Algae Biomass Organization www.algaebiomass.org 507-765-2134


# Algae Industry Project Book 2013

Why Algae? Algae Fuels, Feed and More Algae have the power to simulta

- Algae are a renewable source of dropneously put fuels in our vehicles, in fuels, feed, fertilzer, nutritional oils recycle CO2, provide nutrition for and pharmaceuticals. They can pro

animals and people and create jobs vide waste water treatment other re

for millions of Americans. mediation services. New applications are constantly being discovered.

# Renewable Fuels 

# Algae Sustainable Food and Feed Domestic Jobs Energy Security

The Algae Industry in the United States

Billions of dollars are being invested in the research and development of algae-based tech

nologies. The focus of today’s algae industry is on bringing the advances of science and technology for the production of algae products into the marketplace. These efforts are proceeding quickly, primarily driven by those that recognize algae’s high per-acre-yield and its suitability for making a variety of different products, from the small volume/high value commodities, like chemicals and nutraceuticals, to the large volume commodities such as fuels and feeds.



### The Technology

Algae can be grown commercially in a variety of ways, from open ponds to enclosed pho

tobioreactors, or from hybrid systems that combine various methods. Simply put, there is no one single way to grow algae at commercial scale, and this versatility is one of algae’s strengths. Algae can also grow extremely well on marginal lands using salt water or wastewater, re

ducing impacts on valuable agricultural lands without competing with other industries for diminishing freshwater supplies.



### Fuels and Other Products

Algae contain high levels of oils, carbohydrates, sugars and proteins. These characteristics make them ideal for producing renewable fuel, animal feed and even human food.
Microalgal biomass, which is rich in micronutrients, is already used for dietary supple

ments to advance human health. Algae has even been used to more economically produce anti-cancer drugs and in other medical applications. They can also be used to beneficially reuse greenhouse gas emissions and treat wastewater.



### The Opportunities
Algae-based fuels can be produced domestically, improving America’s food and energy security. Algae can also grow in a wide variety of climates by a multitude of production methods, creating a wide variety of jobs throughout the United States. And their ability to grow on marginal lands, absorb CO 2 and treat wastewater means they can have a positive impact on our environment.Mary Rosenthal Executive Director

507-765-2134 mrosenthal@algaebiomass.org www.algaebiomass.org



### Industrial-Scale Science

Game-changing energy technologies don’t commercialize themselves. In addition to hard work, scientific breakthroughs and engineering feats, new companies need support in the regulatory and policy arenas. Since 2008, the Algae Biomass Organization – the trade association for the US Algae Industry – has helped its 250+ membership accelerate the commercialization of sustainablecommodities produced from algae by serving as an advocate and a voice for the industry on Capitol Hill.The member companies highlighted in this Algae Industry Project Book are just a few of the hundreds of startups, universities, national labs and Fortune 500 companies developing algae’s unique ability to drive economic growth, enable food and energy security and reduce harmful greenhouse gas emissions. Whether it’s Green Crude from Sapphire Energy, high value cosmetics and nutritional products from Heliae, ethanol from Algenol, beneficial CO reuse from Duke Energy, or any of the many 2 promising projects listed in this book, you will find the algae industry well positioned to make a significant, triple bottom-line impact on our nation. This success you see in these pages will continue to be a team effort. It is important to remember that all innovative companies can benefit from partnerships and support when deploying newtechnologies to scale. Partnerships with, and funding from, agencies like the Departments of Energy and Agriculture and support from state legislatures and Members of Congress have catapulted the industry forward. With billions of dollars in venture capital, ambitious entrepreneurs, and engagement from large corporations like FedEx, Boeing, Kimberly-Clark, and United Airlines the algae industry is poised to offer a new and sustainable source of products and materials for the global supply chain. Take a look in the following pages and see for yourself. Sincerely, Mary Rosenthal Executive Director Algae Biomass Organization

### Algenol Biofuels Inc.
Algenol is an industrial biotechnology company that is commercializing its al

gae-based technology platform for the production of ethanol and other biofuels. The Company’s patented Direct To Eth

anol® technology enables the production of ethanol for around $1.20 per gallon us

ing sunlight, carbon dioxide, marginal land and saltwater at production levels above 10,000 gallons of ethanol per acre per year. Waste algae from the process are utilizedin conversion technologies to produce diesel, jet fuel and gasoline. Algenol operates a commercial development campus in Ft. Myers, FL with 60,000ft2 of laboratory and office space, a 4-acre outdoor process development unit and a 36-acre pilot scale integrated biorefinery. 

## Commercial Development Campus Fort Myers, Florida

Investment: $190 million Current capacity is 10,000 gallons per acre per year

Ethanol Employees 

# 164 Funds Raised 

## $190 million Products ULS Diesel Jet Fuel Gasoline 

### Algenol Biofuels Partners

Strategic Partners: Reliance Industries Limited; BioFields S.A.P.I. de C.V.

Federal/State Partners: United States Department of Energy; Lee County, Florida

University Partners: Florida Gulf Coast University; Georgia Institute of Technology’s Strategic Energy Institute, with contributions from The University of Colorado

National Lab Partners: National Renewable Energy Laboratory; Pacific Northwest National LaboratoryTIMELINE 

## 2006 Algenol is founded after securing its first roundof private financing. Laboratories areestablished in Baltimore, MD and Berlin, Germany. 

## 2010Commercial Development Campus in FortMyers begins operations, consolidating American operations in Florida. 

## 2013

Demonstration of commercial viability at Integrated Biorefinery.Evaluating first commercial sites in Florida, Texas and other States. 

## 2014
Commercial scale production facility with nameplate capacity of 20 million gallons per year broken ground. 

## 2020Projected 1 billion gallons of annual production utilizing Direct to Ethanol® technology.

## Future Commercial Facility

Investment: ≥ $180 million Projected Capacity by 2015: 20 million gallons per year

Algenol’s first commercial facility will include an initial deployment of photobioreactors on 400 acres on a site that willfacilitate a future scale-up to 1,500 to 2,000 acres of photobioreactors along with upstream and downstream processing equipment and related infrastructure. It will be located on marginal land with access to salt water and an industrial source of CO 2 .



### Projected jobs by 2020: Production in 2020: Construction jobs:



## 500 permanent jobs per facility 2,000 per facility 

# 1 billion gallons

of ethanol per year

Algenol uses fully closed and sealed photobioreactors for ethanol production directly from enhanced algae. Waste algae are converted into diesel, jet fuel and gasoline using hydrothermal liquefaction and other conversion technologies.

### Sapphire Energy
San Diego based Sapphire Energy is pio

neering an entirely new industry – Green Crude Oil Production. Green Crude is a renewable, drop-in replacement for pe

troleum, made from algae, sunlight and CO 2 . Green Crude is compatible with existing infrastructure; and is low carbon, renewable, and scalable. Sapphire Energy was the first algae-to-energy company to successfully test their jet fuel in two com

mercial airline flights in 2009 (Continental and Japan Airlines). The company has an R&D facility in Las Cruces, NM, and is currently operating and producing crude oil daily from the world’s first Integrated Algal BioRefinery (Green Crude Farm) commercial demonstration facility in Co

lumbus, NM.



### Green Crude Oil, Funds 

### a direct substitute Employees 

## $350 million Products 

# 150 Raised 

### for fossil crude 

### Sapphire Energy’s Partners

Investment Partners: ARCH Venture Partners; The Wellcome Trust; Cascade Investment, LLC; Venrock; Arrowpoint; and Monsanto Strategic Partners: Monsanto, The Linde Group; Tesoro Refining and Marketing Company, LLC; and the Institute of Systems Biology (ISB)
Federal/State Partners: The US Department of Energy and the US Department of Agriculture University/Research Partners: The Department of Energy’s Joint Genome Institute; University of California, San Di

ego; the San Diego Center for Algal Biotechnology; The Scripps Research Institute; University of Tulsa; Sandia National Laboratory; and the Pacific Northwest National Laboratory 

## Research and Development Site Las Cruces, New Mexico
Investment: $30 million Jobs: 30Full scale pilot and demonstration of all unit operations from molecular biology to extraction of oil.TIMELINE 

## 2008 One year after itsfounding, Sapphire Energy creates the world’s first renewable gasoline from algae. 

## 2009 Sapphire Energy’s algae jet fuel powers the world’s first renewabletest flights on two commercial airliners. 

## 2012
On-time and on-budget completion of first phase construction for the Green Crude Farm. 

## 2013 Sapphire Energy announces agreement with Tesoro Refining and Marketing LLC, to purchase barrels of Green Crude oil for refining at its west coast operations. 

## 2018 Anticipated launch of first commercial scalefacility with production of 5,000 to 10,000 barrels per day of Green Crude oil.

## Green Crude Farm Columbus, NM Investment: $135 million Jobs: 30 Full capacity: 100 barrels of green crude per day.

Sapphire Energy’s Green Crude Farm features 100 acres of cultivation ponds and all the necessary mechanical and processing equipment needed to harvest and extract algae and recycle water. At full capacity the facility will be 300 acres. The Green Crude Farm was funded by $85 million in private investment, as well as a USDA loan guarantee and a $50 million grant from the US DOE, totaling $135 million.



# 5,000 - 10,000 Barrels per day of Green Crude at a commercial scale facility: Continuous operation of all unit

processes at the Green Crude Farm since: 

# 2012 Jobs created during the construction of the Green Crude Farm: 

# 634

Sapphire Energy is operating the most advanced, algae crude oil production facility in the world. The company’s Green Crude Farm is theworld’s first commercial demonstration scale algae-to-energy site, integrating the entire value chain of algae-based crude oil production, from cultivation, to harvest, to extraction of ready-to-refine Green Crude.

### BioProcess Algae
BioProcess Algae, LLC designs, builds and operates commercial scale bioreactors that enable efficient conversion of light and CO into high value microbial feedstock. 2 BioProcess Algae is focused on fulfilling feedstock needs in the animal feeds and transportation fuels industries for cost competitive alternatives with favorable carbon balances. BioProcess Algae is based in Portsmouth, RI and is currently running a demonstration plant at the Green Plains Renewable Energy, Inc. ethanol plant in Shenandoah, Iowa. Grower HarvesterTM bioreactors installed in Shenandoah are tied directly into the plant’s CO 2 exhaust gas and have been operating continuously since inoculation in October 2009. 

## Company Headquarters Portsmouth, Rhode Island BPA Portsmouth houses engineering, manufacturing, business development and administration.

Animal Feed Employees 

# 40 Investment 

### Nutritionals Fuels 

## $50 million Products



### BioProcess Algae’s Partners to date

Investment Partners: Clarcor (NYSE: CLC); BioProcessH2O LLC and Green Plains Renewable Energy, Inc. (NASDQ: GPRE).

Federal/State Partners: The US Department of Energy

Lab Partners: Bigelow Laboratory for Ocean SciencesTIMELINE 

## 2008 2009 2012 BioProcess Algae LLC is a joint venture between Green Plains,Clarcor Inc. and BioProcessH2O. Demonstration plant co-located with a Green Plains’ ethanol plant in Shenandoah. Succesful completion of algae-based poultry feed trials, signs commercial agreement for Omega-3 oils with KD-Pharmafor nutrition and pharmaceutical applications. 

## 2013 BPA completes its Phase III project, which consists of commercialscale Grower Harvesters. Selected by DOEfor Integrated Biorefinery funding. 

## 2020 Projected to have 25 co-locations with 375,000 tons of dry weight biomass per year and 750 full-time employees.

## Commercial Demonstration Facility
Shenandoah, Iowa Full capacity: One metric ton of biomass per day following Phase 4 expansion in 2014

Jobs projected in 2020: Tons produced per day in 2020: Projected construction jobs: 

# 375,000 BPA technology enables algae to be produced as a crop, and growing crops is something Americans do phenomenally well. Not only does that give BPA an ideal opportunity to create agricultural jobs, but it also means that the company has no reason to outsource operations. BPA is producing a home-grown and home-processed product that can help achieve our country’s most long-term goals: feeding the world and sound financial standing.


# 3700 750

BioProcess Algae designs, manufacturers and operates integrated systems using a unique patented attached growth approach to enhance light pentration, harvest density and gas transfer, overcoming these traditional bottlenecks to low-cost algae cultivation.Heliae
Heliae® is a platform technology compa

ny that uses sunlight and low-cost carbon feedstocks to produce high-value products from algae. Based in Gilbert, Arizona, He

liae is leveraging its core production tech

nology into four target markets: nutrition, therapeutics, health & beauty and agrosci

ences. With a seasoned management team and world-class science, Heliae is advanc

ing the future of the algae industry by de

livering novel algae-based products to dy

namic markets around the world.

MARKETS

• Nutrition

• Therapeutics

• Health & Beauty

• Agrosciences 

## Company Headquarters Gilbert, Arizona
Jobs: 104

PARTNERSMars Family; Salim Group; Arizona State University; Wageningen University; Clarecastle Group; others not disclosed

TECHNOLOGIES Heliae algae strains Algae production systems

Contamination Control Harvesting

Product Extraction

Since its founding, Heliae has harnessed an innovation culture todevelop advanced algae strains, production technology, and downstream processing equipment to optimize algae production for a range of product targets. Heliae is currently building a 20-acre commercial production facility located adjacent to its headquarters anddemonstration facility in Gilbert, AZ. The commercial facility is being built in phases, with a target completion of phase 1 in the third quarter of 2013. Heliae’s first commercial facility will focus on nutraceutical and cosmetics products with commercial off-takes already in place for the production capacity of the facility.TIMELINE 

## 2008 2010 2012
Heliae is founded. Demonstration Heliae awarded more facility constructed. than 50 patents. 

## 2013 2020Construction and completion of Algae production facilfirst commercial facility; Heliae ities operating around has been awarded more than 70 the world offering patents and has more than 350 innovative algae-based patents pending; Company is products for a range of executing on a global pipeline of industries. project opportunities.

### Aurora Algae
Aurora Algae is an innovative bioener

gy company that manufactures fuel from optimized algae in a patented production process. Leading technologists at Aurora Algae have engineered a scalable meth

od for fuel generation, using robust and highly productive proprietary algae strains. The Aurora Algae process is carbon-miti

gating and non-competitive with agricul

tural resources, and capable of industrial yields with minimal facility footprints. When produced in conjunction with other high-value products, Aurora Algae’s biofu

el can be sold at cost-competitive market prices.
PRODUCTS

• Biofuel

• Omega-3 Essential Fatty Acids

• Protein and Animal Feed 

## R&D and Pilot Processing Facility Hayward, California Jobs: 70 Corporate Headquarters with R&D laboratory for genetic research and product development.

PARTNERS Oak Investment Partners, Noventi Ventures, Gabriel Venture Partners



## Aurora’s Pilot-Scale Demonstration

Western Australia Jobs 50 Six 1-acre production ponds and more than 40 smaller ponds producing 15 tons of biomass per month. Aurora Algae’s proprietary algae strains and production process uses arid land, seawater and captured carbon pollution from industrial emitters, resulting in more capitally efficient and more environmentally sustainable algae farming.TIMELINE 

## 2007 Aurora Algae founded under original name “Aurora Biofuels.” 

## 2009 Completes successful pilot operations inFlorida. Biofuel production successfully passes ASTM standards. 

## 2010
Introduces the industry’s first platform for the production ofproducts in the pharmaceutical, nutritional supplement, aquaculture and fuels markets. 

## 2011 Completes build out of new US-based headquarters and labs. Completes construction of new plant in Western Australia. 

## 2012 Successfully completes requirements for two million dollar (AUD) Low Emissions Energy Development grant toadvance biomass production.

### Cellana
Cellana, a leading developer of algae-based bioproducts, uses the most productive plants on earth—marine microalgae—to photosynthetically produce its ReNewTM line of Omega-3 EPA and DHA oils, food and feed, and biofuel feedstocks.

PRODUCTS

• Omega-3 Nutritional Oils

• Food and Feed Supplements

• Biocrude Oil

Since 2009, Cellana has operated its Kona Demonstration Facility, a 6-acre, state-of-the-art production and research facility in Hawaii. To date, more than 20 metric tons of whole algae (dry weight) have been produced using Cellana’s ALDUO TM process with highly diverse strains, making ALDUO TM one of the most flexible, thoroughly tested, and validated outdoor algae production technologies in the world. Cellana is in the process of evaluating commercial algae facility locations in Hawaii, the mainland U.S., the Middle East North Africa region, and in Southeast Asia. Cellana’s biorefinery business model involves establishing off-take agreements for biofuels, food/feed, and Omega-3 nutritional oils to be produced in algae facilities throughout the world with a total capacity of at least 100,000 metric tons of biomass per year. 

## Kona Demonstration Facility Kailua-Kona, Hawaii
Jobs: 25-50 Investment: $20 million

PARTNERS U.S. Department of Energy and the Department of AgricultureTIMELINE 

## 2007 Cellana LLC, a joint venture between Royal Dutch Shell and HR BioPetroleum is formed. 

## 2009
Cellana’s Kona Demonstration Facility is commissioned and comes online. 

## 2013 Cellana signs commercial-scale agreement with Neste Oil, the world’s largest producer of renewable diesel. 

## 2014 Projected supply agreements for all three algae-derived products: Omega-3 oils, food/ feed, and biofuels. 

## 2015/2016 Projected completion ofCellana’s first commercial production facility.PARTNERSKY Department of Energy Development and Independence; US-China Clean Energy Research CenterAdvanced Coal Technology Consortia; ENN Group; Pittsburgh State University. Duke Energy and the University of Kentucky Duke Energy is the largest electric pow

er holding company in the United States with more than $110 billion in total assets. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States. The University of Kentucky’s Center for Applied Energy Research (UK CAER) is an interdisciplinary research center focused on the energy needs of the Common

wealth of Kentucky. The Center, through its technology innovation and service to the community, contributes to improving the lives of Kentuckians by creating jobs and economic opportunities; by sustaining vital industries and public services; and by improving energy efficiency and protecting the environment. 

## East Bend Demonstration Union, Kentucky Investment: $200,000 Capacity: 26,000 Liters

PRODUCTS

• CO 2 Remediation Services

• Algal Biomass

• Fuel and Aquaculture Feeds

A demonstration scale photobioreactor is currently being operated and expanded at Duke Energy’s East Bend Station located in Union, KY.The PBR converts the CO 2 in flue gas to algal biomass, via pho

tosynthesis. The biomass is then periodically harvested to supply feedstock for upgrading into value added products. The low energy harvesting system recycles water and unused nutrients.TIMELINE 

## 2008The University of Kentucky begins its algae project. 

## 2010 ENN performs strain evaluation using flue gas at Duke Energy’s East Bend Station. 

## 2012 Algae based CO 2 mitigation demonstration project started at Duke Energy’s East Bend Station. 

## 2013System volume expanded, first periods of sustained operation off of flue gas. 

## 2014Continue flue gas utilization studies/enhance collaboration with other strategic partners.

### Earthrise Nutritionals
Earthrise Nutritionals is the largest pro

ducer of Spirulina algae in the world. It is a 30-year pioneer in the field of Spir

ulina research, biomass production and marketing. Earthrise distributes Spirulina and Spirulina-based products for the food, functional food, dietary supplement, nutra

ceutical, and animal feed markets in more than 20 countries worldwide. Earthrise is currently engaged in research collaboration with major algae biofuel and bio-product companies worldwide. Earthrise is a whol

ly-owned subsidiary of DIC Corporation.

PRODUCTS

• Spirulina and Spirulina-based formulated greens products 

## Earthrise Calipatria Imperial Valley, California Jobs: 60 600 tons of Spirulina powder are produced each year in 37 ponds roughly 1.3 acres each.

Earthrise® operates the world’s largest Spirulina farm on a 108-acre site to supply more than 20 countries with the world’s best known Spirulina. In the clean, sunny California desert, Earthrise® Spirulina yields more nutrition per acre than any other food. In addition to its currently opearational ponds the company is testing two 2.5 and 4.5 acre ponds for biomassproduction, the latter being the largest fully lined outdoor raceway pond ever tested for algae biomass production. The facility has another 80 acres of empty land for future expansion.TIMELINE 

## 1972 The progenitor ofEarthrise, Proteus Corporation, is founded todevelop Spirulina bluegreen algae as a world food resource. 

## 1982 Earthrise develops apartnership with a Japanese company, Dainippon Ink and Chemicals, Inc. (the present DIC corporation). 

## 2005

Earthrise® Nutritionals is wholly owned by Dainippon Ink and Chemicals, Inc. (thepresent DIC corporation). 

## 2012Earthrise enters agreement with Sapphire Energy to license a spirulina strain foralgae-to-energy production. 

## 2013 Earthrise operates the world’s largest Spirulina farm, and together with sister companies’ farms, DIC group is the largest Spirulina producer in the world.

### Phycal
Phycal develops the biology, process

es, and projects for the production of biofuels and bioproducts from high-yield feedstocks such as algae and cassava. Phycal Algae, with the Department of Energy, is designing, building, and oper

ating a pilot algae farm and biorefinery near the Schoffield Barracks in Hawaii. Phycal Cassava is using a proprietary strain of high-yield cassava to produce low-cost sugar for algae production and ethanol that qualifies as Advanced Biofuel for the Renewable Fuel Standard.

PRODUCTS

• Algal Oil

• Bioproducts

• Jet Fuel 

## Pilot Algal Biorefinery Wahiawa, Hawaii
Jobs: 18-36 Investment: $65 million

PARTNERS US Department of Energy National Energy Technology Laboratory



## Phycal Subpilot Algae Facility Highland Heights, Ohio Phycal’s Subpilot Algae Facility includes 16,000 squarefeet of indoor space with ponds, fermenters, and processing, and 5,000 square feet of outdoor pond space. Phycal’s Pilot Algal Biorefinery will validate three growth systems at scale: ponds, fermenters and HeteroboostTM – Phycal’s proprietary hybrid pond/fermenter system. This pilot is part of a $65 million research and development project partially funded with a $51 million R&D contract from the Department of Energy.TIMELINE 

## 2007 2008 2013 2015 2017Phycal founded, headquarters and main labestablished in ClevePhycal awarded $3 million from DOE for Phase I “Innovative Phycal awarded $48.5 million from DOE for Phase II “Innovative Pilot to be scaled to demonstration. Projected commercial production.

land, Ohio Concepts for Beneficial CO 2 Use” Concepts for Beneficial CO 2 Use”. Begins construction of pilot algae farm and biorefinery.

## Learn more about the algae industry at www.allaboutalgae.com

About the Algae Biomass Organization The Algae Biomass Organization (ABO) is a 501(c)(6) non-profit whose mission is to promote the development of viable commercial markets for renewable and sustainable commodities derived from algae. Its membership is comprised of people, companies andorganizations across the value chain. More information about ABO, including its leadership, membership, costs, benefits and members and their affiliations, is available at the website: www.algaebiomass.org.

Algae Biomass Organization www.algaebiomass.org 507-765-2134