# Advanced Biofuel Market Report 2012

Meeting U.S. Fuel Standards

Authors Mary Solecki, E2
Anisa Dougherty, Goldman School of Public Policy
Bob Epstein, E2

111 Sutter Street, 20th Floor San Francisco, California 94014 www.e2.org

# Table of Contents

I. Introduction 3 

### Content & Process 4 

## II. Advanced Biofuel Industry Overview 4 

### Measuring Production Capacity: Methodology 5 

### Active Companies 5 

### 2012 Fuel Capacity 5 

### 2015 Fuel Capacity 6 

### Meeting LCFS and RFS2 Goals 7 

### Biofuel Value Chain 8


### Aviation 9 

### New Fuel Pathways 9 

### Production Costs 9


## III. International Market 10 

## IV. Financing 10 

### Private Equity Investment 10 

### Initial Public Offerings 11 

### Federal and Public Funding 11


## V. Jobs 12 

### Methodology 12 

### Comparing E2 Estimates to Literature Review 12 

## VI. Market Factors for Industry Growth 13 

### RFS2 13 

### Military 14 

### LCFS 15 

### National LCFS 16 

### Off-take Agreements 16 

### State Policies and Tax Incentives 16 

## VII. Conclusions 18 

## Acknowledgements 19 

## Appendix A: Advanced Biodiesel Facilities 20 

## Appendix B: Advanced Biofuel Facilities by 2015 (Low-End) 23 

## Appendix C: Advanced Biofuel Companies & Projections (High-End) 27 

## Appendix D: List of Federal & Public Funding 33 

## Appendix E: Biofuel Value Chain 35 

## Appendix F: Job Data (2012-2015) 39 

## Appendix G: International Companies 40 

## Appendix H: E2 Methodology to develop lists and production data 42 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 2 Environmental Entrepreneurs (E2) is a non-partisan national community of 850 business people who believe in protecting the environment while building economic prosperity. Our mission is to provide a platform for an independent business voice to promote envi

ronmentally sustainable economic growth. E2 represents entrepreneurs, investors and professionals from every sector of the economy. We work at both the state and national levels through bipartisan efforts.

# I. Introduction 

# A dvanced biofuels are renewable, liquid transportation fuels that can replace traditional gasoline and diesel with significantly lower greenhouse gas (GHG) emissions. With more certainty of the policies discussed in this report, these fuels could be produced at scale and compete on a cost basis.

In the year since E2’s 2011 Advanced Biofuel Market Re

port 1 

### the industry made significant advances in the pro

duction of fuels. U.S. and Canadian production capacity expanded from 437 million gallons in 2011 to over 685 million gallons in 2012. We identified 165 companies ac

tive in the production of advanced biofuels along with 82 companies involved in the supply chain by providing necessary feedstock, technology, and infrastructure.

Our purpose in producing these annual reports is to compare industry production growth to the future de

mand for low carbon fuels created by U.S. policies like the Renewable Fuel Standard (RFS2), California’s Low Box 1: Biofuel Definitions

There are a variety of terms used to classify biofuels. For the purposes of this report E2 has grouped biofuels into the follow

ing categories:

Conventional Biofuels . Also called first generation biofuels, encompass starch based ethanol as well as oil crop based biodiesel. Conventional biofuels often reduce carbon intensity (CI) by 5-30% from a gasoline baseline. Corn, wheat, sugar, soybean and palm oil are commonly used as feedstock and production is at commercial scale. Feedstocks used for conven

tional biofuels often displace agricultural production and have a higher CI than more advanced biofuels. Conventional biofuels are not addressed in this report.

Advanced Biofuels . Also called second and third generation biofuels, encompass biofuels produced from non-corn starch, sugar, or lignocellulosic biomass, which reduces CI by 50% or more from a gasoline baseline. This includes cellulosic ethanol, non-virgin oil based biodiesel and bio-synthetic gas. Conversion technologies for advanced biofuels have greater feedstock flexi

bility and product neutrality than conventional processes. Woody biomass, Brazilian sugar cane and algae are commonly used
feedstock. 

### Carbon Fuel Standard (LCFS), federal funding programs, tax incentives, and more. While this report looks at many policies and programs, E2 has special interest in the LCFS for its ability to spur innovation, fuel neutrality, and its sustainability standards that minimize conflicts with food production. The LCFS requires that, by 2020, blenders, refineries, importers and distributors of trans

portation fuels reduce the carbon intensity (CI) of the fu

els they sell by ten percent below a 2010 gasoline and diesel baseline.

The advanced biofuels industry has sufficient, proven technology to meet the LCFS requirements, and with sufficient market certainty, can meet the overall RFS2 targets. The risks for delivering fuel are regulatory cer

tainty and production capacity. We use two methods to examine future production capacity. Method one docu

ments the status of production facilities within the U.S. and Canada. Method two collects forecasts from active companies delivered through publicly available sources. Wherever possible, we verify the forecast via direct con

tact with the company. If we cannot verify the forecast or if we have reason to doubt the accuracy of the forecast, then we assume no production will occur. Method one shows a low-end total domestic production capacity of1.6 billion gallons by 2015. Method two shows a highend capacity of about 2.6 billion gallons by 2015.

The barriers to meeting the LCFS and RFS2 goals con

tinue to be the ability to finance plants to reach commer

cial scale production and maintaining regulatory certainty for both standards. In the last year, there was a tempo

rary stay of implementation to the LCFS enforcement brought about by an ongoing lawsuit as well as increased E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 3 1 http://www.e2.org/jsp/controller?docName=BiofuelMktReport2011 

### Virent’s biogasoline facility in Madison, Wisconsin.
Photo credit Virent.

### political pressure on changing RFS2. Despite these chal

lenges, we are encouraged by industry progress in the last 12 months and conclude that the fuel standards are
achievable.



## Content & Process

This report expands upon E2’s initial Advanced Biofuel Market Report, published in August 2011. It is intended to give a broad overview of the status, potential and criti

cal challenges facing the advanced biofuel market today. The core of this report is North American production data for the 2012-2015 period, which we contrast with data collected for our initial report. This is followed by an overview of related industries, international markets, fi

nancial trends, and recent policy measures.

This report was developed with the help of a broad se

lection of experts in the biofuel industry, research institu

tions and government agencies. The production data was collected through an extensive survey of publicly available information as well as interviews with key mar

ket players. An initial draft of the Advanced Biofuel Mar

ket Report was circulated among participating industry experts for review prior to publication. 

# II. Advanced Biofuel Industry Overview

This report specifically looks at advanced biofuels in an effort to highlight their potential as a key component in the energy mix. As defined by the RFS2, advanced bio

fuels reduce carbon intensity (CI) by 50% or more from a gasoline baseline. E2’s research indicates that a fuel ca

pable of achieving the 50% threshold is usually capable of further reductions on the levels of 75% or greater.

As detailed in section six, key policies such as the RSF2 and LCFS have helped to move advanced biofuels from a demonstration into a commercialization phase, as shown in Figure 1 below. 2 

### A growing number of ad

vanced biofuel companies are being certified under die

sel’s standard, ASTM, which certifies fuels for blending 3 

### and approved for RFS2 renewable identification numbers (RIN), 4 

### allowing trading credits for reduction in CI value. As technical barriers decrease, the main challenges that remain are attracting capital and regulatory certainty.

Despite the potential as a viable alternative to traditional fuels, advanced biofuels faced significant challenges in 2012. Federal funding programs are under increased fis

cal pressure, the RFS2 and LCFS are being challenged and the Department of Defense’s clean energy initiatives are being called into question, as discussed in section six. The multitude of challenging factors cast an atmos

phere of doubt over the marketplace. However, a close inspection of production levels indicates that the ad

vanced biofuel market has grown despite these chal

lenges. While this growth is slower than we anticipated in 2011, the market is moving toward greater commercial production of many advanced biofuels. E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 4 2 Bloomberg New Energy Finance, Crossing the Valley of Death. June 2010. Web. https://www.bnef.com/WhitePapers/download/29

3 Commercial Aviation Alternative Fuels Initiative presentation, Advanced Biofuel Leadership Conference, Washington DC, 4 April 2012.

4 KiOR. "KiOR Receives Fuel Registration From EPA for Renewable Gasoline." Press release. 24 July 2012.

< http://www.kior.com/content/article.php?Atricle=22&s=2&s2=35&p=35&t=News-and-Events >. 

### KiOR’s Colum

bus, Mississippi facility. Photo credit KiOR.

Figure 1: Stages of technology development; adapted from Bloomberg New Energy Finance.

Advanced biofuels are crossing from Stage 3 to Stage 4, Diffusion and Commercialization.

## Measuring Production Capacity: Methodology
E2 developed two methods for measuring production capacity for 2012 and 2015.

Method One: Low-End Low-end estimates were based on facilities that have substantive evidence of construction through associated financing, site selection, feedstock procurement, and more. Facilities listed on E2’s low-end have a very high probability of success. Some companies have declined to give specific completion dates, but due to significant financial backing the facilities will likely be operational by
2015.

Method Two: High-End High-end estimates are based on publicly delivered pro

jections by the companies themselves and represent ca

pacity that could be achieved if regulatory certainty gave sufficient market certainty. Starting with company projec

tions, E2 used company funding status, demonstration of technology, partnerships and more to establish feasible numbers. When we could not sufficiently verify projec

tions, we conservatively assumed they would be zero.

In contrast to the EPA, which monitors actual production, E2 data solely reflects capacity. To find capacity we have counted pilot and demonstration facilities even though this fuel is not actively traded in the fuel mix, and thus not tracked by EPA. The distinction between capacity and production is relevant for facilities that come online mid-year. It is not possible for these facilities to reach full calendar year production capacity, and thus the EPA dis

counts production numbers

. 5 

## Active Companies
As noted in last year’s report, the companies active in this emerging industry continue to evolve. This year E2 identified 165 active advanced biofuel producers in the United States and Canada. This number includes com

panies pursuing renewable jet fuel, as well as companies that are not currently in production but have plans to be

gin production by 2015. Of these, there are 91 biodiesel companies already in commercial production and 74 companies working to produce other types of advanced biofuels. The breakdown of the companies is in Table 1.

Non-virgin oil based biodiesel achieves the 50% or greater CI reduction threshold, 6 

### and is the first advanced biofuel in commercial production. Feedstock sources primarily come from waste/recycled oil, grease, and tal

low. Of the hundreds of facilities across the UnitedStates, E2 has only counted facilities which can use nonvirgin oil and have registered with the RFS2, as listed in Appendix A. The additional filter for RFS2 registered fa

cilities makes the number of E2-tracked biodiesel com

panies appear artificially smaller than last year.

For all other fuel types, there are 12 fewer companies listed this year. Most of these reductions are mergers & acquisitions, which is likely the start of normal market consolidation that will continue for the next few years. As some companies and technologies begin to integrate and scale, the technology winners are becoming more obvious.



## 2012 Fuel Capacity In 2012, the production capacity of advanced biofuels will reach 685-689 million gallons, as shown in Table 1. These are facilities that already exist, or are under con

struction and scheduled for operation by end of year. The marginal difference between the low and high-end pro

duction numbers is due to pilot facilities, which were not
included in the low-end scenario.

For 2011 E2 reported 437 million gallons of production capability, which can most directly be compared with this year’s high-end data. The year over year increase is pri

marily due to advanced biodiesel, which has increased E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 5 5 United States Environmental Protection Agency. “Regulation of Fuels and Fuel Additives: 2012 Renewable Fuel Standards.” Vol 77, No 5. 9 August 2012.

< http://www.gpo.gov/fdsys/pkg/FR-2012-01-09/pdf/2011-33451.pdf >.

6 California Air Resources Board. Carbon Intensity Approved Pathways. Table. Web. < http://www.arb.ca.gov/fuels/lcfs/121409lcfs_lutables.pdf >. 

### Gevo’s Luverne, Minnesota facility.
Photo credit Ken Drobish of Gevo.

### production by about 200 million gallons to meet RFS2 targets. 7 

### An additional 40 million gallons is attributed to several facilities coming online, including Gevo, INEOs, KiOR, and many demonstration facilities.



## 2015 Fuel Capacity
Based on our two methodologies, the advanced biofuel industry will have between 1.6 and 2.6 billion gallons of production capacity in the U.S. by 2015. This is summa

rized in Table 1, and detailed in Appendices B and C.

Method One: Low-End To meet our low-end estimate of 1.6 billion gallons, we expect a minimum of 27 new or retrofitted commercial facilities to come online by 2015, in addition to existing biodiesel facilities. The new facilities will produce about 700 million gallons of fuel, of which cellulosic ethanol will comprise the lion’s share. As companies have cited time and again that the RFS2 is the industry’s market maker, the cellulosic biofuel requirement for RFS2 can be cred

ited with these facilities’ creation. Table 2 shows the breakdown of the 27 new facilities by fuel type, and Table 3 shows the year over year projections of these facilities. E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 6 7 Kruse, John. “Biodiesel Production Prospects for the Next Decade.” IHS Global Insight Report. Report provided via email to Mary Solecki. Available via web
at < http://www.ihs.com/products/cera/multi-client-studies/unconventional-frontier.aspx >. 

### Box 2: Types of Advanced Biofuels

Advanced Diesel. Also called renewable diesel, a hydrogenation-derived renewable diesel (HDRD). Made by hydroprocessing of vegetable oils, algal oils, or animal fats. As a liquid hydrocarbon, has very similar chemical properties to petroleum diesel and may be blended at very high ratios.

Advanced Gasoline. Advanced gasoline may be refined instead of advanced diesel from a biocrude. A liquid hy

drocarbon that has similar chemical properties to petro

leum gasoline.

Biodiesel. A fatty acid mono-alkyl ester derived from vegetable oils, animal fats or other renewable oils. Biodie

sel is commercially available.

Biocrude. Biocrude is oil processed from biomass, and may be refined into advanced diesel, jet fuel or advanced gasoline.

Butanol. Similar properties to gasoline allow butanol blending in any proportion. Higher energy content and lower octane content than ethanol, and has been demon

strated to work, without modifications, in gasoline vehi

cles.

Ethanol. This report covers ethanol from cellulosic mate

rial, as this achieves a 50% reduction in carbon intensity. Most commonly produced from biomass through hydroly

sis, fermentation, or gasification to a syngas which can be
modified into ethanol.

Jet Fuel. A liquid hydrocarbon suitable for use in air

planes, refined from a biocrude and renewable feed

stocks.

Table 2: New commercial facilities coming online by
2015. This does not include the advanced biodiesel plants already in existence. Table 1: Low-end and high-end production estimates for 2012 and 2015 by fuel type. “Fuel flexible” denotes companies that have not yet desig

nated production type and may produce advanced gasoline or diesel.

### The percentage of growth predictably decreases over time in the low-end projections. We can be more certain about projects with more immediate deadlines, but facili

ties with 2015 schedules understandably may have addi

tional details to sort, and therefore are typically under the high-end projections.

Method Two: High-End The high-end production projections listed by advanced biofuel companies, for which E2 sees reasonable feasibil

ity of occurring, totals 2.6 billion gallons of capacity by
2015.

This method can be most directly compared to last year’s report, which totaled 3.1 billion gallons. As mentioned previously, this method could also be described as the number that could be achieved if the correct policy sig

nals were in place. The reduction of 500 million gallons between last year’s and this year’s reports is attributable to the uncertainty cast over the market by policy instabil

ity, and matches what has been reported in the press about companies struggling to access financing in order to scale up. Policy instability pushes biorefinery con

struction schedules further out, makes access to capital more difficult, and directly affects the bottom line with changing RIN values. Section six of this report will further discuss these policies, the implications, and the signifi

cant role market certainty has in the scale up of ad

vanced biofuels. Biodiesel numbers are the same for both methods. As the advanced biodiesel market is already available in commercial quantities, future availability is significantly more predictable. E2 used the data National Biodiesel Board provided to the EPA from IHS Global, which looked at how much biodiesel may be produced to meet RFS2 targets without raising market prices. Using the proposed RFS2 targets, E2 subtracted virgin oil biodiesel production and advanced renewable diesel to find 877 million gallons of advanced biodiesel by 2015.



## Meeting LCFS and RFS2 Goals

LCFS. California uses about 18 billion gallons of liquid transportation fuel per year. Assuming demand remains constant, 600 million gallons are needed in California to meet the LCFS in 2015 exclusively through advanced biofuels - if fuel achieves a 75% reduction (which most of these fuels likely will, according to E2’s analysis). Since the 1.6 to 2.6 billion gallons are well above what is needed to meet the LCFS, credit prices only need to be high enough to attract these fuels to California’s market.

RFS2. For the RFS2, 5.5 billion gallons of advanced fuels are needed in 2015, of which biodiesel (which already has the capacity) will likely fill 1.9 billion. 8 

### This leaves 3.6 billion gallons of cellulosic and “other” advanced fuel. E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 7 8 Kruse, John. “Biodiesel Production Prospects for the Next Decade.” IHS Global Insight Report. Report provided via email to Mary Solecki. Available via web
at < http://www.ihs.com/products/cera/multi-client-studies/unconventional-frontier.aspx >. 

### BP Biofuels has been proving its advanced biofuels technology at its large-scale demonstration facility at Jennings, Louisiana for the past two years. Photo credit BP Biofuels. Table 3: Low-end production capacity estimates show that we are phasing out of the demonstration phase and moving into the commercial production phase. INEOs Bio’s Vero Beach, Florida facility, August
2012. Photo credit INEOs Bio.

### These numbers indicate a continued shortage for the cellulosic sub-target, and therefore more sub-target ad

justment to meet overall goals. For example, EPA maysoon count aviation fuels toward an increased biomassbased diesel mandate. If aviation and renewable diesel fuels bring up biomass-based diesel to 2.5 billion, then cellulosic could fall to 1.1 billion (in line with E2 high-end numbers), and “other“ advanced could increase to 1.9 billion. As described in following sections, this 1.9 billion could be met with new fuel pathways in addition to the existing fuels for this category. 1.1 billion gallons of cellu

losic capacity is an optimistic number based on com

pany projections, but EPA retains the authority to lower this target as needed. U.S. Energy Information Admin

istration analysis of the RFS2 targets shows continued shortages through 2022, but sufficient supply by 2035. 9 

### If development continues at a slow pace, still other fuel pathways and technologies may come online to meet the overall advanced biofuel goals.



## Biofuel Value Chain

A well developed value chain is essential to support ex

panding biofuel markets. Figure 2 illustrates the multiple steps involved in the production and distribution of ad

vanced biofuels.

While an in depth review of the value chain is beyond the scope of this report, E2 aims to demonstrate that related industries are growing in tandem with production. Ap

pendix E provides a brief list of key companies, showing a robust value chain that can support a growing biofuel
market. Although multiple industries are involved in the value chain, the most critical elements are:

Feedstock . Feedstock availability could constrain future production, making feedstock providers an essential link in the value chain. This industry consists of waste man

agement companies, algae producers, biomass owners and agricultural commodity traders. Weyerhaeuser and PowerStock are examples of biomass owners. Agricul

tural commodity traders, such as Bunge, are also in

creasingly active in advanced biofuels.

Technology & Process Development. This encom

passes plant genomics companies as well as those in

volved in developing conversion and process technolo

gies. Technology from enzyme developers, such as No

vozymes and Dupont, as well as plant genomic compa

nies, such as Mendel and Syngenta, are increasingly util

ized at commercial scale facilities. E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 8 9 Energy Information Administration. Annual Energy Outlook 2012. Page 97. Accessed 19 July at: http://www.eia.gov/forecasts/aeo/pdf/0383(2012).pdf 

### Figure 2: Biofuel Value Chai n There are many components to advanced biofuel production; this report focuses on compa

nies that convert processed
biomass into fuels. ZeaChem’s Boardman, Oregon facility. Photo credit ZeaChem, Inc.

### Engineering & Equipment. This link in the value chain includes companies that provide the engineering plat

forms and equipment necessary to operate a biofuel


## p lant. E2 has identified several key providers, such as Biodico and Chemtex that are working with existing fa

cilities.

Distribution . Energy companies, such as oil producers, refiners and distributors will need to provide the infra

structure necessary to distribute biofuels. Leading energy companies, such as Shell, Chevron, Exxon and BP are all investing in advanced biofuels. Other companies such as Propel are focusing on renewable fuel terminals.



## Aviation

Jet fuels are not usually traded under the RFS2 or LCFS. EPA is finalizing its rule to consider aviation fuels as biomass-based diesel for trading under the RFS2 if pro

duced from fats, oils or greases. The development of these fuels is further proof of market capabilities and fungibility, and the capital access provided through major airlines and other groups will bolster facility construction.

Boeing, and now the aviation industry, has set a target of 1% biocontent of worldwide aviation fuels by 2015, which equates to roughly 600 MG globally. Given facility projections, the airline industry feels confident that this target will be reached. 10 

### Since a facility can co-produce renewable jet fuel and other renewable hydrocarbons, this provides greater evidence for the future market ca

pabilities of advanced biofuels.



## New Fuel Pathways

EPA and CARB are both currently reviewing new fuel pathways to generate credits under their respective trad

ing mechanisms. Approval of these pathways will provide greater amounts of fuels that may be used to meet the targets of the RFS2 and LCFS. For example, the EPA is currently reviewing ethanol from grain sorghum. If ap

proved, this could add several hundred million gallons of fuel for the “other” advanced biofuel mandate, given the number of applications EPA has received. 11



## Production Costs

Production costs are sensitive to a variety of factors, such as feedstock, process, capital costs and local con

ditions that fluctuate by year. Moreover, technological advances are being made on a yearly basis making costs difficult to extrapolate. For these reasons, advanced bio

fuel production costs have typically only been an

nounced in Initial Public Offerings, or estimated by fed

E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 9 10 Boeing Commercial Fuels Division. Interview by Mary Solecki. 31 July 2012.

11 Burkholder, Dallas. EPA. Interview with Mary Solecki. 25 July 2012. 

### Table 4: Estimated production costs, as reported by biofuel producers range between $0.75 and $5.21 per gallon for
advanced biofuels.

Sources: NAS (2011), Renewable Fuel Standard: Poten

tial Economic and Environmental Effects of US Biofuel Policy. The National Academies Press, Washington, DC.

DOE, Office of the Biomass Program (OBP), Multi-Year Program Plan, April 2011. OBP, U.S. Department of Energy, Washington, DC, 2011.

U.S. EPA RFS2 Regulatory Impact Assessment,
2010

### eral research. Although data points are limited, Table 4 provides a snapshot of production costs as reported by active companies and by recent studies.



# III. International Market

More than 50 developed and developing countries have adopted blending targets, requirements and/or biofuel quotas 12 

### which has helped to rapidly expand global de

mand for biofuels. Recent market forecasts suggest that the global market for all biofuels could increase from $82.7 billion in 2011 to $185.3 billion by 2021. 13 

### Of this, cellulosic ethanol market has the potential to reach 40 billion gallons per year by 2022, worth US$80 billion. 14



### While the vast majority of advanced biofuel facilities re

side in North America and the European Union, an evergrowing number of advanced biofuel plants are cropping up outside of these regions. Brazil, an established leader in conventional biofuels, is emerging as an industry leader in advanced biofuels as well and is working to in

crease its capacity. Other countries, such as India and China are also working to expand their nascent biofuel industry in hopes of addressing climate change and en

ergy security issues. As these countries rapidly expand, the use of sustainability criteria to source biofuel produc

tion is critical to protect food, water, and biodiversity.

E2 has tracked companies with facilities of significant interest to the domestic market, given the technologies used, partnerships, or the companies’ announced inten

tions to expand into the U.S. in coming years. These fa

cilities are listed in Appendix G. While the fuel produced in these facilities may or may not be imported into the United States, these companies could provide increased access to capital through partnerships or strategic in

vestments, in addition to constructing domestic facilities of their own.


# IV. Financing

Pike Research calculates that the U.S. market for biofu

els will be about $60 billion in 2021. 15 

### To seize this mar

ket opportunity, venture capitalists and strategic inves

tors continue to invest in advanced biofuels.

Since 2007, Cleantech Group has tracked more than $3.4 billion in domestic low carbon fuel investments. Since E2’s 2011 report, an additional $651 million has been invested. Some historic numbers may look different than the 2011 report, which reflects the release of infor

mation ex post facto, and the decision to include invest

ments into companies which may no longer be active.



## Private Equity Investment Figure 3 shows venture capital investments into biofuels by quarter. In Appendices B and C, private investments are broken down by company, with debt financing infor

mation noted when available. E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 10 12 IEA, Biofuels Roadmap, 2011 Available at: http://www.iea.org/papers/2011/biofuels_roadmap.pdf

13 Pike Research, “Biofuel Markets and Technologies” December 2011

14 Clean Edge. “Clean Energy Trends 2012.” 11th ed. July 2012 < http://http://www.cleanedge.com/reports/clean-energy-trends-2012 >.

15 Pike Research, “Biofuel Markets and Technologies” December 2011 

### Box 3: Ensuring Sustainability

Biofuels have the potential to address many problems related to fossil fuels, including cutting carbon pollution, so long as they are produced sustainably by incorporating critical environmental and social safeguards. Sustainability criteria seek to reduce risks to food security, wildlife, land, water and air resources, thereby help

ing advanced biofuels achieve scales by setting parameters that can realistically support growth with minimal consequences and controversy. Third party tools exist to help biofuel producers as

sess and validate their sustainability. Credible certification systems such as the Roundtable on Sustainable Biofuel can help produc

ers verify that their product comes from a supply chain that deliv

ers on its environmental promise and avoids significant unintended

consequences. A rendering of Joule’s Hobbs, New Mexico facility; cur

rently under construction. Picture credit Joule Unlimited.

### Interviews with venture capitalists confirm that corporate investors are more active, as companies are seeking large amounts of capital to begin scaling. Contrasting industry financing figures of $5-10/gallon of installed ca

pacity against Table 3 on page 7 shows nearly $7.3 bil

lion in capital needs (using $10/gallon). Given the policy uncertainty biofuels are facing, many small venture capi

talists have re-coiled. Many in biofuels are looking to the multi-national oil companies, in hopes that increased strategic investments made by these companies will pro

vide the biofuel industry with the capital access it needs.

Major oil companies have shown interest in biocrude and modification options to existing biorefineries, as these options leverage existing refinery equipment with low

ered capital expenditures and operating expenditures.



## Initial Public Offerings Last year E2 reported on the four major IPOs to date (Amyris, KiOR, Gevo, Solazyme). Since that time, both REG and Ceres have successfully completed IPOs, at $72 million and $65 million respectively. An additional seven IPOs within the biofuel value chain currently wait for approval. 16 

### Public offerings are one way to access capital needed for a first commercial facility. However, companies may lose significant value if going public before stabilizing profits and allowing their technology to be evaluated in dollar terms. For this reason, Enerkem and Coskata have de

layed their IPOs and chosen to pursue financing through
other means.



## Federal and Public Funding Government agencies have been relatively quiet about the investments made into advanced biofuels. These in

vestments, from agencies like the Departments of Energy (DOE) and Agriculture (USDA), are already realizing their potential through increased rural farming jobs, biofuel production jobs, and domestic sources of clean energy. Federal and state grants and loan guarantees have pro

vided the pivotal capital biofuel companies need to build first-of-kind facilities.

Cleantech Group has compiled the list of federal loans and grants contained in Appendix D, which totals $1.77 billion since 2008. As noted on the list of facilities, these can frequently be directly traced to an outcome of facility construction. Of the $1.77 billion, roughly $730 million is E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 11 16 Biofuels Digest, 13 July 2012. Available at: http://www.biofuelsdigest.com/bdigest/2012/07/13/are-ipos-good-for-early-stage-companies-and-advanced-biofuels/ 

### Figure 3 : Venture capital
investments in advanced biofuels by quarter; de

tailed in Appendices B and C. Blue bar repre

sents millions invested, while green line shows the
number of deals within that quarter.

Data provided by Clean

tech Group

.

### from the DOE, and $967 million from USDA. The remain

ing $73 million comes from sources like the California Energy Commission, Federal Aviation Agency, and other agencies. These programs provide advanced biofuels with the development stage assistance needed to later compete with petroleum counterparts on a cost basis.



# V. Jobs

While E2 expects the advanced biofuel industry to have a substantial economic impact at national and local levels these impacts are difficult to predict. A very limited number of economic impact assessments have been conducted on the advanced biofuel industry. Further

more, those that have been conducted show significant variation in their job creation estimates.

To provide reliable estimates E2 looked at jobs that would be created directly through the construction and operation of commercial plants, excluding data on pilot and demonstration plants. Of the 27 commercial facilities that are scheduled to come online by 2015, 24 reported permanent operation job estimates, 12 reported peak construction job estimates, and 7 provided indirect job estimates. These are listed in Appendix F. Using this data, E2 looked at job estimates on a per gallon basis. On a per gallon basis, a million gallons of production ca

pacity generates 2.24 permanent jobs, 10.29 construc

tion jobs, and nearly 15 indirect jobs. As reported by companies, indirect jobs include feedstock production.

Multiplying these averages against E2’s low and high end production scenarios for commercial facilities only, E2 found that on the low-end, about 1,518 direct, 6,965 construction and 9,924 indirect jobs could be created. On the high-end, 3,939 direct, 18,076 construction and 25,755 indirect jobs could be created. This means that commercial facilities could create 18,407 to 47,770 jobs in total over the next three years (Table 5). Both direct and indirect jobs are permanent positions. Biofuelproducers report that fuel production jobs will be fulltime skilled and unskilled positions, starting around $30- 40,000 per year.

It is important to note that while these estimates provide a reliable jumping off point, total job creation related to advanced biofuel production will be far greater. These estimates do not include permanent and temporary jobs created in related industries, such as technology, equip

ment manufacturing, or transportation. Nor does it ac

count for PhD level research and development jobs, which according to a 2009 report by BioEnergy could reach 12,100 by 2022. 17



### Finally, while R&D jobs may change as the market ma

tures, corporate jobs in management and marketing also provide desirable employment opportunities, which are not counted here. Although E2 sees wide variation be

tween companies - with some employing anywhere from 17 (Fulcrum) to 446 (Abengoa) core employees - the cor

porate jobs that are created will be long term and high paying.



## Methodology

T o estimate potential job creation, E2 looked at job esti

mates in press releases for commercial facilities that are schedule to come online by 2015. E2 did not account for jobs created by demonstration and pilot facilities as the industry seems to be moving away from the introductory growth phase.



## Comparing E2 Estimates to Literature Review

Below is a contrast of E2’s results with available litera

ture. Operation job studies that include feedstock and delivery jobs have significantly higher estimates than E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 12 17 Bio Economic Research Associates: “US Economic Impact of Advanced Biofuels Production: Perspectives to 2030”. February 2009. < http://www.cleantechsandiego.org/reports/EconomicImpactAdvancedBiofuels.pdf > 

### Table 5 . Direct, indirect and construction jobs from the 27 new facilities coming online by 2015.

### those without. However, E2’s results are within the range provided by studies that exclude feedstock and delivery jobs and only look at operating jobs (Table 6).

E2’s results for construction jobs per million gallons were also within the range provided by available literature for construction jobs, as shown in Table 7 below. 18



# VI. Market Factors for Industry Growth

Stability Cited in the 2011 report as one of the greatest market hurdles, marketplace certainty continues to be the big

gest challenge voiced by advanced biofuel producers. Volatile oil prices create a moving target for price com

petitiveness. Government influence and support through policies and funding programs can create the baseline stability that biofuels and its investors require to scale. Financing will follow, but stability must lead the way.

While policies may be enhanced or augmented, espe

cially with the integration of sustainability standards for sourcing, this may be done without fundamentally changing the nature of a given program. The continued support of the programs described next can result in bio

fuels reaching E2’s high-end capacity numbers in 2015 and beyond.



## RFS2 The U.S. government’s first major effort at marketplace certainty came in the form of the Renewable Fuel Stan

dard (RFS) under the Bush Administration. The RFS came in response to concerns of dependence on foreign oil, climate change, and an interest in supporting rural economies. This standard has become the most impor

tant biofuel policy in the nation, and as testament of its effectiveness, many of the biorefineries coming online in 2012 and 2013 are direct results of the RFS.

Congress established the initial RFS under the Energy Policy Act of 2005. Its updated successor, frequently called the RFS2, set a standard for 36 billion gallons of renewable fuel to be blended into gasoline by 2022. The standard divides the renewable fuel requirement into total renewable fuels, advanced biofuels, biomass-based die

sel, and cellulosic ethanol. Each of these categories has a volume requirement and standard. It also sets lifecycle greenhouse gas performance threshold standards in or

der to guarantee the renewable fuels emit less than con

ventional fuel. 19 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 13 18 Bio Economic Research Associates: “US Economic Impact of Advanced Biofuels Production: Perspectives to 2030”. February 2009. < http://www.cleantechsandiego.org/reports/EconomicImpactAdvancedBiofuels.pdf >

19 Congressional Research Service. “Renewable Fuel Standard (RFS): Overview and Issues.” By Randy Schnepf and Brent D. Yacobucci. 2012. July 2012

< http://www.fas.org/sgp/crs/misc/R40155.pdf >. 

### REG’s Danville, Illinois facility. Photo credit REG, Inc. Table 7: Adapted from Bio-Era’s US Economic Impact of Advanced Biofuels Production: Perspectives to 2030 Table 6: E2’s job multiplier, developed from industry survey, is within the range of multipliers from academic studies.

### RFS2 provides a mandatory market for biofuels that meet its standards. It sets a cap on corn ethanol, which can drive up the prices of produce and supports the expan

sion of the advanced biofuels industry. By securing de

mand for biofuels, this standard helps reduce some of the risk associated with investing in biofuels, opening opportunities for investment capital. It also guarantees demand for agriculture while enhancing the United States’ energy security and providing considerable envi

ronmental benefits. 20



### In 2012, between election year debates over support for renewable energy and the Midwestern drought, there have been additional calls to “open up” the RFS2 to changes. The advanced biofuel industry has uniformly asked that the existing RFS2 remain intact, as this is the only steadfast policy to date. While plenty within the in

dustry might change aspects of the rule, opening up the rule could invite a flood of unwelcome changes. Keeping the standard in place, as it currently stands, is the bare minimum of stability that could be provided to biofuel companies.



## Military
Military investments into the development and commer

cialization of biofuels have been crucial for the progress of the industry. Rather than an environmental motivation, the Department of Defense has identified domestic fuels as a key national security strategy. The military has ex

pressed a need for a domestic supply of transportation fuels, so that DoD energy supply may not be interrupted by geopolitical instability and less subject to fuel price volatility. “The Air Force is the nation’s largest user of oil and gas. It spends about $8 billion on petroleum and electricity every year – the vast majority on fuel for our aircraft. Every time oil goes up $1 a barrel, it costs the defense department (and we taxpayers) about $130
million.” 21 

### For this reason, ninety percent of DoD energy investments are measures to increase energy efficiency, so the total energy required for military operations is
reduced. 22 

### However, long-term reliance on liquid fuels is inevitable, and therefore renewable fuels are of increas

ing interest.

Executive Order 13423 mandated a 30 percent reduction in non-tactical fleet fossil fuel use by 2020. This, in addi

tion to goals by each branch of the DoD to ramp up use of advanced biofuels has been augmented with testing and initial purchases of advanced biofuels. In mid-2011, 99 percent of the Air Force fleet had been certified to fly on biofuel blends. 23



### This year the Department of Defense has been criticized for its purchases of advanced biofuels for testing. This comes despite a long history of investing and developing technologies critical to the country’s defense, similar to early investments in night-vision goggles. Military pur

chases of test fuels are large when broken down by the gallon, however development stage products are not meant to be cost competitive. The commercialization of these fuels will bring down the cost curve, and the mili

tary’s support is widely identified as a major driving force toward commercialization, and eventually, lower priced
fuel.

Aside from grant programs, the military, as the single largest purchaser of fuels in the U.S, continues to exam

ine off-take agreements and biofuel investments through E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 14 20 United States Environmental Protection Agency. “Regulation of Fuels and Fuel Additives: 2012 Renewable Fuel Standards.” Vol 77, No 5. 9 August 2012.

< http://www.gpo.gov/fdsys/pkg/FR-2012-01-09/pdf/2011-33451.pdf >.

21 Seip, Norman. "Push in Congress to ban biofuels in military has big long-term costs." The Christian Science Monitor. 16 July 2012. 09 August 2012

< http://www.csmonitor.com/Commentary/Opinion/2012/0716/Push-in-Congress-to-ban-biofuels-in-military-has-big-long-term-costs >.

22 http://energy.defense.gov

23 The Pew Project on National Security, Energy and Climate. “From Barracks to the Battlefield.” Publication. 2011. July 2012

< http://www.pewenvironment.org/uploadedFiles/PEG/Publications/Report/DoD-Report_FINAL.pdf >. 

### Distillation equipment at Dy

namic Fuels’ Geismar, Louisi

ana facility. Photo credit Dy

namic Fuels.

### DARPA, its established R & D system. 24 

### This same tech

nology development has also supported the Internet, Global Positioning Systems, semiconductors, and more. In 2011 President Obama announced that the Navy, DOE, and USDA would invest up to $510 million in the
construction and retrofit of biorefineries.



## LCFS At the state level, California has enacted the Low Carbon Fuel Standard (LCFS), which has encouraged additionalClean Fuel Programs in Oregon and the Northeast/MidAtlantic region. The California LCFS requires a reduction of 10% in the carbon intensity of California’s transporta

tion fuel by 2020. The carbon intensity of fuels is meas

ured from production to consumption. In California, transportation fuels make up 40% of the annual green

house gas emissions making fuel emission reductions a critical way for California to reach its overall climate change goals. 25



### This program’s strategy is to incentivize cleaner fuels but remain “fuel neutral” by letting obligated parties choose how to reduce emissions and thereby allowing them to respond to consumer demand. Todd Ellis of Imperium Renewables, when discussing the California rule, states, “this policy is forcing innovation to provide lower carbon fuels.” 26 

### Those producers that exceed the standard will receive credits that they can either save for use later or sell to other producers who have not met the standard. The Governor’s office estimates 20% of vehicle gasoline consumption will be replaced with low carbon fuels. 27



### The LCFS does not pick winners and losers but instead allows the market to establish the most cost effective fuel mix for each company. It spurs competition between creators of low carbon fuels who want to sell their prod

uct to fuel providers. This standard ensures that a market for these low carbon fuels exists which will promote in

novation, growth and development of the industry. 28 

### E2's research shows that the vast majority of advanced biofuels are expected to possess just one quarter the CI of gasoline, which represents a 75% reduction in green

house gases from petroleum equivalents. Within Califor

nia, this report assumes that reduced travel and im

provements in fuel efficiency will keep demand constant at 18 billion gallons per year through 2020 for simplicity’s sake. Therefore a ten percent reduction in carbon inten

sity could be met with a combination of 15.6 billion gal

lons of traditional fuel plus 2.4 billion gallons (gasoline equivalent) of advanced biofuels (assuming advanced biofuels’ CI is one quarter that of gasoline and that tradi

tional fuels’ CI does not increase). To meet the 2015 milestone of a 2.5 percent reduction exclusively through advanced biofuels, 600 million gallons (gasoline equiva

lent) of advanced biofuels are needed - although the 2015 target is more likely to be met with a combination of improved CI ethanol, natural gas, electricity and ad

vanced biofuels. Given the 2.6 billion gallons of commer

cial production found within this report, if standards like the LCFS are upheld, there is reason to believe that these standards could be exceeded well beyond 2015.

The LCFS is under significant pressure to be modified or removed by some interest groups in California through litigation and administrative efforts. The result has cre

ated greater investment uncertainty for the advanced biofuels industry, slowing down growth. If the LCFS is E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 15 24 The Pew Project on National Security, Energy and Climate. “From Barracks to the Battlefield.” Publication. 2011. July 2012

< http://www.pewenvironment.org/uploadedFiles/PEG/Publications/Report/DoD-Report_FINAL.pdf >.

25 "Low Carbon Fuel Standard Program Background." Air Resources Board. 18 August 2010. < http://www.arb.ca.gov/fuels/lcfs/lcfs-background.htm >.

26 Ellis, Todd. Imperium Renewables. Interview by Mary Solecki. 6 August 2012.

27 Environmental Entrepreneurs, “Creating a Large, Guaranteed Market for Advanced Biofuels through an LCFS.” Available at: http://www.e2.org/jsp/controller?docId=20765

28 Jessen, Holly. "Golden Grain pursues project to lower carbon intensity score." Ethanol Producer Magazine. 11 July 2012. 31 July 2012

< http://www.ethanolproducer.com/articles/8943/golden-grain-pursues-project-to-lower-carbon-intensity-score. >. 

### Planted trees.
Photo credit ZeaChem, Inc.

### upheld and greater certainty is created, investments will increase at a greater rate while carbon intensity will be improved.



## National LCFS A recent UC Davis study 29 

### examined the potential of a harmonized LCFS framework across the U.S. and Can

ada, which could eventually replace or complement the RFS2. With its enhanced carbon accounting, the sus

tainability standards set in place by the LCFS help shift production toward non-food based crops, alleviating the food scarcity issues that are of increasing concern. This standard would reduce the CI of transportation fuels by 10-15% by 2030. Such an enhanced RFS2/LCFS was found to reduce fuel and feed prices for consumers, in

crease value for advanced biofuels, reduce compliance costs, and increase energy security. The study found that a national LCFS creates an energy security savings of $5-22 per barrel by substituting domestic energy sources. This savings equates to $411 billion by 2035 on fuel expenditures.



## Off-take Agreements As cited in the 2011 report, off-take agreements remain an integral strategy to enable the establishment of ad

vanced biorefineries in the U.S. These agreements for large, long-term purchases of fuel may fix prices, and set up a stable customer/producer relationship. Such a sta

ble customer is highly desirable for an advanced biofuel producer, who can leverage an off-take agreement for lower cost debt financing. The primary advantage of an off-take agreement is the independence from legislation and regulation, allowing a buyer to dictate exactly what fuel is produced.

Both the public and private sectors can pursue off-take agreements to meet fuel demands. Within the public sec

tor, California’s Department of Governmental Services (DGS) recently issued a Request for Information , through which all California public agen c 

### ies may purchase fuel. 30 

### This concept is modeled after the success of Hawaii Electric Utility Company’s off-take agreement that was started in 2010, and which has resulted in at least two contracts to date. Large private companies have also begun off-take agreements for the price stabilization and reduced risk to their companies. For example, KiOR has secured off-take agreements with FedEx, Hunt Refining and Catchlight Energy, although the latter two are conditional agree

ments, based on the successful certifications of the fuel produced.

Inciting future off-take agreements between biofuel pro

ducers and users will boost the number of biorefineries that may come online in 2015 and beyond.



## State Policies and Tax Incentives States can use a variety of policies to encourage bio

energy. These can be broadly grouped into:

• Financial Incentives

. Tax credits, tax exemp

tions, favorable tax rates, grants, and loans.

• Vehicle Acquisition and Fuel Use Require

ments

. Requirements for government vehicle fleets to use alternative fuel vehicles that can run
on biofuels.

• Fuel Standards

. Fuel blend requirements and low carbon fuel standards.

As of this year, 44 states utilize one or more of the above policies to encourage biofuels manufacturing and/or use. Of these, 31 states provide tax credits, tax exemptions or favorable tax rates; 26 apply either a vehicle acquisition or fuel use requirement, 19 provide grants or loans; 13 have implemented a fuel standard or blend mandate and 9 directly incentivize production or infrastructure devel

opment.

While many have implemented a broad mix of relevant policies, several states have been particularly successful at incentivizing commercial biofuel projects. As high

lighted on the next page, these include Mississippi, Lou

isiana, and Florida. 31 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 16 29 Yeh, Sperling, et al. National Low Carbon Fuel Standard: Technical Analysis Report. University of California Davis, 2012.

30 https://www.bidsync.com/DPX?ac=view&auc=1924896

31 DOE. ALternative Fuels Data Center. Available at: http://www.afdc.energy.gov/laws/

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 17 

## Louisiana

In addition to a renewable fuel standard, Louisiana has a mix of research grants, blend rate reductions, and tax exemptions that target both supply and demand. The Advanced Ethanol Initiative aims to develop an ad

vanced ethanol industry in Louisiana by developing the required feedstock, a manufacturing facility network, and expanding advanced ethanol supply and demand beyond the 10% blend market by blending ethanol with gasoline at the pump.

Tax Credit

. The state offers a corporate or income tax credit for instate capital infrastructure projects, includ

ing biofuel projects. The tax credit provides 10% to 25% of the project costs and up to $1 million per ap

proved project.

Blend Rate Reduction

. Certain government institutions can buy advanced ethanol blends from manufacturing facilities for 15% less than the per gallon price of un

leaded gasoline.

Renewable Fuel Standard

. Once annual in-state pro

duction exceeds 50 million gallons, at least 2% of the total gasoline sold by volume in the state must be dena

tured ethanol. Once annual in-state biodiesel produc

tion exceeds 10 million gallons, at least 2% of the total diesel sold must be biodiesel produced from domesti

cally grown feedstock.

Key Projects: Dynamic Fuels | Geismar, LA | Capacity: 75 Mgal | Cost: $138m | Operational in 2010

Diamond Green | Norco, LA | Capacity: 140 Mgal | Cost: Not Given | Operational in 2013

BP Verenium | Jennings, LA | Capacity: 1.4 Mgal | Cost: Not Given | Operational in 2010 

## Florida

Hydrogen and Biofuels Investment Tax Credit

. An in

come tax credit is available for 75% of all capital opera

tion, maintenance, research and development costs in

curred in connection with an investment in the production, storage, and distribution of biodiesel (B10-B100) ethanol (E10-E100), or other renewable fuel in the state. The tax credit is capped at $1 million annually per claimant and $10 million annually for all claimants combined.

Renewable Energy Grants

. Farm to Fuel Grants Program provide matching grants for demonstration, commerciali

zation, research, and development projects related to re

newable energy technologies or bioenergy. Incentive awards are subject to state funding availability.

Key Projects: BP Vercipia | Highlands, FL | Capacity: 36 Mgal | Cost: $215m | Operational in 2015

INEOS | Vero Beach, FL | Capacity: 8 Mgal | Cost: $130m | Operational in 2012



## Mississippi

Production Incentive

. The Department of Agriculture and Commerce provides producers with direct payments of $0.20 per gallon for up to 30 million gallons per year per producer for up to 10 years following the start date of pro

duction. Total annual payment per producer is capped at $6 million or $37 million per year cumulative total. Pay

ments under this incentive end on June 30, 2015.

Fuel Use Requirement

. By 2014, at least 75% of all state vehicles must either fuel efficient or hybrid electric vehicles that achieve a fuel economy of at least 40 miles per gallon.

Key Projects : BlueFire Renewables | Fulton, MS | Capacity: 19 Mgal | Cost: $320m | Operational in 2013

KiOR | Nantchez, MS | Capacity: 33 Mgal | Cost: $350m | Operational in 2014

Enerkem | Pontotoc, MS | Capacity: 10 Mgal | Cost: $90m | Operational in 2014 Raw material check at Dynamic Fuels in Lou

isiana. Photo credit Dynamic Fuels.

# VII. Conclusions

E2’s 2012 report documents extensive economic activity surrounding advanced biofuels. This activity is illustrated by the significant federal and private investments over the last five years, the transition from development to production of advanced biofuels represented by at least 27 new production facilities by 2015, and the number of total projects already underway.

This report leads to the following conclusions:

1. About 685 million gallons of advanced biofuels capacity will exist in 2012, which will increase to at least 1.6 billion gallons by 2015. On the high end, this number could reach 2.6 billion gallons.

2. Requirements such as the RFS2 and LCFS, in concert with financial support from federal agencies like DOE and USDA are resulting in the construction or retrofit of 27 biorefineries by 2015. Fuel standards can be met by the capacity of these & existing facilities, but continued support of these government programs is crucial. Sufficient stability now will encourage investment of private capital into advanced biofuels, and increased quantities of fuel capacity.

3. Biofuel companies have had a challenging year, from an investment and policy standpoint, but continue to develop technologically and commercially. Many first of kind facilities are beginning or under construction, proving the scalability of some technologies. Mergers and acquisitions are beginning to consolidate the market so investments may become more concentrated.

4. From the 27 biorefineries coming online by 2015, about 1,518 permanent, 6,965 construction and 9,924 indirect jobs could be created. This number only scratches the surface, as it does not fully account for other jobs created within the biofuel value chain or corporate/R&D jobs. Also, this number is merely a starting point as the advanced biofuel industry continues to expand in coming years. 5. Off-take agreements provide a regulatory and policy free mechanism to incent the production of advanced biofuels. Stable demand through these agreements could result in increased advanced biofuel production capacity.

6. State policies to attract biorefineries are having a direct impact on the location of the facilities under plan. Many biorefineries will be located in the Southeast, where there are significant tax incentives and streamlined permitting processes.

7. The Department of Defense’s leadership and interest in advanced biofuels has highlighted the importance of a domestic, sustainable energy supply. With the military as a main customer, the USDA’s investment in feedstock production and DOE’s investments in biofuel production are showing a deliberate federal strategy to have a U.S.-based fuel supply and its related economic benefits.

8. Advanced biofuels will continue to decrease production costs as commercial capacity is expanded. At capacity, companies have plans to produce at $0.60-$3.50 per gallon, depending on the feedstock and technology. Although directly comparing to petroleum production costs is difficult, this range is expected to be competitive. E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 18

# Acknowledgements E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 19In addition to the dozens of advanced biofuel companies who provided data on their businesses and perspectives, the report authors would like to acknowledge the following friends and colleagues for their time &

contributions:

Judith Albert, E2 Staff
Eric Bowen, Renewable Energy Group and E2 Member Dallas Burkholder, US Environmental Protection Agency
Erik Chen, E2 Staff Sabrina Eshaghi, E2 Intern Jamie Hall, CalStart
Debbie Hammel, NRDC Sheeraz Haji, Cleantech Group Christine Luong, E2 Staff
Simon Mui, NRDC Shelby Neal, National Biodiesel Board Kinkead Reiling, E2 Member Brian Siu, NRDC
Sonia Yeh, UC Davis Leo Zhang, Cleantech Group Paul Zorner, Pegasus Capital Advisors and E2 Member

The authors would also like to thank the following for affording us an interview:

Richard Corey, California Air Resources Board
Michelle Manion, NESCAUM David Mann, Khosla Ventures
Brook Porter, Kleiner Perkins Caufield and Byers Floyd Vergara, California Air Resources Board

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 20 

# A PPENDIX 

# A

Advanced Biodiesel Facilities Registered with RFS2 (using non

- virgin oil feedstocks)
Company City State Capacity Feedstock WebSite
Agribiofuels Dayton TX 12 Multi Feedstock www.agribiofuels.com
Agrifuels Bremen OH 1 Multi Feedstock www.ohioagrifuel.com

Alternative Fuel Solutions Huntington IN 0.8 Multi Feedstock Alterra Bioenergy of Middle Georgia Gordon GA 12.1 Multi Feedstock www.alterrabioenergy.com American Biodiesel Energy Erie PA 4 Multi Feedstock www.americanbiodieselenergy.

com Beacon Energy Cleburne TX 12 Multi Feedstock www.beacontx.com

Beaver Biodiesel Portland OR .9 Multi Feedstock www.beaverbiodiesel.com Bently Biofuels Minden NV 1 Multi Feedstock www.bentlybiofuels.com

Bio Blend Fuels Manitowoc WI 2.6 Multi Feedstock www.bioblendfuels.com

BioDiesel One Southington CT 3 Multi Feedstock www.biodieseloneltd.com Blue Ridge Biofuels Asheville NC 1 Multi Feedstock www.blueridgebiofuels.com

Blue Sun Biodiesel St. Joseph MO 30 Waste Oil www.gobluesun.com
Bluegrass BioDiesel Falmouth KY 9 Multi Feedstock www.bluegrass

- biodiesel.com
BullDog BioDiesel Ellenwood GA 12 Multi Feedstock www.bbiod.com Cape Cod BioFuels Sandwich MA 0.5 Waste Oil www.capecodbiofuels.com Center Alternative Energy Company Cleveland OH 5 Multi Feedstock www.centeroil.com

CGF Clayton Clayton DE 11 Multi Feedstock www.cgfcorp.com Clinton County Bio Energy Clinton IA 10 Multi Feedstock www.ccbebiodiesel.com Community Fuels Stockton CA 10 Multi Feedstock www.communityfuels.com Crimson Renewable Energy Bakersfield CA 30 Multi Feedstock www.crimsonrenewable.com Deerfield Energy Deerfield MO 30 Down to Earth Energy Monroe GA 2 Multi Feedstock www.downtoearthenergy.net
DPC Enterprises Farmington CT Multi Feedstock www.farmingtonbiofuel.com Eagle Bio Diesel Kane Kane PA 3 Multi Feedstock
Emergent Green Energy Minneola KS 2 Multi Feedstock www.egebio.com Energy Tec Maquoketa IA 0 Waste Oil

Environmental Development Group Tucson AZ 1.5 Recycled Cooking Oil www.edgroup.us

Ever Cat Fuels Isanti MN 3 Multi Feedstock www.evercatfuels.com Evergreen Biodiesel Production Facility Taylors SC 36 Multi Feedstock

FELDA IFFCO Cincinnati OH 60 Multi Feedstock us.feldaiffco.com

Foothills Bio

- Energies Lenoir NC 5 Multi Feedstock www.foothillsbio

- energies.com

Gen

- X Energy Group Moses Lake WA 15 Multi Feedstock www.genxenergies.com

General Biodiesel Seattle Seattle WA 10 Multi Feedstock www.generalbiodiesel.com

Genuine Bio

- Fuel Indiantown FL 3.9 Used Cooking Oil www.genuinebiofuel.com

GGS Cookeville TN Cookeville TN 2 Used Veg Oil www.greengallonsolutions.com
Global Fuels Dexter MO 3 Multi Feedstock Green Earth Fuels of Houston Galena Park TX 90 Multi Feedstock www.greenearthfuelsllc.com Green Valley Biofuels Warrenville SC 35 Multi Feedstock www.greenvalleybio.com Greenlight Biofuels Holding Princess Anne MD Used Veg Oil www.glbiofuels.com

Greenwave Biodiesel Ft. Lauterdale FL 4 Waste Oil www.greenwavebiodiesel.com

Griffin Industries Butler KY 1.8 Multi Feedstock www.griffinind.com Hanson County Oil Producers Alexandria SD 7 High Plains Bioenergy Guymon OK 30 Multi Feedstock www.highplainsbioenergy.com

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 21 Imperial Western Products Coachella CA 10.5 Multi Feedstock www.biotanefuels.com
Imperium Grays Harbor Hoquiam WA 100 Multi Feedstock www.imperiumrenewables.com
Integrity Biofuels Morristown IN 5 Multi Feedstock www.integritybiofuels.com

Iowa Renewable Energy Washington IA 30 Multi Feedstock www.irebiodiesel.com

Jatrodiesel Miamisburg OH 5 Multi Feedstock www.jatrodiesel.com
Keystone BioFuels Camp Hill PA 60 Waste Oil www.keystonebiofuels.com

Lake Erie Biofuels dba HERO BX Erie PA 45 Multi Feedstock www.lakeeriebiofuels.com Leland Organic Corporation Leland NC 10 Multi Feedstock

Maine Standard Biofuel Portland ME 0.5 Yellow Grease www.mainestandardbiofuels.co

m

Natural Biodiesel Plant Hayti MO 5 Multi Feedstock

New Leaf Biofuel San Diego CA 2 Used Cooking Oil www.newleafbiofuel.com
Newport Biodiesel Newport RI 0.5 Recycled Cooking Oil www.newportbiodiesel.com

Patriot Biodiesel Greensboro NC 6.9 Multi Feedstock www.patriotbiodiesel.com

Piedmont Biofuels Pittsboro NC 3.3 Multi Feedstock www.biofuels.coop

Pinnacle Biofuels Crossett AR 10 Multi Feedstock www.pinnaclebiofuels.com

Pleasant Valley Biofuels American Falls ID 1.5 Recycled Cooking Oil, Tallow www.pleasantvalleybiofuels.co

m Promethean Biofuels Cooperative Corporation Temecula CA 1.5 Multi Feedstock www.prometheanbiofuels.com

R Power Biofuels Redwood City CA 0.8

RBF Port Neches Port Neches TX 180 Multi Feedstock www.rbfuels.com

RECO Biodiesel Richmond VA 1 Multi Feedstock www.recobiodiesel.com
Red Birch Energy Bassett VA 2.5 Multi Feedstock www.redbirchenergy.com

REG Many MN, IL, TX, IA 272 Multi Feedstock www.REGI.com

REV Biodiesel Gilbert AZ 30 Multi Feedstock www.revbiodiesel.com
Rio Valley Biofuels Anthony NM 1 Multi Feedstock www.riovalleybiofuels.com Sanimax Energy Deforest WI 20 Multi Feedstock www.sanimax.com

Scott Petroleum Corporation Greenville MS 20 Multi Feedstock www.scottpetroleuminc.com

Seminole Biodiesel Bainbridge GA 5 Multi Feedstock www.inland

- stores.com

SeQuential Biodiesel Salem OR 17 Multi Feedstock www.sqbiofuels.com
Simple Fuels Biodiesel Chilcoot CA 1 Multi Feedstock www.simplefuels.com

Smart Fuels Florida Fruitland Park FL

South East Oklahoma Biodiesel Valliant OK 5 Multi Feedstock Stepan Company Millsdale IL 22 Multi Feedstock www.stepan.com

Sullens Biodiesel Morrison TN 2 Waste Oil

Texas Biotech Arlington TX Multi Feedstock www.txbiotech.com

Texas Green Manufacturing Littlefield TX 1.3 Tallow www.texasgreen.biz

The La Grange Plant La Grange TX 3.5 Multi Feedstock www.thelagrangeplantinc.com
Thumb BioEnergy Sandusky MI 0.3 Multi Feedstock www.thumbbioenergy.com

TMT Biofuels Port Leyden NY 0.3 Recycled Cooking Oil www.tmtbiofuels.com

TPA Inc. Detroit MI 17.5 Multi Feedstock www.thepoweralternative.com Triangle Biofuels Industries Wilson NC 3 Multi Feedstock www.trianglebiofuels.com
United Oil Company Pittsburgh PA 5 Multi Feedstock www.unitedb100.com
Virginia Biodiesel Refinery West Point VA 7 Multi Feedstock www.virginiabiodiesel.com

Walsh Bio Fuels Mauston WI 5 Multi Feedstock walshbiofuel.com

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 22 Washakie Renewable Energy Plymouth UT 10 Multi Feedstock www.wrebiofuels.com

Western Dubuque Biodiesel Farley IA 3 Crude or Refined Veg Oils www.wdbiodiesel.net

Western Iowa Energy Wall Lake IA 30 Multi Feedstock www.westerniowaenergy.com

White Mountain Biodiesel North Haverhill NH 5.5 Multi Feedstock www.whitemountainbiodiesel.c

om Yokayo Biofuels Ukiah CA 0.5 Recycled Cooking Oil www.ybiofuels.org

91 Companies 1.48 Billion Gallons Capacity



### Capacity of facilities able to process non

- virgin oil biodiesel is 1.48 billion gallons. Some of this capacity is filled with biodiesel production from virgin oils, but non

- virgin biodiesel production lies at approximately 564 million gallons in 2012. As RFS2 biomass based diesel mandates increase, additional capacity proves ability to meet mandates.

The methodology E2 used to develop this list is detailed in Appendix H.

# A PPENDIX 

# B

Advanced Biofuel Facilities coming online in the United States and Canada before 2015 (Method One – Low End)

Company Facility Type Fuel Type Projected Online Capacity MGPY Facility Location Facility Cost (Millions) Private Investment (Millions) Public Funding? Feedstock Notes

Abengoa commercial Cellulosic Ethanol 2013 25 Hugoton, KS $133 $134 mill DOE cellulose

Aemetis commercial Cellulosic Ethanol 2015 11 Keyes, CA $8 $3.5 Project finance $1.88 CEC corn stover Pre-commercial cellulosic (1 MG) coming online 2013 in Keyes. By 2015, co-fermentation process at existing 55 MG facility. Approx 10 MG will be cellulosic feedstock, remainder corn

Algenol pilot Cellulosic Ethanol 2012 0.1 Fort Myers, FL $35 DOE and Lee County FL algae

American Process & Cobalt commercial Cellulosic Ethanol then butanol Q2 2012 0.89 Alpena, MI $22 mill DOE and MI woody biomass from EPA. Actual 2012 production predicted at .5 MGPY by EPA.

Beta Renewables Commercial Cellulosic Ethanol 2014 20 Sampson County, NC $4 BCAP Miscanthus & switchgrass JV of Chemtex and Gruppo Mossi & Ghisolfi; prototype in Italy
BlueFire Renewable commercial Cellulosic Ethanol 2013 19 Fulton, MS $320 $25.5 $85 mill DOE wood waste Construction of this plant is contingent upon completion of project financing.

BlueFire Renewable demo Cellulosic Ethanol 3.9 Lancaster, CA $100-125 wood waste needs additional financing to finish and should not be operational in 2012 but should be by 2015.
Blue Sugars Corp (formerly KL Energy ) demo Cellulosic Ethanol 2013 1.5 Upton, WY $11 upgrade $4 Bagasse and pulp wood EPA counting 0.1 production for 2012 RFS

BP - Verenium demo Cellulosic Ethanol operating 1.4 Jennings, LA $250 $4.9 DOE, 5.4 New Zealand Energy cane Pilot plant operates 24/7, 365

BP- Vercipia commercial Cellulosic Ethanol Within 3 years 36 Highlands, FL Energy cane 20,000 acre farm

Cool Planet commercial Renewable Gasoline 2012 2 Ventura County, CA $11.5 woodchips, crop residue or algae Financiers: GE, ConocoPhillips, NRG Energy, North bridge, Google Ventures and BP

Coskata demo Cellulosic Ethanol 2009 0.04 Madison, PA $113.4 $250 USDA lignocellulosic, wood chips, NG, sugar cane wastes

Diamond Green commercial Renewable Diesel 2013 140 Norco, Louisiana declined $241 mill DOE loan guarantee animal fat, used cooking oil Uses UOP oil. JV of Valero and Darling.

DuPont Cellulosic Ethanol pilot Cellulosic Ethanol 2010 0.25 Vonore, TN $140 $100 lignocellulosics, corn stover, switchgrass

DuPont Cellulosic Ethanol commercial Cellulosic Ethanol 2013 27.5 Nevada, Iowa $200 $8.7 mill tax breaks from Nevada, Iowa lignocellulosics, corn stover, switchgrass 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 23Company Facility Type Fuel Type Projected Online Capacity MGPY Facility Location Facility Cost (Millions) Private Investment Public Funding? Feedstock Notes

Dynamic Fuels commercial Renewable Diesel 2010 75 Geismar, LA $138 $138 animal fat, used cooking oil JV Syntroleum Corp and Tyson

EdeniQ & Logos Tech demo Cellulosic Ethanol 2012 0.05 Visalia, CA $68* $3.9 CEC forcellulosic boltons 2012, 20.4 DOE Logos Tech, Novozymes, Ceres, NextStep, USDA and UC Davis

Enerkem demo Cellulosic Ethanol and methanol operating 1.3 Westbury, Quebec $335* $50 M DOE, $80 USDA loan guarantee cellulose

Enerkem commercial Cellulosic Ethanol and methanol 2013 9.5 Edmonton, Alberta MSW

Enerkem commercial Cellulosic Ethanol and methanol 2014 10 Pontotoc, MS $90 MSW

Envergent (Honeywell/UOP & Ensyn) demo Crude oil into renewable diesel and aviation fuel 2014 0.1 Kapolei, HI $3 $25 M DOE grant Ag waste, pulp, paper, wood, energy crops and algae after demo - plant to ramp up to 50MG, but not clear if this will happen by 2015.

Fiberight commercial Cellulosic Ethanol 2013 3.6 Blairstown, IA $59.5 $25 mill USDA loan guarantee and $2.5 from Iowa MSW from EPA

Fulcrum commercial Cellulosic Ethanol 2014 10 Reno, NV $180 $140* $105 USDA loan guarantee MSW USDA loan guarantee will likely replace IPO funding for facility

Gevo commercial Isobutanol 2012 18 Luverne, MN $17 retrofit $232 equity, 40 debt $5 M USDA Additional processing techniques will need to be installed for fuel to be "advanced." Timeline for installing this is unclear.

Gevo commercial Isobutanol 2013 37 Redfield, SD
Gevo demo Isobutanol operating 1 St. Joseph, MO

Haldor Topsoe demo renewable gasoline 2012 0.345 Des Plaines, IL $25 M DOE grant wood waste

ICM demo cellulosic ethanol operating 0.245 St. Joseph, MO $25 M DOE grant corn fiber, switchgrass, energy sorghum

INEOS Bio commercial Cellulosic Ethanol 2012 8 Vero Beach, FL $450* $50 DOE $2.5 grant FL, $75 USDA loan MSW, ag residue from EPA

Iogen demo Cellulosic Ethanol operating (since 2004) 0.48 Ottawa, Ontario $98.82 equity + 10 debt $80 M DOE

Joule Unlimited demo Ethanol 2012 Hobbs, NM >$110* CO2 and sunlight expect to produce 25,000 gallons of ethanol and 15,000 gallons of diesel per acre at commercial scale 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 24Company Facility Type Fuel Type Projected Online Capacity MGPY Facility Location Facility Cost (Millions) Private Investment (Millions) Public Funding? Feedstock Notes

KiOR commercial Renewable Diesel and Gasoline second half 2012 11 Columbus, MS <$222 $179.4 equity and 75 debt $75 mill loan MS Dev Authority pre-commercial thinnings Recently announced EPA reg as a renewable gasoline blendstock. Plans to commercialize two more facilities in coming years, with details TBA.

KiOR commercial Renewable Diesel ground breaking Q1 2013 33 Natchez, MS $350 for BFCC, $110 for 2 plant upgrade pre-commercial thinnings Ground breaking pending financing and other considerations.

LanzaTech commercial Cellulosic Ethanol ? 20 Soperton GA $85.8 3M FAA, 4M DOE, 0.5M DARPA, 0.5 DOE, 7M New Zealand Government CO purchased Range Fuels in Jan 2012.

LS9 demo Renewable Diesel operating, 2012 0.075 Okeechobee, FL $79.5 + 3 debt $4.5 Florida Opportunity Fund Sugar first a demo then expected to be scaled up to commercial production levels

Mascoma pilot Cellulosic Ethanol operating 0.2 Rome, NY $51 $181 $26 DOE wood and switchgrass

Mascoma-Valero commercial Cellulosic Ethanol 2014 40 Kinross, Michigan $232 DOE and State of Michigan Hardwood pulpwood Option to expand to 80 MGPY. $1.77 cost per gallon, cited in S-1

POET demo Cellulosic Ethanol 2009 0.02 Scotland, SD $8 Corn cobs

POET commercial Cellulosic Ethanol second half of 2013 25 Emmetsburg, IA declined DOE loan corn cobs

RenTech demo Jet & renewable diesel operating 0.07 Commerce City, CO $4.62 $23 DOE woody biomass UOP Technology

RenTech commercial Aviation 2015 23 White River, Ontario woody biomass UOP Technology. Abandoned Natchez MS site for CTL.

Sapphire Energy commercial crude oil 2014 1 Columbus, NM $340* $135M USDA, 50M DOE, 54.5M USDA loan algae 100 barrels of crude oil which may be refined into any fuel

Sierra Energy demo Renewable Diesel Sacramento, CA $5M CEC MSW

Sundrop Fuels commercial Renewable gasoline 2014 50 Alexandria, LA $450 $217.3 woody biomass Partnered with ThyssenKrupp Uhde

Terrabon demo renewable gasoline 2010/ operating 0.05 Bryan, TX $1.25 + 9.6 from Logos MSW

US Envirofuels commercial Ethanol Dec 2014 (count as 2015) 36 Highlands, FL $170 sweet sorghum and sugarcane 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 25Company Facility Type Fuel Type Projected Online Capacity MGPY Facility Location Facility Cost (Millions) Private Investment Public Funding? Feedstock Notes

Virent demo renewable gasoline operating 0.01 Madison, WI $77 $1.5M FAA, 4M DOE, 13.4 DOE beet sugar Shell and HCL Cleantech

Woodland Biofuels demo Cellulosic Ethanol Q3 2012 1 Sarnia, Ontario $13.22 $4.275M SDTC, 4M Ontario Ministry of Research & Innovation, 9.8M SDTC wood waste

ZeaChem demo Cellulosic Ethanol operating 0.25 Boardman, OR $64* $25M DOE cooperative agreement for cellulosic ethanol production planted trees and wheatstraw EPA is counting 0.05 MG for 2012 RFS

ZeaChem commercial Cellulosic Ethanol 2014 25 Boardman, OR $232.5M loan from USDA, pre-cert for Oregon Business Energy Tax Credit $6.7M planted trees and wheatstraw

TOTAL 27 8 1 commercial

demos pilot 1.6 Billion Gallons



### All funding data provided by Cleantech Group, except direct company statements, which are denoted with a *.

Demo and Commercial; by Fuel Type: Company Count 2012 2013 2014 2015
Ethanol 24 14.225 126.325 267.325 337.225
Diesel 5 75.075 215.075 248.445 248.445
Gasoline 5 2.405 2.405 52.405 52.405
Butanol 1 19 56 56 56
Aviation 1 0.07 0.07 0.07 23.07 Multiple 1 11 11 11 11
Crude oil 2 0 0 1.1 1.1
TOTAL 39 121.775 410.875 636.345 729.245



### The methodology E2 used to develop this list is detailed in Appendix H. E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 26

# A PPENDIX 

# C

Active Advanced Biofuel Companies in the United States & Canada (Method Two – High End)

Company City State Plant Location Type Anticipated 2012 Capacity (Millions of

Gallons) Anticipated 2015 Capacity (Millions of

Gallons) Note PublicCompany? Technology Feedstock Private Investment (Millions of

Dollars) RFS2/ LCFS Registered

Abengoa Chesterfield MO Hugoton, KS Ethanol 0.02 25 Multiple EH cellulose LCFS, RFS2

Aemetis Cupertino CA Keyes, CA Ethanol 11 Cellulosic ethanol,

corn EH cellulose RFS2

Algenol Bonita Springs FL Fort Myers, FL Ethanol 0.1 0.1 Algae into ethanol algae fermentation algae

Alipha Jet San Francisco CA TBD Aviation, Renewable Diesel, Renewable Gasoline 0 20 catalytic decarboxylation plant oils, waste oils and fats, and algae oil

AltAir Fuels Seattle WA Anacortes, WA Aviation 100 camelina
American Process Inc Atlanta GA Alpena, MI Ethanol 0.89 0.89 EH cellulose/wood RFS2

Amyris Inc

. Emeryville CA Diesel - Renewable and Aviation 0.01 0.01 shifting production from Decatur IL facility to Brazil but have plans for US production in future. Still have Emeryville demo facility. Yes fermentation sugar $363.8 private equity + 58.7 private placement +

25 debt

Archer Daniels Midland Decatur IL Ethanol 0 1 corn stover. Purdue as research partner. EH cellulose RFS2/ LCFS

Beta Renewables NC Sampson County, NC Ethanol 20 Proesa technology license to multiple biofuel producers. EH miscanthus and switchgrass

Bio Architecture Lab Berkeley CA Multiple Fuels - Renewable building pilot facility this year in Berkeley. Seaweed as feedstock. seaweed $11

Blue Fuel Energy Corporation Sidney BC Multiple Fuels - Renewable CO2 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 27Company City State Plant Location Type Anticipated 2012 Capacity Anticipated 2015 Capacity Note Public Co? Technology Feedstock Private Investment (Millions of

Dollars) RFS2/ LCFS Registered
Blue Sugars Corp (formerly KL Energy) Upton WY Upton, WY Ethanol 0 1.5 EH woody biomass $4

BlueFire Renewables CA Fulton, MS, Lancaster, CA Ethanol 0 22.9 concentrated acid hydrolysis woody biomass $19.5

BP Biofuels - Butamax Wilmington DE Biobutanol 0.5 0.5 Commercialization plans TBA late 2012 Yes fermentation corn

BP Biofuels - Vercipia Highlands FL Highlands, FL Ethanol 36 includes 20,000 acre farm Yes EH Energy cane and energy grasses

BP Biofuels - Verenium Berkeley CA Jennings, LA Multiple Fuels - Renewable 1.4 1.4 Pilot plant operates 24/7, 365. Yes enzymatic hydrolysis Energy cane and energy grasses

Byogy San Jose CA Aviation ethanol to jet fuel catalytic synthesis ethanol

Calgren Renewable Fuels Pixley CA Ethanol 58 Currently corn, but moving to cellulosic by 2015. corn now, moving to cellulose RFS2/ LCFS

Cobalt Technology Mountain View CA Biobutanol counted with API Counted with API Biobutanol from forestry products for aviation fuel fermentation cellulose $73.5

Cool Planet Biofuels Camarillo CA Ventura, CA Gasoline - Renewable 2 2 Company projects 1B gallons/year by 2015. CO2 $11.5

CORE Biofuel Sarnia ON Canada Gasoline - Renewable 0 17.8 direct jobs: 50 indirect: 150 type: skilled/ unskilled gasification woody biomass $3

Coskata Warrenville IL Madison, PA Ethanol 0.05 55.05 Going to Natural Gas production Delayed gasification multi-feedstock $113.4 LCFS, RFS2

Diamond Green LA Norco, Louisiana Diesel - Renewable 0 140 hydroprocessing animal waste

DuPont Cellulosic Ethanol Vonore TN Vonore, TN, Nevada, IA Ethanol 0.25 27.75 EH cellulose $100

Dynamic Fuels Geismar LA Geismar, LA Diesel - Renewable 75 75 Tyson & Syntroleum JV FT animal waste $138 RFS2

Dynamotive BC Multiple Fuels - Renewable Bio-oil pyrolysis multi-feedstock $10.5

EcoTech Fuels Los Angeles CA Ethanol gasification MSW 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 28Company City State Plant Location Type Anticipated 2012 Capacity Anticipated 2015 Capacity Note Public Co? Technology Feedstock Private Investment (Millions of

Dollars) RFS2/ LCFS Registered

EdeniQ Visalia CA Brazil and USA Ethanol 0.05 "tens of millions" although noted here, imprecise forecast not included in totals. enzymatic cellulose $68*

Emerald Biofuels LA Plaquemine, LA diesel - Renewable 85 Honeywell/UOP tech on Dow Chem site. Permitted. waste fats and oils

Enerkem Montreal QBC Pontotoc, MS and Canada Ethanol 1.3 30 Delayed Thermochemical MSW $335*

Ensyn Technologies Ottawa ONT Kapolei, HI Bio crude oil 0.1 Partnering with UOP for Hawaii project rapid thermal processing multi-feedstock $3

Fiberight Blairstown IA Blairstown, IA Ethanol 6 MSW EH MSW

Flambeau River Biofuels Park Falls WI Diesel - Renewable woody biomass

Fulcrum BioEnergy CA Reno, NV Ethanol 0 40 Filed $140*

General Atomics San Diego CA Aviation algae

Gevo Development Engelwood CO Luverne, MN, Redfield, SD, St. Joseph, MO Isobutanol 19 350 isobutanol from forestry byproducts Yes fermentation multi-feedstock $232 equity, 40 debt

Green Plains Renewable Energy Shenandoah, IA Ethanol n/a partnership with BioProcess Algae to test algae in Shenandoah, Iowa facility. algae $9.7 LCFS, RFS2

GreenField Ethanol Toronto ONT Ethanol see Enerkem Edmonton

plant working with Enerkem on Quebec cellulosic facility. cellulose RFS2

Haldor Topsoe TBD Des Plaines, IL Ethanol 0.345 0.8 EH

Hawaii Bioenergy Honolulu HI Diesel - Renewable 0 0

ICM Colwich KS St. Joseph, MO Ethanol 0.245 0.245 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 29Company City State Plant Location Type Anticipated 2012 Capacity Anticipated 2015 Capacity Note Public Co? Technology Feedstock Private Investment (Millions of

Dollars) RFS2/ LCFS Registered

Imperium Renewables Seattle WA Grays Harbor, WA Aviation 30 Biodiesel producer looking to expand into jet fuel. waste oils

INBICON Chicago IL Ethanol Domestic projects are partnership based. 3 plants currently in engineering non-chem pretreatment, EH, sugar fermentation cellulose - ag residues $450*

INEOS Bio Lisle IL Vero Beach, FL Ethanol 8 8 gasification MSW

Iogen Ottawa ONT Ottawa, Ontario Ethanol 0.48 0.48 cellulose $98.82 equity + 10 debt

Joule Biotechnologies Cambridge MA Hobbs, NM renewable diesel and ethanol expect to produce 25,000 gallons of ethanol and 15,000 gallons of diesel per acre at commercial scale Helioculture Platform CO2 >$110*

KiOR Pasadena TX Multiple Fuels - Renewable 11 143 Yes Biomass Fluid Catalytic Cracking woody biomass $179.4 equity and 75 debt

Lanza Tech Roselle IL Soperton GA Ethanol 1 20 gasification $85.8

Lignol Burnaby BC pilot in Burnaby, BC Ethanol 20 partnered with Novozymes. woody biomass

Logos Technologies Fairfax VA Ethanol 0 Visalia production counted under EdeniQ EH cellulose, MSW

LS9 South San Francisco CA Okeechobee, FL Diesel - Renewable 0.075 0.075 Biofuels fermentation woody biomass & sugar $79.5 + 3 debt

Mascoma Lebanon NH Rome, NY, Kinross, MI Ethanol 0.2 40.2 Filed CBP woody biomass $181

Novogy Cambridge MA Ethanol still in stealth mode. paper waste $4.2 private equity + 1.5 debt

Optinol CA TBD biobutanol 0 20 feedstock: any sugar source fermentation sugar from multi feedstocks $1

OPX Biotechnologies Boulder CO Multiple Fuels - Renewable enzymatic hydrolysis multi-feedstock $63.6 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 30Company City State Plant Location Type Anticipated 2012 Capacity Anticipated 2015 Capacity Note Public Co? Technology Feedstock Private Investment (Millions of

Dollars) RFS2/ LCFS Registered

Pacific Ethanol Sacramento CA Ethanol 0 0 intends to expand to cellulose. agricultural residue, sweet sorghum RFS2/ LCFS

Phycal Highland Heights OH multiple Fuels - Renewable Ethanol from cassava and other fuels from algae cassava and algae

POET Sioux Falls SD Scotland, SD & Emmetsburg, Iowa Ethanol 0.02 25.02 tech- anaerobic digester Yes EH Corn stover, switchgrass, MSW, wheat straw LCFS, RFS2

Primus Green Energy Hillsborough NJ Eastern PA Gasoline - Renewable 0.02 3.2 intend to break ground on commercial facility in 2013. Working with Bechtel woody biomass $40

Purevision Technology Fort Lupton CO Fort Lupton, CO Ethanol Broke ground on pilot plant July 2012. multi-feedstock

REII Diesel - Renewable 0.35 0.35 gasification woody biomass

Rentech Los Angeles CA Commerce City, CO, White River, Ontario Multiple - Renewable 0.15 23.15 Biomass gasification for renewable diesel and jet fuel FT multi-feedstock

Sapphire Energy San Diego CA Columbus, NM Crude Oil 0.02 1.02 Renewable crude oil for gasoline, diesel, and jet fuel. hydroprocessing algae $340*

Sierra Energy Davis CA Sacramento, CA Diesel - Renewable 0.37 gasification MSW

Siluria San Francisco CA multiple Fuels - Renewable oxidative coupling of methane natural gas $33

Solazyme South San Francisco CA Multiple Fuels - Renewable 0.75 145 Yes hydroprocessing algae $121.91

Solena CA Santa Clara, CA Aviation

Sundrop Fuels Louisville CO Rapides Station, Louisiana (near Alexandria) Gasoline - Renewable 0 50 gasification gasification woody biomass $217.3 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 31Company City State Plant Location Type Anticipated 2012 Capacity (Millions of

Gallons) Anticipated 2015 Capacity (Millions of

Gallons) Note Public Co? Technology Feedstock Private Investment (Millions of

Dollars) RFS2/ LCFS Registered

Terrabon Port Arthur TX Bryan, TX Gasoline - Renewable 1 20 received Logos contract for DARPA fuel fermentation / chemprocessing MSW $1.25 + 9.6 from Logos

UOP (Honeywell) Washington DC Multiple Fuels - Renewable Envergent production

counted

under Ensyn Many partnerships across industry. - building plant with Ensyn Ag waste, pulp, paper, wood, energy crops and algae

US Envirofuels Riverview FL Highlands, FL Ethanol 36 Sugar-based ethanol sugarcane and sweet sorghum

Virent Madison WI North America renewable gasoline and chemicals 0.01 20.01 Plan to have 20 MG facility come online in 2016 BioForming Process plant sugars $77

Woodland Biofuels TX Ethanol 1 1 enzymatic hydrolysis woody biomass $13.22

Zeachem Lakewood CO Boardman, OR Ethanol 0.25 25.25 ethanol (2012, demo scale and YE14 commercial scale), jet and diesel (2013, demo scale), gasoline (2015, demo scale) fermentation and gasification biomass: poplar trees and wheatstraw $64*

Zeropoint Potsdam NY Gasoline - Renewable gasification woody biomass $4.62



### 74 Companies TOTAL 125.48 1760.17



### All funding data provided by Cleantech Group, except direct company statements, which are denoted with a *.

The methodology E2 used to develop this list is detailed in Appendix H. E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 32

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 33 

# A PPENDIX 

# D

Federal & Public Funding for Advanced Biofuel Projects

Company Date Amount Investment Type Investors Abengoa Bioenergy 8/19/11 $133,900,000 Loan Guarantee US Department of Energy (DOE)

Aemetis 6/14/12 $1,875,528 Grant California Energy Commission Algenol Biofuels 11/18/10 $10,000,000 Grant Lee County Southwest Florida Algenol Biofuels 12/4/09 $25,000,000 Grant US Department of Energy (DOE)

American Process 08/2011 $4,000,000 Grant DOE, Michigan Econ Dev Corp

Archer Daniels Midland 06/2010 $22,000,000 Grant US Department of Energy (DOE)

Bio Architecture Lab, Inc. 06/2010 $9,000,000 Matching Grant US Department of Energy (DOE)

BioCee 10/26/09 $2,200,000 Grant US Department of Energy (DOE)

Biodico 4/11/12 $2,000,000 Grant California Energy Commission Blue Marble Energy 11/23/09 $2,000,000 Grant Community Economic Revitalization Board

BlueFire Renewables 01/2010 $88,000,000 Grant US Department of Energy (DOE)

Cellana 5/6/11 $5,521,173 Grant US Department of Agriculture (USDA)

Clean World Partners 6/14/12 $6,000,000 Grant California Energy Commission

Cobalt & API 8/3/11 $18,000,000 Grant US Department of Energy (DOE)

Coskata 1/21/11 $250,000,000 Loan Guarantee US Department of Agriculture (USDA)

Diamond Green Diesel 1/20/11 $241,000,000 Loan Guarantee US Department of Energy (DOE) **
EdeniQ 6/14/12 $3,900,000 Grant California Energy Commission EdeniQ & Logos 12/4/09 $20,400,000 Grant US Department of Energy (DOE)

Enerkem 12/2009 $50,000,000 Grant US Department of Agriculture (USDA)

Enerkem 12/2010 $80,000,000 Loan Guarantee US Department of Energy (DOE) Fiberight 01/2010 $2,500,000 Grant Iowa Power Fund Fiberight 1/16/12 $25,000,000 Loan Guarantee US Department of Agriculture (USDA)

Fulcrum 8/13/12 105,000,000 Loan Guarantee US Department of Agriculture (USDA

General Atomics 6/13/11 $2,000,000 Grant US Department of Energy (DOE)

Genomatica 6/13/11 $5,000,000 Grant US Department of Energy (DOE)

Gevo 9/28/11 $5,000,000 Grant US Department of Agriculture (USDA)

INEOS 1/18/12 $50,000,000 Grant US Department of Energy (DOE) INEOS New Planet BioEnergy 8/19/11 $75,000,000 Loan Guarantee US Department of Agriculture (USDA)

LanzaTech 6/22/11 $500,000 Grant DARPA

LanzaTech 12/2/11 $3,000,000 Grant Federal Aviation Administration (FAA)

LanzaTech 8/31/11 $4,000,000 Grant US Department of Energy (DOE)

LanzaTech 11/19/10 $500,000 Project Finance US Department of Energy (DOE)

LS9 7/18/11 $9,000,000 Grant US Department of Energy (DOE) Mendota Advanced Bioenergy 11/2010 $3,000,000 Grant California Energy Commission Myriant Technologies 6/18/12 $25,000,000 Loan Guarantee US Department of Agriculture (USDA) Myriant Technologies 6/18/12 $25,000,000 Grant US Department of Energy (DOE)

NextCAT 8/29/11 $500,000 Grant National Science Foundation OPX Biotechnologies 8/30/10 $6,000,000 Grant US Department of Energy (DOE) Pennycress Energy Company 9/30/10 Grant US Department of Agriculture (USDA) Pennycress Energy Company 10/24/11 Grant US Department of Agriculture (USDA) Phycal 7/23/10 $24,243,509 Grant US Department of Energy (DOE)

POET 7/7/11 $105,000,000 Loan Guarantee US Department of Energy (DOE) Propel Fuels 6/1/12 $10,100,000 Grant California Energy Commission

REII undisclosed US Department of Energy (DOE) Sapphire Energy 11/9/11 $135,000,000 Loan Guarantee US Department of Agriculture (USDA) Sapphire Energy 12/7/09 $54,500,000 Loan Guarantee US Department of Agriculture (USDA) Sapphire Energy 12/31/09 $50,000,000 Grant US Department of Energy (DOE) Sierra Energy 6/14/12 $5,000,000 Grant California Energy Commission Solazyme 8/4/09 $800,000 Grant California Energy Commission

UOP 12/2/11 $1,100,000 Grant Federal Aviation Administration (FAA)

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 34 UOP 3/3/10 $1,500,000 Grant US Department of Energy (DOE)

Verenium 7/24/08 $5,400,000 Grant New Zealand Foundation for Research

Verenium 4/22/10 $4,900,000 Grant US Department of Energy (DOE)

Verenium 7/14/08 Grant US Department of Energy (DOE)

Verenium 2/27/08 Grant US Department of Energy (DOE)

Virent 12/2007 $5,000,000 Grant US Department of Agriculture (USDA) Virent Energy Systems 12/2/11 $1,500,000 Grant Federal Aviation Administration (FAA) Virent Energy Systems 6/13/11 $13,400,000 Grant US Department of Energy (DOE) Virent Energy Systems 8/31/11 $4,000,000 Grant US Department of Energy (DOE)

ZeaChem 2/24/12 $12,000,000 Grant National Institute of Food and Agriculture

ZeaChem 1/26/12 $232,500,000 Loan Guarantee US Department of Agriculture (USDA)

ZeaChem 5/14/10 $25,000,000 Grant US Department of Energy (DOE)

TOTAL $1, 770 ,7 40,210

DOE total $730,043,509

USDA total $967 ,521,173

Other $73,175,528



### ** Diamond Green Diesel declined the loan guarantee offered by Department of Energy in 2011 in favor of project financing received from Valero Energy in May 2011.

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 35 

# A PPENDIX 

# E

Feedstock Supplies for Advanced Biofuel Production
Company City State Note Website

Algae.Tec Atlanta Georgia algae production. Facility in Atlanta GA www.algaetec.com.au AlgaeVenture Systems Marysville Ohio Algae producer http://www.algaevs.co m/products

- technology

Aquatic Energy Lake Charles Louisiana Algae producer www.aquaticenergy.co

m ArborGen Summerville South Carolina Tree seedling provider www.arborgen.com Aurora Algae Hayward California Algae producer www.auroraalgae.com

BioProcess Algae Portsmouth Rhode Island Algae bioreactors and production. 5 acre facility at Green Plains site in IA http://www.bioprocess algae.com/

Bunge Saint Louis Missouri Sugar production. Also makes ethanol in Brazil. http://bunge.com

Catchlight Energy California Focused on feedstock and marketing/dist parts of supply chain, but will be moving into molecular conversion. www.catchlightenergy.

com Cellana Algae producer

Ceres Biofuels Thousand Oaks California Many energy crops www.ceres.net

Chromatin Chicago Illinois Sorghum development and production http://www.chromatinin c.com/

Comet Biorefining London Ontario www.cometbiorefining.

com

Enova Energy Group Atlanta Georgia Wood pellets to Europe from GA biorefinery. Projected online 2014. www.enovaenergygro up.com

Enviva Bethesda Maryland wood pellets, facilities worldwide. www.envivabiomass.c

om Florida Crystals Corp West Palm Beach Florida www.floridacrystals.co

m

Kent Bioenergy San Diego California Algae producer http://www.kentbioener gy.com/

Mendota Advanced Bioenergy Fresno California Sugar beets. was depending on CEC AB118 money to proceed.

Naturally Scientific Nottingham UK Sugar and PVO production http://www.naturally

scientific.com/

NexSteppe South San Francisco California Sorghum and switchgrass production www.nexsteppe.com

Parabel Melbourne Florida Biocrude http://www.parabel.co

m Pennycress Energy Company Peoria Illinois pennycress seeds as a feedstock www.growpennycress.

com

Power Stock Kennewick Washington biomass

- energy harvest pellets www.pacificpowerstoc k.com

Proterro Ewing New Jersey Sucrose production and photobioreactor system www.proterro.com

Renewed World Energies Georgetown South Carolina Algae producer www.rwenergies.com

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 36 Renmatix Kennesaw Georgia Sugar production from biomass http://renmatix.com
SG Biofuels Encinitas California jatropha. 70 core jobs. www.sgbiofuels.com

Solix Fort Collins colorado Algae production and extraction www.solixbiofuels.com

SunEco Energy Chino California Biocrude and SVO http://sunecoenergy.co m/index.cfm

Sweetwater Energy Rochester New York Sugar from non

- food sources; pilot in Rochester NY www.sweetwater.us

TerViva San Francisco California renewable tree oil http://www.terviva.com /index.php

Virdia (former HCL Cleantech) Redwood City California Working with Virent on aviation fuels project & plans for MS commercial facility. virdia.com

Xylowatt Belgium Syngas http://www.xylowatt.co m/en / Yulex Corporation Carlsbad California Syngas from guayule http://www.yulex.com/



## Enzyme and Chemical Supplies for Advanced Biofuel Production

Company Type City State Note AgriVida Enzymes Cambridge Massachusetts INzymeTM technology
BioAmber Chemicals Plymouth Minnesota

Blue Marble Energy Chemicals Seattle Washington
C5

- 6 Technologies Enzymes Middleton Wisconsin

Codexis Enzymes/Chemicals Redwood City California cutting deal with Shell

soon

DuPont Enzymes/Chemicals Wilmington Delaware Acquired leading enzyme manufacturer Danisco in 2011

Dyadic Enzymes Jupiter Florida Genomic research and
enzymes
Elevance Renewable Sciences Chemical/Bio

- oil Bollingbrook Illinois facility in Natchez, MS. 165 jobs.

Genencor Enzymes and bioprocessing Rochester New York owned by DuPont

Genomatica Chemicals San Diego California feedstocks include sugars and MSW/syngas GlycosBio Chemicals Houston Texas
Metabolix Chemicals Cambridge Massachusetts

Myriant Chemicals Woburn Massachusetts Bio

- succinic acid. Facility being built in Lake Providence, LA

NextCAT Catalysts Detriot Michigan for biodiesel production Novozymes Enzymes Davis California
Rennovia Chemicals Menlo Park California Segetis Chemicals Golden Valley Minnesota
Verenium Enzymes San Diego California

Vertichem Chemicals Toronto Ontario Hardwood chip feedstock

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 37 

## Value Chain for Advanced Biofuel Production
Company Type City State Note

Agradis Plant genomics La Jolla California F ounded by Synthetic Genomics. Sorghum genetics.

Agrisoma Biosciences P lant genomics Ottawa Ontario Agricultural yield improvement technology Allopartis Biotechnologies Plant genomics San Francisco California Protein development

Arisdyne Systems Technology Cleveland Ohio Hydrodynamic cavitation

Avello Feedstock conversion Boone Iowa Pyrolysis separation technology

Biocee equipment and technology Minneapolis Minnesota biocatalytic reactor

Biodico Equipment Santa Barbara California Construction/operation biorefineries. US Naval Base, Ventura County.

Biofine Related tech Gorham Maine Biomass conversion technology

BioFuels Energy B iomethane Encinitas California biomethane plant at San Diego Point Loma Wastewater Treatment Plant

Blendstar Distribution The Woodlands California Renewable fuel terminals

Chemtex Technology Wilmington North Carolina biomass processing technology. allows corn etoh facilities to be converted to cellulose. Working with COFCO. US production site in North Carolina in 2014.

Clean Energy Nat Gas

- Compressed and Liquefied Seal Beach California NG infrastructure and stations

Clean World Partners Natural Gas Sacramento California Organic Waste Recycling Center in Sacto will produce renewable natural gas to be used in place of diesel

Fluor Engineering Irving Texas Performs engineering services for companies like Joule and LS9.

Foster Wheeler Technology Geneva Switzerland Provides gasification technology for biofuels facilities, primarily using waste derived fuels. Diversified Energy Technology Gilbert Arizona Gasification systems

Green Gas International BV Biogas Palm City Florida methane gas to electricity

Greenline Industries Equipment Larkspur California Biodiesel processing machinery

Impe rative Energy Ltd Related tech Biomass boiler system

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 38

Inventure Technology Tuscaloosa Alabama Direct Extraction Technology; Univ Alabama

KBR Technology Houston Texas Offers technolog y development, plant scale

- up, e ngineering, procurement, construction, operation, and maintenance services for biorefineries

.

Lallemand Yeasts Milwaukee Wisconsin yeast and bacteria supplier

Linde Technology Munich Germany A gas and engineering group, Linde is involved in the design and construction of pilot scale facilities

Mendel Biotechnology Plant genomics Hayward California

Nexterra Syngas Vancouver British Columbia Biomass gasification with University of BC

Propel Fuels Distribution Sacramento California recently began owned and operated facilities in addition to leasing space at stations

ProTec Fuel Management Distribution Boca Raton Florida Ethanol marketing and distribution
Renmatix sugar refinement King of Prussia Pennsylvania

RenTech

- ClearFuels Biomass gasification Honolulu Hawaii biomass gasification. Paired with Rentech synthetic fuel technology, can produce renewable fuels.

Sierra Energy Syngas Davis California Biomass gasification. Project in Davis, CA.

Sylvatex Related tech San Francisco California Microemulsion technology, integrates alcohol & fatty acid surfactant into diesel SynGest technology San Francisco California biomass gasifier

Synthetic Genomics Plant genomics San Diego California Exxon's main biofuel investment

Tenaska Energy Distribution and marketing Omaha Nebraska

Verdezyne technology & chemicals Carlsbad California Enzymatic hydrolysis technology. Also producing chemicals

Ze

- Gen Syngas Boston Massachusetts Demo facility in New Bedford, Mass

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Advanced Biofuel Market Report 2012 39 

## APPENDIX F Job Data (2012-2015)

Reported Employment Predictions

Company Projected Online Capacity MGPY Direc t Construction Indirect Feedstock

Abengoa 2013 25 65 300 34 woody biomass

Aemetis 2015 11 50 woodchips, crop residue or algae

American Process & Cobalt 2012 0.89 20 80 38 animal fat, used cooking oil

BlueFire Renewable 2013 19 50 500

BP

- Vercipia 2015 36 200 700 MSW, ag residue

Cool Planet 2012 2 40 pre

- commercial thinnings

Diamond Green 2013 140 52 630 cellulose DuPont Cellulosic Ethanol 2013 27.5 60 corn stover

Dynamic Fuels 2010 75 65 250 wood waste

Enerkem 2013 9.5 40 130 energy cane

Enerkem 2014 10 40 130 animal fat, used cooking oil

Fiberight 2013 3.6 38 lignocellulosics,corn stover, switchgrass

Fulcrum 2014 10 50 MSW

Gevo 2012 18 33 MSW

Gevo 2013 37 42 MSW

INEOS Bio 2012 8 60 MSW

KiOR 2012 11 60 100

Mascoma

Valero 2014 40 50 150 700 Hardwood pulpwood

POET 2013 25 40 350 corn cobs

RenTech 2015 23 83 1000 300 woody biomass
Sapphire Energy 2014 1 30 algae

Sundrop Fuels 2014 50 150 1150 woody biomass

US Envirofuels 2014 36 60 sweet sorghum and
sugarcane

ZeaChem 2014 25 65 188 242 planted trees and wheatstraw

### 40 

# A PPENDIX 

# G International Companies

Company Country Plant Location(s) Fuel Type Feedstock Description Abengoa Spain US, Brazil, Spain, France, Holland Biodiesel, Ethanol Sugar Cane (Ethanol); Vegetable Oils (Biodiesel); Algae (R&D) With 14 plants in 5 different countries and a global production capacity of 842 MG per year, Abengoa Bioenergy is one of the world's largest biofuel producers. It produces 400 MG in Spain, France and Holland, 370 MG in the US, and 62 MG in Brazil. Abengoa also continues to invest heavily in R&D. While its current bioethanol facilities use sugar cane and corn, it also began investing in algae biofuels in 2009 and in 2011, began construction on an algae pilot facility in Cartagena.

Amyris US, Brazil San Martino, Brazil Renewable Diesel; Jet Fuel Sugar Cane (*Amyris' synthetic biology platform is multi feedstock) Amyris produces renewable diesel in Brazil and has a US subsidiary, Amyris Fuels, to distribute its product to North American markets. At present, Amyris operates pilot and demonstration facilities and is building a commercial scale production facility in San Martino, Brazil. Furthermore, Amyris is partnering with Total to develop an alternative aviation jet fuel to be sold in US, European and Brazilian markets.

Beta Renewables Italy Crescentino, Italy; North Carolina, US Ethanol Wheat Straw Beta Renewables is a $350 million joint venture between Chemtex and TPG. The company operates a pilot plant in Tortona, Italy (2009) and plans to start commercial scale production in 2012 at its 20 MG plant in North Carolina. Beta Renewable's PROESA technology has been chosen by multiple leaders in the biofuel market, including Genomatica, Amyris and Codexis.

Borregaard Norway Sarpsborg, Norway Ethanol Woody Biomass Borregaard produces advanced biochemicals, biomaterials and bioethanol that can replace oil-based products. In 2011, the company had a production capacity of 17-19 million liters at its Norway plant. Extensive investment in research and development combined with sales offices in 17 countries throughout Europe, the US, Asia and Africa makes Borregaard well positioned to support the growing global biofuel market.

Bunge Bermuda (HQ in US) Sao Paulo and Minas Gerais, Brazil (8 plants) Ethanol (*markets biodiesel) Sugar Cane (ethanol) Bunge operates eight sugarcane mills in Brazil with a combined capacity of 1.1 million cubic meters per year. These mills have access to export logistics systems, positioning Bunge to support the growing global biofuel market. In addition, Bunge also participates in the biodiesel industry, normally as a minority investor in facilities in Argentina, the US and Europe. Facility with Solazyme coming online in Moema, Brazil in 2013 with capacity of 100,000 metric tons of oil. Ensyn US Ontario, Italy, Malaysia RTP Liquids Biomass Ensyn Corporation produces over 30 million gallons per year of liquid fuels that can be upgraded to transportation fuels. Ensyn is currently initiating a significant build-out of capacity in North America and internationally for the production of Renewable Fuel Oil (RFO). Furthermore, the company has developed a key strategic alliance with UOP, a Honeywell Company and Chevron Technology Ventures.

Inbicon DONG Denmark Kalundborg, Denmark Ethanol Wheat Straw Inbicon invests in R&D and currently operates a large scale pilot plant in Denmark that is capable of producing 8,250 tonnes of biofuel per year, Inbicon has also engineered a model that can convert about 50 MT/hr of straw or stover into 20 MG of ethanol and is working to license their process for world markets. 

### E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012

### 41 LanzaTech US Soperton, Georgia Ethanol Multi (wheat straw, corn stover, miscanthus) Founded in New Zealand in 2005 and headquartered in Chicago, Illinois, LanzaTech has developed a gas-liquid fermentation process that produces fuels and chemicals from gas resources. LanzaTech is active in the US, China and New Zealand and is expanding to commercial scale through its Freedom Pines Biorefinery in Soperton, Georgia.

Neste Finland Porvoo, Finland (2 plants); Singapore; Rotterdam, Netherlands Biodiesel, Jet Fuel Vegetable Oils Annual production capacity of 2 million tones biodiesel. The company sells its renewable fuels to mainly European and US markets but also has an established network of oil retail stations throughout Europe (819 outlets in Finland, 326 outlets in Russia, the Baltic states and Poland). To date, the company has invested a total of EUR 1.5 billion in expanding its biodiesel production capacity and recently commissioned its fourth plant in 2011. Its four plants are capable of producing both renewable diesel and aviation fuel. Petrobras Brazil Candeias (state of Bahia), Quixadá (state of Ceará), and Montes Claros (state of Minas Gerais Ethanol; Biodiesel Multi Feedstock (biodiesel); Sugar cane (ethanol) Petrobras has three biodiesel plants in Brazil with total production capacity of 170,000 cubic meters per year. In addition to producing biodiesel, Petrobras is active in the ethanol market and aims to export 4.2 million cubic meters of ethanol in 2013. Their ethanol production model is based on partnerships to build Bioenergetic Complexes (CBio) which will produce electric energy from burning sugarcane bagasse. Petrobras is particularly well positioned to support global biofuel market through its efforts to expand its ethanol pipeline systems, which will connect refineries to the Ilha d'Águai n Rio de Janeiro, and the São Sebastião terminal, in São Paulo.

Praj Industries India India, Malawi, Thailand, Louisiana, US, El Salvador, Sri Lanka Biodiesel, Ethanol Sugarcane, beet, grains (wheat, corn, sorghum, broken rice, and triticale), tubers Praj is a global Indian company with offices in India, Europe, Asia, Africa and North America. It has one of the largest resource bases in the industry with active ethanol plants in multiple countries. Praj is currently aiming to scale up its advanced ethanol production

Statoil Norway Mestilla, Lithuania Biodiesel Rapeseed, cereals, sugar cane, algae (R&D) Having been active in the biofuel market since 1999, Statoil is an established player in the global biofuel market. Statoil is responsible for marketing and distributing the biodiesel from the Lithuanian Mestilla plant, which has an annual capacity of 100,000 tonnes. Today Statoil it sells its bioethanol product at 1300 stations in six countries – Norway, Sweden, Denmark, Lithuania, Latvia and Poland. Also in 2007, Statoil entered into a long-term strategic agreement with the Brazilian oil company Petrobras in an effort to develop the international value chain for biofuel, both in production and trading. In 2010, Statoil became the first company in the world to offer second generation biofuels to a national network.



### The methodology E2 used to develop this list is detailed in Appendix H. E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012

## Appendix H E2 Methodology to develop lists and production numbers E2 | Environmental Entrepreneurs

Advanced Biofuel Market Report 2012 42 Appendix A Appendix B Appendix C Appendix E Appendix G

Biodiesel Facilities Potential Producers Supply chain International
From NBB, take RFS2 registered biodiesel Began with E2 data from 2011 report Began with E2 data from 2011 report Began with E2 data from 2011 report Reviewed all international companies with facilities registered with RFS2

Feedstock carbon intensity identified according to CARB's pathways EPA list for RFS2 production data Updated with production information from Hart Energy, EPA and financial data from Cleantech Group Went through all company websites and reviewed recent press releases Based on existing facilities and partnerships, developed subjective list of companies

Filtered out facilities with feedstock less than 50% reduction,but left "MultiFeedstock", for their ability to blend low carbon alternatives Merged previous E2 list with Hart Energy list of facilities Changed company projections based on recent press releases Added companies from hundreds of press releases Qualitative list of companies that could have a strong U.S. presence

Contrasted with Biofuels Digest database Contacted companies directly to verify data Reviewed websites and contacted companies for notes and data

Went through all company websites and reviewed recent press releases Assumed zero production for companies without any data verification, or public signs of progress or financing
Contacted companies directly to verify data

Projects for which there are not concrete plans, but could still happen are listed under Potential Producers

Merged with information from Cleantech Group on investment