Algae Biofuel Overview

September 30 - October 3, 2013 Orlando, FL

Advancing Commercialization of Algal Biofuels Through Increased Yield and Value of the Biomass

Xuemei Bai, Ph.D Principal Scientist & Senior Director of R&D Cellana LLC

Page 1 © Cellana 2013 Strategy for Commercialization Increase value . Multiple-product-stream business model . Increase yield of biomass . Increase yield of bio-products . New application/perspective of algae meal Reduce cost . Build upon over 5yrs of intense R&D . Integrate newest technologies into commercial algae facility

Page 2 © Cellana 2013

Flexible Biorefinery Production / Revenue Model Bioproducts Generated from the Use of the Entire Algae Biomass

891kg Total per MT* (11% yield loss) $6,928 per MT (dry weight) $82 @ $100/bbl, $0.68/kg 121kg Biocrude Oil (fossil petroleum px benchmark) 2 62kg Omega-3 Oil @ $100/kg (35% conc.) (discount to algal DHA wholesale 1 px benchmark) $6,138

= oil separation

708kg Algae Meal

(Residual Proteins, Sugars, Minerals, Lipids, & @ $1.00/kg Micronutrients) (premium to soymeal px benchmark; discount to fishmeal $708 px benchmark)

* Reflects recovery based on initial whole algae fraction of 6% Omega-3 oils, 25% Biocrude oil, 69% Algae Meal (Protein/Sugars/Minerals/Lipids/Micronutrients), and 11% total yield loss after two separations

Page 3 © Cellana 2013 ALDUO™ Cultivation Technology: Combination of the Best of Both Worlds

High 100% PBRs

Cost 20% PBRs / 80% Open Ponds

100% Open Ponds Low

Low Risk of Contamination High

Page 4 © Cellana 2013 ALDUO™ Advantages:

 Dramatic expansion of algal strain catalog for outdoor mass cultivation . >30 strains produced successfully outdoor . >12MT produced from >10 strains  Significant reduction in contamination disruptions . >8 months continued production at KDF w/o a single contamination event in 2013!

Page 5 © Cellana 2013 ALDUO™ Advantages:

C003 C010 C543 C624 C739 C870 C870 C870 C971 KA 21 KA 28 KA 29 40%

 The freedom to tap into

the large collection of 20%

algal strains for desired % fatty acids fatty % products 0% . >520 high performing strains C20:4 C20:5 C24:0 C22:5 C22:6 40%

. Large collection with high- C018

value products T0 D1 D2 D3 D4 20% . Many with fatty acids profile

suitable for both fuel and acids fatty %

nutraceuticals 0%

C16:0 C16:2 C12:0 C14:0 C15:0 C16:1 C16:3 C16:4 C18:0 C18:1 C18:2 C18:3 C18:4 C20:4 C20:5 C22:1 C22:5 C22:6

40% C971 T0 D1 D2 D3 D4

20% % fatty acids fatty %

C16:0 C18:2 C12:0 C14:0 C15:0 C16:1 C16:2 C16:3 C16:4 C18:0 C18:1 C18:3 C18:4 C20:4 C20:5 C22:1 C22:5 C22:6 Page 6 © Cellana 2013 Mid-scale ALDUO™: Powerful Mid-scale Screening & Optimization System

Large-scale simulator Real world outdoor data Efficient (200L x 12) Highly reproducible data

Page 7 © Cellana 2013 Mid-scale ALDUO™: Powerful Mid-scale Screening & Optimization System

400 30 100 250 C323 (6) Totl Lipids Production C323 (6) TAG Production 350 C046 C/N and Nutrients 25 80 TL/L day2 TL/L day3 TL/L day4200 300 mP04 mP04 20 mP05 mP05

250 mP06 60 mP06 150

200 15 TL/L (mg/L) 100 TAG/L (mg/L) 40 150

10 TL/L (mg/L)TL/L 100 50 20 5 50

0 0 0 0

0 24 48 72 96 120

C077 C129 C323 C608 C608 C323 C323 C003 C015 C323 C273 C105 C323 C315 C287 C624 C720 C516 C753 C323 C088 C516 C323 C753

CH21 CH60 CH06 C323F

Time (h) C323C

Sunset Sunset

Sunrise Sunrise

35.0 40% 2.5 KA32 dwt productivity 30.0 35% KA32 Fatty Acids KA19 OD

2.0

25.0 30%

20.0 25% 1.5 20% PH=8.3 15.0 1.0

15% 440nm @OD Ph=8.1 % Total FAME % Total Productivity (g/m2/d) Productivity 10.0 PH=7.9 10% 0.5 PH=7.7 5.0 5% PH=7.5

Biomass 0.0 0% 0.0

T0 T0 D1 D2 D3 D4 D7

D1-PM D2-PM D3-PM D4-PM D5-PM D6-PM

D1-AM D2-AM D3-AM D4-AM D5-AM D6-AM D7-AM

C20:5 C14:0 C16:0 C16:2 C16:4 C18:1 C18:3 C20:0 C20:4

 Understand the complexity of the output from an open pond system • Positive correlation between biomass productivity and EPA content • Negative correlation between biomass and FAME content • Both EPA and FAME productivity were positively correlated with biomass productivity  Set the right objective • For e.g. If % lipid is a focus, you lose not just fuel productivity, but also the overall yield and value of your pond  Make the right compromise

-Deeper ponds, higher productivity -Difference between depths bigger at early stage of the ponds -Higher PW speed (40%-60%), higher productivity for ponds at early stage -Further increase to 70% did not increase biomass productivity -PW speed had higher impact on shallower ponds

Algae Biomass Amount Feed trial Institution Location Testing animal Key results Feed formulation species type (kg) duration Algal replacements were acceptable 5-10% replacement of plant Bodø University Norway Atlantic salmon* C323/C88 defatted/whole 1,000+ at the maximum levels tested* and animal protein* 12wks 25-40% replacement of Algal replacements were acceptable both plant and animal Part of same at the maximum levels tested* Bodø University Norway Carp* C323/C88 defatted/whole trial as above protein* 12wks 25-40% replacement of Part of same Algal replacements were acceptable both plant and animal Prince of Songkla trial as above at the maximum levels tested* University Thailand whiteleg shrimp* C323/C88 defatted/whole protein* 12wks Thai Union Thailand shrimp C323 Defatted 880 On-going Work in progress Bodø University Norway fish C046 Defatted 850 On-going Work in progress Laying hen: increased redness in ~7% replacement of Cornell New York laying hen, pigs, broilers C323 Defatted 500 egg yolk soybean or soybean+ corn 6wks Weanling pigs: comparable growth ~7%replacement of Cornell New York laying hen, pigs, broilers C323 Whole 500 on algae supplement diet soybean or soybean+ corn 6wks Higher inclusion rate; comparable Work in progress Cornell New York laying hen, pigs, broilers C046 Defatted 800 growth 6wks Cornell New York laying hen, pigs, broilers KA19 Defatted 600 High n-3 eggs and meat. Work in progress 6wks High digestibility and high nutrition, include 10-20% in diet Farm n' Forages Maui laying hen C323 Whole 30 biomass sent in Aug 4wks Farm n' Forages Maui laying hen C323 Whole 100 include 10-20% in diet Farm n' Forages Maui laying hen KA19 Whole 100 High n-3 eggs include 10-20% in diet Significantly higher body weight defatted & compared to fishmeal diet USDA-ARS Big Island tilapia C323 whole 50 compared fish meal diet 9wks Better performance by wks 9, low compared to soybean meal USDA-ARS Big Island tilapia C046 defatted mortality rate diet 9wks Kona Blue Big Island rotifer (for fish) KA19 wet algae paste 20 Good feed for rotifer, cleaner tank Live feed to rotifer 2wks

* See Marine microalgae from biorefinery as a potential feed protein source for Atlantic salmon, common carp and whiteleg shrimp V. Kiron, W. Phromkunthong, M. Huntley, I. Archibald, G. De Scheemaker Article first published online: Aquaculture Nutrition, 3 APR 2013

Research at Cornell by Dr. Lei’s Lab with Cellana’s Renew Feed under the USDA grant

 15 Expt, 3 types of animals (n = 1,259), and 3-15 weeks of feeding  3 types of Cellana’s Renew Feed at 7.5-25% inclusion  Replacing 2-15% soybean meal for pigs and poultry  No adverse effect on animal performance or health  Health value-added animal product (n-3 fatty acid enriched eggs/meat)  Excellent protein utilization (Digestibility of amino acids: total tract >70%, ileum > 80%)

• Off-Take Agreement for algae oil announced June 2013 • Neste Oil is the largest refiner of renewable diesel in the world • Multi-year off-take agreement • Commercial-scale quantities of algae oil • Contingencies for Cellana production

capacity, EU/US sustainability criteria, and Neste Oil's renewable fuel plant in Rotterdam in the other factors Netherlands was commissioned in 2011. • Non-Exclusive for both parties • “Samples have shown that Cellana is able to produce algae oil suitable for renewable fuel production by Neste Oil.” • “The off-take agreement with Cellana Neste Oil started up the world's largest renewable diesel refinery in Singapore in November 2010. allows us access to commercial-scale volumes of cost-competitive algae oil in the future.”

 R&D Department Reyna Javar Peter Prentiss Christina Boyko Emily Knurek Egan Rowe Danielle Elsey Lynn Griswold Keao Yuen Kelsey Warmack Dr. Kate Evans  Dr. Charles O’Kelly  Engineering Department  Operations Department  IT Department  Purchasing Department  Management & Executive Team