CGC by wufengmei007


									                                                                               MARYLAND CLEAN ENERGY TECHNOLOGY INCUBATOR
                                                                              1448 SOUTH ROLLING ROAD, BALTIMORE, MD 21227

  Clean Green Chesapeake (CGC): Integrated Systems for Algae Wastewater Treatment and Biofuels Production:
The Chesapeake Bay is the nation’s largest estuary and holds environmental importance for the 17 million people who live
in its watershed. The health of the Bay, however, has been diminished significantly due to pollution and nutrient load with
similar problems existing worldwide. Restoration of the Chesapeake over the next ten years will require investment of over
10 billion dollars. This presents a tremendous economic opportunity to address a large and growing market for
wastewater treatment, CO2 abatement, and biofuel production. CGC will seek to meet that opportunity.
Algae are able to use sunlight, CO2, and nutrients from the water to produce valuable products. Oil-rich algae are especially
well suited for biofuel production. The vision of CGC is to harness the biological power of algae to convert
wastewater into biofuels and high-value products.
CGC’s goals are to design, develop, patent, and deploy technologies in the following areas:
   1. Maintenance of a single highly productive local algae species in polymicrobial communities found in wastewater.
   2. Transformative membrane algae growth systems, which allow optimal growth of the desired algae species.
   3. Revolutionary oil extraction and purification processes.
   4. Integrated algae systems that remediate wastewater while producing biofuels, and high -value co-products.
   5. Modular cultivation systems that can be implemented at small- to moderate-scales or at very large scale.
Competitive Advantage Due to Strong Partnerships: CGC is a founding member of the Algal BioEnergy Alliance (ABA).
The ABA is comprised of researchers from the Johns Hopkins University (JHU), University of Maryland Center for
Environmental Sciences (UMCES), University of Maryland-Baltimore County (UMBC), University of Nebraska-Lincoln
(UNL), and New Mexico State University (NMSU). The ABA has an immense depth of expertise and provides CGC with
a clear competitive advantage. The ABA allows CGC access to multi-million dollar research programs unavailable to other
start-ups. CGC will be able to leverage this expertise to develop a rich portfolio of licensed and internally owned IP. CGC
also maintains particularly strong ties with JHU in both the Department of Chemical & Biomolecular Engineering (ChemBE)
and the Applied Physics Laboratory (APL). CGC is actively involved in a Phase I Department of Energy grant awarded to
JHU ChemBE and Synaptic Research (SR) to support the development of a novel process to extract oil from algae.
Furthermore, CGC holds an exclusive option agreement with APL for a revolutionary algal growth system.
Market Scale, Investor Interest in Algae, and IP Opportunities for CGC: Algae biofuels have captured the interest of the
energy industry and venture capital community. Some especially noteworthy investments include a $600 million
investment by Exxon/Mobil in Synthetic Genomics for algae biofuels; investments by Shell, Chevron, BP, Conoco/Philips,
and others in algae biofuels startups. A $100 million investment by Bill Gates’ Cascade Investments in Sapphire Energy is
another indication of interest. Several other algae biofuel startups include Solazyme, Solix, Aurora, and HR BioPetroleum.
PetroAlgae, and others who have raised substantial venture capital. Substantial production of algal biofuels is probably five
years off, but now is the time for developing an IP position in this expanding field. IP development is a central goal of
How is the CGC approach different and what is our competitive edge? CGC’s focus is unique and brings in an entirely
new vast value stream: environmental enhancement and wastewater remediation with algae. The Chesapeake
presents the market opportunity and the need to develop the use of algae for wastewater treatment, biofuels, and high -
value co-products. The transformative IP portfolio created by CGC through the focus on the Chesapeake will be of critical
value to the established biofuels ventures as well. Transforming existing biofuel efforts into economically viable biofuel
production with patented CGC technology will represent a major market opportunity and revenue producer for CGC.
The near term strategy for CGC is to develop and license IP to major corporations and pursue funding opportunities to
develop such IP from government agencies. Because this portfolio of IP will be centered on the processes necessary for
wastewater treatment and algal biofuels production, CGC will be well positioned to install facilities on the Chesapeake and
elsewhere within 3 to 5 years. The IP development strategy of CGC will be a combination of in house development,
sponsored highly directed R+D with ABA members, and deployment of pilot, demonstration and full scale systems to
expand and validate the IP, test and mature CGC technology in the Chesapeake.

    Clean Green Chesapeake, LLC     •   1448 South Rolling Road, Baltimore, MD 21227   •   410-262-3971   •
                                                                                        MARYLAND CLEAN ENERGY TECHNOLOGY INCUBATOR
                                                                                       1448 SOUTH ROLLING ROAD, BALTIMORE, MD 21227

CGC has multiple avenues for future exponential growth of investor value. The CGC production processes will fulfill
global demands for energy and environmental renewal. This represents a vast market well in excess of a $250 B/year for
environmental treatments and $100 B/year for renewable biofuels by 2015, particularly in the Asia. CGC can capture
substantial portions of these markets through IP licensing and deployment of its systems.
Commercialization Opportunities
Pilot Units of $250 K to $500 K in value within 18 months. We anticipate the installation of approximately 1 to 3 of these
units. The design of these units is expected to incorporate and validate patented or licensed technologies.
Demonstration Units with a value of $1 to $5 M per unit. CGC hopes to install 3 to 5 of these units within 3 years. Markets
may include townships installing waste treatment systems, poultry industry (e.g. farms on Eastern shore), factories (e.g.
food processing) and energy companies (e.g. Constellation).
Full-Scale Units with value of $10M to $50 M per unit in the 5 to 8 year time frame. Installation of 5 to 10 of these units is
Local Competition
Chesapeake Algae Project (ChAP) project at the William and Mary, Virginia Institute of Marine Science (VIMS),
HydroMentia, and funded by $3 M grant from Norway’s StatoilHydro to use algae for wastewater treatment and biofuels.
This project utilizes an Algal Turf Scrubber system. The species of algae is uncontrolled and, thus, the algae product value
for biofuels and other co-products is greatly diminished. The CGC approach will involve membrane algae growth systems to
control algae species for optimal production of biofuels and high-value co-products.
Algaewheel facility at Hopewell, VA involving a $600 K ARRA stimulus project for wastewater treatment. The technology
applied in this system is capital intensive and the species of algae are also uncontrolled.
Investment – Cost & Value Proposition
 Investment Phases         Investment            Duration                                   Use of Funds
 IP Development           $500,000              6 to 9 months   Create IP around the five goals listed above in conjunction with ABA
 Lab-Scale Prototype      $1,000,000            1 year          Design & prototype lab-scale equipment to test and strengthen IP
 Field-Scale Prototype    $3-5 Million          2 to 3 years    Design & test prototype CGC systems and strengthen IP

             Value Streams                        Chesapeake Region Market (in 5 years)               CGC Market Share (in 8 years)
 Nutrient Discharge Reduction                $ 1 B/year                                            $ 50 M/year
 Biofuels                                    $ 100-200 M/year                                      $ 50 M/year
 CO2 Abatement                               $ 100 M/year dependant on legislation                 $ 5 M/year
 Agricultural and Aquacultural Feed          $ 50-100 M/year                                       $ 10-20 M/year

Chesapeake Region presents (1%) of the potential global market for wastewater treatment. With the Chesapeake
and Global market combined CGC technology has the potential to exceed $100 M in 5 to 8 years.
Facilities: CGC occupies laboratory and office space at the Maryland Clean Energy Technology Incubator at 1448 South
Rolling Road, Baltimore MD 21227. CGC also maintains very close relationships with the ABA members at UNL, JHU, JHU-
APL, UMBC, UMCES, and NMSU utilizing lab space at these sites.
The Team: CGC is lead by its President George A. Oyler. Dr. Oyler has an extensive background in biotechnology and
startups. He is leading the successful biotech start-up, Synaptic Research LLC at the UMBC TechCenter. CGC is
expanding to employ two full -time research scientists with Masters in Chemical and Biomolecular Engineering under the
direction of Julian Rosenberg. Senior Engineering consulting is provided by Tom Fekete who has over 40 years of
experience in chemical and process engineering. Business consulting, strategic development, IP advising, and partnership
in CGC are provided by Optimus Energy and Wendell B. Leimbach.

    Clean Green Chesapeake, LLC          •   1448 South Rolling Road, Baltimore, MD 21227      •   410-262-3971    •

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