120904 algal micro farms
TRANSCRIPT
ALGAL MICRO FARMS, LTD
Climate Independent
Algae Production SystemsBy Brent Brownell
September 2012
Problem
Current raceway technology is inefficient and inadequate to provide for the growing algae market demand.
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Current State The Open Raceway
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Old School producing at15 grams / sq. meter / day
Solution
Efficient, climate independent, adaptable, closed-loop systems that use very little water and energy.
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Future StateALGAL Micro Farm
• 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’ long30” wide24” high
Anaerobic digestion
Nutrasonics Electromagnetism
Septic tank
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Creating Algae Heaven
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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
PTIM
UM
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Current U.S. Algae Market
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
Foods Containing Algae
Food ThickenersThe 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.
ToothpasteWhile 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.
GelatinGelatin 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.
SushiThe 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 ProductsAccording 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
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Go to Market Strategy
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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Scale Up and Capital
• 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
MacroArray
(Phase-1)$300KCapital
PrototypeArray
(Phase-2)$700KCapital
1x Farm(90 Bioreactors)
3x Farm(270 Bioreactors)
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Algae Farming, Design/Build & Services
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Business Model Options
Algae
Farmin
g
• 130 metric tons per month (total)• Spirulina @ $3M/month (current value)• Haematococcus @ $18M/month (current value)
Design/Buil
d
• 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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Financial Projections Summary
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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Spirulina Financials Snapshot
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Haematococcus Financials Snapshot
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Conclusion
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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World Hunger
One billion people will go to bed hungry tonight
In developing countries, one child in four is underweight
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