Carbon Emissions to Biofuels Clean Energy through

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Carbon Emissions to BiofuelsClean 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
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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
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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.

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Algae Biotechnology Transforms Carbon Management
from a Cost Into a Revenue
Algae have Multiple Potential Uses
Sunlight
Green Power
Flue Gases
Bio-Diesel
Ethanol
Protein Meal
Patented Algal Biotechnology
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Potential Uses for Micro-Algae
The Algae produced can be used in a number of
different ways
Oil
Meal
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Biofuel Potential v Current Feed stocks
Algae Benefits
Tonnes of CO2 Recycled per Year / Hectare
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Biodiesel as Carbon Offset
The Carbon recycled through the growth of the
Micro-Algae is offset against Mineral Fuel that
would otherwise be mined and burnt therefore
releasing additional 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.
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Operational and Technology Milestones
Generation 1 (2004) Triangular Bioreactor
Generation 2 (2005-06) Tubular Bioreactor
History of Large Scale Algae Projects

• ACHIEVEMENTS
• Performance proven at MITs 20 MW power plant
• Successful operation in real world conditions
• Performance independently validated
• 86 of NOx removed
• Up to 82 of CO2 removed (Daylight Hours)

• ACHIEVEMENTS
• Field Trial at APS Redhawk Power Station Arizona
• Submerged air-lift bioreactors
• Algal Growth Rates Confirmed possibility of 300t
  per hectare
• Biofuel yield validation

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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
• Consistent Growth Rates achieved at an annualised
  rate of over 300t per annum of Algal Biomass.
• Proved conceptual economic model for Capex v Opex
  v Growth Rate
• 660 Tonnes of CO2 recycled per hectare installed

• ACHIEVEMENTS
• Thin Film Bioreactor setup includes equipment for
  Algal Harvesting, Dewatering, and Water Recycling
  utilising Bulk Flue Gases
• Significantly reduced Capex
• 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

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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
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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.
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.
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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.

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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.