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N Ew S R Elea N E W S R EMBARGOED UNTIL: 09:00 GMT TUESDAY 11 DECEMBER 2007 E 10:00 CET, 01:00 PST, 03:00 CST, 04:00 EST (23:00 10 DEC HAWAII) L E A SHELL AND HR BIOPETROLEUM BUILD FACILITY TO GROW ALGAE FOR BIOFUEL S Royal Dutch Shell plc and HR Biopetroleum today announced the construction of a pilot facility in Hawaii to grow marine E algae and produce vegetable oil for conversion into biofuel. The announcement is a further step in Shell’s ongoing effort to develop a new generation of biofuels using sustainable, non- food raw materials. Algae hold great promise because they grow very rapidly, are rich in vegetable oil and can be cultivated in ponds of seawater, minimising the use of fertile land and fresh water. Shell and HR Biopetroleum have formed a joint venture company, called Cellana, to develop this project, with Shell taking the majority share. Construction of the demonstration facility on the Kona coast of Hawaii Island will begin immediately. The site, leased from the Natural Energy Laboratory of Hawaii Authority (NELHA), is near existing commercial algae enterprises, primarily serving the pharmaceutical and nutrition industries. The facility will grow only non-modified, marine microalgae species in open-air ponds using proprietary technology. Algae strains used will be indigenous to Hawaii or approved by the Hawaii Department of Agriculture. Protection of the local environment and marine ecosystem has been central to facility design. Once the algae are harvested, the vegetable oil will be extracted. The facility’s small production volumes will be used for testing. An academic research programme will support the project, screening natural microalgae species to determine which ones produce the highest yields and the most vegetable oil. The programme will include scientists from the Universities of Hawaii, Southern Mississippi and Dalhousie, in Nova Scotia, Canada. An advantage of algae is their rapid growth. They can double their mass several times a day and produce at least 15 times more oil per hectare than alternatives such as rape, palm soya or jatropha. Moreover, facilities can be built on coastal land unsuitable for conventional agriculture. Over the long term, algae cultivation facilities also have the potential to absorb or ‘capture’ waste CO2 directly from industrial facilities such as power plants. The Cellana demonstration will use bottled CO2 to explore this potential. “Algae have great potential as a sustainable feedstock for production of diesel-type fuels with a very small CO2 footprint,” said Graeme Sweeney, Shell Executive Vice President Future Fuels and CO2. “This demonstration will be an important test of the technology and, critically, of commercial viability”. “HR Biopetroleum’s proven technology provides a solid platform for commercial development and potential deployment worldwide,” Mark Huntley, HR Biopetroleum Chief Science Officer said. “Shell’s expertise and commitment to next generation biofuels complements our own strengths, and makes this a truly collaborative partnership.” Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam and New York stock exchanges. Shell companies have operations in more than 130 countries, with businesses including: oil and gas exploration; production and marketing of liquefied natural gas and gas to liquids; marketing and shipping of oil products and chemicals; and renewable energy projects including wind, solar and biofuels. www.shell.com/aboutshell HR Biopetroleum Inc., incorporated in the State of Delaware and headquartered in the State of Hawaii, is a developer of large-scale microalgae production technology. It was founded by a group of leading marine scientists and is dedicated to the development of commercially viable and socially responsible biofuel production technology. The company constructs and operates algae biofuels plants that use effluent gases from power plants to produce renewable fuels and to mitigate emissions of carbon. www.HRbiopetroleum.com Shell International Limited Shell Centre Registered in England number 228931 London SE1 7NA Registered office: Shell Centre London SE1 7NA Internet http://www.shell.com FURTHER INFORMATION Name Shell Media Office Location London, UK Contacts Sarah Smallhorn: +44 (0)207 934 2713 Media line: +44 (0)207 934 3505 Name Shell Media Office Location Houston, US Contacts Shaun Wiggins +1 (713) 241-3264 Media line +1 (713) 241-4544 Name HR Biopetroleum Media Agent Location Honolulu, Hawaii, US Contacts Piia Aarma +1 (808) 285 9332 Notes to Editors An electronic press kit, including downloadable images, will be available from http://www.shell.com/announcement11dec Royal Dutch Shell plc is working to meet government mandates for biofuel and, with its experience, expertise and assets, has become the world’s largest distributor of biofuels. The company is working with biofuel manufacturers to secure cost- effective supply and press for social and environmental safeguards. A constraint on the potential of conventional biofuels is that they use food crops. Shell is a leader in the development of next generation biofuels, using non food bio materials, alternative processes and high performance fuels. The expression Cellana is used for convenience to refer to both Cellana Inc. and Cellana B.V..
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