Carbon Farming with

CO2 & from

TerraSync Dramatic Reduction in Emission of Biofertilizer Nitrous Oxide - 2.5 micron

Rehabilitates Replaces Conventional Distressed N

Carbon Sequestered in Soil

Dramatic Reduction in N compounds to surface runoff

Dramatic Reduction in N compounds to groundwater Mark Allen, P.E. VP Integrated Carbon Solutions Accelergy Corporation July 2018 2 TerraSync Biofertilizer – Synthetic N Replacement 3 ( ) – as old as dirt

• Free living autotrophic photosynthetic nitrogen fixing • splits water into and • Hydrogen and an enzyme split into oxygen and carbon • ’s fix elemental nitrogen to nitrogen

Heterocyst TerraSync BioFertilizer – Local Algae Strains for Production 4 Chinese Academy of Sciences – Shanghai Advanced Research Institute

Shanghai Chongming 27 local strains isolated Project for consideration

B1611 is a research reference strain

B1611 is a research reference strain TerraSync BioFertilizer – Local Algae Strains for Production 5 Chinese Academy of Sciences – Institute of Hydrobiology Kubuqi Desert

Kubuqi Desert Restoration – Inner Mongolia Shanghai Chongming Fully inoculated PBR ready for harvest, Staged inoculation,Project over several days, of PBR multi-strain culture of nitrogen fixing with four indigenous strains of nitrogen cyanobacteria will be applied to desert soil fixing cyanobacteria. for cultivation. TerraSync™ BioFertilizer Development – DOE NETL Funded 6

Yellowstone - Depleted Montana Soil

(1) (2)

Control Conventional Fertilizer TerraSync

• Control – no NPK fertilizer • (1) - 35-0-0 – standard application of Nitrogen fertilizer • (2) - Hoagland’s - all macro & micro • TerraSync Algae Strain B1611 – ONLY nitrogen fixing development, (control on cyanobacteria (blue-green algae) at eqv. standard left – TerraSync Strain 16 nitrogen application rate biofertilizer on right) is • No macro or micro nutrients were applied with Strain 16 indicative of overall healthy plant development 7

Control Hoagland Strain 16 7 8

Control Hoagland Strain 16 8 9 TerraSync BioFertilizer – Camelina Energy

Camelina seed oil crop is used in crop rotation with wheat every third year

• Left - without fertilizer • Right - ONLY Strain 16 cyanobacteria biofertilizer, applied at the standard nitrogen fertilizer application rate 10 TerraSync BioFertilizer – Lettuce Field Trials

28 days 34 days 39 days

Control

Chemical Fertilizer

Organic Fertilizer

Algae

Algae + Organic

0 days 7 days 14 days 20 days

• Algae fertilizer yields 28% more plant weight over chemical fertilizer • Algae raises by 20% • 13% greater plant available N in soil • 70% greater total organic carbon in soil 11 TerraSync BioFertilizer - Organic Rice Production in China

• Local strain of blue-green algae • Increased Yields of 15+% Per Acre • High Quality Organic Rice for Premium Market • Now Evaluating Single vs Multiple TerraSync Applications for Long Term Benefits • Reduced CO2 emissions from conventional N fertilizer production and reduced NO3 emission from field 12 200 Acre Algae Biofertilizer Demonstration – Arizona Farm

• Algae applied to previously abandoned farm land • Algae distributed through drip irrigation system

12 Weeks to harvest and a week sooner to market

Yosemite Melons 2X With Early Growth 2.5X Algae Biofertilizer Without Plant Size & Density 3X Algae Early Melon Maturity 2X Biofertilizer Mature Melon Size 1.4X Mature Melon Weight 1.5X Taste (blind panel ) 14:1 13 TerraSync™ Carbon Farming – Terrestrial Sequestration

TerraSync

Atmospheric Anthropogenic CO2 Carbon Sink CO2

Carbon Transport by 6H O + 6CO C H O + 6O TerraSync & Green 2 2 6 12 6 2 Photosynthesis

Soil Carbon Capture SOC Carbohydrates consumed C H O SOC residence time - days to years 6 12 6 by soil Soil Organic Carbon (SOC)

Soil microorganisms metabolize SOC and trace Soil Carbon Sequestration Humus is made up of complex high molecular minerals to form Humus through successive weight organo mineral aggregates that are highly decomposition, in a timeframe of weeks to months (SOM), resistant to further decomposition by soil microbial and years Humic Substances (Humus) activity

Sequestration Efficacy

Humic Acids the fraction of humus that is not soluble in water at any Carbon Mean Residence Conversion of SOC pH and that cannot be Time 1235 years to Humic extracted with a strong Substances is rate base, commonly black in limited by available color nutrients (should be satisfied by Humin the fraction of humus that is TerraSync), soil soluble in water, except for Carbon Mean Residence Time moisture, soil conditions more acid than pH 1140 years temperature, and 2, common colors are dark length of growing brown to black season. Fulvic Acids

the fraction of humus that is Carbon Mean Residence soluble in water under all pH conditions, color is commonly Time 870 years light to yellow-brown TerraSync™ Accelerates - Wide Range Of Benefits 14

Including Beneficial Use of CO2 and GHG Mitigation

Addition Of Carbon To The Soil Improves: CO2 & Nitrogen from • Crop yield and Atmosphere quality • Water retention • Soil permeability TerraSync Dramatic Reduction in • controlled Emission of release capability Biofertilizer Nitrous Oxide - 2.5 micron Can Replace Nitrogen Dramatic Reduction Of: Rehabilitates Replaces Conventional Distressed Soil N Fertilizer • NOX P2.5 Off Gassing Carbon Sequestered in Soil • Nitrogen Compounds in Run Off Dramatic Reduction in N compounds to surface water runoff • Nitrogen Compounds in Dramatic Reduction in N compounds to groundwater Ground Water 15 Monetizing CO2 with TerraSync BioFertilizer - KEY POINTS

• CO2 Emissions can be used to grow algae • Algae Biofertilizer can be used to grow • Algae Biofertilizer can replace conventional nitrogen fertilizer

• Each ton of CO2 used to grow algae biofertilizer off-sets 2 to 4 tons of CO2-e from the production of conventional nitrogen fertilizer

• Additional CO2-e off-set comes from substantially reduced nitrous oxide off gas from farming • Live algae pump atmospheric carbon (simple ) into the soil • Over time, on a net basis, 10 to 50 times the carbon emission consumed to initially grow the algae is stored in the soil long term • On many areas of the planet agricultural and other have been severely depleted of carbon – a large carbon sink is available

• CO2 emissions can be utilized today to make money