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CO2 to energy Capture and conversion of CO2 emissions for the sustainable production of valuable commodities Tony St Clair Commercial-in-Confidence Company CompanyOverview Overview///Our OurApproach Approach Company Overview Our Approach The Australian Leader in large scale, algae based bio-fuel and food production, and CO2 bio-sequestration…MBD est. 2006 • Strong and experienced Board and Executive Management Team • A compelling sustainable solution to 3 significant issues: oil, food and CO2 • MBD’s total-engineered approach is delivering a system that enables large scale industrial growth of algae in MBD’s CO2 to energy hybrid system • IP owned by MBD: existing and growing patent portfolio • Exclusive relationship, and access to proprietary algae libraries, with world leading algae research expertise at the James Cook University (JCU), QLD • Existing large scale Research and Development Facility (5000m 2) at JCU • Signed Formal Agreements with 3 major Australian CO2 emitters (Binding Contracts/MOUs) • Advanced design work on fully automated 1 hectare (ha) module - insitu, Display Plant • Partnerships with Key Tier-1 suppliers 2 MBD’s CO2 to energy Process Overview Waste Nutrient Sunlight N, P, K, S • Sewerage • Waste from feedlot • Waste water Supplemented with • Commercial fertilizer Algae Oil 35% Oil Options Include -Biodiesel Production -Plastic Production -Jet fuel, other fuels Algae Meal 65% Meal Options Include -Feed for livestock industry -Feed for fertilizer CO2 Emitter Algae Synthesiser Farm Greenhouse gases from emitter collected at the base of the flue gas chimney and piped to MBD Algae Farm. Land (low value buffer) Each Million tonnes of CO2 e sequestered produces the following outputs: 550,000 tonnes of algae: (CO2 NOx SOx) e.g. •Power Plant , •Gas Plant & Refineries, •Cement Kiln, •LNG Facility, •Coal Seam Gas Production, •Other processes… -Biomass for bio-plastic production -Biomass for electricity production • 180,000 tpa algae oil • 370,000 tpa nutritious livestock feed 100% of algae used as value added product O2 H2O Typically, 1 ton C02 emitted per MWhr generated Require ~2 tons of C02 per 1 ton of algae grown Require ~1000+ Ha Land per 1 M tons of C02 Scale ScaleUp Up33Stage StageProcess Process Test / Pilot / Demonstration Display / Pilot / Demonstration Stage 2 Stage 3 Display Plant Pilot Plant (Proof of Concept) (Commercial Operation) Phase 1 Phase 2 (1 Ha Module) (80 Ha Expansion) Indicative Capital Cost (A$M) $3.5M+ $30M $300M+ Commence Operation 1Q 2011 Progressive Build: 2012 : 2014 CO2 e Abatement p.a 800 T Full Operation: 2013 70,000 T : 2015 >1.4M T Algae Production (tpa) 400 35,000 700,000 120 T 10,000 T 250,000 T (140,000 litres) (11 M litres) (300 M litres) 280 T 25,000 T 450,000 T Demonstration Plant Large Scale Roll Out (productivity 120g/m2/d) Algae Oil Production Algae Meal Production 4 Company MBD’s R&D Overview Facility//(JCU Our Townsville) Company Overview OurApproach Approach The MBD’s existing and expanded R&D facility: • Formally launched Jul08 (200m 2 ) and expanded to (5000m 2 ) Nov09 • • Basis for all of MBD’s ongoing R&D work Ultimately provides Central Control Centre for MBD’s projects both in Australia and Internationally • 5 Year Detailed Program of Works including: Algae strain identification and selection Culture optimisation Production and scale-up Harvest and extraction processes End use products • Ongoing education and training facility which provides MBD with a key source of skilled labour and expertise Current algae strain assessment focusing on ~ 12 salt water and fresh water based algae strains. JCU has > 200 strains and is led by Prof. Rocky de Nys and Ass. Prof. Kirsten Heimann • 5 Algal Algal Strain Strain Selection Selection James James Cook Cook University University (JCU) (JCU) • Exclusive access to, and use of proprietary algae libraries (>185 strains), and world leading JCU algae research team led by Prof. Rocky de Nys and Dr Kirsten Heimann • Algae strain selection for lipid profile analysis, bioreactor suitability, biomass; • Current assessment focusing on ~ 10 salt water and fresh water based algae strains. Isochrysis aff. galbana (A) Nannochloropsis oculata (B) Tetraselmis chui (C) Unidentified (D) Unidentified (E) 6 Commercial-in-Confidence Commercial-in-Confidence R&D Facility:Photo-Bioreactor Photo-BioreactorSystem System Test Facility: Centrifuge, and Oil Oil Separation Centrifuge,Harvesting Harvesting and Separation Productivity Scale Up 3 Data StageChart Process Test / Pilot / Demonstration Base / Current / Target / Aspiration Base - Benchmark Current Design Target Design Aspiration (g/m2/day) 20 30 60 120 (m deep) 0.3 0.3 0.6 0.9 (CO2/Algae Ratio) 1.8 1.8 1.8 1.8 % 25 25 50 75 % 30 30 40 50 Dry Weight Production Depth Carbon Fixing Harvest Oil Content Current Yield parameters -Wet Weight (g/l) 2 -Dry Weight (g/l) 0.4 -Depth (m) 0.3 -Harvest (%) 25 -Dry Weight production (g/m2/day) 30 8 Carbon Comparison CarbonCapture Capture Comparison Sequestration of all CO from 1000 MW 1000 BrownMW CoalBrown Power Coal StationPower Station Sequestration of 2allemissions CO2 emissions from MBD’s CO2 to fuel Solution Post Carbon Capture and Storage Collection, concentration , liquefaction of CO2 and storage in ground Collection, consumption and use of CO2 for Algae based value added products. Emitter to fund large capital and operating costs No income from CO2 based products. Feasibility at $25/T appears questionable. Emitter not required to fund costs. Significant value creation from algae products Project feasible independent of carbon price PCC&S Value Creation -$2.2B Annual Value Created - Carbon Abatement $225M - Algae Oil income $0M - Algae Meal income $0M] Value Created 20 year comparison of value created MBD’s CO2 to fuel Value Creation $26.8B Algae Meal Algae Oil PCC&S Carbon Abatement MBD Capital cost over 20 years $5000 M Energy Demand Cost Annual Energy Demand 30%, 300MW $79M p.a. (@ $30 /MWh) Annual Value Created - Carbon Abatement $225M - Algae Oil income $740M - Algae Meal income $660M PCC&S (30 x) MBD Solution Annual Energy Demand 1%, 10MW $2.7M p.a. (@ $30 /MWh) PCC&S (4 x) MBD Solution Capital cost over 20 years $1225 M Capital Cost -5000 0 MBD developed comparison – figures are provided for quantum comparison only. Detailed comparisons to be developed for each specific site and operation. All figures in Million Dollars 5000 10000 15000(Million) Assumptions: Carbon Credit Value $25/T, CO2 sequestered 9MT, Oil $800/T, Meal $400/T, Value MW = $30, 100% Plant operation (8760 hours per year), PCC&S 5 year scale up, MBD 5 year scale up All figures per tonne and based on 1 years operation. * Estimated plant capital costs for 20 year project., 9 Land Land space space requirements requirements MBD COCO Compared with Biofuel Crops 2 Synthesizer MBD Synthesizer Compared with Biofuel 2 Crops Land Use - Number of Ha required to produce 100,000 tonnes of oil Productivity on 1000 Ha of land per year (tpa) 1000000 Corn Cotton 360000 Soy 715000 100000 250000 Canola 100000 Jatropha 10000 53000 1000 Palm Algae 19600 240 100 The table top left graphically illustrates the negligible land space requirements of an MBD CO2 fuel synthesiser to produce 100,000 tonnes of oil compared with biofuel crops. Not only is the land ‘foot-print’ small, the oil yield of an MBD CO2 fuel synthesiser is much higher than biofuel crops – as shown top right. Australia’s major power stations have significant low value land buffers surrounding them. Depending on the size of the power station the land required to sequestrate its CO2 emissions (50% - daylight hours and up to 80% if artificial light is used) will be in excess of 1000 ha. [Note: To date MBD has only explored growth of algae under sunlight.] 10