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7.21.2008

Cars to run on fuel from household waste within two years

Press Release: 21st July 2008

INEOS has the technology to produce commercial quantities of bio ethanol fuel from landfill waste.

Second generation bio ethanol reduces greenhouse gases from car use by 90% and doesn’t use food crops in the production process.

“This is a breakthrough technology” says INEOS Bio CEO.

INEOS, the world’s third largest chemical company, announced today that it is aiming to produce
commercial quantities of bioethanol fuel from biodegradable municipal waste around two years.
INEOS’ new technology will produce bioethanol in large quantities from municipal solid waste,
organic commercial waste and agricultural residues amongst other things.

According to Peter Williams, INEOS Bio CEO, “In North America and Europe we will see
around 10% or more of petrol (gasoline) being replaced with bioethanol. Our technology
will make a major contribution to reducing greenhouse gases and the world’s need for
fossil fuels.

INEOS Bio Ethanol releases up to 90% less net greenhouse gases than petrol (gasoline). One
tonne of dry waste can be converted into about 400 litres (100 gallons) of ethanol, which can
either be blended with traditional fuels or replace them altogether, to substantially reduce vehicle
emissions.

The technology – already proven at pilot plant scale – uses a simple three-stage process. The
waste is first superheated to produce gases. Then, through a patented process, the gases are
fed to naturally occurring bacteria, which efficiently produce ethanol. Finally, the ethanol is
purified to make the fuel ready to be blended for use in cars.

Car companies have already developed engines that can run efficiently on both bioethanol and
conventional fuels. Up to now, the challenge has been that bioethanol is manufactured primarily
from food crops and this has raised concerns on price and availability.

Peter Williams says, “The fact that we have been able to decouple second generation
biofuel from food is a major breakthrough, and we expect our technology to provide cost
competitive, sustainable, renewable fuels”.

Dr. Geraint Evans is the Technology Transfer Manager for the UK’s National Non Food Crops
Centre. He says: “This is a breakthrough in two areas. Technologically because we can
use municipal solid waste. And commercially because we have the potential to produce
large volumes of bioethanol viably across the world”.

Governments, NGO’s and Municipal Authorities are already welcoming second-generation
biofuels such as INEOS Bio Ethanol that will contribute to both reducing emission of greenhouse
gases and the ever-growing waste disposal problem.

The process was developed in Fayetteville, Arkansas where Dan Coody is Mayor. He
recognises the enormous potential: “This is the right product for us, at the right time, to help
solve some of the world’s most intractable problems.

If we could use this ethanol from waste, we’re not only reducing our greenhouse gas
emissions, we’re reducing our dependence on foreign oil.”

With the technology proven at pilot scale, the next challenge is to bring second-generation
bioethanol into commercial production.

Peter Williams, INEOS Bio CEO says: “We expect to announce the location of the first
commercial plant fairly shortly and we will aim to quickly roll out our technology around
the world. We plan to be producing commercial amounts of bioethanol fuel for cars from
waste within about two years.

For more information, interviewees, VNR / B Roll, graphics and stills, please contact:
Richard Longden, (t) +44 7710 371998 (e-mail)
Mark Killick, (t) 00 44 207 978 7667 / 00 44 7836 634449 (email)
Sion Taylor, (t) 00 44 207 978 7667 / 00 44 7768 372714 (email)
Feisal Ali, (t) 00 44 207 978 7667 / 00 44 7855 958885 (email)
Geraldine McGrory (t) + 44 7870 657 531 (email)

Note To Editors :
 INEOS Bio is a new INEOS business. It was created on July 1st 2008 to commercialise and
license a highly innovative thermo-chemical and bio-chemical technology for the production
of biofuel, renewable power and chemical intermediates from a wide range of low-cost
carbon materials. Its initial focus will be the commercialisation of the World’s leading secondgeneration
bioethanol technology to serve the global renewable transport fuels market.

 Central to the INEOS Bio technology is a highly selective, highly efficient, proprietary
biochemical conversion of synthesis gas to bioethanol. The use of a natural bacterial
biocatalyst is the essential key to unlocking the value chains from low cost carbon through
synthesis gas, to fuel.

 Research on this innovative biochemical process began in Arkansas, USA in 1989. A team
of dedicated researchers took the technology from discovery through to integrated pilot plant
scale over nearly two decades. Progressive stages of laboratory development finally
culminated in the construction of a purpose built, integrated pilot plant just outside the City of
Fayetteville in Arkansas. The pilot plant has been operating continuously on a range of
waste materials since 2003. The team in Arkansas has now joined together with heritage
INEOS people to form the new, stronger, multi-disciplinary INEOS Bio team, that now has
the skills and capabilities to commercialize quickly the technology.

 The INEOS Bio second generation bioethanol technology efficiently converts a wide range of
low-cost, organic materials, including household, commercial and agricultural wastes into
bioethanol for use as a renewable road transport fuel or petrochemical intermediate.

 The INEOS Bio process comprises three main steps:
o Gasification of the prepared organic carbon material using oxygen to produce
synthesis gas. The hot synthesis gas is quenched and cleaned. Heat is recovered
to generate renewable power.
o The cleaned, cooled synthesis gas is passed into a fermentation process,
where it is consumed by anaerobic bacteria (the biocatalyst) and turned into
ethanol. The fermentation broth contains a carefully controlled mixture of nutrients
to deliver a reliably high yield of ethanol production. The bacteria achieve a very
high selectivity to ethanol. The high yield and high selectivity translate to an
outstanding process efficiency and leading production economics. The off-gas
from the fermenter is used to produce additional power and heat.
o The ethanol solution is purified to make anhydrous ethanol (>99.7% ethanol).
This is subsequently blended into gasoline (e.g. at 5% ethanol concentration for
E5 or at 85% ethanol concentration for E85 as required for the local renewable
road transport fuel market).

 Two independent life cycle assessments on the production of INEOS Bioethanol from waste
biomass both indicate that GHG savings of > 90% vs. petrol should be achieved. This
magnitude of GHG saving is significantly higher than the best performing bioethanol today.

 It is expected that the INEOS Bio technology, producing clean bioethanol will form an
important part of the overall INEOS biofuels strategy. As a technology business this sits well
alongside INEOS Enterprises, which has more than 10 years experience in the biodiesel
sector and also markets bioethanol. The INEOS Enterprises facility at Baleycourt is centrally
located in the heart of France's second largest vegetable oil producing region. The site
currently transforms 135,000 tonnes per annum of rape seed oil for supply to customers in
the fuel distribution and chemical industries. The capacity of the Baleycourt facility will
increase to 210,000 tonnes per annum by the end of this year.

INEOS is the world’s third largest chemicals company and a leading manufacturer of
petrochemicals, specialty chemicals and oil products. Comprising 18 businesses, with a
production network spanning 70 manufacturing facilities in 14 countries. The company
produces more than 40 million tonnes of petrochemicals, 20 million tons per annum of crude
oil refined products (fuels). INEOS employs 16,000 people and has sales of around $44bn.

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