1. Univenture, Inc
AlgaeVenture Systems
Growing Fuel, Technology & Jobs in Ohio
June 24, 2008
2. Univenture, Inc.:
20 Years of Innovation
1988
• Boot-strapped start-up
• Technological start-up experienced
• Profitable for the last 17 years
• Inc. 500 Fastest Growing 5 times
• SBA National Business Person
• Ernst & Young Entrepreneur of the Year 2008
• 2002 International Plastics Design
Growing Fuel, Technology & Jobs in Ohio
October 14, 2008
3. Exploring Possibilities
• Is the petroleum supply a real issue?
• Is algae a viable alternative solution?
• How will we make this work for Ohio?
• What will this take for success?
Growing Fuel, Technology & Jobs in Ohio
Exploring Possibilities
October 14, 2008
4. Petroleum Dependence
• US has 1.6% of the world’s oil reserves
• US produces 9% of world’s production
• US uses 24% of the world’s production
• Ohio uses 251,151,000 barrels per year
• Ohio has proven reserves of 49,000,000
Growing Fuel, Technology & Jobs in Ohio
Is the petroleum supply a real issue?
October 14, 2008
5. Increasing
Non-US Demand
Decreasing World Reserves
Growing Fuel, Technology & Jobs in Ohio
Is the petroleum supply a real issue?
October 14, 2008
6. Is petroleum supply a real
issue?
Yes
Breaking America’s dependence on petroleum
imports requires immediate and strong leadership
to provide strategic coordination of resources that
bridge industry, academia and government
interests.
Growing Fuel, Technology & Jobs in Ohio
Is the petroleum supply a real issue?
October 14, 2008
7. Is Algae a Viable Solution?
Over thirty years of historical government research,
along with contemporary research and technological
developments, point to the viability of algae as an
extremely prolific source of both oil and feedstock
with the ability to feed virtually every aspect of the
current petroleum-product industry as well as the
evolving bio-diesel, and ethanol industry.
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
8. United States’ experience in
growing algae for fuel
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
10. Cost in Perspective
•30 years in public and private R&D into
bio-fuels from algae
~ $50 million spent
•Exxon profits $45 billion in 2008
~10 hours
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
11. Aquatic Species Program
Funding
• ASP began in 1978
• Ended in 1996 to focus
lean budgets on
bioethanol
• Overall investment
~$25 million
Aquatic Species Program (ASP): Lessons Learned, Eric E. Jarvis, National
Renewable Energy Laboratory
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
12. Sunlight is the focus on algae growth
Stephen Mayfield,
Department of Cell Biology and
Aquatic Species Program (ASP):
The Skaggs Institute for Chemical Biology,
Lessons Learned, Eric E. Jarvis,
The Scripps Research Institute
National Renewable Energy
Laboratory
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
14. Microalgae Diversity
• 200,000 to
1,000,000+ species
• 30,000 described
species
• Each a bio-factory
• Doubling bio-mass in
as little as 2 hours
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
15. Where do they grow?
NASA
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
16. Where do they grow?
• “highest
concentrations are
found in the high
latitude regions, while
the tropics and
subtropics show 10
to 100 times lower
concentrations.”
EFFECTS OF INCREASED SOLAR ULTRAVIOLET
RADIATION ON AQUATIC ECOSYSTEMS
D.-P. Häder (FRG), R.C. Worrest (USA), H.D. Kumar (India), and R.C. Smith (USA)
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
17. Where do they grow?
• “…temperature
appears to be an
important factor in the
initiation of
phytoplankton blooms
(no blooms recorded
over 25°C or 77°F).”
The influence of nutrients & temperature on the global distribution of algal
blooms. Literature Review June 2007 Compiled by Leanne Sparrow and Heimann
School of Marine and Tropical Biology James Cook University
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
18. Green Belt Region
• Natural resources
– Water
– CO2
– Nutrients
• Industry
– Technology
– Infrastructure
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
19. Algae Farming Today
• Open Ponds, Closed PBRs, Plastic Baggies
• Numerous Challenges
– Invasive Species, Control, Automation
– Cost of PBRs, Scale of Challenge
Growing Fuel, Technology & Jobs in Ohio
Is Algae a Viable Solution?
October 14, 2008
20. How do we Make this
Work for Ohio?
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
21. Ohio Crop Revenue
• Less than 30% of
Franklin County
growing algae would
produce EQUAL the
statewide crop
revenue of both soy
and corn
Graphical representation not actual locations
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
22. Only 527,417 acres
• 3.71% of Ohio’s
existing farmland
could supply Ohio’s
total annual
petroleum use
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
23. Vision Along with an
Enormous Effort Required
• Private, public & philanthropic participation
• Biosynthesis & genetic algal research
• Engineering & processing research
• Focus – engage, measure & reward results
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
24. Univenture, Inc. & our partners will
simultaneously research, engineer,
implement, and continually improve the
production systems for
algae oil, biomass & bio-products to
commercial scale and viability.
Building on Vision, Best Practices
& Innovation Simultaneously
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
25. Hybrid Pond Photo Bioreactors
Cost effective engineered systems and processes
that are efficient at growing algae biomass year
round, delivering profitable operation at the floor.
Specifically designed for ease of manufacturing,
installation, operations and production, delivering
fuel, feedstocks, and products.
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
26. AlgaeVenture Systems LLC
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
27. Algae Crop™ System
• Engineered closed system of cells 11’ x 200'
• 16 cells per acre with 80% growing surface
50 to 100 gdw/M2/day
•
• Oil at 50%-80% lipid content
• 9,344-29,900 gallons per acre per year at
scale
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
28. Algae Crop™ System
• 100 acre complex capital cost of $10 million net.
– Job creation – direct 15 & indirect 60
• Gross at 20,000 gpa = $6.8 million/yr.
– 32% at $3.40 per gallon price
– 8% at $2.50 per gallon price
• Breakeven at $2.30 per gallon price
– $67.65 per barrel for crude
• Wholesale Diesel was $3.87 (9/08/08)
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
29. Economic Impact
• Producing enough algae oil to supply
Ohio’s entire current petroleum need
results in $35 billion of annual sales
• Potential 5X effect in all sectors could
increase Ohio’s GDP by 39%
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
30. Job Creation
• 79,000 jobs directly in algae industry
– ~30 “green collar” jobs per 100 acre
– Numerous jobs in many fields
• Construction, Manufacturing, Maintenance, Operations,
Management, Clerical, Transportation, Energy,
Engineering, Plastics, Biology, Chemistry, & Many more
Manufacturing
• 5X indirect and trickle effect = 395,000
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
31. Sustainable
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
32. Quality of Life
• Economic stability & GROWTH
• Environmental preservation
• Security -Long term energy & food resources
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
33. We need to look long-range
• Developing algae oil production facilities
is simply the FIRST step in our
transition to a bio-economy.
• Bio-polymers, bio-plastics and a host of
sustainable products will follow.
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
34. Transforming the Rust Belt
into the Green Gold Belt !
Growing Fuel, Technology & Jobs in Ohio
How Will We Make this Work for Ohio?
October 14, 2008
35. What will it take for Success
• An unprecedented collaboration
between public, private & academic
sectors
• A “Manhattan Project” style effort for
Algaculture
Growing Fuel, Technology & Jobs in Ohio
What will it take for Success?
October 14, 2008
36. $500 Million for Scale
Nearly $25 Billion for first 1%
• The engagement and leverage of
thousands of skilled professionals
– Scientists & Engineers, Technicians
– Management, Production, Construction,
Financial & Logistics professionals.
Growing Fuel, Technology & Jobs in Ohio
What will it take for Success?
October 14, 2008
37. Moving Forward
• Univenture, Inc. Resourcing Internal & External
• 12-20 systems throughout Ohio
– Universities: OSU, OU, Miami, UC, UT, others
– Research-focused: ODOT, OAI, Battelle, NASA,
NCC, etc.
– Industrial partners: bio-diesel, ethanol, power
plants, waste treatment, etc.
• Separate Business Units under a single LLC with
Univenture as Managing Member and major funding
source
Growing Fuel, Technology & Jobs in Ohio
What will it take for Success?
October 14, 2008
38. Moving Forward
• 12-20 Partners will focus intense efforts to improve yields
through species selection, speciation, systems,
processes, and engineering throughout Ohio
• Partners will be supported by entire collaborative with
teamwork for contract bids and technology sharing
• Becoming the base for future growth and implementation
Growing Fuel, Technology & Jobs in Ohio
What will it take for Success?
October 14, 2008
39. Moving Forward
• This initial thrust puts Ohio in the lead
– New technology development
– Human and knowledge-based assets will be
leveraged to build thousands of algae acres
nationwide and worldwide
– Advanced bio-materials and derivative products
• Worldwide attention will lead to countless
additional opportunities for Ohio
Growing Fuel, Technology & Jobs in Ohio
What will it take for Success?
October 14, 2008
40. Supporting Progress & Clearing Barriers
• Pave the way for rapid implementation
– Supporting research, development and
implementation
– Zoning & permitting
– Property tax freeze for algae farming
– Local, State & Federal regulations
Growing Fuel, Technology & Jobs in Ohio
What will it take for Success?
October 14, 2008
41. Ohio Alternative Energy Standard; Bill 221
Growing Fuel, Technology & Jobs in Ohio
What will it take for Success?
October 14, 2008
42. Status
Growing Fuel, Technology & Jobs in Ohio
October 14, 2008
43. Status
Growing Fuel, Technology & Jobs in Ohio
October 14, 2008
44. Questions
Thank You
Growing Fuel, Technology & Jobs in Ohio
What will it take for Success?
October 14, 2008
