“an update on range fuels’ soperton plant project”commercial cellulosic biofuels plant...

“An Update on Range Fuels’ Soperton Plant Project”

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Range Fuels’ Focus

Commercial production of cellulosic biofuels, including cellulosic ethanol, and clean renewable power from renewable biomass that cannot be used for food, and is sustainable, low cost and in excess supply.

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Range Fuels History

Formed in June 2006 by Khosla Ventures to commercialize cellulosic biofuels

Access to $82MM in federal and state funds and $80MM loan guarantee

Broke ground in Soperton, GA in November 2007 for first U.S. commercial cellulosic biofuels plant utilizing woody biomass

On April 1, 2008 announced the completion of an oversubscribed Series B round of private financing greater than $100 million

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Range Fuels History

In January 2009 the U.S. Department of Agriculture awarded the company a conditional commitment for an $80 million loan guarantee. AgSouth Farm Credit, a leader in agricultural and rural loans and part of Farm Credit Services, will be the lead lending agency on the loan

In 2009 Range Fuels personnel are moving to Georgia and operating personnel will be hired

Cellulosic biofuels production from the Soperton Plant scheduled to commence Q2 2010

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Partners are Crucial

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Limitations of Current Technology

Current production technologies use corn or sugarcane― Limited max. capacity (U.S. corn 15 BGY); tight margins― Import tax of $0.54/gallon for Brazilian ethanol

Food versus fuel― Low land efficiency for fuel production ― Sharp increase in feedstock prices ― Depleting water tables― Wide price fluctuations due to weather― Resistance from grocery and livestock industriesLower fossil energy ratio― Corn at 1:1.4― Sugarcane at 1:8― Cellulosic ethanol at 1:10

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2005 Energy Policy Act Title XVII― Established aggressive support for renewables through RFS1

2007 Energy and Independence Security Act― RFS2 with emphasis on growth in cellulosic biofuels ― 36 BGY “renewable fuels” mandated by 2022

Includes 21 BGY “advanced biofuels,” with 16 BGY from “cellulosic biofuels

2008 U.S. Farm Bill― Programs targeted to all facets along the biofuels supply chain

Growers, harvesters, transporters and producers

Increasing Biofuels Support

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Strategic Advantages

Cheaper, less volatile feedstockFlexible “high volume” feedstock supply

Producer of low carbon biofuels

Sources: Bloomberg and Timber-Mart South

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008

Volatility: Corn vs. Pulp Prices$ / Ton

CornDelivered Pulpwood – GA

― Wood chips― Municipal waste― Industrial waste― Manure

― Switchgrass― Corn stover― Olive pits― Coal

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Stable Pricing, Large Availability Using Woody Biomass

High land efficiency for cellulosic crops; low water and fertilizer inputsCellulosic availability fits demand; fewer transportation issues

U.S. Ethanol Biorefinery Locations

Source: Renewable Fuels Association

- Corn-Ethanol Production

- Major Gasoline Consumption

- Biorefineries in Production

- Biorefineries under Construction - 95% or more Federal area

- 25,000 acres of Forest Land per dot

Non-Federal Forest Land Density, 1997

Source: U.S. Department of Agriculture

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The Technology

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Technology Development

4 generations of biomass conversion testing Pilot-scale― K2A Optimization Plant

~ 5,500 hours on wood feedstock> 2,200 hours alcohol production

Catalyst systems― CC10s (2)― CC100― ~ 30,400 test hours

K2A Optimization Plant CC1000 Catalyst Reactor

― CC400― CC1000

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Technology vs. Competition

Dependent on supplier enzyme costs; High energy costs LowExternal Dependency

Locked in to initial feedstockAbility to utilize lowest-cost feedstock

Feedstock Cost

Limited by enzymesMultiple syngas derivativesProduct Options

Dilute solutions for fermentation increase total water usage

Competitive with advanced corn ethanol plants

Water Usage

Challenged by ability to process only a portion of biomass

Ability to process entirety of biomassYield (gallons/ton)

Enzymes feedstock-tailored; non-trivial to switch feedstock

Can vary by type, size, mix, moisture content; polyculture compatible

Feedstock Flexibility

Bio-Chemical ProcessesRange Fuels

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The technology can utilizei. Pine and hardwoodsii. Pulpwoodiii. Tops and limbs (slash)iv. Understoryv. Pre-commercial thinningsvi. Urban debrisvii. Herbaceous energy cropsviii. Other

Benefits of Technology Extend to Flexibility in Feedstock Use

• Fiber structure is unimportant

• Focus on delivered energy cost ($/mmBtu)

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Range Fuels’ Soperton Plant - The Right Location

Soperton, GA

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Range Fuels Soperton Plant

Plant is permitted for 100MM GPY cellulosic biofuels

Project will be completed in phases

Phase 1― Construction is underway

Equipment is being delivered to the siteConstruction activities increasing weekly

― Mechanical completion in Q1 2010 and commissioning in Q2 2010― Consumption of ~ 250 tons of renewable biomass per day

beginning with “clean chips”

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Aerial View of Soperton Plant

Range Fuels DrCommerce Dr

Warehouse/Offices

Process Area

Woodyard Area

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Soperton Plant Phase 1 - Process Area

Devolatilization Section

Reformer Section

Quench Section

Catalytic Conversion

Section

Pressure Boundary Feed

System

Gas Cleanup Section

Product Storage

Area

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Soperton Plant Phase 1 - Woodyard

Dryer

Truck DumpScale

ReclaimerChip Pad

Hammermill

Day Storage

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Today – existing forestry resources― Pulpwood― Fuel chips ― Mill residuals

Additional phases and future plants― Getting more out of what’s there

o In forest residue and un-merchantable timbero Pre-commercial thinnings

― New sources of renewable biomasso Purpose grown trees o Herbaceous energy crops

― Other non-food biomass feedstocks― Maintain focus

Feedstock Supply - The Supply Chain Will Evolve and Grow…

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Range Fuels’ Focus

Commercial production of cellulosic biofuels, including cellulosic ethanol, and clean renewable power from renewable biomass that cannot be used for food, and is sustainable, low cost and in excess supply.