Prospective Investor Pitch by jianglifang


									Carbon Emissions to Biofuels
Clean Energy through Biotechnology
To profitably recycle carbon emissions to biofuels.
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
                       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
                       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


                                                               Green Power

    Flue                                                       Bio-Diesel

                                                               Protein Meal
                       Patented Algal
Potential Uses for Micro-Algae
The Algae produced can be used in a number of different ways


Algae Benefits
Biofuel Potential v Current         Tonnes of CO2 Recycled
       Feed stocks                     per Year / Hectare


                                                               Generation 3



                                                                Generation 4

                                       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

                                                                               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 DOE initiates $50m algae program.
1990’s        Japan MITI $200m bioreactor program .
              German and other EU Government
              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)
              First installation at MIT
Operational and Technology Milestones (continued)
Generation 3 (2007) Vertical Thin Film Bioreactor              Generation 4 (2008) Horizontal Thin Film Bioreactor


• 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
               $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.

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