by Charles Bensinger Vice President EDDORADO BIOFUELS LLC

1. A New Generation of Biofuels for New Mexico WORKFORCE TRAINING FOR THE GREEN ECONOMY Santa Fe Community CollegeJune 25, 2008 by Charles BensingerVice President EDDORADO BIOFUELS LLC

2. Common Biofuels Myths Myth #1: We have to choose between biofuels and food. It’s Food vs. Fuel. Fact: A recent USDA analysis concluded: given an anticipated 40% increase in world food prices, increased demand for biofuels feedstocks is responsible for only 3% of that increase.

3. Myth #2: Corn diverted to make ethanol is depriving people of critical food products. Fact: Most U.S. corn is grown for animal feed. Ethanol is produced from field corn, not sweet corn. Field corn is indigestible to humans in its raw form. Fact:87% of U.S. corn is fed to animals. 1.5% is used for cereals. Human uses account for about 10% of US corn use.

4. Fact: Alcohol is not protein. When field corn is processed for ethanol, only the starch portion is used to make the alcohol. The fat, protein, vitamins, minerals and other vital nutrients are passed along to the animal feed co-product known as “Distillers Grains.”

5. The U.S. Food Dollar Food input is 19¢ labor is 38¢ Marketing is 43¢

6. Real Causes of Food Crisis • Hedge fund commodities speculation on grains resulting from Australian drought • Hedge fund speculation on crude oil, forcing crude oil prices to escalate • Bad weather and weak dollar • 200 million more meat eaters in Asia • Increases in labor costs • Increased biofuel feedstock production

7. If you have to single out the greatest contributor to higher prices, it is ENERGY. Fuel contributes cost to food at every step: growing , production, packaging and shipping-- Ed Maxiner, editor of the Kiplinger Agricultural Journal Oil industry insiders recently noted that commodity speculation likely accounts for 25% to 50% of the price of fuel. That’s $1 to $2 per gallon.

8. The Food AND Fuel Crisis Both food and fuel are critical components of survival. Both must be affordable and accessible to all. Really, we are now confronting a Food AND Fuel Crisis. We need to regulate financial commodities speculation and immediately begin to develop local food and fuel production.

9. The Benefits of Biofuels • U.S. ethanol production has reduced foreign oil imports by 140,000 barrels/day, representing a savings to American motorists of $6.6 billion a year. • Merrill Lynch, financial analysts, concluded that ethanol is helping to keep gasoline prices 15% to 27% lower than they otherwise would be.

10. Benefits of Biofuel Production in New Mexico • New job creation • Pride in developing new advances in use of unconventional feedstocks • Greater fuel self-sufficiency • Lower fuel costs • Bolstering of rural economies • Conversion of “waste materials” to value- added products

11. Potential NM Biofuel Feedstocks • Sweet Sorghum: 500 – 1,000 gals/acre • Wild cattails: 1,075 gals/acre • Sugar beets: 400 -770 gals/acre • Buffalo Gourd: 900 gals/acre • Jerusalem artichokes: 550 -750 gals/acre • Algae: 5,000 – 30,000 gals/acre • For comparison: corn is 200-400 gals/acre; soy is 60 gals/acre

12. Regional Algae to Biofuel Projects New Mexico Center for Excellence in Carlsbad uses open pond system

13. Valcent Vertigro SystemEl Paso, TX • Valcent “Vertigro” algae vertical bag greenhouse growing system • Claims potential of 30,000 gals of biodiesel/acre

14. Colorado State University Algae Bioreactor

15. VM Technology, Santa Fe Algae Production Field Bioreactor

16. Eldorado Biofuels, Santa Fe Research and Development project underway in Santa Fe with intention to: • Develop low-cost, high efficiency conversion process of algae to biodiesel and algae to ethanol • Design and develop commercial algae to biofuels production centers • Create training programs for operators

17. Eldorado Biofuels R&D Center

18. Alcohol Fermenter & Distiller Algae Production in Lab Eldorado Biofuels LLC

19. Biofuels in Santa Fe Biofuels Pumps in Santa Fe: Installed and Operated by Renewable Energy Partners of New Mexico Horseman’s Haven Baca Street

20. Nambe Falls Travel Center Biofuels Station

21. E85 Converter Installed in Subaru Impreza Order from www.whitelightning.net

22. Typical Biodiesel Users in Santa Fe • Federal Express Co. • City of Santa Fe • Santa Fe Southern Railroad • PNM • Pueblo school buses • Wide range of diesel vehicles

23. The RailRunnerFirst US Commuter Train running on Biodiesel B20

24. Cellulosic Conversion to Ethanol MSW Natural Gas Electricity MRF Gasifier AlcoholSynthesizer Wood Chips Ethanol Fertilizer Processor Markets Feedlot Manure

25. Pyrolytic Reforming Gasifier • Wide Range of Applications; • Municipal Solid Waste (MSW) • Forest and Wood Waste • Agricultural Waste(Pecan Shells, Rice Hulls, Wheat Straw, Bagasse, etc.) • Animal Waste (Hog and Cow Manure, Offal, etc.) • Biosolids • Coal and Coal Shale • Plastics • Carbonaceous or Petro Chemicals • Waste Streams can be mixed

26. What’s Needed to make New Mexico a National Center for New Generation Biofuels Production? • Basic biochemical biofuels research by NM Universities and National Labs • Programs established at SFCC to train skilled operators for employment at future biofuels facilities • Non-conventional feedstock field research undertaken by state colleges and state agricultural agencies • Financial and business assistance for entrepreneurs

27. Contact Info for Eldorado Biofuels: • Charles Bensinger, Vice President, 505-466-4259 • Paul Laur, President, 505-670-8490