CO2 Conversion Technology

January, 2013

Brian Sefton – Oakbio John Kline – John Kline Consulting

OakBio

OakBio THE PROBLEM & OPPORTUNITY: More people to support (in comfort)

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Without using petroleum oil

Without using land & water Without increasing CO2 levels

Without diverting resources from human food

HOW DO WE DO THIS ??

Continent population to 2100: UN

Increase in number of middle class

OakBio

OAKBIO TECHNOLOGY “Microbial Factories” make Chemicals from CO2

CO2

H2

Chemicals

Polymers

Biofuels

THE SOLUTION: CO2 Conversion From climate change to green chemicals

OakBio Carbon Capture & Sequestration

• Carbon capture and sequestration is the separation of CO2 from exhaust gases for long term storage

• Typically gases need to be cleaned and concentrated • Cleaned CO2 is compressed and pumped underground where it is stored (for ever ?) • Surface monitoring is most likely required (for ever ?) • Basically land filling CO2 !

OakBio Capture versus Conversion

• Conversion projects aim at converting CO2 to useful products • The higher the value of the end product the more viable the technology • The most widely known conversion technology today is algae which typically converts CO2 to bio-diesel and ethanol

OakBio Benefits of Oakbio’s Microbes

• Conversion projects can use either algae or

bacteria • The benefits of bacteria are:

• No photosynthesis, therefore no light source required • Bacteria do not consume sugars so no competition with food sources • Smaller physical foot print • Lower water consumption in the process

OakBio Oakbio Microbes Special Properties

OB311

OB2I3

50-90% bioplastic (granules)

~1% carotenoids (membranes)

OB311

OB2I3

Clear Colonies

Red Colonies

• Grow in darkness

• Don’t need sugars

• Gas fed

• Different products

• Readily cultured

• Simple culture medium

• Low water usage

• Engineered

• Safe

Major Natural Constituents of OBM213

Glycolic acid : C2

Propane-1,3-diol : C3

Phosphoethanolamine

Succinic Acid : C4

Polyhydroxyalkanoates

Stearic Acid : C18:0

Phytol : C20

Elaidic acid

Pelargonic acid : C9

Palmitic Acid : C16:0

Palmitoleic acid 16:1∆9

FIRST PRODUCT CLASSES

OakBio

Biofuels and Plastics

Oakbio Chemicals & Markets OakBio

Carotenoids

Moderate Market Moderate Margin

Cosmetics

Food & Feed Additives

Nutraceuticals

Biopolymers

Very Large Market Small Margin

Biodegradable

Plastics

Fatty Acids & Alcohols

Large Market

Moderate Margin

Industrial Lubricants Surfactants

Fragrance Compounds

Small Market High Margin

Perfumes

Gas feed streams

The Oakbio Process

Novel technology for microbial capture of CO2-rich gases and carbon conversion to chemicals and fuels

• Gases the sole source of carbon and energy (Low Cost) • Direct production of valuable chemicals in one reactor • Drop-in hydrocarbon fuels made directly or with chemistry • Can be environmentally “sustainable” = “totally renewable” • Lower cost products using low cost carbon feedstock

OakBio

OakBio

OAKBIO TECHNOLOGY Energy + Carbon to Plastics, Chemicals, Fuels

Industrial

CO2

H2

Chemicals

Polymers

Biofuels

Robust system capable of taking multiple Energy and carbon inputs

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Organic Waste

Electricity Biomass Waste Sunlight

Inorganic Carbon

Gassifier Output

Potential Broad and Significant Impacts

Industrial

Outputs from Oakbio Process • CO2 capture reduces GHG • Low cost waste CO2 to chemicals • Scale up to “drop-in” fuels • “Sustainable Cement” • 1st Generation Oakbio process established

Renewable

• 100% sustainable / totally renewable • Proven technology: solar to electricity to H2

• 100% sustainable chemicals

• Significant impact on specialty chemicals • Significant impact on “drop-in” transportation fuels

• No impact on food, agriculture or land use

Fossil Fuel

• CO2 capture reduces GHG • Low cost waste CO2 to chemicals • Scale up to “drop-in” fuels

• low cost alternative to geo-sequestration

CEMENT:1.5B tons CO2/yr globally, 5% WW GHG

sustainable energy: H2 from solar

COAL: 2B tons CO2/yr in US, 27% of US GHG

CO2 capture

CO2 capture

Energy

OakBio

OakBio

Industrial

Additional Benefits

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• Main Benefit is to make a value-added product that sells for a profit • Additional benefits include:

• CO2 emissions reduction • Possible CO2 credits • Sustainable products (TBD) • Additional environmental reduction (metals, NOx and SOx)

Oakbio Inc. Today

Located in Sunnyvale, Silicon Valley, CA

Incorporated in DE Oct, 2009

6 patents filed.

World Class Management, Scientific and Advisory Staff

Main laboratory in Sunnyvale, Ca.

Field laboratory at Lehigh Southwest Cement, Cupertino plant

Currently running 20L reactors

Next Steps

OakBio

• Funding to build a 1000L Pilot Plant • Sources of flue gas for additional research (power plant, others) • Partners

Why is the Oakbio Approach to CO2 Capture Superior?

Because the value of the products produced exceeds the cost of the inputs.

The Oakbio process, even with no carbon credits*, no subsidies, and using grid electricity is anticipated to be profitable at scale. In this case, CO2 becomes a feedstock resource which is converted to valuable products.

Demand Driven Carbon Capture * Of course they are beneficial

OakBio

Don’t Landfill Your CO2 !

OakBio

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Oakbio aims to lead this new multi-$B business answering the needs of petrochemical substitution and CO2 releasing industries