The document discusses current inefficient raceway technology for algae production and proposes more efficient closed-loop bioreactor systems that use little water and energy. It presents a prototype bioreactor system that produces 175 grams of algae per square meter per day, much higher than the 15 grams produced by old raceway systems. The document outlines plans to scale up to multi-acre algae farms and estimates large revenues in the billions from algae used in food, supplements, and pharmaceuticals.

1. Climate Independent
Algae Production Systems
September 2012
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2. Current raceway technology is inefficient and
inadequate to provide for the growing algae
market demand.
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3. Old School producing at
15 grams / sq. meter / day
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4. Efficient, climate independent, adaptable, closed-
loop systems that use very little water and energy.
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5. 6’ long
30” wide
24” high
Septic Anaerobic
tank digestion
Closed-loop, controlled Nutrasonics
bioreactor system Electromagnetism
• Bioreactor “cell”
• 200 Gallon Capacity
New School producing at • Modular Design
175 grams / sq. meter / day
• Scalable Farms (45’ Width x 140’ Length)
• Multi-function Harvester
• Nutrient Injection System
• Recycled Water Purification
• Climate Independent
• Generates Electricity
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6. Light
THE OPTIMUM
Temp
Water
Nutrient
CO2 Flow
Algal (singular) vs. Algae (plural)
Microscopic Plants that Grow Without Roots in Water
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7. $68B Annual
Demand
$41B Food and Food
Supplements
AMF’s Value Proposition
Supplying systems that grow algae
Nutraceuticals In diverse geographical and demographic locations
$7B / Foods Through self sufficient, closed-loop growth systems
That generate energy, recycle water and produce nutrients
$20B Pharmaceuticals
Estimates based on
USDA and DOC data
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8. Sushi
The green paper-like substance Dairy Products
used to wrap sushi rolls is algae. According to the University of
This is a special "leafy" variety of California at Los Angeles, a type of
algae grown on farms in Asia and algae called carrageenan is
shipped throughout the world. The commonly added to dairy products
leafy algae is grown on strings to give them a denser consistency.
then dried in the sun. This type of The most common algae containing
algae is especially high in vitamins products are sour cream, chocolate
and nutrients. milk and cheese
Food Thickeners
The Hawaii Department of
Education says algae is often Gelatin
added to liquids to make them Gelatin contains a type of algae called
thicker. For example, algae is agar. It can solidify just about anything
put in shakes and malts to that comes in a liquid form. Agar was
thicken them. It is also added to first used in China in the 17th century
mayonnaise to prevent it from Toothpaste and is now found in hundreds of foods
becoming runny. Alginic acid While toothpaste is not a food, it is a sold in grocery stores, such as pie
contained in algae acts as a safely ingestible substance that crusts, pumpkin pie filling and flavored
stabilizer or emulsifier. contains algae. Without algae, gelatin.
toothpaste would be a runny liquid.
Algae makes toothpaste into a semi-
solid that then dissolves with the
brushing action of cleaning teeth.
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9. Focus on nutraceuticals, pharmaceuticals and food
Algae sales to generate initial income
Establish domestic market first
Broaden into global market utilizing Certified Distributors
Expand deployment using Non-Governmental Organizations
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10. Macro Prototype
Array Array 1x Farm 3x Farm
(Phase-1) (Phase-2) (90 Bioreactors) (270 Bioreactors)
$300K $700K
Capital Capital
• 6 bioreactors • 40 bioreactors • Stand alone • Mid-size farm
• prove proof of • Integrate • Fully • Increase algae
concept features operational growth
• Basic system • Begin producing • Demonstration
algae for profit farm
Algae Farming, Design/Build & Services
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11. • 130 metric tons per month (total)
• Spirulina @ $3M/month (current value)
Algae • Haematococcus @ $18M/month (current value)
Farming
• 1x Farm, 10MT/month, $1.8M inv >>> $2.5M/year rev
• 3x Farm, 30MT/month, $3M inv >>> $7.9M/year rev
Design/Build • 10x Farm, 90MT/month, $15M inv >>> $36M/year rev
• On-going Licensure, Maintenance, Support and Brokerage
• 3% of product sold
Services
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12. Months 1-3, Phase-1, Macro Array
• $300K Capital Raise, $155K Opex, ($155K) EBITDA, $90K Capex
Months 4-9, Phase-2, Prototype
• $700K Capital Raise, $160K Opex, ($160K) EBITDA, $525K Capex
Months 10-15, Adding 1x Design/Build and 3% Royalties, Selling 5 Farms
• $850K Revenue, $612 Gross Margin, $250K Opex, $362 EBITDA
Months 16-27, Adding 3x Design/Build and 3% Royalties, Selling 12 Farms
• $6.8M Revenue, $4M Gross Margin, $750K Opex, $2.5M EBITDA, $1.25 Capex
Months 28-39, Maintaining 3x Design/Build and 3% Royalties, Selling 20 Farms
• $14M Revenue, $7.8M Gross Margin, $1.3M Opex $6.3 EBITDA, $2.5M Capex
Months 40-51, Adding 10X Design/Build and 3% Royalties, Selling 25 Farms
• $37M Revenue, $17.4M Gross Margin, $2.5M Opex, $17.4M EBITDA
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13. ITEM UoM Prototype 1x Farm 3x Farm
System Cost One time $492,000 $1,800,000 $3,000,000
Operating Cost Monthly $6,100 $37,500 $85,000
Metric Tonne
Monthly 1.1 10 30
Output
Spirulina 1 Sales/month $27,500 $250,000 $750,000
ROI In Months 23.0 8.5 4.5
Revenues 12 Month ROI Basis $256,800 $2,550,000 $7,980,000
1
Spirulina Price / Metric Tonne $25,000
ROI. MONTH 12
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14. ITEM UoM Prototype 1x Farm 3x Farm
System Cost One time $492,000 $1,800,000 $3,000,000
Operating Cost Monthly $6,100 $37,500 $85,000
Metric Tonne
Monthly 1.1 4.4 12
Output
Haematococcus2 Sales/month $165,000 $660,000 $1,800,000
ROI In Months 3.1 2.9 1.7
Revenue 12 Month ROI Basis $1,906,800 $7,470,000 $20,580,000
2
Haematococcus Price / Metric Tonne $150,000
ROI. MONTH 12
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15. Algae as food has been around 2,000 years
Bio-reactors were first introduced in 1953
Algal Micro Farms is a vehicle to efficiently
and productively grow algae for the masses
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16. One billion people will go to bed
hungry tonight
In developing countries, one
child in four is underweight
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17. Jeffrey Scott
President & Founder
Chandler, Arizona 85224
+1-303-589-7580
jeffreyscott@algalmicrofarms.com
algalmicrofarms.com
Brenton Brownell
VP Marketing, Sales and Corporate Development
Tucson, Arizona 85749
+1-520-975-7476
brentonbrownell@algalmicrofarms.com
algalmicrofarms.com
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