Taconic Energy Overview NYSERDA Business Development Program Review William Acker

1. Taconic Energy OverviewNYSERDA Business Development Program ReviewWilliam Acker June 10th, 2010

2. Taconic Energy Overview Save billions of gallons of oil Eliminate tens of millions of tons of CO2 Do it NOW – without changing vehicles, fuel, or infrastructure Each gallon of bio-surfactant saves 50 gallons of fuel and 1000 pounds of CO2 Based on sound science and validated in extensive testing Unique chemistry NYSERDA contracts Independent lab testing Strong team Multi billion dollar market Market penetration strategy

3. Product How it works Frictional losses are substantial Ability to target site Metal affinity and lubricity Dose One gallon of bio-surfactant treats 2,000 gallons of fuel Benefits 2% to 5% fuel savings (3% to 7% with ongoing use) 50 gallons of fuel saved per gallon of bio-surfactant 1000 pounds CO2 reduced per gallon of bio-surfactant Reduce engine wear

4. Team William Acker CEO Serial Entrepreneur Vast experience in energy sector James Ketcham President Lead Texaco Fuel Research and Chevron Fuel Additive Technology Expert in performance testing of fuels and additives Benjamin Kaufman CTO Lead Texaco Fuel Additives Research and BASF Fuel Additive Business for NAFTA region Expert in fuel additive chemistry Carl Tomik Product Manager 25 years of sales experience Business-to-business and consumer experience

5. Markets Vehicle Fleets Gasoline portion approx. $100MM, with $10MM entry segment After Market Additives Gasoline retail Specialty retailers (Hypermarkets) Regional firms Multi-nationals Diesel Markets Bulk Fleets & Military Future Carbon Market? Price on carbon EPA mandates

6. Market Strategy Launch in US fleet vehicle market in 2011 Economic savings aligned with purchase decision making Create awareness Field experience and supply chain scale Select international markets High fuel cost markets Educated consumers Domestic specialty retailers (hypermarkets) Willingness to differentiate Green marketing value Broader fuel retailer market

7. Competition Initially competing against non-consumption Detergents Restore performance v. improving performance Can have large affects in select vehicles After-market products Different market segment High consumer skepticism Traditional fuel additive companies

8. Taconic Chemistry • Delivered with fuel to site where needed (“silver bullet”) • Thermally survives on combustion wall, provide friction modification there and in oil, combusted when not on wall • Polar head and attachment chemistry matters • High affinity for metal surface • Orientation to provide dense packing • Tail properties matter • Length, geometry and bulk Molecule Design Strategy Lubricity providing Tail Attachment Point Polar Head

9. Bio-surfactant Design Considerations • Environmental • EPA registered for use in US fuel • Substantially similar classification (CHONS) • Renewably derived – used in cosmetics/shampoos • Compatible with commercial handling and distribution • Cost and Processing • Derived from inexpensive starting materials • Special production metallurgy or conditions not needed • Desired product maximized/waste minimized • Intellectual property estate being pursued • Broad patent on class of materials as fuel additives- application filed • Method for use in diesel – application being prepared

10. Vehicle Testing Fleet Test Taconic Pkwy Road Test EPA HFET “Real World” Road Test Standard Dyno Test “Real World” Experience • “Real World” evaluation in centrally fueled fleets • Historical vehicle fuel economy comparisons for single sites • Historical site fuel usage comparisons • Engine wear data comparisons via oil sample analyses 4.3% Improvement 4.6% Improvement

11. Taconic Energy Additive Solutions Discussion and Thank You