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MAKING ALGAE EASY.

An introduction to Sasaran Biofuels Sdn Bhd

• Group Overview• Our Mission• Group Activities

• Biomac• Sasaran Biofuel• Bio Herbal Extracts

• The Site – Lab, Factory and Ponds• InPremia• Our Algae Lab• Pilot Ponds and PBR• An example of a system• The Algatech Approach• Conclusion

SUMMARYGROUP OVERVIEW

GROUP OVERVIEW

Algaetech Sdn Bhd (“Algaetech”) was incorporated in Malaysia in 2004 as an investment holding company with group activities in the micro algae research, development, consultancy,

production and marketing for renewable energy and high value products ofanti-oxidants (better known as functional food).

Research and development of algae for biofuel

Cultivation of haematococcus pluvialis for production of astaxanthin

ALGAETECH GROUP COMPRISES

Consultancy of micro algae development for renewable energyand high value products from flue gas

GROUP OVERVIEW

Algaetech was founded to :

Acquire specific intellectual property, and exclusive microalgae cultivation technology for commercial use.

Establish a fully integrated cultivation operation in Malaysia and the region.

Establish quality products from microalgae for the global market.

Establish joint ventures as may be required to advance Algaetech's mission. Engage in other such beneficial activities related to its existing plan that the Group determines will benefit its overall business strategy

“ To become the leading, innovative and advance algae researchand development centre and the largest producer of

algae company in Asia “

MISSION STATEMENT

GROUP ACTIVITIES

Project Objectives :

To build a commercial algae production pond using the latest and advance technology in Malaysia;

To conduct research and development on the Biological and Chemical Engineering of microalgae production systems for the Biodiesel production and processing in Malaysia;

To build and set up a Biodiesel processing plant on the extraction and production of biodiesel from algae;

To patent the IP of the improved algae production and the extraction of Crude Algae Oil and processed biodiesel from algae;

To market the technology, know-how and the product (algae-based products and biodiesel) locally and internationally.

The pioneer in R&D and Pre-Commercialisation of algae for biodiesel in Malaysia.

The project received a Technofund Grant from the Malaysian Ministry of

Science, Technology and Innovation totaling RM2.0 million (US$600k).

GROUP ACTIVITIES

Project Milestone

Milestone Activities Output Scheduled Completion

dateSigning agreement on technology transfer.

Signing of agreement on technology transfer with the patent owner.

Completed 28 November 2007

Suitable algae identified Isolation, screening and characterization of microalgae

Completed 1st September 2008

Physiology/biochemistry of algae understood

Study of physiology and biochemistry for algae / chemical and biochemical testes

In Progress February 2009

Enzyme(s) isolated Isolation of enzyme which catalyzes a key metabolic steps in the synthesis of oil in algae

In Progress March 2009

Large scale production of algae in open ponds accomplish

Carry out performance evaluation, sample analysis and data collection

In Progress May 2009

GROUP ACTIVITIES

• Sasaran provides project management, technology transfer and technical expertise to develop a solution to minimize and mitigate CO2 emissions through the diversion of the CO2 to open algal ponds and enclosed photobioractors as algal propagation technologies to consume CO2 waste streams.

• The company is presently consulting a listed company from Indonesia to address the technology know-how and implementation of microalgae development from the flue gas of the Group’s power plants.

GROUP ACTIVITIES

Utilisation of power plant resources for growing selected microalgae at a low energy cost for valuable products and

bio-fuels while providing CO2 Sequestering

• Low cost algae agriculture • All year algae production • Low cost flue gas, CO2• Low cost water source• Residual energy• Arid land

Smoke fan Ash collector

Flue gasMicroalgae pond

GROUP ACTIVITIES

• The global microalgae market is a multi billion industry and is rapidly expanding.

• The farming and processing will be undertaken utilizing Algaetech's new and proprietary technology, while exploiting existing resources available in Malaysia

• BHE will be establishing its plant in TPM. The plant is a sophisticated, highly secure and fully operational state of the art research facility. Testing has commenced on the proprietary technology and has been proven successful.

• BHE believes that it can supply the global market with a superior quality microalgae at lower cost. Additionally, by virtue of the cultivation method, BHE can also contribute to preserving environmental quality and cleanliness.

Commercialisation of haematococcus pluvialis for production of astaxanthin, the first in Malaysia and South

East Asia.

The project is partly funded by Malaysian Technology Development Corporation (MTDC) for a US$1.0 million

grant and scheduled to commence in March 2009.

THE SITE

Factory and Lab

Pond One

Pond Two

STATE OF THE ART LABORATORY

The Algaetech lab is culturing different types of strains and is being monitored closely by a group of young researchers and algae consultants. The main objective

is to optimize the growth under “tropical” environment. With conventional propagation methodology, coupled with raceway ponds, The Biofence

Photobioractor in collaboration with Ingrepro (Netherlands) and Vericon (Scotland), Algaetech’s facilities will provide therequired R&D for the right strains.

STATE OF THE ART LABORATORY

STATE OF THE ART LABORATORY

CULTURING ACTIVITIES

PILOT POND UNDER CONSTRUCTION

PROTOTYPE PHOTOBIORECATOR

A TYPICAL IDEA FOR CO2 SEQUESTERING AND ALGAE PRODUCTION

THE BASICS

CHEAP, CHEAPER, CHEAPEST CO2

PLENTY OF SUNLIGHT (NOT TOO MUCH)

PROTOTYPE PHOTOBIORECATOR

Member Countries Total Area

Population 2004* GDP 2004

Merchandise Trade 2004**

  (Sq. Km) (Thousand)(Million

US$) (Million US$)

Brunei Darussalam

5,765

373

5,181

6,585

Cambodia 181,035

13,589 4,517⅟

5,414

Indonesia

1,890,754

216,410 258,266

122,339

Lao PDR 236,800

5,760 2,439⅟ 1,004²/

Malaysia 330,257

25,580

117,776 221,471²/

Myanmar 676,577

54,745 10,463⅟ 5,034²/

Philippines 300,000

82,664

86,407 76,940²/

Singapore

697

4,240 106,884

363,431

Thailand 513,254

64,469

163,525

190,446

Viet Nam 330,363

82,022

45,277

55,261

ASEAN 4,465,502 549,852 800,735 1,047,927 Sources : Finance and Macroeconomic Surveillance Unit (FMSU) Database for GDP and Merchandise trade (BOP basis)

ASEAN Statistical Pocketbook 2005 for Total Area and Population

Notes: *) 2004 Figures: as proxies, the figures were computed based on the average rate of growth of 1995-2000,

for Brunei Darussalam and Myanmar, (1996-2000 for Lao PDR); and based on of national projection for

Cambodia, Indonesia, Malaysia, Philippines, Singapore and Viet Nam.

Thailand based on growth rate 2000-2002

**) Total exports and imports of goods, BOP basis

1/ Rough estimate using GDP real growth and inflation as a proxy to GDP deflator

2/ Rough estimate based on the available data until Q3, using simple extrapolation method

ASEAN ROADMAP FOR RENEWABLE ENERGY

ALGAE FOR

ENERGY

RESEARCH AND

DEVELOPMENTS

CULTIVATION (LAND)

FINANCING

ENERGY USER

SELF SUSTAINI

NG

The Varicon-Aqua Ventures

• Malaysia to be the algae hub for Asia.• One stop technology centre for algae

industry• Proven technologies-over 62 units PBR

around the globe.• Asian-European technology.• Quick delivery period

AFFILIATES & ASSOCIATES

CONCLUSION

In Summary, :

Developed exclusive proprietary microalgae cultivation technology capable of providing a clear market advantage in the global microalgae cultivation industry.

Positioned the Group to establish the only fully integrated microalgae refinery operation in Asia that has been proven to extract bio-fuels and high value products.

Positioned the Group to eventually capitalize and take advantage of the current trend in fuel prices by offering our own bio-fuels package coupled with high value products.

Positioned the Group to supply the global market with a superior quality microalgae products.

Inspired to contribute to preserving environmental quality and cleanliness.

Introducing Varicon Aqua Solutions Ltd• Company formed in October 2005 by J.McDonald, D.Guest

• Part of a group of companies, Varicon (3D) Drives Ltd, Computec Control & Automation (A Division Of Varicon (3D) Drives Ltd, Specialising in Power Electronics and PLC. Mechanical Engineering

• 21 employees within group. Varicon Aqua Solutions specialise in providing algae production expertise across a very diverse range of production and research sectors, nationally and internationally.

• Designing, manufacturing, exporting and commissioning the BioFence PBR globally, which; significantly differentiates Varicon Aqua from many other ‘algae technology’ suppliers in the current market, Including design, manufacturing & installation of data acquisition and process control systems SCADA, HMI etc.

• Establishing distribution of Varicon products and services through authorised outlets in Norway, the Netherlands, France, Australia NZ and Tasmania, east and west coast USA. NOW ASIA VIA NEW JV CO SASARAN≡VARICONAQU

BioFences Around the Globe.60 operational units worldwide.

Standard test rig capacities from: 400L to 2400L. Larger and bespoke systems supplied to order.

Activity• Expanding sales of the BioFence throughout the UK, Ireland, throughout Norway, Sweden,

Denmark, Iceland, Greece, Spain, the Netherlands, Singapore, Malaysia, throughout the USA • (2008 Sapphire Energy, san Diego Utilise BioFence) • Cosmetceutical project in Iceland 2007 and expanded 2008 at Blue Lagoon• (Shell Oil, Algae to fuel project Utilise BioFences 2007 2008) • ( 2008 Kuehnle Agrosystems Hawaii utilise BioFences for DARPA program) 2009 additional

installation for production of aqua-feeds (Cargil) .• 3 BioFences installations complete at Cal-Poly Dec 2008. • BioFences delivered Malaysia, 2 contracts, installations complete Jan 2009. • BioFence delivered Kentucky University, installation Jan 2009• BioFence delivered USFW, West Virginia, installation Jan 2009• Completed UK power Utility installation on oil fired power station for CO2 abatement R&D. Value = 350K EU.• 1 million US GPA algae Biodiesel/ valorisation project , Montana 2009.under construction• Value = $35 Million USD• Agri-Aqua biomass production in the Netherlands. Additives market• Astaxanthin project in Texas under contract for install 2009 • Collaborating on several FP7 research proposals and projects.• Ongoing project management, Including R&D support for existing customers.• Industrial PBR development via SASARAN≡VARICONAQUA in Asia, including project

management of extensive algae biomass production in Thailand and Malaysia.

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Live algae productionTHE Varicon BIOFENCE

WHAT IS THE BIOFENCE?1. A HIGHLY EFFICIENT AND RELIABLE METHOD FOR

PRODUCING HIGH DENSITY MONOCULTURES OF MARINE AND FRESHWATER ALGAE.

WHY CHOOSE A BIOFENCE?2. TYPICALLY OPERATES AT DENSITIES OF 10 TO 15

TIMES THAT OF CONVENTIONAL CULTURE METHODS

3. HIGHLY PRODUCTIVE RELATIVE TO CONVENTIONAL PRODUCTION METHODS.

4. DRAMATICALY REDUCES LABOUR REQUIREMENTS AND ELIMINATES HANDLING PROBLEMS

5. CAN BE OPERATED FOR PROLONGED PERIODS WITHOUT CULTURES CRASHING FACILITATED BY PATENTED TUBE SELF CLEANING MECHANISM

6. IT IS A CLOSED, CONTOLLED SYSTEM, ENVORONMENTAL PARAMETERS ARE AUTOMATICALLY CONTROLLED

7. SYSTEM EASILY EXPANDED TO MEET INCREASED PRODUCTION REQUIREMENTS

ProductivityBag Reactor vs Varicon BioFence

T BAG SYSTEM Nannochloropsis

Winter production or artificial light Summer production, natural daylight% harvest rate/day mean cell density % harvest rate/day mean cell density16% 20 million/ml 24% 25 million/mlVARICON BIOFENCE. NannochloropsisWinter production or artificial light Summer production, natural daylight% harvest rate/day mean cell density % harvest rate/day mean cell density25% 120 million/ml 35% >600 million/ml

Note: This is on the basis of a photoautotrophic process

The Varicon BioFences in Operation

SHELL OIL FUEL PROJECT

EARTH CENTRE UK

CO2 CAPTURE PROJECT UK

CONSERVATION PROJECT USA

The Varicon BioFences in OperationBioFence in Montana Oceanic Institute Ohau

Industrial Pilot BioFence

THE Varicon BIOFENCES IN OPERATIONBLUE LAGOON ICELAND

US FISHERIES AND WILDLIFE FISH FARM LA CORUNA

BRITISH NUCLEAR FULES LTD

BIOFENCES IN OPERATION

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HAWAII KUEHNLE AGROSYSTEMSINGREPRO NETHERLANDS

UK POWER UTILITY BRITISH NUCLEAR FULES LTD

2” N

B

V15aDrain

T11

G1

V12a

Header tank

F1a

F2a

V17a

C1a

Holdingtank

F5a

T2

T5aT4a T6a

T7a

T8a

Fence A only

T3aV7a

V6a

V5a

V4a

V3

V8a

V9a

V11a

V10a

HX1a

HX2aPmp2a

Pmp3a

V13 V14a

3” N

B

2” NB

2” NB

2” NB

2” N

B

2” N

B

½”

NB

½” NB

2” NB

V16a

Opt1apH1a

CV1a

½” NB

T9a

Nutrient solution

¼” NB

Common systems

½”

NB

½” NB overflow

½” NB

½” NB

½” NBvent

Fill

Injection control unit

½”

NB

CO2 c

ylin

ders

PRV1

Minimumhead to be specified

½”

NB

Watertreatment

V18a

V19 N

RV2N

RV3

Inlet 300mm minimum height above overflow

Common system

LQS1a

Ambient conditions

PAR1

T1

W13”

NB

CV2

Steam flow in

Condensate out

Drain

Air vent

Water

Overflow

Hot water tank

½” NB

Dessicator Manual valve

U-tube to stop ingress of air

F3a

01/05/2023 P&ID Mod 13

Dessicator

Pmp4a

F4a

INDUSTRIAL PBR CONCEPT

THE ALGAEWHAT ARE MICRO-ALGAE?• A DIVERSE RANGE OF PHOTOSYNTHETIC PLANTS COMPRISING 9 THALOID PHYLA, CHLOROPHYTA, EUGLENOPHYTA, PHAEOPHYTA, CHRYSOPHYTA,

PYRROPHYTA, RHODOPHYTA, CYANOPHYTA, CRYPTOPHYTA, CHLOROMONADOPHYTA.

• TIPICALLY ALL RETAIN A CUTICULAR CELL WALL COMPRISING MAINLY CELLULOSE.

• ALL SPECIES IN THE NATURAL ENVIRONMENT UTILISE LIGHT (PHOTONS) DISSOLVED CARBON DIOXIDE, & NITRATE, PHOSPHATES, TRACE ELEMENTS VITAMINS AND MINERALS FOR GROWTH.

• DIATOMACIOUS SPECIES REQUIRE AN ADDITIONAL SUBSTRATE IN THE FORM OF SOLUABLE METASILICATE, THESE SPECIES VARY INSOFAR AS THE

EXOSKELETON COMPRISES MAINLY SILICACIOUS COMPLEXES.

• SELECTED STRAINS CONTAINING UP TO 40-50% LIPID ON A DRY WEIGHT BASIS.

• 245% PRODUCTION PER DAY POSSIBLE WITH MIXOTROPHIC APPROACH

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CELL MICROGRAPHS

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Microalgal Components/extracts• COLOURANTS AND ANTIOXIDANTS: XANTHOPHYLLS LUTEIN, β CAROTENE, VITAMINS

• FATTY ACIDS: SATURATED AND POLYUNSATURATED, TRIGLYCERIDES EFA’S

• ENZYMES: CELLULASE, SUPEROXIDE DISMUTASE,PHOSPHOGLYCERATE KINASE, LUCERIFASE & LUCIFERIN, RESTRICTION ENZYMES.

• SOLUBLE PROTEINS: CARBONIC ANHYDRASE, comprising 236 amino acids

• POLYMERS: POLYSACCHARIDES, STARCH, POLY β HYDROXYBUTYRIC ACID

• SPECIAL PRODUCTS: PEPTIDES, TOXINS, STEROLS, AMINOACIDS. LUBRICANTS

• FUELS: BIOETHANOL, BIOHYDROGEN, BIODIESEL, GREEN DIESEL

RANGE OF APLICATIONS

• AQUACULTURE, as feed for fish, shellfish and crustacea

• PHARMACEUTICALS• NEUTRACEUTICALS• BIO-REMEDIATION• CARBON SEQUESTRATION / ABATEMENT• BIO-FUELS• DRUG DELIVERY.

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Relative Composition of Algae Species

Microalgal Anti-oxidant micrographsMicroalgae Biotechnology• COLOURANTS AND ANTIOXIDANTS: • XANTHOPHYLLS, LUTEIN, β CAROTENE, VITAMINS

Lycopene Lutein Zeaxanthin

• Lutein is one of 600 naturally occurring fat-soluble antioxidant Carotenoid biochemicals• Dunalliela salina, an extremophile can contain up to 95% of total carotenoids asβ carotene.

(Jiménez and Pick, 1994)

• The natural β carotene market is estimated to be in the order of 100Mt/A and is valued at $750/kg (Pulz, 2001)

Fatty Acids

Algae Lipid YieldsTetraselmis chuii Skeletonnema costatum

Nannochloropsis sp. Chlorella vulgaris Botryococcus braunii

Pavlova lutheriProtein

Carbohydrates

Lipids

Other

Source: Brown et al., 1991 and 1992; Singh and Kumar 1992

Low-Tech Microalgal Production

EvolvingValue Chain

• As yet many unidentified functional components.

• Current extraction technologies apply.

• Huge scope for substitution or augmentation of terrestrial sources

• Availability and primary production know-how on the increase

Natural Strains or GMO?Enzyme production

Sapphire Energyhttp://www.greencrudeproduction.com

Though recent funding streams, and ongoing research is being carried out, into strain selection, some of the fastest growing projects are using GMO.

As has been pointed out:

“Genetic and metabolic engineering are likely to have the greatest impact on improving the economics of production of microalgal diesel” (Chisti, 2007)

“Transgenics are imperative for biofuel crops” (Gressel, 2008)

PBRs provide containment for GMO algae.

Strains of phaeodactylum genetically modified to excrete cellulase into solution during primary production

Varicon BioFence supports Sapphire R&D for Cellulase production

The Algae Biofuel Process

Storage

Lipid classanalysis

NutrientRecovery

UpgradingFuels

Flocculants

Temperature

Time

pH

Filter

Light

Temperature

Time

Nutrients

SpeciesDewater Cell

Lysis

TotalLipids

WasteWater

CellDebris

Press

Sonic

Grinding

Osmotic

Freeze

Lipid

Protein

Carb.

Silica

CHNS-O

Characterise

Protein/Nucleic Acids

High Value Nutraceuticals

Aerobic/Anaerobic Decay

Methane

Oxygenated Compounds

Phospholipids

Nutrients

Flocculants

FeedStock

Bioreactor

Chain lengthdistribution

Decarboxylation

Example of Research Initiative

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Indicative Production Costs

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Indicative Market Values.

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Current estimated worldwide production of algae: 7.2 million Tons/paEstimated value: $6.8 billion USD. (Macro & Micro algae)

Is current technology up to the challenge?

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BioFence Test Rig BNFL

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______________Aquaculture, Fisheries. Amenities, Renewables

Merebrook Business parkHanley RoadMalvernWorcestershireWR13 6NPTel: + 44 1684 312980Fax: + 44 1684 312981www.variconaqua.comaqua-solutions@varicon.co.uk

FOR FURTHER INFORMATION CONTACT TECHNICAL SALES AT:

THANK YOU

No 241-A, Jalan Ampang50450,Kuala LumpurWilayah PersekutuanMalaysiaTel: + 603 2144 0140Fax: + 603 2144 0190www.sasaran-variconaqua.comsyedisa@algaetech.com.my