Economic Conversion of Biomass to:

1

• Economic Conversion of Biomass to
• Fermentable Sugars at 0.05/lb.
• Bio-Fuels at lt 1/gallon of Ethanol
• Seeking 4M in Series A funding
• www.hclcleantech.com
• eran_at_hclcleantech.com

2
HCL CleanTech makes cellulosic biofuels an
economic reality in lt 3 years

• Using HCL CleanTech new inventions to revive the
  industrially proven Bergius process for HCL
  hydrolysis of lignocellulose to fermentable
  sugars ethanol
• no need for corn as feedstock, we can use corn
  stover, or other biomass instead.
• The key to HCL CleanTech inexpensive fuel
  production
• Concentrated HCL can hydrolyze any biomass
• Full recovery of the hydrolyzing acid
• Retrofit existing corn dry mills fermentation
  facilities to use biomass
• No enzymes needed
• Reduce energy required for acid recovery by 90

3
Market Opportunity

• Market size 2008 8b/gallons Ethanol (20b)
• Market growth 2007-08 20
• Market size 2022 36b/gallons biofuels (90b)
• In 1999 US oil imports 40b 15 of US defense
  budget
• In 2008 US oil imports 650b 130 of US
  defense budget
• Shortage of corn and sugar increased prices
  the necessity to use biomass instead
• The development of enzymes for the conversion of
  biomass has not been successful economically

4
The Solution - HCL CleanTech hydrolysis

• We license the proprietary solvent extraction and
  stripping process (A4) that facilitates the HCL
  economically-attractive hydrolysis.

5
HCL CleanTech technology Advantages
6
Go to market strategy

• Licensing to agro companies
• Provide lower cost source of fermentable sugars
  (0.05 vs. 0.11/lb.)
• Royalty, or sale of fermentable sugar
• HCL-dependent industries
• Recovers HCL from industrial streams
• 10 of the opex and lt15 month payback
• Flat fee per unit, or of savings
• Municipal waste incineration companies
• Flat fee per unit
• HCL equipment manufacturers as marketing partners
• Geographic focus USA, Canada, Brazil, EU (for
  incineration)

7
Status

• HCL recovery technology fully proven
  optimizations ongoing
• Pilot of recovery unit under construction
  (experiments by 12/08)
• Production pilot by end of 2009
• Full process package ready by 04/09
• Engineering for HCL recovery cellulosic
  conversion ongoing
• 1 published PCT 5 recent patent applications
  filed
• Additional patent applications in Q4 2008
• Ongoing negotiations with corporate customers in
  the US and Europe for fermentable sugars and for
  HCL recovery
• Recruiting of research and engineering ongoing

8
Financial Overview

• 500,000 bridge loan in 07/08. (85 used for RD
  and engineering)
• 4M Series A Now
• 5M Series B 18 months after Series A
• Use of Proceeds Get HCL recovery pilot plant,
  get cellulosic conversion pilot plant,
  engineering, expand RD, biz development, expand
  IP protection, GA

9
The Team

• Eran Baniel Founder and CEO
• Former CEO of LifeWave, Desk-Trainer U.L.A.
  (lighting )
• Prof. Avraham Baniel Founder and Co-inventor
• 50 years in Industrial Chemical Research,
  Managing Director of Israel Mining Institute,
  over 60 patents .
• Prof. Aharon Eyal Founder, CTO and Co-inventor
• Prof. of Applied Chemistry at Hebrew University,
  over 100 patents, senior advisor to global
  industrial firms
• Robert Jansen (EU) head of project engineering
• 33 years experience in the food processing
  industry at Tate Lyle , experienced in energy
  utilization process improvements
• Paul McWilliams (USA) Engineering consultant
• 31 years at Cargill working on wet milling
  plants, Renessen since 1999