Craig Conner Vice President, Finance Baard Energy, L.L.C.

1. Craig Conner Vice President, Finance Baard Energy, L.L.C. Coal/Biomass to Liquids Facility

2. Baard Company Credentials Baard Generation LLC 20 years experience in the development of power plants in the USA & Canada: • Three 16 MW wood-fired QF projects, Michigan and Pennsylvania • Windsor Power – 110 MW Natural Gas • South Point AZ – 550 MW Natural Gas • Wyandotte MI – 572 MW Natural Gas Baard Renewables LLC Develops ethanol and biodiesel facilities in the USA • Ravenna, NE – 88 million gallons/yr • Coshocton, OH – 55 million gallons/yr Baard Clean Fuels LLC Fischer Tropsch Project Developer • Wellsville, Ohio - 52,500 bpd FT project under development

3. Project Overview Description • Large scale coal to liquids (CBTL) project to be developed in the US, on the Ohio River at Wellsville, Ohio. • 52,500 bpd capacity, being developed in three 17,500 bpd phases, producing diesel/jet fuel and naphtha/LPG. Technology • Using Fischer-Tropsch (FT) technology and advanced carbon capture and sequestration (CCS) techniques, ORCF will utilize coal/biomass feedstocks to produce economically competitive transportation fuels while sequestering approximately 70% of the CO2 produced by the process. Sponsor/Developer & Partners • John Baardson and the Baard Energy team, responsible for developing several successful power plant and alternative fuel projects since the 1980’s. • European American Equities, Ltd • Leading engineering and construction partners – Sinopec, Shell/Uhde, Exxon/Mobil, Syntroleum, Aker Solutions. • Financial and governmental support from Ohio state and local authorities. • AFL/CIO backing.

4. Project Status • Options on land secured. • Major environmental construction permits completed for all phases. • Commence Discussions with industry-leading partners for: • FEED (front end engineering and design) • EPC (engineering, procurement and construction) • Coal/biomass supply being finalized. • Strong support from: • State and local authorities • Labor unions • State of Ohio incentives

5. Permitting Status

6. Primary Managing Contractor (Overall construction/integration responsibility) Diesel / jet fuel Coal Naphtha Licensors/Engineering Gasifier Gas clean-up Conversion Process LPG Biomass / waste CO2 FEED Engineering and Package Design Manufacturing Assemble an Experienced EPC Team

7. Strong Support • State, local and federal entities strongly support project through grants, low cost financing options. • $4 Billion inducement in Air Quality bonds which carry exemptions on real and personal property, sales, use and franchise taxes. • CCPA (Columbiana County Port Authority) has proposed up to $500mm in tax exempt financing for certain infrastructure elements of the project. • DOE (U.S. Department of Energy) has provided grants for CCS (Carbon Capture and Sequestration)/EOR (Enhanced Oil Recovery) tests. • Federal ITC of up to $195mm available under §48B of Internal Revenue Code. • AFL/CIO Building and Construction Trades behind the project – Strong local and national Trade Union support.

8. Leverage existing CTL technology to produce competitive products Use proven FT technology Use advanced CCS techniques, Use coal and biomass to meet expected demand ORCF is expected to be a low emission source of transportation fuels. Use Domestic Resources to meet USA demand The USA is the world’s largest consumer of crude oil Approximately 70% of US consumption is for transportation fuels, principally in the form of gasoline and diesel. The USA has the largest coal reserves in the world. Biomass is available in sufficient quantities Capitalize on expected oil price escalation and increased demand Developing country demand has driven the price of crude oil to new highs; ($137/bbl in July 2008, before the economic slowdown). Crude oil prices in 2009 have again begun to rise, ($79.00/bbl) Project Strategy

9. USA Has Abundant Resources Crude Oil Equivalent (COE) Domestic Reserves total 1.9 Trillion Barrels COE (crude oil equivalent) Less than 0.7 trillion barrels remain in the Middle East 1 trillion barrels (shale) 800 billion barrels of FT (coal) 0.15 billion barrels (pet coke) 22.7 billion barrels oil reserves >32 billion barrels of oil (EOR) Coal Deposits Shale Deposits

10. Ohio River Clean Fuels Location Ohio River location; within reach of significant reserves of Ohio coals and alternative feedstock. Existing River terminal for barge loading/unloading (liquid/bulk). Strategically located on existing rail with access to dense manufacturing markets. Centrally located in five of the six major USA population markets. Phase I diesel volumes are less than 10% of local demand. Petroleum & Natural gas pipeline near property. International maritime access through Gulf of Mexico via Ohio/Mississippi/Tombigbee systems. Neighboring business synergies.

11. Processes Ancillaries

12. Feedstock Supply Coal • ORCF can use inexpensive high sulfur coal that has a limited market among traditional utilities. • ORCF expects to: • secure long term reserves and use contract miners for extraction (and/ or) • sign a long-term supply contracts with sources to provide Illinois and Ohio coal on favorable terms. Biomass • ORCF process can use up to 30% of biomass - logging debris or other non-food harvested biomass, as feedstock, depending on economics. (nominal use: 20%) • ORCF commissioned Fountain Forestry to evaluate the availability of wood feedstocks; sufficient wood supply to satisfy ORCF’s needs, but that infrastructure to do so was lacking. Required infrastructure is nominal and technology is available – wood chippers and trucks.

13. Combining Coal and Biomass Produces a Clean, Superior Alternative Fuel • Pure biomass conversion is very costly • CBTL is a platform that leverages greater use of Biomass • CBTL will greatly reduce overall GHG emissions than using biomass alone • Gasification of biomass greatly improves the thermal efficiency of BTL in CFB • CBTL Diesel and Jet Fuels are superior to other forms of alternative fuels (Biodiesel or Ethanol) DOE/NETL report-2009/1349, January 14, 2009 “Affordable, Low-Carbon Diesel Fuel from Domestic Coal and Biomass” Thomas J. Tarka, P.E.

14. Biomass/Coal Preparation Biomass Preparation Pretreatment For Hydrolysis Gasification FT Diesel 123,600 Btu/gallon FT Synthesis Cellulolysis (Enzymes) To Sugar Hydrotreatment To FT Liquids Sugar/Lignin Separation Ready to Use Blend Ethanol76,000 Btu/gallon Fermentation Distillation To Ethanol Blend with Gasoline Biomass Gasification is a Simple Cellulosic Process Petroleum Reference Gasoline ~ 115,000 Btu/gallonDiesel ~ 130,500 Btu/gallon

15. Project Parameters 20 wt-% Biomass Basis

16. Block Flow Diagram for Ohio River Clean FuelsCarbon Capture Focus – Rectisol (steam stripping) and Oxygen-enriched Burners Novel carbon-management design greatly enhance Life-cycle CO2 emissions compared to petroleum-based fuels

17. GHG Emissions Calculations - Emission SourcesWell to Wheel • Resource extraction and production • CO2 adsorption credit for biomass re-growth • Resource and product transportation emissions • Conversion and refining • CO2 sequestration credit • End use combustion • Potential credit for clean power production

18. FT Fuels have cleaner tail pipe emissions, Products readily absorbed by neighboring infrastructure and markets Jet, Diesel, Naphtha CBTL plant emissions are vastly superior to traditional coal practices Design criteria included optimization of carbon capture Cobalt versus Iron Catalysts Rectisol steam stripping CO2 capture with oxy-combustion Plant siting near biomass, coal and depleted oil reserves ORCF Target Design Parameters Reduced Greenhouse Emissions and Criteria Pollutants

19. Carbon Management Strategy • ORCF will proactively manage the CO2 emissions from the facility in order to minimize risk from future carbon legislation and capitalize on incremental revenue opportunities • Approximately 10,700 tons of CO2 per day captured from first phase • Options being evaluated include • Sale of CO2 for enhanced oil recovery (EOR) at nearby oil fields • CO2 sequestration in saline aquifers • EOR field trial at Eastern Ohio • Ohio Geological survey estimates over 1.1 billion barrels of oil remaining • Single well CO2 injection test (‘Huff & Puff’) completed in August 2008, with highly promising results (58% increase in production rate over baseline - no CO2 escape detected) • Next phase is multiple well pattern injection test to be funded by ORCF during FEED work; federal matching funds for this phase potentially available

20. ECOF in serious decline; cumulative production at about 7% of estimated reserves One billion barrels will likely remain when operations cease under conventional production Single-well injection test conducted August 2008 Primary goals were to assess: Geological acceptance of CO2 in ECOF matrix CO2 injection rate Migration of CO2 relative to the wellbore Effectiveness of the CO2 in mobilizing residual oil Baard Energy EOR Field WorkEast Canton Oil Field, Stark County, Ohio (ECOF) ~ 40 miles

21. Pending Activities • Refresh Phase 1 FEED Engineering • Review pricing and construction estimates • Issue RFP to Sinopec for FEED • Commence FEED engineering • Establish final design basis • Secure technology licenses • Concurrent Owner Development Work • Complete Project Labor Agreement (National Construction Agreement) • Secure remaining land options. • Execute EPC contracts. • Complete CO2/EOR pattern injection test. • Finalize feedstock supply, and product off-take agreements/hedges.

22. Questions and Discussion