1

RTP Renewable Fuel Oil (RFO)

Robert Graham, CEO Ensyn Corp

Houston June 2011Bunker and Residual Fuel Oil Conference

Production of renewable fuel oils (RFO) and chemicals from solid wood and other ligno-cellulosic feedstocks

Commercial production since 1989

Only known commercial thermal process that produces high yields of liquid fuels from non-food biomass

Current focus: aggressive expansion of production capacity

Key alliances in place: UOP (a Honeywell company), Tolko, others

Multiple projects underway worldwide

Ensyn’s role:

Produce and sell fuels via project ownership

License RTP technology

Ensyn Corporation - Overview

RTP Renewable Products

Early commercialization focused on renewable chemicals + renewable fuel by-products (no fuel standard)

Recent development of RTP Renewable Fuel Oil (RFO) for heat and power applications

RTP Renewable Transportation Fuels are in progress

RTP Technology

Rapid Thermal Processing (RTP™)

Fast thermal conversion (FCC “cousin” – no catalyst)

First commercial plant 1989 – 7 commercial plants built & operated

Commercial Merchant plant in Renfrew Ontario, 180 green tpd

Multiple new RTP projects in engineering stage

Engineering & Supply of RTP

RTP Background

Continuous development since 1984

Current focus: RTP Renewable Liquid Fuels

Alliance with UOP, a Honeywell company

UOP/Honeywell:

Engineering / performance guarantees

Upgrading technology for transport fuels

Credibility

Development capabilities

Worldwide sales network

Ensyn:

RTP technology, patents, I.P.

Operating history / partnerships

Proven commercial roll-out in two industries

Know-how (business and technical)

High Level, Alberta – Tolko Industries

400 tpd RTP processing wood residues

Outputs: RFO, heat, resins, (power)

Engineering underway by UOP

Ground-breaking end 2011

Coll’Energia, Italy – Industria e Innovazione

150 tpd RTP processing forest thinnings

Outputs: electricity

RTP + stationary diesel

Engineering underway by UOP

Ground-breaking 3Q 2011

Capacity Expansion Underway

Premium One, Malaysia – Premium Renewable Energy

400 tpd RTP processing oil palm residues

Outputs: electricity, heat

RTP + stationary diesel

Engineering underway by UOP

Ground-breaking end of 2011

First of multiple 400 tpd projects in Malaysia & Indonesia

Crane, Massachusetts – ReEnergy

400 tpd RTP processing forest residues

Outputs: RFO, heat

Engineering by UOP

Capacity Expansion Underway (cont.)

+ significant pipeline of additional projects in Canada, USA and internationally

RTP Renewable Liquid Fuels Strategy

20+ years industrial experience combusting RTP liquids

Red Arrow, Wisconsin

Manitowoc Public Utilities, Wisconsin

Over 65 million litres delivered for process heat

New: RTP Renewable Fuel Oil (RFO)

“Conditioned” RTP liquid fuel for broad industrial use (ASTM Standard)

For heat, replacing LFO and HFO in existing boilers

For power, as a fuel for stationary diesels

Fuels – what we have today

Multiple commercial RFO demonstrations in an array of different boilers - Hosted at boiler sites of Ensyn’s partners & customers

Development of plug-and -play RFO fuel delivery system and burner nozzles

Most recent – Crane & Co. Inc., Byron Weston Power Plant facility, Dalton Massachusetts

Honeywell-sponsored political and media event

RFO – broad commercial demonstration

Demonstrated in 15 MMBtu/h “Boiler #1” at Crane’s Byron Weston power plant (LFO, HFO and Nat Gas)

10,000 BTU/h steam (540G / 390 psig)

RFO fuel delivery system supplied by Ensyn/Honeywell

No changes to burner controls, nozzles, etc.

Direct comparison with HFO (resid fuel oil) operations and emissions

RFO – Crane & Co Demonstration

RFO – Crane & Co Demonstration

RFO Emissions – Crane & Co

Oxygen SOx NOx Fuel Steam

(vol%) (ppm) (ppm) (Mmbtu/h) (lb/h)

HFO 6 401 256 12.8 6,400

RFO 6 0 154 15.0 9,704

1. CO emissions were about 70% lower with RFO, and are typically < 50 ppm

FUEL EMISSIONS 1. FLOW RATES

RFO – Fuel Oil Applications

RFO can be co-fired or used alone in conventional commercial and industrial boilers with little or no modifications

A standardized RFO Combustion package developed to retrofit petroleum fuel oil boilers for 100% RFO use

RFO combustion emissions compare favorably with fossil fuel Standardized RFO

combustion test unit

RFO – Power Generation

Major alliance with a leading diesel engine manufacturer

Successful trials of RTP RFO in large stationary diesels since mid 2010

Over 100,000 gallons of RTP RFO produced for engine tests

Commercial availability targeted for Q3 2011

RTP + Diesel = significant efficiencies

2 x the power output per unit biomass

Projects in Italy & Malaysia based on the RTP + diesel configuration

21 ISO Tankers of RTP RFO

produced and shipped for

diesel tests

Major initiative with UOP - Production of gasoline, diesel and jet fuel from RTP Liquids

Drop-in solution – products are indistinguishable from petroleum counterparts

Success in UOP labs– commercialization targeted for 2013

Current focus on scale-up, logistics, catalyst optimization

Integrated Bio-Refinery, Hawaii, under construction, RTP + Upgrader, $25 MM DOE grant

RTP Renewable Transportation Fuels

Crude RTP

liquids

production

Combustion of

crude RTP liquids

for drying and

space heating

Combustion of

crude RTP liquids

in utility and

industrial boilers

Combustion of

conditioned RTP

Renewable Heating

Oil (RFO) in

Industrial Heating

and Power

Applications

Fully upgraded

on-road

Transportation

Fuels

1989 1992 1997 2010 2013

Evolution: RTP Liquid Fuels

RTP Renewable Fuel Oil Production Cost

Barrel of oil equivalent = $ 66

Barrel of oil equivalent = $ 31

0

2

4

6

8

10

12

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0 10 30 50 70

US$

/MM

Btu

US$

/US

Gal

lon

Biomass Feedstock Cost (US$/dry tonne)

RTP Renewable Fuel Oil Production Cost(Inc. OPEX and Recovery of Capital)

RTP Renewable Fuel Oil Production Cost

Barrel of oil

equivalent = $ 78

Barrel of oil

equivalent = $ 44

0

2

4

6

8

10

12

14

16

0

0.2

0.4

0.6

0.8

1

1.2

0 10 30 50 70

US$

/MM

Btu

US$

/US

Gal

lon

Biomass Feedstock Cost (US$/dry tonne)

RTP Renewable Fuel Oil Production Cost(Inc. OPEX, Recovery of Capital + 10% Return on Capital)

Summary

Ensyn & RTP: a unique, patented thermal conversion technology with a proven commercial track record across multiple industries

Strategic partnerships in place

Multiple projects announced, others in pipeline

RTP Renewable Fuel Oil (RFO) available today, for heat and power

Transportation fuels will follow

Engineering & supply of equipment, with guarantees, by industry leaders