Algae in the Advanced Bioeconomy. David Anton, COO June Page 1 Cellana 2015

Transcription

1 Algae in the Advanced Bioeconomy David Anton, COO June 2015 Page 1 Cellana 2015 Cellana Inc. 2015

2 Legal Disclaimers This presentation contains certain "forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), including financial projections and projections of market size and pricing, as well as discussions of strategy, each of which involve risks and uncertainties. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company or industry to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, potential delays in regulatory approvals of the Company s projects and products, potential differences between estimated costs of production and actual costs of production, potential delays or increased costs of securing additional corporate and project financing, and other factors described more fully in the Company s document entitled Risk Factors (February 2015)" This offering material and any other information provided or made available does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there by any sale of, interests in any jurisdictions where, or to any person to whom, such offer, solicitation or sale is unlawful. This presentation include trademarks owned by us or others. Cellana, ALDUO, ReNew, the Cellana logo, the ReNew logos, the ALDUO logo, and all other Cellana product and service names are trademarks of Cellana in the United States and in other selected countries. Page 2 Cellana 2015

3 Why Algae? A unique raw material Produced on non-arable land Very low fresh water consumption Combines feedstock and conversion to products into a single process. Page 3 Cellana 2015

4 Cellana Mission Cellana s mission is to develop and operate highly profitable commercial scale algae facilities and to establish Cellana as a leading source of algae-based products serving the human nutrition (Omega-3s, functional foods), cosmetics, animal nutrition, and biofuel markets Page 4 Cellana 2015

5 Cellana s World-Class Partners Since Inception invested in R&D, facilities, production, product trials ALDUO technology fielded Company formed; in-license to ALDUO technology Pilot Facility Production (10+MT) ($25MM+) Ongoing Demonstration Facility Production (13+MT) CEROS Funding ($700K) Shell JV Funding ($70MM+) Ongoing DOE / USDA Funding ($15MM+) ABY Page 5 Cellana 2015

6 Cellana / Saltwater Algae: A Paradigm Shift Highest-yielding crop on earth High-protein, high oil content Lowest carbon, fresh water, & arable land footprints Unique ability to cultivate diverse algae at scale (not just extremophiles) Validated, Modular, Commercial- Ready Platform Multi-product model; near-term product revenue at hand Managed cash burn through nondilutive financing Page 6 Cellana 2015

7 Highest Biomass, Oil, Protein Yields on Earth: Doubles each day; can use all of biomass vs. just seeds/oilseeds/juice Plant Average Biomass Yields (MT / ha / yr) Comparison of Biofuel Feedstock Crops Oil Content (% dry mass) Sugar / Starch Content (% dry mass) Energy Content of Oil / Sugar / Starch (boe / 1000ha / day) Protein Content (% dry mass) Microalgae % % %+ Soy/Soy oil % 18% % Rapeseed 3 40% NA 22 23% Palm/Palm oil 19 20% NA 63 15% Jatropha % NA % Corn % 75% % Sugarcane NA 12-16% % Page 7 Cellana 2015

8 Algae Considerations Industry is just establishing commercial scale Algae is an agricultural crop Strategies must be employed to protect the algae- crop protection Areal not volumetric productivity is a key Capital cost per area must be minimized Energy is a key variable for cost and LCA Page 8 Cellana 2015

9 Intensive, Efficient Algae Production at the Kona Demonstration Facility (KDF) in Hawaii Aerial View of KDF Algal oils Protein-rich algal meal 6-acre site in Kona, Hawaii ~$20MM replacement cost; ~1MM liter large-scale cultivation capacity Produced over 13 tons of microalgae since 2010 for testing / biz dev purposes 10+ novel strains grown at industrial scale to date Commercially significant biomass/oil yields ( g/m 2 /day biomass yields) Page 9 Cellana 2015

10 Proprietary ALDUO Technology Enables Cost Effective Productivity : Semi-sterile PBRs (in continuous mode) Inoculate Open Ponds (operated in batch mode) High 100% PBRs Cost <50% PBRs / >50% Open Ponds Low 100% Open Ponds Low Risk of Contamination High Covered by US Patents 7,770,322 & 5,541,056; similar Patents/Patents pending in RoW Page 10 Cellana 2015

11 Production Flexibility: Multiple Algae produced at Commercial Scale KDF Can Rapidly Move a Strain From Lab to Production Algal Strains Produced at Large Scale by Cellana Duration Quantity Produced (kg) MT13A Isochrysis sp. May June C088 Tetraselmis sp. July Sept C323 Staurosira sp. Sept Dec 2008 & Oct 2009 May 2011 >5,000 Ch60 Chaetoceros sp. Dec 2007 Feb C046 Desmodesmus sp. Jun Aug, ,500 C018 Nannochloropsis sp. Dec KA19 Nannochloropsis sp. Mar Aug, ,600 C870 Pavlova sp. Oct Dec, KA33 Tetraselmis sp. Oct Dec, KA32 Nannochloropsis sp. Feb Sept, C018 Nannochloropsis sp. Sept 2013 Present >1,000 Page 11 Cellana 2015

12 Multi-Product Business Model: up to 4 Products From Each Strain Via ALDUO + Conventional Upstream/Downstream Processes Off-the-shelf ag inputs + sunlight + CO 2 + ALDUO = Existing or new & improved separation/extraction techniques = + + (aquaculture feed) Page 12 Cellana 2015

13 Commercial-Scale Off-Take Agreement with Neste Oil Off-Take Agreement for algae oil announced June 2013 Neste Oil is the largest refiner of renewable diesel in the world Multi-year off-take agreement Commercial-scale quantities of algae oil (up to 100,000 metric tons) Contingencies for Cellana production capacity, EU/US sustainability criteria, and other factors Non-Exclusive for both parties Samples have shown that Cellana is able to produce algae oil suitable for renewable fuel production by Neste Oil. The off-take agreement with Cellana allows us access to commercial-scale volumes of cost-competitive algae oil in the future. Neste Oil's renewable fuel plant in Rotterdam in the Netherlands was commissioned in Neste Oil started up the world's largest renewable diesel refinery in Singapore in November Page 13 Cellana 2015

14 Financial Dynamics of the Biorefinery Page 14 Page 14 Cellana 2015 Cellana 2015

15 Cellana s Biorefinery Business Model Builds on a Foundation of Biofuel Research to Address Additional Valuable Products Omega-3 nutritional oils and high-value aquaculture / animal feed products are an extension of Cellana's core competency - screening, developing, and producing algae biofuel feedstock. = oil separation $4B Omega-3 nutritional oils market 1 2 $1T+ fuels and energy markets $20B+ aquaculture feed / fishmeal market $300B+ Animal feed markets Page 15 Cellana 2015

16 Flexible Biorefinery Production / Revenue Model Bioproducts Generated from the Use of the Entire Algae Biomass kg Total per MT* (11% yield loss) 121kg Biocrude Oil 62kg Omega-3 Oil (35% $100/bbl, $0.68/kg (fossil petroleum px $100/kg (discount to Martek DHA wholesale px benchmark) $6,928 per MT (dry weight) $82 $6,138 = oil separation 708kg Algae Meal (Residual Proteins, Sugars, Minerals, Lipids, & $1.00/kg (premium to soymeal px benchmark; discount to fishmeal px benchmark) $708 * Reflects recovery based on initial whole algae fraction of 6% Omega-3 oils, 25% Biocrude oil, 69% Algae Meal (Protein/Sugars/Minerals/Lipids/Micronutrients), and 11% total yield loss after two separations Page 16 Cellana 2015

17 Highly Profitable Production of Algae Bioproducts Projected Revenue & Costs per MT for 88-ha. Commercial-Scale Facility in USA, 2016 Estimated 46% Gross Margin and 62% Cash Margin at current yields / costs (Higher margins / lower unit costs at larger scale and over time) $6,928 per MT Estimated: Gross Margin 46% Cash Margin 62% $3,712 per MT depreciation Omega-3 Oil $100 per kg (35% conc. DHA/EPA) Algae Meal $1.00 per kg Biocrude Oil $100 per bbl, $0.68 per kg cash cost Revenue Production cost Page 17 Cellana 2015

18 Modular Growth Enables Scale-Up of Technology to Commercial Facilities Other target sites around the globe identified generally lower cost than in USA Laboratory Research Pilot Facility Kona Demonstration Facility (2.5 hectares) N. America, Phase 1 (88 hectares; $83MM capex; 2016 Production: ~4,600 MT) N. America, Phase 2 (additional 88 hectares for 176 hectares total; $84MM additional capex; 2019 Production: ~11,000 MT) Page 18 Cellana 2015

19 Scaling of Algae Biomass Industry Easy as A, B, C Three-product model as a bridge to a two-product model; profits at every stage Revenue / Kg Production Cost / Kg $4 $ $3 $2 A. Biorefineries with High-Value Anchor Product(s) $ B. Bolt-On Expansions for Fuel + Feed $ $ $ $ C. Standalone Biorefineries for Fuel + Feed $ Biomass Yield MT / ha / yr $1 $ 40 Crude Oil Production Production cost Algae biomass yield Food/feed/fuel prices 1 billion gpy 1-2 billion gpy 10+ billions gpy > $2/kg $2/kg $1/kg < 70MT/yr > 50MT/yr > 60MT/yr Low Medium High Page 19 Page 19 Cellana 2015 Cellana 2015

20 Cellana Algae is a highly efficient platform for both accumulating feedstock and conversion to products Cellana s platform is moving toward near-term commercialization And the long-term potential is huge and achievable Page 20 Cellana 2015

21 Thank You For further information please visit or contact: David Anton Chief Operating Officer (650) Page 21 Cellana 2015