The RTP Pyrolysis Pathway Maximizing Value of Biomass Residues

April 2011

Presentation Overview
Ensyn Corporation overview RTP Technology Renewable Fuel Products Project Initiatives Summary

Ensyn Corporation - Overview

Ensyn is a US, technology-based producer of renewable fuels and chemicals Core technology is Rapid Thermal Processing (RTP), a fast pyrolysis technology for conversion of cellulosic wood feedstocks Commercial production of renewable chemicals and fuels since 1989 Food chemicals application of RTP developed in mid 1980s and sold to Red Arrow Products Company (Wisconsin) Petroleum heavy crude upgrading application of RTP developed in late 1990s and sold to Ivanhoe Energy Inc in 2005

Current Focus: Renewable Liquid Fuels

Major alliance for renewable liquid fuels established with UOP Inc., a Honeywell company, in 2008 Ensyn has now developed a market-ready, conditioned RTP Renewable Heating Oil (RHO) from cellulosic wood residues RTP transportation fuels in development Initial projects announced in Malaysia, Alberta and Italy Business development initiatives worldwide Ensyns role:
License RTP technology Participate in RTP projects

RTP Background

Continuous development since 1984 Current focus: renewable fuels

Envergent Technologies: UOP/Honeywell connection

UOP/Honeywell:
Engineering / performance guarantees Piggy-back PyOil technology (upgrading) 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)

UOP: FCC & RTP

RTP is close analogue to FCC (Fluid Catalytic Cracking) FCC technology is key process in gasoline production UOP has been designing FCC units since the early 1940s a co-inventor Licensed over 250 units more than 50% of world-wide capacity Unit sizes from 1,500 to 200,000 BPD of capacity

RTPTM

UOP FCC

UOP facilitates scale-up, engineering and supply

RTP Technology

Prototype RTP Fuels Plant

Renfrew Fuels Commercial Prototype Facility Producing RTP liquids since 2007 Renfrew, Ontario Nameplate capacity: 75 dry tpd Processing experience: up to 100 dry tpd
Approx. 18,000 gal/day of RTP Renewable Heating Oil @ 75% yield

RTP Technology

Pyrolysis Oil

Solid Biomass

RTP: 20+ years of commercial operations The worlds only commercial fast pyrolysis process Patented, proprietary

RTP Flow Diagram

Minimal net utilities RTP is self-sustaining process

Basic Product Yields

PyOil

Biomass

Bio Gas

80% 70% 60% 50% 40% 30% 20% 10% 0% BioOil Bio- Char Gas

Char

RTP Mass-Energy Balance 75 tpd basis

Net Energy for Drying
~4.8 ~4.0 MMbtu/hr Flue Gas MMbtu/hr Product Gas

Wet Biomass
~47wt% moisture ~10,895 lb/hr ~48.9 MM btu/hr

Biomass Dryer

RTPTM
Dry Biomass
~6 wt% moisture ~6,298 lb/hr ~48.9 MM btu/hr ~5.3 MMbtu/hr

Pyrolysis Heating Oil

** Net Utilities ~ 0.9 MM btu/dry ton processed **

~72.7 wt% of feed ~34.8 MM btu/hr ~11,000 gal per day

PYROLYSIS HEATING OIL YIELDS

Mass Energy Energy Content Equivalence Value Energy Density

~ 73 wt% of dry biomass ~ 71 % of dry biomass ~ 75,000 btu/gal ~ 1.3 ~ 6 times dry feed

Renewable Liquid Fuels

RTP PyOil Liquid Fuels Development

Crude RTP liquids have been combusted commercially for 20+ years for heating, drying or process steam Crude RTP liquids combustion tests have been successfully carried out in numerous boiler/combustion systems up to 60 MWth (200 MMbtu/hr) Conditioned heating oil product developed in 2010 for broader applications for heting and power generation = RTP Renewable Heating Oil (RHO) RHO has enhanced properties compared to ASTM-D7544-10 Standard Specification for Pyrolysis Liquid Biofuel RTP liquids combustion boiler, Rhinelander, Wisconsin

Evolution: RTP Liquid Fuels

Fully upgraded on-road Transportation Fuels

Combustion of crude RTP liquids for drying and space heating Crude RTP liquids production Combustion of crude RTP liquids in utility and industrial boilers

Combustion of conditioned RTP Renewable Heating Oil (RHO) in Industrial Heating and Power Applications

1989

1992

1997

2010

2012

RTP Renewable Heating Oil (RHO)

Development of a Conditioned heating oil for broad applications in heating and power generation= RHO RHO can be co-fired or use alone in conventional boilers with little or no modifications Additional uses for RHO in stationary diesels for power generation A standardized PHO Combustion package developed to retrofit fuel oil boilers for 100% RHO use RHO combustion emissions compare favorably with fossil fuel
Standardized RHO combustion test unit

Renewable Heating Oil & GHG

120 100

Comparison of GHG Emissions Cradle to Delivered Energy Energy extraction GHG emissions

gCO2 eq/MJ

80 60 40 20 0
Petroleum Crude Oil Hard Coal RHO Natural Canadian RHO from Gas Oil Sands from Crude Oil Logging Willow Residues RHO from Poplar RHO from Sawmill Residues

RHO production footprint similar to other energy alternatives GHG emission approaches zero
Assumed biomass transport distances:

200 km for logging residues 25 km for short rotation forest crops 0 km for sawmill residues

Comparison of GHG Emissions Cradle to Delivered Energy, and Burned

120 100

gCO2 eq/MJ

80 60 40 20 0
Petroleum Fuel Oil Hard Coal Natural Gas

Life Cycle GHG emissions through combustion

RHO Lifecycle footprint greener than other alternatives

70-90% lower GHG emission SOX emission similar to natural gas

RHO from RHO from Logging RHO from RHO from Sawmill Willow Poplar Residues Residues
UOP 5398A-34

Power Generation
Power generation with turbine genset is proven Ensyn is working with a leading diesel engine manufacturer on a RHO-fed diesel genset Trials are underway Diesel engine with guarantees expected in late 2011 Dramatic increases in efficiency over conventional cogen

Transport Fuels
Major initiative with UOP Production of gasoline, diesel and jet fuels from RTP LIquids Drop-in solution products are indistinguishable from petroleum counterparts Addition of hydrogen/use of catalysts Success in smaller scale Current focus on scale-up, logistics, catalyst optimization Commercial availability in 2012

Projects Initiatives

Tolko Industries - Alberta

Joint venture established between Ensyn and Tolko Industries JV to develop 400 tpd RTP facility in High Level, Northern Alberta Feedstocks: wood residues from High Level dimensional lumber mill Products: heat, power and resins Resins to be used for Tolko engineered panels Engineering and design: UOP Construction to start late 2011

Premium - Malaysia
Premium Renewable Energy established and licensed to develop RTP projects in Malaysia, Indonesia and part of India Focus is palm residues and sugar cane baggasse Premium has announced intent to build 29 RTP facilities over next ten years in Malaysia for conversion of palm residues. The entire project would: Process 7.7 million tons of palm waste / year Produce 3.8 million tons of RTP liquids / year RTP liquids to be used for heat and power Engineering: UOP Construction to begin late 2011

premium
R E N EW A B L E E N E R GY

INDI - Italy
RTP Project in central Italy being developed by Industria e Innovazione, a leading Italian power/renewable energy group Project will process 150 tons per day of mixedsource wood residues Principal product will be power (diesel genset) Engineering: UOP Constriction to start late 2011

Summary
Ensyn & RTP: a unique, patented pyrolysis technology with a proven commercial track record across multiple industries Strategic partnership for liquid fuels with industry leaders UOP/Honeywell Focus on non-food wood and agricultural residues as RTP feedstocks RTP is an attractive technology Pathway that allows for the conversion of wood/wood residues to: Available now: A series of commercial products with attractive economic returns: heating fuels, power, chemicals Available soon: Transport fuels, specialty chemicals