Catalytic Upgrading of Glycerol to Propylene Glycol DOE Products Platform Stage Gate Review Meeting August 9 10, 2

1. Catalytic Upgrading of Glycerol to Propylene GlycolDOE � Products Platform Stage Gate Review Meeting August 9 & 10, 2005 John Holladay Pacific Northwest National Laboratory My name is Sam Tagore. I am from the Office of the Biomass Program and am responsible for Biomass Feedstock Interface Management Activity. My presentation will cover the following: O The feedstock work breakdown structure O Our near and long-term goals O Our near and long-term supply O The barriers that we are trying to overcome O The R&D Plan needed to reach our cost goals O Our Roadmap Planning document O Finally, our FY 04 budget request for the Biomass Feedstock Interface Activities .My name is Sam Tagore. I am from the Office of the Biomass Program and am responsible for Biomass Feedstock Interface Management Activity. My presentation will cover the following: O The feedstock work breakdown structure O Our near and long-term goals O Our near and long-term supply O The barriers that we are trying to overcome O The R&D Plan needed to reach our cost goals O Our Roadmap Planning document O Finally, our FY 04 budget request for the Biomass Feedstock Interface Activities .

2. Presentation Outline Overall Project Goals and Objectives Organization of the Approach to meeting these Goals and Objectives (tasks and subtasks) For each major task or objective please address in more detail Technical or economic target or objective All risks associated with meeting these targets or objectives Milestones established to measure progress and financial or performance metrics Go No/Go decision points Accomplishments to date Future plans and partners Market and customers Competitive Advantage Strategic Fit Conclusions and Discussion

3. Project Goal Develop enabling technology leading to an integrated process for the production of propylene glycol from glycerol Project Objectives Improved first generation catalysts Highly selective for PG Long catalyst life High catalyst activity With industrial partners, finalize and demonstrate process to conceptual design for commercial unit Longer Range Objective Applying catalyst technology to C6 or mixed C5/C6 sugars Overall Project Goals & Objectives

4. Organization/Approach

5. Organization/Approach

6. Organization/Approach

7. Organization/Approach

8. Tasks / MilestonesGo / No Go Decision Task 1 Activities Reaction Modeling: ADM (PNNL supplied data) Optimization in fixed bed mode: PNNL 500 h catalyst life study: PNNL Continuous Process statistical designs: PNNL Catalyst characterization: UOP (PNNL supplied catalysts) Milestones Catalyst must meet technical targets Verification of economics Go / No Go Decision Point Outcome of economic verification

9. Task 1 Targets Technical targets are directly tied to ADM�s Cost Models and include� PG selectivity: in excess of 90% Catalyst cost Based on ADM�s economic model� Life (approx 1 year)

10. Technical Risks Catalyst stability insufficient Final product does not meet spec within economics Feedstock impurities impact economics These risks are being managed as part of the research effort Business / Market / Legal Risks Price of propylene stabilizes at a cost that offsets economic advantage Partner�s business strategies change These risks are offset by the flexibility of feedstocks, potential market partners, PNNL IP position Risks

11. Completed� Identification of catalyst compositions for highly selective transformations Catalyst preparation and activation studies (TPR) Initial techno-economic model Identify technical targets Two 500+ catalyst life tests Identified site blockers in feeds Other insights into stability Catalyst characterization Improvements to catalyst Accomplishments to date

12. Accomplishments to date

13. Accomplishments to date

14. Future Plans Future Plans� Continue catalyst testing/development Effects when using less pure feeds Lifetime Continued technoeconomic process evaluations Out years� Task 2 Reactor and final catalyst Scale-up Task 3 Industry validation�1 L Pilot (ADM) Task 4 Conceptual commercial design

15. PG Market is 3.5 billion lbs globally Market & Customers

16. Window of Opportunity US Biodiesel incentives make this a prime opportunity Renewable approach offers economic and environmental advantages Competitive Technology Petroleum based (Propylene) Cl-based process Co-products produced in non Cl-based technologies Market is large, dramatic change in PG demand is unlikely State of the economics Catalyst costs, feedstock costs and purification costs dominate economic picture Cost competitive if glycerol less than $0.40/lb Market dynamics covered by model Competitive Advantage

17. Business fit Part of PNNL�s catalysis science emphasis Fits well within ADM�s biodiesel and sugars portfolios Part of UOP�s core catalyst and biodiesel technology portfolio Biorefinery fit Fits within multiple pathways Current Stage Research track, exploratory research FY08 Status Technology ready for commercial prototype by FY08 Strategic Fit

18. Milestone Fit

19. Milestone Fit

20. Milestone Fit

21. Milestone Fit

22. Milestone Fit

23. Demonstration phase of a commercial prototype in FY08 is anticipated Strategic Fit

24. Technical Barriers Addressed:Chemicals and Materials

25. Conclusions/Summary Develop enabling technology leading to an integrated process for the production of propylene glycol from glycerol Highly selective catalysts Catalyst life: strong progress Preliminary economics very promising PG market is 3.5 billion lbs Partners include ADM (an Ag Processor/Biodiesel producer) UOP (a major chemical technology company) Directly addresses DOE programmatic goals and on target for 2008 demonstration phase