A2 Tom Robb

ABENGOA BIOENERGY
ABENGOA BIOENERGY R&D

ABENGOA BIOENERGY
Abengoa Bioenergy
ABENGOA BIOENERGY
Abengoa is a technological company that applies innovative solutions for sustainable development in infrastructures, environment and energy sectors. It is present in over 70 countries where it operates through its five
Business Units: Solar, Bioenergy, Environmental Services, Information Technology, and Industrial Engineering and Construction.
Abengoa overview
Prof it and Loss Account
(M )
Sales 2,677.2 32.3 2,023.5 578.8 16.5
Net Earnings attrib. to Parent Company 100.3 52.0 66.0 16.1 20.1
Gross Cash Flows from Operating Activities (* * ) 287.9 33.0 216.4 53.8 18.3
Import ant Variables
Margin (% Gross Cash Flows/Sales) 10.8 10.7 9.3
Gross Cash Flows/Financial results 3.13 3.68 3.32
Return on equity (ROE) (%) (* * * ) 22.45 14.91 10.09
Data per share:
- Earnings per share () 1.11 0.73 0.18 19.9
- Dividend per share ()
0.16 0.15 0.05 12.3
(* ) CAGR: Compound Annual Growth rate.
(* * ) Earnings before interest, tax, depreciation and amortization, adjusted by the works flows done for own fixed assets
(* * * ) Net earnings/ Shareholders' funds
% Variat ion
(06-05)
% CAGR
(96-06) (* )
2006 2005 1996
ABENGOA BIOENERGY
Ethanol production from vegetal raw materials (cereal and biomass)
Abengoa
Bioenergy
Bioproducts
Abengoa Bioenergy Business
Renewable Biofuel
Null CO
2
emissions

DGS Animal feed
CO
2
Industrial applications

Ethanol

ETBE
Direct blending
Hydrogen
Cereal
Biomass
ABENGOA BIOENERGY
Production Process
Technology based in fermentation of sugars

Sugar (glucose)+ Air CO
2
+ Ethanol
C
6
H
12
O
6
+ O
2
3 CO
2
+ 3 C
2
OH
6

Yeast
Used feedstock is transformed into sugars, the process would change depending on the chemical composition:
Sugar beet or sugar cane: direct fermentation
Cereal: starch, previous saccharification (enzymes)
Lignocellulosic biomass: cellulose and hemicellulose. Hydrolysis to
break long chains and produce C
6
and C
5
sugars
Level of
Complication
Feedstock price
Each feedstock yields different co-products
ABENGOA BIOENERGY
Feedstock Preparation Transformation into sugars Fermentation Distillation
Collection
Sugar case
Milling and filtering Distillation Fermentation
C6
Cereal case
Cooking Distillation
Fermentation
C6
Saccharification Liquefaction Milling
Feedstock cleaning
Lignocellulosic Biomass case
Conditioning Milling Separation L/S
Termochemical hydrolysis
Distillation
2nd Enzymatic Hydrolysis
Fermentation
C6
Fermentation
C5
Production Processes
ABENGOA BIOENERGY
Abengoa Bioenergy Goals
Promote development of seeds with improved characteristics to establish win-win contracts with farmers, link
certified seeds to the contracts.
Abengoa Bioenergy is establishing strategic alliances with seeds
companies to develop/improve specifics crops
Promote better agronomic practices under long term contracts to
increase farm income
Promote energy crops for ethanol production

Abengoa Bioenergy is working closely with research centers to promote the development of crops
for ethanol production.
Abengoa Bioenergy is helping governments define policies and R&D programs to promote
energy crops.

Feedstocks
ABENGOA BIOENERGY
Objective
Taylor made energy crops for the different conversion pathways and for particular regions ensuring sustainability
and environmental quality. Main crops characteristics:
Domestic crops, high starch and biomass yields per hectare,
stress tolerances (abiotic, disease)
Minimum inputs maintaining sustainability
Composition to maximize the ethanol
Ensure sustainability and environmental quality
(fromanalysis of microbial communities underlying soils
to formulation of management guidelines for biomass
removal)
Feedstocks
ABENGOA BIOENERGY
Cereal technology current situation
All Abengoa Bioenergy plants are currently running on cereals
Yields varying depending on cereal used
DDGs produced containing 30% protein and 10% humidity
Cereal technology Future situation
Objective
Increase competitiveness of the production facilities. Abengoa Fuel and Feed (AFF)
process to be patented by Abengoa Bioenergy
Steps
Decrease amount of residual starch (minimum facility modifications)
Increasing protein content (>40%)
Increase digestability
Increase the quality of the co-product (DDGs)
Technology
ABENGOA BIOENERGY
Enzymatic hydrolysis technology current situation
Abengoa Bioenergy has develop a proprietary fractionation technology for biomass processing.
Pilot scale plant in York, (Nebraska, US) to validate our biomass fractionation process and
integrate downstream systems
Demonstration plant in Babilafuente (Salamanca, Spain) to validate biomass to ethanol
enzymatic technology at a commercial scale.
Enzymatic technology Future situation
Objective
Competitive production of ethanol from biomass.
Steps
Complete the process engineering development demonstrations phases.
Build first of a kind commercial facility after the
demonstration of the technology in Salamanca and
Nebraska
Valorization of all biomass fractions
Technology
ABENGOA BIOENERGY
Steps (continue)
Research in the biological deconstruction of the biomass to produce tailor made enzyme mixes for each specific
case:
Determine fundamental physical and chemical factors in the recalcitrante of lignocellulosic biomass to
processing
Understand cellulase and cellulosome
Develop new enzymatic systems to soften termochemical pretreatment conditions
Advance in the sugar fermentation to ethanol through the engineering of microbial systems to achieve:
high yield with complete sugar utilisation, minimal by- product formation, and minimal loss of carbon
into cell mass.
high final ethanol concentration
tolerance to inhibitors present in hydrolysates
higher overall volumetric productivity, especially under high solids conditions
Technology
ABENGOA BIOENERGY
Biomass gasification and synthesis (BtL) technology current situation
Available catalysts are not productive enough to make the
process economically feasible.
Low conversion per pass
Mixed alcohols product with low ethanol selectivity
Several existing technologists licensing gasification processes
for syngas production for further chemical synthesis.
Catalysts development programs in European research centers,
combined with process design and analysis.
Recently granted by the US-DOE a program (3 MM$) for
synthesis catalysts development
Technology
ABENGOA BIOENERGY
La Corua (50 Mgal) York, NE (55 Mgal)
Colwich, KS (25 Mgal)
Portales, NM (30 Mgal)
Ravenna, NE (88 Mgal)
Cartagena (40 Mgal)
Salamanca (52 Mgal) AB France (65 Mgal)
Abengoa Bioenergy is the only international producer of ethanol
Production Facilities in EU Production Facilities in U.S.
EU (Mgal) 2006 2007 2008
Production 142 142 208
Construction * 66 66
US (Mgal) 2006 2007 2008
Production 110 198 286
Construction 88 88
YTD Production Capacity
ABENGOA BIOENERGY
Abengoa Bioenergy plans to be a leader in commercialization of cellulosic
ethanol production
Objective
Build first commercial scale cellulose facility by 2011
15 million gpy from biomass, 85 million gpy from starch
(hybrid facility)
Cornerstones
Two biomass facilities now underconstruction
York, NE pilot plant (operational 2006) will demonstrate
biomass fractionation and fermentation technology
Salamanca, Spain facility (2 mgpy - operational 2007)
will demonstrate enzymatic hydrolysis technology
ABENGOA BIOENERGY
DOE integrated biorefinery solicitation
Overview
DOE will award of up to 40% of the cost of a biorefinery facility ($76.8 million)

Award criteria:
Facility must be able to utilize 700 bone dry metric tons of biomass per day
Facility must be replicable and proposal to include appropriate deployment plan of the proposed technology
After construction costs are paid, the facility must be profitable without subsidies

Additional merit points given for:
Significant showing of state support
Energy generation from multiple sources feedstocks
Barrels of oil displaced

ABENGOA BIOENERGY
Risk mitigation for biomass availability and site selection
Risk factors
Inclimate weather during biomass harvest period
Due to this risk factor, Eastern US corn-belt was not considered as a
viable location for plant location until one-pass harvest technology is
available (potential for one in seven years for biomass harvest to be
limited)
Biomass crop residue abundance
As the DOE is focused on cereal crop residues, areas such as
California and South East US (wood residue) were not considered as
viable locations for proposal
Multiple sources of biomass
Multiple biomass sources demonstrate plant replicability over a wider
geographic area
Multiple biomass sources with harvest periods during different times of
the year reduce risk of biomass harvest being compromised by bad
weather
Multiple biomass sources and harvest times spread harvest machinery
investment and will reduce feedstock costs

DOE integrated biorefinery proposal
ABENGOA BIOENERGY
ABENGOA BIOENERGY
ABENGOA BIOENERGY
ABENGOA BIOENERGY
ABENGOA BIOENERGY
ABENGOA BIOENERGY
Biomass available in Kansas
38 million tons per year
Crop Corn Milo Wheat Swit chgrass
Harvested Acres 3,400,000 2,600,000 9,500,000 2,900,000
Production (bu) 464,000,000 195,000,000 380,000,000
Residue 11,000,000 6,700,000 12,800,000 7,500,000
DOE integrated biorefinery proposal, cont
ABENGOA BIOENERGY
Abengoas hybrid plant concept
35 million bushels grain facility
88 million gallons ethanol
290,000 tons feed co-product

245,000 BD metric tons biomass (315,000 short tons-as is)
400 BD metric tons/day
15 million gallons ethanol

300 BD metric tons/day
Syngas production
1,597,200 MMBTU (syngas+flue gas)
100% steam needs of biomass processing
~30% steam needs of grain to ethanol processing
Syngas can be utilized for production of chemical intermediates

Opportunity to leverage infrastructure and many plant operations
ABENGOA BIOENERGY
Technical process
Enzymatic Hydrolysis (EH) will convert biomass to ethanol, lignin and
biomass animal feed.
- The EH technology is being developed in house and will be tested and
improved at the facilities in York, NE (pilot plant) and Salamanca (demo plant).
- Coproduct development (lignin and biomass animal feed) is being performed
and will contribute to the overall profitability of the facility.

Gasification will convert biomass to syngas, which will be combusted
for steam generation.

ABENGOA BIOENERGY
Oil Displacement
From 245,000 BD metric tons biomass
386,721 barrels of oil displaced
ABENGOA BIOENERGY
Strong showing of state support
State government
Attractive incentive package
Strong governmental support
Producer organization support
Kansas Farm Bureau
Kansas Wheat Growers association
Kansas Milo Growers association
Kansas Corn Growers association
Kansas BioAuthority
Kansas Association of Ethanol Processors
ABENGOA BIOENERGY
Biomass logistics P&L cornerstone
Biomass inputs
50 mile radius of plant site
65% wheat straw, 20% milo residue, 15% corn stalks
Opportunistically use other residues such as gin trash, wood
chips, etc.
Areas evaluated = ~5% of total available

80 to 85% of input needs
Producer harvests and stores material field side
Abengoa collects material as needed

15 to 20% of input needs
Producer delivered material to plant site
ABENGOA BIOENERGY
Biomass economics
80 to 85% of material
Contracted at least one year in advance
Crop residue is valued at $10/short ton in the field
Added to the $10/ton
Custom rates for harvesting
Custom rates for transporting/stacking at field side
Storage fee dependant on amount of time between harvest and
Abengoa collection to include competitive insurance rate and
weather protection
$10 plus rates above = price paid for biomass at field side

15 to 20% of material
Spot market pricing
ABENGOA BIOENERGY
Biomass economics
What $10/ton means to biomass producers
Of the $10/ton, between $3 to $4 needs to be returned to the
soil for nutrient loss
Producer net will be $6 to $7 per ton
Wheat @ 1 ton/acre net = $6 to $7 per acre
Corn/milo @ 2.4 ton/acre net = $14.4 to $16.8 per acre
Switchgrass @ 5 ton/acre net = $30 to $42 per acre

Many Kansas producers live on $25 per acre profit

ABENGOA BIOENERGY
Wheat versus corn/milo residue and switchgrass
Operation Per/ Per Ton Per/ Per Ton Per/ Per Ton
Mow/Swath $0.00 $9.85/acre $4.10 $9.85/acre $1.97
Baleing $11.50/bale $23.00 $13.00/bale* $25.30 $11.50/bale $23.00
Haul to Storage $4.75 $4.75 $4.75
Total $27.75 $34.15 $29.72
Delta to Wheat $6.40 $1.97
Delta value for
300K tons
$1,920,000 $ 591,000
* Estimate 10% higher baling costs for corn/milo residue due to dirt/increase machinery wear
Comparison of select variable cost s based on 2004 Kansas Cust om Rat es
Wheat , 1 t on/ A Corn/ Milo Residue, 2.4 t on/ A Swit chgrass, 5 t on/ A
ABENGOA BIOENERGY
Needs to make cellulosic ethanol cost effective/
competitive with grain ethanol
Process
Cost effective enzymes
Pentose to ethanol
organism (s)
Fractionation process
Plant design and
operational learning curve

Feedstock
High density balers
One-pass harvesting
systems
Storage infrastructure and
systems to maintain quality
Improved genetics of
feedstock varieties
Energy efficient harvesting
systems
Transportation infra-
structure and biomass
friendly regulations
ABENGOA BIOENERGY
www.abengoabioenergy.com
Abengoa Bioenergy
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A2 Tom Robb

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ABENGOA BIOENERGY R&D

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