Biofuels

<p>Heterotrophic approach - sugars to fuels directly

Phtosysmthetc approach - consume sunlight - thermochemical of biochemical conversion of biomass or lipids</p>

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Nexus of energy production, water, CO2, byproducts (for agriculture and food production)</p>

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Algae Systems - cultivate algae offshore, dewater it, convert into fuels

Two primary markets - transportation fuel market very large and growing. &nbsp;$2.8 trillion

Wastewater market - $500 billion market.</p>

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Challenges of algae production - raceway (open pond) and bioreactors approach. &nbsp;Critical factors are very different for the two. &nbsp;</p>

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Omega Technology - Offshore Membrane Enclsoures for Growing Algae. &nbsp;Basically a plastic bag with a membrane that allows gas exchange. &nbsp;CO2 goes in at the bottom with wastewater, then feeds the algae, and then dewater using osmotic gradient between fresh and saltware. &nbsp;&nbsp;&nbsp;No energy cost - a critical factor.&nbsp;</p>

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Omega solves many of the challenges of algae production. &nbsp;&nbsp;Environmental impact of the system is very low. &nbsp;Basically flushing wasterwater into oceans, creating a problem. &nbsp;Instead, use the wastewater to generate algae and fuel. &nbsp;&nbsp;And generate fresh drinking water through a desalination process. &nbsp;&nbsp;</p>

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What's the right pathway? &nbsp;&nbsp;Algae oil, anaerobic digestion, pyrolysis, supercritical fluids, gasification, hydrotreatment?</p>

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They are focused on thermochemical approach to put all the carbon into fuels. &nbsp;&nbsp;

Hydrotreatment using hydrogen??? &nbsp;&nbsp;&nbsp;Using concentrated solar or geothermal. &nbsp;&nbsp;</p>

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Major advantage is to decouple systems from constraints of feedstocks. &nbsp;&nbsp;When partnering with a compay like Global Thermostat decouples their need to generate CO2 from flue gas, and all the capital associated with that.&nbsp;</p>

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Up to 20,000 gallons/acre. &nbsp;Lower technology risk. &nbsp;Carbon ?Neagitve fuel (net 20% reduction &nbsp;HOW DEFINED?). &nbsp;Economic benefits from wastewater treatment and byproducts. &nbsp;&nbsp;Robust polyculture vs. monoculture. &nbsp;High Capital Efficiency. Not-competition with land and water resources. &nbsp;</p>

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Comparative benefits . &nbsp;&nbsp;&nbsp;3.29 kg CO2 removed and 9.86 kw avoided per gallon. &nbsp;&nbsp;&nbsp;&nbsp;Highl positive energy balance. &nbsp;Using solar, can get 4 units out for every 1 put in. &nbsp;</p>

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Levelised cost of energy $/kwh. &nbsp;&nbsp;&nbsp;&nbsp;Diesel 2 to 8 cents. &nbsp;Gasoling 2 to 8 cents. &nbsp;Biodiesel 2 to 13 cents. &nbsp;Ethanol .5 to 9 cents. &nbsp;</p>

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Wastewater revenue key here. &nbsp;&nbsp;Costs come down, and price volatility comes down. &nbsp;So wastewater treatment gives much lower price and risk than conventional fuels. &nbsp;</p>

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Development Approach . &nbsp;Builindg pilot 10-15 acres of bags, 300,000 gallons of fuel, for about $4/gallon gross cost, 2.50 /gallon net cost. &nbsp;&nbsp;Goal is $1/tallon commercial. &nbsp;&nbsp;</p>