UOP Renewable Jet Process Non-Confidential Presentation

PTT Bangkok, Thailand February 17, 2010

2009 UOP LLC. All rights reserved.

Discussion Topics
Introduction to UOP Legislative and Market Drivers The UOP Renewable Jet Process Bio-SPK Feasibility/Certification Program The Path to 100% Renewable Jet Fuel Next Steps/Project Development Summary Q&A

UOP Proprietary

Discussion Topics
Introduction to UOP Legislative and Market Drivers The UOP Renewable Jet Process Bio-SPK Feasibility/Certification Program The Path to 100% Renewable Jet Fuel Next Steps/Project Development Summary Q&A

UOP Proprietary

Honeywell Corporate Overview

125,000 employees in more than 100 countries A Fortune 100 company sales of $34.5 billion in 2008 Global leader in advanced technology products, services and solutions
Specialty Materials

Transportation & Power Systems

Aerospace
15% 36% 15%

UOP

34%

Automation & Control

Technology Company, Financially Strong and Global

UOP Proprietary

UOP Overview
Leading supplier and licensor of processing technology, catalysts, adsorbents, process plants, and technical services to the petroleum refining, petrochemical, and gas processing industries for over 90 years UOP Technology Furnishes: 60% of the worlds gasoline; 70% of the worlds modern detergents; 60% of the worlds para-xylene ~3000 employees worldwide 08 Financials: ~$2 billion sales; Strong relationships with leading refining and petrochemical customers worldwide 70+ processes in 6,000+ units in hydrocarbon processing industry; 300+ catalysts, adsorbents; 31 of 36 refining technologies in use today created by UOP
2003 National Medal of Technology Recipient

Track Record Of Technology Innovation

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

Oxygenated Biofuels
Ethanol Biodiesel

Renewable Energy
Fuel & Fuel & Power Power

Hydrocarbon Biofuels
Diesel Jet Gasoline

Other Oils: Camelina, Jatropha

First Generation

Second Generation

Natural oils from vegetables and greases

UOP Proprietary

Lignocellulosic biomass, algal oils

UOP RE&C Technologies & Capabilities

Feed
Natural Oil/Fats Hydrogen

Process EcofiningTM EcofiningTM Process Process

Natural Oil/Fats Hydrogen

Renewable Jet Renewable Jet Process Process

UOP RE&C Capabilities Studies Scoping Green Diesel Revamp Green Jet (if req) Blending / LP Engineering Design HVO: 000s Catalyst Supply barrels/day Key Eqpt Supply Start-Up Services Green Jet Training Services Green Diesel Technical Support Product

Envergent Technologies UOP/Ensyn JV

Biomass

Rapid Thermal Rapid Thermal Processing Processing (Pyrolysis) (Pyrolysis)

Green Power / Fuel Oil (now)

Upgrading Process Upgrading Process

Green Fuels (2011)

Sustainable technologies feedstock flexible & 2nd Gen ready

UOP Proprietary

Discussion Topics
Introduction to UOP Legislative and Market Drivers The UOP Renewable Jet Process Bio-SPK Feasibility/Certification Program The Path to 100% Renewable Jet Fuel Next Steps/Project Development Summary Q&A

UOP Proprietary

Aviation Market Outlook

UOP Proprietary

Forecast of Aviation CO2 Emissions

Using less fuel

- Efficient Airplanes - Operational Efficiency

Changing the fuel

- Sustainable Biofuels

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

Low carbon fuels a key part of emissions reduction

UOP Proprietary

Jet Fuel Price Trends

UOP Proprietary

EU Emissions Trading Scheme

Directive 2008/101/EC passed 19th November 2009, amending Directive 2003/87/EC to include aviation activities in the scheme for GHG allowance trading within the Community For Aviation Covers all flights departing and/or arriving at a Member State airport Historical aviation emissions for each airline mean average of emissions from 2004, 2005 & 2006 From Jan 2012 to Dec 2012, the allowance shall be 97% of the historical average From Jan 2013 onwards the allowance shall be 95% of the historical average The emission factor for biomass shall be zero i.e. biofuels used do not count as emitting any GHGs Non-compliance i.e. failure to submit records, could result in fine of 100/tonne of CO2 Airlines estimate that ETS could add as much as $18/barrel to fuel cost

EU GHG Emissions by Sector as an Index of 1990 Levels 180 Index 100 =1990 160 140 120 100 80 60
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year
Int Aviation Energy Industrial Processes Agriculture Waste Total (Without LUCF) Transport

Source: ICAO

Presents a golden opportunity for green jet

UOP Confidential

300K BPD

Discussion Topics
Introduction to UOP Legislative and Market Drivers The UOP Renewable Jet Process Bio-SPK Feasibility/Certification Program The Path to 100% Renewable Jet Fuel Next Steps/Project Development Summary Q&A

UOP Proprietary

UOP/ENI Ecofining for Green Diesel

Superior technology that produces drop-in diesel, rather than an additive Uses existing refining infrastructure, can be transported via pipeline, and can be used in existing automotive fleet Two units licensed in Europe with first commercial start-up in 2011 Excellent blending component, allowing refiners to expand diesel pool by mixing in bottoms
Process Comparison vs. Biodiesel
Natural Oil/ Grease Biodiesel (FAME) Biodiesel (FAME) + Glycerol

+
Methanol Natural Oil/ Grease

+
Hydrogen

Green Diesel Green Diesel

+ Propane

Performance Comparison
Property Oxygen, % NOx, % Specific Gravity Cetane Sulphur, ppm Energy Density, MJ/kg Cold Flow Oxidative Stability ULSD 0 Baseline 0.84 40-55 <10 43 Baseline Baseline Biodiesel 11 +10 0.88 50-65 <2 38 Poor Poor Green Diesel 0 -10 to 0 0.78 75-90 <2 44 Excellent Baseline

High quality drop-in biofuel for ground vehicles

UOP Proprietary

UOP Renewable Jet Process Overview

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 Certification for blending up to 50% in progress
Built on Ecofining Technology
Natural Oil/ Grease Deoxygenating/ Deoxygenating/ Isomerization Isomerization Green Green Diesel Diesel

Natural Oil/ Grease

Deoxygenating/ Deoxygenating/ Selective Cracking/ Selective Cracking/ Isomerization Isomerization

Green Green Jet (SPK) Jet (SPK)

DARPA Project Partners

UOP Confidential

Use of Green Jet Fuel

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
Crude Oil Natural Oils & Fats

Oil Refinery

UOP Renewable Jet Process

Fossil Jet Fuel

Synthetic Paraffinic Kerosene

50-100%

0-50%

Fully Fungible drop-in Renewable Fuel

A drop-in biofuel for aviation

UOP Proprietary

UOP Stage Gate Process

Idea Validated
Idea Generation

Scoping Studies Initiated Stage 1

Techno-Economic Evaluation Initiated Stage 2 Stage 3

Pending Decision to Proceed Stage 4 Stage 5

Scoping

Concept Selection
Gate 3

Development
Gate 4

First Commercial Unit

Gate 5

Product Launch

Gate 1

Gate 2

Idea Screening

Project Selection

Devt Approval

Scale-up Approval

Product Launch Approval

PostLaunch Review

Passed Gate 4 in December 2009 Ready For Process Design #1 in 1Q 2010

Enables UOP to guarantee new technology

UOP Proprietary

Renewable Jet (Bio-SPK) Chemistry

Feedstocks Rapeseed Tallow Jatropha Soybean Algal Oils Palm Oil Camelina Greases
HO O O HC O O OO O Triglyceride Triglyceride Feed MW=700-900 Free Fatty Acid Free Fatty Acid MW=200-300 CO2 CH3 H2 CH3 CH3 CH3 H2O H3C CO2 H2O + + H3C H3C H3C CH2 + H3C Straight Chain Paraffins Straight Chain Paraffins CH3 CH3 CH3

H3C

CH3

UOP Catalyst

Natural oils contain oxygen, have high UOP Catalyst H molecular weight. CH CH First reaction removes oxygen product is diesel range waxy paraffins CH Synthetic CH CH HC HC Paraffinic Second reaction cracks diesel paraffins to + Synthetic Paraffinic Kerosene smaller, highly branched molecules Kerosene CH HC CH CH End product is same as molecules already + CH HC present in aviation fuel End product is independent of starting oil
2 3 3 3 3 3 3 3 3 3 3 3 3

Feedstock flexible, but with consistent product properties

UOP Proprietary

UOP Renewable Jet Process

Feedstocks Rapeseed Tallow Jatropha Soybean Algal Oils Palm Oil Camelina Greases
Deoxygenation Selective Hydrocracking Product Separation Hydrogen Light Fuels CO2

SPK (Green Jet)

Green Diesel

Water

Recycle

Feedstock flexible Optimised for 50% SPK yield Makes valuable hydrocarbon co-products

- Green Diesel - Green Naphtha - Green LPG

Ability to swing anywhere between Max SPK and Max Green Diesel production to meet market demand

Commercial scale, proven technology

UOP Proprietary

Renewable Jet Process: Preliminary Yield Estimate

Max SPK Mode Max Diesel Mode

Item

FEED, kg/hr Palm Oil Hydrogen Total PRODUCTS, kg/hr Off-Gas Light Fuels Naphtha SPK Diesel Water Total 2172 2414 13703 19888 0 3289 41466 2172 2204 4865 0 28678 3289 41208 39776 1686 41462 39776 1432 41208

Green Jet Yield, ~ 50 wt% of feed Primary by-product, Light naphtha & LPG H2 consumption varies based on feedstock:

- For Palm: ~ 4 wt% of feed\

Process being further optimized to have more diesel as a byproduct in the max SPK mode

Key Properties of SPK

SPK is a short chain isomerized paraffin with the following properties:
Property
Freeze Point, F (C) Flash Point, F (C) Specific Gravity @ 60 F(15C) Sulfur, ppm Aromatics, vol % Viscosity, -20 deg C, mm2/sec Net Heat of Combustion, MJ/kg JFTOT Stability @300oC Filter dP, mmHg Tube Deposit Less Than

SPK Product
-40 to -53 (-40 to -47) >100 (>38) ~0.760 <2 0.0 3.4 44.0 0.0 1.0

Jet A-1 Civil Aviation Spec

-53 F (-47 C) Max 100F (38C) Min 0.775 to 0.840 0.30 wt% Max 25.0 vol % Max max 8.0 min 42.8 max 25 <3

JP-8 Military Spec

-53 F (-47 C) Max 100F (38C) Min 0.775 to 0.840 0.30 wt% Max 25.0 vol % Max

UOP has made SPK from jatropha oil, camelina oil, coconut oil, algal oil and tallow feedstocks

Meets key Jet A-1 and JP-8 Fuel Specifications

UOP Proprietary

Estimated Capital & Operating Costs

Approx Capital Cost for 6500bpsd unit Total Estimated Inside Battery Limits (ISBL) Erected Cost Total Estimated Outside Battery Limits (OSBL) Erected Cost Total Estimated Hydrogen Plant Erected Cost (if required) Total Estimated Feed Pre-Treatment Unit Erected Cost (if required) Grand Total Fully Integrated Unit $ 100,000,000 $20,000,000 $0 $0 (assume RB feed supply) $120,000,000 Greenfield Unit $ 100,000,000 $90,000,000 $35,000,000 $25,000,000 $250,000,000

Variable Cash Cost of Production estimated at $2.80 - $3.00/gal of SPK

- Assumes feedstock cost of $2.00 to 2.20/gal - Assumes $70/bbl of crude oil - Excludes subsidies and tax incentives
CCOP is currently 50% higher than fossil jet fuel

- If airline needs 20% substitution, total fuel bill rises by 10% (~$0.20/gal) - In line with EU calculation that airline will need to pay $0.20-0.50/gal extra to
purchase carbon credits
UOP Proprietary

Less expensive than Carbon Trading and/or BTL

Alternative Technology Routes

Solid Biomass Gasification SynGas Fischer Tropsch Hydrocracking/ Dewaxing Transport Fuels

BTL; demo scale production quantities have been difficult to achieve thus far

- Only CTL and GTL equivalent fuels have been made to meet specs
(with potential negative LCA effect from this approach)

BTL plant would be 4 8 times more Capex for same capacity compared with UOP Renewable Jet process BTL variable production cost expected to be similar to UOP Renewable Jet Process

BTL more capital intensive for same product

UOP Proprietary

Discussion Topics
Introduction to UOP Legislative and Market Drivers The UOP Renewable Jet Process Bio-SPK Feasibility/Certification Program The Path to 100% Renewable Jet Fuel Next Steps/Project Development Summary Q&A

UOP Proprietary

The Bio-SPK Program

In 2008-2009, an industry team conducted testing of biofuel (Bio-SPK). The goal was to determine the feasibility of sustainable biofuels at blends up to 50%(v).

Evaluate & select feedstocks

Identify & pilot processing methods Conduct fuel property tests

Flights & Engine Tests UOP Proprietary

Results published in AIAA-2009-7002: Sustainable Bio-Derived Synthetic Paraffinic Kerosene (Bio-SPK) Jet Fuel Flights and Engine Tests Program Results

Properties of SPK for Demo/Certification

Description
Flash Point, oC Freezing Point, oC JFTOT@300oC
Filter dP, mmHg Tube Deposit Less Than

Jet A-1 Specs

Min 38 Max -47 max 25 <3 min 42.8 max 8.0 max 3000

SPK (Jatropha)
46.5 -57.0 0.0 1.0 44.3 3.66 <1

SPK (Camelina)
42.0 -63.5 0.0 <1 44.0 3.33 <1

SPK (Jatropha/ Algae)

41.0 -54.5 0.2 1.0 44.2 3.51 <1

Net heat of combustion, MJ/kg Viscosity, -20 deg C, mm2/sec Sulfur, ppm

About 6,000 US Gallons of Bio-SPK made for commercial demo flights, commer Certification supply work has uniquely allowed UOP to test the process and the catalyst at large Demo Capacity US Military accelerating certification program - UOP recently won an unprecedented HRJ-5/8 supply award from DESC for 241,500 gallons product plus optional supply of further 350,000 gallons First delivery completed on time and on spec for US Navy

Fuel Samples from Different Sources Meet Key Properties

UOP Proprietary

Completed Flight Demonstrations

Feedstock: Jatropha oil

Successful ANZ Flight Demo Date: Dec. 30 2008

Feedstock: Jatropha and algal oil

Successful CAL Flight Demo Date: Jan. 7 2009

Feedstock: Camelina, Jatropha and algal oil

Successful JAL Flight Demo Date: Jan. 30 2009

UOP Proprietary

KLM European Test Flight Completed

KLM sponsored its first ever flight with green jet fuel in November 2009 HRJ SPK fuel was produced by UOP to D7566 specifications, using Camelina Oil feedstock

UOP Proprietary

http://www.icis.com/blogs/green-chemicals/2009/11/flight-of-the-green-jet-fuel.html

Engine Testing with Bio SPK (Green Jet)

Extracted from Bio-derived SPK Report being reviewed by ASTM, CRC, IATA, for Certification Vote, expected in May 2010

US Military Supply Contracts

AF and Navy are now certifying HRJ through large fuel purchases through the Defense Energy Support Center (DESC)

These fuel purchases will accelerate the military certification of HRJ fuels 1600 gallons of on-spec HRJ-5 was delivered to the Navy on spec and on time Additional fuel is being produced to meet the next Navy and Air Force deadlines HRJ5 and HRJ8 specification limits are more stringent than ASTM D7566 spec Overall program will further demonstrate the feedstock and process flexibility of the UOP technology to produce HRJ fuels to meet different specifications
Volume (gallons) 40,000 150,000 100,000 100,000 100,000 100,000 1,600 Type of Fuel Navy HRJ-5 Navy HRJ-5 Air Force HRJ-8 Air Force HRJ-8 Air Force HRJ-8 Air Force HRJ-8 Navy HRJ-5 Feedstock Camelina Camelina Camelina Tallow Camelina Tallow Algal Oil Prime Supplier Sustainable Oils Sustainable Oils Sustainable Oils UOP (Cargill Feed) Sustainable Oils UOP (Cargill Feed) Solazyme Producer UOP UOP UOP UOP UOP UOP UOP Optional Amount Optional Amount Optional Amount Comment

Line Item 1 2 3 4 5 6 7

All from 2nd Generation Sustainable Feedstock

UOP Proprietary

ASTM D7566 Issued 1st Sept 09

D1655
5.1 Materials and Manufacture
Table 1 Fuel Produced to D7566 Can Be Designated as D1655 Fuel

D7566
Blend Comps Criteria and Blend % Limits Annex 1 Annex 3 50% Other Adv Hydprossd Other Adv Fuels or SPK Fuel Fuels or Processes Blends Processes Annex 2
Av Turbine Fuel Containing Syn HCs

Table 1
Blended Fuel Performance Properties

Body of Spec Applies to Finished Semi-Synthetic Fuel Annex for Each Class of Synthetic Blending Component Allow Re-Certification to D1655 Annex 1 - Hydroprocessed SPK Includes 50% FT Fuel

Certification of SPK to 50% targeted for 2010

Slide courtesy of Mark Rumizen, FAA/CAAFI

UOP Proprietary

Certification-Qualification Phase
- ASTM D4054 Fuel Qualification Process

Specification Properties
FRL 4.2

Fit-For-Purpose Properties
FRL 6.1
ASTM Review

Component/Rig Testing
FRLs 6.2 & 6.3

Engine/APU Testing
FRL 6.4

Accept

& Ballot

Reject

Re-Eval As Required

ASTM Specification

ASTM ASTM Research Research Report Report OEM Review & Approval

ASTM Specification

ASTM Balloting Process

FRL 7: Fuel Class Listed in Intl Fuel Specifications

Slide courtesy of Mark Rumizen, FAA/CAAFI

UOP Proprietary

Performance and operability testing of BioSPK is similar to that of jet fuel

Specific Fuel Consumption: The Bio-SPK blends show an improvement when compared to jet fuel, consistent with the heat of combustion increase. Lean Blow Out margin: Comparisons were made between typical jet fuel and the Bio-SPK blends, showing equivalent performance. Engine starts: Under both cold-soaked and warm thermal state conditions, no significant changes were noted in start times or in peak starting exhaust gas temperature. Light off delay: The time interval between introduction of fuel into the combustor and fuel ignition was compared, with no significant changes noted. Acceleration response: No significant changes in engine acceleration response time or peak EGT were noted during acceleration tests. All phases of flight, including In-Flight Restart: No significant changes were noted for the use of the Bio-SPK blends for all 3 aircraft flight tests. Boroscope Inspections: No significant engine deterioration changes were noted from comparing pre- and post-flight boroscope analyses.

Life Cycle Analysis (LCA)

Cumulative Energy Demand
1.6 MJ (Input)/MJ (Output) 1.4 1.2 1 0.8 0.6 0.4 0.2 0
Kerosene Jatropha Camelina Green Green Jet Jet Tallow Green Jet Soy Green Jet

Greenhouse Gases
90 80 70 g CO2 eq./MJ 5000 4000 3000 2000 1000 0 -500
Kerosene Jatropha Camelina Tallow Green Green Green Jet Jet Jet Soy Green Jet

LUC Error Bar

50 40 30 20 10 0

Non-renewable, Fossil Renewable Biomass Renewable, Water

Non-renewable, Nuclear Renewable, Wind, Solar, Geothe

Cultivation Fuel Production Use

Oil Production Transportation

Bio-Jet Fuel Provides Significant GHG Reduction

UOP Proprietary

g CO2 eq./MJ

60

Discussion Topics
Introduction to UOP Legislative and Market Drivers The UOP Renewable Jet Process Bio-SPK Feasibility/Certification Program The Path to 100% Renewable Jet Fuel Next Steps/Project Development Summary Q&A

UOP Proprietary

2nd Generation Renewable Jet Fuel from Oils and Biomass

Natural Oils and Fats

Deoxygenation

Selective Cracking/ Isomerization

Green Jet-range Jet-range paraffins

Synthetic Paraffinic Kerosene

Renewable Jet Fuel

Solid Biomass Pyrolysis Catalytic Stabilization/ Deoxygenation Jet Range cyclic hydrocarbons

Renewable Jet Aromatics

UOP Proprietary

UOP 5016-10

The Future: 100% Renewable Jet

The Boeing hydroplane ran on 98% Bio-SPK and 2% renewable aromatics at SeaFair, Seattle in Aug 2009 Jet A1 Spec -47 39 0.775 Starting SPK -63 42 0.753
UOP Proprietary

Freeze Point (oC) Flash Point (oC) Density (g/mL)

Woody Pyrolysis Oil Aromatics -53 52 0.863