By Joe James, President Agri-Tech Producers, LLC

1. Using Torrefied Wood as a Coal Replacement, for Superior Pellets and Cellulosic Ethanol Production By Joe James, President Agri-Tech Producers, LLC Agri-Tech Producers, LLC

2. Torrefaction: A Technology to Densify & Enhance Biomass • Untreated biomass may be 50% water, it’s bulky and it’s not the most efficient or useable fuel or bio-feedstock. Torrefaction: • Drives off most of the water • Reduces the bulk • Makes a better co-fire fuel to burn with coal • Makes superior briquettes and pellets • Torrefaction, applied at or near the point of harvest: • Reduces transportation costs of biomass, per BTU • Produces a more valuable biomass shipment Agri-Tech Producers, LLC

3. Untreated Biomass: Bulky Moist Fibrous Perishable Waste Expensive to transport Torrefied Biomass:: Dense, If Pelletized, Etc. Dry & Water Resistant Easily Crushed Does Not Rot Valuable Fuel Energy Dense Torrefaction: Adding Value and Reducing Transportation Cost/BTU Agri-Tech Producers, LLC

4. The Process of Torrefaction • Heating (300-400º C) wood, in a low-oxygen environment, liberates water, volatile organic compounds (VOC’s), and hemicellulose (HC) from the cellulose and lignin. • The VOC’s and HC are combusted to generate 80% of the torrefaction process heat. • The remaining and warm lignin acts as a binder when the torrefied wood is pelletized. • Torrefied wood can easily replace coal in combustion or be a feedstock for further pyrolysis or gasification for combined heat and power or Fischer-Tropsch liquids. Agri-Tech Producers, LLC

5. Schematic of Torrefaction Machine Agri-Tech Producers, LLC

6. Higher Heating Value of Torrefied Wood, Charcoal and Coal: Color Approximately Indicates Heating Value Agri-Tech Producers, LLC

7. Chemistry of Torrefaction • At torrefaction temperatures, hemicellulose is the primary wood polymer that is degraded into: • Permanent gases include H2, CH4, aromatics, CO, CO2, CxHy • Condensable liquids include acids, ketones, furans, alcohols, terpenes, phenols, waxes, tanins, water • Solids include char, new and existing sugar structures and new polymers and ash. • All of the wood polymers undergo dehydration reactions that destroy –OH groups that are responsible for hydrogen bonding with water: this severely reduces the tendency of densified torrefied wood to absorb water. Agri-Tech Producers, LLC

8. Mass and Energy Balance of Torrefaction • Published results indicate mass and energy balance of .8 and .9 respectively (for dry wood). • This is consistent with the loss of the lower energy VOC and hemicellulose and retention of higher energy lignin and cellulose. • Assuming • 50% MC wood, • HHV of 8700 Btu/lb for dry wood, • 1000 Btu/lb latent heat of water, • .4 Btu specific heat for wood and 1 Btu specific heat for water, • Starting temperature of 75 F and exit temperatures of 500° F. • ~800 Btu used in processing, this energy is approximately equal to that of the VOC’s and hemicellulose. • ~3575 Btu left in remaining torrefied product, which weighs ~.33 lbs, for a HHV of 10,800 Btu/lb. Agri-Tech Producers, LLC

9. Making Electricity With Torrefied Wood • Torrefied wood is a much better fuel for co-firing with coal than untreated wood. • Torrefied wood can be ground to a particle size, similar to that of pulverized coal, with the same or less energy use. • Untreated wood requires many times the energy use, in grinding (by a factor of 7.5 to 15), to achieve a similar particle size. Agri-Tech Producers, LLC

10. Pelletizing & Briquetting Torrefied Wood • At torrefaction temperatures, the lignin in wood becomes plastic and can actually become a binder of individual wood particles. • Pellets made from torrefied wood may withstand 1.5 to 2 times the crushing force of normal wood pellets. • Torrefied pellets show little water uptake on immersion (7-20% of mass), unlike normal pellets. • University research in the 1930’s and 1940’s details benefits of torrefied wood pellets. Agri-Tech Producers, LLC

11. Density of Various Biomass Fuels Agri-Tech Producers, LLC

12. Delivered Cost per MM Btu Electricityby Distance to Customer Agri-Tech Producers, LLC

13. Delivered Cost Chart Assumptions • Coal is valued at $60 to $90 per ton delivered price • That torrefied wood (11,000 BTU/lb.) has a heating value nearly that of coal (12,000 BTU/lb.) and • That torrefied wood generates electricity with a similar efficiency to coal (35% fuel to electricity) • Untreated wood has a lower efficiency of conversion (23% fuel to electricity) • And wood can be processed into chips at a cost of about $15/green ton • $4.00/torrefied ton processing cost • Transportation costs for chips and torrefied wood are about $0.23 per ton per mile. Agri-Tech Producers, LLC

14. Agri-Tech Producers, LLC

15. ATP’s Partner: Kusters Zima Corporation 101 Zima Park Drive / I-85 Business Spartanburg, S.C. 29301 Tel: (864) 576-0660 8.74 Acres (35,362 Sq. Meters) Building Constructed in 1969 80,128 Total Manufacturing Sq. Ft. (7,444 Sq. Meters) Kusters Zima has over 40 years experience in engineering and manufacturing machinery for many various industries. • Complete Manufacturing • Water & Waste Water Equipment • Grit Removal & Washing • Course & Fine Screenings • Classifiers • CSO Screens • Dewatering • Carpet & Textile Equipment • Continuous Preparation • Dye Washers & Scour Ranges • Steamers • Liquid Dispensing • Water & Dry Lint Removal Systems • Contract Sales • Piece Parts & Components • Customer Specific Design & Build • Build to Print • Complete Metal Fabrication including Welding, Cutting, Forming and Piping. • Machining Capabilities that include CNC Turning and Vertical Milling Centers. • Complete Mechanical and Electrical Engineering with the latest Software Versions of SolidWorks and AutoCad. • Complete Mechanical and Electrical Assembly and F.A.T. for Production Machines and Prototypes. • Installation and Start-up Supervision.

16. ATP Resource: Mid-South Engineering Complete Engineering Services Production Process Development Process Conceptual Design Process Control Drawings EnergyConservation & Conversion Systems Civil Engineering Services Site Evaluation Grading & Drainage Plans Road & Railway Layouts Structural Engineering Services Equipment Foundations Building Foundations and Structures Machinery/Equipment Supports Fall Protection Systems Mechanical Engineering Services Custom Equipment Design Process Heating & Cooling Systems Design Piping Systems Equipment Specifications Electrical Engineering Services Power Distribution System Design Control System Design Lighting & Grounding Systems Communication Systems Electrical Power System Studies Arc Flash Studies Project Management Services Project Management Project Scheduling Contract and Invoice Administration Construction Services Turnkey Construction Construction Management Start-up Services Safety Coordination Helping manufacturers of pellets, briquettes, and other biomass products improve existing facilities or design and construct new facilities to meet the growing demand for renewable energy products. Hot Springs, Arkansas - USA 1658 Malvern Avenue Hot Springs, AR 71901 PH: 501-321-2276 Cary, North Carolina - USA 1149 Executive Circle, Suite A Cary, NC 27511 PH: 919-481-1084 Visit us at www.mseco.com We have over 40 years of experience in designing structural, mechanical, and electrical systems for major industrial facilities throughout North America and other locations around the world.

17. Using Torrefied Wood as a Coal Replacement, for Superior Pellets and Cellulosic Ethanol Production Joe James, President Agri-Tech Producers, LLC (803) 462-0153 JosephJJames@bellsouth.net Agri-Tech Producers, LLC