1. Track 5 – Advances in BioprocessingTransforming the Ethanol IndustryThe Bridge to Biomass Ethanol Lawrence J. Russo, Jr. Technology Coordinator Office of the Biomass Program Energy Efficiency and Renewable Energy U.S. Department of Energy The World Congress on Industrial Biotechnology & Bioprocessing April 21, 2005

2. Strategic Direction EERE Portfolio Priorities • Dramatically reduce or even end dependence on foreign oil • Reduce burden of energy prices on the disadvantaged • Increase the viability and deployment of renewable energy technologies • Increase the reliability and efficiency of electricity generation, delivery and use • Increase the efficiency of buildings and appliances • Increase the efficiency/reduce the energy intensity of industry • Create the new domestic bioindustry • Lead by example through Government’s own actions

3. Sugar Platform Fuels Chemicals & Materials Research Focus Advanced Biomass R&D Sugar Feedstocks, Lignin Intermediates Residues Combined Heat & Power Biomass Clean Gas Thermochemical Platform Conditioned Gas Bio-oils Systems Integration = Biorefineries

4. WBS or Pathways ? YES ! P A T H W A Y S

5. Pathway Link to Resource Base DOE/USDA Billion Ton Vision Paper 1,2 6,7 3 4 “Pathway” Identification Numbers 5

6. Agricultural Sector Biorefinery Pathways Complete systems level demonstration and validation of all technologies to improve corn wet mill facilities using corn grain feedstock Complete systems level demonstration and validation of all technologies to improve corn dry mill facilities using corn ( and other ) grain feedstock Complete systems level demonstration and validation of all technologies to improve natural oil processing facilities using oil crop feedstock Complete systems level demonstration and validation of all technologies to improve processing facilities using agricultural residue feedstocks Complete systems level demonstration and validation of all technologies to improve processing facilities using Perennial Crops Conversion Pathway Options Under Industrial Partners Program “A” Biorefinery Pathway Feedstocks Consideration ( each has a Milestones B Milestone - cost target ) • ADM • NCGA • Cargill • NCGA • Aventine • Nature Works, LLC · Residual Starch Conversion · Fiber Conversion Corn Wet and Dry Mills · New Fractionation Process Grain · Products from C 5 / C 6 Sugars · Products from Oils • Abengoa • Broin • Dupont · Residual Starch Conversion · Other DDG Conversion · New Fractionation Process Grains · Products from C 5 / C 6 Sugars Oil Crops • ADM Oil · Products from Oils Crops · Biomass Sugar Production • Abengoa • Dupont • Cargill • Nature Works LLC Agriculture Residues · Corn · Products from C 5 / C 6 Sugars · Products from Lignin Stover · Biomass Gasification · Small Grain · Products from Synthesis Gas Straw · New Fractionation Processes · Rice Straw · Products from New Process Intermediates · Biomass Sugar Production Perennial Crops · Products from C 5 / C 6 Sugars None · Products from Lignin · · Grasses Biomass Gasification · · Products from Synthesis Gas Woody · New Fractionation Processes Crops · Products from New Process Intermediates · New Consolidated Processes

7. Conversion Pathway Options Under Program “A” Biorefinery Pathway Feedstocks Consideration ( each has a Milestones Partners B Milestone - cost target ) Complete systems level demonstration and validation of all technologies to improve corn wet mill facilities using corn grain feedstock Complete systems level demonstration and validation of all technologies to improve corn dry mill facilities using corn ( and other ) grain feedstock Complete systems level demonstration and validation of all technologies to improve natural oil processing facilities using oil crop feedstock Complete systems level demonstration and validation of all technologies to improve processing facilities using agricultural residue feedstocks Forest Sector Biorefinery Pathways Pulp and Paper Mills · New Fractionation Process for • Georgia-Pacific • Agenda 2020 Hemicellulose Removal · Wood · Products from C 5 / C 6 Sugars · Mill · Black Liquor Gasification Wastes · Products from BLG Syn Gas Forest Product Mills • None · Wood · Pyrolysis Oil Upgrading · Mill Wastes · Biomass Sugar Production · Products from C 5 / C 6 Sugars Forest Residues · Logging • None · Products from Lignin Residues · Biomass Gasification · Fuel · Products from Synthesis Gas Treatments · New Fractionation Processes · Products from New Process Intermediates · Non-Forest Wood Wastes Biomass Sugar Production • None · Products from C 5 / C 6 Sugars · MSW & · Products from Lignin Urban · Biomass Gasification Wood · Products from Synthesis Gas Wastes · New Fractionation Processes · Products from New Process Intermediates

8. Independent Commercial Developments Technical Risk Minimized Products Solicitation Platform R&D CRADA’S & Projects Biorefinery Solicitation 2008 Solicitation Concept Development Concept Proof Technical Viability Commercial Viability Commercial Sustainability Permitting Engineering Construction Operation Commercially Viable Demo (Demonstration Scale Plant) Technology Development (Bench Scale) Core Research & Development Proof of Concept (Pilot Scale) Loan Guarantee and/or Risk Mitigation 100% / 0% 80% / 20% 50% / 50% 20% / 80% Stage Gate & Investment

9. Bio-based Products Progress 2002 Integrated Biorefinery Solicitation Planned 2008 Biorefinery Solicitation Work Proprietary Oil-based Product PLA (OIT) Soy oil 2-cycle fuel 2004-2005 Products Solicitation Work Possible Future Products Solicitation Note: Many projects in Products area have been delayed due to earmark levels, including placement of contracts from 2004 Solicitation, 2005 and 2009 Targets at risk.

10. Planned 2008 Biorefinery Demonstration Solicitation 2004/2005 (funding ?) Products Solicitation Integrated Biorefinery Progress 2002 Integrated Biorefinery Solicitation Planned 2007 Pretreatment/Enzyme Integration Solicitation 2004 Thermochemical Solicitation Possible Future Biorefinery Solicitations Number of Biorefinery Elements Enabled Pathways

11. Biomass Funding Today Earmarks and Total Funding • Three-fold increase in earmarks since 2000 • Earmarks have grown from 18% to over 40% of the total funding • Real decline in the available funds used in support planned R&D and biorefinery support • Objectives can not be achieved if trends continue to FY06 and beyond Legend Earmarks Total Funds Available for Planned Activities Millions of Dollars per Year 94 80 81 74 60 ? 52 42 39 35 30 18 13

12. Comments and Questions