Advanced Biofuels Leadership Conference

April 2011

Matt Horton, CEO

www.propelfuels.com

Industry at a Crossroads• 10% Blend wall is upon us

• Ethanol reached 9.6% of gasoline supply• Currently exporting ethanol to Brazil

• RFS2 implications if we don’t make progress• 3 Potential solutions:

• E15• Drop-in fuels• High-blend infrastructure

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There is a Path Forward, But…

Future Past≠

Change #1 - Customers

Change #2 - Products

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87 9189MAY CONTAIN UP TO 10% ETHANOL

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Change #3 - Geography• Midwestern states have traditionally influenced policy• Advanced Biofuels community represents new voice,

with new representation in Congress• Work with conventional biofuels supporters to

expand market access – infrastructure and vehicles• Best opportunities are outside of the Midwest

FFV Concentrations in US

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60% of Stations20% of FFVs

3% of Stations17% of FFVs

10% of Stations16% of FFVs

Infrastructure Mismatch

4% of Stations13% of FFVs

6% of Stations7% of FFVs

6% of Stations5% of FFVs

10% of Stations18% of FFVs

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MN<500 FFVs/E85 station

USA1,500 cars/gas station3,600 FFVs/E85 station

CA7,600 FFVs/E85 station

Fueling Change…

Propel’s MissionBuild the leading clean fuel brand by building the largest retail network of renewable fuel stations

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With a New Retail Model• Partner with station owners• Build, own, and operate • Centrally manage network• Focus on renewable fuels• Largest network in West• Currently developing 75

stations in CA w/DOE, CEC

A New Kind of Fuel Company

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Key #1 – Engage Consumers• Target the right consumers and fleets• Actively reach out to educate customers• Use a clean, attractive, professional image• Create a familiar, easy transaction• Give great customer service• Instill confidence with a product warranty• Be visible publicly, in PR and with locations

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Key #2 - Right Products•Keep the customer in mind•Focus on vehicle platforms•Find the right blend level and price point

• Select the very best real estate• Clusters, not corridors• Focus on critical mass• Develop a network

Key #3 - Convenience

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Matt Horton, CEOPhone: 650.575.1976

matt@propelfuels.com 16