US Fuel Ethanol Industry – A Current Snapshot Presented by Greg Krissek September 26, 2007

1. US Fuel Ethanol Industry – A Current Snapshot Presented by Greg Krissek September 26, 2007

2. U.S. Ethanol Plants As of January 2007 In operation (113) 5.48 bgy Construction (65) 5.35 bgy

3. What we’ve been expecting - Ethanol Production Growth in the U.S. through 2008 Requires ~ 4 billion bushels of corn Average growth = 2950 mmgy gal./yr. Average growth = 770 mmgy gal./yr. Average growth = 75 mmgy gal./yr.

4. What others have been projecting - Ethanol Production Growth in the U.S. 2008-09 • Renewable Fuels Association – 9/14/07 • 129 operating plants – 6.8 BGY capacity • 85 construction projects – 6.6 BGY capacity • Pro Exporter – 8/20/07 • capacity as of: • 12/31/07 - 8.5 BGY • 6/30/08 - 10.5 BGY • 12/31/08 – 11.5 BGY

5. Kansas Update

6. Source: American Coalition for Ethanol

7. Current Congressional Activity for Energy Legislation • Senate • Approved legislation with new RFS starting at 8.5 BGY in 2008 and growing to 36 BGY in 2022 (advanced biofuels after 15 BGY in 2015) • Increased CAFÉ provisions but unable to approve a tax title • House of Representatives • Approved energy legislation without a fuels title (no RFS) • No provision for CAFÉ • Awaiting low carbon standard legislation • White House • 2007 State of Union address called for 35 BGY by 2017 • Substantive, procedural and calendar issues slowing process- and next is the election cycle

8. Source: Chicago Board of Trade

9. With EPAct of 2005, the Price Relationship of Ethanol is now to RBOB Gasoline: currently inverted (ethanol price below RBOB) even with high crude oil prices 10/06 Begin winter contracts prices narrow 4/07 Begin summer contracts prices invert Price relationship $.25/gal or higher Source: Chicago Board of Trade

10. Today nearly fifty percent of U.S. gasoline is blended with ethanol Source: Pro Exporter Network

11. Current Demand(6.2 BGY) and Potential Growth(8.6 BGY) of U.S. Ethanol Usage to E10 – June 2007 PADD 4 RFG – 50 MGY; Voluntary 80 MGY New E10 – 370 MGY PADD 2 RFG - 500 MGY; Voluntary 1.6 BGY New E10 – 1.7 BGY PADD 5 RFG – 1.0 BGY Voluntary 200 MGY New E10 – 1.2 BGY PADD 1 RFG – 1.7 BGY Voluntary – 300 MGY New E10 – 3.8 BGY PADD 3 RFG - 700 MGY; Voluntary 40 MGY New E10 – 1.5 BGY Source: ProVista Renewable Fuels Marketing

12. Beyond E10 - E85 and FFV’s – over 30 models available today

13. FLEX FUEL (E85) VEHICLES Potential is growing rapidly

14. Kansas Biofuels Stations

15. The Face of Investors is Changing • 1995 - 2005 – Farmer-owned cooperatives and LLC’s • Pool of investors able to raise more capital to build larger plants • Reduced risk • Plant able to ride out market fluctuations because of corn-delivery agreements with farmer/investors • Today - Larger investors • Market stabilization draws big investors • Potential returns • Take advantage of economy of scale • Banks being selective

16. Energy Prices Lead Plant Designers to Evaluate Alternative Energy Sources • Land Fill Gas • Corn fiber • Biomass • Ag Residue • Solid waste • Wood chips • Waste steam … but reliability, consistent availability, conversion technology and cost are crucial

17. Process Optimization

18. Industry Challenges and Opportunities • Challenges • Tight margins for ethanol plants • Fuel terminal infrastructure and distribution shortfalls • Vehicle engine technology • Battling in the court of public opinion • Opportunities • Low prices cure low prices • Blender pumps and high blend fuels • Political support remains strong • Additional feedstocks

19. Questions? Greg Krissek 316-977-6549 gkrissek@icminc.com Western Plains Energy - Campus, KS