Overview of Agri -Tech Producers, LLC’s Torrefaction Process

1. Overview ofAgri-Tech Producers, LLC’sTorrefaction Process By: Joseph J. James President, Agri-Tech Producers, LLC Phone: (803) 462-0153 josephjjames@bellsouth.net www.agri-techproducers.com Agri-Tech Producers, LLC

2. The Problems!!! Large Coal Users: • On a global basis, large coal users (electric utilities) are being mandated to find cleaner and renewable fuels to co-fire with or replace coal, build new biomass power plants, costing $100’s of millions, or face stiff penalties and/or the loss of incentives. • Untreated wood and plant biomass fouls boiler systems and they and standard wood pellets, have a low energy value, they readily absorb moisture and require expensive storage, by the end user, to protect them from the weather. • Metallurgical coals are very expensive and pollutant laden. Biomass Processers: • Biomass processers are looking for biomass feedstock that is easier to convert, use, or process than untreated biomass. Agri-Tech Producers, LLC

3. Agri-Tech’s Solution Agri-Tech will develop, improve, sell and use the best torrefaction process available to facilitate the sustainable use of plant, wood and other biomass; in order to make a clean and renewable coal alternative, as well as variety of bio-products, which enhance the world’s environment and quality of life, while also improving economic conditions for disadvantaged, rural communities, in which Agri-Tech operates processing plants. Agri-Tech Producers, LLC

4. Torrefaction: A Technology to Enhance Biomass • Untreated biomass may be 50% water, it’s bulky and it’s not the most efficient or useable fuel or bio-feedstock. Torrefaction: • Drives off most of the water • Makes a better co-fire fuel to burn with coal • Makes superior briquettes and pellets • Makes an enhanced bio-product feedstock • Torrefaction, applied at or near the point of harvest: • Reduces transportation costs of biomass, per BTU • Produces a more valuable biomass shipment Agri-Tech Producers, LLC

5. The Markets • According to the IEA, annual world coal use is 6.2 billion tons, of which 63% is used to produce electricity. Annually, the US and EU use about 2 billion and 1.2 billion tons each, with increasing rules to use cleaner and renewable fuels. • The world's pellet industry supplies a mediocre coal alternative, but has been growing at a 20% rate. In 2020, pellet demand will increase from 6 to over 40 million tons. • Torrefied biomass can easily displace 25% of the coal being used and be used in 50% of pellets produced. • Because of EU and certain Asian country regulations and incentives, their utilities are very interested in buying torrefied pellets. At the moment, US utilities are more cautious, depending on state regulations and incentives. • The market for torrefied feedstock used in making bio-based products is being determined, but expected to be very promising. Agri-Tech Producers, LLC

6. Agri-Tech’s Technology Agri-Tech’s torrefactiontechnology, which it has exclusively licensed from NC State University, involves heating biomass in a low-oxygen environment to: • Remove water, which reduces logistics costs and improves combustion performance, • Greatly increase energy (Btu’s) and physical density; • Make a very brittle and easily ground solid fuel, suitable for pulverized-coal power plants; • Make water resistant pellets and briquettes; • After reaching operating temperature, Agri-Tech’s auto-thermal units require no external energy for process heat, which reduces processing costs and lifecycle impacts. • And, to make a better feedstock for more cost effectively producing a host of bio-products. Agri-Tech Producers, LLC

7. Competitive Differentiation Agri-Tech’s biggest torrefaction process competitors are European companies, but • Their processes are much more complex and moreexpensive, • Theirunits require a costly, extra step to pre-dry biomass inputs to 20% or less moisture, • Agri-Tech's units can process most biomass feedstock in a single unit, without pre-drying. • Agri-Tech’s units, once at operating temperature, requireno outside energy for process heat. Agri-Tech Producers, LLC

8. Schematic of Agri-Tech’s Torrefaction Machine Agri-Tech Producers, LLC

9. NC State University’s Prototype Torrefaction Unit Agri-Tech Producers, LLC

10. ATP’s Equipment Manufacturer: The Kusters Zima Corporation 101 Zima Park Drive / I-85 Business Spartanburg, S.C. 29301 Tel: (864) 576-0660 8.74 Acres (35,362 Sq. Meters) Building Constructed in 1969 80,128 Total Manufacturing Sq. Ft. (7,444 Sq. Meters) Kusters Zima has over 40 years experience in engineering and manufacturing machinery for many various industries. • Complete Manufacturing • Water & Waste Water Equipment • Grit Removal & Washing • Course & Fine Screenings • Classifiers • CSO Screens • Dewatering • Carpet & Textile Equipment • Continuous Preparation • Dye Washers & Scour Ranges • Steamers • Liquid Dispensing • Water & Dry Lint Removal Systems • Contract Sales • Piece Parts & Components • Customer Specific Design & Build • Build to Print • Complete Metal Fabrication including Welding, Cutting, Forming and Piping. • Machining Capabilities that include CNC Turning and Vertical Milling Centers. • Complete Mechanical and Electrical Engineering with the latest Software Versions of SolidWorks and AutoCad. • Complete Mechanical and Electrical Assembly and F.A.T. for Production Machines and Prototypes. • Installation and Start-up Supervision.

11. Agri-Tech Producers, LLC