: 78-112 gal(neat)/BDT

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Biochemical Processing

100

Balance61-44

Thermochemical OnlyYield: 112 gal(neat)/BDT

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100

Balance30

Mixed Alcohol Synthesis

Thermochemical Processing

Balance14

Syngas70

Values in Italics Indicate Chemical Energy Flow Normalized to Biomass = 100

Yield assumes 200 gal(neat)/BDT for 100% Chemical Efficiency

Syngas FermentationYield: 112 gal(neat)/BDT

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100

Thermochemical Processing

BiochemicalProcessing

Balance30

Balance14

Syngas70

ZeaChem HybridYield: 156 gal(neat)/BDT

78

100

60 40

Thermochemical Processing

Biochemical Processing

Hydrogenolysis

Balance4

Residue8

Balance18

Ester52

H2

30

6

$/g

al

Yield Drives Economics

Ethanol Price

ZeaChem Pilot Plant

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Fermentation Data

0

10

20

30

40

50

60

70

0 50 100 150Time, Hr

Ace

tic A

cid,

g/l

Corn SyrupPoplar Hydrolyzate

Exceeds TargetTiter in 60 Hours

Target Titer = 50 g/l

Fermentation Works WellWith Hydrolyzates.

Mixed Sugars, Wood BreakdownProducts, etc. Issues Are Solved.

About GreenWood Resources

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A Resource That Lasts Forever™

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• ZeaChem process is feedstock agnostic– Hardwood, softwood, grasses, corn stover, etc.

• Dedicated sustainable energy crops– Geographic diversity, “Grow where we go”

• Contract with GreenWood Resources – Supply high yield hybrid poplar feedstock

• Benefits– Efficient harvesting, cost effective– “Store on the stump”– Integrate energy crop + biorefinery =

minimal footprint, low CO2

Feedstock Strategy

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Efficient Harvesting

Maximizing Land Productivity

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miles/gal,Efficiency

Auto

gal/BDTYield,

Factory

BDT/ac/yrYield,Farm

rmiles/ac/yty,Productivi

Landxx

Solving “Food vs Fuel” DebateFarmYield

FactoryYield

AutoEff.

LandProd.

CornEthanol

150Bu/ac/yr

2.7Gal/bu

14Mile/gal EtOH

5,670Mile/ac/yr

1st Gen.Cellulosics

7.5BDT/ac/yr

90Gal/BDT

14Mile/gal EtOH

9,450Mile/ac/yr

AdvancedCellulosics

15BDT/ac/yr

135Gal/BDT

14Mile/gal EtOH

28,350Mile/ac/yr

AdvancedCellulosics +

Auto Efficiency

15BDT/ac/yr

135Gal/BDT

25Mile/gal EtOH

50,625Mile/ac/yr

0 20,000 40,000 60,000

Ad. Cell. +Auto Eff.

AdvancedCellulosics

1st Gen.Cellulosics

Corn Ethanol

Land Productivity, Mile/ac/yr

ZeaChem Carbon Advantage

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Fuel Technology GHG % Reduction from Gasoline

Gasoline 0%

Corn Ethanol 21-24%

Cellulosic Ethanol w/Stover 86-89%

ZeaChem w/Energy Farm 94-98%

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Ethanol Ethylenes Propylene &Acrylics

Propylene Glycol(consumer product additive)

C2 Chain C3 Chain

• Start with C2 chain: ethanol, ethyl acetate

• Expand to C3 chain – and beyond– Dramatically increases market scope– Hedge against market volatility

Advancing Biofuels and Biochemicals Markets

• Construction begins in 2009, Operation begins in 2010• Hybrid poplar + others feedstocks• 75 Construction jobs, 25 Operating jobs• Next Steps:

– Scale to 1st Commercial Plant– Retrofits to pulp mills and corn ethanol plants

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Deployment of Demo Plant

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• Strategic Partners

• Feedstock

• VC Investors

• Research

Partnerships

• Multi-stakeholder organization to develop comprehensive voluntary sustainability standards for the production of biomass and its conversion to bioenergy– Feedstock developers and producers, Environmental NGOs,

Biorefinery developers, Petroleum industry

• Sustainability categories include:– Biological diversity, Climate change, Integrated Resource

Management planning, Socio-economic well-being, Soil quality, Water quality and quantity

• Will recognize existing sustainability standards including Forest Stewardship Council (FSC), Sustainable Forestry Initiative (SFI), and Program for the Endorsement of Forest Certification (PEFC)

• Draft standard open for public review and comments through November 9th

www.csbp.org

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• Highest yield, best of biochemical and thermochemical

• Proven technology, naturally occurring organism

• Dedicated sustainable energy crops

• Product flexibility: biofuels and biochemicals

• Deploying at demo plant scale

ZeaChem Summary

Thank You

Tim Eggeman(303) 248-7774

time@zeachem.com

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