2014 LanzaTech. All rights reserved.

The Why? How? & What? of sustainable fuels

Business Confidential

Carbon is Pervasive

Boeing 787 - a carbon-fiber plane burning carbon-based fuel

Steel

Liquid Fuels

1,3-butadiene

(precursor for rubber)

Heavy Industry

Transportation Fuels

Chemical Products

Steelmaking, ferroalloy production, and other industrialprocesses use carbon as a reagent

High energy density fuels allow for cars, boats, and planes

Carbon forms the backbone of all organic chemical and material products

Polyethylene

Terephthalate

(PET plastic)

Nutrition

Our biochemistry is entirely dependent on carbon, as is all of the food that we eat

All food contains carbon

DNA: The green is carbon.

2Business Confidential

But Problematic when Combusted

1. http://aliciapatterson.org/stories/china%E2%80%99s-rise-creates-clouds-us-pollution

Greenhouse Gas Emissions (CO2, CH4)

• Combustion of carbon-containing energy sources inherently produces CO2.

• Incomplete combustion and gas venting result in additional CO2

and CH4 emissions.

• These greenhouse gases have been identified as the primary cause of climate change.

• Greenhouse gas emissions are a global problem with global consequences.

Particulate Emissions (PM10, PM2.5)

• Carbon combustion also releases particulates into the atmosphere.

• Accumulation of particulates in our air has severe consequences for human health.

• Particulates pose a local threat, and are the chief culprit of air pollution that we can see, smell, and taste.

• They are also a global problem! Studies have verified the presence of particulates in the US that originated from fossil fuel combustion in China.1

NOx, SOx, and Hg Emissions

• Nitrous oxides, sulfur oxides, and mercury emissions are also a direct result of fossil fuel combustion.

• These emissions have a significant negative impact on human health, with a particularly strong link to respiratory illnesses.

• They are also detrimental to the local environment, as NOx and SOxare the primary cause of acid rain.

3Business Confidential

4

The Climate is changing

12

10

8

6

4

2

0

36%

30%

24%

18%

12%

6%

0

1990 2000 2010 2020 2030

Fossil fuels

Zero-carbon fuels

Share of zero-carbon fuels (right axis)

Mto

e,

K

Low carbon fuels: Essential

Containing CO2 growth to safe atmospheric levels (below 450 ppm) requires that zero carbon fuels make up > 30% of the fuel pool.

Current Rate: 8 billion tonnes of CO2 per year

Data from NOAA* taken at Mauna Loa, Hawaii for March

2013 shows CO2 levels breaching 400 ppm

* National Oceanic and Atmospheric Administration

Source: IEA world Energy Outlook 2011

5

Impact requires Scale!

The world's consumption of gasoline, diesel fuel, jet fuel,

heating oil, and other petroleum products reached a record

high of 88.9 million barrels per day (bbl/d) in 2012.August 26, 2013, US EIA

….30% of this = 1.2 billion

gallons per day >450 billion

gallons annually.

7

Snapshot of Existing Biofuel Policies

Business Confidential

Diverse Pathways to Chemicals and Fuels

Biochemical Conversion

Lipid Conversion

Diesel, Jet (HEFA/HRJ)

FAME, FAEE

Enzymatic HydrolysisFermentation Alcohols, ChemicalsSeparation

Oil Extraction

Trans-esterification

Hydrotreating/Hydrocracking

Enzymatic Conversion

Starches

Sugars

Natural Oils

Algae

8

Lignin, Cellulose,Hemicellulose

Gasification

Fast Pyrolysis

Fischer Tropsch

Alcohol Synthesis

Catalytic Upgrading Gasoline

Gasoline, Diesel, Jet

Alcohols

LiquidBio-Oil

Syngas

Thermochemical Conversion

Fermentation Alcohols, Chemicals

Gas Fermentation

Separation

Catalytic Conversion Gasoline, Diesel, JetIndustrialWaste Gases(CO, CO2/H2)

BioForming Catalytic Conversion Aromatics (px)

Ethanol: the worlds favourite sustainable fuel.

Ethanol production

10USA: 13.3 Bn Gal Brazil: 6.2 Bn Gal

Biodiesel

11

Biodiesel Fuel Production by Enzymatic Transesterification of Oils: Recent Trends, Challenges and Future Perspectives

By Nevena Lukovic , Zorica Kneževic-Jugovic and Dejan Bezbradica

DOI: 10.5772/21905

Global Biodiesel production: 4.9 bn Gal p.a.Worldwatch Institute analysis 2014

Current feedstocks are:

Expensive

Price Volatile

13

Debate…..

Today Biofuels consume land & water we need for food

• Global population projected to grow from 7 billion today to 8.6 billion in 2035. http://www.iea.org/weo/docs/weo2011/other/WEO_methodology/WEM_Methodology_WEO2011.pdf

• “World wide about 18% of sugar is being used for biofuel today”Peter Brabeck-Letmathe Chaiman of Nestle in The Weekend interview, WSJ, Sept 3rd 2011

• Agriculture accounts for 70% of all global water withdrawalGlobal Water Intelligence 2010

Demand for Biofuels ….resulting demand for land … … and water

The remaining 94%.....

Annual global ethanol production

23.4 billion Gal p.aSource: USDA-FAS

Annual global biodiesel production

4.9 billion Gal p.a.Worldwatch Institute analysis 2014

Total current production

(ethanol + biodiesel) = 28.3 Bn Gal p.a.

We are 6% of the way there!

16

New Feedstocks = New technologies

feedstock technology Fuel+ =

• Today's technologies are not enough

• New technologies are required

• Lowest cost technologies will dominate

17

Woody biomass comprises:• Cellulose / hemicellulose (60%)• lignin (40%)

Ligno-cellulose: Non food sugars

• Separation

• Saccharification

• Fermentation

A new Dawn:

DuPont -- Nevada Site Cellulosic Ethanol Facility

Location: Nevada, Iowa

Operational Date: Q4 2014

Feedstock: Corn Stover

Capacity: 30 million gallons /year

Abengoa -- Bioenergy Hugoton Cellulosic Ethanol Facility

Location: Hugoton, Kansas

Operational Date: Q2 2014

Feedstock: Corn stover, wheat straw, milo stubble and prairie grasses

Capacity: 25 million gallons/year plus 21 Megawatts of renewable electricity

POET-DSM Project Liberty

Location: Emmetsburg, Iowa

Operational Date: June 2014

Feedstock: Corn cobs, leaves, husk and stalks

Capacity: 25 million gallons/year

The journey has started

Cellulosic Industry Challenges

20

Opex

Capex

Breadth

Yield

Fuels from Algal Oil?

• Microalgae have high-lipid content (60%); rapid

growth rates (one doubling/day); produce more lipids

per acre than other terrestrial plants --10x - 100x

• Can use non-arable land; saline/brackish water

• No competition with food or feed

• Utilize large waste CO2 resources (i.e., flue gases)

Not just about oil:

2

2

Cyanobacteria: Photosynthetic

bacteria

Can produce and secrete

ethanol

“Algae” Industry Challenges

23

Water

Land

Location

Carbon Recycling:

A New Route to Sustainable Products

Resources for biofuels “Done Right”

No impact on food, land, water or biodiversity

25

• Available

• Abundant

• Point Sourced

• Low Value

• Non Food

Industrial residuese.g. from Steel Mills

Municipal SolidWaste (MSW)

Biomass, Forestry residues

H2

CO

Accessing diverse resources

PhranerzoicArchean Proterozoic

0.51.01.52.02.53.03.54.0

Hadean

0.4 0.3 0.2 0.1 0.00.6

Billions of Years ago

Ancient biology for a modern need

The earth is formed

Jurassic Park!

We arrive

Today

27

…maybe not…

2

8

2

9

PhranerzoicArchean Proterozoic

0.51.01.52.02.53.03.54.0

Hadean

0.4 0.3 0.2 0.1 0.00.6

Billions of Years ago

Ancient biology for a modern need

2. CO2-rich atmosphere

3. O2-rich atmosphere

1. Reduced atmosphere

Hydrogen

Carbon monoxide

Carbon dioxide

Methane

Carbon Dioxide Oxygen

Gases were the only carbon

and energy source used by

the first life forms.

Life begins on earth!

Gas fermentation

Industrial residuese.g. from Steel Mills

Municipal SolidWaste (MSW)

Biomass, Forestry residues

H2

CO

Modern need to use these gas resources

Gas fermentation for sustainable fuels

3

1

Not so different….

Gas from both hydrothermal vents and steel manufacture include:

Carbon monoxide (CO)

Hydrogen (H2)

Carbon dioxide (CO2)

Hydrogen sulphide (H2S)

Methane (CH4)

The LanzaTech Process

Gas Feed Stream

Gas Reception Compression Fermentation Recovery ProductTank

• Gases are sole source of energy

• Production of fuels and chemicals

• Potential to make material impact on the future energy pool (>100s of billions of gallons per year)

• Biofuel/chem, carbon capture and energy efficiency solution

Novel gas fermentation

technology captures CO-rich

gases and converts the carbon

to fuels and chemicals

No impact on water, food, land or biodiversity

Proprietary

Microbe

Business Confidential

Company Profile

Corporate Headquarters and R&D in Chicago, IL, R&D in New Zealand,

Operations and BD office in China and India

Funding

– Series A: Khosla Ventures - $US 12M in 2007

– Series B: Qiming Ventures - $US 18M in 2010

– Series C: Burrill MLSCF - $US 60M in 2012 equity, $US 15M debt WTI

– Series D: Mitsui -$US 60M in 2014

Team

CEO: Dr. Jennifer Holmgren

CSO/Founder: Dr. Sean Simpson

– Over 145 staff

Synthetic Biology

Analytical

Engineering

IP Portfolio

– >250 Patents pending; 100 granted

– 3 proprietary microbe families

– 15 synthetic biology families

Business Confidential

Natural Gas, CH4Associated Gas

Biogas

Methane Hydrates

Biomass

Solid WasteIndustrial, MSW,

DSW

Waste as a Resource:

34

Inorganic CO2

CO CO + H2 CO + H2 + CO2 CO2 + H2 CO2 + H2O + e-

Fuels Chemicals

Gas Fermentation

Reforming Gasification Renewable

ElectricityRenewable H2

Industrial Waste Gas

Steel, PVC,

Ferroalloys

Business Confidential

Pyruvate

CO/H2

Acetyl-CoA

Ethanol

2,3-Butanediol

Fuel and Chemicals from gas

35

LanzaTech proprietary

bacterial strain

The LanzaTech gas fermenting microbe can make

both ethanol and 2,3-butanediol

Scaling Up LanzaTech’s Technology

Commercial Scale-up Factor Less Than What Has Been Proven at Demo Scale

DemoPilotLabStrain

Development Commercial

2005 2008 2012 2014

36

50 X 32 X 25X

Steel Gases: 300Bn Gal Ethanol Capacity

USA

925

BRAZIL

955INDIA

1,315

CHINA

10,800

RUSSIA

1,830

W. EUROPE

4,870

JAPAN

3,750

Steel Mills (>5 MT/year)

Country

Potential Ethanol Production Capacity (MMGPY)

Brazil

Argentina

Mexico

UnitedStates

Russia

Kazakhistan

Iceland

Australia

Thailand

Indonesia

China

S. KOREA

1,270E. EUROPE

1,300

TOTAL

27,015 MMGPY37

Next adventure: Commercial Scale

Pre-commercial facility in operation in

Shanghai for >8 months meeting and exceeding

all its performance targets

and milestones

Capacity 400,000 litres/year ethanol

Technology has been approved in China

for commercial deployment, by the NDRC

Operation of additional 400,000 litres/year plant

with second Chinese Partner,

Shougang Group, in Beijing

Sustainability Assessment of Beijing plant

currently underway with RSB.

Co-locating LanzaTech’s

Technology Steel Mill brownfield

sites reduces land footprint,

improves economics and reduces

construction time

38

A New Source for Low Carbon Fuels

GHG footprint is 50-70% smaller than the

footprint of producing petroleum fuels

Conventional

Gasoline

LanzaTech

Ethanol

120

100

80

60

40

20

0

gC

O2

e/M

J

Life Cycle GHG Emission

90

25-45

• LanzaTech Steel Mill Gas to Ethanol Process50-70% GHG reduction over fossil fuels

• Europe example

• Based on LCA analyses performed in cooperation

with the RSB, relative to petroleum gasoline.

GHG footprint is 75-85% smaller than the

footprint of producing petroleum fuels

Conventional

Gasoline

LanzaTech

Ethanol

120

100

80

60

40

20

0

gC

O2

e/M

J

Life Cycle GHG Emission

90

14-22

• LanzaTech Biomass Residue to Ethanol Process

75-85% GHG reduction over fossil fuels

• Europe example

• Based on LCA analyses performed in cooperation

with the RSB, relative to petroleum gasoline.

Steel Mill Value Proposition

LanzaTech business case:

Providing 2x More returns from fuel than from electricity

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

Power Ethanol

US

$/C

ub

ic M

ete

r G

as

40

C4 Chemicals from Gases: BDO/Butadiene

OH

H3C

OH

CH3

2,3-Butanediol

Reductive EliminationCatalytic Dehydration Catalytic Dehydration

1,3-Butadiene Methyl Ethyl Ketone

(MEK/Butanone)

Butenes

1-Butylene

(But-1-ene)

2-Butylene

(But-2-ene)Isobutylene

(2-Methylpropene)

H H

H

H H

HC CC C

H

H H

C C

CH2 CH31 2

3 4

H3C

H H

C C

CH32 3

41

H CH3

C C

CH31 2

H

3

H3C-CH2-C

CH3

O

New Route to C4s Without Current Supply Challenges 41

CO + H2

Direct route:

Developing

a Butadiene

producing

organism

Two Step Route:

1. Butanediol production

2. Catalytic conversion

Industrial WasteBiomass

NGCoal

MSW/DSW

Syngas

2,3-BDO

AdvancedBiofuel

Butadiene

Ethanol

Global Market Size: ~4.9 million tons, ~$13 billion

Styrene Butadiene Rubber (SBR)

PolybutadieneRubber (BR)

Global Market Size: ~3 million tons, ~$8 billion

Global Market Size: ~8 million tons, ~$16 billion

Global Market Size: ~1.8 million tons, ~$6.9 billion

Acrylonitrile Butadiene Styrene(ABS) Resins

Nylon 6,6(from Adiponitrile/HDMA)

Global Market Size: ~11 million tons, ~$22 billion

Butadiene: Key Chemical Intermediate

42

2-Step Syngas to Butadiene: The Process

Gas feed stream

2,3 Butanediol

Specific

Fermentation

Simulated

Moving

Bed

2,3 Butanediol: ready for

conversion to 1,3 Butadiene

43

New Route to C4 Without Current Supply Challenges

Synthetic Biology Focus

44

Develop a deep understandingand predictive model

of our production strain

Advance the genetic toolkitand genetic parts

for our production strain

Identify novel enzymes,reactions and pathways from natural

and synthetic sources

Create synthetic microbes forconversion of gas to high value chemicals

Pyruvate

CO/H2

Acetyl-CoA

Fatty Acids,

Terpenoids

DiscoveryLab-scale

Cont.

Ferment.

Pilot/

Demo

Ethanol

Isopropanol

Acetone

Isobutylene

3-Hydroxypropionate

2,3-Butanediol

MEK

Biodiesel

Isoprene

1 Organism, 20 products so far…

Succinate

2-Butanol

1-Butanol

45

1,3-Butadiene

LactateBiopolymers

1,3-Butanediol

3-Hydroxybutyrate Physiology

• Control flux to

single product

• Product tolerance

• Vitamin biosynthesis

Closing thoughts….

46

47

Why Do Biofuel Policies Matter?

• Mandates set targets, requirements and (often) incentives

• Where mandates exist, a biofuel must qualify to be competitive

• Uncertainty about acceptance creates market and investment risk

Acceptance Under Mandates

Creates Market Pull

FeedstockProcessProduct

GHG SavingsOther

Eligibility Requirements Performance Standards

Acceptance

Policies Define Qualifying Fuels

Business Confidential

The Carbon Imperative

Utilize Only as Much Carbon as we Must!

Energy can be Carbon free

Wind:

Solar:

Hydro:

48

Liquid Fuels & Petrochemicals

must contain

EfficiencyRecycle C

Business Confidential

Gas Feed Stream

Gas reception Compression Fermentation Recovery Producttank

The LanzaTech Process

Carbon Efficiency Means Cleaner Air:Emissions Savings (WtT)

49

CO

CO2

Per tonne of Lanzanol

CO2 MT kg PM kg NOx kg SOx

Averted from flare 2.1 0.6 4.1 0.9

Energy required for

LanzaTech Process-0.8 -0.2 -0.8 -1.6

Displaced gasoline +0.5 +2.5 +7.4 +4.0

Avoided per tonne of ethanol

1.8 2.9 10.7 3.3

5.2 barrels of gasoline

are displaced by every

tonne of ethanol

produced

1 tonne ethanol

produced as CO

averted from flare

Business Confidential

Steel Mill

Steel production

WasteGases

Broader Environmental Impact

LanzaTech Process emits 33% less CO2 than

electricity generation per MJ energy recovered

NOx

&Particulates

LanzaTech Process emits ~40% less NOx and ~80% fewer particulates

than electricity generation per MJ energy recovered

GridElectricity

Generation

Electricity

LanzaTechProcess

EthanolGasoline Pool

Carbon is Only Part of the Story

50

Example: PM2.5 Readings

Daily Average PollutionThe World Health Organization (WHO) guidelines consider anything over

10 micrograms per cubic meter of PM2.5 to be hazardous to health

10 Worst Indian Cities 10 Worst U.S Cities

Sources: Central Pollution Control Board India, Environmental Data Bank, American Lung Association and WHO. Simon Denver and

Richard Johnson/The Washington Post. Published on February 2, 2014, 5:46 p.m.

Bakersfield, CA

Merced, CA

Fresno, CA

Hanford, CA

Los Angeles, CA

Modesto, CA

Visalia, CA.

Pittsburgh, PA

El Centro, CA

Cincinnati, OH

Washington, DC

18.2

18.2

17

16.2

16.2

15.3

15.2

15

14

13.8

10.6

51

152.6

148.9

144.2

133.7

100.1

96.0

95.8

92.8

92.0

90.7

10.0

Delhi

Patna

Gwalior

Raipur

Ahmedabad

Lucknow

Firozabad

Kanpur

Amritsar

Ludhiana

WHO Guideline

Business Confidential

Example: PM2.5 Readings

Daily Average PollutionThe World Health Organization (WHO) guidelines consider anything over

10 micrograms per cubic meter of PM2.5 to be hazardous to health

10 Worst Chinese Cities 10 Worst U.S Cities

Sources: Chinese Ministry of Environmental Protection, American Lung Association and WHO. Simon Denver and

Richard Johnson/The Washington Post. Published on February 2, 2014, 5:46 p.m.

Xingtai

Shijiazhuang

Baoding

Handan

Hengshui

Tangshan

Jinan

Langfang

Xi’an

Zhengzhou

Bakersfield, CA

Merced, CA

Fresno, CA

Hanford, CA

Los Angeles, CA

Modesto, CA

Visalia, CA.

Pittsburgh, PA

El Centro, CA

Cincinnati, OH

Washington, DCWHO guideline 10

155.2

148.5

127.9

127.8

120.6

114.2

114.0

113.8

104.2

102.4

18.2

18.2

17

16.2

16.2

15.3

15.2

15

14

13.8

10.6

52Business Confidential

53

Why Bio?

Provides economic development

that creates “green jobs”

A sustainable solution to our

climate and energy challenges

Provides energy security from

sustainable, regional resources

Provides affordable options to

meet growing demand in emerging

economies

No impact on water, food, land or biodiversity

Business Confidential

Confidential Business Information

Using and Commercializing CO2

54

Capturing Carbon for Hydrocarbon Fuels

Acetate

Jet Fuel

Lipids ~5.5M bpd

Energy Source

CO2

CarbonSource

Preliminary TEA indicates

lipid production at ~ 2 $/gal

Gasoline

Diesel

~8.5 bpd

~51M bpd

LanzaTech capabilities are unique in this space.

55Business Confidential

Confidential Business Information

“Electrosynthesis” the next step for LanzaTech

CO2

é

electrical energy

LanzaTech converts CO2 and electrons to products with no run-off, land use change, or environmental uncertainty issues associated with crops

CO2

Crops convert CO2 and solar energy in to Biomass

Biomass

Wind Solar

Sources of electrons:

Bacteria that use gases such as CO2 as their source of carbon derive the energy needed from electrons.

• LanzaTech bacteria can ferment CO2 and H2

• LanzaTech have shown enhanced reactor performance with electron-assisted fermentation (Patent application: US61/295,145)• Prof. Derek Lovley at U Mass (Amherst) is the leading researcher in this “electrofuels” field• Prof. Lovley and LanzaTech are establishing a joint research effort (government funded) in this area• This work is a natural extension of the microbial, synthetic bio, and engineering work being undertaken on the LanzaTech platform

Natural feedstock extension of the LanzaTech Platform technology

China and IndiaRest of non-OECDOECD

12

10

8

6

4

2

0

1980 1990 2000 2010 2020 2030

Mto

e, K

12

10

8

6

4

2

0

36%

30%

24%

18%

12%

6%

0

1990 2000 2010 2020 2030

Fossil fuelsZero-carbon fuelsShare of zero-carbon fuels (right axis)

Mto

e, K

Source: IEA World Energy Outlook 2009

0

1

2

3

4

5

6

-

5

10

15

20

25

30

35

40

45

HIC UMC MIC LMC LIC

National Income Levels

GDP/Capita, '000 US$

Energy/Capita, MTOE

LIC

HIC

HIC – Higher Income CountriesUMC – Upper Middle Inc MIC – Middle IncLMC – Lower Middle IncLIC – Lower Income countries

Achieving Energy Equilibrium

HIC/LIC Energy Consumption Gap

GDP and Energy Consumption

Diversification of the Energy Basket is Key to Success

57

58

Questions?