Presenter: Bryan Sherbacow Mr. Sherbacow brings over 15 years of senior leadership experience in corporate development of both industrial process and financial services businesses with expertise in organizational development, project development, financial structuring, mergers and acquisitions, public offerings, government relations and environmental matters. Over the past seven years he has been an active participant in the U.S. renewable energy sector as a principal investor, officer and director of a publicly traded biofuels company as well as a corporate advisor. Mr. Sherbacow has been a frequent contributor to several renewable energy publications as well as a featured guest on CNBC. Since 2010, Mr. Sherbacow has served as President of AltAir Fuels, an integrated refiner of renewable jet, renewable diesel and renewable chemicals. During this time AltAir has been awarded and delivered 5 separate U.S. Defense Logistics Agency contracts for over 600 thousand gallons of renewable jet fuel. To date, more than 30 successful military and commercial certification flights have been conducted using AltAir s renewable jet fuel. Currently, AltAir is constructing a west coast bio refinery with a production capacity of 30 million gallons per year. The facility is scheduled for commercial production in the 1st quarter of 2015.
Paramount, CA GreenJet Refinery Bryan Sherbacow, President
Renewable Jet Biorefinery Location Paramount, California Operating Agreement Alon USA to provide O&M and logistics services Production Capacity 40 million gallons per year with design capacity to increase to 72 million gallons per year Feedstock Inedible agricultural waste fats and oils Product Offtake United and World Fuel Services. Start-up Timing 1st quarter 2015 2
More Feedstocks, More Fuels, More Experience Feedstock Diversity Process Versatility Camelina Tallow Algal oils Jatropha Rapeseed Pennycress Soy Palm F76 HRJ 5 Mil Spec HRJ 8 Renewable Jet Renewable Diesel Naphtha LPG Over 2 years commercial operation of 1 million gallons capacity Houston pilot plant 3
More Feedstocks, More Fuels, More Experience 4
Technology Guaranteed Process technology developed and guaranteed by UOP Honeywell Water, CO 2 H 2 Renewable Products Lipid Feedstock deco 2 & HDO Separation Selective Hydrocrack Product Recovery Gasoline/Chemicals Jet Diesel First reaction removes oxygen from natural oils Produces diesel range waxy paraffins Second reaction cracks diesel paraffins End products are molecularly identical to petroleum fuels/components 5
PROJECT PARTNERS 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 6
Regionally Integrated Production California Production Strong regional refinery host Operations & Maintenance Environmental Access to petroleum blendstock products Redundant, regional, multi-feedstock supply relationships with substantial excess supply capacity Multimodal logistics Rail Truck Trans load access to pipeline and barge Corcoran Crusher 200k Acre Camelina Direct Rail Access Paramount Refinery Truck Delivery LAX Delivery Site Tallow Suppliers Proximity to large jet/diesel user markets 7
FACT SHEET: RENEWABLE JET The industry is exploring reliable alternatives to conventional jet fuel that are sustainable and have a smaller carbon footprint. Main requirements for sustainable alternative jet fuels: 1. Can be mixed with conventional jet fuel, can use the same supply infrastructure and do not require adaptation of aircraft or engines (drop-in fuel) 1. Meet the same specifications as conventional jet fuel, in particular resistance to cold (Jet A: -40 C, Jet A-1: -47 C), and high energy content (min 42.8 MJ/kg) 1. Meet sustainability criteria such as lifecycle carbon reductions, limited fresh water requirements, no competition with food production and no deforestation Sustainable aviation biofuels ( biojet fuels ) are one of the most promising solutions to meet the industry s ambitious carbon emissions reduction goals 8
ASTM CERTIFIED FUEL 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 ASTM standard approved in May 2011 for up to 50/50 blend of Biojet and Jet-A 9
Renewable Jet Boeing Fuel Test Results Synthetic Paraffinic Kerosene (SPK) from a Bio-Derived Source Property Boeing fuel testing requirements: Freezing point High temperature thermal stability Energy density Storage stability Jet A or Jet A-1 Elastomeric compatibility Must be a replacement solution Meet ASTM fuel specs Have a low CO 2 footprint SPK ASTM Test Method Fluidity Camelina Jet Algae Jet Freezing point, degrees Celsius max -40 Jet A -63-55 Combustion -47 Jet A-1 Net heat of combustion, MJ/kg min 42.8 44.0 43.5 * 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 4809 10
RENEWABLE 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 11
RENEWABLE GHG CYCLE 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 12
Global Initiatives to Adopt Renewable Jet The European Union, with its Biofuels Flightpath project, has set a target of two million tons per year of aviation biofuels in Europe in 2020, which is about three to four percent of total jet fuel use in Europe. Aviation Initiative for Renewable Energy in Germany has set a target of 10% of alternative aviation fuel for 2025. Indonesia has introduced a biojet fuel mandate of 2% commencing in 2016, rising to 5% by 2025. A three percent volume blend-in of sustainable biojet fuel yearly worldwide would reduce aviation CO2 emissions by about two percent, which would be a reduction of over 10 million tons of CO2. 13
Relative CO 2 emissions as compared to jet fuel AltAir Fuels GreenJet - Reduces Greenhouse Gas by 84%* 3 2 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 * Based on a Life Cycle Assessment performed by Massachusetts Institute of Technology Liquid hydrogen from water and nuclear power 14
Cultivated, Processed and Successfully Tested 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 5 separate U.S. Department of Defense contracts More than 30 successful military and commercial certification flights conducted using AltAir Green Jet 15
Alternative Fuels in Practice Between 2008 and 2011, at least ten airlines and several aircraft manufacturers performed flight tests with various blends containing up to 50% biojet fuel. The following observations were made*: No modifications to the aircraft were required Engines powered on biojet showed an improvement in fuel efficiency in some cases Since ASTM certification 2011, 21 airlines have performed over 1,600 commercial passenger flights Lufthansa successfully completed a six-month series of commercial flights to study the long-term effect of biojet fuel on engines, noting no adverse effects KLM conducted 26 long-haul flights in 2013 demonstrating it is possible to organize and coordinate a complex supply chain and fly regular scheduled flights on biojet fuel. In 2013, United Airlines executed the first non-test commercial contract for biojet with AltAir * International Air Transport Association (IATA) 16
Paramount Opportunity The technology to produce renewable, drop-in jet fuel is now available Regulatory approvals from the FAA and standards body ASTM have been issued Federal (EPA s RFS) and California (LCFS) environmental frameworks provide environmental credits that allow renewable jet to be competitively priced Operational Q1 2015 with 40 million gallons per year capacity Sustainable biojet allows users to reduce their carbon footprint, ease their dependence on fossil fuels, and offset the risks associated with the high volatility of oil and fuel prices 17
Paramount Opportunity Thank You For Letting Us Share Our Progress 18