Cellulosic Ethanol : Pipeline

Developing A Pipeline of Commercial Projects Implementing First-Generation Cellulosic Ethanol Technology

Verenium is advancing the strategic development of a pipeline of sites in the Gulf region of the U.S. for its first series of commercial facilities.

Verenium’s Commercial Development team is actively working on developing a series of projects for 30 to 60 million gallon per year commercial-scale cellulosic ethanol facilities in the US Gulf region. Ultimately, the Company plans to expand its development globally, however, its initial focus is in the Gulf region, given the proximity to areas with strong growing conditions for high biomass dedicated energy crops and in some cases sugarcane bagasse.

As projects are being developed, critical areas of activity will focus on site feasibility, permitting, feedstock supply agreements, other commercial agreements, and financing. The current projects that the Company has under development in the Gulf region have the following key attributes:

• Energy crops and sugar cane bagasse feedstocks
• Local agricultural partners
• Good logistical interfaces
• Potential options for co-locating with other facilities

Partnerships are key

As the Company continues to develop commercial projects, bringing partners into the mix will be a critical component of the overall strategy. The goals of these partnership arrangements will be to bring additional, specialized skills into the value chain, particularly in the areas of agronomics, engineering and construction, and marketing / off take as a means for helping to both de-risk and accelerate the development of each project.

Verenium expects to continue to advance a pipeline of multiple sites, and to have its first commercial plant ready for construction by the middle of 2009.