CO 2 Mitigation Project March 2004: First meeting in Farge Short history September 2004: Inauguration E.on lab, planning of project IUB financed study (50 k€) for proof of principle to produce biomass which could be used as animal feed May 2005: Report on feasibility study July 2005: Meeting in München, phase 1 proposal (70 k€) December 2004: funding from Bremen to build 100 m 2 research greenhouse September 2005: Start of E.on funded on-site evaluation to identify algae strains which can be commercialized for biofuel and animal feed October 2004 : MoE between IUB and BlueBioTech, start of feasibility study

Reasons for the project Questions addressed what are the potential uses of the biomass ? is the technology environmentally friendly ? can it result in permanent sequestration ? is it financially attractive ? which product slates could be generated ? what are the prospected running costs ? does it result in a positive community image ? The study was carried out to investigate the prospect of developing a large scale photosynthetic system for greenhouse gas control. The aim was to use marine microalgae as an enhanced natural sink for carbon dioxide emissions from an coal-fired power plant. The project-partners evaluated the possibilities to develop large scale closed reactor-systems to fixate CO 2 emissions from that power plant within the next five years. The feasibility study is an example of the success of the European Union Emissions Trading Scheme in encouraging industries to invest in innovative technologies which will help curb CO 2 emissions. The use of microalgae as sources of eg liquid fuels is attractive because microalgae are photosynthetic renewable resources, are of a high lipid content, have faster growth rates than plant cells, and are capable of growth in saline waters which are unsuitable for agriculture.

What are the potential uses of the biomass ? BiodieselEthanol Animal feed Building material bioactive substances

is the technology environmentally friendly ? Can substantially reduce inlet CO 2 and NO x emissions on-site Supplies renewable energy Reduces dependency on fossil fuels CO 2 can theoretically be sequestered as building material can it result in permanent sequestration ?

A Brief History of IUB  Founded by City-State of Bremen, University of Bremen and Rice University, Texas  accredited by the Wissenschaftsrat (German Science Council)  all bachelors degree programs accredited  Currently 920 students from over 85 nations, 97 professors  Residential colleges  16 undergraduate programs 14 graduate programs  Degrees: Bachelor of Arts, Bachelor of Science, Master of Arts, Master of Science, Executive Master / Master of Business Administration, Doctor of Philosophy Mission: International University Bremen is a highly selective, private institution for the advancement of education and research. Its academic programs and cultural environment prepare graduates for international leadership and global citizenship. Multinational students, faculty and researchers of distinction, with educational partners around the world, collaborate in learning, creating and disseminating information and new knowledge. ﾇ  Founded by City-State of Bremen, University of Bremen and Rice University, Texas  accredited by the Wissenschaftsrat (German Science Council)  all bachelors degree programs accredited  Currently 920 students from over 85 nations, 97 professors  Residential colleges  16 undergraduate programs 14 graduate programs  Degrees: Bachelor of Arts, Bachelor of Science, Master of Arts, Master of Science, Executive Master / Master of Business Administration, Doctor of Philosophy Mission: International University Bremen is a highly selective, private institution for the advancement of education and research. Its academic programs and cultural environment prepare graduates for international leadership and global citizenship. Multinational students, faculty and researchers of distinction, with educational partners around the world, collaborate in learning, creating and disseminating information and new knowledge. ﾇ

A Brief History of BlueBioTech  2000-Founded by 3 scientists with over 20 years of experience in microalgae biotechnology  First microalgae products on the market under own label. Products (nutraceuticals, functional cosmetics and feed)are marketed to retailers and end customers through e.g. web shops and television marketing.  Application for patents in photobioreactor measuring technique and in nutraceutical use of microalgae  BlueBioTech has become one of the leading microalgae companies in Europe  2000-currently- Development of several photobioreactor systems, each tailored to the specific requirements of the production process from 1L – L  BlueBioTech operates several production sites in Asia and Europe with outdoor, greenhouse and indoor techniques Mission : t o reveal the potential of microalgae for human use  2000-Founded by 3 scientists with over 20 years of experience in microalgae biotechnology  First microalgae products on the market under own label. Products (nutraceuticals, functional cosmetics and feed)are marketed to retailers and end customers through e.g. web shops and television marketing.  Application for patents in photobioreactor measuring technique and in nutraceutical use of microalgae  BlueBioTech has become one of the leading microalgae companies in Europe  2000-currently- Development of several photobioreactor systems, each tailored to the specific requirements of the production process from 1L – L  BlueBioTech operates several production sites in Asia and Europe with outdoor, greenhouse and indoor techniques Mission : t o reveal the potential of microalgae for human use

Results from On-Site Evaluation (10/2005-4/2006) Two algae strains used for animal feed and lipid production were tested in a simple photobioreactor at Farge and at the OceanLab greenhouse at IUB production during winter ranged from t/ha/month (extrapolated data) the biomass could be used as animal feed with heavy metal contaminations of one order of magnitude lower than tolerated for animal feed percentages of total lipid concentrations ranged from % and depend on nutrient supply and timing of harvest percentages of under-saturated fatty acids ranged between 64 and 79 % fatty acid composition could be controlled through nutrient supply the lipids can be used as biodiesel but the viscosity is high. This however depends on fatty acid composition which is controllable Vis-Nova, a biodiesel producer would buy t of algae oil per year and would probably invest in the full-scale deployment an implementation of a waste-water module to recycle industrial wastes and improve the quality of the biodiesel seems reasonable

Potential Deployment Sites ESA

How to proceed ? the consortium is convinced, that upscaling of biomass production on a full-scale commercial deployment is possible and financially attractive depending on controllable environmental conditions either biodiesel or ethanol can be produced in large amounts however a market for large amounts of animal feed, building material and bioactive substances must be established too ultimate goal is to both, create a valuable alternative energy source (50%) and to sequester CO 2 via the production of building material to lower greenhouse gas emissions (50 %). to achieve this goal, R&D should be coupled with commercially available High-Tech. so far funding (120 k€) did not allow to develop high performance reactor-types. BlueBioTech reactors are build for medium production. we could try now or join with the promising US company Greenfuel

A Brief History of GreenFuel  Founded  design and experimentation  Advance Module deployed at MIT Cogen  Second Advance Module installed at 1000 MW power plant in Southwest; moved to 13,000 ft 2 lab  Developing coal (NYSERDA) and other applications (e.g. oil, waste water treatment, etc., IEA project with ENEL) Mission: To recycle carbon profitably from combustion exhaust using GreenFuel's advanced algae biotechnology  Founded  design and experimentation  Advance Module deployed at MIT Cogen  Second Advance Module installed at 1000 MW power plant in Southwest; moved to 13,000 ft 2 lab  Developing coal (NYSERDA) and other applications (e.g. oil, waste water treatment, etc., IEA project with ENEL) Mission: To recycle carbon profitably from combustion exhaust using GreenFuel's advanced algae biotechnology

is it financially attractive ? Typical Project Example: 350 MW Coal Plant (Insolation Zone C/D –Germany case)  1 km 2 deployment  Processes 4-5% of flue gas  Produces transportation fuel with a market value of:  € 500/t of biodiesel  € 400/t of ethanol  Target capital cost ~ € 18 million for commercial facility (excluding downstream costs)  1 km 2 deployment  Processes 4-5% of flue gas  Produces transportation fuel with a market value of:  € 500/t of biodiesel  € 400/t of ethanol  Target capital cost ~ € 18 million for commercial facility (excluding downstream costs) Info converted into SI units

Performance Goals PastGFT NowGoal Maximum Time Line Productivity Cost GreenFuel has reduced costs by a factor of 8, and expects to reduce costs by an additional factor of 2 GreenFuel’s process is 2.5 times more productive than other methods, and expects to double productivity again by 2007 Profitable

Performance Data from MIT Power Plant Data collected, reviewed, and analyzed by independent company (CK Environmental, 9/2004) *data measured 9 am-5 pm **data measured 24 hrs./day CO 2 Reduction* NO x Reduction* * Sunny Days 82.3% ± 12.5% 85.9% ± 2.1% Cloudy Days 50.1% ± 6.5% 85.9% ± 2.1% Light Intensity vs. Time NO x, CO 2 Mitigation vs. Time Remnants of Hurricane (very low light) 50% reduction, even with very low light

which product slates could be generated ? Estimated Current Value of Fuel Slate for 350 MW Coal Plant With 1 km 2 system Product Slate 6.0 million liter/year of biodiesel (€ 3.0 million) 7.5 million liter/year of ethanol (€ 3.5 million) 0.5 million liter/year of glycerin (€ 0.1 million) tons/year of algae of animal feed (€ 1.4 million) CO 2 reduction of tons/year (€ 1.0 million (25 €/t) ) Revenue value: approximately € 9.0 million/year * Estimates exclude credits for renewable fuels, CO 2 and NOx reduction, green power, etc Product Slate 6.0 million liter/year of biodiesel (€ 3.0 million) 7.5 million liter/year of ethanol (€ 3.5 million) 0.5 million liter/year of glycerin (€ 0.1 million) tons/year of algae of animal feed (€ 1.4 million) CO 2 reduction of tons/year (€ 1.0 million (25 €/t) ) Revenue value: approximately € 9.0 million/year * Estimates exclude credits for renewable fuels, CO 2 and NOx reduction, green power, etc * Note: assumes existing EU subsidies for products

what are the prospected running costs ? x MW for energy supply for temperature control, compressor, harvesting x€ for nutrients x€ for personal Problem: running costs for current systems are too high. Greenfuel must therefore show a clear concept for a low-downstream costs implementation plan. To start this discussion, a confidentiality agreement between the consortium and Greenfuel must be signed

does the project result in a positive community image ? very positive response from media local: BLV regional: Weser Kurier, NDR/TV national: Financial Times, Süddeutsche, Handelsblatt international: invited talk by IRR to EPCON conference, Vienna IRR (Int. Res. Inst)EPCON: Industry energy sector Austria

Phase II Proposal (modified from Greenfuel example) Initial-Term Commercialization Process Project StageMilestone Overall Feasibility Study Deliverables (18 to 24 months overall) Final marketing study, including end-products Design adaptation and installation, including Phase 1 and Phase 2 Provision for local manufacture and labor Assess commercial/regulatory parameters Validation of preliminary process economics Decision to proceed with Pilot Plant and Commercial Rollout Phase 1: Initial Field Test Training and design adaptation; assembly and deployment of mobile feasibility reactor Test ambient site conditions (3-6 months each) Identify optimal algae strains/blends Substantiate productivity Phase 2: Advance Module Test 1 ha deployment Design adapt, fabricate, and install Advance Module and train personnel Field testing of sustained productivity levels and consistency of biomass quality (3-6 months) Develop optimal nutrient strategy Validate dewatering process Pilot Project approvalDecision to proceed with deployment of Pilot Project Initial Term of License – Pre-Commercialization

Tasks  First step: Sign confidentiality agreement and reveal/discuss running costs implementation plan. Sign customized MOU between IUB, BluebioTech, E.on and Greenfuel  Negotiate terms of Definitive Agreement for long-term international licensing agreement between E.on and Greenfuel  IUB: coordination, verify production rates with new reactor-type, identify optimal algae strains/blends for different purposes, Field testing of sustained productivity levels and consistency of biomass quality, train personnel, marketing for biofuels, research on building material for permanent sequestration  BlueBioTech: reactor design adaptation, support search for optimal algae strains for different purposes, marketing for feed, bioactive substances, Develop optimal nutrient strategy  Greenfuel: assembly and deployment of mobile feasibility reactor, support search for optimal algae strains for different purposes, Design adapt, fabricate, and install Advance Module  Hochschule Bremen: R&D on wastewater module for industry applications to recycle glycerin from biodiesel production  First step: Sign confidentiality agreement and reveal/discuss running costs implementation plan. Sign customized MOU between IUB, BluebioTech, E.on and Greenfuel  Negotiate terms of Definitive Agreement for long-term international licensing agreement between E.on and Greenfuel  IUB: coordination, verify production rates with new reactor-type, identify optimal algae strains/blends for different purposes, Field testing of sustained productivity levels and consistency of biomass quality, train personnel, marketing for biofuels, research on building material for permanent sequestration  BlueBioTech: reactor design adaptation, support search for optimal algae strains for different purposes, marketing for feed, bioactive substances, Develop optimal nutrient strategy  Greenfuel: assembly and deployment of mobile feasibility reactor, support search for optimal algae strains for different purposes, Design adapt, fabricate, and install Advance Module  Hochschule Bremen: R&D on wastewater module for industry applications to recycle glycerin from biodiesel production

Typical Commercial Rollout Strategy Project StageMilestone Phase 3: Pilot Project Implementation (one to three acres) Finance and construct Pilot Project Confirm performance of selected algae strains for sustained operations Confirm fuel and other products content Confirm supply chain issues Confirm all hardware designs, operability and maintainability, and validate scalability Train operating staff Phase 4: Phased Full-scale Commercial Deployment (up to 1000 acres per location) Asset-based financing of full deployment Phased construction of commercial system Full staff training Sales of products resulting from the project Secure environmental and “green” credits All partners

Where algae grow East Greenland km 2 ≈ 3 million t CO 2 /a 90 % recycled Denmark/Norway km 2 ≈ 1 million t CO 2 /a 95 % recycled