BFC Gas and Electric Companies, LC, were established in 1995 for the purpose of producing a renewable fuel (biogas) from a variety of agricultural residues, energy crops and other biomass-based materials for conversion in to electricity. The plant converts approximately 150 tons per day of biomass-based materials discarded by existing and emerging agricultural, biotech and other industries. The BFC Gas and Electric plant, located on the south side of Cedar Rapids, Iowa, began operation in 1998 as part of a joint venture and ceased operations in 2006. The facility was purchased, reengineered and repowered in 2007, and placed in service in March of 2008. The BFC site is comprised of three buildings on 6.5 acres, including a 30,000 square-foot pre-engineered steel building in which the incoming fuel sources are handled and prepared for gasification in the power plant.BFC Gas and Electric's central business is the production of renewable fuel in the form of a low Btu biogas from biomass-based materials for electrical power production and for offsite uses. This "fuel flexible" facility is designed to utilize a wide variety of fuels, including (but not limited to):

• Sawmill waste
• Light paper mill rejects
• Source-separated construction demolition wood
• Energy crops such as switch grass, sweet sorghum and poplar trees
• Crop residues such as corn stalks, corncobs and out of date unsold seed corn
• Nonrecyclable low-grade paper (waxed cardboard, feed ingredient bags, carbon paper, etc.)
• RR Ties
• Clean C&D Waste

BFC Gas and Electric converts bio-based materials into a renewable fuel once they pass certain tests of combustion characteristics. In this plant, bio-derived materials are converted into a low Btu gas via gasification, a process that "cooks" the material in a low oxygen environment to drive off volatiles, converting the material into a flammable gas and char. This gas is used to produce steam to drive a turbine generator. A portion of the heat is used for a drying on site. In addition, the company is developing a technology to clean, cool and compress a portion of syngas so it may be used for off site applications. BFC Gas and Electric's output product is standard electricity sufficient to power approximately 4000 homes. The facility also produces steam at industrial-grade temperatures and pressures. At this point, steam produced is used for electrical generation, but a portion could be directed to a steam host if the opportunity arises. Once materials are tested and found acceptable, BFC Gas and Electric will contract with the customer to accept its materials. BFC Gas and Electric currently has in place contracts with 50 companies. The plant operates 24 hours-a-day, seven days-a-week and can arrange to accept materials at any time. BFC Gas and Electric provides services to agricultural, biotechnology and other companies which produce off-spec or out-of-date by-products as a result of their own internal processes. Some of these materials are highly confidential results of research and development programs and have strategic value to the company�s future competitiveness. BFC Gas and Electric provides to companies a way to assure the complete destruction in an economical and environmentally correct way in its highly secure facility. Cedar Rapids Plant Our customers include some of the largest global agricultural bio-tech companies. They are moving rapidly into genetic modified organisms (GMOs) and pharmaceutical grade products. In this highly competitive marketplace, a reliable and confidential disposal option for these specialized products from lab and production facilities is vital to the strategic positioning of these companies. We are able to provide specialized handling and tracking services for processing highly confidential genetic discoveries. In addition, BFC Gas and Electric has the ability to take in renewable energy crops (e.g., switchgrass, cornstalks) for energy production. BFC Gas and Electric is in the process of converting its biomass feedstocks into a clean compressible gas that can be used in a number of applications including but not limited to: transportation, agricultural drying and industrial heat.