120904 algal micro farms
TRANSCRIPT
Climate Independent
Algae Production Systems
September 2012
- Proprietary and Confidential - 1
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
Efficient, climate independent, adaptable, closed-
loop systems that use very little water and energy.
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• Scalable Farms (45’ Width x 140’ Length)
• Multi-function Harvester
• Nutrient Injection System
• Recycled Water Purification
• Climate Independent
• Generates Electricity
• Bioreactor “cell”
• 200 Gallon Capacity
• Modular Design
Closed-loop, controlled bioreactor system
New School producing at
175 grams / sq. meter / day
6’ long
30” wide
24” high
Anaerobic
digestion
Nutrasonics
Electromagnetism
Septic
tank
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Algal (singular) vs. Algae (plural)
Microscopic Plants that Grow Without Roots in Water
Light
Temp
Water
Nutrient
CO2 FlowTH
E O
PT
IMU
M
Food and Food
Supplements
Nutraceuticals
/ Foods
Pharmaceuticals
$68B Annual Demand
AMF’s Value Proposition
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
$41B
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Estimates based on
USDA and DOC data
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 semi-
solid 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.
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
8
Expand deployment using Non-Governmental Organizations
Broaden into global market utilizing Certified Distributors
Establish domestic market first
Algae sales to generate initial income
Focus on nutraceuticals, pharmaceuticals and food
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• 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
Macro
Array(Phase-1)
$300K
Capital
Prototype
Array(Phase-2)
$700K
Capital
1x Farm(90 Bioreactors)
3x Farm(270 Bioreactors)
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Algae Farming, Design/Build & Services
AlgaeFarming
• 130 metric tons per month (total)
• Spirulina @ $3M/month (current value)
• Haematococcus @ $18M/month (current value)
Design/Build
• 1x Farm, 10MT/month, $1.8M inv >>> $2.5M/year rev
• 3x Farm, 30MT/month, $3M inv >>> $7.9M/year rev
• 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 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
OutputMonthly 1.1 10 30
Spirulina1 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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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
OutputMonthly 1.1 4.4 12
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
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
- Proprietary and Confidential - 16
One billion people will go to bed
hungry tonight
In developing countries, one
child in four is underweight
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Jeffrey Scott
President & Founder
Chandler, Arizona 85224
+1-303-589-7580
algalmicrofarms.com
Brenton Brownell
VP Marketing, Sales and Corporate Development
Tucson, Arizona 85749
+1-520-975-7476
algalmicrofarms.com
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