IH2® : Algal Biomass Direct-to-Fuels Technology

Algae Biomass Summit 1 October, 2013

CRI Catalyst Company

910 Louisiana, Houston, TX 77002

Disclaimer

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forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the

year ended December 31, 2012 (available at www.shell.com/investor and www.sec.gov ). These factors also should be

considered by the reader. Each forward-looking statement speaks only as of the date of this presentation 1 October 2013

Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking

statement as a result of new information, future events or other information. In light of these risks, results could differ materially

from those stated, implied or inferred from the forward-looking statements contained in this presentation.

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Main Points

• Introduction to GTI and CRI

• IH2® Technology Overview

• Algae as Feedstock

• IH2® Product Quality

• IH2® Process Economics

• IH2® Commercial Deployment

• Conclusion

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Introducing Gas Technology Institute

• US 501c3 R&D company founded as IGT in 1941

• Capabilities span natural gas value chain & biomass energy conversion

• Inventor of the IH2® process

• Des Plaines, Illinois USA campus – 250 professional staff

– 18 acre campus with 28 specialized labs totaling 200,000 ft2

• >1,200 patents; 750 licenses; 380 current licenses

• 500 products commercialized with partners

• CRI is the exclusive partner for IH2® technology

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Pilot Scale Gasification Campus Energy & Environmental Technology Center Offices& Labs

Introducing CRI Catalyst Company

• Wholly owned Shell Catalyst Business with 50+ year history

• Houston based global business – Houston

– London

– Singapore

• Research Facilities – STC Amsterdam

– STC Bangalore

– STC Houston

• Manufacturing Facilities – USA: Martinez, CA; Kansas City, MO; Conshohocken, PA

– Leuna, Germany

– Gent, Belgium

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IH2® Technology Overview

• The IH2® process uses catalysts, hydrogen and heat to cost-effectively convert

a wide variety of biomass directly into high purity hydrocarbon “drop in” fuels

(i.e. R100) and/or high quality blend stock (e.g. >R60)

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• The IH2® process takes only minutes to convert biomass to hydrocarbons—

Nature requires millions of years…

• The IH2® process can be integrated into existing refinery, mill, ethanol plant,

agricultural, or recycling operations to create higher value from biomass than

afforded by heat and electrical power sales (NA basis)

• The IH2® process is NOT Gasification/Fischer Tropsch

• Produce fungible hydrocarbon fuel/blend stock from a broad range of inedible/residual biomass feed at low cost

– maximizes product value; – eliminates availability, regionality, seasonality issues; – enhances project scale/capital efficiency

• Require no infrastructure other than road/rail transport into and out of the production. Can be integrated with existing facilities for even better economics.

– self-sufficient, self-contained and self-sustaining operation minimizes biomass transportation costs, build where the biomass is

• Have minimal unsustainable impact on the surrounding environment

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IH2® Technology Overview

8

Gasoline, Jet and Diesel Hydrocarbons (67-157 gal/ton) R100 Regular Gasoline (Wood) R100 Intermediate Gasoline (Wood) R60 + Diesel (Wood)

Products

2) Fluidized Bed

Proprietary Catalyst System Renewable H2

340-470C <500psig

1) Feed Conditioning Sizing , Drying & Feeding

1st Stage 2nd Stage

3) Fixed Bed

Proprietary Catalyst System Renewable H2

<500psig

4) SMR C1-C3 Gas Renewable H2

Process

Distilled Hydrocarbon

Hi Pressure Steam

Clean Water

Fertilizer

BioChar

Biogenic CO2

City Waste

Wood/Forest Residue

Energy Crops

Algae

Feed

5) Cyclones

Crop Residue

IH2® Technology Overview

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IH2® Technology Overview

Wood

(Hard-Soft) Lemna MicroAlgae Bagasse MacroAlgae Corn Stover

Feed wt % C 49.7 46.3 43.1 43.1 34.0 40.2

Feed wt % H 5.8 5.8 6.1 5.0 4.43 5.0

Feed wt % O 43.9 35.7 20.4 35.3 23.6 35.7

Feed wt % N 0.11 3.7 6.5 0.34 4.6 1.0

Feed wt % S 0.03 0.3 0.7 0.10 1.9 0.05

Feed wt % Ash 0.5 8.2 23.1 16.2 29.4 18.1

Feed H/C 1.40 1.50 1.70 1.39 1.56 1.49

Typical % C4+ Liquid

Yield (MAF) (Moisture/Ash Free)

26-30 30 46 30 35 21

C4+ Gallon/Ton (MAF) 86-92 100 157 100 119 67

Product Oxygen b d l b d l b d l b d l b d l b d l

Product TAN# <0.02* <0.05 <0.05 <0.05 <0.05 <0.05

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Wood (Hard-Soft)

Lemna MicroAlgae Bagasse MacroAlgae Corn Stover

Feed wt % C 49.7 46.3 43.1 43.1 34.0 40.2

Feed wt % H 5.8 5.8 6.1 5.0 4.43 5.0

Feed wt % O 43.9 35.7 20.4 35.3 23.6 35.7

Feed wt % N 0.11 3.7 6.5 0.34 4.6 1.0

Feed wt % S 0.03 0.3 0.7 0.10 1.9 0.05

Feed wt % Ash 0.5 8.2 23.1 16.2 29.4 18.1

Feed H/C 1.40 1.50 1.70 1.39 1.56 1.49

Typical % C4+ Liquid

Yield (MAF) (Moisture/Ash Free)

26-30 30 46 30 35 21

C4+ Gallon/Ton (MAF) 86-92 100 157 100 119 67

Product Oxygen b d l b d l b d l b d l b d l b d l

Product TAN# <0.02* <0.05 <0.05 <0.05 <0.05 <0.05

Algae as Feedstock

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Algae as Feedstock

Extracted algae:

• Hydrocarbon yields 100 gal/ MAF ton of extracted algae

• The product split is roughly 70% gasoline and 30% jet/diesel range

Whole algae:

• Hydrocarbon yields range from 157 gal/ MAF ton of wild algae to over 172

gal/ MAF ton of high lipid algae

• The product split is roughly 30% gasoline and 70% jet/diesel range

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Algae as Feedstock

Growth Harvest Extraction

Primary Product(s)

Residues

NH3 / S

LP Steam / Hot Water

CO2

HP Steam or HP Steam to Power

Fuel

100 gal/ton MAF

(70% gasoline,

30% jet/diesel)

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Algae as Feedstock

Growth Harvest Extraction Whole Algae

NH3 / S

LP Steam / Hot Water

CO2

HP Steam or HP Steam to Power

Fuel

157 – 172 gal/ton MAF

(30% gasoline, 70%

jet/diesel)

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IH2® Product Quality (Wood)

Hydrocarbon

Water

Total Liquid Product

2nd Gen Catalyst Lab Scale

Total Liquid Product

1st Gen Catalyst Lab Scale

Hydrocarbon

Water

Gas/Jet/Diesel Product

3rd Gen Catalyst Lab Scale

4Q09 “R5” Quality 3Q10 “R25” Quality 2Q12 “R60+” Quality

Gasoline Product

3rd Gen Catalyst

Pilot Plant Scale

Drop In ‘R100’

Jet/Diesel Product

3rd Gen Catalyst

Pilot Plant Scale

>R60 Quality

Advanced catalysts improve product appearance and quality

Water Product

3rd Gen Catalyst

Pilot Plant Scale

Clean, No Carbon

Process & Catalyst

R&D Continues

IH2® Product Quality (Wood)

Gasoline from IH2®-50 Pilot Plant

Distilled 5 gallons

Passed all ASTM D-4814-10b unleaded gasoline specs as R100 for economy

(86/87 octane) and intermediate (88/89 octane) US grades

For US premium (92/93 octane) add ethanol or sell as renewable RBOB

EN 228 and EN 590 testing set to begin 4Q13

EPA emissions testing (certification) set to begin 4Q13

Diesel from IH2®-50 Pilot Plant

Distilled 2 gallons

Passed all ASTM D-975-11 as No 2 middle distillate fuel

Except Cetane Index & Viscosity

Bangalore Research demonstrating increased cetane and reduce viscosity

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4.7

17.7

4.0

55.0 2.8

2.8

40.5

Feed

1st Stage/2nd Stage

Fractionation

HMU

Ammonium Sulfate

Absorption/Stripping

Utilities & Contingency @ 35%

Installed Equipment Costs $127.5MM • Stand Alone/Green Field (US Gulf Coast basis)

• 2000mt/d wood at 10% moisture

• TIC of $127.5MM results in TCI of $263MM

• HMU (SMR) is largest single expense @ $55mln ~45% TIC

• Feed Stock ~55% of Operating Cost

• No subsidies, tax credits included! $3.96capex/annual gallon

• KBR FEED underway (FEL-2 complete)

• Opex validated by prospective clients

• Minimum Fuel Selling Price:

$1.64/gal (2007) $1.80/gal (2012)

$0.433/L $0.476/L

• Refinery Synergy w/Refinery H2 Supply

- Estimated MFSP $1.36/gal (2007) $1.49/gal (2012)

$0.359/L $0.394/L

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91.31

7.8

2.14

17.3

5.9

29.6

Wood $71.97/dry ton

Other Op Costs: Catalyst, Disposal, etc. Fixed Cost

Depreciation

Avg Income Tax

Avg ROI

Operating Costs Total $1.64/gal*

*Includes $0.1884/gal coproduct credit http://www.osti.gov/bridge/servlets/purl/1059031/1059031.pdf

IH2® Process Economics

• Bench Scale

– Since 02/2009 @ 0.5kg/hr

• Pilot Scale

– Since 02/2012 @ 50kg/d

– Confirmed bench scale results

– Producing fuels for EPA Registration

– Producing fuels for EN Qualification

– Wood derived gasoline is R100

• Pre Commercial Scale

– BDEP for 5mt/d cellulose done

– 2 showcase licenses awarded since 12/2012

• Commercial Scale

– KBR is CRI’s exclusive commercial engineering partner

– 500 & 1000mt/d stand alone USGC wood FEL-2 completed; FEL-3 begins

– 2 commercial licenses awarded since 06/2013

IH2® Commercial Deployment

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Conclusion

• The IH2® technology produces high quality hydrocarbon fuels and

blend stock directly from biomass

• Feedstock flexible with high product yields

• Presents an opportunity for integration with algae production and/or

extraction facility for better site margin

• Nearly carbon neutral*

• Attractive economics

• Available exclusively from CRI

>94% GHG reduction per Professor David Shonnard at MTU:

http://services.lib.mtu.edu/etd/THESIS/2012/ChemicalEng/maleche/thesis.pdf

Thank You

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