Carbon Emissions to Biofuels Clean Energy through Biotechnology Mission: To profitably recycle carbon emissions to biofuels. Vision: To provide carbon management, combined with the production of clean fuels culminating in an efficient, profitable business venture. This venture approach supports team building that combines the complementary resources and capabilities of multiple companies dedicated to environmental stewardship and energy independence. August 2008 Potential Applications The Greenfuel Technologies Emissions to BiofuelsTM technology is capable of being implemented at any facility that has CO2 emissions. The limiting factor for scale is either the land available or the volume of emissions. Gas Processing Facility Water Treatment Plant Anaerobic Digestion and Power Generation Gas Fired Power Station Industrial Processing Facility Coal Fired Power Station What is Micro-Algae? Micro-Algae is a plant that grows by multiplying itself by splitting in two, similar to animal cells. Algae is made up of various percentages of: • Carbohydrates • Lipids (Oil) • Protein These percentages depend on the specific strain, and growth conditions. Its size varies, but generally is between 2 and 15 Microns. Will grow in any Water Condition, including Saline Aquifer, Tertiary Treated Waste Water, and sea water. Algae can be found growing in all conditions on Earth. Algae Biotechnology Transforms Carbon Management from a Cost Into a Revenue Algae have Multiple Potential Uses Cleaned Gases Sunlight Co-Firing Green Power Esterification Flue Bio-Diesel Gases Fermentation Ethanol Protein Meal Patented Algal Biotechnology Potential Uses for Micro-Algae The Algae produced can be used in a number of different ways Oil Meal Algae Benefits Biofuel Potential v Current Tonnes of CO2 Recycled Feed stocks per Year / Hectare 700 600 Generation 3 500 400 300 200 Generation 4 100 - Forest GreenFuel Sequestration Sequestration Biodiesel as Carbon Offset The Carbon recycled Mineral Diesel UCO/Tallow/Canola Biodiesel Algae Biodiesel through the growth of the Micro-Algae is 100,000,000 Litres of Diesel 100,000,000 Litres of BioDiesel 100,000,000 Litres of BioDiesel offset against Mineral 2.67 Kg/L CO2 0.57405 Kg/L CO2 0.3204 Kg/L CO2 Fuel that would 267,000,000 Kg of CO2 57,405,000 Kg of CO2 32,040,000 Kg of CO2 otherwise be mined 267,000 tonnes of CO2 57,405 tonnes of CO2 32,040 tonnes of CO2 and burnt therefore TONNES OF TONNES OF releasing additional 209,595 CARBON OFFSET 234,960 CARBON OFFSET CO2. Note: Based on an average 60 litre Fuel Tank, using a B20 Biodiesel blend will save approx 25 kg of CO2 emission per fill. Operational and Technology Milestones Generation 1 (2004) Generation 2 (2005-06) History of Large Scale Algae Projects Triangular Bioreactor Tubular Bioreactor 1950’s MIT Feasibility tests for CO2 Conversion 1970-80’s UC Berkley Wastewater treatment system. First commercial open pond algal farms in US. US DOE initiates $50m algae program. 1990’s Japan MITI $200m bioreactor program . German and other EU Government programs. Commercial farms begin production for Nutraceuticals. Over 4,000 tonnes per ACHIEVEMENTS ACHIEVEMENTS annum is grown in facilities in Australia, • Performance proven at MIT’s 20 • Field Trial at APS Redhawk Power Israel and China. MW power plant Station Arizona NASA – MIT joint investigation into the • Successful operation in real world • Submerged air-lift bioreactors growth of Micro-Algae on the International conditions • Algal Growth Rates Confirmed Space Station for scrubbing CO2 and • Performance independently possibility of 300t per hectare creating fuel. validated • Biofuel yield validation 2001 GreenFuel Technology founded with team • 86% of NOx removed from NASA study • Up to 82% of CO2 removed 2001-04 Laboratory design and experimentation (Daylight Hours) 2004 First installation at MIT Operational and Technology Milestones (continued) Generation 3 (2007) Vertical Thin Film Bioreactor Generation 4 (2008) Horizontal Thin Film Bioreactor ACHIEVEMENTS • Engineering Scale Unit Developed, Proprietary Design • Setup includes equipment for Algal Harvesting, Dewatering, and Water Recycling • Introduction of Bulk Flue Gases ACHIEVEMENTS • Consistent Growth Rates achieved at an annualised rate of • Thin Film Bioreactor setup includes equipment for over 300t per annum of Algal Biomass. Algal Harvesting, Dewatering, and Water Recycling utilising Bulk Flue Gases • Proved conceptual economic model for Capex v Opex v Growth Rate • Significantly reduced Capex • 660 Tonnes of CO2 recycled per hectare installed • Economic Commercial Scale project • Consistent Growth Rates achieved at an annualised rate of over 100t per annum of Algal Biomass. • 220 Tonnes of CO2 recycled per hectare installed Burn Algae as Biomass At a bare minimum, the Algal Biomass that is produced could be burned back in the generation of Electricity. Algae has been independently tested to have an energy of 27Mj/kg, which is equivalent to Black Coal. As you can see from the figures below, this use does not support a profitable project, but depending on the coal price and the cost of carbon, can be run at a breakeven, and could be argued to be equal to Geo-sequestration. Breakeven based on cost of CO2 for different coal costs, not including amortisation Cost of C02 Cost of Coal Sequestration $10 $74 $30 $65 $60 $51 Biodiesel Situation in Australia There were a number of major Biodiesel manufacturing facilities in Australia. Most of these have closed due to high operating costs and high raw material costs. The Victor Smorgon Group takes the view that Biodiesel is a sustainable business at these cost levels, assuming there is an efficient management structure and processing efficiencies. BioMax VICTORIA 100,000,000 Operational Canola (Smorgon Fuels) litres Tallow Used Cooking Oil Australian Renewable SA / WA 80,000,000 Closed due to Tallow Fuels cost structure Canola Australian Biodiesel NSW / QLD 200,000,000 Closed due to Tallow Group cost structure Natural Fuels NT 140,000,000 Operational Palm Oil Biodiesel Industries of NSW (Newcastle) 15,000,000 Operational Used Cooking Oil Australia Tallow VIC (Barnawotha) ???? Start Up ???? Micro-Algal Oil could be used in all of these facilities at a cost that would enable consistent and economic production, even once taking into account the high costs of being a public company. BioMax (Smorgon Fuels) is currently trialing and selling Biodiesel product to a variety of different customers in Victoria, NSW, and SA. These include government and public & private entities. Benefits to Australia Economic Benefit The Hazelwood Facility alone has the potential of reducing in excess of $100 million worth of imported product, either from Interstate or Overseas, based on an Australia wide refining shortfall of 20% of fuel usage. Animal Feed material will be readily available to support the growth of the animal feed-lot industry. Energy Security To completely replace Diesel Fuel used in Victoria, it would require approximately 51,500 hectares of Bioreactor installation, which is less land requirement than the MIS (Managed Investment Scheme) Industry in Victoria. We accept that this is not a reality, however, it demonstrates the potential of our project. Recycling CO2 The Emissions to Biofuels process is capable of recycling CO2 from any emitter, with the limitation being the available land. Challenges to Algae Bio-sequestration Government Policy Greenhouse gas abatement policy on both sides of politics is currently focussed on “clean coal technology” including “post combustion carbon capture and storage” (geo-sequestration) and gasification, and a rapidly developing credit system for greenhouse gas abatement through, among other things, agriculture or “traditional bio-sequestration”. What the algae solution represents is a new clean coal alternative which falls into both these categories. In effect it is a “post combustion carbon capture and recycling” technology. As it is a candidate in both camps, it is not currently being considered legitimate or eligible in either. And, because this technology falls into all these areas, it risks being perceived as neither fish nor fowl. Policy to date has not fully contemplated solutions such as algae, that falls between the gaps, because they do not fit neatly into just one of the boxes: PCCC (Post Combustion Carbon Capture), GGA (Greenhouse Gas Abatement) or RECs (Renewable Energy Certificates). Biodiesel Usage Unless there is an increase in the use of Biodiesel, or a significantly increased cost of carbon, this technology will stall, due to there not being an economic output for the material.