Modernizing Algae Cultivation Practices to Enhance Applications as Nutritional Products

BIO, Montreal, July 25th 2017

Algenol Biotech LLC is an industrial biotech

company developing biobased products utilizing

algae (founded in 2006)

HQ, R&D and manufacturing in Fort Myers, FL

R&D facility in Berlin, Germany

Operates in multiple sectors

AgTech & Food applications

Algae based proteins

o Natural colorants

o Proteins for human and animal nutrition

Soil treatment

o Biostimulants

o Biofertilizers

Contract research, development and manufacturing

Algal product research and development

Synthetic biology: developing cyanobacteria

as heterologous expression systems

Photobioreactor-based algae production tolling

Ethanol and biocrude – through synthetic

biology

Algenol Overview

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Algae as a platform meeting global needs

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Biofuels and

Biocrude

($1,800 B)

• Biocrude

• Bio-gasoline

• Biobased

diesel

• Renewable

jet fuel

• Ethanol

Feed

($380 B)

• Fish feed

• Livestock

feed

• Bio-fertilizers

• Biostimulants

• Soil

reclamation

• Waste water

treatment

• Oil, fat and

protein

replacement

• Food

Ingredients

• Anti-aging

• Natural and

organic skin

care

• Single cell

proteins

• Carotenoids

and pigments

• Bioactive

compounds

Agro

Sciences

($150 B)

Food

($560 B)

Premium

Cosmetics

($80 B)

Nutraceuticals

($11 B)

ALGAE HAS CHARACTERISTICS SUITABLE FOR A WIDE RANGE OF PRODUCTS

Source: Bloomberg New Energy Finance, Advanced Transport Research Note, June 2015.

Algae Nutraceuticals

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Algae

Nutraceuticals

Carotenoids and

Pigments

Bioactive

CompoundsSingle Cell Protein

Beta Carotene

Astaxanthin

Lutein

Lycopene

Zeaxanthin

Cholorophyll

Natural Colorants

Fucoxanthin

Canthaxanthin

Antioxidants

Lipids

Carbohydrates

Peptides

Proteins

Vitamins

Spirulina

Chlorella

ALGAE NUTRACEUTICALS DRIVEN BY HEALTH BENEFITS, TREND TOWARD “NATURAL” FOOD

Source: Comprehensive Report on Attractive Algae Product Opportunities Preview (Feb. 2015)

Algae Agroscience products

Algae forAgro Sciences

Wastewater

treatment ($90 B)

Soil Treatment

($60 B)

Biofertilizers &

Biostimulants

Soil reclamation

Fertilizer runoff

reclamation

Sewage/wastewater

treatment

Biofilters for fish pond

effluents

ALGAE IN AG SCIENCES DRIVEN BY YIELDS, SUSTAINABILITY CONCERNS & ORGANIC FARMING

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Carbon sequestration

Algenol can enable production of multiple algae based products

Algenol Core Technology

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Natural ColorantsFood, beverage,

cosmetics

Nutraceuticals

Phycocyanin, spirulina

Personal Care Ingredients

Functional and active

Oil based products

Omega 3s

Soil TreatmentActive fertilizer

ingredients, biostimulants

Protein for nutrition

Vegan, excellent amino acid profile

PBR Array

Fort Myers, FL7

Enclosed production

systems industrialize

algae cultivation

Highly efficient algae

growth

Each PBR maximizes light distribution and

moderates temperature for maximum yields

System eliminates contamination from dirt,

debris, bird feces, fly larvae and other unwanted

substances

PBRs efficiently deliver carbon dioxide and

nutrients to the algal culture

PBRs allow tight control over algal culture

conditions permitting better control over desired

algae composition

PBRs limit contamination from other algae

species to maintain monoculture conditions

Greater product concentrations at harvest

compared to open ponds

System automation reduces labor costs

Proven effectiveness across broad range of

algae types

Low cost systems

open up profitable

large-scale

cultivation

The Algenol Vertical Photobioreactor (PBR)

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How we industrialized Algae cultivation

An Industrial Production System

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Criterion Open Pond Technology

Traditional PBR

technology

Algenol PBRcultivation

system

Algenol PBR Advantages

Capital Costs Low Very High Medium Low cost PBRs, optimized for commercial ops

Product Quality Variable High High Improved product consistency due to reduced risk of contaminating bacteria, algae and toxins

Productivity Low to Medium High High At least 2X open pond productivity, due tohigher volumetric and area production rates

Scalability High Very Low High Algenol PBRs suitable and designed for large industrial operations

Ability to handle wide range of algae

High Low Medium to High Proven ability to handle different types of algae

Ability to handle genetically engineered (GE) algae

Low High High Approved GE algae; easier permitting

Manage yields of components

Low High High Can configure PBR system conditions to optimize specific components

Contamination control Low High High Self-contained system with optimized clean-up procedures and low risk pf process upsets

Precise process control Low to Medium High High Precise control of flow, air & CO2 diffusion

Sustainability Medium to High High High Lower water and CO2 losses. Low carbon footprint.

Productivity Advantages of Vertical PBR Arrays

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Dark area

Competing & predator organisms

Constrainedlight utilization

CO2, Waterlosses

• Higher Productivity Better light management Reduced competing organisms Better gas management

• Sustainability Less fresh water use Improved nutrient utilization Better CO2 utilization

Efficient light utilization

VERTICAL PBR ARRAYS TRADITIONAL OPEN PONDs

Very Low CO2 losses

High exposure layer

• Competitive costs Lower total lifecycle costs Higher product quality State-of-the-art PBRs

Low Culture stress

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PBR Array Measurements and Controls

Fully automated systems allow precise process control

Business Focus: Natural Colorants

A spirulina algae strain (Arthrospira platensis) is exempt from the US Food and Drug

Administration (FDA) certification

Firm regulatory footing in the US, EU and Japan

$2 billion/7% annual growth market with strong positive drivers – high profit potential

Spirulina contains protein based phycocyanin pigments, which provide a vivid blue color

DIC-Earthrise, Parry Nutraceuticals and a few Chinese spirulina producers already sell

phycocyanin produced by cultivating and harvesting open ponds

Algenol will produce cost competitive phycocyanin using commercially-proven, clean,

controlled and highly productive photobioreactors

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Business Focus: Proteins

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• Protein market has huge potential for large-scale expansion of our business

• Potential $15 Billion market for human nutrition alone

• Spirulina has a “Super Food” profile, which consumers find attractive

• Spirulina includes important amino-acids that vegetable proteins are deficient in

• Spirulina’s regulatory status and consumer acceptance are important factors

• Algenol production platform offers potential to deliver rich nutritional value of algae proteins at competitive cost while providing process traceability and control

• Multiple valuable byproducts from the production of protein

010203040506070

Protein % w/w

Protein % w/w

Extensive experience in development of cyanobacteria as

heterologous expression systems

Proteins, enzymes and biochemicals

Ethanol and higher alcohols, biocrude

Targeted Approaches

Introductions or modifications to known genes expected or intended to result in a

specific improvement to strain

Non-Targeted Approaches

Screens, selections, and adaptation to identify strains with improved properties

Mutagens can be used to increase genetic diversity

Transposon mutagenesis allow quick gene ID and full segregation

Additional traits can be added to improved strain

With modern ‘omics technologies, this is a powerful method for gene discovery

Complete molecular tool box for multiple strains

Plasmid vector construction

Conjugation and transformation

Homologous recombination

Trait stacking

Synthetic Biology Capabilities

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15

Algae

R&D

Algae

Process

Development

Algae

Commercial

Production

Algae

Regulatory

Approvals

Key Capabilities:

Key Deliverables:

Key Activities:

• 30,000 ft2 labs

• Very large algal strain

collection

• Lab based algae

screening capability

• Synthetic Biology

• Lab process

development

capabilities

• 4.5 acre Process Dev.

Unit (PDU)

• Analytical chemistry

• Large-scale

outdoor process

scale-up

• High performance

PBR Design and

Manufacturing

• Licensed site

• Lab screening,

photobiology, lab

cultivation

• Develop/improve

algae strains

• Analyze cellular

constituents

• Test multiple strains in

outside conditions

• Optimize PBRs and

cultivation procedures

• Develop commercial

process designs

• Perform Product QC

• Test commercial

designs at pre-

commercial scale

• Secure product

approvals and

certifications

• Secure permits for

GE algae, e.g.

MCAN, state permits

• Secure all

environmental

permits for site

• FDA “game plan”

• Experience with

State and Federal

regulations

• Toxicology

screening

• NEPA on 36-acres

Fort Myers site

• MCANs for new

strains.

• Regulatory approval

• Identification of best

strains to meet

commercial specs.

• Validation of economics

• Preliminary designs

• Pre-commercial samples

• Final designs

• On-spec commercial

batches

Algenol One Stop Shop for Commercialization

• Highly productive and sustainable algae

production platforms

• Ability to develop all natural products and

customize them for individual clients

• State-of-the-art laboratory facilities –

United States and Germany

• Advanced in-house analytics

• Dedicated, high tech cultivation rooms

• Integrated biology and engineering R&D

• Highly skilled and specialized scientists

The Algenol Advantage

For more information, please contact us:

Jacques Beaudry-Losique, CBO

Jacques.beaudry-Losique@Algenol.com

703-389-0690

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