USDA Presentation BFC Gas & Electric, LLC 110 Southeast Grant, Suite 205 Ankeny, Iowa 50021 (515) 964-6787 November 2010

USDA Presentation

BFC Gas & Electric, LLC

110 Southeast Grant, Suite 205

Ankeny, Iowa 50021

(515) 964-6787

www.biofuels.com

November 2010

04/18/23 USDA Presentation 2

• BFC Team

• Company Highlights

• Key Partnerships

• BFC Process and Capabilities– Feedstock and Preparation– Gasification– Energy

• Strategic Growth Plan and New Business Model

• Environmental and Emissions

Table of Contents


Ken Boyle

James Huyser

Andrew Hart

BFC Team


BFC: Cedar Rapids, IA Plant

• General– Area served: Cedar Rapids, Iowa; Linn County,

Surrounding Region– Type: Own and operate– Start-up: 1999– Site: 6.5 Acres; 30,000 Sq Ft.

• Refuse Combustion– Type of technology: Gasification– Operation: 24 hours, 7 days a week– Tons/day: 150– Gasification Temperature: 2000F– Waste volume reduction: 97%; ash 3%

• Air Quality Control– Type of Equipment: ESP and Baghouse

• Energy System– Type of Energy: Electric Power – Turbine: 7.5 MWh, 580,800 lbs/hr./88,000 homes


BFC Gas & Electric (“BFC”):• Recognized leader in the conversion of biomass-to-energy (BTE)• Experienced (over 11 years) in syngas production (synthesis gas)

Assets include a one-of-a-kind facility that provides:• A unique platform ($22MM initial investment) to leverage synergistic opportunities• Proprietary gasification technology that converts waste materials to syngas• A commercial size test facility for new technologies and fuels; permitted to accept

more than 30 fuels sources; operates 24x7; connected to the National Power Grid• Proprietary gas analyzing software/hardware to determine maximum btu content of

syngas

Company Highlights


BFC Gas & Electric Layout


Manage Waste Contract Reduction

Generation of Green Power and Products

Reduction of Emissions

1

2

3

Core Capabilities


BTE Feedstock Sources

Technology & Engineering

Note: Each logo above is a registered trademark of those specific organizations

Key Partnerships


FEEDSTOCK:

BFC is feedstock flexible having tested 150 feedstock fuels and is permitted to accept over 30. BFC can be designed to use one or more of the following feedstocks:

• Industrial wastes • Agricultural and forest residues• Manure• Sewage sludge• Paper and pulp mills waste streams• Municipal wastes

3%-5% Ash Byproduct

Process Step: Feedstock and Preparation


Fuel Prep


• Biomass includes municipal wastes, industrial wastes, agricultural and forest residues, manure, sewage sludge, and paper and pulp mills

• Each year in the United States, more than 100 million tons of organic waste from municipal, commercial, and industrial wastes are buried at a cost of $5 billion.

• Large agricultural operations produce thousands of tons of crop residues.

• Forty million acres of U.S. forests produce large accumulations of slash and underbrush, which are ideal for conversion to power or oil.

Biomass Sourced Materials


WOOD

WOOD-CORN-PAPER BLEND

PAPER RECYCLE RESIDUE

Biomass as Energy (Examples)


UNLOAD/BLEND

METERING

BLEND INTO SHREDDER

Fuel Receiving and Blending


SHREDDERS

SHREDDING BAGS

SCREENING FUEL

Shredding and Screening


GASIFIER:

Before entering the gasifier, solid feedstocks are ground into small particles, while liquids and gasses are fed directly. Then a controlled amount of air or oxygen and steam are introduced to the gasifier. The temperatures in a gasifier range from 1,400-1,800 degrees Fahrenheit. The heat and pressure break apart the chemical bonds of the feedstock forming syngas.

The BFC gasifier is capable of processing up tp 150 tons of feedstock per day, converting 70-85 percent of the carbon in the feedstock to syngas.

3%-5% Ash Byproduct

Process Step:Gasification


BFC Process - Gasification


Gasification and Boiler Flame


3%-5% Ash Byproduct

To Power:

Syngas is combusted in a highly efficient boiler and turbine to generate electricity.

To Products:

The clean syngas can be processed to make productssuch as chemicals, fertilizers, transportation fuels, and

hydrogen.

Process Step:Power and Products


Boiler


BFC Process - Boiler

BFC Cedar RapidsGenerating Green Power


Turbine & Generator


BFC Process - Turbine


• Customer focused growth through segmentation

– MSW– Biomass– Wood– Paper– Absorbents– Recycling

Grow Our MarketsGrow Our Customer

LoyaltyGrow Into New

Markets

• Improved customer engagement and trusted delivery and execution

• Self-service capabilities• Lower cost of service

• Clean Gas (3C) syngas to new value-added products (new uses of gas and better efficiency)

• Leverage feedstock relationships and capabilities (Feed and Steam/Rail businesses)

• Outsourced R&D (RVP program)• Co-Fire and Co-Power• Scale the Model – Build, Own,

Operate, Acquire

Strategic Growth Plan


1. Dryer/Mixer Technology. Allows BFC to dry new feed stocks via steam produced by the plant which generates tax credits and new products.

2. Rapid Verification Program. Allows BFC to leverage its gasification plant for other companies to test their own gasification and waste streams.

3. New Feedstocks. Allows BFC to accept alternative feedstocks (algae, biosolids ~ waste water treatement sludge, absorbents) that can be efficiently converted into clean-burning syngas.

4. Clean Gas and Steam Injection. BFC is partnering with tech firms that allow it to utilize syngas in new ways by cooling, cleaning, compressing and separating gas stream for higher value uses.

5. Production of New Drop-In Fuels. Once syngas is cooled and compressed, it can be used as a green diesel fuel utilizing the Fischer Tropsch process or new promising alternative fuel technologies in development.

6. Re-Power/Co-Fire. Re-powering coal fired boilers is an opportunity of interest for utilities, municipalities and industrial processors to prepare for increased regulations on CO2 emissions.

BFC – Strategic Initiatives


Process Step: Clean Gas


• Gasification systems have the scalability for future upgrades for Syngas operation.

• Syngas is produced by utilizing steam

and oxygen instead of air in the gasification process – producing a low nitrogen gas that is suitable for various reforming and fermentation processes

• Clean Gas technologies will allow BFC to improve efficiencies; availability and through-put.

• Once cleaned, the thermo-chemical

process creates a platform for many transportation fuels such as diesel, jet fuel, ethanol, and hydrogen.

Clean Gas


Gasification


Biofuels Corporation plans to test systems for the conversion of syngas to ethanol and other high value chemicals

New Fuel Development


New Business Models:Thunderbird

• Excess steam from the gasifier/boiler is used to power unique drying/mixing equipment (Marion Mixers) to dry specialized animal feed production.

• Corn gluten has been a co-product of ethanol production that has limited uses due to its 4 day spoilage.

• Corn gluten is rich in proteins, fat (energy), minerals, and vitamins. They are an excellent source of digestible protein and energy


• BFC helps companies test, analyze, and develop full plans for alternative fuel plants, at any stage of development.

• BFC recently created the Rapid Verification Program a program designed for prospective clients to test their alternative fuels, at tonnage levels, with immediate analysis of the synthesis gas produced and full reports on anticipated operational production results.

• This offering goes well beyond a feasibility study by providing an immediate understanding of the technical and economic feasibilities of a waste stream’s characteristics, emissions and value.

• The program delivers Real-World Solutions in Real-Time – allowing BFC’s clients to reduce project risk by avoiding high capital costs of building demonstration-scale units, or even pilot plants, or making mistakes in their commercial plant construction design.

• Cost Savings. Avoid the high capital costs of building demonstration-scale units, constructing pilot plants, or making costly mistakes by building commercial plants on assumptions.

• Validation and Risk Reduction. We understand the technology and the process, increasing speed to

scale-up, and BFC validates the economics and commercialization potential of emerging technologies and feedstocks while removing project and construction risk.

• Training. BFC hosts customer operations teams and provides as much assistance and training as you need.

New Business Model:Rapid Verification Program


Rapid Verification Program

Program Components Price

1.Material Acceptance and Handling All material which is properly sized to 2 inch minus with no more that 10% of the total weight being sized at ¼” minus, will be accepted and unloaded at the BFC facility.Prospective material will be weighed to determine weight of one cubic foot.All material will be fed through the appropriate metering bin and all feed rates will be documented.

$6,000

1.Gasification Process All material will be gasified independently in the BFC gasification system.Ideal operating conditions including, temperature, feed rates, bed levels, fluidization rates, pressures, and system clean out will be determined to gain maximum efficiency.Fresh bed media will be used for all testing of the client’s material.All operating conditions will be set by BFC personnel unless otherwise specified by the client.All operating data will be recorded every 30 minutes, and will be included in the final report.Real time gas analysis of the syn gas provided and will include: CO, CO2, NOx, SOx, O2, CH4, temperature, and moisture.

$24,000

1.Combustion All syn gas will be directly fired in the dedicated BFC boiler.All operational data will be recorded every 30 minutes and will be included in the final report.

$18,000

Rapid Verification Program – Basic Plan Total $48,000

50 Tons Minimum of Material of Test Feedstock Required for Rapid Verification Program Testing


Rapid Verification Program

Additional Features and Options

Material Alteration. If fuel cannot be processed by the client to meet the specs of the gasifier, on site processing services are available. Eliminates the need for clients to invest in costly equipment on the front side, and proves materials are viable gasification fuels prior to investing capital in proper equipment.

Cubing. To further maximize the potential of the client’s fuel, cubing of certain problematic materials is available. Cubing fuel generates longer dwell times in the gasifier which in turn lead to greater stability and in general, a higher quality of gas.

Alt Media Bed. Alternative bed medias which would be more representative of the client’s needs, or material which would be more readily available, can be substituted for the standard media which is used by BFC in the gasifier. Allows clients to confirm the media of their choice, saving money on front-end.

Non-Com Mat Recovery. Non-combustible materials (glass, metal, rock, etc) which may be a source of contamination in the client ’s material are recovered from the gasifier and tested to determine quantities and characteristics.

Lab Ash Analysis. After the combustion of the synthetic gas, both pot ash and fly ash can be recovered for further lab analysis. Determines the impact of ash on future systems.

Ash Volume Calculation. Ash volumes for client’s material can be collected to give a real time evaluation of the byproducts of the gasification process. Data important for budgetary figures to aid in future facilities for ash removal.

Emissions Testing. Emission testing at the boiler vent stack can be offered to monitor levels of CO, CO2, O2, NOx, and SOx as a byproduct of the combustion of the synthetic gas. Vital tool aiding in permitting of any facility.

Additional Fuel Tonnage. For every additional 50 tons of fuel, the processing fee increases to handle the volume handling, processing, production and testing.

Independent 3rd Party Verification.


• Proprietary software that provides real-time analysis of gas, allowing BFC to measure and maximize BTU value of all feedstock – including combining feedstocks.

BFC Process - Software


Gasification is an environmental solution

• Enhances the U.S. and world energy portfolio while creating fewer air emissions, using less water, and generating less waste than most traditional energy technologies.

• Whether used for power generation, for production of substitute natural gas, or for production of a large number of energy intensive products, gasification has significant environmental benefits over conventional technologies.

• Reduces the environmental impact of waste disposal because it can use waste products as feedstocks—generating valuable products from materials that would otherwise be disposed as wastes.

• Non-hazardous byproducts are readily marketable.

• CO2 can be captured from an industrial gasification plant using commercially proven technologies.

Environmental Benefits


Gasification

• Clean air comply with UK standards

• More complete destruction – less ash

• Water is the source of oxygen

• Good public image

• EPA – prefer waste technology

• Straight forward operation

• Recovery of product (H2 and CO)

Incineration

• Produces dangerous emissions - Furans, dioxins, other

• Less complete destruction – more ash

• Air is the source of oxygen

• Poor public image

• EPA wants alternative

• Obstacles to on-site operations

• No fuel gas can be recovered

Competitive Processes


• 11 years of operating experience

• Proprietary systems and know-how

• Feedstock flexibility with over 150 tested and 30 permitted

• Unique technology, technical and supply partnerships

• Proprietary gasification analysis software

• Clear governmental policy and legislative support of renewable energy

WASTE-TO-ENERGY

THE FUTURE!

Competitive Advantages

Documents

USDA Presentation BFC Gas & Electric, LLC 110 Southeast Grant, Suite 205 Ankeny, Iowa 50021 (515) 964-6787 November 2010