Moving Beyond BiodieselCommercializing Advanced Biofuels in Truck Fleets Today

Colin Huwyler, CEONovember 11, 2014

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Current Situation:• Biodiesel adoption has “stalled.”

• 11M U.S. diesel trucks still need to:– Reduce fuel costs.– Reduce greenhouse gas emissions. – Increase use of domestic & sustainable

fuels.

• CNG and LNG options are weak.

Biofuel industry needs to jumpstart next generation solutions.

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Regional Fleets

Biofuel Partner• Pure Biofuel that meets Optimus’

Standard

Optimus • Vector conversion system • EPA certifications for combination

of Vector with Optimus-Grade Biofuel

The Total Solution:

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• Reduce fuel costs up to 25%

with payback in less than one year

• Reduce lifecycle GHG emissions over 80%

• Much easier than CNG or LNG

• Allows existing biofuel providers to

significantly grow their businesses with an

additional source of revenue

The Results:

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• Defined– Mechanically refined triglycerides

• Common Sources– Distillers’ corn oil– Yellow grease– Other plant oils

• Providers– Biodiesel refiners– Ethanol refiners– Renderers/Grease collectors

The Optimus Fuel:

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Optimus Fuel Process:

1 USDA Livestock, Poultry & Grain Market News, 10/24/14, Yellow Grease - Central US

2 The Feasibility of Producing and Using Biomass-Based Diesel and Jet Fuel in the United States, Milbrandt, Kinchin, and McCormick - National Renewable Energy Laboratory

3 iBid

**Cost estimates on a per gallon basis**

Feedstock~1.771

Mechanical Refining~$.30

Optimus Grade Biofuel$2.07

Chemical Processing~$.772

Biodiesel - B100$2.54

Hydroprocessing~$1.38+3

Renewable Diesel$3.15

Process/Cost Product

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• $9k retrofit

• Volumetric efficiency 1x

• Utilizes existing stations

• Defaults to diesel if biofuel

unavailable

• Serviceable by any diesel

mechanic

• $50 - 70k retrofit

• Volumetric efficiency .25x

• $1-6 MM fueling stations

• Limited fuel access

restricts range

• Requires CNG-certified

mechanic and facility

Comparison:

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Optimus provides a much faster payback than CNG

for any size fleet or consumption rate/vehicle

Key Assumptions:

Biofuel CNGFuel Station Conversion: $150k

$2000kFuel Savings/Equiv.Gal: $1

$2Vehicle Conversion: $9k

$70k

0 1 2 3 4 5

$(10,000,000) $(8,000,000) $(6,000,000) $(4,000,000) $(2,000,000)

$- $2,000,000 $4,000,000

Payback Period(for 100 Trucks @

7500gal/yr)

Biofuel CNG

Years

Comparison:

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• EPA certifications– Per engine basis

• NREL messages Re: Pure biofuels– Based on research from the 1980’s

• Fuel availability– End user assurance before technology investment

• CNG propaganda machine– Not a “Clean” or “Green” solution– Reversing progress made to slow climate change

Challenges:

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• Expand biofuel partner network

• Increase # of EPA certifications

• Educate market

• Implement solutions with

diesel engine OEMs

Next Steps:

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Thank you!

Colin Huwyler, CEO

c.huwyler@optimustec.com

Optimus Technologies

412.727.8228

www.optimustec.com

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The Optimus Vector Systemis a bi-fuel solution that enables a truck to run exclusively on advanced biofuels. To optimize fuel savings and emission performance, the Vector System powers the engine on renewable fuel 100% of the time other than startup and shutdown. It allows fallback to diesel operation if necessary.

Product:

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The City of Pittsburgh Public Works has implemented the Vector System on trucks used for road maintenance and snow removal operations. The vehicles have run more than 85% of the time, even on the coldest of days, on locally sourced biofuel. “We are very impressed and very happy with the Vector systems’ operations, especially during the harsh winter we just had,” said Paul Ostrowski, fleet contract manager for the Office of Management and Budget.

Case Study:

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-78% -11%

Lifecycle GHG Emissions vs. Diesel

+20%

Comparison:

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Fuel Availability:

Biodiesel (B5+) Stations1

1 http://www.biodiesel.org/extpages/fsretailmap.aspx#, Accessed 10/23/14