CO2 Mitigation Project

March 2004: First meeting in Farge

Short history

September 2004: Inauguration E.on lab, planning of project

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IUB financed study (50 k€) for proof of principle to produce biomass which could be used as animal feed

May 2005: Report on feasibility study

July 2005: Meeting in München, phase 1 proposal (70 k€)

December 2004: funding from Bremen to build 100 m2 research greenhouse

September 2005: Start of E.on funded on-site evaluation to identify algae strains which can be commercialized for biofuel and animal feed

October 2004 : MoE between IUB and BlueBioTech, start of feasibility study

Reasons for the projectReasons for the project

Questions addressed

• what are the potential uses of the biomass ?• is the technology environmentally friendly ?• can it result in permanent sequestration ? • is it financially attractive ?• which product slates could be generated ?• what are the prospected running costs ?• does it result in a positive community image ?

The study was carried out to investigate the prospect of developing a large scale photosynthetic system for greenhouse gas control. The aim was to use marine microalgae as an enhanced natural sink for carbon dioxide emissions from an coal-fired power plant. The project-partners evaluated the possibilities to develop large scale closed reactor-systems to fixate CO2 emissions from that power plant within the next five years. The feasibility study is an example of the success of the European Union Emissions Trading Scheme in encouraging industries to invest in innovative technologies which will help curb CO2 emissions. The use of microalgae as sources of eg liquid fuels is attractive because microalgae are photosynthetic renewable resources, are of a high lipid content, have faster growth rates than plant cells, and are capable of growth in saline

waters which are unsuitable for agriculture.

What are the potential uses of the biomass ?

What are the potential uses of the biomass ?

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Biodiesel

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Ethanol

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Animal feed Building material

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bioactive substances

• is the technology environmentally friendly ?• is the technology environmentally friendly ?

Can substantially reduce inlet CO2 and NOx emissions on-site

Supplies renewable energy

Reduces dependency on fossil fuels

CO2 can theoretically be sequestered as building material

• can it result in permanent sequestration ?

A Brief History of IUBA Brief History of IUB 1999 - Founded by City-State of Bremen, University of Bremen

and Rice University, Texas

2001 - accredited by the Wissenschaftsrat (German Science Council)

2004 - all bachelors degree programs accredited

Currently 920 students from over 85 nations, 97 professors

Residential colleges

16 undergraduate programs 14 graduate programs

Degrees: Bachelor of Arts, Bachelor of Science, Master of Arts, Master of Science, Executive Master / Master of

Business Administration, Doctor of Philosophy

Mission: International University Bremen is a highly selective, private institution for the advancement of education and research. Its academic programs and cultural environment prepare graduates for international leadership and global citizenship. Multinational students, faculty and researchers of distinction, with educational partners around the world, collaborate in learning, creating and disseminating information and new knowledge. ﾇ

1999 - Founded by City-State of Bremen, University of Bremen and Rice University, Texas

2001 - accredited by the Wissenschaftsrat (German Science Council)

2004 - all bachelors degree programs accredited

Currently 920 students from over 85 nations, 97 professors

Residential colleges

16 undergraduate programs 14 graduate programs

Degrees: Bachelor of Arts, Bachelor of Science, Master of Arts, Master of Science, Executive Master / Master of

Business Administration, Doctor of Philosophy

Mission: International University Bremen is a highly selective, private institution for the advancement of education and research. Its academic programs and cultural environment prepare graduates for international leadership and global citizenship. Multinational students, faculty and researchers of distinction, with educational partners around the world, collaborate in learning, creating and disseminating information and new knowledge. ﾇ

A Brief History of BlueBioTech

A Brief History of BlueBioTech

2000-Founded by 3 scientists with over 20 years of experience in microalgae biotechnology

2001 - First microalgae products on the market under own label. Products (nutraceuticals, functional cosmetics and feed)are marketed to retailers and end customers through e.g. web shops and television marketing.

2005 - Application for patents in photobioreactor measuring technique and in nutraceutical use of microalgae

2006 - BlueBioTech has become one of the leading microalgae companies in Europe

2000-currently- Development of several photobioreactor systems, each tailored to the specific requirements of the production process from 1L – 250 000L

BlueBioTech operates several production sites in Asia and Europe with outdoor, greenhouse and indoor techniques

Mission: to reveal the potential of microalgae for human use

2000-Founded by 3 scientists with over 20 years of experience in microalgae biotechnology

2001 - First microalgae products on the market under own label. Products (nutraceuticals, functional cosmetics and feed)are marketed to retailers and end customers through e.g. web shops and television marketing.

2005 - Application for patents in photobioreactor measuring technique and in nutraceutical use of microalgae

2006 - BlueBioTech has become one of the leading microalgae companies in Europe

2000-currently- Development of several photobioreactor systems, each tailored to the specific requirements of the production process from 1L – 250 000L

BlueBioTech operates several production sites in Asia and Europe with outdoor, greenhouse and indoor techniques

Mission: to reveal the potential of microalgae for human use

• Results from On-Site Evaluation (10/2005-4/2006)• Results from On-Site Evaluation (10/2005-4/2006)

Two algae strains used for animal feed and lipid production were tested in a simple photobioreactor at Farge and at the OceanLab greenhouse at IUB

• production during winter ranged from 2 - 5 t/ha/month (extrapolated data)

• the biomass could be used as animal feed with heavy metal contaminations of one order of magnitude lower than tolerated for animal feed

• percentages of total lipid concentrations ranged from 1 - 27 % and depend

on nutrient supply and timing of harvest • percentages of under-saturated fatty acids ranged between 64 and 79 %• fatty acid composition could be controlled through nutrient supply• the lipids can be used as biodiesel but the viscosity is high. This

however depends on fatty acid composition which is controllable

• Vis-Nova, a biodiesel producer would buy 30000 t of algae oil per year and

would probably invest in the full-scale deployment• an implementation of a waste-water module to recycle industrial wastes

and improve the quality of the biodiesel seems reasonable

Potential Deployment SitesPotential Deployment Sites

ESA

How to proceed ?How to proceed ?

• the consortium is convinced, that upscaling of biomass production on a full-scale commercial deployment is possible and financially attractive

• depending on controllable environmental conditions either biodiesel or ethanol can be produced in large amounts• however a market for large amounts of animal feed, building material and bioactive substances must be established too• ultimate goal is to both, create a valuable alternative energy source (50%) and to sequester CO2 via the production of building material to lower greenhouse gas emissions (50 %).• to achieve this goal, R&D should be coupled with commercially available High-Tech.• so far funding (120 k€) did not allow to develop high performance reactor-types. BlueBioTech reactors are build for medium production.• we could try now or join with the promising US company Greenfuel

A Brief History of GreenFuel

A Brief History of GreenFuel

2001 - Founded

2001 - 2004 design and experimentation

2004 - Advance Module deployed at MIT Cogen

2005 - Second Advance Module installed at 1000 MW power plant in Southwest; moved to 13,000 ft2 lab

2006 - Developing coal (NYSERDA) and other applications (e.g. oil, waste

water treatment, etc., IEA project with ENEL)

Mission: To recycle carbon profitably from combustion exhaust using GreenFuel's advanced algae biotechnology

2001 - Founded

2001 - 2004 design and experimentation

2004 - Advance Module deployed at MIT Cogen

2005 - Second Advance Module installed at 1000 MW power plant in Southwest; moved to 13,000 ft2 lab

2006 - Developing coal (NYSERDA) and other applications (e.g. oil, waste

water treatment, etc., IEA project with ENEL)

Mission: To recycle carbon profitably from combustion exhaust using GreenFuel's advanced algae biotechnology

• is it financially attractive ?• is it financially attractive ?

Typical Project Example: 350 MW Coal Plant (Insolation Zone C/D –Germany case)

1 km2 deployment

Processes 4-5% of flue gas

Produces transportation fuel with a market value of:

€ 500/t of biodiesel

€ 400/t of ethanol

Target capital cost ~ € 18 million for commercial facility (excluding downstream costs)

1 km2 deployment

Processes 4-5% of flue gas

Produces transportation fuel with a market value of:

€ 500/t of biodiesel

€ 400/t of ethanol

Target capital cost ~ € 18 million for commercial facility (excluding downstream costs)

Info converted into SI units

Performance GoalsPerformance Goals

Past GFT Now Goal MaximumTime Line

Pro

du

cti

vit

y

Co

st

• GreenFuel has reduced costs by a factor of 8, and expects to reduce costs by an additional factor of 2

• GreenFuel’s process is 2.5 times more productive than other methods, and expects to double productivity again by 2007

Profitable

Performance Data from MIT Power Plant

Data collected, reviewed, and analyzed by independent company (CK Environmental, 9/2004)

*data measured 9 am-5 pm**data measured 24 hrs./day

CO2

Reduction*

NOx

Reduction**

Sunny Days

82.3%± 12.5%

85.9%± 2.1%

Cloudy Days

50.1%± 6.5%

85.9%± 2.1%

Light Intensity vs. Time

NOx, CO2 Mitigation vs. Time

Remnants of Hurricane(very low light)

50% reduction, even with very

low light

• which product slates could be generated ?• which product slates could be generated ?

Estimated Current Value of Fuel Slate for 350 MW Coal Plant With 1 km2 system

• Product Slate• 6.0 million liter/year of biodiesel (€ 3.0 million)• 7.5 million liter/year of ethanol (€ 3.5 million)• 0.5 million liter/year of glycerin (€ 0.1 million)• 14000 tons/year of algae of animal feed (€ 1.4 million)

• CO2 reduction of 40000 tons/year (€ 1.0 million (25 €/t) )

• Revenue value: approximately € 9.0 million/year*

• Estimates exclude credits for renewable fuels, CO2 and NOx reduction, green power, etc

• Product Slate• 6.0 million liter/year of biodiesel (€ 3.0 million)• 7.5 million liter/year of ethanol (€ 3.5 million)• 0.5 million liter/year of glycerin (€ 0.1 million)• 14000 tons/year of algae of animal feed (€ 1.4 million)

• CO2 reduction of 40000 tons/year (€ 1.0 million (25 €/t) )

• Revenue value: approximately € 9.0 million/year*

• Estimates exclude credits for renewable fuels, CO2 and NOx reduction, green power, etc

* Note: assumes existing EU subsidies for products

• what are the prospected running costs ?• what are the prospected running costs ?

• x MW for energy supply for temperature control, compressor, harvesting

• x€ for nutrients

• x€ for personal

Problem: running costs for current systems are too high. Greenfuel must therefore show a clear concept for a low-downstream costs implementation plan.

To start this discussion, a confidentiality agreement between the consortium and Greenfuel must be signed

• does the project result in a positive community image ?

• does the project result in a positive community image ?

• very positive response from media

local: BLVregional: Weser Kurier, NDR/TVnational: Financial Times, Süddeutsche, Handelsblattinternational: invited talk by IRR to EPCON conference, Vienna

IRR (Int. Res. Inst)EPCON: Industry energy sector Austria

• Phase II Proposal (modified from Greenfuel example)• Phase II Proposal (modified from Greenfuel example)

Initial-Term Commercialization Process

Project Stage Milestone

Overall Feasibility Study Deliverables

(18 to 24 months overall)

• Final marketing study, including end-products

• Design adaptation and installation, including Phase 1 and Phase 2

• Provision for local manufacture and labor• Assess commercial/regulatory parameters• Validation of preliminary process economics• Decision to proceed with Pilot Plant and

Commercial Rollout

Phase 1: Initial Field Test

• Training and design adaptation; assembly and deployment of mobile feasibility reactor

• Test ambient site conditions (3-6 months each)

• Identify optimal algae strains/blends• Substantiate productivity

Phase 2: Advance Module Test

1 ha deployment

• Design adapt, fabricate, and install Advance Module and train personnel

• Field testing of sustained productivity levels and consistency of biomass quality (3-6 months)

• Develop optimal nutrient strategy• Validate dewatering process

Pilot Project approval • Decision to proceed with deployment of Pilot Project

Initial Term of License – Pre-

Commercialization

TasksTasks

First step: Sign confidentiality agreement and reveal/discuss running costs implementation plan. Sign customized MOU between IUB, BluebioTech, E.on and Greenfuel

Negotiate terms of Definitive Agreement for long-term international licensing agreement between E.on and Greenfuel

IUB: coordination, verify production rates with new reactor-type, identify optimal algae strains/blends for different purposes, Field testing of sustained productivity levels and consistency of biomass quality, train personnel, marketing for biofuels, research on building material for permanent sequestration

BlueBioTech: reactor design adaptation, support search for optimal algae strains for different purposes, marketing for feed, bioactive substances, Develop optimal nutrient strategy

Greenfuel: assembly and deployment of mobile feasibility reactor, support search for optimal algae strains for different purposes, Design adapt, fabricate, and install Advance Module

Hochschule Bremen: R&D on wastewater module for industry applications to recycle glycerin from biodiesel production

First step: Sign confidentiality agreement and reveal/discuss running costs implementation plan. Sign customized MOU between IUB, BluebioTech, E.on and Greenfuel

Negotiate terms of Definitive Agreement for long-term international licensing agreement between E.on and Greenfuel

IUB: coordination, verify production rates with new reactor-type, identify optimal algae strains/blends for different purposes, Field testing of sustained productivity levels and consistency of biomass quality, train personnel, marketing for biofuels, research on building material for permanent sequestration

BlueBioTech: reactor design adaptation, support search for optimal algae strains for different purposes, marketing for feed, bioactive substances, Develop optimal nutrient strategy

Greenfuel: assembly and deployment of mobile feasibility reactor, support search for optimal algae strains for different purposes, Design adapt, fabricate, and install Advance Module

Hochschule Bremen: R&D on wastewater module for industry applications to recycle glycerin from biodiesel production

Typical Commercial Rollout StrategyTypical Commercial Rollout Strategy

Project Stage Milestone

Phase 3: Pilot Project Implementation

(one to three acres)

• Finance and construct Pilot Project• Confirm performance of selected algae strains for sustained operations

• Confirm fuel and other products content

• Confirm supply chain issues• Confirm all hardware designs, operability and maintainability, and validate scalability

• Train operating staff

Phase 4: Phased Full-scale Commercial Deployment

(up to 1000 acres per location)

• Asset-based financing of full deployment

• Phased construction of commercial system

• Full staff training• Sales of products resulting from the project

• Secure environmental and “green” credits

All partners

Where algae growWhere algae grow

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East GreenlandEast Greenland

10000 km2 ≈ 3 million t CO2/a90 % recycled

Denmark/NorwayDenmark/Norway

10000 km2

≈ 1 million t CO2/a95 % recycled