Duonix Beatrice Begins Commercial-Scale Biodiesel Production Using Innovative ENSEL Technology

Flint Hills Resources and Benefuel^® Inc. announced today the
startup of the Duonix Beatrice biodiesel plant and the first successful
commercial-scale application of Benefuel’s innovative ENSEL technology.
ENSEL technology is capable of converting a range of lower cost
feedstocks such as recycled cooking oil and distillers corn oil into
high-quality biodiesel. Once fully operational, the Duonix Beatrice
plant will produce approximately 50 million gallons of biodiesel
annually. The plant has already made commercial sales of product that
meets or exceeds ASTM specifications for biodiesel.

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The Duonix Beatrice plant is the first successful commercial-scale application of an innovative technology capable of converting a range of lower cost feedstocks such as recycled cooking oil and distillers corn oil into high-quality biodiesel. (Photo: Business Wire)

The ENSEL technology uses a solid catalyst that combines esterification
of high free fatty acid feedstocks and transesterification of
triglycerides into a single step, which eliminates waste, improves
process efficiency and expands feedstock options. The product is further
enhanced by an upgraded, backend distillation process that removes
additional impurities which, when used on high free fatty acid
feedstocks such as distillers corn oil, produces a higher quality
biodiesel with superior cold weather performance.

“The start of production at Duonix Beatrice is a major milestone and a
significant step toward demonstrating the commercial-viability of the
ENSEL technology,” said Rob Tripp, Chief Executive Officer of Benefuel.
“The key question has been whether the technology can be scaled up and
applied to a large production facility, so we’re very pleased to be able
to say that production at Duonix Beatrice is now underway and the
results are very encouraging. We believe this provides us with a strong
base to grow additional production within the U.S. and worldwide.”

As an alternative energy source, biodiesel can be used in most diesel
engines, especially newer ones. In addition to producing 50 million
gallons of biodiesel, Duonix Beatrice is expected to produce a variety
of coproducts such as glycerin, which can be used as a food additive and
as a compound found in a number of medical, pharmaceutical and personal
care products.

“The ENSEL technology has the potential to greatly improve both the cost
competitiveness of biodiesel and its viability as a very clean diesel
fuel blend component that can be used in almost any climate,” said
Jeremy Bezdek, vice president of Flint Hills Resources Biofuels and
Ingredients. “Duonix Beatrice has been a tremendous proving ground for
the ENSEL technology and it establishes a platform for developing other
valued coproducts that we believe will find success in the marketplace.”

Since 2010, Flint Hills Resources and Benefuel have worked together to
test and validate the ENSEL technology for commercial-scale production.
Flint Hills Resources acquired the Beatrice biodiesel plant in 2011. The
plant was originally built in 2008, but was not finished and never
operated. In May 2013, Benefuel announced a joint venture with Flint
Hills Resources, known as Duonix, LLC, to develop domestic biodiesel
production capabilities. The Duonix joint venture was formed to leverage
Benefuel’s leading ENSEL biodiesel refining technology with Flint Hills
Resources operating experience and establish itself as a low cost
producer in the industry. Duonix Beatrice is the first joint commercial
venture from the companies.

Biodiesel produced using the ENSEL technology process ensures the final
product meets or exceeds all domestic and European biodiesel standards.

More information and photos of Duonix Beatrice can be found at www.fhrinfo.com.

About Benefuel^® Inc.

Benefuel^® Inc. is based in Irving, Texas and is a
biodiesel process technology and production company with exclusive,
patented global rights to next-generation technology for manufacturing
biodiesel and bio-lubricants. Benefuel^®’s patented ENSEL
process produces biodiesel at a substantially lower cost than
conventional methods by using lower cost, high free fatty acid
feedstocks and converting them efficiently into biodiesel and glycerin.

About Flint Hills Resources

Flint Hills Resources, LLC, through its subsidiaries, is a leading
refining, chemicals and biofuels company with operations primarily in
the Midwest and Texas. Its manufacturing capability is built upon six
decades of refining experience, and the company has expanded its
operations through capital projects and acquisitions worth more than $13
billion since 2002. Flint Hills Resources’ subsidiaries produce and
market gasoline, diesel, jet fuel, asphalt, ethanol, biodiesel,
liquefied natural gas, olefins, polymers, intermediate chemicals, as
well as base oils, corn oil and dried distillers grain.

Flint Hills Resources operates ethanol plants in Arthur, Fairbank, Iowa
Falls, Menlo and Shell Rock, Iowa, Fairmont, Nebraska, and Camilla,
Georgia. The plants have a combined annual capacity of 820 million
gallons of ethanol.

The refining business operates refineries in Minnesota (Rosemount) and
Texas (Corpus Christi), with a combined crude oil processing capacity of
more than 600,000 barrels per day. The petrochemical business includes
production facilities in Illinois and Texas. The asphalt business
produces and markets product in the Midwest. A subsidiary owns an
interest in a lubricants base oil facility in Louisiana.

The company is based in Wichita, Kansas, and its more than 5,000
employees strive to create value for customers and society. More
information about the company is available at FHR.com.

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