ive Energy Strategies Olympia, WA Work Session: February 21, 2008 Andrew T. Braff, Attorney at Law Senate Water, Energy and Global Oil and Alternat Communications Committee House Technology, Energy and Telecommunications Committee Telecommunications

Biofuels from Overview Problems? A Brief History Feedstock 1. : Part of the Solution to Global 2. Microalgae for Liquid Transportation Fuels: 3. Current Activities 4. Challenges for Using Microalgae as a Biofuel

Algae for Energy Microalgae: Part of the Solution 1.

Algae for Energy on the rise Global Problems – Oil Price/Supply • Peak Oil Approaching • Current Oil and Diesel Prices

Algae for Energy th http://www.ipcc.ch/ipccreports/ar4- ( , as is now evident from ) According to the U.N. Intergovernmental Panel on Climate Change (IPCC), 4 Assessment Report (Nov. 17, 2007), system is “warming of the climate unequivocal syr.htm observations of increases in global average air and ocean temperatures, widespread melting of snow and ice, rising global average sea level.” Global Problems – Climate Change Climate Change

Algae for Energy 70% ) and nitrous 4 lt of human activities since , methane (CH 2 values determine from ice cores trial times, with an increase of “global GHG emissions due to human ropogenic GHG. Its annual emissions tween 1970 and 2004.” ands of years.” O) have increased markedly as a resu 2 oxide (N activities have grown since pre-indus between 1970 and 2004.” grew by about 80% be 1750 and now far exceed pre-industrial spanning many thous —Assessment, to the IPCC According — “Global atmospheric concentration of CO — “CO2 is the most important anth Global Problems – Climate Change Causes of Climate Change - GHG Emissions

Algae for Energy Assessment Report th Source: IPCC 4 Source: Global Problems – Climate Change

Algae for Energy ed fresh water availability due to water usage will need to be met by vy precipitation, and high winds generally all require fresh water and ems (e.g., algal blooms); ter than use of fossil fuels. s – 340 billion gpd in 2000. of surface and groundwater; waste water re-use; waste saltwater intrusion; therefore are competing with other necessary uses of such water. • Increased water demand – Increase in • Increased water quality probl • Adverse effects on quality • “First generation” biofuel feedstocks • will require more wa Biofuels • Decreased yields in warmer environments • Damage to crops due droughts, hea • would impact “first All generation” biofuel feedstocks • Contamination of water supply, decreas • U.S. Freshwater withdrawal – Resources: Water – Agriculture Global Problems – Climate Change Climate Change – Impacts

Algae for Energy 000 bpd (5,517,000 from OPEC) • U.S. Crude Oil Production: 5,102,000 bpd • U.S. Crude Oil Imports: 10,118, • U.S. Consumption 20,687,000 bpd • U.S. Net Petroleum Imports: 12,390,000 bpd • Dependence on Net Petroleum Imports: 59.9% – Oil: Crude – Petroleum: Global Problems – Energy Security Energy Security

Algae for Energy Source: Energy Energy Source: Administration Information Global Problems – Energy Security Energy Security

Algae for Energy e highest annual increase fter a 14% increase in 2006. Index is ternationally traded foodstuffs. search Service of the USDA, all-food Consumer a, China and Latin America between 2006 and 2007, th is anticipating a 3.0-4.0% increase in 2008. • Drought in Australia • Growing prosperity in Indi • Production of First Generation Biofuels since 1990. The Service Nations climbed 36% in 2007. This is a based on export prices for 60 in Price Index increased 4.0% – Causes: – The food price index of the Food and Agriculture Organization of the United – to the Economic Re According Global Problems – Food Prices Increasing Food Prices – “Agflation”

Algae for Energy Global Problems – Food (and Drink) Prices

Algae for Energy is a client of WSGR : 1 acre of palm = 8 acres of soy. : Imperium Renewables – vs. Soy Yield Palm – Disclosure Global Problems – Deforestation Palm oil, perhaps the best terrestrial feedstocks for , has an image problem.

Algae for Energy Chicago Board of Source: Trade, February 20, 2007. 60,000 Global Problems – High Feedstock Prices for Terrestrial Biofuels Oil: Soybean lbs. of soybean oil = $60.21 ($46.50 back in Dec. 2007)

Algae for Energy http://www.palmoil.com Source: e squeeze in Palm oil contract on Global Problems – High Feedstock Prices for Terrestrial Biofuels Palm Oil: Algae for Energy the Bursa Malaysia Derivatives hit a record at just Exchange over 3,450 MYR (U.S. $1,000) per ton. Seattle Employee Discontent: Because of th margins, Seattle employees sent a petition with more than 700 signatures to Mayor Greg Nickels questioning the Seattle City Employees’ Retirement System’s financial support of Imperium Renewables. According to the Seattle Post- Intelligencer, the System invested $10m in Imperium. 13 . 2.5 bgy om all oilseed crops would yield only bgy. • World-wide production of biodiesel fr • The entire U.S. soybean crop could provide approximately National Bioenergy Center: – U.S. Diesel Demand: ***60 bg/y*** – Feedstock Limits: According to Philip Pienkos at NREL’s Terrestrial – vs. fuel issue Food Triglycerides from current oilseed crops and waste oils would barely dent annual U.S. diesel demand. For biofuels to displace even a moderate amount of fossil fuels used in the transportation sector requires development of an abundant source of triglycerides (TAGs). Global Problems – Terrestrial Feedstocks Won’t Cut It • •

Algae for Energy The Science Museum, London, UK - 2007 Microalgae – of the Solution? Part

Algae for Energy : e fast algae, but fat ery 3 days vs. hours for fast Botryococcus Braunii Botryococcus d dioxide into biomass and ts that carry out the same process and Reported yields of can have fat algae or we can hav Grows very slowly. Doubles ev : B. Braunii Microalgae convert sunlight, water an – Land – Sunlight –Water – Carbon Dioxide – – 65% Gasoline – Fuel Aviation 15% – Diesel 18% Fuel – 2% Residual Oil algae, now there is a challenge” (J. Benemann). Microalgae are microscopic aquatic plan as higher plants. mechanism of What are the Inputs: Problem with growing microalgae. “So we Process: oxygen. Biomass contains oils/TAGs. Some Strains Highly Productive: Microalgae – of the Solution? Part • • • • •

Algae for Energy The P. Pienkos, NREL, P. Pienkos, Fuel Pathways Source: Potential for Biofuels Algae, from Algae Biomass Summit, San Francisco, CA (Nov. 15, 2007). Methane Methane Biomass Syngas FT Liquids Alcohols (Ethanol) Macroalgae Carbohydrates Biodiesel or Hydrocarbons Microalgae Alkanes or “Green Diesel”

Hydrogen

Fuel Intermediate Microalgae – of the Solution? Part

Algae for Energy 48 61 18 35 102 127 202 635 1,200 10,000 Oil Yield Gallons/acre /day at /day at 2 2 Crop Corn Cotton Soybean Mustard seed Sunflower Rapeseed/Canola Jatropha Oil palm Algae (10 g/m Algae (50 g/m 15% TAG) 50% TAG) Algae 24,000 gallons per The Potential of Biofuels from Algae, /day 2 P. Pienkos, NREL, P. Pienkos, acre per year. This is 2x the maximum theoretical efficiency. per acre year would be a significant accomplishment. 20 g/m terrestrial crops (depending on crop) to a potential of – suggest that 2,000 gallons Experts – Seambiotic (IsraeliCompany) Yields: – are approximately 10x that of Yields – Media hype has cited up CAUTION: Source: Biomass Summit, San Francisco, CA (Nov. 15, 2007). Microalgae – of the Solution? Part

Algae for Energy Algae has a much higher productivity potential than terrestrial biofuels. feedstocks and lipid use world-wide, and land, and high-cost y 3% of fossil fuel y 3% of fossil pared to terrestrial stocks such as algal oil attractive. lly reducing dependence on fossil fuels. form of food prices, as a potential high-impact, high-volume as a hedge against crude and other petroleum-based products by incrementa oil content on a cellular level serves substitute. biofuel feedstocks due to their relative scarcity. we are already feeling constraints in the – oil prices begin to make certain High feed – feedstock diversity acts Expanding – Current biofuel use displaces approximatel – rapid growth rates when com Microalgae’s Microalgae – of the Solution? Part High Oil Prices:

Algae for Energy Open pond system utilizing flue A. Ben-Amotz, presentation to A. Ben-Amotz, Source: Algae Biomass Summit, San Francisco, CA (Nov. 15, 2007). Pictured: gas off Israel Electric Company power plant. : ) and 2 utilization. Careful ter than 90% utilization of 2 liquid form of energy (lipid ysaccharides for ethanol). . CO2 is a primary input required by . During the Aquatic Species Program, .” 2 into the ponds allowed grea tons/year (56% of U.S. Power Plant Emissions) Plant Power (56% of U.S. tons/year Emissions) Plant Power (36% of U.S. tons/year 2 • 10 g/m2/day @ 15% TAG Productivity: 1.4 billion • 50 g/m2/day @ 50% TAG Productivity: 0.9 billion microalgae to grow. Microalgae takes a waste (CO converts it into a high-density oil for biodiesel; starch/pol control of pH and other physical conditions for introducing CO tests proved that “outdoor ponds could be run with extremely high efficiency of CO injected CO – CO2 Requirements for 60 BGY Biodiesel via Microalgae – CO2 is Primary Input – CO2 Utilization Microalgae – of the Solution? Part

Algae for Energy Climate Change - CO2 Emissions: Algal Presentation R. Pate, Sandia Source: National Laboratories, the Energy-WaterBiofuels from Nexus Perspective, at Algae Biomass Summit, San Francisco, CA (Nov. 15, 2007). on gallons per year . Microalgae systems use . Microalgae . Species flourish in brackish, biodiesel: 120 trillion gallons per year biodiesel: 16 trilli Over 4000 trillion gallons per year productive algal cultures California nationwide • 10 g/m2/day @ 15% TAG for 60bgy of • 50 g/m2/day @ 50% TAG for 60bgy of • Water used to Irrigate Corn Crop in U.S.: • Wastewater nutrients support highly • 25,000 acres of wastewater ponds just in • wastewater treatment facilities 5,100 far less water than traditional oilseed crops. saline and wastewater. Relieves pressure on freshwater supplies. – Far Less Water Use Water” –“Dirty Microalgae – of the Solution? Part Water Resources:

Algae for Energy cultural feed that can as corn, soy or other oil lements; however, it does used in agricultural feed r in temperatures from below freezing eactors; U.S. has ample suitable land. 70°C (geysers in Yellowstone Nat’l Park). umption or agricultural use. duction is high-protein agri . Microalgae can be “home grown”. and potentially reduce prices. is used as nutritional supp the human food chain such source and is not currently spirulina not occupy a central place in supplement the feed markets seed crops, whether for human cons (Antarctica – ideal) to approximately not products. – such as Microalgae – can grow in one form Microalgae or anothe – is a non-food re Microalgae – No country has a monopoly on Photobior – of energy Diversification portfolio – One coproduct of microalgae pro Microalgae – of the Solution? Part Energy Security: Food Prices:

Algae for Energy The For P. Pienkos, NREL, P. Pienkos, Productivity 60bgy biodiesel Nevada, etc.). Source: Potential for Biofuels Algae, from Presentation at Algae Biomass Summit, San Francisco, CA (Nov. 15, 2007). 6 million acres for 50g/m2/day@50% (~10,000 gal/acre-yr) 85 bgy of soy to meet 100% oil CA; Roswell, NM; not occur in areas used currently for crop re a land area the size of Europe. on acres for crops and grazing. ggett (Boeing), it would take . Cheap land is necessary to keep costs down!! • Ocean • Non-Arable Land/Desert (e.g., Salton Sea, jet fuel requirement. This would requi production or in forested areas. algae, think Belgium – U.S. currently uses 970 milli –Da to David According – Microalgae growing operations will likely biodiesel Productivity Microalgae – Part of the Solution? Land Resources/Limits Deforestation: 10 g/m2/day@15% (~1,200 gal/acre-yr) Algae for Energy 48 million acres for 60bgy /methane via anaerobic digestion) 2-35 cents/gallon Chicago Climate 2-35 cents/gallon (RECs associated with Renewable Portfolio Standards) Exchange to EU Emission Trading Scheme) – treatment/Water reclamation (recycled, -free water) Wastewater – High-Protein Animal Feeds – Fertilizers Agricultural – Biopolymers – Glycerin – CO2 Biofixation (Carbon Credits: – power generation (syngas Electrical Microalgae – of the Solution? Part Coproducts/Other Benefits:

Algae for Energy eactor Demonstration Facility 2. Photobioreactor K. Ogilvie, Blue Marble Energy, Presentation at Algae Biomass Source: Summit, San Francisco, CA (Nov. 15, 2007). Pictured: GreenFuel Photobior 3. Hybrid Biofuels From Microalgae: The Presentation at Algae Biomass Summit, 1. Open Pond Three General Technological Methods: Artist’s rendition of Kent SeaTech’sArtist’s scale-up facility M. Massingill, Kent SeaTech, Microalgae – of the Solution? Part Source: Controlled Eutrophication Process, San Francisco, CA (Nov. 15, 2007). Pictured: Algae for Energy , Algal Biodiesel: Obstacles and Opportunities C. Guay, Community Fuels, Community C. Guay, Source: Presentation at Algae Biomass Summit, San Francisco, CA (Nov. 15, 2007). General Process Block Diagram: Microalgae – of the Solution? Part

Algae for Energy Algal Presentation R. Pate, Sandia Source: National Laboratories, the Energy-WaterBiofuels from Nexus Perspective, at Algae Biomass Summit, San Francisco, CA (Nov. 15, 2007).

Algae for Energy Microalgae for Liquid Transportation Fuels: A Brief History 2.

Algae for Energy production 2 ge photobioreactors to grow Australia and used as fuel. , a cyanobacterium) collected collected , a cyanobacterium) conjunction with an algae pilot plant stewater treatment and conversion to first research on algae mass culture and biofuels R&D mainly focused on H the hydrocarbon producing alga green eley (Oswald & Golueke, 1960). Institute (SRI International) Anabaena cylindrica took experiments using lar rvoir was found to produce almost pure hydrogen gas were collected on the beaches of for the production of animal feed. operated on a rooftop at MIT (Burlew, 1953). methane was studied at U.C. Berk cultivation with Stanford Research Chlorella until recently. Botryococcus brauni from a Massachusetts rese (Jackson and Ellms, 1896). Microalgae • the 1950s, algae biomass production In for wa • 1953, microalgae biofuels were mentioned in In • the 1980s, Soviets under In • 1948, Paul Cook engaged in some of the In A Brief History: Pre-ASP • Over a century ago, pond scum ( • a century ago, blooms of Approximately

Algae for Energy pond systems were 2 arch Institute (“SERI”) : Produce biodiesel from high in open raceway-style ponds from coal fired power plants. 2 Up to 50 grams of algae per square : For 17 years (1978-1995), the National : During the ASP, 1,000m energy, particularly hydrogen and transportation fuels. meter per day (max theoretical is 100 grams per square meter per day – J. Weissman). Productivity: – OPEC Oil Crisis – the use of aquatic plants as Examined sources of – lipid-content algae grown and utilizing waste CO Renewable Energy Laboratory (“NREL”) and its predecessor Solar Energy Rese oversaw the Aquatic Species Program (“ASP”). built in Roswell, NM. • Plant Pilot Brief History: Aquatic Species Program • Creation of ASP • of the ASP Focus Primary

Algae for Energy , Final Report Considered the “Bible” during a time of low oil : At least three reports This collection was studied 1980 to 1996 with an emphasis CO2 to biomass for-energy movement. : Hosted a collection containing over : Provides a summary of the research : The ASP was shut down in 1995 under Systems and economic analysis of microalgae (1996)). focused on the techno-economic analyses of microalgae biodiesel production (e.g., Benemann, J.R. and W.J. Oswald, ponds for conversion of on algae for biodiesel production. for the current algae- activities carried out from pressure to reduce budgets and prices. 3,000 strains of organisms. and eventually “winnowed down” to 300 species. • Shutdown Brief History: Aquatic Species Program (Cont.) • Strain Library Algal • Report Close-Out • Preliminary Economic Analyses

Algae for Energy Artist rendition, Aquatic Species Source: Program, U.S. DOE, NREL 1987. Production Microalgae of Fuels for Production Microalgae of Fuels for : focused and fiber : On January in hopes of Conclusion : From 1990 to 2000 a he open pond approach dent Bush reduced Brief History: 1990-2000 •Japanese Studies used by the ASP, Japanese major program on microalgae for CO2 capture/utilization was carried out in Japan. Unlike t on closed photobioreactors optic distribution of solar energy throughout the tubes increasing the surface area exposed. $500 million spent. 31, 2006, Presi emphasis on hydrogen and shifted focus to other sources of renewable energy, primarily cellulosic ethanol. Photobioreactors are too expensive. Dead Research •Hydrogen

Algae for Energy Current Activities and Developments 3.

Algae for Energy hnology that may be e applications are in conjunction to 2020) for practical applications of y), National Energy Technology (India), SRI International, Pacific a global scale, tec Microalgae Biofixation Process: ions to Greenhouse Gas Mitigation International Energy Agency’s Blaine Metting of Pacific Northwest National Labs (Tri-Cities) : Report analyzes, on : : “The most plausible immediat : “The most plausible : U.S. DOE, Eni (Italian utilit : Produced a report entitled: with advanced wastewater treatment processes...” advanced wastewater with Applications and Potential Contribut Options. currently serves as its chair. Laboratory, Eletrobras (Brazil), TERI Northwest National Lab Greenhouse Gas R&D Programme available in the near- to mid-term (2010 microalgae in biofuels production. • Report’s Focus • Report • Current Chair Current Activities and Developments Microalgae Biofixation Network • under the auspices of Formed • Members •Conclusion

Algae for Energy 16, 2007 16, 2007 - - November 14 November 14 San Francisco, California San Francisco, California Current Activities and Developments

Algae for Energy – Japan – Spain – France – Italy – Finland – Thailand – India – Germany – Australia – – Canada – Israel – New Zealand – Netherlands The –Chile – United Kingdom – Philippines – Switzerland First ever large-scale international gathering of technologists, scientists, policymakers, entrepreneurs and services providers dedicated to pursuing the use of algae as an energy feedstock. Over 350 attendees from many states and countries • • Current Activities and Developments - ABS

Algae for Energy Kent SeaTech Corp. Kent SeaTech er for Excellence in Draper Fisher Jurvetson d Mark Allen, A2BE d Mark Aurora BioFuels, Inc. Vantage Point Venture Blue Marble Energy LiveFuels, Inc. LiveFuels, Hazardous Materials Management Partners Carbon Capture, LLC •• Bryan Willson, Solix Biofuels Dr. Mr. Matthew Caspari, •• Kelly Ogilvie, Mr. • Mr. David Jones, • Christopher Guay, Community Fuels Dr. • Inc. Mr. Ben Cloud, XL Renewables, • Mr. Jeff Hassannia, Diversified Energy • Mr. Matt Jones, Nth Power • Ms. Robin Kodner, Bodega Algae, Inc. • Ms. Jennifer Fonstad, Sanjay Wagle, Mr. •• Douglas Kirkpatrick, DARPA Dr. • Michael Massingill, Mr. • Michael H. Huesemann, PNNL Dr. Messrs. Jim Sears an •• Mark Tegen, Inventure Chemical Dr. • Renewables Imperium Tobias, Martin Mr. • of Hawaii University Huntley, Mark Dr. Ron Reeves, Cent Mr. SeaAg Inc., and Aurora -Author, ASP Close-Out -Author, ASP Close-Out a National Laboratories of Energy Efficiency and Global Green Solutions State University California Polytechnic ripps Institute of The Boeing Company eanography (Israel) Report Biofuels Oceanography, UCSD Institute of Oc University Renewable Energy, U.S. DOE Current Activities and Developments - ABS

Algae for Energy • Joseph C. Weissman, Dr. •• LLC Amha Belay, Earthrise Nutritionals, Dr. Ronald Pate, Sandi Dr. •• Mr. David Daggett, and the National Ami Ben-Amotz, Seambiotic Dr. • Tryg J. Lundquist, Dr. •• Philip T. Pienkos, NREL Dr. Greg Mitchell, Sc Dr. • Qiang Hu, Arizona Dr. •• Michael Weaver, Bionavitas, Inc. Mr. Josh Green, Mohr Davidow Ventures •• Ripudaman Malhotra, SRI Dr. International Mr. Michael H. Gilbert, • Dickerson, Office Paul • Co John Benemann, Dr. ation to protect the of those interests eering committee expected shortly alization of algae applications. – Members 8 – release Press publicly announcing st – representative from Washington 1 pursuing research and commerci • Steering Committee formed Current Activities and Developments Formation of Trade Association • in the formation of a trade Assisting associ

Algae for Energy system for low-cost algal oil the Summit’s Keynote agricultural feedstocks to JP-8 ubmitted abstracts on January y (or multiple facilities) to produce and optimizing its conversion to gallon for TAG; Phase 2 cost of <$1 gallon for TAG; on the technology to marketplace une 500 companies, Start-ups, aircraft, tanks and non-nuclear ships. aircraft, tanks and non-nuclear ting proposals on February 25, 2008. BAA08-07 made public in Approximately ½ dozen teams s Spur development of a highly efficient 50mmgy of JP-8. Universities, Government labs. (EERC, UOP, GE Global)(EERC, UOP, GE (or <$3 gallongallon for TAG finished cost at 50mmgy) – Extension of BAA06-43 for conversion of – Commercialization plan to Transiti – defense contractors, Fort Large – Cost Targets: Phase 1 cost of <$2 – Contemplates construction of a facilit Announcement: Address by Dr. Douglas Kirkpatrick on November 15. Goal: Teams: production (non-competitive with food) JP-8, the fuel used by all military 10, 2008 and will likely be submit Current Activities and Developments DARPA Broad Agency Announcement 08-07 • • •

Algae for Energy renewable ock for the production of biofuel, cellulosic ubmit a report on progress of for purposes of meeting the to transportation fuel sold or develop this source as a viable feedstocks qualifying as hinder the use of this resource Independence and Security Act the contiguous 48 states. advanced biofuel e use of algae as a feeedst Secretary of Energy must s 36 bgpy of renewable fuel, advanced Adds “algae” to the list of , which also qualifies as RFS Mandate: and biomass-based diesel must be blended in introduced into commerce in transportation fuel. • • challenges R&D • Regulatory or other barriers that • Recommendations on how to encourage and • Report due within 90 days of enactment. dramatically expanded Federal Renewable Fuel Standard. the R&D being conducted on th Section 201: Section 228 - Report: biomass biofuels. Report is to address: – – (P.L. 110-140, Dec. 19, 2007) Current Activities and Developments

Algae for Energy Other Noteworthy Developments • Federal Recognition in Energy conducts screening tests; tube tests; in jet engines; conduct biojet fuel flight demonstrations; collaboration with NZ-based Aquaflow Bionomic Corporation; - Dave Daggett, Boeing – Boeing gathers biojet samples and – conducts lab tests NASA and flame – GE & Rolls Royce test biojet samples – Atlantic and Air New Zealand to Virgin – Boeing will “neither confirm nor deny” – “Algae feedstock looks very promising” Current Activities and Developments

Algae for Energy Other Noteworthy Developments • Collaboration Boeing d transportation fuels using algae; borative research and development agreement Chevron Technology Ventures is funding the program. Announced entry into colla Advance technology to produce liqui on Oct. 31, 2007; Goal: CRADA: Funding: – – – Current Activities and Developments

Algae for Energy Other Noteworthy Developments • Chevron Corp./NREL il into biodiesel at its Seattle ed Imperium Renewables and liver it to Imperium. South San Francisco-based Solazyme entered into an agreement. extract the oil, and de facility. – On June 6, 2007, Seattle-bas – Solazyme will grow its proprietary strains of microalgae, – Imperium will convert the algal o Current Activities and Developments

Algae for Energy Other Noteworthy Developments • Solazyme/Imperium Agreement and test algal-based Solazyme and Chevron es announced an exceeds ASTM D6751 Solazyme powered a Mercedes Technology Ventur agreement to develop biofuel feedstock. Sundance: with algal-based biodiesel at the Sundance Film Festival in Park City Utah last month. “Soladiesel”™ January 22, 2008: standards for use in existing diesel engines. – – – Current Activities and Developments

Algae for Energy Other Noteworthy Developments • Solazyme/Chevron Partnership leased from the Natural pumped in through OTEC system HA). Nutritional supplement grower hell and Hawaii-Based start-up, HR ty in Hawaii on a site joint venture (Cellena). also has a facility at NELHA. Open pond system using saltwater JV will build a pilot facili On Dec. 11, 2007, Royal Dutch S Pilot: Biopetroleum, have formed a Energy Laboratory of Hawaii Authority (NEL Cyanotech JV: Facility: – – – Current Activities and Developments

Algae for Energy Other Noteworthy Developments • Biopetroleum Shell/HR on of biodiesel. ence for Hazardous onds for growing salt-water e Center of Excell and for the producti Defense contractor General Atomics opened an office in Carlsbad, CEHMM is constructing outdoor p June 4, 2007: NM as part of a collaboration with th Materials Management. Open Pond: microalgae on unused, non-arable l – – Current Activities and Developments

Algae for Energy Other Noteworthy Developments • Atomics/CEHMM Collaboration General s that prevent achievement of to overcome barriers. search “roadmap” from which 30-40 experts, primarily from February 19-21, 2008 Microalgal lipid-to-biofuels workshop goals; controlling and/or augmenting algal lipid biosynthesis; recommendations can be made – Develop a basic science re – various scientific approaches and tools needed for Elucidate – specific problems/barrier Identify What: Who Was Invited: academia and the National Laboratory System Objectives: Current Activities and Developments • • • Algae for Energy Air Force Office of Scientific Research/NREL Meeting – Dr. Michael Huesemann – Metting Dr. Blaine Current Activities and Developments Washington Connections • Inc. Bionavitas, • Marble Energy Blue •Boeing • Imperium Renewables • Inventure Chemical • Pacific Northwest National Laboratory

Algae for Energy Challenges 4.

Algae for Energy dioxide and bition reduces exposure to culture of microalgae and low ubbed” – Sulfur ates to a mean annual to ates of productivity the problem is making algae.” (Benemann). growing conditions and maintaining strain microalgae biofuels production” (J. Weissman, r per day (J. Weissman). nlight. Light scattering/inhi port (CO2 must be “scr -up water (evaporation) : “The efficient and stable mass 100 grams per square mete – Theoretical maximum solar conversion efficiency is 10%. – Converting 10% of total solar energy transl stability for monoculture (resistance to invasion / “mongrel” algae). media. microalgae suspended deeper in the for sunlight hydrogen sulfate toxic to algae!) • Selection of proper algal strain for the • Efficient sunlight conversion. • Exposure of microalgae to su • Controlling growth rates to prevent “crashes” • Temperature control • CO2 availability and trans • Water chemistries, make • problem is not making “The oil from algae, cost harvesting are the main issues in Algae Biomass Summit). – Growth/Propagation Technology Obstacles and Risk Challenges

Algae for Energy • Alga MONOR MONOR 2 /d %PAR Days m Scale, 2 28 14 2.5 ISO 20 7 40 3 CYCLO 18.4 4.8 180 3 TETRA 32 (40) (9) 6.8 43 1.4 CYCLO Ave (Max)Ave (Max) Ave Principal and Location and Principal gm/m Laws, Hawaii, 1984-5 Hawaii, Laws, 1985-6 Hawaii, Laws, (65) 37 1990 9 (15+) Hawaii, Laws, (35) 30 1986 Israel, Ben Amotz, 78 9.6 27 (40) 15 1985-6 Israel, Richmond, 400 9.5 48 25 3.5 TETRA 1986 CA, Weissman, 48 90 variable 32 (40) CYCLO 24 0.35 7 (10) TETRA CHAET 60 125 2.5 1.4 NANNO CHAET Weissman, CA, 1983 CA, Weissman, 1988 NM, Weissman, 16 30(50) 3.6 6.8 240 50 100 3 SCENE AMPHO Weissman, NM, 1989 NM, Weissman, NM,1988-90Weissman, 20(24) 10(24) 5 3 100 730 1000 1000 CYCLO CYCLO Challenges ASP Productivity Results (Source: J. Weissman, Presentation at Algae Biomass Summit, San Francisco, 2007) CA (Nov. 15, Algae for Energy : occur on a daily basis in We’re talking a 1000-fold hundred pounds of microscopic particles (unless natural drying used). nd propagation potentials; however, tive high cost to low cost) of gallons media. : Harvesting must generally • Foam fractionation • flocculation Ozone • Centrifugation • Electrofloatation • Inorganic Chemical Flocculation • Filtration or Microstrainers • Discrete Sedimentation • Autoflocculation • Bioflocculation • Tilapia Enhanced Sedimentation / Brine Shrimp order to reach maximum growth a harvesting involves separating a few from hundreds of thousands concentration. Drying is expensive – Harvesting/Dewatering – Harvesting Methods (From rela Technology Obstacles and Risk (Cont.) Challenges •

Algae for Energy environmental issue); issue); environmental JP-8, JET-A, Green Diesel, etc. Green Diesel, JET-A, JP-8, and oil purification processes ane, benzene – potential : Conversion of algal oil to : Efficient lipid extraction – Energy density – Carbon numbers – Cloud point – Stability – Consistency solvent recovery is expensive. • Enzymatic • Sonication/Ultrasonic (sound waves) • Physical pulverization (expeller/press) • Chemical treatment (hex • Process optimization to increase efficiencies • Achieving fuel characteristics – Extraction –Conversion Technology Obstacles and Risk (Cont.) Challenges •

Algae for Energy Presentation at Algae M. Huesemann, PacificM. Huesemann, Technologies General Microalgal Source: NationalNorthwest Laboratories, Biofuels from Microalgae: Products, Processes and Potential, Biomass Summit, San Francisco, CA (Nov. 15, 2007). Biomass Conversion Technology Obstacles and Risk (Cont.) Challenges •

Algae for Energy gest energy balance may be 1:1 or even : negative for photobioreactor approach. • Leakage • Fouling • Contamination • Overheating • Expensive • Some studies (Rudolfi et al, 2007) sug – Photobioreactor designs Technology Obstacles and Risk Challenges •

Algae for Energy on of algal oil means its cost is ice points aren’t right, local needs, mmgy algal oil facility may be upwards sses before companies are comfortable would produce approximately JP-8 50mmgy eak into Coproduct markets oil is considered “DARPA Hard” r gallon). Scaling up will reduce this cost over : Standards organizations must develop : etc.) • may not materialize (e.g., pr Markets • Efforts will be required to br certification and qualification proce using the fuel. unknown and high ($20+ pe time. of $500 million to $1 billion. This rate). (3:1 conversion – Coproducts – Getting to $1/gallon for algal – Capital and Operating Costs. First 150 – Certifications/Qualifications – lack of any mass/commercial producti The Markets Cost Challenges • •

Algae for Energy cated to or degrees in phycology, the the “experts”, and most were in the excluding GMO research as part of (mercury) study of algae and a subdiscipline botany. room at the Algae Biomass Summit. BAA08-07 – Land requirements for open ponds – CO2 from coal plants provide a necessary input but also NOx and Hg – No U.S. university offers a program dedi – GMO issue. DARPA is specifically – cadre of researchers constitute Small Permitting/Environmental Research Challenges • •

Algae for Energy National dles. Fewer political hurdles /Terrestrial biofuels, the carbon crop that can solve our energy virtually every scientist studying the growing acceptance of “peak oil” and ed algae to the forefront of biofuels and kely face significant scrutiny for a variety of face significant kely es closer than any other plant...” ( : Longer period 10-20 years. : Projects market readiness at 5 years. : Major technical and economic hur : Scrutiny of “First Generation” : “There is no magic-bullet fuel Wants 50mmgy JP-8 contract within 48 months. : , October, 2007). Sempra Utilities: DARPA: Network on Biofixation – – – woes without harming the environment, says issue. But most say that algae ...com Geographic at this point, but the “first” will li facility reasons. THANK YOU!! debate, ambitious renewable fuel standards, other macro-level catalysts have catapult as a high-impact contributor to solving global problems. CONCLUSIONS • Interest Increased • No Magic Bullet • Hurdles Significant • Algae for Energy •Timeframes

uding Shidler Gonzaga Gonzaga , 2006 , 2005 Biofuels Journal upreme Court and as director for ent supply agreements for the wind, opriations for multiple subcommittees. Standard the Energy mandated Policy by & Technology; Recipient, CALI Excellence for the Future lity for On-Line Conduct between Private Parties,” 2 “William O. Douglas: The Gadfly of Washington,”“William O. Douglas: The Gadfly 40 Shidler Journal of Law, Commerce & Technology hurst of the Washington State S sed on federal and state legislative and regulatory process, incl onsini Goodrich his practice & Rosati, where focuses on renewable ation of Renewable Fuels Standard,” ng and reviewing engineering, procurement, and construction now State Senator,now Mark Wyland. In addition, he served as a 17, 2006 ents, energy supply agreements, and equipm entation of the federal Renewable Fuel ge R. Nethercutt, Jr. where he handled appr ge R. Nethercutt, Jr. where 259, 2005 J.D., University of Washington School of Law, 2006 External Affairs Editor, Shidler Journal for Law, Commerce Award, Criminal Law; Berman Environmental Law Clinic Whitman College,B.A., 2000 With Honors; Magna Cum Laude; Phi Beta Kappa; Recipient, Chester Maxey Politics C. Award Steering Committee, Algae Biomass Summit Member, Energy Bar Association Member, Washington State Bar Association Member, American Bar Association “RFS Rulemaking: EPA Proposes Implement “The Spy Act: Ditching“The Damages as an Element Spy of Liabi Journal of Law, Commerce & Technology “Defining Spyware: Necessary or Dangerous,” 2 Law Review Co-author with Co-author Thewith Honorable E. Fairhurst, Mary • • • • • • • • • • solar, biomass, and biofuels industries. Andrew also has advi Andrew Braff isAndrew an associate in the Seattle office at Wilson S energy projectenergy development.His experience includes drafti agreements, operation and maintenance agreem the Environmental Protection Agency's implem Act and various state renewable portfolio standards. previouslyAndrew served as E. for Justice Mary an extern Fair EDUCATION: legislative assistant to Congressman Geor ASSOCIATIONS AND MEMBERSHIPS: SELECT PUBLICATIONS: policy and public affairs for California State Assemblyman, Andrew T. Braff

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