Page 1 Confidential and Proprietary - HY-TEK Bio © 2009 – 2014

HY-TEK Bio, LLC 

Environmental Protection Agency

Climate Change Division

November 12, 2014

HY-TEK Bio LLC’ Proprietary and Confidential. Please do not distribute outside the EPA without prior permission. 
Introductions

2
Overview 

 Thank you

- We support you and your mission

- We believe in protecting the environment and doing so in a 

way that minimizes the negative impacts to the economy

- We are grateful for your dedication and hard work

 We want to help you be successful with the 

implementation of Rule 111(d)

 Our cutting-edge, yet common-sense technology can 

provide immediate support to the Rule’s implementation 

by providing a cost effective and safe technology 

approach to reducing CO2 emissions

3
Our Agenda

 Describe how HY-TEK Bio can help the EPA with 

implementation of Rule 111(d)

 Educate you about our technology and our mission

 Recommend changes to the Rule that promote 

innovation and drive adoption of CO2 reduction 

technologies

- Carbon Capture and Utilization (CCU) should be 

equally represented with CCS

- More emphasis should be given to technology solutions 

which could help the states achieve their goals 

4
Our Agenda (Cont.)

 Discuss the Agency’s perspective on new 

technologies and how you see them in relation to 

the proposed rule 

 Discuss the Comment Process and how we can 

best influence the Rule in a way that makes it 

promote innovation to the maximum extent possible

 Answer any questions you may have 

5
A Time of Opportunity

Page 6
Page 7

Industry is drawing a 

line and plans to 

fight!

“New Graphic Outlines 

Bureaucratic Maze of EPA’s Clean 

Power Plan.” ENRECA

Not So Fast...
Trying to Make the EPA Look Downright Un-American

“Big Government Run Amok,” “Calamity is Assured!”

Page 8

“The fallout from the EPA's energy plan will be felt across 

the nation as the cost of electricity increases, thousands of 

Americans lose their jobs, and the reliability of electricity is 

jeopardized. Across the nation, family budgets are already 

stretched thin. An increase in the cost of electricity means 

that families could have to choose between filling up the 

car and keeping the lights on. Join us and take action now. 

Tell the EPA we can't afford its proposed energy plan. Take 

action now”

Action.Coop
“Recession is Practically Guaranteed!”

Page 9

Further, the EPA plan would cost consumers hundreds of 

billions of dollars as they are forced to adopt energy 

efficiency improvements, but those costs do not show up 

on the electric bill and are hidden costs in the EPA’s 

plan. ENRECA.Coop

This rule will have serious negative impacts on economic 

and social conditions, compounding the difficulties faced 

by an American economy struggling to come out of a 

prolonged downturn. Unfortunately, this rule will most 

heavily impact the poor, the elderly, small businesses, 

and domestic manufacturing. ACC

“You Just Can’t Trust Them”
Keys To Success

 Political will. It requires:

- Paramount issue of tangible, national concern - in this 

case Global Warming and Sea Level Rise

- Willing participants from diverse stakeholder communities

- Regulated industries must feel valued

- Don’t force “us” to do the impossible

- Going out of business is not an option

- Proposed reduction goals must be attainable and not 

cost prohibitive

- Viable, cost effective technology solutions must exist

10
Keys To Success

 Political will. It requires:

- Paramount issue of tangible, national concern – in this 

case Global Warming and Sea Level Rise

- Willing participants from diverse stakeholder communities

- Regulated industries must feel valued

- Don’t force “us” to do the impossible

- Going out of business is not an option

- Proposed reduction goals must be attainable and not 

cost prohibitive

11

- Viable, cost effective technology solutions must exist 

- Technology support Rule’s political survival
We Can Do It – Remember Acid Rain?

 Walk Down Memory Lane -

- 1988 election of George H.W. Bush

- Boyden Gray, White House Counsel

- Canada very unhappy

- “Cap and Trade” in – “Command and Control” out

- Clean Air Act of 1990 signed into law

- John Sununu was furious and said the cap "was 

going to shut the economy down.“ 

- The utility companies countered that the cost of 

such an approach would send them back to the 

Dark Ages

12
Does anyone know what this is?

Q - CaCO3 (solid) + SO2 (gas) → CaSO3 (solid) + 

CO2 (gas)

13
Does anyone know what this is?

Q - CaCO3 (solid) + SO2 (gas) → CaSO3 (solid) + 

CO2 (gas) 

A - The chemical reaction taking place in wet sulfur 

dioxide scrubbing using a CaCO 3 (limestone) 

slurry.

14
Does anyone know what this is?

Q - CaCO3 (solid) + SO2 (gas) → CaSO3 (solid) + 

CO2 (gas) 

A - The chemical reaction taking place in wet sulfur 

dioxide scrubbing using a CaCO 3 (limestone) 

slurry

Main point: Viable, cost-effective technology existed 

15
Before flue gas desulfurization (FGD) was installed

16
FGD Scrubber at G.G. Allen Steam Station in N.C.

17

How many Americans today 

regret the development, 

regulation and implementation 

of sulfur dioxide scrubbing 

technologies?
Where are we today?

 The cost of SO2 scrubbers have decreased by more than 30% 

since the beginning of the 1990’s

 Cap-and-trade system continues to let polluters figure out the 

least expensive way to reduce their acid rain emissions 

 The law costs utilities just $3 billion annually, not $25 billion, 

according to a recent study in the Journal of Environmental 

Management

 By cutting acid rain in half, it also generates an estimated 

$122 billion a year in benefits from avoided death and illness, 

healthier lakes and forests, and improved visibility on the 

Eastern Seaboard 

 Better relations with Canada? Priceless

18
Does anyone know what this is?

Q - CO2 + H2O + photons → CH2O + O2 

19
Does anyone know what this is?

Q - CO2 + H2O + photons → CH2O + O2

A - The chemical reaction taking place during 

photosysthesis 

20
Does anyone know what this is?

Q - CO2 + H2O + photons → CH2O + O2

A - The chemical reaction taking place during 

photosysthesis 

Main Point: Viable, cost-effective technologies 

exists today that will meet the Nation’s 

mitigation goals 

21
HY-TEK Bio – Reducing the Cost of Mitigation and 

Producing Revenue from By-products of Mitigation

Page 22 Confidential and Proprietary - HY-TEK Bio © 2009 - 2014

 Privately held – Headquartered in 

Dayton; Technology Center Located at 

Baltimore’s Back River Waste Water 

Treatment Plant.

 Grant History, Strategic Partners, Codeveloped IP and Recent Awards.

 5 Patent Pending Components -

Original Equipment Manufacturer 

(OEM) of Patent-pending Algae-based 

GHG Mitigation System.

 Proven Solution at Waste Water 

Treatment Plant - Mitigating GHGs of 

a 3 MW Digester Gas Plant Since July 

2012
HY-TEK BIO Technology – Algae-based CO2

/Greenhouse Gas Mitigation

 A breakthrough technology that can mitigate ~100% of CO2, NOx and other 

greenhouse gas emissions 

 Employs an innovative LED Grow Light System which increases algal growth, 

reduces heat and power consumption and increases mitigation/volume of algae

 Modular/scalable design speeds implementation and works with any generating 

capacity - from small landfills to large power plants 

 Produces algae and oxygen as marketable, high-value by-products creating 

significant revenue sharing opportunities

Page 23 Confidential and Proprietary - HY-TEK Bio © 2009 - 2014

Digester

Gas Exhaust

CO2, NOX

Electrical Generator Accelerated 

Photosynthesis

HTB-1 Algae

High Value

High Yield
HY-TEK Bio - A Break-through, Patent-Pending, Natural, Clean 

Energy Technology

Five Key Components to GHG Mitigation

1. ALGAE – A unique strain of algae indigenous to the 

Chesapeake Bay that rapidly consumes NOx, CO2 GHGs 

and other emissions; thrives at up to 100% CO2 levels; 

and, is high in lipid oil and other marketable products.

2. CONTAINMENT – Employs a patent-pending tank 

construction using a laminated Mylar/Kevlar bond that 

reduces the cost of closed bioreactors by 90%.

3. LIGHTING – Employs a patent-pending high intensity LED 

Grow Light System that uses only photosynthesis light 

combined with a “flash effect” that enhances algal growth to 

produce more mitigation per volume of algae.

4. AIR INJECTION – A patent-pending air injection system 

that insures rapid transfer of gas chemistry to the algal 

culture for enhanced algal growth.

5. NUTRIENT – Employs a patent-pending process that 

converts poultry litter to a high grade nutrient designed to 

produce maximum growth and density of the algal strain.

Page 24 Confidential and Proprietary - HY-TEK Bio © 2009 - 2014
Business Model: Benefits to Customers

Short Term Benefit

 HY-YTEK Bio makes electrical generation clean and financially viable

 Customer receives new source of revenue from carbon credits (if available)

 HY-TEK Bio funds O&M out of revenue from by-product sales

 Customer may be eligible for Clean Energy grants and incentives (state, federal and private)

Long Term Benefit

 Customer receives facility ownership once investment is paid off

 Customer receives sustainable revenues for life of facility

 Algae facility is readily expandable for additional revenue

Proven Technology

 Bioreactor designs and efficacies are proven

 HY-TEK Bio’s solution has a lower cost to install and operate compared to other CO2 removal 

technology

Technology supports 

“Clean – Green” vision

 HY-TEK Bio’s technology is based on all natural process

 The technology mitigates CO2 as well as NOx and SOX

Marketing Benefits

 HY-TEK Bio’s technology provides opportunities for community outreach to the local community

 HY-TEK Bio’s technology provides opportunities for leading benchmarks for clean, green energy

Strong cash flows and 

Return on Equity

 Strong returns and net cash flow generated from by-product sales

 Rapid ROI with return hurdles achieved in under 5 years

Setting a Vision of Clean 

Energy

 Opportunity for companies and municipalities to set a vision for other carbon emitters in the state -

landfills, WWTP, power plants where sources of energy can be made cleaner through a natural 

process that generates a positive cash flow

Page 25 Confidential and Proprietary - HY-TEK Bio © 2009 – 2014
Business Model and Revenue Generation for 20 Tank Project

GHG MITIGATION  100% of captured exhaust gas

ALGAE PRODUCTION

 75 lbs per day per bioreactor potential based on 12% CO2 content

 Revenue calculations based on 40 lbs per day per bioreactor

PRICE OF ALGAE

 Algae Brokers $98 per kilo ($40 per lb)

 Universities are paying $30 per lb

 Revenue calculations based on approx. $10 per lb algae

ALGAE BUYERS

 Algae brokers worldwide

 Universities and other research/educational institutions

 Fish and animal feedstock, bioplastics manufacturers

 Cosmetic and paint manufacturers and nutraceutical/pharmaceutical companies

 Numerous other manufacturers currently using palm oil

DAILY POTENTIAL $$  40 Lbs * $10 per = $400 * 20 Bioreactors = $8,000

 Potential of $8,000 per day in algae sales

ANNUAL POTENTIAL $$  Assume 330 days of operation per year = $8,000 * 330 = $2,640,000 

 Potential of > $2.5 MM per year in algae sales

REVENUE SHARING

 Assume $5M initial investment

 Assume $540K per year O&M

 Customer receives all project credits, zero O&M charges, & continues excess power revenue

 Customer receives % of Algae Revenue 

Page 26 Confidential and Proprietary - HY-TEK Bio © 2009 – 2014
Proposed Changes to Rule 111(d)

27

 Recommend changing the Rule to promote maximum 

innovation and drive market based private sector 

adoption of CO2 reduction technologies

- Carbon Capture and Utilization (CCU) should be 

equally represented with CCS

- CCS in mentioned in multiple locations 

throughout the Preamble and there is no mention 

of CCU. This will likely discourage states from 

actively pursuing CCU technologies and harm the 

CCU industry’s efforts to attain wider adoption

- More emphasis should be given to technology 

solutions which could help the states achieve their 

goals 
Conclusion

28

 We support the EPA and its mission and want to help

 The Rule has an increased chance of survival and 

successful implementation if viable, cost effective 

technologies are rapidly adopted

- CCS is deemed “cost prohibitive,” so industry 

thinks it has no choice but to fight to the death

 Changing the Rule to reflect that CCU is at least on equal 

ground with CCS will alleviate confusion by the states, 

promote innovation where the technology is most 

promising and buttress the Rule against unfair attacks

 HY-TEK Bio’s technology and other CCU technologies are 

proven and ready for wider adoption, far less expensive 

than CCS and effectively mitigate CO2 and other GHGs
Discussion

29

Questions on HY-TEK Bio’s technology

Rule comment process

EPA perspective of new technologies 
For More Information Contact:

30

HY-TEK Bio, LLC.

6502 Micro Drive

Dayton, MD 21036

(410) 262-5113

www.hytekbio.com

Contact: 

Bob Mroz

President & CEO

HY-TEK Bio, LLC.

.

(410) 262-5113
Back-Up Slides

31
 Algae and algae oil is used in the following products (partial list)

 Eye surgery and eye cleansing solutions.

 Skin conditioners.

 Omega-3 Fatty Acid Nutraceutical products.

 Cosmetic and paint thickeners.

 Bioplastics.

 Animal and human food supplements.

 Biofuels.

 The HY-TEK Bio algae strain HTB-1 

can bring as much as $40/lb from an algae brokerage house.

 90-95% Oxygen from photosynthesis is a marketable commodity.

 Direct replacement for Palm Oil. 

Page 32 Confidential and Proprietary - HY-TEK Bio © 2009 - 2014

Why Algae?
HY-TEK BIO Technology: CO2

to Algae Process Schematic 

Page 33 Confidential and Proprietary - HY-TEK Bio © 2009 - 2014
HY-TEK Bio technology – Algae Production from CO2

Air 

Blower

Bioreactor 

Tank

CO2Stream 

from carbon 

emitter

Tap 

Water

Nutrient &

Water Mix

Concentrated

Nutrient

Oxygen

Reclaim 

Tank

Algae

Settling

Chamber

Processed

Algae

Slurry

Spray Dry

To Powder

LED

Light 

Units

Aggregation

Concentrate

LED

Light 

Units

Given light, water, nutrient 

and CO2, the algal culture 

will grow by consuming 

flue gas until it reaches an 

optical density (OD) set 

point where the light can 

no longer penetrate the 

core of the Bioreactor. 

At the OD set point, the 

Bioreactor drain valve 

automatically opens and 

10% of the tank flows by 

gravity into a Settling Tank. 

Coagulant / flocculant 

agents are used to dewater 

the culture in the Settling 

Tank and the decant water 

is drained off, filtered and 

recycled to the Bioreactor. 

Special nutrients and 

makeup water are 

added. The algal slurry 

in the Settling Chamber 

is pumped through a 

spray dryer, converted 

to powder, vacuum 

packed and stored for 

shipping. 

This operation cycles 

every 90 minutes, 

mitigates the Greenhouse 

Gas emissions 24/7 and 

produces 40-50 lbs of 

algae and 12,000 cubic 

feet of oxygen per day for 

sale from one Bioreactor. 

This operation mitigates 

NOx and CO2emissions 

from LFG engine exhaust.

1 2 3 4

Page 34 Confidential and Proprietary - HY-TEK Bio © 2009 - 2014

AA