Renewable Aviation Fuels Carbon War Room

1. RenewableAviation FuelsCarbon War Room April 2013 Note: This Presentation is designed for optimal use on screen rather than print-out. If you would like a printable version, please contact shunt@carbonwarroom.com

2. Carbon War Room Policy not enough The Market Capital Technology CWR: Dismantling Market Barriers not the bottleneck

3. Carbon War Room Source: Spring Ventures LLC, Bloomberg NEF

4. Biofuel Market Context: 2011 International Energy Agency Biofuel Roadmap and Production Forecast • Global biofuel supply grows from 2.5 EJ today to 32 EJ in 2050 • Biofuels share of total transport fuel increases from 2% today, to 27% in 2050 • In the longer-term, diesel/kerosene-type biofuels are particularly important to decarbonise heavy transport modes • Large-scale deployment of advanced biofuels will be vital to meet the roadmap targets • $11 trillion in investment in biofuels would be needed between 2011 and 2050 Final energy (EJ)

5. The Aviation Industry 650million tons total CO2e emissions in 2010 Forecast to reach 1100 by 2020 on Business-as-Usual

6. Emissions Reductions Plane & engine efficiency, satellite based navigation, and other advancementsare critical. Renewable jet fuels are essential to meet emission reduction targets. Source: Kar, Rahul (2010). Dynamics of Implementation of Mitigating Measures to Reduce CO2 Emissions from Commercial Aviation. S.M. thesis: Massachusetts Institute of Technology. • Renewable Aviation Fuels can get to GigaTonscale by catalyzing the switch to renewables for the entire “barrel”

7. Advanced Biofuel Feedstock Overview Jatropha • Jatropha is a perennial tree, which produces oil-bearing seeds and is capable of growing on marginal land Camelina • Camelina is an annual oilseed-producing plant, which is used as a rotational crop in dry-wheat farming regions Pongamia • Pongamia is a leguminous oilseed-producing tree with naturally high oil yields and can be grown in marginal conditions Halophytes • Halophytes are salt tolerant plants capable of growing on coastal deserts and can be irrigated with full strength seawater Algae • Aquatic microorganisms capable of producing high oil yields • Autotrophic algae are grown in open ponds or photo-bioreactors • Heterotrophic algae are grown in dark fermentation tanks Cyano-bacteria Aquatic, photosynthetic microorganisms capable of producing high volumes of biomass Non-food cellulosic biomass can include agriculture residues, timber residues, municipal solid waste, or dedicated biomass energy crops such as macroalgae Cellulosic Biomass Industrial Gasses Emissions from steel mills, coal-fired power plants, and other industrial facilities.

8. Advanced Biofuel Conversion Pathways Natural Oils Biomass Jatropha and Other Perennial Oilseeds Camelina Halophytes Aquatic Micro-Organisms (AMOs) • Food-based crops (corn, sugarcane) • Dedicated Energy Crops • Residues/Waste streams Hydrotreating Thermochemical Conversion of Biomass Hydrolysis of Biomass to Produce Sugars Liquid-Phase Catalytic Processing Fermentation of Sugars through GMOs to Produce Alcohols, Oils or Hydrocarbons Gasification to Fischer-Tröpsch Pyrolysis Oil Further Refining to Produce Finished Fuels Source: FullerSmith LLC

9. Overview of Biomass Conversion Pathways: Highly complex compared to natural oils Lipids, hydrocarbon precursors, and drop-in fuels Starch Fermentable or “free” sugars GMOs Dilute acid or amylase pretreatment Fermentation Ethanol, Butanol, Lactic Acid, Chemical Monomers Alcohol Oligomerization Physiochemical, chemical, biological, or electrical pre-treatment Lignocellulosic Biomass Enzymatic or chemical hydrolysis Gasoline, Diesel, Jet Fuel, Organic Chemicals Cellulose Hemi-cellulose Combustion Lignin Recycled Power Bio-gasses Pyrolysis Isomerization Fischer-Tropsch Synthesis Bio-char Co-products Alcohol Oligomer-ization Deoxygenated hydrocarbons Bio-oils Hydrogenation, cracking Dirty Syngas Clean Syngas Gas Clean-up Gasification Alcohols Alcohol Synthesis Oxygenated Hydrocarbons Liquid-phase catalytic Processing Source: FullerSmith LLC

10. Context • Fuel industries are extremely capital intensive • Economic crash has delayed advanced fuel industry commercialization • Hard to get project finance • Investor interest flagged • Stock values down – starting to stabilize • Energy markets are hugely distorted – not a level playing field! • > 250 types of fossil fuel support in just the 24 OECD countries (http://www.oecd.org/site/tadffss/) • IMF: Energy Subsidy Reform: Lessons and Implications

11. The Barriers Information GLOBAL, COMMERCIAL SCALE, ADVANCED, RENEWABLE FUEL INDUSTRY Sustainability Finance Technology Feedstocks Logistics Technical Certification

12. The Barriers: Information Most companies & many technologies are early stage Tremendous variation in: • Capital requirements • Environmental / Carbon Impacts • Technology maturity • Feedstock Availability & Costs Lack of uniform metrics and side-by-side analysis Lack of Understanding of options, roles, risks, commercialization pathways, and potential to scale Better information is required to accelerate the formation of the Renewable Aviation Fuel Market

13. RenewableJetFuels.org

14. The Barriers: Sustainability

15. The Barriers: Finance: Valley of Death