Pollution Prevention

KiOR is a next-generation biofuels company which produces a renewable crude oil substitute. KiOR’s process creates this substitute from biomass by enhanci ng nature’s method of making oil. This substitute can be refined and then blended into a variety of transportation fuels compatible with our country’s existing fuel infrastructu re. This approach creates significant societal and environmental benefits. Among current alternative fuels, KiOR’s products ar e near-term solutions to reducing US dependence on foreign oil, significantly reducing greenhouse gas emissions and creating high-quality jobs and economic benefit for rural America, where production facilities will be built.

KiOR’s products can be blended into gasoline, diesel , and other transportation f uels. The current target rate for blending is 5-10%. KiOR blends can be “dropped-in” to the current fuel production and distribution infrastructure and used in vehicles on the road today, potentially avoiding billions of dollars of new infrastructure costs and years of adopti on hurdles faced by other renewable fuels.

KiOR’s high-quality fuels substitute is less corr osive and of lower oxygen content than other bio-based oils. Blends of KiOR products are comparable to th eir fossil-fuel based counterpa rts in the existing fuel supply, offering a more environmentally-friendl y fuel option to consumers at the pump.

KiOR is in discussion with the DOE and EPA Air Of fice regarding the benefits of these fuels and their contribution to the Renewable Fuel Standard (RFS2) program.

Compared to conventional fossil-f uel-derived hydrocarbons and even many biomass-derived fuels, KiOR’s process:

 Delivers over 80% reduction in greenhouse gas emissions

 Maintains engineering controls designed to ensure production facilities are minor sources per air quality regulations.

 Distributes land-based biomass facilities to re duce risk and uncertainty of environmental events. This eliminates risks and uncertainties of

- Traditional oil feedstock deep drilling

- Traditional oil feedstock pipelines

 Utilizes surplus biomass feedstock, improves fo rest health, and reduces fire risk and uncertainty

 Derives biomass from sources which do not compete with foodstuffs

 Minimizes difficult-to-define risks and uncertain ties of multiple new technologies and unscaled technology improvements

 Lowers consumer risk and uncertainty associ ated with unknown issues of non-fungible fuels

 Minimizes risk and uncertainty of finding, maintaining, and transporting foreign feedstock sources

Reduced GHG Emissions

KiOR hydrotreated, re newable naphtha, distilla te, residual oil, an d kerosene (“jet fuel s”) blendstocks are indistinguishable in performance from their fossil-fuel counterparts.

At KiOR’s current state of technol ogy, transportation fuel blend-stocks can be pr oduced with significant greenhouse gas emission (GHG) reductions relative to other biofuels and conventional crude oil refining.The figure below shows the GHG emissions from Ki OR’s production process (farming and feedstock transport, fuel production, and fuel transport) are significantly lower than GHG emissions from corn ethanol, sugarcane ethanol, or soybean biodiesel production processes.

KiOR naphtha and distillate blendstocks reduce GH G emissions relative to conventional transportation fuels.

KiOR can produce gasoline with a GHG emission redu ction of 84% relative to conventional gasoline (emissions from feedstock, fuel transport, process, and vehicle em issions) and diesel with a GHG emission reduction of 85% relative to conventional diesel, as can be seen in Table 1 and Figure 1 below.

Table 1 Estimated direct GHG emissions for KiOR gasoline and diesel KiOR Gasoline and Diesel GHGs (kgCO 2 e/MMBTU) Gasoline Diesel
Feedstock 5.3 5.3 Fuel Transport 0.7 0.7 KiOR Process 8.0 8.0 Vehicle Emissions 1.6 0.6 Total Direct Emissions 15.7 14.7 2005 Baseline 98.0 97.0 KiOR GHG Reduction, % 84% 85%Figure 1 GHG emission reductions for KiOR gasoline and diesel
In addition to these use benefits the following should be considered.



###  Land use, transportation, and infrastructure: KiOR’s production facilities will be built on vacant land in industrial areas to prevent the u se of prime farmland or wildlife habitats. The facility sites will be selected in industrial areas to leverage the use of existing infrastructure for power, water, and transportation. Significant im pacts from traffic congestion are not expected because the counties selected for KiOR’s facilities are primarily rural.

 Geology and soils: The possible environmental impacts to geology and soils are erosion from storm water runoff and contamination from a proces s-related spill or leak. KiOR has developed a Storm Water Pollution Prevention Plan (SWPPP) and a Spill Prevention, Control, and Countermeasure (SPCC) plan for each facility site . Storm water runoff will be collected and sent to a storm water retention pond shared with nei ghboring facilities or one dedicated to the facility. KiOR’s facilities will be bermed to contain any process related spills or leaks. Collected contaminated water will be treated at appropriate wastewater treatment facilities.

 Water resources: The potential environmental impacts to water resources are sediment entering a waterbody from increased erosion and contamin ation from a process\-related spill or leak. KiOR will implement a site specific SWPPP and SPCC plan for each facility constructed to mitigate any risk of water resource contamination.

###  Biological resources: Some mixed forest habitat may be d estroyed during the construction of the facilities. KiOR has carefully select ed sites in areas where any for est habitat destroyed would be an exceedingly small portion of the total forest ha bitat in that area. Site inspections have not shown any evidence of the presence of any threat ened or endangered species. The operation of KiOR sites will increase the demand for wood produc ts in their immediate vicinities, but the facilities will only be operated us ing biomass from plantation trees or waste sources, eliminating the risk of significant impacts on local vegetation.

 Air quality and noise: KiOR sites would not cause or contribute to an exceedance of the NAAQS. VOC’s generated by the operation of th e plants will be controlled by venting the exhaust gases from within the process through a waste heat boiler that would remove approximately 99% of the VOCs. Any particul ate matter emissions will be controlled by precipitation . Particulate matte r emissions generated by the hammer mills in the feedstock processing area would be controlled by fabric filters . Odor and noise will not be a factor because facilities will not be located near residences. It is important to note that KiOR’s process offers an 84% reduction in GHG emissions compared to conventional pathways.

 Socioeconomics: The construction and operation of KiOR facilities will have a positive socioeconomic impact. Jobs will be created in rural areas with unemployment rates higher than the average for their state.

 Human health and safety: KiOR will follow all OSHA and all ot her applicable federal and state regulations during the constructi on and operation of KiOR facilities to maximize the safety of all workers and the general public. Workers will adhere to the safety measures stipulated in KiOR’s Health, Safety, and Environmental Plan whic h include, but are not limited to, the use of appropriate personal protective equipment, employee and supervisor training, and accident investigation and reporting procedures.

 Waste management: KiOR facilities will generate non-hazar dous waste mainly in the form of ash and spent catalyst. KiOR will recycle non-h azardous waste to the extent possible, through such measures as providing ash to local farms and landowners. Hazardous wa ste generated by the facilities will consist of broken, contaminated glassware from laboratories which cannot be reused, contaminated personal protective equipmen t, and contaminated maintenance items such as oil rags. These items are expected to exist onl y in limited quantities. The hazardous wastes will be transported off-site by a licensed hazardous waste transportation company to a licensed hazardous waste treatment, storage, and disposal facility.