Products Renewable F-76 and JP-5 Renewable Jet, Diesel, Gasoline and Propane

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1 UC Davis ANE Symposium Long Beach, CA February 26, 2018

2 Location Paramount, California Process Technology Catalytic Hydrotreating (Honeywell-UOP) Design Capacity 2,500 bbls/day Feedstock Inedible agricultural fats and oils Products Renewable F-76 and JP-5 Renewable Jet, Diesel, Gasoline and Propane

3 Risk Elimination and Capital Efficiency Significant Use of Reconfigured Assets. The AltAir Paramount project reconfigured existing equipment significantly reducing capex and expediting several permitting requirements relative to a similar greenfield facility No. 5 HDS Unit Penex Unit Offsite Equipment Description > Reactor charge pump > Recycle gas compressor > Reactor feed / effluent heat exchangers > Reactor charge heater / stripper reboiler > Reactor effluent air condenser > Reactor product separator > Recycle gas amine scrubber KO drum > Recycle gas amine scrubber tower > Recycle gas compressor KO drum > Penex reactors > Feed / effluent heat exchangers > Reactor charge heater > Tallow feed tank > Vegetable oil feed tank > Diesel rundown tanks > Jet rundown tanks > Finished diesel tank > Finished jet tank Blueprint For Additional Locations The project also highlights a repeatable process that can be used to efficiently deploy similar conversions at other refineries Select New Equipment Purchased Equipment Description > Reactor feed / effluent heat exchangers > Pretreat reactor > Deox reactor > Reactor effluent air condenser > Reactor product separator > Reactor charge pump > Fractionation tower > Hydrogen from Praxair facilities 3

4 PROJECT PARTNERS Customers Regulatory, Standards & Associations Technology Site/O&M Supply/Marketing Working Capital Project Finance Construction Defense Logistics Agency Meets fuel performance requirements Requires NO change to airplanes or engines Requires NO change to infrastructure Can be mixed or alternated with Flight Jet-ATested fuel Jet Engine OEM s DPA Title III 4

5 UOP Process Flow Diagram Technology Guaranteed by Water, CO 2 1 H 2 Renewable Products: Lipid Feedstock deco 2 & HDO Separation 2 3 Selective Hydrocrack Product Recovery Gasoline / Chemicals Jet Diesel 1 Guard Reactor First reaction: Removes oxygen from natural oils and produces diesel range waxy paraffins 2 Treating (Deoxygenation) Reactor Second reaction: "Cracks" diesel paraffins. End products are molecularly identical to petroleum fuels/components 3 Guard Reactor Cracking Reactor Treating (Deoxy Reacto Graded bed layers Demetallization catalyst Demetallization catalyst Graded bed layers & demetallization catalyst Deoxygenation catalyst Graded bed layers All beds contain cracking catalyst Demetallization catalyst Demetallization catalyst Removes remaining contaminants (metals, phosphorous), controls pressure drop, some saturation occurs Removes O 2, removes S & N, converts triglycerides to straight chain diesel range paraffins Converts straight chain diesel range parraffins to branched jet range paraffins 5

6 Renewable Jet Freezing point High temperature thermal stability Energy density Storage stability Elastomeric compatibility Must be a replacement solution Meet ASTM fuel specs Have a low CO 2 footprint Synthetic Paraffinic Kerosene (SPK) from a Bio-Derived Source Property Jet A or Jet A-1 SPK ASTM Test Method Fluidity Camelina Jet Algae Jet Freezing point, degrees Celsius max -40 Jet A Combustion -47 Jet A-1 Net heat of combustion, MJ/kg min * Data Provided by UOP 23 C Lower Freeze Point Nearly 4% more energy content D 5972, D 7153, D 7154, or D 2386 D 4529, D 3338, or D

7 Customer Demand Signals Meets fuel performance requirements Requires NO change to airplanes or engines Requires NO change to infrastructure Can be mixed or alternated with Jet-A fuel 7

8 Relative CO 2 emissions as compared to jet fuel GreenJet - Reduces Greenhouse Gas by 84%* % 1 0 Jet fuel from coal Jet fuel from coal with CO 2 sequestration Jet fuel from crude oil Jet fuel from plant sources Liquid hydrogen from water and nuclear power * Based on a Life Cycle Assessment performed by Massachusetts Institute of Technology 8

9 Successfully Tested by Customers December 30 th, 2008 January 7 th, 2009 January 30 th, 2009 August 2 nd, 2009 October 13 th, 2009 November 23 rd, 2009 March 25 th, 2010 April 22 nd, 2010 August 27th, 2010 March 18th, 2011 AltAir has been awarded and delivered 9 separate U.S. Department of Defense contracts More than 30 successful military and commercial certification flights conducted 9

10 Renewable Jet ASTM D , Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons was approved July 1, 2011 allowing renewable fuels to be blended with conventional commercial and military jet (or gas turbine). ASTM D7566 allows up to 50 percent bioderived synthetic blending components to be added to conventional jet fuel. Hydroprocessed esters and fatty acids (HEFA), are identical to hydrocarbons found in jet fuel, but come from vegetable oil or from animal fats called tallow. The standard already has criteria for fuel produced using Fischer-Tropsch synthesis previously approved in Mark Rumizen (FAA), who helped lead the work to revise the specification, heads the certification-qualification group for the Commercial Aviation Alternative Fuels Initiative (CAAFI). The relevant ASTM committee that revised the D7566 standard consists of more than 2,000 members representing 66 countries. D7566 fuels also meet the requirements of ASTM D1655, Specification for Aviation Turbine Fuels, which has been used by the aviation community for decades for the quality control and distribution of conventional aviation turbine fuel. This allows these new D7566 fuels to be seamlessly integrated into the distribution infrastructure and onto certificated aircraft as D1655 fuels. 10

11 Policy Driven Pricing Disadvantage vs. Renewable Diesel RFS Equivalency Value Chicken and egg registration process Lower RIN equivalency vs. Renewable Diesel California LCFS Program did not contemplate renewable aviation fuel On track for program inclusion Q Policy application can disadvantage renewable jet vs. renewable diesel Rack fees vs. pipeline: LA CARB Diesel + CAR + LCFS Fee -? 11

12 First Production Jan 01, 2016: Plant started operating on (feed-in) Jan 05, 2016: First on-spec production of Naval Distillate (F-76) Jan 15, 2016: First product delivery completed to Defense Logistics Agency o 1.3 million gallons of F-76 consisting of a 10% blend of Renewable Diesel Jan 28, 2016: First on-spec production of Renewable Jet and Road Diesel 12

13 LAX Los Angeles World Airports March 11,

14 Customer Diversity Los Angeles World Airports Oslo Airport 14

15 The Future Growth of Renewable Jet Partnering to process novel feedstocks with existing process Solaris tobacco oil Agrisoma carinata oil Green Crude Oil Cellulosic feedstocks for hydroprocessing Abundant Low-cost Lower carbon intensity Technical and regulatory challenges 15

16 Thank You 16