BRINGING CAPITAL TO BIOENERGY TECHNOLOGIES

4TH STAKEHOLDER PLENARY MEETING OF THE EUROPEAN BIOFUELS TECHNOLOGY PLATFORM

ROBERTO RODRIGUEZ LABASTIDA 14 SEPTEMBER 2011

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European Biofuels Technology Platform, 14 September 2011

CONTENTS

Global bioenergy investment trends Next-generation biofuels stakeholder survey

/ / / / European Biofuels Technology Platform, 14 September 2011

TOTAL BIOENERGY INVESTMENT BY SECTOR, 2004-10 ($BN)

BIOFUELS BIOMASS AND WASTE-TO-ENERGY

22

23 19

12 9
6 2 2004 2005 AMER 2006 2007 EMEA 2008 2009 ASOC 2010 7 6

10

12

11

6 3

2004

2005 ASOC

2006

2007 EMEA

2008

2009 AMER

2010

Bloomberg New Energy Finance

Bloomberg New Energy Finance

/ / / / European Biofuels Technology Platform, 14 September 2011

BIOFUELS INVESTMENT TRENDS, 2004- Q1 2011 ($BN)

ASSET FINANCING FIRST-GENERATION VERSUS NEXTGENERATION VC/PE INVESTMENT

22

1.24

17

16

0.97 0.80

0.90 0.69

0.47

0.53 0.41 0.29 0.22 0.22 0.08 0.01

5 2

5 1
0 .04 0.04

0.04

2004

2005

2006

2007

2008

2009

2010

Q1 2011 Q1 2011

2004

2005

2006

2007

2008

2009

2010

Q1 2011 Q1 2011

Diesel substitute

Gasoline substitute

First-generation

Next-generation

Next-generation yearly average

Bloomberg New Energy Finance

Bloomberg New Energy Finance

/ / / / European Biofuels Technology Platform, 14 September 2011

BIOFUELS INSTALLED CAPACITY, 2010- 2014(BILLION LITRES)

ETHANOL DIESEL SUBSTITUTES

140 120 100 80 EU Europe 60 40 20 0 2010 2011 2012 2013 2014 Americas (Other) Brazil United States

140 Asia (Other)

Asia (Other) India China

120 India 100 China 80 EU Europe 60 Americas (Other) 40 Brazil 20 United States 0 2010 2011 2012 2013 2014

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Bloomberg New Energy Finance

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NEXT-GENERATION US GOVERNMENT DISBURSED INVESTMENT 2004-Q1 2011 ($BN)

1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2004 2005 2006 2007 2008 2009 2010 Q1 2011

2004 - 2010 Committed $3.1bn Disbursed $1.2bn

0.75

Gasoline substitute

Diesel substitute

Cumulative
Bloomberg New Energy Finance

/ / / / European Biofuels Technology Platform, 14 September 2011

PUBLIC MARKETS INVESTMENT IN BIOCHEMICAL TECHNOLOGIES, 2004-Q1 2011 ($M)

200 180 160 140 120 100 80 60 40 20 0
2004

597.8

600 540 480 420

97.5

360 300

100 54 78.0 54 9.8

2005

240 107.3 180 120 60 0

2008 2009 2010 Q1 2011

23 34
2006

15
2007

25

Advanced biochemical Enzymatic hydrolysis Cumulative investment

Acid hydrolysis Biobutanol fermentation

Bloomberg New Energy Finance

/ / / / European Biofuels Technology Platform, 14 September 2011

PUBLIC MARKETS INVESTMENT IN THERMOCHEMICAL TECHNOLOGIES, 2004-Q1 2011 ($M)

200 180 160 140 120 100 80 60 40 20 0
2004 2005 2006 2007

600 540 480 378.36 420 360 160.1 35.2 4.7 33.1 39.9 53.8 7.6
2008 2009

300 240 180 120 2.6

2010 Q1 2011

41.4

60 0

Gasification fermentation Gasification FT synthesis Cumulative investment

Pyrolysis Hydrotreatment

Bloomberg New Energy Finance

/ / / / European Biofuels Technology Platform, 14 September 2011

CONTENTS

Global bioenergy investment trends Next-generation biofuels stakeholder survey

/ / / / European Biofuels Technology Platform, 14 September 2011

BIOPRODUCT INDUSTRY DEVELOPMENT, 2000-2030

2000

2010

2020

2030

FIRST-GENERATION BIOFUELS PRODUCTION

BIOPOWER PRODUCTION

NEXT-GENERATION ETHANOL

BIOCHEMICAL PRODUCTION

Finance gap
Bloomberg New Energy Finance

/ / / / European Biofuels Technology Platform, 14 September 2011

10

WHY IS THE NEXT-GENERATION BIOFUEL INDUSTRY ATTRACTIVE?

Answers Decouples from food chain Existing mandates Growth potential Lower emissions Ready to scale

Developers

Oil majors Financial community Total

Note:

no impact,

minimal impact,

medium impact,

major impact,

significant impact Bloomberg New Energy Finance

/ / / / European Biofuels Technology Platform, 14 September 2011

11

WHAT ARE THE INDUSTRY BARRIERS?

Answers Technology inconsistency Weak policy High capital costs Risk mitigation Production economics Offtake agreements Feedstock logistics

Developers

Oil majors

Financial community

Total

Note:

no impact,

minimal impact,

medium impact,

major impact,

significant impact Bloomberg New Energy Finance

/ / / / European Biofuels Technology Platform, 14 September 2011

12

WHAT ARE THE VALUE CHAIN DEVELOPMENTAL PRIORITIES?

Residues logistics 17%

Commercial scale 50%

Technical barriers 33%

Bloomberg New Energy Finance

/ / / / European Biofuels Technology Platform, 14 September 2011

13

POLICY REQUIRED

18% 28%

Next-generation mandate

No changes required

18%

Long term stability

18% 18%

Scale adjusted subisidies

Government grants

Bloomberg New Energy Finance

/ / / / European Biofuels Technology Platform, 14 September 2011

14

COPYRIGHT AND DISCLAIMER

This publication is the copyright of Bloomberg New Energy Finance. No portion of this document may be photocopied, reproduced, scanned into an electronic system or transmitted, forwarded or distributed in any way without prior consent of Bloomberg New Energy Finance. The information contained in this publication is derived from carefully selected public sources we believe are reasonable. We do not guarantee its accuracy or completeness and nothing in this document shall be construed to be a representation of such a guarantee. Any opinions expressed reflect the current judgment of the author of the relevant article or features, and does not necessarily reflect the opinion of Bloomberg New Energy Finance. The opinions presented are subject to change without notice. Bloomberg New Energy Finance accepts no responsibility for any liability arising from use of this document or its contents. Bloomberg New Energy Finance does not consider itself to undertake Regulated Activities as defined in Section 22 of the Financial Services and Markets Act 2000 and is not registered with the Financial Services Authority of the UK.

/ / / / European Biofuels Technology Platform, 14 September 2011

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BRINGING CAPITAL TO BIOENERGY TECHNOLOGIES

ROBERTO RODRIGUEZ, RRODRIGUEZLA@BLOOMBERG.NET
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