Brassica carinata Development Committee Markets and Utilization Value Chain

Brassica carinata Development Committee Markets and Utilization Value Chain

Brassica carinata: an Industrial Oilseed Agrisoma is commercializing Brassica carinata under the brand name Resonance to meet the growing global demand for Scalable, Sustainable and Economic non-food oil $ $ We are providing one of the solutions for the global demand for non-food oil

Why Oilseeds? Transportation Energy Demand United States Total per annum Liquid Fuel Consumption Biofuel Alternatives 140 B gallons 40 B gallons 16 B gallons Ethanol Biodiesel, Green Diesel & Biojet >200 B gallons >3 B gallons Non-Food Green Diesel and Biojet 3

Why Biojet? Global GHG Reduction Goals for Aviation: Carbon neutral growth from 2020 50% emissions reduction by 2050 Global Airline Agreements: Industry-wide sign on to goals IATA, CAAFI, ICAO driving efforts Proactive Efforts to Develop Global Value Chains Airlines, OEMS, agencies all involved 4

A United Industry: 50% GHG Reduction by 2050 Biojet is a Primary Pillar in this Strategy 5

How Do We Get From Here To There? There Here Industrial oilseeds leverage the existing agricultural infrastructure to achieve scale and suitable economics for aviation within a secure and stable low cost chain At present, no other potential feedstock can rely on this infrastructure to achieve scale and economics needed for financial viability 6

Resonance Grain Processed into High Value Products for Multiple Markets Biodiesel Oil Meal Beef Biojet Dairy Military Fuels Swine Lubricants Plastics Aquaculture

Benefits of Carinata Feed Stock Produces higher yields of fatty acids Glycerin is a smaller fraction of the oil High concentration of Erucic acid (22:1) Unsaturation facilitates cyclization Good yield of aromatics & cycloparaffins Good low-temperature properties Higher yields of jet fuel Higher probability of optimal cracking Two jet fuel molecules (C8-C14) from one C22 acid C18 oils can only produce one jet molecule 8

Biodiesel feedstock, high protein meal High quality biodiesel, equal to or better than canola Low cloud point, oxidative stability Non-food oil, low ILUC feedstock High protein, low fibre meal 20% more crude protein than canola meal, approaching soybean levels

Resonance Energy Feedstock: Building a Feedstock Supply Chain Risk Management Tools Seed Production Processing Fuel Commercial Contracting Seed Treatment Farm Credit Rail Production Flights Retail On Farm Storage Meal Sales Oil Delivery Seed Certification Crop Insurance Crop Protection Harvest Regulatory Shipping International Shipping Fuel Testing Demo & Emission Testing Value Chains are geographic - driven by cost of production, proximity to processing and end use markets with competitive advantage 10

CDN EXAMPLE: COMMERCIAL LINKS IN THE SUPPLY CHAIN Partnerships and Alliances Seed Farming Elevation Transport Processing Oil & Meal Fuel Manufacturing The Seed: High Commercial Margin Seed Production Business Grower Partnership Toll processing Farmer Contracting, Elevation, Processing Growing List of Manufacturers

Competitive Advantage Determining cost of production base at farm level Yield, oil%, competitive cropping options, systems fit, risk management Oil customers Biodiesel, low cold filter plugging point (CFPP) feedstock (canola) Biojet, higher conversion rate (ARA technology), non-food status, RSB Meal customers Protein content, lower ADF/NDF. Beef cattle markets today Regulatory needs high oil meal (press crush), dairy, monogastrics, aquaculture (linked to low gluc development) Processing Leveraging canola hexane extraction facilities (incl. export to EU) Other extraction opportunities / efficiency losses Cottonseed mills, sunflowers (soybeans) Press mills, high oil meal approval required. 12

Discussion - Value Chain Status How would you describe your geography Production system / rotation Cost of production, returns/profit required per acre Target market and competitive oils (biodiesel, biojet) Processing (crushing) pathway short, medium, long-term Meal markets and regulatory priorities Three types of geographies in US development plan Canola proximity (northern border states) Spring production, sunflower areas (South Dakota) Winter production, Southeast coastal plain, central Florida What are your critical success factors Opportunities / partners Risks 13

Western Canada example Highest value (canola parity), replacing canola in biodiesel Processing toll (ST), integrated biodiesel / export (MT), dedicated crush (LT) Meal beef approval (ST), dairy expansion (MT), low glucosinolate (LT) Critical success factors Meal value realization (ST), off-setting inefficiencies Crush scale Lethbridge, Velva, Lloyd, Ft. Sask, Camrose, Clavet. Continue to engage in biojet and artic diesel demand generation as longterm competitive advantages Opportunities Potential over capacity of canola hexane extraction crush Paterson relationships ADM integrated crush/refining Seed export into Europe at parity to canola (RSB certification) Key risk canola pricing itself out of the biodiesel market, need to focus on systems / rotation benefits and meal value. 14

The Value Chain is More Than Fuel.. Resonance Energy Feedstock Growing Fuel on the Farm 15