© 2011 UOP LLC. All rights reserved.

Platts 6th Annual Next-Generation Biofuels Conference November 1, 2011 Chicago, Illinois

UOP 5571K-1

Amar Anumakonda Business Development, RE&C UOP LLC, A Honeywell Company

Producing Green Jet Fuel

Agenda

Market drivers for green jet fuel Renewable jet fuel

technology overview Pathways to growing

the supply chain Summary

Global Biofuels Demand Forecast by Region

0

500

1000

1500

2000

2500

3000

3500

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

North America EU-27 Latin America Asia/Pacific Africa FSU

K B/D

Global Biofuels Demand Forecast by Type

0

500

1000

1500

2000

2500

3000

3500

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Ethanol Biodiesel

K B/D

Global Biofuels Demand & Drivers

PIRA, Sept. 2010

PIRA, Sept. 2010

Oil prices, energy security, GHG abatement & sustainability drive growth in biofuels demand

• Rising oil prices

• Government support prompted by Energy security Environmental concerns (GHG

emission, sustainability) Job creation/rural development

• Renewable fuels market created by Adopting targets and mandates Tax incentives/exemption Carbon credits CO2 emission cap Loan guarantees

$0$20$40$60$80

$100$120$140$160

2000200120022003200420052006200720082009201020112012

US$

per

bar

rel

Crude Oil WTI

CMAI Mar 2011

UOP 5571K-3

Aviation Market Outlook

Source: Boeing Company Publications, Public Domain Content, from WWW

Growth in air traffic may double in next 15 years, requiring more fuel

Economic Growth Global Trade Liberalization New Business Models Technology Airline Services Airline Productivity

10,000

8,000

6,000

4,000

2,000

0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Trav

el –

Bill

ions

RPK

s

Long-Term Growth Rates: GDP = 3%

Passengers = 5% Cargo = 6%

Gulf War Crisis

SARS Sept. 11

UOP 5341-06

Forecast: Aviation Industry CO2 Emissions

Source: Presented to ICAO GIACC/3 February 2009 by Paul Steele on behalf of ACI, CANSO, IATA and ICCAIA

Using less fuel Efficient Airplanes Operational Efficiency

Changing the fuel Sustainable Biofuels

Low carbon fuels a key part of emissions reduction

Key Drivers of Emissions Reductions

Carbon Neutral Timeline 2050

CO

2 Em

issi

ons

Baseline

Low Carbon Fuels

UOP 5341-07

US Renewable Fuel Standard (RFS2)

Energy security is primary market driver in US

Renewable Fuel Volume Requirements

0

5

10

15

20

25

30

35

40

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Year

Bill

ion

Gal

lons

(Eth

anol

Equ

ival

ent)

Advanced Biofuel: Other

Advanced Biofuel: Biomass Based Diesel

Advanced Biofuel: Cellulosic Biofuel

Conventional Biofuel

Source: http://www.epa.gov/

UOP 5571K-6

Renewable Jet Fuel Technology Overview

Why Natural Oils and Fats?

60 400 500 650 1000 1300 Boiling Point, °F

Gasoline Diesel No. 2 Lubricating Oils Asphalt

Jet

300

Heavy Fuel Oils Gases

Crude Oil

1 6 8 10 15 20 43 71 Number of Carbon Atoms

Natural Fats and Oils

Nature stores excess energy in triglycerides – fats and oils

Triglycerides have chemical structures similar to diesel and jet fuel

- Less branched, but similar structure

Triglycerides naturally similar to distillate fuels UOP 5571K-8

UOP Proprietary

UOP Renewable Fuels: Chemistry & Simplified Process Diagram

+

H3C CH3

+

CH3 CH3

CH3 H3C CH3 H3C

CH3

H3C CH3 CH3 CH3

CH3 HO

O H2

CO2

H2O +

+ H3C CH3

H3C CH3

HC

O

O

O

O

O

O

CH3

CH2 + CH3

CH3 H2O

CO2 H3C

H3C H3C CH3

CH3 H3C

Reactor System

Water

CO2

Propane & Light Ends

Green Diesel or Green Jet Product

Make-up Hydrogen

Separator

Feed

Acid Gas Removal

Green Naphtha

Product is a High Quality Pure Hydrocarbon: Green Diesel and Green Jet (Bio SPK)

UOP Catalyst

Triglyceride

Free Fatty Acid

Straight Chain Paraffins

Green Diesel or Green Jet

& Green Naphtha

Propane

UOP 5571K-9

UOP Catalyst

UOP Proprietary

Feedstock flexible Costs

-Capex; similar to typical refinery process unit -Opex; SPK cost subject to feedstock cost, but can be competitive with Jet A-1

High quality green hydrocarbon products

UOP’s Renewable Jet & Green Diesel Process

Commercial scale proven technology

Hydrogen

Light Fuels

SPK (Green Jet)

Green Diesel

CO2

Water

Deoxygenation

Selective Hydrocracking

and/or Isomerization

Product Separation

Feedstocks Rapeseed Tallow Jatropha Soybean Algal Oils Palm Oil Camelina Greases

UOP 5571K-10

Deoxygenating/ Isomerization

Built on Ecofining Technology

Green Diesel

Green Jet (SPK)

Natural Oil/ Grease

DARPA Project Partners

Deoxygenating/ Selective Cracking/

Isomerization Natural Oil/

Grease

Available for License Now

• Initially a DARPA-funded project to develop process technology to produce military jet fuel (JP-8) from renewable sources

•An extension of UOP EcofiningTM process, with selective cracking to make jet-range material

•Produces SPK that meets all properties of ASTM D7566

• ASTM certification for blending up to 50% passed in July 2011

UOP Renewable Jet Process Overview

UOP 5571K-11

UOP Proprietary

Industry Qualification (ASTM D4054 Process)

FAA & OEM Review & Approval

ASTM Balloting Process

Specification Properties

Engine / APU Testing

Fit-For-Purpose Properties

Component / Rig Testing

ASTM Research

Report ASTMSpecification

Accept

ASTM

Review

& Ballot

Re-EvalAs Required

Reject

ASTMSpecification

Accept

ASTM

Review

& Ballot

Re-EvalAs Required

Reject

Revised or New ASTM Spec

Reference: Mark Rumizen January 25, 2010

Use of Green Jet Fuel

A ‘drop-in’ biofuel for aviation

Natural Oils & Fats

Fully Fungible “drop-in”

Renewable Fuel

50-100% 0-50%

UOP Renewable Jet Process

Crude Oil

Oil Refinery

Fossil Jet Fuel Synthetic Paraffinic Kerosene

Green Jet Fuel can meet all the key properties of petroleum derived aviation fuel Flash point Freeze Point Stability Heat of Combustion

SPK does not contain aromatics so must be blended with a source of aromatics, such as fossil jet fuel

UOP 5571K-13

Growing the Supply Chain

UOP Proprietary

UOP Renewables Vision • Building on UOP technology and expertise • Produce real “drop-in” fuels instead of fuel additives/blends • Leverage existing refining, transportation, energy, biomass handling

infrastructure to lower capital costs, minimize value chain disruptions, and reduce investment risk.

• Focus on path toward second generation feedstocks & chemicals

“Other” Oils: Camelina, Jatropha

Lignocellulosic biomass,

algal oils

Second Generation

Oxygenated Biofuels

Biodiesel Ethanol

Hydrocarbon Biofuels

Jet Diesel Gasoline

First Generation

Natural oils from vegetables and

greases

Fuel & Power

Renewable Energy

UOP 5571K-15

Critical Issues

Food supply: small impact on the fuel market, yet large impact on food supply

Land and water: competition for land and water resources that are already in high demand

Environmental: loss of biodiversity, soil erosion, nutrient leaching, soil and water pollution and deforestation

Second Generation Development Required to Ameliorate these Risks

UOP 5139-05

• Technological innovation needed for processing

Algae Ready in 3 to 5 years Challenges

Halophytes Ready in 3 to 5 years

• Proven at pilot scale

• Improve agronomy for cost reduction

Challenges

Jatropha Ready in 2 to 4 years

• Limited to warm climates only

• Mechanical harvesting isn’t mature

Challenges

Camelina Ready Now

• Limited total potential owing to yield

• Somewhat tied to grain market swings

Challenges

Viability is based on timing, technology and local resources

Sustainable Biofuel Feedstock Alternatives

UOP Proprietary

Green Jet Fuel Properties

Completed Flight Demonstrations

Successful KLM Flight Demo Date: Nov. 23 2009

Feedstock: Camelina oil

Feedstock: Jatropha oil

Successful JAL Flight Demo Date: Nov. 23 2010

Successful Interjet Flight Demo Date: Apr. 01 2011

Feedstock: Jatropha oil

UOP 5571K-19

UOP Proprietary

Royal Netherlands Air Force 16 June 2010 Gilz Rijen Air Base Netherlands

Recent UOP Green Fuel Demonstrations

USAF A-10C 25 March 2010 Eglin AFB

US Navy Green Hornet 22 April 2010 Pax River NATC

USAF C-17 27 August 2010 Edwards AFB

US Navy RCB-X 22 October 2010 Naval Station Norfolk

F-15 III Strike Eagle 25 October 2010 Eglin AFB

Deliveries exceeding

700,000 gallons to date UOP 5571K-20

In Closing…

Enable… Scalable Production with diverse feedstocks…

3. Revamp existing Refinery Units (not optimal, but helps lower capital)

1. Stand-alone (Greenfield Unit)

2. Integrate with new or existing Refineries

Feedstocks Jatropha Algae Camelina Animal Fats Greases, UCO Canola, Soyabean Palm

A 10,000 BPD (UOP licensed) unit is currently in construction

Encourage… Adoption Through Proactive participation

Honeywell G450 Transatlantic Biofuel Flight

Honeywell Green Jet Fuel™

• Drop-in fuel at 50% blend • More than 700,000 gallons

produced to date • 20+ successful

demonstration flight on commercial and military platforms

• ASTM approval granted July 1, 2011

UOP Renewable Jet Fuel Process