Climate Independent Algae Production Systems

By Brent Brownell
September 2012

Current raceway technology is inefficient and inadequate to provide for the growing algae market demand.

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Old School producing at 15 grams / sq. meter / day

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Efficient, climate independent, adaptable, closedloop systems that use very little water and energy.

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6 long 30 wide 24 high

Septic tank

Anaerobic digestion

Closed-loop, controlled bioreactor system

Nutrasonics Electromagnetism

New School producing at 175 grams / sq. meter / day

Bioreactor cell 200 Gallon Capacity Modular Design

Scalable Farms (45 Width x 140 Length) Multi-function Harvester Nutrient Injection System Recycled Water Purification Climate Independent Generates Electricity
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Light Temp Water Nutrient CO2 Flow

Algal (singular) vs. Algae (plural) Microscopic Plants that Grow Without Roots in Water
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THE OPTIMUM

$68B Annual Demand

$41B

Food and Food Supplements

AMFs Value Proposition

Nutraceuticals / Foods Supplying systems that grow algae In diverse geographical and demographic locations Through self sufficient, closed-loop growth systems That generate energy, recycle water and produce nutrients

$7B

$20B

Pharmaceuticals

Estimates based on USDA and DOC data

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Sushi The green paper-like substance used to wrap sushi rolls is algae. This is a special "leafy" variety of algae grown on farms in Asia and shipped throughout the world. The leafy algae is grown on strings then dried in the sun. This type of algae is especially high in vitamins and nutrients.

Dairy Products According to the University of California at Los Angeles, a type of algae called carrageenan is commonly added to dairy products to give them a denser consistency. The most common algae containing products are sour cream, chocolate milk and cheese

Food Thickeners The Hawaii Department of Education says algae is often added to liquids to make them thicker. For example, algae is put in shakes and malts to thicken them. It is also added to mayonnaise to prevent it from becoming runny. Alginic acid contained in algae acts as a stabilizer or emulsifier.

Toothpaste While toothpaste is not a food, it is a safely ingestible substance that contains algae. Without algae, toothpaste would be a runny liquid. Algae makes toothpaste into a semisolid that then dissolves with the brushing action of cleaning teeth.

Gelatin Gelatin contains a type of algae called agar. It can solidify just about anything that comes in a liquid form. Agar was first used in China in the 17th century and is now found in hundreds of foods sold in grocery stores, such as pie crusts, pumpkin pie filling and flavored gelatin.

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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Macro Array
(Phase-1) $300K Capital

Prototype Array
(Phase-2) $700K Capital

1x Farm
(90 Bioreactors)

3x Farm
(270 Bioreactors)

6 bioreactors prove proof of concept Basic system

40 bioreactors Integrate features Begin producing algae for profit

Stand alone Fully operational Demonstration farm

Mid-size farm Increase algae growth

Algae Farming, Design/Build & Services

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Algae Farming

130 metric tons per month (total) Spirulina @ $3M/month (current value) Haematococcus @ $18M/month (current value)

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

Services

On-going Licensure, Maintenance, Support and Brokerage 3% of product sold

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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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ITEM

UoM

Prototype

1x Farm
$1,800,000 $37,500 10 $250,000 8.5 $2,550,000

3x Farm
$3,000,000 $85,000 30 $750,000 4.5 $7,980,000

System Cost One time $492,000 Operating Cost Monthly $6,100 Metric Tonne Monthly 1.1 Output Sales/month $27,500 Spirulina 1 ROI In Months 23.0 Revenues 12 Month ROI Basis $256,800
1

Spirulina ROI.

Price / Metric Tonne MONTH

$25,000 12

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ITEM

UoM

Prototype
$492,000 $6,100 1.1 $165,000 3.1 $1,906,800 $150,000 12

1x Farm
$1,800,000 $37,500 4.4 $660,000 2.9 $7,470,000

3x Farm
$3,000,000 $85,000 12 $1,800,000 1.7 $20,580,000

System Cost One time Operating Cost Monthly Metric Tonne Monthly Output Sales/month Haematococcus2 ROI In Months Revenue 12 Month ROI Basis
2

Haematococcus Price / Metric Tonne ROI. MONTH

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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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One billion people will go to bed hungry tonight

In developing countries, one child in four is underweight

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