Originclear, Inc. · OTC:OCLN
Originclear — Originoil — Investor Presentation (February 2012)
39 slides from Originclear's investor presentation, Feb 29, 2012
Slide 1: End to End Algae Production Model: Highlights Of The OriginOil Study
Rev D 29 Feb 2012 End to End Algae Production Model Highlights Of The OriginOil Study 24 February 2012
Slide 2: Important Disclaimer
Important Disclaimer This presentation contains forward-looking statements, including certain projections. In some cases, you can identify forward-looking statements by terms such as “believes,” “expects,” “may,” “will,” “should,” “could,” “intends,” “anticipates,” plans,” “estimates “plans estimate
Slide 3: Study: Algae-Based Fuel Now Profitable
Study: Algae-Based Fuel Now Profitable. Important Note: the OriginOil End to End Algae Production Model referenced here is a preliminary study and numbers are subject to change. It is a theoretical analysis and final results will depend on proving at scale of a number of still-new technologies. Pric
Slide 4: Fuel Production Directly Onsite
Fuel Production Directly Onsite Algae producers can make renewable gasoline and diesel cost- effectively right at their site of production. These fuels are an ideal “insertion point” for refineries, permitting further upgrades (jet fuel etc.) by refiners. End to End Model indicates: Potentia
Slide 5: What's New?
What’s New? Improved production assumptions based on field experience. Implementation of advanced growth techniques to boost productivity productivity. Improved cost numbers for harvesting stage based on experience. Algae may be blended with other feedstocks such as waste. On-site O it ffu
Slide 6: Some Numbers
SOME NUMBERS Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 6
Slide 7: Results – Profit and Loss
Results – Profit and Loss Full model available in confidence to industry partners. Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 7
Slide 8: Results – Resources (per Hectare)
Results – Resources (per Hectare) Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 8
Slide 9: Results – Resources (50 Hectares)
Results – Resources (50 Hectares) Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 9
Slide 10: More Graphs: Growth, Harvesting, Conversion
Growth, Harvesting, Conversion MORE GRAPHS Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 10
Slide 11: Advanced Growth is Key to Profitability…
Advanced Growth is Key to Profitability… Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 11
Slide 12: ...Making Algae Production 8x More Efficient.
...Making Algae Production 8x More Efficient. Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 12
Slide 13: OriginOil Harvesting is 42% More Efficient…
OriginOil Harvesting is 42% More Efficient… Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 13
Slide 14: …While Costs Are Up to ¼ of Competitors.
…While Costs Are Up to ¼ of Competitors. Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 14
Slide 15: Blending Achieves Unit Cost Reduction…
Blending Achieves Unit Cost Reduction… Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 15
Slide 16: ... With Greater Conversion Cost Burdens…
... With Greater Conversion Cost Burdens… Blended All Algae Note change of scale from blended to 100% algae Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 16
Slide 17: ... As Algae is More Conversion Efficient.
... As Algae is More Conversion Efficient. Blended All Algae Much Greater Conversion cost ratio ti for f Blended Bl d d vs. All Algae Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 17
Slide 18: U.S. Algae Demand Takes Off
Based on OriginOil’s Clean Defense Summit presentation on 8 February, 2012 Defense Prioritization and the Biofuels Industry U.S. ALGAE DEMAND TAKES OFF Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 18
Slide 19: Defense Prioritization Driving U.S. Biofuels
Defense Prioritization Driving U.S. Biofuels “The U.S. Department of Defense (DoD) is the nation's largest consumer of energy, with annual oil consumption on par with Sweden. Unlike many of Washington's civilian politicians, the DoD is going beyond lip service to actually taking substantive steps
Slide 20: Accelerating Developments
Accelerating Developments 5 Dec 2011: DoD announces largest-ever biofuels purchase by the government, using a blend of algae and waste oil. US Navy on aggressive national security timetable to convert to 50% alternative fuels by 2020. 8 million barrels per year in jet and marine fuels. DoD, Do
Slide 21: Department of Navy Biofuel Initiatives
Department of Navy Biofuel Initiatives Chris Tindal Director for Operational Energy November 8*, 2011 mag Assistant Secretary of the Na ee (Energy, installations & Environment) =
Slide 22: Navy Biofuel Needs
Navy Biofuel Needs ~ 8,000,000 total Ps and F-76) ~ 80,000 maz r-76 | Biofuel Delivery ~8, rl lg JP | Schedule & Requirements i ~2,000 | 600 500 Bbls 041 1.2 mag Assistant Secretary of the Na 2011 2012 2016 2020 ee (Energy, installations & Environment) =! 3
Slide 23: DON, DOE, & USDA Planned Effort
DON, DOE, & USDA Planned Effort ¢ Utilizing Title Ill of the Defense Production Act — Special provision to develop industrial base and critical technology — Provisions for feedstock, CAPEX/OPEX, and offtake Seeking i here substantially all of the business activities must take place domestically (US
Slide 24: DON, DOE, & USDA Planned Effort
DON, DOE, & USDA Planned Effort * Seeking drop-in biofuels at their maximum blend per applicable spec that function at least as well as petroleum product displaced — e.g. 50:50 HRJ5:JP5 or HRD76:F76 — Can be fuel spec in approval process, e.g. ATJ ¢ EISA 526 compliant bio-derived fuels — Lifecycle G
Slide 25: How OriginOil is Helping
How OriginOil is Helping 8 Dec 2011: OriginOil and DOE announce research agreement to establish industry standards for blending algae with multiple feedstocks. 15 Dec 2011: OriginOil in Joint Venture to develop biorefineries serving U.S. and NATO military requirements for alternative fuels. Th
Slide 26: Where We Stand
Where We Stand Driven by the military, the US is moving ahead with advanced biofuels adoption, despite the lack of a carbon policy (the key driver in other countries). The aviation industry, driven by tough EU mandates, is an emerging player that could diversify program support. Algae is emerg
Slide 27: OriginOil: The Algae Harvesting Technology Company
The Algae Harvesting Technology Company ORIGINOIL Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 27
Slide 28: What is OriginOil?
What is OriginOil? Developed the next generation of essential technology to harvest algae for fuel, chemicals and high-value high value products. Now integrating downstream conversion to crude oil and distillates so algae companies can make fuels directly onsite. Field Field-proven proven with
Slide 29: OriginOil End-to-End Algae Processing
OriginOil’ END-TO-END ALGAE PROCESSING Algae Growth System Optional Boost Phase EXTRACTION CONTROLS | eeeaion | Database Copyright © 2012 OriginOil, Inc. All World Rights Reserved. Patents Pending. Integrated Post-Processing Optional Chemical Fractionation * "algae Crude" sample produced by Evodos"™
Slide 30: Why Algae?
WHY ALGAE? Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 30
Slide 31: Three Generations of Biofuels
Three Generations of Biofuels First Generation – Billions invested in corn, vegetable oils, sugar cane. Major food supply dislocations since 2008. Ethanol subsidies in deep trouble. “Rich farmers.” Second Generation – Billions more still being invested in non-food land crops such as grasses, for
Slide 32: Algal Biofuels: An Engine of Growth
Algal Biofuels: An Engine of Growth The world biofuels market is expected to grow at a CAGR of 12%+ until 2017. $105.4 billion in forecasted annual revenue by 2018. Commercial Timeline of Algal Biofuels 8 billion 6 Billion gallons/yr Gallons 1 billion 1 Billion gallons/yr Gallons 100 million 100
Slide 33: The Advanced Biofuels Mandate
The Advanced Biofuels Mandate Algae, the primary advanced biofuel, will benefit from U.S. mandated standards: o Ethanol fully replaced by 2022. o Fastest growth among all biofuels biofuels. Source: http://www.epa.gov/oms/renewablefuels/420f09023.htm Algae Production Model Rev 2/25/12 © 2012 Origin
Slide 34: Scaling Up Algae
SCALING UP ALGAE Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 34
Slide 35: Commercializing in Australia
Commercializing in Australia Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 35
Slide 36: Aggressive Scale-Up Process
Aggressive Scale-Up Process Demonstration Plant (500-Hectare +) JCU Research 9 Tarong Energy Facility Display Plant Pilot Plant (5,000 m2) (1-Hectare) (30-90 Hectare) Algae Production Model Rev 2/25/12 © 2012 OriginOil, Inc. 36
Slide 37: OriginOil Adding Reference Sites Globally
OriginOil Adding Reference Sites Globally 3 February 2012: Algae Producer Aquaviridis and OriginOil Announce Joint Commercial Agreement Development of dry-land aquaculture could transform desert farm economies of the American Southwest and Mexico Aquaviridis to immediately scale up to ten acre
Slide 38: In Conclusion…
In Conclusion… Algae production is being scaled up as technology barriers are overcome. Algae producers will soon be able to produce fuel molecules right at the point of production. Feedstock standards are being developed for every level of production, processing and blending for final use use
Slide 39: A Note on Fuel Conversion Technology
A Note on Fuel Conversion Technology Technology Note CRI’s IH2 Process was adopted for this model. (IH2: Integrated Hydropyrolysis + Hydroconversion) (The IH2 process converts virtually any type of non-food biomass feedstock—such as wood, agricultural residues, algae, and aquatic plants. High-qualit