MAY 2009

Valero Energy to accelerate production of green gasoline

Terrabon, L.L.C., a technology developer of green gasoline from landfill waste, announced that the leading petroleum refiner in the United States, San Antonio-based Valero Energy Corporation, has funded the first installment, as lead investor, in Terrabon's current round of equity financing.

Terrabon will use the financing to accelerate the commercial deployment of its unique acid fermentation technology that converts readily available, low-cost biomass (including municipal solid waste from landfills) into chemicals that can be processed into renewable green gasoline.

Terrabon is currently in the start-up phase of its Advanced Biofuels Research Facility in Bryan, Texas, which will confirm the commercial feasibility of the Company's MixAlcoâ„¢ technology. MixAlco is an advanced bio-refining technology, developed in cooperation with Texas A&M University, which converts low-cost, readily available, non-food biomass into valuable chemicals such as acetic acid and ketones that can be processed into gasoline.

This gasoline is not ethanol. It has a higher energy value than ethanol, as comparable to regular gasoline, and can be blended directly with regular gasoline.

Valero's previous investments in renewable fuels technologies include work with biofuels companies and the purchase of seven ethanol plants in the Upper Midwest.