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Generating revenue from waste algae

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Presentation on theme: "Generating revenue from waste algae"— Presentation transcript:

1 Generating revenue from waste algae

2 Gen3Bio transforms waste algae into profitable specialty chemicals.
Our Pitch Gen3Bio transforms waste algae into profitable specialty chemicals.

3 How do we do this with algae?
We maximize chemical recovery yields from algae via a proprietary enzyme blend that optimizes sugar, fat and protein extraction Over prior technologies we… increase algae product yields 50% reduce capital requirements up to 90% reduce operating expenses up to 50%

4 The Gen3Bio Difference Gen3Bio does not grow or cultivate algae.
The Gen3Bio process uses algae others produce and captures all its cell contents for conversion to specialty chemicals

5 Our Tangible Progress Base technology proven in the lab at various scales Basic 5 gallon and 15 gallon pilot plant designs completed Interest from: Honda (OH) MWRD of Greater Chicago South Davis SD (UT) Pittsburg, KS Grand Rapids, MI

6 Initial Target Market There are over 16,000 wastewater treatment facilities in the United States. * = 1,000

7 municipal wastewater nutrient discharge reduction of
Background The EPA is targeting a municipal wastewater nutrient discharge reduction of 95%

8 Algae is the Solution Wastewater nutrients provide a natural algae food source Therefore, algae use reduces nutrient discharge BUT…what do we do with all of this algae?

9 $5.5 Million The Challenge with the Solution
One large operator will need to dispose of 15 semi-trucks of algae per day, at an annual cost of $5.5 Million *not including operational costs

10 Turn the Challenge into Cash
GEN3BIO enzyme technology converts that waste into products with the $5.5M expense converting into a specialty chemical revenue of $200 MILLION

11 Where Does Gen3Bio Fit? Clean water Wastewater Algae Tech Algae Slurry
Specialty Chemicals

12 Business Model Own and operate plants at
municipal wastewater treatment facilities with % of net product revenue provided back to clients

13 Many other wastewater generating industries
Our Scalable Future Many other wastewater generating industries Livestock Saw Mills Oil & Gas Mining

14 We are seeking $500,000 to facilitate initial piloting…
Our Next Needs - Our Ask We are seeking $500,000 to facilitate initial piloting… $150,000 3 Pilot plants, Utah, Illinois, Iowa: design, build and support $ 110,000 Process trials and analysis $100,000 Personnel & Consultants $ 50,000 Intellectual Property $ 60,000 Business Development $ 30,000 General legal, accounting, insurance $500,000 Time frame – through Q3 of 2018

15 Gen3Bio, Inc. KPTC 1281 Win Hentschel Blvd West Lafayette, IN USA Kelvin T. Okamoto, PhD (CEO) Skype: ktokamoto

16 appendix

17 THE GEN3BIO PROCESS Algae Slurry
Soluble carbohydrates & protein for fermentation Aqueous Phase Liquid Phase Digested Biomass Treatment with enzyme blend Solid Phase Lipids for fuels & products Filtration Extraction Solid Phase Protein-rich Residue & Cell Walls

18 BIODIESEL ALONE IS NOT PROFITABLE
COST MODELING Sale Price $2.50 $2.00 Sale Price $1.50 Profit Per Pound $1.00 $0.50 Loss $- Amino Acids Succinic Acid Biodiesel $(0.50) $0.93/lb processed algae profit if no cost for algae (90% gross margin) BIODIESEL ALONE IS NOT PROFITABLE

19 POTENTIAL END PRODUCTS Fatty Amides, Amines, Alcohols
From Sugars Succinic Acid Lactic Acid Bioethanol Butanol Acetic Acid Simple Sugars From Fats/Lipids Biodiesel Glycerol Omega-3 Fatty Acids Fatty Amides, Amines, Alcohols Others Simple Amino Acids Neutraceuticals Aquaculture Fish Food

20 % Cell Content Recovered
Liquid Extraction ALGAE EXTRACTION Technology Scale High SC CO2 PEF Ultra- sound High Base MORE DESIRABLE % Cell Content Recovered HPL High Acid HTL Low High Energy Usage Low Energy Usage

21 WWTF Revenue Targets Licensing Royalty Annual Revenue Target
$200,000,000 $20,000,000 $2,000,000 $100,000 Low Volume Medium Volume High Volume UltraHigh Volume

22 Total investment to breakeven forecasted: $2,000,000
Financial Summary 2017 2018 2019 2020 2021 Total Revenue $- $110,000 $6,325,000 $29,680,000 $85,780,000 Total COGS $20,000 $55,000 $778,250 $14,887,400 $46,216,400 Gross Profit $(20,000) $5,546,750 $14,792,600 $39,563,600 Gross Margin N/A 100% 713% 99% 86% Total G&A $54,000 $105,500 $540,000 $1,025,000 $2,450,000 Total R&D $5,000 $200,000 $500,000 Total Operating Expenses $59,000 $305,500 $1,040,000 $1,525,000 $2,950,000 Net Income $(79,000) $(250,500) $4,506,750 $13,267,600 $36,613,600 Y/Y Growth Rate -217% 1899% 294% 276% Breakeven: Q4 2019 Total investment to breakeven forecasted: $2,000,000

23 Team Rick L. Johnson George Onik Dr. Kelvin T. Okamoto Dan Dawes
Advanced Algae Systems Business & Marketing Advisor George Onik Algae Carbon Capture Technical & Marketing Advisor Dr. Kelvin T. Okamoto CEO Dan Dawes Purdue Foundry/AgriNovus Indiana Business Advisor Prof. Sridar Viamajala The University of Toledo Technical Advisor Prof. Sasidhar Varanasi The University of Toledo Technical Advisor

24 Partners Advanced Algae Systems


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