GS Caltex Corporation

1. GSCaltex Corporation August 2012 R&D Center GS Caltex Corporation KOREA

2. Chevron Caltex GS Caltex Overview The first private oil company in Korea as a JV between GS Holdings & Chevron in 1967 Chairman & CEO : Dong-SooHur, Ph.D. Sales revenue(2011) : USD 42 billion / Operating Profit(2011) : USD 1.8 billion Implemented energy business diversification and vertical integration 50% 50% Refining & Marketing Petrochemicals Lubricants Upstream Subsidiaries & Affiliates More than 10 companies for Power Supply, City gas,& New & Renewable Business, etc.

3. Introduction of R&D Center Vision : Leading the future with global outstanding technology R&D pursuits at GSCaltex cover future-oriented new businesses such as new energy sources, high-efficiency energy devices and advanced materials as well as the traditional fields of oil refining and petrochemicals Boasting state-of-the-art equipment and high-caliber R&D staff, the R&D Center explores new businesses through ongoing research to drive the future growth of GSCaltex Petroleum & Petrochemicals Energy Source Advanced Material Energy Device Green Solution • Thin-film Battery • Electrode material for rechargeable batteries • Carbon material for EDLC • Hydrogen/fuel cell • Waste-to-energy • Charging infrastructure for electric vehicles • Solar Cell • Biofuel • Biochemical materials • Carbon fiber • Petroleum product • Lubricant product • Petrochemical product, etc.

4. Chemicals Bio Business of GS Caltex Commercial production of biodiesel and investigation of a new bio-project by various R&D activities Bio Business and Projects • Biofuel for Diesel • Mandatory use of biodiesel from 2012 in South Korea • GS Bio, our subsidiary company currently producing biodiesel (Capa. : 100,000 ton/yr) at Yeosu refinery complex in South Korea • Biofuel for Gasoline • Biobutanol process development in accordance with future governmental policy Energy • Biopolymers • Development of renewable or biodegradable polymers using bio-based intermediates production (Nylon 4, PTT, etc) • Value added chemicals • 2,3-Butanediol production from biomass and development of its derivatives (e.g. butadiene) • Finding new application of crude glycerin, a by-product from biodiesel production

5. Bio Strategy and Activities • Bio-Strategy • Support and Supplement for existing oiland petrochemical industry with bio-based energy and products • Transformation of low-value by-products(or wastes) into high value added products • Pre-emptive response to government policy • Open Innovation • Strategy for strong buildup of technical value chain and timely, effective development • Global network utilization including university, research institute, company, etc • Collaboration with feedstock suppliers, plant owners for renovation needs, and people who are interested in commercial co-production and joint marketing • Main Activities • Core technologies development such as strain, fermentation, separation, and pretreatment • Integrated process optimization of core technologies • Process design and engineering for commercial scale up

6. What is Biobutanol? • Biobutanol is a valuable product as chemical and fuel • Substitute for petroleum based butanol • An advanced biofuel that has many benefits over ethanol • As transport fuel • High Energy Density • Low Water Solubility • Low Corrosive • Low Vapor Pressure • Issue of biobutanol commercialization • Low final butanol concentration ( < 20 g/L) • Low butanol productivity ( < 0.5 g/L/hr) due to low cell density • Low yield of butanol due to hetero-fermentation (0.28~0.33 g/g) • High cost of butanol recovery from low-concentration yields Biobutanol • GS Caltex develops proprietary bacteria and process for biobutanol production!!

7. Biobutanol Development-Microbe • Strain Development • Keysuccess factor to increase production performance such as yield, titer, productivity, and selectivity • Eliminating co-production pathway of acetone and ethanol (approx. 40% of final products) • Various types of genetically modified strains with breakthrough performance secured • Ready for the commercial production of biobutanol Glucose High yield High rate High titer Low byproducts Functional pathway Cofactorbalanced Co-products eliminated X Acetate Ethanol Ethanol Acetone X • GS Caltex’s biocatalysts are microorganisms that have been designed to metabolize various sugars to produce biobutanol Butyrate X Butanol

8. Biobutanol Development-Process • Process Development • Continuous fermentation process using in-situ butanol recovery with high yield and productivity • Our technologies are at a world-leading level : high performance microbe, high productive bioreactor and separation process with low energy consumption • For energy saving, dehydration process is ideally combined with membrane and distillation • Integrated process and optimization could be developed by simulation techniques and engineering know-how • Basic design for commercial biobutanol plant is almost completed • Patent • More than a dozen of patents and patent applications for the innovative biobutanol process Process Engineering Fermentation Separation System

9. Biobutanol Pilot Plant • Our Pilot Plant • Capacity : 30,000 L/yr or above • Fully integrated system : fermentation, butanol recovery, water separation and products purification equipments • Location : R&D Center of GS Caltex, Daejeon-city, South Korea • Funded from a Korea government

10. Lignocellulosic Biomass Utilization • Development progress for utilizing 2nd generation biomass • Overcome the ethical concerns of food (1st generation biomass) as fuel • Reducing the production cost of biofuel and biochemical in the near future • Conducting a research on applications of various types of biomass to produce biomaterials and co-working with SUDOKWON Landfill Site (capital region of Korea) Management Corp (waste wood) • Pretreatment issues for cellulosic biomass • Considering a variety of pretreatment technologies such as acid, base, and enzyme • Reviewing process for low operating costs and capital expenses, as well as high yield of hydrolysis Pretreatment Dilute acid, Base, Enzyme, etc • Construction waste wood sorting facilities • (SLC, Korea) • Solid sugar • or Sugar syrup • Lignocellulosic materials

11. 2,3-Butanediol Development • What is 2,3-Butanediol? • One of the constitutional isomers of butanediol, catalyzing to Butadiene and MEK (methyl ethyl ketone) • Produced by microbial fermentation from various biomass, including molasses, starch, lignocellulosic materials, and crude glycerol • Our status for 2,3-Butanediol • New robust genetically engineered strains, producing 2,3-Butanediol as similar levels of ethanol with respect to titer, yield and productivity • A novel and effective 2,3-Butanediol recovery process using solvent extraction • A novel dehydrating process from 2,3-Butanediol to Butadiene and MEK using self-developed catalyst Fermentation Catalytic process MEK 1,3-Butadiene 2,3-Butanediol 2-Butene Biomass