Serving Clients One Breakthrough at a Time Algae Photobioreactor Design Considerations for Commercial Scale Production Presented by: Greg Karr Serving Clients One Breakthrough at a Time

State of the Industry (Algae Farming) Current Future Traditional Farming: 50 – 70 years Algae Farming: 5-7 years (so far)

Assumption: Algae industry stays alive 1930’s Farming or 2009 Algae Current Future Crops can and are grown and harvested Require high inputs per yield, labor/energy Large scale operations not feasible or even possible Equipment improvements will increase yields and decrease production costs Production methods will continually be refined and made more efficient Biotech will drive yields up and increase value of specific products Assumption: Algae industry stays alive

MRI Florida raceway open pond Lower tech, well known technology Lower capital costs Lower operational and maintenance costs Limited ability to control Temperature (low side) Species selection Seasonal flucuations Evaporation losses Lower production rates, yields and product value Production rates and product values do not offset costs (under normal conditions) MRI Florida raceway open pond

Closedloop PBR’s Higher tech, generally unproven Much higher capital costs Higher operational costs and maintenance costs Offers higher level of control Temperature (low side) Species selection Evaporation losses Offers potential for higher production rates and higher value products Billion $ question: Can the higher production rates ever justify the extremely large capital and operational costs? MRI KC AlgaeLink PBR, 3500 L

Capital Costs Unit basis ($ cost/$ revenue) Higher Lower Investment Risk Land Usage Light Collection Service Life Production Controls Productivity Product Value (species selection)

Operational Costs Unit basis ($ cost/$ revenue) Higher Lower Labor Maintenance Utilities Water source Growth Nutrients Gas input (source and energy) Culture Maintenance

Revenues Adding Value Lower Value Biomass Combustion Animal Feed Algal Oil Liquid Biofuel Feedstocks (starches/celluloses) High Value Compounds Waste reduction (water/fertilizers) CO2 mitigation

Issues Not Discussed Here Harvesting All current methods are less than ideal Governmental Influences Subsidies Regulation Energy Market Fluctuations Competing Technologies Implications of GMO algal species

What is the optimal PBR Design Balance? Answer: It depends Regional and site specific Variable input characteristics Must be ready to adjust and make trade offs to achieve the most profitable system possible.

Questions?