1. CJSC “Research Institute “ROSBIO” MARINE BIORESOURCES – PERSPECTIVE RAW-MATERIAL BASE OF THE BIOFUEL INDUSTRY 1

2. Biodiesel represents methyl (less often ethyl) ethers of fatty acids and is a perspective substitute for traditional hydrocarbon fuel. Raw materials for production of biodiesel are vegetable oils, food- industry wastes and waste oils used for cooking. Biodiesel represents methyl (less often ethyl) ethers of fatty acids and is a perspective substitute for traditional hydrocarbon fuel. Raw materials for production of biodiesel are vegetable oils, food- industry wastes and waste oils used for cooking. 2

3. - High cetane number (average 45,8-56,9 units) - High cetane number (average 45,8-56,9 units) - High flash point (above +100) - High flash point (above +100) - Good lubricating property - Good lubricating property - Absence of sulfur and aromatic hydrocarbons - Absence of sulfur and aromatic hydrocarbons - Low toxicity of emissions - Low toxicity of emissions - Virtually complete biodegradability (99% - Virtually complete biodegradability (99% biodiesel are destroyed in water or soil for 28 days) biodiesel are destroyed in water or soil for 28 days) - Zero balance of greenhouse gases - Zero balance of greenhouse gases 3 Benefits of Biodiesel

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5. Production of biodiesel 5

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7. Production of biodiesel by the regions of the world 70 % - EU 20 % - the USA 10 % - other countries 7

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9. Features of consumption of biodiesel The main consumers are Germany, Great Britain, France, Austria, Spain The main consumers are Germany, Great Britain, France, Austria, Spain National biodiesel programs are started more than in 20 countries National biodiesel programs are started more than in 20 countries Three of four liters of diesel fuel sold in EU contain biodiesel. The obligatory share of biofuel is 5,75 % in 2010, 20 % by 2020 Three of four liters of diesel fuel sold in EU contain biodiesel. The obligatory share of biofuel is 5,75 % in 2010, 20 % by 2020 9

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12. Biodiesel raw-material base 12

13. Sown areas for the production of vegetable oils for biodiesel (worldwide) Today - 1 % (14 mln ha) Today - 1 % (14 mln ha) By the year 2030 - 2,5 % (35 mln ha) By the year 2030 - 2,5 % (35 mln ha) 13

14. 14 Raw material Liters of oil from 1 hectare Sesame696 Sunflower952 Peanut1059 Rape1190 Olive1212 Jatropha1818 Avocado2638 Palm-oil5950 Algae95000 Soya446 Flax478

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17. 17 The need for crop area to meet the requirements of biodiesel at 5% is added to the fuel oil will be 12.5 million hectares Raw material The required volume at 100 % substitution of diesel fuel with biodiesel The required volume at 5 % substitution of diesel fuel with biodiesel 2010201520102015 Rape138.1155.96.97.8 Sunflower169.5191.48.59.6 The volume of requirements of Russia in raw materials for substitution of diesel fuel with biodiesel in 2010-2015, million tons

18. Producton and cost price of biodiesel 18

19. Material balance of biodiesel 19

20. 20 Cost of biodiesel production in some European countries The price of rape in Germany is 450 EUROS per ton СountryCost, Euro/l Germany0.50-0.64 Baltic States0.41-0.42 Hungary0.65 Poland0.75 Slovakia0.70

21. 21 Type of Biodiesel Dollars per gallon of biodiesel Dollars per gallon gasoline equivalent India (Jatropha) 2.742.97 U.S. (soybean) 3.203.33 EU (rape) 3.263.54 Russia (rape) 1.501.65 Production cost of biodiesel in various countries in 2008 The price of rape in Russia - 240 euros per ton

22. 22 Optimal raw material in terms of yield of biodiesel for the climatic conditions of Russia is considered rape, the worst performance in sunflower. However, the collection of these crops in Russia is low, causing shortages and price increases. In 2015, to ensure that domestic demand for biodiesel under the condition of a 5% replacement required 6.9 million tons of rapeseed (10 times higher than the collection in 2009) or 8.5 million tons of sunflower (1.3 times higher than the collection in 2009, taking into account that all volume of sunflower is chosen by oil produces).

23. Marine bioresources represent a new source of raw materials competitive advantages relative of biodiesel from vegetable raw material (rape): 23 1. Preservation of arable land 2. Year-round production of raw materials. 3. Renewable source of raw material is weed species of fish and fish processing waste. 4. Ability to self-reliance in the areas of fishing vessels

24. Use of marine resources solves the problem of energy security - Autonomy from power and heat of medium- sized cities, military bases, providing the rolling stock of the Armed Forces and Ministry of Emergencies in remote regions of Russia. - Supply ships and drilling platforms offshore of the Arctic Ocean.

25. 25 Resource of mesopelagic fish North - East Atlantic 10.000.000 tons North - West Atlantic 1.000.000 tons South - East Atlantic 1.000.000 tons Antarctic Atlantic 8.000.000 tons

26. 26 The forecasts of catches of marine and freshwater hydrobionts (mesopelagic fish) of the Russian sector and sectors of the U.S., EU, China and Japan are no information. Probably fishing for those aquatic bioresources is not maintained.

27. 27 Source of raw materials Vegetable oilsCod-liver oil 91.39 million tons per year 91 million tons of biodiesel per year Global volumes About 10 million tons per year About 10 million tons of biodiesel per year Growth in profitability of agriculture prosFarming lands are not used, summer and winter diesel Use of agricultural land, Only summer diesel consRaw materials must be extracted at sea and transported to land Southern agricultural areas Regions of biodiesel Sakhalin, Kamchatka, Kuril Islands, Murmansk Region, Magadan region.

28. 28 Flow diagram of the plant for production of biodiesel from fish oil

29. 29 Material balance of biodiesel Weed fish 4160 kg Lipids 1040 kg + 114 kg Methanol + KOH 19 kg Transesterification Crude glycerin 100 kg Biodiesel 1000 kg

30. Economic indicators The annual catch 40.000 tons, price ≈ $ 1 million 1 ton of cod-liver oil / 100$ 1 kg ≈ 0,15 - 0,20 $ 70% of cost is raw materials 1 кг = 0,76 $ oil 1 ton of marine diesel at sea / $ 760 1 ton of biodiesel ≈ 150 -200 $ 10.000 tons of cod-liver oil

31. 31 Fuel parametersDiesel oilmarine biodiesel Flash point, C Cetane number Ash,% Sulphur content, mg / kg Price, thous.rubles / ton 40-62 45 0,01 0,2 23 (at sea) 120 51 -- 6 (at sea) Characteristics of biofuel from different raw materials

32. 32 Refueling of ships and vessels at sea is carried out with the tankers Production of biodiesel directly on the ships dramatically increases their independence and reduces the need for tankers

33. 33 The annual fuel requirement for large capacity of trawler capacity of 6.000 kW is approximately 7.700 tons of which diesel fuel - 500 tons. The cost of diesel fuel, including delivery to the sea is about $ 760 per ton. The total cost of fuel consumed per year for a large-trawler is about 300.000 USD.

34. Pilot plant receiving fish oil from fish processing waste and weedy fish is placed in a standard 40 feet container Module biodiesel is placed in the second 40 feet container Modular biodiesel plants are fully automated 34

35. The cost of a modular plant of biodiesel production from weedy species of fish and fish processing waste is 1,688,000 EURO 35

36. When using marine resources can cover all the needs of the Russian fishing fleet is absolutely environmentally safe diesel fuel 36

37. Патенты на способы получения биодизеля из гидробионтов RU 2009107106 от 24.02.2009 RU 2009107106 от 24.02.2009 RU 2009110375 от 12.03.2009 RU 2009110375 от 12.03.2009 /RU2010/000084 от 19.02.2010 /RU2010/000084 от 19.02.2010 37

38. Патенты на способы получения биоэтанола из водорослей RU 2008151884 от 22.12.2008 RU 2008151884 от 22.12.2008 РСТ /RU2009/000714 от 22.12.2009 РСТ /RU2009/000714 от 22.12.2009 RU 2009104353 от 11.02.2009 RU 2009104353 от 11.02.2009 38