www.agrisoma.com
Agrisoma: Creating Sustainable Energy Solutions Founded in Agriculture Founded in 2001, we are a Canadian agricultural biotechnology company operating for the last decade in Saskatchewan as our home base We operate all R & D out of Saskatchewan and maintain Administration, Government and Regulatory Affairs Operations in Ottawa Our core technology is called ETL, which is a means to introduce new traits into crops, our primary focus is Brassica oilseeds Our vision is to create a new industry in industrial oilseeds that offer growers new choices in crops that maintain performance in the tough conditions of the Southern Prairies We have been working to establish the foundation and fundamental strengths of this new value chain www.agrisoma.com 2
Industrial Oilseeds: A Canadian Solution Advanced Crop Platforms Non-food, drop-in crops that produce optimized oil in an environmentally and economically sustainable fashion Underpin a Robust Supply Chain Commodity scale production of economical and efficient feedstock for biofuel manufacturing A Winning Synergy Provides aviation a scalable, sustainable and economical feedstock Enhanced rural economics with quantifiable environmental benefits Utilizes existing infrastructure and capacity to get to scale 3
Why Oilseeds? Transportation Energy Demand United States Total per annum Liquid Fuel Consumption Biofuel Alternatives 140 B gallons 40 B gallons 16 B gallons Ethanol Biodiesel, Green Diesel & Biojet >200 B gallons >3 B gallons Non-Food Green Diesel and Biojet 4
Energy Policy and Renewable Fuels: RFSII in USA 36 B Gallons Mandated Diesel qualifies as an advanced biofuel and is capturing mandate Non-Food oil crops represent the primary growth market for fuels Obtaining RFS II status for Carinata gives access to US market 5
Why Biojet? Global GHG Reduction Goals for Aviation: Carbon neutral growth from 2020 50% emissions reduction by 2050 Global Airline Agreements: Industry-wide sign on to goals IATA, CAAFI, ICAO driving efforts Proactive Efforts to Develop Global Value Chains Airlines, OEMS, agencies all involved 6
A United Industry: 50% GHG Reduction by 2050 Biojet is a Primary Pillar in this Strategy 7
Our Strategy? Lead The Way and Show How to Do It Demonstrate production capacity 2012 season to spread crop across broad acres Demonstrate product qualities and advantages worked with two manufacturers to make biojet Build momentum and establish global leadership work with airlines and NRC to demonstrate leadership in clean aviation Build a viable value chain with critical partners to ensure a long term viable industry work with partners to ensure all benefit on a long term basis
Demonstrating Production Capacity 2012 Commercial Launch Rolled out 6,700 acres of targeted commercial production in S. Sask and S. Alberta Typically hot and dry and challenging for canola production Provides an excellent rotation crop for wheat and fallow land 9
This is bigger than I expected Seedbed preparation key, seeding depth, burndown Potentially impacted by cool spring Regardless of conditions, crop took off once the heat hit in July 10
Drought tolerant Montana State University, <2 inches of rain - Very impressive Assiniboia, SK dry conditions, canola next door burning up 11
Drought tolerant Climax, SK low moisture conditions 1st field, stubble land / low input; 2 nd field, fallow land / regular inputs 12
Ability to compensate Carmanguay, AB seeding issues 13
Field Performance and Yield 14
Resonance Crop Walk Series Farmer focused, field walks of production sites Opportunity to meet with the producer and see real world results Total summer tours reached >500 growers 15
Harvest at Scale: Strong Performance and Oil Yield Grain Harvested, Consolidated, Processed Into Feedstock and Fuel 16
Crop Observations and Results Thrives in hotter temperatures, less flower and pod heat blast than seen in B. napus. Vigorous growth once established, highly branching growth filled in even with poor stands. Key focus is on stand establishment (seeding date, depth, herbicide program, fertilizer). Harvest planning a must. Plan on being last off. Yields ranged from 10 bu/ ac to a high of 42 bu/ac. Resonance AAC A100 compared well with hybrid canola side by side. Record hail took their toll on crops however carinata however stood up relatively well. 60% of growers would grow B. carinata in 2013, 36% of growers might grow again undecided largely due to harvest challenges
Biojet Manufacturing: Resonance Carinata Biojet Exceeds ASTM Specs Carinata Biojet Analysis 1 Match to ASTM Specifications 2 Manufacturer 3 Agrisoma RediJet Carbon Distribution HRJ Renewable Green Jet 1 GC/MS analysis of biojet fuel carbon distribution of parrifins, cyclo- and iso-parrifins and aromatic content. 2 Comparison to ASTM D7566, JP-8 and Military 83133G specifications for freeze point, flash point and energy density. Analyses performed by Canadian DND-QETE and by the U.S. Air Force Research Laboratory (ARA) and commercial fuel certification analysis (UOP). 3 Manufacturing processes include ARA CH process and UOP HRJ process that produce Drop-in fuels. 18
Resonance Biojet Emissions particulate emissions, including aerosols of black carbon, sulphates and by-products of the combustion of aromatic compounds, are significantly lower In-flight trailing emissions testing in six independent flight segments using Honeywell Green Jet Fuel including above the 50/50 blend ratio 1 1 As reported by the National Research Council Aerospace at the Farnborough Airshow July 9, 2012 19
Building the Market: Demonstrating Canadian Strengths in Production and Supply Management
Biojet Above the Fold 21
How Do We Get From Here To There? There Here Industrial oilseeds leverage the existing agricultural infrastructure to achieve scale and suitable economics for aviation within a secure and stable low cost chain At present, no other potential feedstock can rely on this infrastructure to achieve scale and economics needed for financial viability 22
Resonance Energy Feedstock: Building a Feedstock Supply Chain Risk Management Tools Seed Production Processing Fuel Commercial Contracting Seed Treatment Farm Credit Rail Production Flights Retail On Farm Storage Meal Sales Oil Delivery Seed Certification Crop Insurance Crop Protection Fuel Harvest Shipping Testing Regulatory International Shipping This Value Chain has Been Established at Commercial Scale: Focus will be Matching Demand with Supply Demo & Emission Testing 23
Our Future: Breeding & Trait Stacking Breeding: Largest B. carinata collection in the world, over 1000 accessions Hybrid development, extensive testing program with over >50 trials, winter and summer nurseries Molecular markers, haploidy, hybrids, genome sequencing, advanced breeding tools Traits: Unique trait stacking ability: proven chromosome engineering technology (Engineered Trait Loci - ETL) Extensive trait collection related to oil and yield 24
Carinata ETL Lines: 6 Trait Stack Seed Increase Underway for Winter Trials in November 25
What Has Been Accomplished - 2012 Demonstrated production potential across major target geography of Southern Prairies from 1 site in 2011 to 40 unique locations in 2012 Paid all growers, moved grain off the farm and consolidated grain for processing Processed grain at commercial hexane facility deriving oil and meal products Used feedstock with the two most advanced biojet manufacturing processes Demonstrated the emissions and performance of Resonance based fuels in modern aircraft Set a new standard for Resonance that is globally recognized as the preferred feedstock for emerging biojet manufacturing 26
Next Steps - 2013 Building demand for Resonance & matching production forecasts with demand from biojet manufacturers Avoid overproduction and maintain pricing Link supply and demand Working with biojet manufacturers to establish off takes, capacity and understand volume needs for feedstock and logistics paths Seeking to establish biojet manufacturing in SK that would need 1MM acres plus of production Working with government for policy leveling to ensure biojet and biodiesel get similar treatment in policy incentives Blenders tax credits and policies that level the playing field RFS II qualification and EU RED 27
The Value Chain is More Than Fuel.. 28