Recycling Waste CO2 Into Carbon-Neutral Fuels

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Executive Summary
Joule invented a new category of fuels: CO2-recycled fuels
CO2-recycled fuels are a cost-competitive, drop-in substitute for petroleum
derived fuels, with more than 90% reduction in life cycle carbon emissions
Carbon taxes, incentives, and emission caps are already a reality and create an
additional opportunity for CO2-recycled fuels, with substantially higher value in
certain cases than the energy value of the fuel
To date, the company has committed $200m to develop its reverse-combustion
technology and perform initial field demonstrations
The company is now industrializing the technology together with global
industrial giants to accelerate deployment of CO2-recycled fuels

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Drop In Fuels From Waste CO2, Sunlight & Non-Potable Water

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Executive Summary

Drop-in Fuel - No Downstream

Processing No Infrastructure Upgrade

~100% CO2 Recycling - Global Supply

Of Carbon Neutral Fuels

Long Term Stable Supply

Competitive Costs At $80-$50/bbl

Superior Marketing Platform At The

Crux Of Energy & Sustainability

Abundant Feedstock With No

Biomass Required

Global Siting Opportunities Supporting

Regional Energy Security

Partnering With Fortune 50 Brands

Accelerating Commercialization

Unrivaled Scalability In An Increasingly

Carbon Constrained World

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The Problem: CO2 Emissions

2014 - The Warmest Year On Record On The

Planet - Driven By Record CO2 Emissions

Climate Severe Weather Events Impacts Daily

Lives - More Than Ever Before

Catastrophes - Previously Thought Unrealistic Are Now A Reality

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The Solution: Reversing Combustion, Consuming CO2

Reverse combustion

Combustion

Liquid
Fuel

Solar
Energy

Joules
Proprietary
Reverse
Combustion
Process

Oxygen
Combustion
Process

Energy

Water

Carbon
Dioxide

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Photosynthesis Plus Catalysis to Produce Solar Fuels

Sunlight

Sunlight
Oxygen

Carbon
Dioxide

Carbon
Dioxide

Water

Water

Fuel

Oxygen

Natural Photosynthesis

Joules Leveraged Photosynthesis

Sunlight, CO2, & water drive plant

(biomass) growth and O2 production
Biomass later fermented into fuel

Sunlight, CO2, and water fuel catalytic

conversion to produce secreted fuel
Catalysts produce fuels directly

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Reprogramming the Cell to Make Liquid Fuels instead of Biomass

CO2
EXISTING PATHWAY
OPTIMIZED CO2 UPTAKE

3-Phosphoglycerate
(3PG)
NEW ETHANOL PATHWAY
2 GENES ADDED

EXISTING PATHWAY

Ethanol

Pyruvate
Acetaldehyde

DISABLED BIOMASS
CREATION
Biomass

Acetyl CoA

EXISTING PATHWAY
INCREASED FLUX

C8,10,12 fatty
acyl carrier
protein (ACP)

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Ethanol

NEW ALKANE PATHWAY

4 GENES ADDED

C8,10,12
fatty acid

C8,10,12
aldehyde

C7,9,11
alkane

Diesel
Jet Fuel
Gasoline

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Strong Environmental Benefits

Joule sequesters up to 20-35

times more CO2 than a tree

The U.S. Environmental

Protection Agency (EPA)
estimates that one acre of
trees sequesters between 4
to 7 tonnes CO2 per acre per
year
A Joule facility sequesters
about 150 tonnes CO2 per
acre per year
Joule can tap the abundant
supply of CO2 emissions
from power, cement,
refining, and steel plants

Crop based biofuels need >100x

more water than Joule

Joule catalysts thrive in

brackish water

Our process can use waste,

brackish, and sea water

Only 15 liter water per liter

of Joule ethanol produced

Comparable crops for

ethanol production use
1,400-10,000 liter per liter
ethanol1

Joule does not compete for

arable land

Joule does not need arable

land nor competes for land
with food crops

Therefore Joule does not

impact Indirect Land Use
Change (ILUC)

These land use changes have

been identified as a
significant source of
additional GHG emissions

1. Source: Gerbens-Leenes et al., The water footprint of bio energy. Comparable crops for ethanol include sugar beet, sugar cane, cassava and sorghum

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Demo CO2-to-Ethanol Plant Operating Today in Hobbs, NM, USA

Commercially Protected By 61 Patents, Grants & Allowances With An Additional ~100 Pending

CO2

Salt Water

Sunlight

Ethanol

Joule Biological Catalyst

Diesel

Joule Demonstration Plant

Jet Fuel
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Drop In Fuels Have Already Been Produced

Reiner Mangold, AUDI AG

Head of Sustainable Product Development and e-fuels
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Joules Leadership Team

Serge Tchuruk
President and CEO, Board Member
- Broad Global Industrial Management Experience
- Multiple CEO/Chairman & Board Experience

Tom Einar Jensen, MSc

Peter Matrai

EVP, Head of Corporate Development

Chief Financial Officer

- Top Management Experience In Biofuels
- COO, CFO and Corporate Development Roles

- Top Management Experience In E&P & Biotech

- Founded & Matured Disruptive Innovations

David St. Angelo, MSc

John Ward, MBA

SVP, Production

SVP, Engineering

- Experienced In Construction/Operations for 20+ years

- Broad Biotech Operational Management Experience

- Broad Leadership Roles In Energy & Cleantech

- Successful Track-record In Complex Engineering

Mark Solakian, JD

Dan Robertson, PhD

SVP and General Counsel

Chief Scientific Officer

- On Of The Worlds Foremost Experts On Photosynthesis
- Broad Academic/Industrial Experience In Microbiology

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- Broad General Counsel Experience For 20+ Years

- Extensive Experience In High Growth Tech Companies

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A Joule Facility Turns CO2 and Sunlight into Profit

Inputs1

Industrial Waste CO2

1000 acres of land (Joule Facility)

250 acres of land
(PV Facility)
150 000 t CO2/y
(Flue Gas)
300m gal/y water (Brackish or Sea)
$125m Capex1
(Excludes PV facility)
$43-50/bbl Cash Opex2

Outputs3

Solar Power

Production:
Revenue:
EBITDA:

Joule Facility

~800 bbls/day
$35-47m/yr
$23-35m/yr

1. N-th Plant numbers for Diesel and Ethanol 2. N-th plant numbers for Ethanol and Diesel 3. N-th plant numbers for a Diesel Plant with 20 year Lifecycle. Oil price $60-120/bbl, Carbon price $40-100/t CO2.
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Competitive Position of Joules Process for Renewable Fuels

Readiness

Joule

Demo Scale

Biomass-toLiquids

First
Commercial
Under Const

Cellulosic
Ethanol

First
Commercial

Cane Ethanol

Commercial

Biodiesel

Commercial

Algal Lipids

Research

Corn
Ethanol

Commercial

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CO2
Capex
Footprint

14

Cash
Opex

Scalability

Comments

Low cost, scalable, >90% CO2

reduction solution

Requires significant
biomass/arable land to
scale; traditional ag risks

High capex, opex.

Requires significant
biomass/arable land to
scale; traditional ag risks

Requires lots of water and

arable land; traditional ag
risks

Poor economics and

scalability; not a drop in
solution

Poor economics and

scalability; not a drop in
solution

Requires lots of water and

arable land; converts food
into fuel; traditional ag risks

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The CO2-recycled Fuel Premium is Real and Increasing

CO2-recycled Fuel Premium

Impacts

The CO2-recycled Fuel Premium is here

today and will increase as more emission
restrictions and caps are legislated

Premium could in certain cases substantially

exceed $100/bbl for relevant markets like
EU automobile fuels

$1,000

$/bbl

$100

$10

Much larger than the energy value of crude oil

or fuel: cost of crude oil becomes irrelevant

With a 1000 acre Joule facility:

150,000 t CO2/yr emissions mitigated

$7-30m/yr value capture through incentives or
avoided taxes

$1

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History and Path To Commercial Success

1st
2015
Industrialization
1st Phase

2018-2019
Commercial Plant

2016-2017
Industrialization
2nd Phase

2012-2014
Field
Demonstrations
2007-2011
Initial Invention &
Lab Demonstration

Joule Has So Far Shown:

- Ethanol & Diesel Produced Directly From CO2
- Productivity Previously Deemed Unfeasible
- A Modular System That Works

~$ 110 Million
Initial Funding

~$50 Million
Additional Funding
Audi Partnership

2014 Joule. Rights Reserved. Proprietary & Confidential.

Moving Forward Joule Will Demonstrate:

- Groundbreaking Productivity In A Scalable System
- Realistic Roadmaps For Sustainable Mobility
- Broader Partnerships For Global Roll-Out
~$35 Million
Funding Secured;
Strategic Partnerships
Negotiated
16

Joint Ventures
Strategic Partnerships
Commercial Roll-Out
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Identified Over 1000 Potential Locations for Joule Plants Globally

Indicative selection of sites from Joule Fuels CO2 emitter database, with CO2 emissions >= 300 kton/year, maximum theoretical productivity >=18,000 gal/acre/yr, air temperature >= 0C, wet-bulb temperature <=25C.
Source: Team Analysis, NASA climate data. Not all locations adjusted for availability of land.

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Audi and Joule: The future of CO2neutral mobility

Audi selected Joule as its exclusive global sustainable fuels partner in transportation

Joule and the fuels it is developing can

ultimately enable sustainable motoring... it is
the ideal sustainable fuel platform for Audi
to support

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Commercialization through Coalition of Corporate Partners

Enabling Industrialization and Global Supply Of CO2 Neutral Fuels

Regional Partners
Affiliate Partners

Aviation
Marine

EPC
Equipment

Automotive

Strategic Partners
One Of The
Largest Global
Utilities

One Of The
Largest
Oil & Gas
Majors

Technology Provider

2014 Joule. Rights Reserved. Proprietary & Confidential.

Strategic Partners
Global industrial brands with clear
motivation to enable Joules technology
contributing with financial and other
resources to gain certain upfront rights
Affiliate Partners
Industrialization partners with distinct
resources &/or relevant supply chain
capabilities for Joules development
Regional Partners
Local or regional stakeholders with
strong connections and local know-how
including relevant access to land,
industrial sites, local CO2 providers, etc.

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Summary

Joule invented CO2-recycled fuels

Mitigates CO2 Emissions, Captures Tax & Carbon Incentives

A Broad Proprietary Technology With Strong IP

Highly Experienced Management Team In Place

Launched in 2008 - $200m Investment To Date

Main office in Bedford, MA, USA; Demonstration facility in

Hobbs, NM, USA

124 Employees, Including 27 PhDs

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Continuous Awards and Recognition

In the whole of the renewable space,
there is no renewable fuel with higher
productivity metrics than Joules.we
continue to be astonished by the
progress, astonished by the
technology - March 2015

With new funding, Joule is a little

closer to making biofuels as common
as petroleum. - May 2015

If Joule succeeds in
commercializing its green gold, it
would mean fuel that doesnt need
to be mined, fracked or grown,
and no CO2 emissions. - May 2015

World Economic Forum

Top 10 Emerging Technologies 2013

Bloomberg

World Economic Forum

Wall Street Journal

New Energy Pioneer 2013

Technology Pioneer 2012

Technology Innovation Awards

Top award for Energy 2011
Silver overall 2011

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International Patent Portfolio Allocation

64 Combined Patents (45), Validations (16) and Allowances (3)
Patent pending in 32 countries

Europe 21

28
US
Mexico 6

China 4

Australia 5

64 Issued Patents, Validations and Allowances

CA

Tier I Countries

Focus

Europe

US
Canada
Mexico
Colombia
Brazil
Europe
Israel
India
China
Malaysia
Australia

Germany
Spain
France
UK
Netherlands
Finland

Gulf
Cooperation
Council (GCC)
Bahrain
Oman
Qatar
Kuwait
Saudi Arabia
United Arab
Emirates

US

EP

MX

AU

CN

Total

Alkanes

10

22

Eurasia

EtOH

19

Chemicals

Biocatalyst
Engineering

SolarConverter

Separations

Armenia
Azerbaijan
Belarus
Georgia
Kazakhstan
Kyrgyzstan
Russian
Federation
Tajikistan
Turkmenistan
Ukraine

6
6

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1

6
1

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