Introduction slide 2

ALGAE 2020: Next Generation Biofuels and Commercialization Outlook

Will Thurmond

President, Emerging Markets Online

National Algae Association Chairman, Research & Development
Author, Biodiesel 2020: A Global Market Survey

Presenter
Will Thurmond President, Emerging Markets Online
http://www.emerging-markets.com

Consultant, Global Biofuels Business Development

Author, Biodiesel 2020: A Global Market Survey (2008) Algae 2020: Next Generation Biofuels (Jan 2009)
Columnist, Biofuels International HQ - Houston, TX

ALGAE 2020: NEXT GENERATION BIOFUELS

Algae Market Potential and Applications
Biodiesel Ethanol Aviation Fuels Renewable Diesel Biocrude Biogasoline

Algae Production Methods Overview

Production Systems Overview: Open Ponds vs Closed Photo Bioreactor Systems (PBRs), Growing Algae in The Dark Inputs for Algae Systems CO2 and NO2 Extraction Methods Biorefining Technologies 1st Gen & 2nd Gen

Algae Project Profiles and Case Studies

Coming in January 2009

Outlook for Commercialization: 2010-2015

ALGAE 2020 STUDY AND COMMERCIALIZATION OUTLOOK

Today Presentation:
1.

Algae Markets for Biodiesel, Ethanol, Biocrude, Aviation Fuel Algae Production Systems Overview Company Profiles & Case Studies Commercialization Outlook to 2020

2.

3.

4.

1. ALGAE MARKET POTENTIAL

What Are They Key Drivers of Global Biofuels Market Growth?

Government Mandates

Energy Independence
KEY DRIVERS OF GLOBAL BIODIESEL MARKET GROWTH

Tax Incentives

Economic Security

National Security

Environmental Security

Source: Biodiesel 2020: A Global Market Survey

EU BIODIESEL MARKET GROWTH TRENDS

EU Biofuels Targets
Target 2 - 5.75% by 2010 Proposals: 10% by 2020 (EU Revision) Feedstock sustainability concerns #1 for 2009

EU Algae Market Potential

More than 50% of cars run on diesel PROBLEM: Europe can not produce enough rapeseed, sunflower to meet targets OPPORTUNITY: Algae can serve as a feedstock for FIrst Generation Biodiesel and Ethanol Plants, Aviation Fuels Markets and Biocrude for Biogasoline

SOURCE - BIODIESEL 2020: A GLOBAL MARKET SURVEY

EUROPE BIODIESEL MARKET GROWTH TRENDS

Emerging Markets Online

OPPORTUNITY
Feedstock Shortages of Rapeseed in EU Algae Can Bridge Production/Capacity Gap

USA BIODIESEL MARKET GROWTH TRENDS

USA Biofuels Targets

Federal RFS 36 billion gallons by 2022 22 Billion Gallons from 2nd Generation Fuels

US Algae Market Potential

US Military is #1 Consumer of Diesel Fuel in The World Industrial Diesel markets represent 25% of petrol consumption More than 95% of passenger cars use gasoline, 3% on diesel PROBLEM: The US can not produce enough corn and soybeans to meet targets, even with cellulosic corn OPPORTUNITY: Algae can serve as a feedstock for First Generation Biodiesel and Ethanol Plants, Aviation Fuels Markets and Biocrude for Biogasoline

SOURCE - BIODIESEL 2020: A GLOBAL MARKET SURVEY

USA BIODIESEL MARKET OVERVIEW

Emerging Markets Online

OPPORTUNITY
Feedstock Shortages Algae Production

SOURCE - BIODIESEL 2020: A GLOBAL MARKET SURVEY

Market Potential: Algae For Biofuels

ALGAE - BASED BIODIESEL

Comparison of Algae vs. other Feedstocks for Biodiesel Production Per Acre

2008 + Trend Towards Super Sized Projects Using Lower Cost Feedstocks

Renewable Diesel from Biocrude, Grease, Chicken Fat and Eventually Algae

Applications for Algae to Biofuels Multiple Uses

Biodiesel
Biomass for Power Generation Carbon Capture from Coal Power Plants

ALGAE
Bio-Crude to Renewable Diesel
Bio-Crude to Biogasoline Bio-Crude to Bio-Ethanol

Source: Biodiesel 2020 study, Emerging Markets Online

FEEDSTOCK TRENDS BIOCRUDE - MANY FEEDSTOCKS, MANY APPLICATIONS

Algae to Diesel and BIOCRUDE Via Renewable Diesel Technologies

Renewable Diesel Technologies

Pyrolysis

Gas To Liquids

Fischer-Tropsch

Green Crude and Renewable Diesel from Algae

2. ALGAE PRODUCTION METHODS

Algae Growth Systems Common Method 1 of 2 Open Ponds and Raceway Systems

Diagram Algae Farm Using 64 Open Pond Raceways to Grow Algae Raceways

Source: citation from analysis in Biodiesel 2020 study, Emerging Markets Online

Algae Growth Systems Common Method 2 of 2 Photo Bio Reactor Systems

A Photo-Bioreactor in Translucent Tube from GreenFuels Photo-

Global Green Solutions/Vertigro Vertical Photo Bioreactor System Solutions/Vertigro

Source citations mentioned in Biodiesel 2020 study, Emerging Markets Online

Applied Algae Production Systems

Algae to Biodiesel, Ethanol, Biocrude and Jet Fuel

Applied Systems Algae for First Generation Biodiesel or Ethanol

Process Diagram: Algae Production for Oils to Biodiesel and Sugars to Ethanol

Algae fats/lipids can be converted to biodiesel, sugars converted to ethanol

Source: cited in Biodiesel 2020 study, Emerging Markets Onlinec

Applied Systems Algae to 2nd Gen Bio-Crude for Petroleum, Aviation Fuels Process Diagram: Algae Conversion to Biomass, Then Bio-Crude Oil

Source: cited in Biodiesel 2020 study, Emerging Markets Online

Applied Systems C02 Capture for Algae to Biofuels Using CO2 to Produce Biodiesel, Ethanol in A Bioreactor System

Source: GreenFuels, cited in Biodiesel 2020 study, Emerging Markets Online

3. ALGAE PROJECTS AND CASE STUDIES

#1- PUBLIC-PRIVATE PARTNERSHIPS IN R&D

R&D Laboratories Collaborative Projects for Defense and Aviation

Algae to Biofuel and Bio-Crude for Planes, Trains, Automobiles, Ships

DARPA and UOP Algae to Biocrude Using UOPs Hydrotreating Technology to create Aviation Fuel for Defense, Commercial Airlines
Source: Biodiesel 2020 study, Emerging Markets Online

R&D Laboratories Collaborative Projects for Defense and Industry

Algae to Biofuel and Bio-Crude for Planes, Trains, Automobiles, Ships

National Renewable Energy Lab and Chevron

Source: Biodiesel 2020 study, Emerging Markets Online

R&D Laboratories Collaborative Projects for Defense and Industry

Algae to Biofuel and Bio-Crude for Planes, Trains, Automobiles, Ships

Natural Energy Laboratory (NELHA) Hawaii, Shell, HR Biopetrol

Source: Biodiesel 2020 study, Emerging Markets Online

R&D Laboratories Collaborative Projects for Defense and Industry

Algae to Biofuel and Bio-Crude for Planes, Trains, Automobiles, Ships

Sandia National Labs and LiveFuels

Source: Biodiesel 2020 study, Emerging Markets Online

#2 - PRIVATE COMPANIES INVESTING IN ALGAE

Private Companies: Algae Projects Reported Under Development High-Yield, Non-Food Oil, Non-Ag and Non-Rainforest areas, Low Water Use

Solazyme Green Star Products, Inc. Algae BioFuels Icon Energy Inventure Aquaflow Bionic Corporation Valcent / Vertigro Joint Venture Enhanced Biofuels & Technologies Kwikpower International Bio Fuel Systems

Solix PetroAlgae Seambiotic LiveFuels Inc GreenFuel Technologies Corporation Infinifuel Biodiesel Algoil OriginOil Alga Technologies SQC

Source: Biodiesel 2020 study, Emerging Markets Online

GREEN FUELS, INC Turning Coal-Fired CO2 into Algae for Biofuels
Working With MIT on Photo Bio Reactor Systems with Coal Plants for CO2

A Photo-Bioreactor in a Translucent Tube-Farm from GreenFuels Sequestering and Utilizing CO2 from Coal Fired Power Plants
Source citations mentioned in Biodiesel 2020 study, Emerging Markets Online

SAPPHIRE ENERGY Green Crude for Petrol Refineries, Aviation Fuel

Photo Bio Reactor Systems Green Crude Photo Biocreactor Systems

Sapphire produces Green Crude for petrol refineries and aviation fuel and recently raised $100 Million from Bill Gates & Rockefeller Foundation
Source citations mentioned in the ALGAE 2020 STUDY, Emerging Markets Online

SOLAZYME
Growing Algae in The Dark Converting Sugar to Lipids/Oils for Biocrude

Solazymes Biodiesel Mercedes

Growing algae in the dark

Solazyme Grows Algae in The Dark Converting Sugar to Lipids/Oils Solazyme has already raised $70 million in capital, including Chevron as a key investor Solazymes fuel has met ASTM Standard D 1655 For Aviation/Jet Fuel
Source citations mentioned in ALGAE 2020 study, Emerging Markets Online

ALGENOL Turning Algae into Ethanol

Algenols Algae to Ethanol Process Diagram

Algenols Algae to Ethanol system using seawater and Coal-Fired CO2

Source citations mentioned in ALGAE 2020 study, Emerging Markets Online

GLOBAL GREEN SOLUTIONS - VERTIGRO

Photo Bio Reactor Systems Vertical Photo Biocreactor Systems

Global Green Solutions/Vertigro Vertical Photo Bioreactor System

Source citations mentioned in Biodiesel 2020 study, Emerging Markets Online

ORIGIN OIL
Unique Lighting Technologies for Use in Photo Bio Reactor Systems

Origins Helix Bioreactor

Origin Oils Algae production system using a quantum fracturing unit and a unique lighting system in a Helix Biocreactor

Source citations mentioned in ALGAE 2020 STUDY, Emerging Markets Online

ALGAE COMMERCIALIZATION OUTLOOK

ALGAE BIOFUELS MARKET OUTLOOK AND OPPORTUNITIES

Timeline for Commercialization of Algae for Biofuels

2009 Algae Research and Development Projects Mature 2010 Algae Pilot Projects and Demonstration Projects Arrive 2011 First Algae Production Projects Arrive (Defense/Govt contracts) 2012 First Commercial Projects Arrive (Expensive at first, then cheaper) 2013 Commercial Production Scales Up (Cost curve decreases) 2015 Increased Production, Competition Lowers Costs, Market Share Up 2020 Algae Becomes a Mainstream Commodity for Biocrude, Ethanol

Source ALGAE 2020 STUDY, Emerging Markets Online

Algae Farms - A Look at The Future

High-Yield, Non-Food Oil, Non-Ag and Non-Rainforest areas

Source: Solix Biofuels

Another Look at The Future - Algae Farms

Large-Scale Photo Bio-Reactor Farm Illustration by Cequesta

Source: Cequesta Israel, cited in ALGAE 2020 STUDY

For more information

Contact: Will Thurmond

President, Emerging Markets Online
Author, Biodiesel 2020: A Global Market Survey (2008) Author, Algae 2020: Next Generation Biofuels (Jan, 2009)
National Algae Association - Chairman, Research & Development American Biofuels Council - Chairman, Development Columnist, Biofuels International & Biofuels Digest Email Web: willthurmond@gmail.com www.emerging-markets.com