business overview to build and operate multiple...

• Super Biodiesel

• Renewable Diesel

• BioJet Fuel A

• . . . and by-Products

Business overview to build and

operate multiple biochemical

plants and produce . . .

“Moooo, plant left-overs are my feast!”

4-29-18

Vision 1Mission 2Fuel Pathways 3Opportunity 4About JatroRenewables 7Future (3 to 5 years) 8Margin Analysis 9Products Review 10Supercritical Biodiesel (Super) 11Renewable Diesel (RD) 12Competitive Processes 13Patents 14Marketing of Fuels 15Marketing of Plants to Co-locate 16Plant Logistics 17Plant Locations 18Plant Statistics (industry) 19Operations 20Quality Assurance Program (QAP) 21Biodiesel and Renewable Diesel Subsidies 22Renewable Identification Numbers (RINs) 23California Low Carbon Fuel Standard (LCFS) 26Feedstock Acquisition 27Feedstock Volumes by Type 28

APPENDIX A Equipment Fabrication 29APPENDIX B Fuel Features Comparison 33

Chemical Comparison 34Engine Performance 35

APPENDIX C Schematic Super Biodiesel 36Schematic Renewable Diesel (partial) 37

1. Become one of the leading world companies in the

production and marketing of biofuels

made from 100% sustainable

(renewable) materials

2. Be acknowledged as a leading global

company in environmental R&D and

well-known for our products

3. Provide an optimal work place to attract

the best possible employees and maintain

and develop their careers

4. Be respected by the financial community as a result of

valuable IP, sustained growth, and the value to the

community from our technological innovation.

Keeping it clean . . . like a city park or your back yard!

1

1. Contribute to the development of the fuel market for

transportation market using renewable (green) technologies

2. Develop innovative technology solutions through

investment in R&D to provide more efficient

production processes, higher quality products

and raw material diversification

3. Create shareholder value, focusing on

creating profitable and sustainable

(enduring) technology and IP

4. Contribute to the personal and professional

development of employees through on-going training

and with personalized development goals.

2

Cellulosic Biomass

Bioemulsion

Diesel

Substitute

Transesterification

Biodiesel

Isomerization

Hydrotreating

Renewable Diesel²BioJet Fuel

Catalytic

Conversion

Catalysis & Aqueous

Phase Reforming

DMF

Gasoline, Jet Fuel &

Hydrocarbons

Fermentation

Ethanol, Butanol &

Hydrocarbons

Biogasoline

ETG Via Catalysis

Pyrolysis

Bio Oil

Renewable Diesel &

Jet Fuel

Syngas

Fermentation

Ethanol,

Methanol,

Propanol,

Butanol

Renewable Diesel,

BioJet Fuel

Gasification³

Acid or Enzyme

Hydrolysis

Saccharification

Syngas

1st. Generation (D4 RIN for RD & Biodiesel) 2nd. Generation (D7 RIN for RD)

Natural Oils

Notes: 1. Sugars / Starches” column, ethanol fermentation counts as 1st Gen.2. Feedstock is reacted with hydrogen at elevated temp. and pressure

3. Biomass-To-Liquid (BTL) where biomass is gasified into syngas, cleaned then passed over solid metal catalyst

4. Gray boxes: JatroRenewables pathways (products)

Sugars / Starches¹

Fischer-Tropsch

Catalysis

g⁴

3

CHS, Inc. Supercritical Biodiesel Plant, Annawan, IL

1. To build and operate multiple Supercritical Biodiesel

(BD) and Renewable Diesel (RD) plants in the

US, Canada and ROW¹

2. Nameplate of plants to correspond with

geographic market offtake potential and

economic availability of feedstock sources

3. Jatro Renewables to own and operate plants

6. Co-located plant shareholders have option to Invest

in plant’s equity and receive dividends regularly

4. Plants to be greenfield and others co-located

with existing biodiesel or ethanol plants

Note: 1. Rest of World

Continued . . .

5. Plant types use same design scaled by market size

4

East Kansas Agri Energy, Renewable Diesel Plant, Garnett, KS

7. Plant types built to be determined by market

dynamics. For example: California = RD & BD;

Midwest = BD; New York City = RD etc.

8. Projected Plants Operating Over 7 Years:

Year BD RD Total/Year

2020 2 1 3

2021 2 2 7

2022 2 3 12

2023 3 3 18

2024 2 4 24

2025 2 4 30

2026 2 5 37

15 22 37

9. Each plant completed within 15 to 18 months starting with design

thru permitting, construction (sub contract), and EPA approval

Continued from last slide

Continued . . .5

Vanguard Synfuels, Biodiesel, Pollock, LA,

10. Revenue Projections by Year:pppp

Year Plants¹ Gals. $ Rev. EBITDA

2020 3 150m 487m 92m

2021 7 350m 1.14b 222m

2022 12 600m 1.90b 381m

2023 18 900m 2.92b 571m

2024 24 1.20b 3.90b 762m

2025 30 1.50b 4.87b 952m

2026 37 1.85b 6.00b 1.2b

Note: 1. Avg. plant size 50MMgy.

Avg. Revenue per gal. $3.25 dlvd.

Avg. EBITDA margin (after debt service) $0.635/gal.


11. Biodiesel plants produce Super biodiesel plus 8%

glycerol. RD plants produce D975 diesel and/or

BioJet fuel plus naphtha & fuel gas by-products

37 6.55b 21.22b 5.08b

6

• JatroRenewables was founded in

2004 with partners

• Built first biodiesel plant near

Dayton, OH

• 2006 began installing biodiesel

plants and mass transfer modular

systems in the U.S.

• 2010 adapted esterification to allow

use of lower cost oils (to 15% FFA

from 3% FFA)

• By 2012 the company developed a

patented technology called

Supercritical to process

oils with up to 100% FFA

• Supercritical process lowers opex

by about 35%7

• 19 plants installed since 2004

• 1 plant using Supercritical,

another under construction (in

2017 company awarded grant

from California Energy

Commission for $3.8m)

• Another Supercritical plant will

begin construction in May 2018,

in California

• In 2017 company began offering

patented Renewable

Hydrocarbon Diesel ASTM D975

with one commercial system and

another (formerly operating)

moved to another location (and

currently under construction.

Wood chips from forest slash or other wood sources offers abundant feedstock and wholly sustainable

1. By about 2022 cellulosic biomass will begin to dominate

the industry for both diesel fuel and ethanol

2. The plan is to add this capability to all existing

plants producing renewable diesel

3. The effort initially will be to license the

technology. Later the company will

acquire/develop internally

4. Pyrolysis appears to have the most promise

with the ability to mitigate TAN

5. A company in Norway has acquired this capability and

has licensed it to two companies in the U.S. recently.

8

CRITERIATRADITIONAL

BIODIESEL

SUPERCRITICAL

BIODIESEL

RENEWABLE

DIESEL

Production/Year (gals) 50,000,000 50,000,000 50,000,000

CAPEX $49,000,000 $52,000,000 $115,000,000¹

Cost Per Nameplate Gal. 1.30 $1.50 $2.10

Feedstock/lb (dlvd) 0.26 0.24² 0.24²

Feedstock/gal 1.96 1.81 1.81

Operations, G&A⁴ 0.82 0.77 0.82

Total Cost 2.78 2.58 2.63

Revenue B100 (dlvd.) 3.45 3.25 3.50

By-Products/eGal. (fob) 0.08 0.14 0.06

Total Revenue/gal³ 3.53 3.59 3.56

EBITDA/gal 0.75 1.01 0.93

Total EBITDA/Year 37,500,000 50,500,000 46,500,000

Months to Payback 17 14 30

IRR (10 years) @ EBITDA 41% 40% 29%

Notes: 1. Includes all plant equipment, SMR, tanks, permitting and labor. Deduct capex of about $25m to $40m ifconnecting to H2 pipeline or any plant w/excess H2.

2. About 25% low cost feedstock blend (corn oil, YG/UCO @ $0.29 & brown grease $0.14 dlvd). 3. USDA, & TheJacobsen spot pricing 1/28/18.

4. Labor, Energy, Chemicals, Maintenance, Freight out, Accounting, Ins. and Debt Service at 50% of capex @$0.08/g.

9

1. Biodiesel Revenue

Biodiesel/gal. Midwest $3.02–3.15

4/30/18 NY Harbor 3.12 –3.22

Gulf Coast 2.95–3.07

California 3.45–3.60

97% Glycerol/lb . All Markets 0.15–0.19¹

2. About 11.5% of total production, per gal. renewable diesel

Calgren Energy, 60MMgy ethanol plant, Pixley Calif. Co-located biodiesel plant under construction by Jatro Renewables

Notes: 1. About 9% of total production, per gal. of biodirsel

2. Renewable Diesel³

Biodiesel/gal. Midwest $3.02–3.51

4/30/18 NY Harbor 3.12 –3.22

Gulf Coast 2.95–3.07

California 3.45–3.60

Napatha/eGal. All Markets .0.06–0.08²

Flue Gas All Markets TBD

3. Renewable Diesel is priced the same as biodiesel 10

1. It significantly simplifies refining, improves fuel

quality and costs less to make

2. 28% is the approximate amount Super

lowers total biodiesel production cost

3. High FFA oils will reduce cost by up to

about 35% when using just 25% of it

4. 100% FFA feedstocks can be used to

lower the cost of feedstock choice

5. 95-97% glycerin by-product, worth twice

over traditional processes as the Super

process uses no catalyst

6. 0°C cloud point after final distillation, and

renders a clear biodiesel, makes it more

suitable for use in sub-freeze conditions.

Feedstock on the left, finished Super biodiesel on the right

Notes: 1. More details in Appendix A

11

1. Hydrotreating process is simple to master as an Operator

with about 100 years of use in oil refineries

2. Uses same feedstocks as biodiesel

3. Production cost similar to Super biodiesel

(uses hydrogen vs. methanol)

4. Low cloud point at -15°C (10 degrees less

than #2 diesel). Can be pushed to -40°C²

5. High cetane of about 70. Provides for a

better running engine

6. No blending as it’s a drop in fuel

7. Same characteristics as #2 diesel

Can go on pipeline, transported and stored same as #2 diesel

8. Has the same ASTM D975 designation as #2 diesel

9. Emits 60% to 80% less volatile emissions vs. #2 Diesel

10. Can be stored indefinitely (contains no oxygen)

Renewable diesel vs. #2 diesel when burned to show smoke in the lab.

Notes: 1. More details in Appendix A2. In production

12

1. Supercritical Biodiesel

Producers try to keep prying eyes from their methods of production; however,

we estimate only 3 to 5 have the ability to handle up to 100% FFA feedstocks

(about 3% of biodiesel plants)

2. Renewable Diesel

There are about 12 companies worldwide who can

process virgin oils using hydroprocessing methods:

Neste, Finland, 3 operating plants, about 750MMgy

ENI, Italy Conoco, Ireland Preem, Sweden

Petrobras, Brazil Total, France REG, Louisiana (85)

Valero, LA (256) AltAir, L.A. (40) RB Processing, TX

East Kansas AE.(5) Houston Refining, TX.

3. There are five known technologies the above companies are using: from

Honeywell UOP, Neste, Chevron, Petrobras and Cetane Energy.

Note: This section needs more research to validate numbers

Honeywell UOP refining process

13

1. JatroRenewables licenses the Supercritical process from a small company in Japan.

2. The semi-exclusive license covers the world

3. The company has built one Supercritical plant, a second one is under construction in California.Another plant at 15MMgy is scheduled to begin construction in May 2018, also in California

4. The Renewable Diesel technology is covered by two patents surrounding the reactor (as virgin oils are reacted differently than crude oils)

5. A license agreement with the renewable diesel processdepends on our ability to raise funds to start a project

6. JatroRenewables will continue to develop both the Supercritical and Renewable Diesel processes as part of the continuing license agreements.

Cities in California are clamoring for renewable dieselas it contains very low levels of nitrogen oxides, a cause of smog.

Notes: 1. More details in Appendix B

14

Multiple smaller storage tanks can be less costly than single

large tanks, the latter found in crude oil refineries where

volumes are 100 times that of the typical biodiesel plant

1. The selling of fuel is structured a number of ways and is

highly dependent on market forces as fuels

are a commodity. Examples:

(i) Long-term contract hedged by Buyer

using heating oil as the basis (i.e. sold

as Heating Oil plus price of fuel with or

without RINs attached)

(ii) Short term, typically 3 months, hedged

(iii) Spot sales.

2. Customers

(i) Companies trading in high volume

renewable fuels. Typically barge loads

(1m gals) and unit trains (100 tank-cars, total 2.5m gals.)

(ii) Regional legacy fuel distributors (500k to 2m gals/month)

(iii) Refiners (strips with custom CoA requirements)

(iv) Municipalities on tenders . 15

Supercritical Biodiesel plant by Jatro Renewables

1. Ethanol Plants (230 in U.S. and Canada), 14.6Bgy

(i) Ethanol plants have a motivation to add other types of fuels to

their business model as corn-based (starch) is limited by the

EPA to 15bgy. The industry is currently about 14.6bgy. Therefore

offer tremendous value for a new co-located BD or RD facility:

(a) They predominantly have existing rail (some w/water)

(b) Most environmental and permitting issues known

(c) Have power, loading docks, roads, other assets to share

(e) Have plant assets such as steam (though both plants

designed to operate autonomously when necessary

(ii) Ethanol plants are predominantly in a strong financial condition

and are likely to participate in the equity of a joint venture project.

2. Biodiesel Plants (143 in the U.S. and Canada), 2.7bgy

(i) Same as ethanol plants except no cap on fuel type

(ii) Typically biodiesel plants average about 20Mmgy, 1/5th to

a ¼ of ethanol plants at between 50 and 150MMgy+.

(iii) Smaller than ethanol plants, financial condition typically not strong

except for the larger companies such as REG, Andersons, White etc. .16

Estimated Average Annual Daily Diesel Truck TrafficU.S. Dept. of Transportation (1998)

1. Ideally plants are located closest to markets served.

Unit trains (100 cars) provide local cost parity for outside region

2. Feedstocks are received by truck and rail

from many different locations across U.S.

3. Existing plants running soy, 52% of all

biodiesel and RD feedstock, is relegated

to 7 Midwest states where material is grown

4. Ethanol plants are similarly located near

their sources of Corn feedstock in same

7 state area (S. and N. Dakota, Nebraska,

Iowa, Illinois, Missouri and Indiana).

5. Map at right shows diesel truck traffic and indicative of #2 diesel

daily usage volume (only 3% of cars use diesel)17

United Metro Energy, Brooklyn, NYC: On water, with rail near InterstateJatroRenewables currently re-engineering. Plant closed.

1. Offtake to customers and receiving incoming feedstock

requires the optimum location:

(i) Near interstate and/or connecting highway

(ii) With spur on main rail line (UP, BSNF, CTX etc.)

(iii) At minimum on short line

(iv) Access to water (river or ocean) ideal

(v) On the hydrogen pipeline (Gulf and So. Cal.) for RD

(vi) Co-locate with chemical plant with excess H2 for RD.

2. Other issues include:

(i) Water consumption from production

(ii) Environmental impact on community

(iii) Impact on local roads/infrastructure

(iv) Air, water and soil impacts (if any)

3. Plant at right an ideal location on water,

rail and near Interstate to receive

feedstocks, plus within the market served. 18

1. BD Capacity %¹ & Pops. For Leading StatesTexas : 15% 412MMgy 27m pops.

Iowa : 12 321 3

Missouri : 8 221 6

Illinois : 6 180 13

California : 5 126 39

Arkansas : 4 115 3

Indiana : 4 110 7

Washington : 4 110 7

Mississippi : 3 104 3

Pennsylvania : 3 92 12

2. Cumulative Productive Capacity by Size:<10MMgy : 67 plants 250MMgy 47%

10-20 : 24 348 17

20-30 : 16 450 11

30-40 : 6 220 4

40-50 : 8 380 5

50-60 : 8 472 5⁴

> 60 : 6 617 4

143 plants 2.737bgy 2. Currently adding 250 gals. Of additional capacity

3. RD Capacity by Size:Kansas : 1 plant 5MMgy

Vermont 1 5 (under const.)

California 1 40 (AltAir) BioJet

Louisiana 1 150 (REG)

Louisiana: 1 267 (Valero)²

5 467

Locations by state of biodiesel and renewable diesel plants

Notes: 1. As a % of total U.S. and Canadian output at 2.737bgy

3. Actual total production for 2017 (source: NBB)4. By comparison, 64% of ethanol plants are over 50MMgy

19

1. Production Management at Plant

Each 50MMgy plant has one Operator, two Utility

personnel and one Chemist per each 12 hour shift,

approx. 350 days per year (allowing 15 days for

annual maintenance)

Day shift will have three utility personnel for loading

finished fuel and unloading feedstock, plus support

maintenance as required. Plant accounting clerk will

track usage of chemicals and manage tracking for

incoming and outgoing product. One or two

chemists for day shift.

Day shift calls for one Operator and 3 utility and maintenance personnel plus 1 or 2 chemists

2. Production Management Remote

All plants will have a remote Operator on duty for each

12 hour shift, to oversee correct functioning of equipment

and maintain integrity of the finished fuel. Multiple plants

will require one remote operator to monitor approx. 3 to

5 plants. Issues are reported in real time.One person per 12 hour shift to remotely monitor from 3 to 5 plants remotely 24/7

20

1. Production Management at Plant


2. EPA Moderated Transaction System (EMTS)

(i) Quality Assurance Program (QAP)

(ii) Q-RIN Verification Program

(iii) Third-Party Engineering Reviews

(iv) Custom Audit Protocols

(v) Foreign Feedstock Monitoring

(vi) LCFS Carbon Intensity Verification (Calif.)

(vii) RFS Compliance Audits (Federal)

(i) RINs generated and transferred in EMTS.

(ii) RINS do not exist outside EMTS.

(iii) Allows EPA to monitor the RIN universe

(v) All RINs are tagged in EMTS as:

(a) Q RIN

(b) QAP Verified

(c) Unverified Legacy (status not recorded in EMTS)

21

PROGRAM SUBSIDY DESCRIPTION VALUE

Renewable Fuel Standard (RFS)

Refiners (Obligated Parties)Required to Blend in X% (Renewable

Volume Obligation) Into Diesel Fuel Pool. Each gallon is numbered and called a

Renewable Identification Number (RIN) and designated by type of fuel (Biodiesel

and RHD called D4)

If Refiner does not want to blend, can buy on the market a RIN from others that have proof (from

their blending report to EPA).

For RHD: a D4 RIN x 1.7¹ = $1.83/gal.(As a “drop-in” fuel, no blending required. Producer may retain the RIN to transact)For Biodiesel a D4 RIN x 1.5¹ = $1.62/gal.(Blender must blend then transact RIN)

IRS Producer Credit

Technically a subsidy, (no taxes need be owed). Currently program suspended until

Congress acts to extend. Expected to eliminate imported biodiesel and RHD and

extended 3 years retroactive for 2017

$1.00/gallon (plus $0.10 for small producers at <15mmgy)

Calif. Low Carbon Fuel Standard (LCFS)

Program requires all biodiesel and RHD meet certain carbon intensity (CI) values determined by total carbon inputs from well to wheel and by type of feedsotck

used. A computation of CI to the market value of the LCFS credit determines the

value of a credit per gallon of fuel.

CI Value(Examples)

LCFS Credit Per Ton

Credit Value² Per Gallon

83 (soy)53 (soy &YG)28 (Tallow)12 (UCO)

$95

$0.180.640.841.04

OregonSame as California but retains its own

market value for LCFS credit/ton80 (soy) $55 $0.10

Washington To start in 2018 22

1. How RINs Work

(i) The physical fuel and the RIN are separated

when the fuel is sold and blended for::

(a) Transportation fuel,

(b) Heating oil

(c) Jet fuel.

(ii) Once the RIN is separated from the fuel,

it can be traded in the secondary market.

(iii) Obligated Parties purchase RINs from the

market and retire the RINs to fulfill their

Renewable Volume Obligation (RVO)

(iv) Producers of biodiesel can keep RINs but

must add to next gallon of fuel (2.5 Rins)

(v) Producers of Renewable Diesel may keep RINs

as no blending required (it is a drop-in fuel).Continued . . .

23

1. RIN Codes



RIN D Code Fuel TypeGHG Reduction Requirement

Fuel

D7 Cellulosic Diesel 60%

Cellulosic biodiesel,

Renewable diesel,

Naphtha,

Renewable

CNG/LNG etc

D4Biomass-based Diesel

50%Biodiesel,

Renewable Diesel

D5 Advanced Biofuels 50%

Sugarcane ethanol,

Renewable heating

oil, biogas etc.

D6 Renewable fuel 20% or more Corn ethanol

Continued . . .24

1. RIN Code Equivalence ValuesContinued from last slide

Continued . . .

Fuel (1 gal. or equivalent)

Equivalent Value RIN Volume

Ethanol (baseline) 1.0 1.0

Biodiesel 1.5 1.5

Renewable Diesel (D4) 1.7 1.7

Non-ester Renewable Diesel (D7)

1.7 1.7

Biogas (77k btus) 1 1

2. Example

A gallon of biodiesel gets a D4 Rin code and an equivalence value

of 1.5. RINs on the market are going for $1.20/gal;

therefore: $1.20 x 1.5 = $1.80/gal. RIN final value.

25

1. Program works similarly to EPA’s Renewable Fuel Standard

2. Operates as an adjunct to RFS

3. Strict feedstock to fuel pathways must be met (same as RFS)

4. What is different is each fuel pathway is scored for its carbon

intensity (CI) value by Producer (all will be slightly different).

Examples for biodiesel and renewable diesel based CI score:

(i) Soy based : 82

(ii) Corn oil based : 28

(iii) Animal fat oils : 18

(iv) Used Cooking oil : 12

5. A market-based value of fuel per metric ton is basis for

determining the per gal. value by using a dedicated on-line

calculator and entering the per m/t and CI score. E.g.: The published

value per m/t = $134, enter. CI value 28, enter = $1.16 value per gal.

Oregon and Washington haveadopted their versions of the LCFS

26

1st generation feedstocks used in U.S. and Canada for both biodiesel and renewable diesel

1. Feedstock can be bought on long-term

contract plans from producers and brokers

both nationally and internationally; however,

price will typically be tied to an index

2. Feedstock will typically be purchased from

vendors and brokers nationally and

increasingly internationally . . . at minimum

regionally (as is the case for soy and corn)

3. New sources of feedstock are being

approved by the EPA as was brown and trap

grease and more recently jatropha oil.

4. Estimates of feedstock according to the U.S. Energy

Information Service, see next slide.27

Note: This section needs more research to validate numbers

1. Soy Oil : 2.86b gallons per year <2% FFA

2. Yellow Grease : 636m <15%

3. Canola oil : 274m <15%

4. Corn Oil : 422m <15%

5. Trap Grease : 20m (about 450m <100%recoverable

but going to

landfills)

6. Other Oils 500m <15 to 30%(both domestic and imported)

7. Woody Biomass Almost unlimited and

sustainable (2nd Gen only).

Black Gold processes it for use by biodiesel and renewable diesel producers that can handle up to 100% FFA feedstock

28

# Feature Benefits Comments

1 No catalyst required• 20% lower chemical costs

• No contamination of

by-products

No other existing biodiesel technology can match

2 To 100% FFA feedstocks• Use high FFA feedstocks

and blends with any

percentage of other oils

High FFA feedstocks can cost 30% to 50% less than corn oil, animal fats and virgin oils

3 95%+ Glycerin Purity• Provides 4 to 5 times the

price for glycerin versus

catalyst-based systems

No need for additional processing equipment since no contamination as no catalyst is used

4 Clear Biodiesel Produced• Biodiesel is clear, no

color from feedstock

Clear product easier to sell. 85% of biodiesel is tinted (red, yellow, dark green, gray etc.)

5 Biodiesel Distillation• Superior quality

• Meets ASTM cold soak spec

• Saves energy by not chilling

Biodiesel distillation produces a far more marketable product

6 Less than 1.5% Yield loss• Regardless of FFA or

feedstock type

Jatrodiesel’s unique “Supercritical” technology enables more product to be processed

7 Highly Efficient Processor• Cuts processing cost by 1/3rd

• No soaps or contaminants

generated

Minimal losses in energy. All unconverted product reused.

8 Easier System to Operate

• Easier for operators to learn

system process

• Less equipment means

lower maintenance and

costly downtime

Overall lower personnel costs

29

1. American Ag Fuels, Defiance, OH

2. Middletown Biofuels, Harrisburg, PA

3. Michigan Biodiesel, Bangor, MI

4. Walsh Biofuels, Mauston, WI

5. Mt. Coco Products, Philippines

6. mperial Valley Biodiesel, El Centro, CA

7. Greenlight Biofuels, Princess Anne, MD

8. Western Biodiesel, High Plains, AB, Canada

9. African Energy Initiative, Kampala, Uganda

10. Jatrodiesel, Miamisburg, OH

11. Center Alternatives, Cleveland, OH

12. Vanguard Synfuels, Alexandria, LA

13. Biovantage Fuels, Belvidere, IL

14. Washakie Renewables, UT

15. Greenleaf Biofuels, New Haven, CT

16. United Refining, Warren, PA (Brooklyn New York project)

17. Mid-America Biofuels, North Platte, NE

18. Patriot Ethanol, Annawan, IL

19. Marquis Energy, Hennepin, IL (to start w/financing)

20. Calgren Renewable Fuels, Pixley, CA

30

1. Systems are designed by Jatro Renewables engineers in Dayton, Ohio

31

PROPERTIESTRADITIONAL BIODIESEL

(FAME)

SUPERCRITICAL BIODIESEL

(SUPER™)

ASTM 6751

RENEWABLE

HYDROCARBON DIESEL

ASTM D975

GHG Emissions 60% below baseline¹ 60% below baseline¹ < 80% below baseline¹

CAPEX / OPEX $1.40 | $0.67 $1.50 | $0.47 $2.45 | $0.52

Transportation Truck, rail or barge Truck, rail or barge Plus pipeline

Storage All tanks, above ground All tanks, above ground Same as UL:SD

Engine Compatibility< 20% BD to meet manuf.

warranty

< 20% BD to meet manuf.

warrantySame as ULSD

Cetane About 47 to 51 About 47 to 51 70 to 95

Winter (Cloud Point)Depending on feedstock

blend

-2°C to +8°C

Depending on feedstock

blend

-2°C to +8°C

Not dependent on

feedstock blend:

Low cloud point of -15°C.

Can be adjusted to -40°C

DistributionMax blend to <80%

biodiesel, typically to 2% to

20%

Must be blended to <80%

biodiesel, typically to 2% to

20%

No blending required

Fuel Color Light yellow/ or light red Clear (like water) Clear (like water)

Retail InfrastructureSeparate pumps, tanks if

100%

Separate pumps, tanks if

100%No changes

32

PROPERTIES PETRODIESELBIODIESEL

(SUPER™)RD

Cetane 40-50 47-65 80-95

Energy Density, MJ/kg 43 38 44

Energy Content, BTU/gal 129k 118k 123k

Sulfur <10 ppm <5 ppm <10 ppm

NOx Emission Baseline +10 -10 to 0

Cloud Point, °C -5 -2 to +5 -15

Oxidative Stability Baseline Fair No limit

Cold Flow Properties Baseline Poor Excellent

Lubricity Baseline Excellent Good

Particulates Baseline 33% lower 33% lower

NOx¹ Baseline 5% higher None

CO¹ Baseline 20% lower 24% lower

Hydrocarbons¹ Baseline 27% lower 30% lower

33

PROPERTIES PETRODIESEL BIODIESEL (FAME) RD

Distillation Range OK OK (most not distilled)Less lubrication degradationChange oil less

Cetane Baseline Good startingFast cold startsLower tailpipe pollutionLess engine noise

Oxidation Stability Baseline< 3 hrs w/o additive (test)6 month shelf life

No oxygen = no limitLess injector fouling

Cloud Point, °C -5-2 to +5 (Poor)Typically not used neat

-15

Oxidative Stability Baseline Fair No limit

Cold Flow Properties, °CTo -40 w/additive

To ~-20 w/additive Refined to -40

Ash Miniscule amt. < 0.005% by vol.Almost zero.Excellent catalyst performanceExtended particulate filter life

Chemical Composition Hydrocarbon Methyl esterExtended oil lifeLess engine oil thickening

Solubility of Water Low MediumVery low risk of water pick-up in logistics including storage

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PROPERTIES PETRODIESEL BIODIESEL (FAME) RHD

Fuel Consumption Baseline Same as baseline2% to 4% higher than Petrodiesel3% to 5% lower vs. neat FAME

Engine Power Baseline The sameThe same except in older engines due to lower heating value of RHD

Engine Oil Dilution and Deterioration

BaselineDue to higher boiling temps in distillation, some of the fuel will contaminate engine

About the same as baseline

Injector Fouling Baseline(Typically not used neat) and would follow additive prescription for petrodiesel

Use typical detergents as petrodiesel especially for corrosion issues

Auxiliary Heaters BaselineHeaters as per petrodieselrequirement for up to ~20% biodiesel blends.

No cold weather issues, but if heater used, follow same regimen as petrodiesel

Optimizing Engines for RHD Baseline Optimization minimal

With advanced fuel injection timing, fuel consumption can be lowered 5% to 8%. Also, with retarded timing, NOx can be reduced but decreases fuel economy; however, optimizing Emissions Gas Recirculation will mitigate that issue.

35

FUEL TYPEFUEL STANDARD:

(U.S., CAN., & EU)FEEDSTOCK REFINING PROCESS USAGE FORM

#2 Diesel (ULSD)

• U.S. ASTM D975• CAN/CGSB 3.517• EU, EN 15940

• Petro distillate rich in paraffinic hydrocarbons

from crude oil

• Fractional distillation between 500C and 520C

• At atmospheric• 100%

Biodiesel(methyl ester)


• Derived from biomass:Soy, Canola/Rapeseed,

Sunflower etc. 40% usage

• Animal fats, used cooking oil, trap grease represent 60% of usage

• Traditional: Transesterification &

esterification w/catalyst• JatroDiesel Supercritical:

Transesterification w/o catalyst

• Enzymatic hydrolysis

• To 80% with

petrodiesel¹ but typically

blended to ~20% with

petrodiesel²

RenewableDrop-In Diesel (or RHD⁴)


• Derived from biomass (seed oils & animal fats)

• Hydrotreating (similar to how crude oil is refined into #2 ULSD diesel fuel)

• 100%³ (or blended any

ratio w/diesel)

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PureMethanol

Methanol Recovery from Biodiesel By Distillation

Washing w/Centrifuge

FinishedBiodiesel

(ASTM 6751)

A

AMethanol Recovery from Glycerin

by “flash” method

Separation of Glycerine from

Biodiesel

Typically 95% to

97% Pure GlycerinTank

SUPER-

CRITICALTransesterif-

ication Reactor

Up to 100% FFA

Biodiesel Distillation

Unreacted

feedstock

returned to

FilteredFeedstock

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FeedstockTank 604

CoalescingFilter

ToDisposal

Recycled Diesel From

Tank 612

Heat Exchanger

Inlet Feed Heater Reactor

HydrogenQuenchInjection

Fuel Gas From Fuel Gas

Header 300H

HydrogenFrom Storage Tank 304 and

Compressor 308

To Heat Exchanger 204 and Separator

208

Separator

FeedstockTank 604

38

Feedstock filtered to remove water and

particulates

Heat feedstock for Reactor treatment

Mix heated feedstock with Hydrogen

Treat feedstock and hydrogen mixture in Reactor

using hydrotreating catalyst

Cool product from the Reactor

Separate vapors from liquids in separator

Distill product in the distillation column

Remove RHD from distillation and store for

distribution

RHD Finished

Product Tank

By-Products:

- Naphtha LPG

- LPG Vapor,

- Purge Gas

39

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