The following presentation contains forward thinking and may change as time moves ahead' We are not

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Disclaimer
The following presentation contains forward
thinking and may change as time moves ahead. We
are not specifically looking for investors at
this meeting, it is for informational purposes
only.
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The purpose of this presentation is to give
information so that you can be informed on an
environmentally correct process of making Green
products that presents an economic opportunity
for South Dakota and this region. It will cover
the following topics

• Carbon dioxide emissions and their effect on
  global warming
• Production of fuel without carbon dioxide
  emissions
• Advantages of small biorefineries VS large
  refineries
• Economic impact for South Dakota
• Upstream Carbon Offset Program that will
  stimulate and promote Green energy

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Carbon Dioxide Emissions

• Religious sectors in this country are concerned
  about global warming caused by carbon dioxide
• All Presidential candidates are addressing global
  warming
• Obama and Harkins have introduced legislation
  dealing with CO2 emissions
• Minnesotas legislators are talking about a low
  carbon fuel standard
• There could be State or Federal taxes on CO2
  emissions
• Rural Energy Marketing is pushing for legislation
  in Minnesota using the Upstream Carbon Offset
  Program
• On December 2 ABC News had retired Generals and
  Admirals warning that if the United States
  doesnt do something about global warming, we
  will be dragged into global war
• An Inconvenient Truth by Al Gore is a movie
  dealing with the Greenhouse Effect on the planet.
  This movie won Al Gore a Nobel Peace Prize.
• The bottom line is that future carbon dioxide
  emissions will be a liability while processes not
  producing carbon dioxide will have an asset.

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Global Warming
Infrared rays are trapped by carbon dioxide
warming the earth. The equator has increased in
temperature by 2 degrees. The poles have
increased in temperature by 12 degrees.
Infared Rays
CO2 From burning fossil fuels
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http//www.freerepublic.com/focus/f-news/2009401/p
osts
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Production of Petroleum Products from Oil
Sands Similar to Large Refineries
Mine Sand
CO2 to Atmosphere
Heat Sand
CO2 to Atmosphere
Refine Oil
CO2 to Atmosphere
Burn Fuel
CO2 to Atmosphere
For every gallon of gasoline consumed, 19.2
pounds of carbon dioxide is emitted. This leaves
a positive carbon footprint. Net Product Global
Warming
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Production of Petroleum Products from South
Dakota Corn Stover Similar to Vermillion Plant
Oxygen is produced over the plants life cycle
Grain goes to food
Roots turn into organic matter and sequester
carbon dioxide in the soil
Stover goes to a bio-refinery to produce fuel
Carbon dioxide is a food source for the feedstock
Fuel provides energy to propel the world.
CO2
Net Product Oxygen
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Future of the Corn Plant
40 of the plant material is above ground.
Plant material (corn stover) for fuel
We use 70 of the above ground portion, meaning
we use only 28 of the overall plant material.
Grain for food
60 of the plant material is below ground.
Roots sequester carbon in the soil
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Value of Stover
Estimated 1st year
Value of Equivalent
Available Nutrients Commercial Fertilizer
Injected or Surface
Injected or Surface
Incorporated Applied Incorporated
Applied Nitrogen 8lb
3lb 5.60 2.10 P205
2lb 2lb 1.84
1.84 K20 12lb
12lb 6.96 6.96 Total
Value
14.40 10.90 Value/ton based on
Commercial Fertilizer Costs as of 4/15/08
Nitrogen - 0.70/lb. P205 - 0.92/lb. K20 -
0.58/lb.
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28 Year University of Connecticut Study
(Hooker ET AL. Tillage and Corn Stalk Return
Affecting C Dynamics)
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The feedstock contract addresses

• Rented land changing hands
• Owned land being rented or sold
• Retirement
• Health issues
• Price and Freight rates
• No crop due to natural disaster
• Quality control
• First rights of investment and purchase of diesel
  fuel and potentially nitrogen fertilizer if made
  at this site
• Non-Compliance

Contracts can be found in the back of the room
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Corn Stover
Fermentation vs
Thermo-Chemical

• 1/3 of the carbon in corn stover is released as
  CO2
• Outside source of heat needed to run the process
• 1 BTU to produce 2 BTU
• Dirt causes bacteria in the fermenters which
  kills microbes that produce ethanol
• 33 of the BTU from the feedstock is recovered

• All carbon in corn stover is captured in the
  process
• Exothermic reaction that produces its own heat,
  therefore only needing a heat source for startup
• Dirt doesnt effect the process
• 76 of the BTU from the feedstock is recovered

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Pilot Plant
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Diagram for Patenting Bio-fuels Plants
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Plant Size

• Green Fuels L.L.C. will need 60,000 to 70,000
  acres of contracted stover production
• It will need 400 to 500 tons per day of corn
  stover (800 to 1,000 bales)
• It will produce from 14,000,000 to 17,500,000
  gallons per year
• The products are F-T Diesel, Gasoline, Kerosene,
  and Wax.

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Premier Sites in South Dakota
Yankton
Yankton County Potential Irrigated
44,859 Potential Dry Land 29,662 Corn Acres
74,521
Vermillion
Elk Point
Clay County Potential Irrigated
62,046 Potential Dry Land 23,000 Corn Acres
85,046
Union County Potential Irrigated
38,144 Potential Dry Land 55,000 Corn Acres
93,144
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Vermillion Site
Site
Water Access
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South Dakotas Potential
South Dakota holds 12,705,000 tons of corn stover
on 5,000,000 acres of corn. These tons could
produce 1,270,500,000 gallons of biofuels in
South Dakota in as many as 70 processing plants.
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Employment for South Dakota
Biofuels Plants 100 potential jobs per plant
between processing and harvesting feedstock. 70
potential plants 7,000 jobs generating roughly
280,000,000 of income
Large Refineries 1800 jobs processing oil
generating roughly 90,000,000 of income
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Fuel Cost of Feedstock
And How Much Stays in South Dakota
Biofuels Plants 12,705,000 tons of corn stover in
South Dakota garnering 70 per ton. The total
cost from these tons is 889,350,000, all of
which stays in-state. Farmers will get this money
and spend it in local areas.
Large Refineries 140,000,000 barrels of oil per
year garnering 130 per barrel. The total cost
is 18,200,000,000, all of which is sent to
foreign countries. This money doesnt stay in
circulation in South Dakota.
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Carbon Footprint
Biofuels Plants This biofuel plant has a minimal
carbon footprint because the fuel burned in the
plant or engine is made from plant feedstock and
the carbon dioxide goes back to plants growing
the next year. There is zero cost for carbon
dioxide
Large Refineries Produces 54,220,000 tons of
carbon dioxide refined oil products. In
addition, it produces 83,538 tons of carbon
dioxide fueling the plant with over 50 megawatts
of power. There could be over 1 Billion cost
for carbon dioxide
Conclusion With Carbon Credits, Green Biofuels
Plants can be even more competetive with large
refineries.
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Profit
Biofuels Plants The potential profit per plant is
between 5,000,000 and 25,000,000, or an average
of 15,000,000. With 70 processing plants there
is a profit of 780,000,000. If South Dakotans
own 50 of the project, they will profit
390,000,000
Large Refineries The potential profit is
1,400,000,000 to 3,500,000,000, with an average
of 2,450,000,000. How much of this profit
actually stays in-state?
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Waste Heat Potential
Biofuels Plants Biorefineries located next to
South Dakota towns may some day capture waste
heat for use in churches, schools, sports
complexes, and industrial manufacturing
facilities to sustain towns.
Large Refineries There will be no waste heat
recovery because the infrastructure involved is
not economically viable.
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Green Fuels L.L.C. Business Plan

• Financing
• Seek Local Investors
• Seek In-State Investors
• Seek Venture Capitalists from Outside of South
  Dakota

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1,000,000 BTU Natural Gas 8 1,000,000 BTU Green
Gas w/ Subsidy 14 1,000,000 BTU
Ethanol 31.50 1,000,000 BTU Gasoline 26.44 1
,000,000 BTU Green Renewable Diesel 32.84 1,000,0
00 BTU Diesel 25.70
These green products all fight for the same
feedstock. How can green natural gas compete
with the figures for ethanol and green renewable
diesel? UCOP will also encourage the production
of electricity from coal with carbon dioxide
removal, no-till farming, and nitrogen fertilizer.
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CONSUMERS are free to chose own method to reduce
fuel costs while benefiting from UCOP induced
efficiencies and innovations that reduce their
total annual energy costs.
Upstream Carbon Offset Program (UCOP)
Cost of fuel incorporates cost of CO2 offsets
Fuel deliveries to consumers
Fuel suppliers deliver Offset Certificates to
UCOP regulator for retirement.
(4) UCOP Regulator at Dept. of Commerce oversees
compliance with offset targets, project
certification, and audits all UCOP based
financial operations
Fossil Fuel Suppliers apply mandated CO2 offset
percentages incorporate the cost in the price
of fuel sold. They purchase certified offsets
from the market either directly from Project
Owners, or through privately held Clearing House
Fuel suppliers can purchase offset certificates
from Clearing House or directly from project
owners.
(3) Dept. of Commerce publishes table showing
CO2 content of various fossil fuels (can use IPCC
figures, or can be precisely specific to
local-fuels.)
Clearing House buys Certified Emission Offsets
from project owners, sells the certificates to
Fossil Fuel Suppliers. Offset price per ton of
CO2e is set by free-market supply demand.
(2) Legislature sets percentage CO2 reduction to
be offset for the coming year.
Biodiesel from biomass or waste fats
Energy Efficiency insulation, bulb exchange,
electricity co-generation, etc
Non-fuel based CO2 reduction cement sector,
fertilizer, etc
Biogas from methane digesters, landfill gas,
biomass gasification, etc.
Coal fired utility capturing and sequestering CO2
Farmer No-tilling 1,000 Lbs of CO2 reduction per
acre
Examples of CO2 Lowering Projects That Generate
UCOP Offsets
(1) State or National Legislature passes UCOP
bill.
Ethanol plant making its own fuel
Cellulosic Ethanol Plants
Wind Farms
Energy with no surcharge
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Change of a Utility Bill with UCOP Program
Figured for a Family of Four

• Cost of Carbon Dioxide is 20 per ton
• Electric Bill up 2.29 per month
• Gas Bill up 3.36 per month
• Motor Fuel up 54.77 per month
• Total Carbon Dioxide Offset Cost 60.42 per
  month
• Suggested is 10 Carbon Dioxide Offset
• 10 Carbon Dioxide Offset 6.04 per month
• This is a small fee for reducing carbon dioxide
  emissions and gaining security and energy
  independence.

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Health/Welfare
Economic Stability
Environment/Global Warming
Food VS Fuel
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We will be seeking rezoning for the Green Fuels
L.L.C. site west of Vermillion. We would
appreciate your support at the rezoning
meeting. There will be future meetings to secure
the corn stover needed for the project and for
investment opportunities. Everyone is welcome to
come and participate. This presentation will be
on the web at www.ruralenergymarketingllc.com
and will be available for download. Thank you
for coming. If there are any questions we will
answer them at this time.