Biorefineries: Perspectives on Finance and Construction Moderator: Martin A. Sabarsky, CEO December 9, 2013 © Cellana Inc. 2013 Page 1 © Cellana 2013 Summary of Cellana Updates Since Last PacRim 1. Commercialization Progress A. Off-Take Agreement with Neste Oil for biofuel applications B. 2nd successful large-scale feed trial for chicken feed (fishmeal was 1st) C. Successful sampling of initial Omega-3 nutritional oils D. Multiple potential Phase 1 Commercial Facility locations being reviewed 2. Production / Technology Progress A. More than 10 different strains grown at KDF at industrial scale B. Hit minimum biomass/O3 growth rates with multiple candidate strains to progress to process optimization 3. Grants Progress A. Kick-off of ATP3 Program (DOE-funded consortium led by ASU) Page 2 © Cellana 2013 Intensive, Efficient Algae Production at the Kona Demonstration Facility (KDF) on Hawaii • 2.5 hectare site in Kona, HI • $20MM replacement cost; owned free & clear by Cellana • >750,000 liter large-scale cultivation capacity • Produced over 11 tons of microalgae since 2010 for R&D / testing purposes • Commercially significant biomass/oil yields (over 15 g/m2/day biomass yields) Page 3 © Cellana 2013 Cellana’s Biorefinery Business Model Builds on a Foundation of Biofuel Research to Address Additional Valuable Products Omega-3 nutritional oils and high-value aquaculture / animal feed products are an extension of Cellana's core competency - screening, developing, and producing algae biofuel feedstock. = oil separation $4B Omega-3 nutritional oils market 2 $1T+ fuels and energy 1 markets $9B aquaculture feed / fishmeal market $300B livestock feed market Page 4 © Cellana 2013 Three-Product Biorefinery: 3 Products From Each Strain Via ALDUO™ + “Conventional” Upstream/Downstream Processes • “Off-the-shelf” ag inputs + sunlight + CO2 + ALDUO™ = • “Off-the-shelf” harvesting, de-watering, & oil/biomass separation techniques Page 5 © Cellana 2013 Commercial-Scale Off-Take Agreement with Neste Oil • 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.” Page 6 © Cellana 2013 Over 5 MT of Cellana’s ReNew™ Feed Used in Diverse & Successful Feed Trials • Finfish, shellfish, chicken, pigs, cattle – most major sources of meat • Successful large-scale feed trial for Salmon, Carp, & Shrimp – Marine microalgae from biorefinery as a potential feed protein source for Atlantic salmon, common carp and whiteleg shrimp, V. Kiron (Bodo University) et al., published online: Aquaculture Nutrition, 3 APR 2012 ▪ Cellana’s ReNew Feed was acceptable for the three animals at the maximum levels tested (Salmon 10%, Carp 40%, Shrimp 40%) ▪ There were negligible differences in growth and hardly any in the biochemical composition during the study period • Successful large-scale feed trial for Broiler Chicks – Potential and Limitation of a New Defatted Diatom Microalgal Biomass in Replacing Soybean Meal and Corn in Diets for Broiler Chickens, Xin Gen Lei (Cornell) et al., published online: J. Agric. Food Chem., 4 JULY 2013 ▪ Cellana’s ReNew™ Feed could substitute for 7.5% of soybean meal alone, or in combination with corn, in diets for broiler chicks when appropriate amino acids are added Page 7 © Cellana 2013 Cellana’s culture collection –> rich in Omega-3s Large collection of strains for high value co-products - Large collection of high C003 C010 C543 C624 C739 C870 C870 C870 C971 KA 21 KA 28 KA 29 performing strains, rich KA11 KA19 KA22 KA23 KA24 KA18 40% in Omega-3 fatty acids EPA DHA 35% - 2+ MT EPA-rich 30% biomass produced 25% 20% - Additional strains % fatty %fatty acids 15% making both EPA & 10% DHA are in large-scale production at KDF 5% 0% - Ability to screen for C20:4 C20:5 C24:0 C22:5 C22:6 other valuable PUFAs /lipids (e.g., DPA) Page 8 © Cellana 2013 Modular, Flexible Scale-Up Enables Low-Risk, Cost-Effective Facility Expansion X 11-hectare commercial production “module” commercial algae facility example (20 “modules” = 220 hectares) Page 9 © Cellana 2013 Modular Growth Enables Scale-Up of Technology to Commercial Facilities Other target sites around the globe identified – generally lower cost than in USA 2004+ 2004+ 2008+ 2015-2016 2018-2019 Laboratory Pilot Kona N. America, Phase 1 N. America, Phase 2 Research Facility Demonstration (88 hectares; (additional 88 hectares for 176 Facility $83MM capex; 2016 hectares total; $84MM additional (2.5 hectares) Production: ~4,600 MT) capex; 2019 Production: ~11,000 MT) Page 10 © Cellana 2013 Thank You For further information please visit www.cellana.com or contact: Martin Sabarsky Michael Kamdar Chief Executive Officer President [email protected] [email protected] (858) 774-7915 (858) 733-1308 Page 11 © Cellana 2013 .