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

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# 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

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# 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

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# 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

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# A Time of Opportunity

Page 6Page 7 

# Industry is drawing a line and plans to fight!
“New Graphic Outlines Bureaucratic Maze of EP A’ s Clean Power Plan.” ENRECA 

# Not So Fast...

## Trying to Make the EPA L ook Downright Un -American “Big Government Run Amok,” “Calamity is Assured!”

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## “The fallout from the EP A'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. Te ll the EP

A we can't af

ford its proposed energy plan. Ta ke action now” Action.Coop

# “Recession is P ractically Guaranteed!”

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### Further , the EP A 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 EP A’ 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 

# “Y ou Just Can’t Tr ust 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

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# 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

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### - Vi able, cost ef

fective technology solutions must exist

- Te chnology 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
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# Does anyone know what this is? Q - CaCO3 (solid) + SO2 (gas) → CaSO3 (solid) + CO2 (gas )

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# 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.

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# 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

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# Before flue gas desulfurization (FGD) was installed

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

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## 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
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# Does anyone know what this is?

Q - CO2 + H2O + photons → CH2O + O2

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# Does anyone know what this is?

Q - CO2 + H2O + photons → CH2O + O2 A - The chemical reaction taking place during photosysthesis

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# Does anyone know what this is?

Q - CO2 + H2O + photons → CH2O + O2 A - The chemical reaction taking place during photosysthesis Main Point **: V**  **iable, cost -** **effective technologies**  **exists today that w ill meet the Nation’s**  **mitigation goals**

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## 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; Te chnology Center Located at Baltimore’ s Back River Waste Wa ter Treatment Plant.  Grant H istory, Strategic Partners, Co developed IPand Recent Awards.  5 Patent Pending Components - Original Equipment Manufacturer (OEM) of Patent- pending Algae - based GHG Mitigation System.  Proven Solution at Waste Wa ter Treatment Plant - Mitigating GHGs of a 3 MW Digester Gas Plant Since July 2012

### HY-TEK BIO Technology – Algae - based CO 2

### /Greenhouse Gas Mitigation

 **A breakthrough**  **technology that can mitigate ~100% o** **f CO 2**  **, NOx**  **and other g**  **reenhouse gas emissions**  **Employs an innov ativ** **e LED Grow** **L ight System**  **wh ich**  **increases algal grow** **th, reduces heat and pow**  **er consumption**  **and increases mitigation/v olume**  **of algae**   **Modular/scalable design speeds implementation and w**  **orks wi**  **th any generating**  **capacity -**  **from small landfills to large pow er**  **plants**  **Produces algae and oxygen as marketable, high -** **va lue**  **by -**  **products creating significant rev** **enue sharing opportunities** 
Page 23 Confidential and Proprietary - HY-TEK Bio © 2009 - 2014 Digester Gas Exhaust CO 2 , NOX Electrical Generator Accelerated Ph otosynthesis HTB - 1 Algae

High V alue High Yi eld

## 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. CONT

AINMENT
– 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 -YT EK 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 of f  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 MITIGA** 

**TION**  100% of captured exhaust gas **AL GA** **E 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 A LGA** **E**  Algae Brokers $98 per kilo ($40 per lb)  Universities are paying $30 per lb  Revenue calculations based on approx. $10 per lb algae **AL GA** **E 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 **DA ILY**  **POTENTIA L**  **$$**  40 Lbs * $10 per = $400 * 20 Bioreactors = $8,000  Potential of $8,000 per day in algae sales **AN NUAL**  **POTENTIA L**  **$$**  Assume 330 days of operation per year = $8,000 * 330 = $2,640,000  Potential of > $2.5 MM per year in algae sales
**REVENUE SHA RING**   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)

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##  Re commend 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 P reamble 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

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##  Wesupport the EP

A and its mission and want to help  The Rule has an increased chance of survival and successful implementation if viable, cost ef fective 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 ef

fectively mitigate CO2 and other GHGs

# Discussion

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##  Questions on HY

- TEK Bio’ s technology  Rule comment process  EP A perspective of new technologies

# For More Information Contact:

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### 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

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###  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 t hickeners.  Bioplastics.  Animal and h uman food s upplements.  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.

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

### Why Algae?

### HY-TEK BIO Technology: CO 2 

### to Algae Process Schematic

Page 33 Confidential and Proprietary - HY-TEK Bio © 2009 - 2014

### HY-TEK Bio technology – Algae Production from CO 2

Air Blower

Bioreactor

Ta nk CO 2 Stream 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 CO**  **2 , 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.**  **C oagulant**  **/ 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 CO**  **2 emissions**  **from LFG engine exhaust.** 

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