Energy Independence The Path to Commercialization of Drop-in Cellulosic Transportation Fuels Rural America Revitalization
Forward Looking Statements These slides and the accompanying oral presentation contain forward looking statements regarding future results and events, including, without limitation, statements about: the start-up of and commercialization at our biomass-to-fuel facility in Columbus, Mississippi, potential future sales of our fuels products, and our anticipated future operations and plans for financing. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward looking statements. Without limiting the foregoing, the words believes, anticipates, plans, expects, intends, appears, estimates, projects, will, would, could, should, targets, and similar expressions are also intended to identify forward looking statements. The forward looking statements in this presentation involve a number of risks and uncertainties. The Company s actual future results may differ significantly from the results discussed in the forward looking statements contained in this presentation. Such factors and others are discussed more fully in the section entitled Risk Factors in the Company s Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (SEC) on March 18, 2013, and the Company s other filings with the SEC, all of which are incorporated by reference in this presentation. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results, levels of activity, performance or achievement may vary significantly from what we projected. The Company specifically disclaims any obligation to update these forward looking statements in the future. Page 2
KiOR: a Unique Renewable Fuels Company Breakthrough cellulosic hydrocarbon-based fuel technology Scalable by leveraging established refining technologies Flexible, non-food feedstock input Fuels compatible with existing infrastructure and vehicle fleet Significant economic benefit for local communities Page 3
KiOR s Two Step Biomass-to-Fuel Process Proprietary Catalyst Leveraging Proven Process Technology Biomass KiOR BFCC Process Renewable Crude Upgrader Renewable Fuel Woody Biomass; Energy Crops Proprietary Catalyst Biomass Fluid Catalytic Cracking (BFCC) Hydrocarbons Proven Refinery Process Upgrading STEP 1 STEP 2 Today s Gas & Diesel Page 4
KiOR Process Page 5
Columbus, MS Refinery Page 6
KiOR Path to Commercialization 2008 2009 2010 2011 2012 2013 Pilot Plant Operations Pasadena Validation of Feasibility Demonstration Plant Pasadena Start of Commercial Plant Project 400 x 50 x Offtake Agreements for 100% of Production Commercial Plant Complete Part 79 Approvals (5%) First Shipments Part 79 Approvals (25%) Page 7
Traditional Non-food Feedstock, Gasoline and a Sustainable Diesel Approach Social Responsibility Given the growing world population, KiOR s focus is non-food feedstock Non-food feedstock does not compete with human food needs Sustainable Feedstock Surplus Southern Yellow Pine - initial feedstock Promotes sustainable forestry - harvest fraction of surplus Wood Chips Logging Residue Switch Grass Whole Tree Chips Miscanthus Fueling the 21 st st Century Page 8
Sustainable Feedstock Surplus Southern Yellow Pine Surplus + Residuals Bone dry tons per day (BDT / day) 4.2Bn gallons/year 480,000 159,000 100,000 Residuals 100,000 159,000 BDT / day (x) 72 gal / BDT (x) 365 days / yr Merchant Timber 59,000 380,000 321,000 Growth Harvest Surplus Supply Source: 2005 to 2008 USDA Forest Service data Potential Production Fueling the 21 st st Century Page 9
Southeast US Potential to Fuel 1/3 of US Cars Biomass in the Southeast is sufficient to meet 2022 RFS renewable fuel mandate using KiOR technology The Southeast can fuel over 1/3 of the cars in the US with biomass on a sustainable basis and with 80% less greenhouse gas emissions compared to conventional fossil fuels CELLULOSIC FUELS ARE ON THE ROAD TODAY Number of Cars Biomass Can Fuel in US (in millions) Biomass Type Region Southeast US Entire US Agricultural Residuals 24 200 Energy Crops 68 200 Forest Residue 11 25 Total 103 425 Data from EPA RFS Regulatory Impact Analysis Page 10
Pine is a Stable Source of Feedstock Feedstock Cost Dollars per 5.8 MMBTU (Barrel of Oil Equivalent) Soy Oil Sugar Corn Crude Oil $21 $23 Pine 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sources: Timber Mart-South, EIA, USDA, International Monetary Fund, PNNL Hydrogen Resource Center, KiOR analysis Fueling the 21 st st Century Page 11
KiOR Fuels - Not Biodiesel, Not Ethanol Virtually Identical to Fossil Fuels KiOR fuels produce same energy as fossil fuels Compatible in existing engines, cars & trucks $2 trillion Fuels Market Compatible with Fuel Distribution & Market Existing Infrastructure Distribution KiOR has no blendwall limits KiOR drops into today s infrastructure Market Acceptance = + Access to Market First fuel 100% sold before construction Readily accepted by conventional fuels market: Major fleet users Refiners Page 12
KiOR Columbus is Producing Real Fuels Today KiOR brought world s first commercial-scale cellulosic fuels on line in Columbus, MS Cellulosic biofuels from non-food sources are real Columbus has a capacity of 13 million GPY, enough to fuel over 25,000 cars These fuels drop-in and can be blended seamlessly into the U.S. fuels infrastructure EPA Part 79 Registration for gasoline and diesel blends at up to 25% INVESTMENT IN PLACE & PRODUCING TODAY Annual volumes will be increased through R&D and process engineering efficiencies Page 13
KiOR Facilities Spur Local Economic Growth KiOR locates plants in rural areas with sustainable biomass resources All feedstocks are non-food crops and sustainably harvested KiOR CAN REVITALIZE RURAL AMERICA Focus is on communities affected by plant closings that need jobs and investment Each KiOR facility is an economic engine o $350 million local investment o $200 million annual revenue o $90 million annual local procurement o Millions in increased local tax revenue o 500 construction jobs o 100 plant jobs KiOR puts people back to work through retraining and education Page 14
Traditional Summary: Gasoline KiOR is a and Unique Diesel Renewable Fuels Company Biomass to Bio-crude Bio-crude to Fuel Biomass/ Woodchips KiOR BFCC Process Hydrocarbon, infrastructure compatible fuel Non-food, sustainable feedstock Greenhouse gas emissions reduced up to 80% KiOR Upgrading Process Today s Gas and Diesel Promotes energy independence Contributes to RFS2 Cellulosic targets Stimulates local economies Page 15
KiOR Offers a Win-Win Fuels Solution Rural Jobs Sustainable Processes Environmentally Friendly Energy Independence Page 16