Global Scenario for development of

2G Ethanol and PROESA®

TECHNOLOGY

New Delhi, February 15th 2015

Pierluigi Picciotti

One of the top 3 producers worldwide

Polymers

60 years of excellence in process development and commercialization of plants

Engineering and R&D

Proesa™: technology leader in biofuels and chemical intermediates from non-food biomass

Sustainable Chemistry

Beta Renewables:

Beta Renewables is a joint venture, created

in October 2011, between BioChemtex and the

investment firm TPG (Texas Pacific Group)

Novozymes, Denmark-based world-class

biotech company acquired 10% share of Beta

Renewables in October 2012

Beta Renewables owns and licenses the

Proesa® technology

1st commercial-scale 2GE biofuels plant

operating in Crescentino (Italy) – 40 ktpy

Sustainable Chemistry

Our Clients and Partners:

• Global energy demand increased by 40%

• Oil demand increased by 18%, driven by transport

• Global vehicle fleet has doubled and the vast majority still use liquid fuels

• Oil production is concentrated in fewer countries

• To meet >50% of gasoline demand

• Reduce dependency on imported oil

• Help keep oil prices under control

• Stimulate rural economies and create domestic jobs

World facts in 2030 The promise of biofuels

The world needs biofuels

4 * Passenger Light Duty Vehicles | Source: OECD/IEA World

Energy Outlook 2009

Reduce our dependency on oil and CO2 emissions

5

Sources: UN-Energy, International Monetary Fund, US DoE and EPA

• The transport sector is responsible for about 25% of global CO2 emissions – and it is the fastest growing emitter

• An advanced biofuel like cellulosic ethanol will reduce GHG emissions by approximately 115%

80℅ of the world-s displaced people due to natural disasters are in Asia

Sources: National Geographic , Feb 2015

World Balance of Ethanol

[bill lit] 2012 2013 2014

Production 105 (83) 108 (88) 111 (90)

Consumption 104 (81) 107 (86) 110 (88)

Source: LMC “Ethanol Market Report 2014” (fuel EtOH)

..however ASIA is in deficit

[1000 m3] 2014 2015

Production 12356 12947

Fuel 4591 5024

Consumption 13613 14518

Fuel 5387 5806

IMPORT 2077 2402

EXPORT 731 687

Source: F.O. Licht’s “Sugar & Ethanol Asia”, Bangkok 2015

Steam Enzymes MO

Biomass

Lignin Fermentation & Distillation

Distillation & Drying

Lignin Separation

The Proesa™ Process Ethanol

Proesa™ Technology benefits:

Feedstock flexibility

Continuous process, no chemical addition, optimal sugar extraction and low enzyme dosage

Fully integrated process design using continuous equipment to enable large scale plants

Best in class technology with lowest capex and opex backed with performance guarantees

Smart Cooking

Viscosity Reduction & Hydrolysis

Electric Energy

Crescentino, Italy – World’s First Commercial Cellulosic Ethanol Plant

Ethanol Capacity: 40.000 MT / year

Footprint of 15 Ha

Biomass used: 200.000 MT

Ligno-cellulosic

feedstock (wheat & rice

straw, arundo donax)

13MW green electricity

from lignin

100% water recycle =

zero water discharge

Bioflex, Alagos, First Cellulosic EtOH Plant in Brazil

Ethanol Capacity: 22 mgy / year (2015)

Feedstock Sugar Cane Straw

Biomass used: 350.000 MT

Ground breaking:

November 2012

Beginning of Work:

February 2013

Plant Start up:

Sep 2014

Fuyang Bioproject, China

Ethanol Capacity: 200,000 MT/year

Feedstock Wheat Straw and Corn Stover

Biomass used: 1,000.000 MT

Ground breaking:

June 2014

Beginning of Work:

Jan. 2015 (civil work)

M&G Chemicals has publicly announced the plan to build a 2nd generation biorefinery in the Fuyang region,

China, which will convert approximately 1 million tons of biomass into bioethanol and bioglycols.

The biorefinery will use Proesa™ technology, licensed by Beta Renewables, and will rely on Biochemtex

expertise for the supply of critical equipment and for the construction of the plant. The size of such facility,

measured in terms of feedstock processed, will be roughly four times that of Crescentino in Italy.

We Are Gaining Momentum

We Are Gaining Momentum

Our Joint Value Proposition

The goal of this cooperation is to further de-risk the

technology, enabling profitable deployment and bankable

projects

Proesa®

Licensee

Cellulosic Ethanol Licensee

Process

guarantees

Basic Engineering

& Key Equipment

Enzyme

Supply

Mechanical

Guarantees

Enzyme

Guarantees

Thank you Dhanyavaad

BACK UP

Supporting your 2G Project from Idea to Realization

Enable Deploy Empower

Project feasibility study and investment estimates

Qualify feedstock in pilot plant

Optimize process parameters and enzymes for feedstock

Support in the development of a biomass supply chain

Support in financing

Basic engineering package

Qualify EPC contractor

Permitting support and procurement of critical equipment

Support in the construction of the plant and deployment

Start-up and training

Support in finding product off-takers

Ensure joint performance guarantees hold

Provide ongoing customer support

Supply of enzymes and yeast

+ +

Engineering Construction Start-up Operations Development

Cost of 1 ton of 2G EtOH

5 t of dry biomass + 350 $/t cash cost 1 t of EtOH + 3.5 Mwhe

Cost of Ethanol: 5 tb + 350 + CAPEX/10 - 3.5 Mwhe

Country Biomass MWh Price CAPEX Ethanol Full

Brazil 30 150 3000 275

China 40 125 1500 262

Italy 100 200 4500 600

Eastern Europe 40 120 3000 430

All values in USD

We Are Gaining Momentum – Italy

We Are Gaining Momentum – India

Cellulosic Costs Less

Crescentino – the timeline .... .... early days

Apr 2011

Jan 2012

Sept 2011

Nov 2011

• Permitting Initiated: 2010

• Orders for Critical Equipment: Sept 2010

• Permitting Obtained: Apr 2011

• Ribbon Cutting: Apr 2011

• Ground-Breaking: end June 2011

Crescentino – the timeline .... .... completion and start-up

• Mechanical completion – Energy section: end Aug 2012

• Start up – Energy section: Oct 2012

• Mechanical completion – Ethanol section: Dec 2012

• Start up – Ethanol section: Jan 2013

... in operation