Presentation on the International Conference:„Perspectives of Industrial Investment in the Gulf Cooperation Council Countries“ Ras al Khaimah, UAE 06-08 November 2010 agend: Challenges kerosene, a volatile commodity future fuel expenses the target – set by IATA Solution bio fuels from algae algal cultivation strategies hydrocorbons vs. bio-fuel algae bio fuels offer huge potential for the Gulf Region a novel refinery process Proposal algae plus ppi a promising combination: partnering to complete the value chain

1. Besides Petroleum
The promise of bio fuels to contribute to the solution of current challenges
Presentation on the International Conference:
„Perspectives of Industrial Investment in the Gulf Cooperation Council Countries“
Ras al Khaimah, UAE
06-08 November 2010
Dr. Horst Walther
Pacific Propellants, Inc.
a 2nd
generation biofuel refinery
6015 S Virginia St., Ste. E480
Reno, NV 89502, USA
horst.walther@pcfpp.com
+44 208 1237381

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challenges
 Burning fossil fuels increases atmospheric levels of carbon dioxide.
 Fossil fuels are a finite resource.
 Some industry sectors like aviation cannot switch to solar
electricity.
 Aviation industry accounts for 2% of greenhouse gas emissions due to
human activity.
 By 2050 aviation emissions are expected to almost equal the amount
from automobiles.
 IATA‘s goal is a 25 % reduction of emissions per passenger by 2020.
 Only a few renewable feedstock types offer sustaining economic
potential – e.g. algae.
 Today refining renewable feedstock into bio fuels requires huge
capital investments.
 Today's processes mostly deliver esters not hydrocarbons.
 There is a strong need to derive drop-in fuels from renewable
feedstock.

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challenges - kerosene, a volatile commodity
 Jet fuel price once peaked at 180 USD / bbl. It is likely to
approach this level over the next 5 years again.

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challenges - future fuel expenses
 For airlines fuel expenses represent an ever growing
fraction of their total operating expenses.
CAGR = Compound Annual Growth Rate

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challenges - the target – set by IATA
 IATA targets to reduce CO2 emissions by 50% of 2005 level
during the next 40 years – mostly by bio fuels drop-in.

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solution – bio fuels from algae
productivity figures from the CELLANA consortium on marine algae
Algae are more productive than terrestrial energy crops
*Cellana plant: Kona Pilot Facility, Hawaii
*
 There is the general expectation, that only bio fuels from
algae have the potential to deliver the required volumes.

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solution - algal cultivation strategies
Several types of algae cultivation exist – each has advantages.
 Open systems-typically
outdoor open ponds
 Closed systems-enclosed clear
plastic vessels (bags or tubes)
known as photo bioreactors, or
dark tanks (such as
fermentation tanks)
 Offshore systems-growing
algae in the open ocean-
usually contained in some way
(bags or ropes)
 All established production types still offer several severe
challenges to be considered as stable and competitive.

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solution - kerosene vs. bio-fuel
as petro crude price increases – algae crude price decreases
Source: Booz & Company, Outlook on Climate Change and Aviation
 The development can be boosted considerably provided
adequate investments will be done.

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solution - algae bio fuels …
offer huge potential for the Gulf Region
advantages of the Region:
 pre-requisite for fast growth:
long daily sunshine duration,
 suitable temperatures: high
growth rates expected,
 abundant (sea) water available,
 sufficient space (desert areas),
 financial & intellectual
potential,
 traditional refinery
infrastructure.
 But still considerable financial & intellectual investments
are necessary

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solution – a novel refinery process
 Algae are the fastest growing feedstock
 Depending on strain they contain 5 – 50% lipids.
 But further processing consumes a lot its energy content.
 For harvesting, dewatering, drying & blending innovation is moving fast.
 To derive true hydrocarbons a cheap and efficient process was still
missing.
cultivation
harvesting
dewatering
drying
extraction
refining
blending
 The new pacific propellants bio refinery process promises
to close the refining gap.
9 conversion techniques were known:
 Fermentation of Sugar/Starch Crops
 Fermentation of Lignocellulosic Biomass
 Transesterification of Triglycerides
 Gasification: Formation of Syngas
 Fast Pyrolysis
 Fischer-Tropsch Synthesis
 Hydrogenation
 Conversion of Syngas
 Anaerobic Digestion

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proposal - algae plus ppi
a promising combination
 Pacific propellants, Inc. has developed a unique process to
convert bio fuel feedstock to hydrocarbons.
 The ppi process offers advantages over established processes …
 delivers a fuel very similar to
traditional fuel from fossil sources.
 requires lower of capital costs than
traditional refinery processes.
 is linearly scalable from mobile one
container-units to large plants.
 operates at moderate temperatures
(~ 50 °C) and normal pressure.
 does not require expensive or low
availability materials for input.
 does not produce any hazardous by-
products
 Decentralized plants, e.g. near airports, could capitalize
on the local potential of the region.

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proposal – partnering to complete the value chain
 An existing large scale algae feedstock producer
 Pacific propellants, Inc. and its unique bio refinery process.
Renewable
feedstock
Renewable
feedstock
ppippi
Renewable
jet fuel
Renewable
jet fuel
 For full value chain processing a joint venture of ppi a
large scale algae feedstock producer is preferred.

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questions - comments – suggestions?