Algae Biomass Summit DATE: October 1, 2014 Jonathan L. Male Director, Bioenergy Technologies Office Algae Biomass Summit DATE: October 1, 2014

Outline Bioenergy Technologies Office (BETO) Overview Algae Program Research and Development Portfolio Algae Program Demonstration Portfolio Recent Awards Upcoming FOAs

The Challenge and The Opportunity More than 13 million barrels of petroleum based fuels are required daily for the U.S. transportation sector – 8.5 million barrels of gasoline for the motor vehicles alone.1 67% of U.S. petroleum consumption is in the transportation sector ($350 billion) 2 7% of U.S. petroleum consumption is for chemicals and products sector ($255 billion) 2 Relative value is much higher for chemicals and products. The Opportunity Biomass is the leading renewable resource that can provide drop-in fuel replacements utilizing existing infrastructure for light and heavy duty vehicles and air transportation1 More than 1 billion tons of sustainable biomass could be produced in the U.S. which can provide fuel for vehicles and aviation, make chemicals, and produce power for the grid. 30% of U.S. petroleum usage could be displaced using terrestrial biomass by 2030 3 This does NOT take into account algae which could provide up to 5 billion gallons/year High value chemicals and products from biomass can stimulate biofuels production. 1 Energy Information Administration, 2012 Energy Review, U.S. Department of Energy, 2013 2 Frost, John, Redefining Chemical Manufacture, Industrial Biotechnology, Spring 2005 (numbers are assumed to be annual figures for 2004) 3 Update to the Billion-ton Study, U.S. Department of Energy, 2011 For 2012 Petroleum consumption 8.5 mill barr/day gasoline, 2.7 mill barr/day distillates, 1.4 mill barr/day Jet total. Total with just 3 main components 12.6 mill barr/day out of 13 mill bar/day The title (challenge and opportunity) do not match body (challenge and potential) 13 million barrels of fuel or oil? 13 million at the top not consistent with 12M (11 + 1 million) at the bottom. Is the opportunity to replace all 13M with biomass or just 30%. Reference to 245 million vehicles does not add any thing to the message The challenge and opportunity sections are not cohesively linked Edit footnote box to create more white space 1 Energy Information Administration, 2012 Energy Review, U.S. Department of Energy, 2013 2 Frost, John, Redefining Chemical Manufacture, Industrial Biotechnology, Spring 2005 (numbers are assumed to be annual figures for 2004) 3 Update to the Billion-ton Study, U.S. Department of Energy, 2011 Bioenergy Technologies Office

Mission and Strategic Goal Develop and transform our renewable biomass resources into commercially viable, high-performance biofuels, bioproducts, and biopower through targeted research, development, demonstration, and deployment supported through public and private partnerships. Mission Develop commercially viable biomass utilization technologies to enable the sustainable, nationwide production of biofuels that are compatible with today’s transportation infrastructure and can displace a share of petroleum-derived fuels to reduce U.S. dependence on oil and encourage the creation of a new domestic bioenergy industry. Strategic Goal In general, we are using too many words to get out point across. The audience should be able to get the message from this slide in under 1 minute. Front load sentences with the key message and goal and move qualifying information to the end. Sentences are often inverted in terms of how they should be written for an audience we are trying to inform By 2017, validate a $3/GGE hydrocarbon biofuel (with ≥50% reduction in GHG emissions relative to petroleum-derived fuel) for a mature modeled price for at least one hydrocarbon technology pathway at pilot scale. By 2022, validate hydrocarbon biofuels production at >1 ton/day from at least two additional technology pathways at pilot or demonstration scale. Performance Goals

Benefits of Algal Biofuels High productivity relative to terrestrial feedstocks. Adds value to unproductive or marginal lands. Able to use waste and salt water. Able to recycle carbon dioxide. Able to provide valuable co-products, such as protein to meet animal feed needs. Produces a range of biofuels including gasoline, diesel, jet fuel, and ethanol. Potential to be a high-impact feedstock-increasing the U.S. domestic biomass feedstock production potential by 5 billion gallons per year. Supporting Sources: Source for 5 B/Y included on slide; other sources include: Venteris et al., Siting Algae Cultivation Facilities for Biofuel Production in the United States: Trade-Offs between Growth Rate, Site Constructability, Water Availability, and Infrastructure (PNNL 2014). http://pubs.acs.org/doi/abs/10.1021/es4045488 Animal Feeds: Evans, A.M., K.D. Baldock, D.L. Smith and J.S. Mortiz. (2012) Algae biomass as an energy source for animal feeds. Poult. Sci. 91 suppl Evans, A.M., D.L. Smith and J.S. Moritz (2013) Broiler diet formulation using algae biomass based on digestible nutrient content. Accepted for presentation at the proceedings of the 2013 PSA Annual Meeting in San Diego, CA Waste Water Use: Tryg Lundquist: Algae Grown on Dairy and Municipal Wastewater for Simultaneous Nutrient Removal and Lipid Production for Biofuel Feedstock (with Ian Woertz, A. Feffer, and Yarrow Nelson),Journal of Environmental Engineering (2009) Davis, R.; Fishman, D.; Frank, E. D.; Wigmosta, M. S.; Aden, A.; Coleman, A. M.; Pienkos, P. T.; Skaggs, R. J.; Venteris, E. R.; Wang, M. Q. Renewable Diesel from Algal Lipids: An Integrated Baseline for Cost, Emissions, and Resource Potential from a Harmonized Model; ANL/ESD/12-4; PNNL-21437; NREL/TP-5100-55431 Photos Courtesy of Sapphire Energy Renewable Diesel from Algal Lipids: An Integrated Baseline for Cost, Emissions, and Resource Potential from a Harmonized Model; ANL, NREL, and PNNL; June 2012.

Significant Commercialization Challenges There are two overarching challenges to reaching program costs and performance goals: Reducing costs of production. Ensuring sustainability and availability of resources. Challenges Affordable and scalable algal biomass production: Current commercial technologies are designed for production of high-value products rather than high-yielding commodity-scale products. Current facilities use high-cost liners, nutrients, and predator controls. Siting and sustainability of resources: Nutrient recycle has limited use. CO2 delivery requirements limit siting decisions. Cultivation currently requires significant water resources. Harvesting and preprocessing technologies are not energy efficient. Competition for CO2 has significantly increased its cost. Photos Courtesy Sapphire Energy

Algae Program Goals and Objectives Program Performance Goal Develop and demonstrate technologies that make sustainable algal biofuel intermediate feedstocks that perform reliably in conversion processes to yield renewable diesel, jet, and gasoline in support of the BETO’s $3/gge biofuel goal in 2022. Approach Set aggressive productivity targets (1,500 gallons of biofuel intermediate per acre annual average by 2014 – achieved; 2,500 gallons by 2020; and 5,000 gallons by 2022). Use techno-economic, life-cycle analysis, and other validated models as tools to direct research and development; evaluate performance towards goals; and down-select pathways, processes, and performers as appropriate. Leverage a strong foundation of ecology, advanced biology, and physiology to improve yield and productivity. Incorporate engineering solutions to reduce operating costs. The Algae Program goal is to develop cost-effective algal biofuels production and logistics systems. The Algae program is focused on supporting the growth of the emerging domestic algae industry and its interest in commercialization for fuels and products. Support includes the development of validated models for techno-economic, sustainability, and engineering analyses. Courtesy Sapphire Energy, LLC Photo Courtesy of ATP3 Photo Courtesy of Texas A&M

Program Approach: Integrated Research and Development The challenges and opportunities to commercializing algal biofuels production systems are broad and complex, requiring the close integration and collaboration of many scientific and engineering disciplines to bring about innovations. To achieve program goals, the Algae Program funds research and development across technology readiness levels (TRL 2-6) within a broad portfolio of disciplines across the production and logistics chain, while interfacing with the Conversion, and Demonstration and Market Transformation Programs.

BETO’s Current Algae Funding Profiles Funding By Recipient Group Funding By Technical Area This is over FY13-FY14

Hydrothermal Liquefaction Benchmarking Progress: Technology Pathway Baselines High Priority Pathways Advanced algal lipid extraction and upgrading (ALU). Whole algae hydrothermal liquefaction and upgrading (AHTL). Pathways analysis will result in national laboratory-led design case studies for the BETO to benchmark progress towards $3/gge algal biofuel. CO2 Harvest Water Recycle 1: ALU 2: AHTL Solvent Extraction Hydrothermal Liquefaction Anaerobic Digestion Wet Gasification Nutrient Recycle Hydrotreating CH4 Fuel Algae Growth Harvest Preprocess Algal Lipid Extraction and Upgrading to Hydrocarbons Technology Pathway. Ryan Davis and Mary Biddy National Renewable Energy Laboratory Susanne Jones Pacific Northwest National Laboratory. http://www.nrel.gov/docs/fy13osti/58049.pdf Whole Algae Hydrothermal Liquefaction Technology Pathway Mary Biddy and Ryan Davis National Renewable Energy Laboratory Susanne Jones and Yunhua Zhu Pacific Northwest National Laboratory. http://www.nrel.gov/docs/fy13osti/58051.pdf

Consortia Successes National Alliance for Advanced Biofuels and Bioproducts (NAABB) $50M in American Recovery and Reinvestment Act funds; led by the Donald Danforth Plant Sciences Center and included 38 partners. Results: New production strains isolated as well as genetically engineered (productivity greater than 20 g/m2/d) New low-energy, temperature regulating, open pond cultivation system (Algae Raceway Integrated Design - ARID) Electrocoagulation harvesting technology improved energy return on investment Whole Algae Hydrothermal Liquefaction (HTL) for intermediate oil production demonstrated at continuous operation at Pacific Northwest National Lab with the continuous plug flow reactor. HTL can produce renewable diesel from low-lipid, wet algae and captures > 60% of the biogenic carbon. Analysis shows combined innovations can reduce the cost of algal biofuel to $5 per gallon. Consortium for Algal Biofuels Commercialization (CAB-Comm) $9M in FY10-appropriated funds, $2M in FY14 funds; led by University of California, San Diego. Genetic engineering breakthroughs allowed for insertion and expression of desirable genes. Recent metabolic engineering of algae (diatom) demonstrated the ability to improve lipid yield without inhibiting growth. Reference NAABB Report available at BETO booth. NAABB: Jose Olivares – Plenary Session 4, 2:00-3:15 pm 10/1 CAB-Comm – N/A NAABB: 2,200 isolates screened, 30 high lipid yield strains identified and archived in culture collections, 3 of the most promising have been moved to outdoor production testbed environments.

Next Steps: Scaling-up Algae Research and Development Managing Applied Algae R&D in Commercially Relevant Scales Algae Testbed Public-Private Partnership and Regional Algal Feedstock Testbed Partnership (FY12 $15 million, FY13 $8 million) Long-term, synchronized cultivation trials and user-facilities across the country to help scale lab work to production environments and provide data for Program analyses, reducing risk to start- up companies and smaller algae entities. Advancements in Algal Biomass Yield Projects (FY13 $16.5 million, FY14 $3.5 million) Projects are integrating R&D on increased biological productivity, efficient harvest and preprocessing, and decreased capital and operating costs in order to achieve the target of demonstrating a biofuel intermediate yield of greater than 2,500 gallons per acre by 2020. Hawaii Bioenergy, Sapphire Energy, California Polytechnic State University, New Mexico State University, and Cellana, LLC. ATP3 is led by Arizona State University, FY12 $12M RAFT is led by University of Arizona, FY13 $8M Projects show the importance of de-risking. Moving Outdoors – Robust systems for Comm. RAFT. ATP3. NMSU Containment Basin Sapphire Energy’s Green Crude Farm Sapphire Energy Hawaii Bioenergy’s Algae Farm Cellana’s Demonstration Facility CalPoly’s Delhi WWT plant site

Demonstration and Market Transformation Portfolio – Overview Map of BETO-funded Projects The Demonstration and Deployment Program manages a diverse portfolio of projects focused on the scale-up of biofuel production technologies from pilot- to demonstration- to pioneer- scale. Of the 33 biorefineries that have received funding through BETO, 3 have been completed, 5 are in close-out, and 5 have been either terminated or withdrawn. The remaining 20 biorefineries are considered active and utilize a broad spectrum of feedstocks and conversion techniques. There are 4 algae projects: Sapphire, Solazyme, Algenol, and BioProcess Algae. BioProcess Solazyme Algenol Sapphire Note: Bioprocess is the only I-Pilot Project that appears on this map. For more information visit: www.energy.gov/eere/bioenergy/integrated-biorefineries

Demonstration Portfolio Algenol Algenol’s technology utilizes blue-green algae to directly produce ethanol; hydrothermal liquefaction can also be used to produce hydrocarbon fuels from wet algae. Marine blue-green algae is also cultivated in vertical photobioreactors (PBRs) in salt water. Recent progress includes continuous operation for 6 months of a 40 block unit (40 PBRs); and continuous operation for an extended period of a 4,000 block unit (4,000 PBRs in 1 acre). Goal for full capacity is 100,000 gallons/year; the project is scheduled for completion in December 2014. Solazyme Solazyme’s technology utilizes sucrose and cellulosic-derived sugars fed into a heterotrophic algae system to produce jet fuel and diesel. Dark fermentation is used to accelerate the microalgae’s oil production. Solazyme works with Chevron, UOP Honeywell, and other industry refining partners to produce renewable diesel for vehicles and ships, and renewable jet fuel for both military and commercial application testing. Performance tests utilizing cellulosic-derived sugars was completed in January 2014; the completed facility is expected to have a capacity of 300,000 gallons/year. Notes for Algenol: ARRA $25M DOE Paul Woods: Plenary Session 1 – 9:00 – 10:15 AM, 9/30 Paul Roessler: Concurrent Track Panels – 8:30 – 10:00 am, 10/1 Yanhui Yuan: Concurrent Track Panels – 10:30 – Noon, 10/1 Pat Ahlm: Evening Special Session: The Sustainability Challenge – 6:45 – 8:00 PM. 10/1 Notes for Solazyme: ARRA $21.7M DOE Each fermenter tank has a capacity of 128,000 liters. Total facility has a capacity of 500,000 liters. Solazyme has not released production metrics.

Demonstration Portfolio Sapphire Energy Sapphire’s algae is cultivated in open raceway ponds; “green crude” is converted into jet fuel and diesel. Sapphire has completed continuous operation of at least 22 acres of ponds exceeding 15 months. Sapphire repaid its USDA Loan Guarantee ahead of schedule, and has signed a joint development agreement with Phillips 66, and partnered with the Linde Group and Tesoro Refining. The completed facility is expected to have a biofuel capacity of 1,000,000 gallons/year. BioProcess Algae BioProcess produces kilogram quantities of heterotrophic lipids using a mixo-trophic algal system co-located at an ethanol plant ready for refining into on-spec military fuels (F- 76, JP-5 and JP-8). The project comprises 9 greenhouses, on 14 acres, and is designed to process 2.5 tons per day. This project is a new start, the project was selected in FY13, and validation is expected in FY14. Notes for Sapphire: ARRA $50M DOE Notes for BioProcess: Type of Organism is not public iPilot FY13 $6.4 M DOE

Recent BETO Award Announcements Algal Biofuels Research Following a 2013 FOA, DOE announced $3.5M in additional funding to support the Department’s goal of producing 2,500 gallons of algal biofuel feedstock per acre per year by 2018, an important milestone toward reducing the cost of algal biofuels to cost- competitive levels of 5,000 gallons per acre per year by 2022. Cellana, LLC, in Kailua-Kona, Hawaii, was selected to receive $3.5M to develop a fully integrated, high-yield algae feedstock production system by integrating the most advanced strain improvement, cultivation, and processing technologies into their operations at Kona Demonstration Facility. Carbon, Hydrogen and Separation Efficiencies Following a 2013 FOA, DOE announced $6.3M in additional funding to support lowering production costs by maximizing the renewable carbon and hydrogen from biomass that can be converted to fuels and improving the separation processes in bio-oil production to remove non-fuel components. One of these awards is: SRI International of Menlo Park, California will receive $3.2M to produce a bio-crude oil from algal biomass that will maximize the amount of renewable carbon recovered for use in fuel and reduce the nitrogen content of the product in order to meet fuel quality standards. Cellana Partners: Commercial Algae Solutions Friday Harbor Laboratories, University of Washington SNL POS Biosciences University of Arkansas LANL SRI Partners: Algae Systems University of Dayton Research Institute Energy Recovery Los Alamos National Laboratory

New Funding Opportunity GOAL: The Targeted Algal Biofuels and Bioproducts (TABB) FOA seeks to reduce the cost of algal biofuels from $7 per gallon – the current projected state of technology for 2019 without this FOA – to less than $5 per gallon algal biofuel by 2019, through non-integrated bench and process development scale technology improvements. CHALLENGES: Algae Program funded work has highlighted barriers to broad commercialization must be overcome with both higher yields in scalable cultivation systems and higher value of the algal biomass. FOA OBJECTIVES: The FOA selection process will identify projects in two topic areas: Multi-disciplinary consortia that bring together upstream and downstream expertise to develop algae cultures that produce valuable bioproduct precursors, alongside fuel components, to increase the overall value of the biomass; Single investigator or small team technology development projects focused on developing crop protection and CO2 utilization technologies to increase yields. ADDITION TO PORTFOLIO: This FOA builds on the existing advances towards productivity goals, but is unique from all prior efforts in that the FOA outcome will be a finished fuel rather than a biofuel intermediate. This FOA is the first from the Algae Program to explicitly fund bioproducts R&D in addition to biofuels. Concept papers due: 10/30/2014 Full applications due: 12/15/2014 FOA SIZE: Up to 4 year project durations (to accommodate multiple growing seasons), with external validations and Stage Gate reviews Topic 1 consortia award size of $5,000,000 to $10,000,000 (1-3 awards) Topic 2 project award size of $500,000 to $1,000,000 (3-7 awards) 20% Cost Share required Photo credits NREL and Arizona State University

Additional Slides

EERE Organization Chart Assistant Secretary David Danielson Office of Transportation Vehicle Technologies Office (VTO) Bioenergy Technologies Office (BETO) Fuel Cell Technologies Office (FCTO) Office of Renewable Power Solar Energy Technologies Office (SETO) Geothermal Technologies Office (GTO) Wind & Water Power Technologies Office (WPTO) Office of Energy Efficiency Building Technologies Office (BTO) Federal Energy Mgmt. Program (FEMP) Advanced Manufacturing Office (AMO) Weatherization & Intergovernmental Programs Office (WIPO) Sustainability Performance Office (SPO) Operations &Strategic Innovation Office (OSIO) Office of Strategic Programs (SP) Communications Stakeholder Engagement Legislative Affairs Technology to Market Policy & Analysis International Office of Business Operations (BO) Information Technology Services Office (ITSO) Project Management Coordination Office (PMCO) Workforce Management Office (WMO) Golden Service Center (GSC) Office of Financial Management (FM) Budget Office Principal Deputy Assistant Secretary Michael Carr

R&D Breakthroughs The following R&D breakthroughs have high-impact commercial applications: Texas A&M, Pecos Site NAABB has screened over 1,500 strains and identified 30 promising algae that show marked improvement over baseline production. High-yield strains have been shared with partners for testing in their outdoor cultivation facilities. Texas A&M, Pecos Site Development of “Rainbow Algae,” the result of stacking multiple traits localized throughout genome with robust expression and targeted protein localization. This has resulted in high-impact demonstration of genetic engineering breakthroughs to allow for the insertion and expression of genes as well as the tagging of proteins throughout the algal cell. NAABB High Yield Strains: DOE0043, DOE0202, and DOE0101 Researchers at the Scripps Institute of Oceanography made a significant breakthrough in the metabolic engineering of algae to improve yield of lipids (the energy-storing fat molecules that can be used in biofuel production) without inhibiting growth. A scanning electron microscope image of the diatom Thalassiosira pseudonana

R&D Breakthroughs Molecular toolboxes developed for 5 production strains coupled with climate-simulating PBRs. High-throughput pipeline of genomes and transcriptomes to target genes of interest and evaluate biomass potential in simulated production environments Whole Algae Hydrothermal Liquefaction demonstrated at continuous operation including separations, upgrading, and carbon recovery from waste-water for multiple algal feedstocks. Design basis allows for production of advanced renewable diesel from fast-growing, low-lipid algae and captures > 60% of the biogenic carbon in the biofuel.

Baseline and Projections: HTL Pathway A major NAABB Consortium breakthrough is a new technology pathway which implements the hydrothermal liquefaction (HTL) of whole wet algae biomass. HTL avoids the steps of biomass drying and solvent extraction of lipids, and is ideal for lower lipid content strains as well as algae cultures of more than one strain. The Pacific Northwest National Lab HTL Design Case shows pathway to high-impact algal biofuel, projecting a $4.49 per gallon gasoline equivalent price by 2022. Whole Algae HTL 40-70% of the carbon in algae captured in oil. Carbon retained during hydrotreating (70-90 wt%) Waste-water cleanup captures additional carbon as biogas. Whole Algae HTL 57 - 70% of the carbon in algae captured in oil Carbon retained during hydrotreating (70-90 wt%) Aqueous carbon capture as biogas Average productivity of 17.9 g/m2/day for 3 seasons, and 14.6 g/m2/day annual average. 2022 goal case based on Nannochloropsis strain yield from NAABB work, 20.8 wt% total lipid Feedstock cost for 20 wt% wet solids assumed to be $430/ton ash free dry weight (AFDW), but feedstock cost had the greatest impact in the sensitivity analysis of the cost of finished fuel Analysis of this research has also been integrated with the TEA, RA, and LCA modeling work and the manuscript is in review at the journal of ES&T. HT Fuel HTL Oil Algae Slurry Photo courtesy of PNNL Source: Process Design and Economics for Conversion of Algal Biomass to Hydrocarbons: Whole Algae Hydrothermal Liquefaction and Upgrading, Pacific Northwest National Laboratory, March 2014. http://www.pnnl.gov/main/publications/external/technical_reports/PNNL-23227.pdf

Baseline and Projections: ALU Pathway Algae Production and Logistics Minimum Fuel Selling Price for Lipid Extraction Pathway The greatest opportunity area for reducing costs is production systems Improved biomass yield Reduced cultivation capital costs (e.g., eliminating plastic pond liners) Significant cost improvements are also projected in feedstock harvest and preprocessing. Also shown explicitly is the value of the recycling credit achieved from processing the residual biomass via anaerobic digestion to produce on-site power and recover nitrogen and phosphorus. Baseline: 19 tons/acre algal biomass yield and 50 GGE / ton shown to result in $18.22/gallon renewable diesel in the baseline algal biofuels cost model. From 2010-2013, R&D on improving strain robustness, crop protection and cultivation strategies resulted in improvements to cultivation yield that will translate to 25 tons/acre. Additionally, R&D on fractionating the harvested biomass into lipids, carbohydrates and proteins for downstream biofuel conversion resulted in improvements to conversion yield that will translate to 60 GGE / ton. Cost reduction is expected to be achieved through improved biomass yield and reduced cultivation capital costs (by eliminating plastic pond liners). Significant cost improvements are also projected in feedstock harvest and preprocessing. Diverting the residual biomass to other uses would eliminate the recycling credit.   Conversion of extracted algal lipid to renewable diesel is not a part of this figure. Conversion of extracted algal lipids is projected to add between $0.50–$1.00 per gallon of renewable diesel; the projected 2022 minimum fuel selling price (MFSP) for renewable diesel from algal lipids is $3.27/GGE ($2011). BETO Multiyear Program Plan: Baseline and Projections

Algal Biomass Yield (ABY) FOA Selections ABY Goal: Through integrated R&D on algal biology and downstream processing, demonstrate biofuel intermediate yield of greater than 2,500 gallons per acre by 2018. Hawaii Bioenergy: The project will develop a cost-effective photosynthetic open-pond system to extract algal oil. Sapphire Energy: The project will work on improving algae strains and increasing yield through cultivation improvements and thermal processing of whole algae. New Mexico State University: The project will genetically engineer improved productivity of a microalgae and develop a 2-stage thermal processing system. California Polytechnic State University: The project will be based at a municipal wastewater treatment plant in Delhi, California, that has six acres of algae ponds. Photograph of the 8 acre Hawaii Bioenergy Algae Farm Google Maps image of the Sapphire Energy field site Bing.com image of Delhi WWT Plant in central California

Algae Testbed Public-Private Partnership (ATP3) DOE investment of $15M over a 5 year performance period Objectives: Collaborative Open Testbeds Establish a network of testing facilities for the algal research community and increase stakeholder access to real-world conditions for algal biomass production. Through facility infrastructure, enable the acceleration of applied algae research, development, investment, and commercial applications for biofuel feedstock production. High Impact Data from Long Term Algal Cultivation Trials Design and implement a unified experimental program across different regional, seasonal, environmental and operational conditions comparing promising production strains at meaningful scales. Feedstock trial data will be made widely available to economic and greenhouse gas models and overall research community allowing for a robust analysis of the state of technology. Regional testbed facilities for the partnership are physically located in Arizona, Hawaii, California, Ohio, Georgia, and Florida. Status: Completed the Go/No Go Review on January 29, 2014 and was recommended to proceed forward. ATP3 has successfully increased its industry participation by adding four additional stakeholders. Photos courtesy of ATP3

Regional Algal Feedstock Testbeds (RAFT) Partnership DOE Investment of $8M over a 4 year performance period FY13 CR allowed for an additional selection of a down-scoped award. RAFT leverages work and partnerships formed during the National Alliance of Advanced Biofuels and Bioproducts (NAABB) Consortia (ARRA $50M). RAFT is coordinating feedstock trials with ATP3 to improve laboratory standards and collect data from geographically diverse sites. Objectives: Obtain long term algal cultivation data in outdoor pond systems to determine how much biomass and lipid can be obtained from algae growing year round at pilot scale. Optimize biomass and lipid content for production of biofuel using impaired waters. Develop real time sensors and control strategies for efficient cultivation. Improve and refine cultivation models, as well as system techno- economic models and life cycle assessments. Testbeds located in Tucson, AZ; Pecos, TX; Las Cruces, NM, and the Pacific Northwest. Status: RAFT had a successful kick-off in December 2013. RAFT has initiated unified production experiments with ATP3. Photos courtesy of RAFT

Defense Production Act (DPA) Initiative In July 2011, the Secretaries of Agriculture, Energy, and Navy signed a Memorandum of Understanding to commit $510 M ($170 M from each agency) to produce hydrocarbon jet and diesel biofuels in the near term. This initiative sought to achieve: Multiple, commercial-scale integrated biorefineries Cost-competitive biofuel with conventional petroleum (without subsidies). Domestically produced fuels from non-food feedstocks. Drop-in, fully compatible, MILSPEC fuels (F-76, JP-5, JP8). Help meet the Navy’s demand for 1.26 billion gallons of fuel per year. Contribute to the Navy’s goal of launching the “Great Green Fleet” in 2016. Demonstration of the production and use of more than 100 million gallons per year will dramatically reduce risk for drop-in biofuels production and adoption. On September 19th, three projects were selected for construction and commissioning: The DPA Initiative has $100 million in FY12 funds from DOD, $70 million in FY13 funds from DOD that requires matching funds from DOE Annual demand found is for FY2010, so subject to change once Zia can confirm. Navy is 28% of total fuel demand of the Department of Defense. A letter from Secretaries Moniz, Hagel, and Vilsack was signed and sent to members of Congress in support of this initiative in January 2014 Biorefineries selected under this initiative are expected to produce fuel for the “Great Green Fleet” demonstration in 2016 Emerald Biofuels - hydro-treating and upgrading of fats, oils and greases Nature Bioreserve - hydro-treating and upgrading of fats, oils and greases Fulcrum Brighton Biofuels – MSW gasification followed by Fischer-Tropsch conversion to jet fuel Red Rocks Biofuels, LLC – forest biomass and wood wastes gasification followed by Fischer-Tropsch conversion to diesel and jet One of the agencies we have increased collaboration with in recent years is DOD. DOD goal is 50% displacement of petroleum based fuels with alternative fuels by 2020. Collaborations with DOD focus on joint efforts to fund integrated biorefineries that will produce biobased jet and diesel fuels. Background DOE and DOD are partnering to meet energy security demands. DOD purchases must abide by EISA 526 requirements (GHG emissions at or below fossil-based emissions). DPA – 4 projects selected for Phase 1: Emerald (FOG -> diesel), Nature’s Bioreserve (FOG -> diesel), Fulcrum Brighton (MSW -> gasification to FTL), Red Rock Biofuels (woody gasification to FTL). I-pilot – 4 projects: Mercurious, Colbalt, Bioprocess Algae, Frontline (Pilot - 10 ton/day - and Demo scale) DOD uses ~5 billion gallons of petroleum a year – approximately 80% of the federal government's total fuel usage In 2009, Secretary of the Navy Ray Mabus announced an energy goal of deploying the “Great Green Fleet” by 2016 Company Location Feedstock Conversion Pathway Capacity (MMgpy) Gulf Coast Fats, Oils, and Greases Hydroprocessed Esters and Fatty Acids (HEFA) 82.0 McCarran, NV Municipal Solid Waste Gasification – Fischer Tröpsch (FT) 10.0 Lakeview, OR Woody Biomass 12.0

Aviation Biofuels: Accomplishments/Milestones The Commercial Alternative Aviation Fuels Initiative (CAAFI) has set a goal of 1 billion gallons per year of alternative jet fuel by 2018 (the commercial aviation market currently 20 billion gallons per year), and DOE is playing an active role by providing technical expertise in various high-level aviation activities, including: Becoming the latest partner agency for Farm to Fly 2.0, joining the aviation sector as well as Department of Agriculture (USDA) and Federal Aviation Administration (FAA) in an agreement to enable commercially viable and sustainable jet fuels in the U.S. Serving on CAAFI Steering Group and as a co-host with the FAA for the Aviation Biofuels Techno-Economic Analysis Workshop, November 2012. Working with FAA to develop a National Alternative Jet Fuels Strategy Roadmap (December 2014). Supporting FAA’s newly established Center of Excellence in alternative jet fuels led by Washington State University/MIT, and supported by National Renewable Energy Laboratory and Pacific Northwest National Laboratory. Increasing technical work at National Laboratories to enable achievement of alternative jet fuel goals.

Significant Program Progress Significant progress has been made as a result of DOE investment over the past 3 years in advancing the baseline described in the BETO Multi-Year Program Plan Innovative work across the value chain is showing promise in reducing costs: Increased productivity achieved through new strains, strain engineering, breeding, and application of polycultures Advances in sustained outdoor cultivation through crop protection, nutrient management, and pond design and managements Process engineering leading to highly efficient biomass to biofuel intermediate yields in the 60-70% range. (Demonstrated by Bioprocess Algae and the National Alliance of Advanced Biofuels and Bioproducts Consortium) Higher yields lead to greater than 50% reductions in land and water requirements in order to achieve 5 billion gallons per year production scenario. The baseline is arrived at through the integration of techno-economic (NREL), resources assessment (PNNL), and life-cycle analysis (ANL) computer models by the national laboratories. Davis, R.; Fishman, D.; Frank, E. D.; Wigmosta, M. S.; Aden, A.; Coleman, A. M.; Pienkos, P. T.; Skaggs, R. J.; Venteris, E. R.; Wang, M. Q. Renewable Diesel from Algal Lipids: An Integrated Baseline for Cost, Emissions, and Resource Potential from a Harmonized Model; ANL/ESD/12-4; PNNL-21437; NREL/TP-5100-55431 Assumptions are based on annual averages.

Algae R&D Sites PNNL & New Mexico State University California Polytechnic State University Cal Poly San Luis Obispo Test Bed AZCATI Test Bed Georgia Institute of Technology Test Bed Sapphire Energy New Mexico State University University of Arizona Texas A&M University Hawaii Bioenergy Cellana, LLC Test Bed Facilities Regional Algae Feedstock Trials ABY Selections

BETO’s Core Focus Areas Program Portfolio Management • Planning • Systems-Level Analysis • Performance Validation and Assessment • MYPP • Peer Review • Merit Review • Quarterly Portfolio Review • Competitive • Non-competitive • Lab Capabilities Matrix Research, Development, Demonstration, & Market Transformation Feedstock Supply & Logistics R&D Terrestrial Algae Product Logistics Preprocessing Conversion R&D Biochemical Thermochemical Deconstruction Biointermediate Upgrading Demonstration & Market Transformation Integrated Biorefineries Biofuels Distribution Infrastructure Sustainability Sustainability Analysis Sustainable System Design Strategic Analysis Technology and Resource Assessment Market and Impact Analysis Model Development & Data compilation Cross Cutting BETO’s mission is to support research, development, demonstration, and deployment of advanced bioenergy. Our Office spans the bioenergy supply chain. Feedstock supply efforts focus on RD&D to develop cost-effective integrated logistics systems—so this includes growing, harvesting, collecting, storing, preprocessing, handling, and transporting quality feedstock to biorefineries. Our conversion R&D program is focused on developing commercially viable technologies to convert terrestrial and algal feedstocks into liquid fuels, as well as bioproducts and biopower. Biochemical Conversion R&D efforts focus on pathways for producing sugars and other carbohydrate intermediates followed by conversion to finished fuels. Thermochemical Conversion R&D is focused on pathways producing bio-oil and gaseous intermediates from biomass followed by upgrading to finished fuels. The Demonstration and Deployment (D&D) program is focused on demonstrating and validating biomass conversion technologies through successful construction and operation of cost-shared pilot, demonstration, and commercial scale integrated biorefineries. We have crosscutting programs in Sustainability and Strategic Analysis. Proactively addresses sustainability of advanced bioenergy to enhance its benefits, public acceptance, and long-term viability. Conducts key analyses to guide planning and portfolio management and provides the analytical basis for R&D prioritization, target development and assessment of progress towards goals Strategic Communications New Communications Vehicles & Outlets Awareness and Support of Office Benefits of Bioenergy/Bioproducts

Key Challenge for Innovation Involves Lowering Risks De-risking technologies is central to R&D through demonstration that addresses greater integration and scale: BETO is focusing on advancing renewable gasoline, diesel, and jet fuels technologies. Technical, construction, operational and financial/market risks. Moved ‘key challenges all on to one line. Is there a way to be less repetitive with words by not repeating the same verbiage in every box Changed size of graphic to better overlap challenge boxes Key Challenges Biomass Pretreatment Conversion Product Reliable supply Consistent quality Affordable delivery Biomass feeding, sizing and moisture Solids handling Construction materials Products Yields Catalysts Fermentation organisms Separations Catalytic upgrading Recycle loops

Replacing the Whole Barrel Greater focus is needed on RD&D for a range of technologies to displace the entire barrel of petroleum crude. U.S. spends about $1 Billion each day on crude oil imports.* Only about 40% of a barrel of crude oil is used to produce petroleum gasoline. Cellulosic ethanol can only displace the portion of the barrel that is made into gasoline. Reducing our dependence on oil also requires replacing diesel, jet fuel, heavy distillates, and a range of other chemicals and products that are currently derived from crude oil. What do we mean by the statement that “biofuels can only displace the portion of the barrel that is made into gasoline? – AG responded by replacing “biofuels” with “cellulosic ethanol” *American Petroleum Institute A 42-gallon (U.S.) barrel of crude oil yields about 45 gallons of petroleum products.

Demonstration Portfolio – Key Algae Projects: Algenol (Pilot-Scale) Technology Overexpression of fermentation pathway enzymes in blue-green algae to directly produce ethanol, as well as hydrothermal liquefaction of wet algae to hydrocarbon fuels. Cultivation of marine blue-green algae in vertical photobioreactors (salt water). Progress 40 Block (40 PBRs) operated continuously for over 6 months. 4,000 Block (4,000 PBRs in 1 acre) operated successfully and continuously for extended period. Downstream processing unit operations in place and in various stages of shakedown, commissioning, and operation. Successfully generating an average of 6,000 gallons/acre/year of ethanol. 31 issued patents and 63 pending applications. Goal for full capacity is 100,000 gallons/year. Project is scheduled for completion in December 2014. Information on type of organism is not public ARRA $25M DOE Paul Woods: Plenary Session 1 – 9:00 – 10:15 AM, 9/30 Paul Roessler: Concurrent Track Panels – 8:30 – 10:00 am, 10/1 Yanhui Yuan: Concurrent Track Panels – 10:30 – Noon, 10/1 Pat Ahlm: Evening Special Session: The Sustainability Challenge – 6:45 – 8:00 PM. 10/1 Photobioreactors Membrane Dehydration Skid Hydrothermal Liquefaction Unit Photos courtesy of Algenol Reference: http://www.energy.gov/eere/bioenergy/integrated-biorefineries

Solazyme, Inc.: Pilot-Scale Technology Sucrose and cellulosic-derived sugar fed heterotrophic algae system to produce renewable jet fuel and diesel. Utilizes dark fermentation to accelerate the micralgae‘s natural oil production. Capicity of facility is for 500,000 L of oil. Progress Works with Chevron, UOP Honeywell, and other industry refining partners to produce renewable diesel, renewable diesel for ships, and renewable jet fuel for both military and commercial application testing. Mechanical completion mid-year 2012. Sucrose optimization runs complete. Performance test utilizing cellulosic-derived sugars completed January 2014. Biofuel capacity of 300,000 gallons/year. Industrial fermentation ARRA $21.7M DOE Each fermenter tank has a capacity of 128,000 liters. Total facility has a capacity of 500,000 liters. Solazyme has not released production metrics. Reference: http://www.energy.gov/eere/bioenergy/integrated-biorefineries Photos courtesy of Solazyme

BioProcess Algae: Pilot-Scale Technology Produce kilogram quantities of heterotrophic lipids using a mixo-trophic algal system co-located at an ethanol plant ready for refining into on-spec military fuels (F-76, JP-5 and JP-8). Project comprises 9 greenhouses, on 14 acres, and is designed to process 2.5 tons per day. Progress This project is a new start this year. Project was selected in FY13, validation is expected in FY14. Long-lead bench equipment in operation. On-spec biomass production complete, extraction and refining complete. Hydroprocessing of bio-oils and crude extracted oil complete. iPilot FY13 $6.4 M DOE Photos courtesy of BioProcess Algae Reference: http://www.energy.gov/eere/bioenergy/algal-integrated-biorefineries

Photos courtesy of Sapphire Energy Sapphire Energy, Inc.: Demonstration-Scale 4/12/2017 Technology Cultivation in open raceway ponds. Convert to a “Green Crude” for conversion into jet fuel and diesel. Progress Continuous operation of at least 22 acres of ponds exceeding 15 months. Repaid USDA Loan Guarantee ahead of schedule, project self-financed. Signed joint development agreement with Phillips 66. Expanded partnership with Linde Group to commercialize its downstream conversion technology. Entered a commercial agreement with Tesoro Refining for the purchase of Sapphire’s Green Crude. Biofuel capacity of 1,000,000 gallons/year. Type of Organism is not public ARRA $50M DOE Photos courtesy of Sapphire Energy Reference: http://www.energy.gov/eere/bioenergy/integrated-biorefineries May Contain Business Sensitive and Proprietary Information

Upcoming Event Waste to Energy Roadmapping Workshop BETO is organizing a Workshop on Waste-to-Energy, which is scheduled to take place November 5, 2014 in Washington, DC. Identify and address technical barriers in the Waste to Energy space presently limiting commercial operations Topics of Specific Interest: Wastewater residuals and biosolids Foodstuffs and other wet, organic municipal solid waste Anaerobic digestion Hydrothermal liquefaction If you are interested in attending or for more information please email aaron.fisher@ee.doe.gov Algae will not be a primary focus of the Workshop, but a breakout session may focus on it.