sasaran varicon information

1. 8/11/2009 1 MAKING ALGAE EASY.

2. An introduction toSasaranBiofuelsSdnBhd

4. Our Mission

5. Group Activities

6. Biomac

7. SasaranBiofuel

8. Bio Herbal Extracts

9. The Site – Lab, Factory and Ponds

10. InPremia

11. Our Algae Lab

12. Pilot Ponds and PBR

13. An example of a system

14. TheAlgatech Approach

17. Establish a fully integrated cultivation operation in Malaysia and the region.

18. Establish quality products from microalgae for the global market.

19. Establish joint ventures as may be required to advance Algaetech's mission.

21. GROUP ACTIVITIES The pioneer in R&D and Pre-Commercialisation of algae for biodiesel in Malaysia. The project received a Technofund Grant from the Malaysian Ministry of Science, Technology and Innovation totaling RM2.0 million (US$600k). Project Objectives : To build a commercial algae production pond using the latest and advance technology in Malaysia; To conduct research and development on the Biological and Chemical Engineering of microalgae production systems for the Biodiesel production and processing in Malaysia; To build and set up a Biodiesel processing plant on the extraction and production of biodiesel from algae; To patent the IP of the improved algae production and the extraction of Crude Algae Oil and processed biodiesel from algae; To market the technology, know-how and the product (algae-based products and biodiesel) locally and internationally.

22. GROUP ACTIVITIES Project Milestone

25. All year algae production

26. Low cost flue gas, CO2

27. Low cost water source

28. Residual energy

29. Arid land Smoke fan Ash collector Flue gas Microalgae pond

31. The farming and processing will be undertaken utilizing Algaetech's new and proprietary technology, while exploiting existing resources available in Malaysia

32. BHE will be establishing its plant in TPM. The plant is a sophisticated, highly secure and fully operational state of the art research facility. Testing has commenced on the proprietary technology and has been proven successful.

34. STATE OF THE ART LABORATORY The Algaetech lab is culturing different types of strains and is being monitored closely by a group of young researchers and algae consultants. The main objective is to optimize the growth under “tropical” environment. With conventional propagation methodology, coupled with raceway ponds, The Biofence Photobioractor in collaboration with Ingrepro (Netherlands) and Vericon (Scotland), Algaetech’s facilities will provide the required R&D for the right strains.

35. STATE OF THE ART LABORATORY

36. STATE OF THE ART LABORATORY

37. CULTURING ACTIVITIES

38. PILOT POND UNDER CONSTRUCTION

39. PROTOTYPE PHOTOBIORECATOR

40. A TYPICAL IDEA FOR CO2 SEQUESTERING AND ALGAE PRODUCTION

41. THE BASICS CHEAP, CHEAPER, CHEAPEST CO2 PLENTY OF SUNLIGHT (NOT TOO MUCH)

42. PROTOTYPE PHOTOBIORECATOR

44. ASEAN ROADMAP FOR RENEWABLE ENERGY

45. The Varicon-Aqua Ventures Malaysia to be the algae hub for Asia. One stop technology centre for algae industry Proven technologies-over 62 units PBR around the globe. Asian-European technology. Quick delivery period

46. AFFILIATES & ASSOCIATES

47. CONCLUSION In Summary, : Developed exclusive proprietary microalgae cultivation technology capable of providing a clear market advantage in the global microalgae cultivation industry. Positioned the Group to establish the only fully integrated microalgae refinery operation in Asia that has been proven to extract bio-fuels and high value products. Positioned the Group to eventually capitalize and take advantage of the current trend in fuel prices by offering our own bio-fuels package coupled with high value products. Positioned the Group to supply the global market with a superior quality microalgae products. Inspired to contribute to preserving environmental quality and cleanliness.

49. Introducing Varicon Aqua Solutions Ltd Company formed in October 2005 by J.McDonald, D.Guest Part of a group of companies, Varicon (3D) Drives Ltd, Computec Control & Automation (A Division Of Varicon (3D) Drives Ltd, Specialising in Power Electronics and PLC. Mechanical Engineering 21 employees within group. Varicon Aqua Solutions specialise in providing algae production expertise across a very diverse range of production and research sectors, nationally and internationally. Designing, manufacturing, exporting and commissioning the BioFence PBR globally, which; significantly differentiates Varicon Aqua from many other ‘algae technology’ suppliers in the current market, Including design, manufacturing & installation of data acquisition and process control systems SCADA, HMI etc. Establishing distribution of Varicon products and services through authorised outlets in Norway, the Netherlands, France, Australia NZ and Tasmania, east and west coast USA. NOW ASIA VIA NEW JV CO SASARAN≡VARICONAQU

50. BioFences Around the Globe. 60 operational units worldwide. Standard test rig capacities from: 400L to 2400L. Larger and bespoke systems supplied to order.

51. Activity Expanding sales of the BioFence throughout the UK, Ireland, throughout Norway, Sweden, Denmark, Iceland, Greece, Spain, the Netherlands, Singapore, Malaysia, throughout the USA (2008 Sapphire Energy, san Diego Utilise BioFence) Cosmetceutical project in Iceland 2007 and expanded 2008 at Blue Lagoon (Shell Oil, Algae to fuel project Utilise BioFences 2007 2008) ( 2008 Kuehnle Agrosystems Hawaii utilise BioFences for DARPA program) 2009 additional installation for production of aqua-feeds (Cargil) . 3 BioFences installations complete at Cal-Poly Dec 2008. BioFences delivered Malaysia, 2 contracts, installations complete Jan 2009. BioFence delivered Kentucky University, installation Jan 2009 BioFence delivered USFW, West Virginia, installation Jan 2009 Completed UK power Utility installation on oil fired power station for CO2 abatement R&D. Value = 350K EU. 1 million US GPA algae Biodiesel/ valorisation project , Montana 2009.under construction Value = $35 Million USD Agri-Aqua biomass production in the Netherlands. Additives market Astaxanthin project in Texas under contract for install 2009 Collaborating on several FP7 research proposals and projects. Ongoing project management, Including R&D support for existing customers. Industrial PBR development via SASARAN≡VARICONAQUA in Asia, including project management of extensive algae biomass production in Thailand and Malaysia. 30

52. Live algae productionTHE Varicon BIOFENCE WHAT IS THE BIOFENCE? A HIGHLY EFFICIENT AND RELIABLE METHOD FOR PRODUCING HIGH DENSITY MONOCULTURES OF MARINE AND FRESHWATER ALGAE. WHY CHOOSE A BIOFENCE? TYPICALLY OPERATES AT DENSITIES OF 10 TO 15 TIMES THAT OF CONVENTIONAL CULTURE METHODS HIGHLY PRODUCTIVE RELATIVE TO CONVENTIONAL PRODUCTION METHODS. DRAMATICALY REDUCES LABOUR REQUIREMENTS AND ELIMINATES HANDLING PROBLEMS CAN BE OPERATED FOR PROLONGED PERIODS WITHOUT CULTURES CRASHING FACILITATED BY PATENTED TUBE SELF CLEANING MECHANISM IT IS A CLOSED, CONTOLLED SYSTEM, ENVORONMENTAL PARAMETERS ARE AUTOMATICALLY CONTROLLED SYSTEM EASILY EXPANDED TO MEET INCREASED PRODUCTION REQUIREMENTS

53. ProductivityBag Reactor vs Varicon BioFence T B A G S Y S T E M N a n n o c h l o r o p s i s W i n t e r p r o d u c t i o n o r a r t i f i c i a l l i g h t S u m m e r p r o d u c t i o n , n a t u r a l d a y l i g h t % h a r v e s t r a t e / d a y m e a n c e l l d e n s i t y % h a r v e s t r a t e / d a y m e a n c e l l d e n s i t y 1 6 % 2 0 m i l l i o n / m l 2 4 % 2 5 m i l l i o n / m l V A R I C O N B I O F E N C E . N a n n o c h l o r o p s i s W i n t e r p r o d u c t i o n o r a r t i f i c i a l l i g h t S u m m e r p r o d u c t i o n , n a t u r a l d a y l i g h t % h a r v e s t r a t e / d a y m e a n c e l l d e n s i t y % h a r v e s t r a t e / d a y m e a n c e l l d e n s i t y 2 5 % 1 2 0 m i l l i o n / m l 3 5 % > 6 0 0 m i l l i o n / m l Note: This is on the basis of a photoautotrophic process

54. The Varicon BioFences in Operation SHELL OIL FUEL PROJECT CO2 CAPTURE PROJECT UK EARTH CENTRE UK CONSERVATION PROJECT USA

55. The Varicon BioFences in Operation BioFence in Montana Oceanic Institute Ohau Industrial Pilot BioFence

56. THE Varicon BIOFENCES IN OPERATION BLUE LAGOON ICELAND BRITISH NUCLEAR FULES LTD US FISHERIES AND WILDLIFE FISH FARM LA CORUNA

57. BIOFENCES IN OPERATION 8/11/2009 36 HAWAII KUEHNLE AGROSYSTEMS INGREPRO NETHERLANDS BRITISH NUCLEAR FULES LTD UK POWER UTILITY

58. Common systems Ambient conditions ½” NB Fence A only Common system Nutrient solution ½” NB Water treatment Injection control unit ¼” NB V18a Manual valve Dessicator ½” NB NRV3 G1 T9a F3a NRV2 Dessicator 2” NB V19 T3a C1a Inlet 300mm minimum height above overflow ½” NB ½” NB overflow U-tube to stop ingress of air Header tank V11a F1a F4a T4a ½” NB V12a PAR1 Pmp3a CO2 cylinders Opt1a T1 W1 2” NB pH1a ½” NB vent Pmp4a T8a PRV1 Steam flow in T2 Air vent Holding tank ½” NB V3 T7a CV1a V17a CV2 LQS1a Water Hot water tank F5a F2a Overflow 2” NB Condensate out Minimum head to be specified 3” NB 3” NB V10a 2” NB T11 Drain V4a V9a 2” NB HX2a V5a Pmp2a 2” NB T5a T6a V13 V14a 2” NB HX1a V15a V8a ½” NB V6a Drain V7a V16a ½” NB 11/08/2009 P&ID Mod 13 ½” NB Fill

59. INDUSTRIAL PBR CONCEPT

60. THE ALGAE WHAT ARE MICRO-ALGAE? A DIVERSE RANGE OF PHOTOSYNTHETIC PLANTS COMPRISING 9 THALOID PHYLA, CHLOROPHYTA, EUGLENOPHYTA, PHAEOPHYTA, CHRYSOPHYTA, PYRROPHYTA, RHODOPHYTA, CYANOPHYTA, CRYPTOPHYTA, CHLOROMONADOPHYTA. TIPICALLY ALL RETAIN A CUTICULAR CELL WALL COMPRISING MAINLY CELLULOSE. ALL SPECIES IN THE NATURAL ENVIRONMENT UTILISE LIGHT (PHOTONS) DISSOLVED CARBON DIOXIDE, & NITRATE, PHOSPHATES, TRACE ELEMENTS VITAMINS AND MINERALS FOR GROWTH. DIATOMACIOUS SPECIES REQUIRE AN ADDITIONAL SUBSTRATE IN THE FORM OF SOLUABLE METASILICATE, THESE SPECIES VARY INSOFAR AS THE EXOSKELETON COMPRISES MAINLY SILICACIOUS COMPLEXES. SELECTED STRAINS CONTAINING UP TO 40-50% LIPID ON A DRY WEIGHT BASIS. 245% PRODUCTION PER DAY POSSIBLE WITH MIXOTROPHIC APPROACH 39

61. CELL MICROGRAPHS 8/11/2009 40

62. Microalgal Components/extracts COLOURANTS AND ANTIOXIDANTS: XANTHOPHYLLS LUTEIN, β CAROTENE, VITAMINS FATTY ACIDS: SATURATED AND POLYUNSATURATED, TRIGLYCERIDES EFA’S ENZYMES: CELLULASE, SUPEROXIDE DISMUTASE,PHOSPHOGLYCERATE KINASE, LUCERIFASE & LUCIFERIN, RESTRICTION ENZYMES. SOLUBLE PROTEINS: CARBONIC ANHYDRASE, comprising 236 amino acids POLYMERS: POLYSACCHARIDES, STARCH, POLY β HYDROXYBUTYRIC ACID SPECIAL PRODUCTS: PEPTIDES, TOXINS, STEROLS, AMINOACIDS. LUBRICANTS FUELS: BIOETHANOL, BIOHYDROGEN, BIODIESEL, GREEN DIESEL

63. RANGE OF APLICATIONS AQUACULTURE, as feed for fish, shellfish and crustacea PHARMACEUTICALS NEUTRACEUTICALS BIO-REMEDIATION CARBON SEQUESTRATION / ABATEMENT BIO-FUELS DRUG DELIVERY. 42

64. Relative Composition of Algae Species

66. Dunalliela salina, an extremophile can contain up to 95% of total carotenoids asβ carotene. (Jiménez and Pick, 1994)

68. Algae Lipid Yields Source: Brown et al., 1991 and 1992; Singh and Kumar 1992

69. Low-Tech Microalgal Production

71. Current extraction technologies apply.

72. Huge scope for substitution or augmentation of terrestrial sources

74. The Algae Biofuel Process

75. Example of Research Initiative 51

76. Indicative Production Costs 52

77. Indicative Market Values. 53 Current estimated worldwide production of algae: 7.2 million Tons/pa Estimated value: $6.8 billion USD. (Macro & Micro algae)

78. Is current technology up to the challenge? 54

79. BioFence Test Rig BNFL 55

80. THANK YOU ______________Aquaculture, Fisheries. Amenities, Renewables FOR FURTHER INFORMATION CONTACT TECHNICAL SALES AT: Merebrook Business park Hanley Road Malvern Worcestershire WR13 6NP Tel: + 44 1684 312980 Fax: + 44 1684 312981 www.variconaqua.com aqua-solutions@varicon.co.uk No 241-A, JalanAmpang 50450, Kuala Lumpur Wilayah Persekutuan Malaysia Tel: + 603 2144 0140 Fax: + 603 2144 0190 www.sasaran-variconaqua.com syedisa@algaetech.com.my