1. INDUSTRIAL INNOVATION IN KAZAKHSTAN: A Case History New Technology = New Opportunities Paul Rodzianko, Senior Vice President Access Industries, Inc. September 9, 2005 San Diego

2. Case History Summary Update New Technologies = New Opportunities December 2004 - Introduction of the GreenFuel Technological Platform by Access before President Nazarbaev at KFICA Plenary in Astana. 1 st Half 2005 - As mandated by the President, organization of Access and ministerial and local government working groups. 2 nd Half 2005 - Assess local conditions and econonic constraints; added focus on pre-treatment and Azima. 4 th Qtr. 2005 - GreenFuel to fund flue gas pre-treatment test in US prior to field demonstration in Ekibastuz. A work in progress: Next report will be made at the next KFICA Plenary in Astana with testing to begin in 2006.

3. Mission: To recycle carbon profitably from combustion exhaust using GreenFuel's advanced algal biotech Products/markets range: From biodiesel to dispatchable green power, from bioplastics to food supplements, etc. Technology platform cluster: Azima, Gas Pre-treatment, Photo-voltaics, etc. Mission + Products/Markets + Technologies = PROFITS + OPTIONALITY A smart competitive edge designed to enhance shareholder values.

4. Innovation in Kazakhstan – a case history The GreenFuel Platform

5. ….met all transformational criteria…. potential for a revolutionary worldwide paradigm change wherever combustion takes place. Current thinking: CO 2 represents bad air quality and will cost a fortune to address (Kyoto); NOx removal is legislated but increasingly costly. GreenFuel thinking: treating CO 2 as a valuable feedstock, one can improve air quality at a profit!

6. Profitability monetized in form of: CO2 reduction (and sale of CO2 allowances) Biofuel production (and sale) NOx reduction (and sale of NOx allowances) Renewable energy credits (RECs) generation (and sale) Energy Source Flue Gases Cleaned Gases GreenFuel System SUNLIGHT Algae Biodiesel Biogas Dry biomass Bio-oils

7. Sunlight Flue gas in Flue gas in Algae digests CO 2 & NO X Scrubbed flue gas Algal biofuel out

8. Fuel Carbon (100%) Fuel Carbon (60%) Biomass Carbon (40 %) Flue Carbon (50%) Flue Carbon (50%) Energy Source Flue Carbon (100 %) Fuel Carbon (100%) Biomass Carbon ( 40%) Energy Source Clean Gases Algae Biomass Carbon Open Carbon Cycle Closed Carbon Cycle

9. Patent Pending intellectual property: Technology for algae adaptation –From $26M NASA project for Int’l Space Station Field bioreactor design that is: –Inexpensive to manufacture –Inexpensive to operate Analytical method for optimally exposing algae to sunlight  Eleven patents pending, more to follow, resulting in additional technology options:

10. Addressing the preventative maintenance needs of GreenFuel and beyond…. Value proposition differs from GreenFuel GreenFuel was Azima’s 1 st commercial customer Transforms equipment monitoring and risk based maintenance through online technology and knowledge leadership

11. Internet The System Client personnel Azima experts Wired or wireless data transfer Sensors wake up on a predetermined basis Internet Server 11 Wireless Shop Floor Data Acquisition Video Surveillance Wireless VoIP

12. Monitoring and diagnostic expertise for all major rotating equipment including: Turbines Compressors Cranes Pumps Motors Fans Gearboxes Equipment Monitored

13. Lowers maintenance costs: Monitoring at will: all detectable problems caught. Provides specific technical diagnosis: Raw data interpreted on-line access by world-class predictive maintenance experts. Corporate-wide maintenance approach: Efficient - eliminates multiple vendors, e.g. the piecemeal approach. Centralized management of maintenance risk Accountability. Benefits of the Solution

14. Innovation – a continuing process Responding to challenging coal flue gas conditions specific to Kazakhstan: Flue Gas Pre-treatment technology (as reported to President at KFICA) Opportunity to increase solar efficiency of GreenFuel installations: Dual-use of photo-voltaics with bioreactors

15. Innovation in Kazakhstan – defining the right value proposition Change is often resisted Each technology has different requirements for successful commercialization “Risk/reward” profile has to be understood Challenges of market penetration Technological vs. commercial success Not all efforts will succeed – OK to fail BUT KEEP ON MAKING THE EFFORT – there is $money$ in savvy technological innovation!