Carbonics Acquires Rights to Algae Bioreactor Technologies

NEW YORK--(BUSINESS WIRE)--Carbonics Capital Corporation (OTC Bulletin Board: CICS) is pleased to announce that it has entered into an exclusive license with GreenShift Corporation (OTC Bulletin Board: GERS) for use of its algae bioreactor technologies in municipal and industrial applications excluding ethanol production.

GreenShift’s patented and patent-pending bioreactor technologies rely on thermophillic cyanobacteria (among other organisms) to consume carbon dioxide emissions and to produce carbon-neutral products. The organisms use the available carbon dioxide in the emissions and water to grow and give off oxygen and water vapor. The organisms also absorb nitrogen oxide and sulfur dioxide. All photosynthetic organisms need a supply of carbon dioxide, light, a growth media and water with nutrients to live and grow. GreenShift’s bioreactor technologies have the potential to reduce the costs and technical barriers to managing the flow resources into, through and out of the bioreactor in a compact and cost-efficient way as compared to other algae bioreactor technologies.

Carbonics’ wholly-owned subsidiary, Sustainable Systems, Inc., was awarded a $375,000 grant from the Montana Department of Commerce Research and Commercialization Technology program and is pursuing additional funding to apply toward this project to move this technology forward.

“While certain engineering hurdles must be overcome, we remain excited about this technology and its applications to manage carbon dioxide emissions while creating raw material for value added products,” stated Dr. Paul Miller, president and chief executive officer. In addition, Dr. Miller stated, “Our development team’s assessment of the algae production state of the art suggests that this is a practical closed system technology deployable on a large scale. What is unique about this technology is that we retain a high level of control of the environmental conditions within the system and we believe we can tailor the conditions for the production of biomass-derived chemicals and other products that can have commercial values greatly exceeding fuel.”

David Winsness, GreenShift’s Chief Technology Officer, added that “GreenShift is exclusively focused on the commercialization needs of its patent-pending extraction technologies. While we originally acquired our bioreactor technologies with a long-term goal of developing applications capable of integrating into corn ethanol plants, these technologies have many other applications. The Carbonics team has the ability to evaluate and develop those applications, and to manage the continued evolution of our bioreactor technologies.”

Under the terms of the license agreement, Carbonics will pay GreenShift ten percent of the pre-tax net income derived from the use of the technology or derived from the sale, sublicense or lease of technology related equipment. In addition, while GreenShift shall retain ownership of all improvements that Carbonics may develop, and the right to use any such improvements in GreenShift’s ethanol applications, Carbonics shall retain the right to use those improvements under the license agreement.

About Carbonics Capital Corporation

Carbonics Capital Corporation (OTCBB: CICS) was founded to facilitate decarbonization in ways that cost-effectively capitalize on the evolving carbon markets.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Carbonics Capital Corporation and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

OriginOil Announces Breakthrough Process for Live Algae Oil Extraction

Algae ‘milking’ promises new efficiencies as part of a combined production cycle

LOS ANGELES--(BUSINESS WIRE)--OriginOil, Inc. (OOIL), the developer of a breakthrough technology to transform algae, the most promising source of renewable oil, into a true competitor to petroleum, today announced that it has succeeded in extracting algae oil on a continuous basis without cell sacrifice. This new ‘milking’ process will join the company’s Cascading Production™ technique to create a combined cycle promising new efficiencies.

Live Extraction™, or milking, is inherently efficient because it achieves continuous production of algae oil without destroying the algae cell. Therefore a single algae cell can produce more oil during its lifetime using lower amounts of energy. Unlike other approaches to live extraction, OriginOil’s process does not employ expensive consumables such as reverse osmosis membranes; furthermore, it is not limited to oil-bearing algae strains, such as Botryococcus braunii, that are known to excrete algae oil naturally.

Algae typically protect their oil behind a tough cell wall. The challenge of live extraction is to harvest the oil without causing permanent damage to the cell. This goal has been achieved in the laboratory at bench scale and is now being scaled up to OriginOil’s intermediate 200-gallon tank size. A diagram illustrates the process at www.originoil.com/technology/live-extraction.html.

The company recently filed for patent protection of the new Live Extraction process, its ninth patent application, entitled “Procedure for Extraction of Lipids from Algae without Cell Sacrifice.” “Live Extraction works by stimulating the algae cells through specific electrical modulations,” Riggs Eckelberry, OriginOil’s CEO, said. “The challenge is how to keep the cells alive while continuously extracting the oil, and we have achieved this.”

“We are pleased with the results we are getting from conventional harvesting,” said Vikram Pattarkine, PhD, OriginOil’s CTO. “We expect the new Live Extraction process to coexist with our daily ‘destructive’ process to create an even more efficient combined cycle.”

Aside from any production gains, combining the two processes is desirable because algae cultures must be refreshed regularly to remove waste toxins. Cascading Production supports Live Extraction by removing a percentage of the culture every day, refreshing the environment and giving the algae culture space to grow.

Following Exxon Mobil’s recent announcement of a $600 million investment in San Diego- based Synthetic Genomics, Paul Reep, senior technical adviser and one of the inventors, noted: “Live lipid extraction is especially beneficial when used with algae that have been genetically engineered for faster growth rate or higher lipid yields. By integrating Live Extraction into our process, we are providing a technology platform for companies like Synthetic Genomics that are experimenting with genetic improvements.”

About OriginOil, Inc.

OriginOil, Inc. is developing a breakthrough technology that will transform algae, the most promising source of renewable oil, into a true competitor to petroleum. Much of the world's oil and gas is made up of ancient algae deposits. Today, our technology will produce "new oil" from algae, through a cost-effective, high-speed manufacturing process. This endless supply of new oil can be used for many products, such as diesel, gasoline, jet fuel, plastics and solvents, without the global warming effects of petroleum. Other oil-producing feedstock, such as corn and sugarcane, often destroy vital farmlands and rainforests, disrupt global food supplies and create new environmental problems. Our unique technology, based on algae, is targeted at fundamentally changing our source of oil without disrupting the environment or food supplies. To learn more about OriginOil™, please visit our website at www.originoil.com.

Safe Harbor Statement:

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

Abstract/Short Description

OriginOil files ninth patent application, for Live Extraction™ or algae milking process.

Speculative Algae Biofuel Play: OriginOil (OTC:OOIL)

By Nick Hodge of GreenChipStocks.com

The Exxon algae biofuel news of last week certainly created a nice headline for the industry, generating awareness and interest in a green energy solution that is far away from fueling our cars, but may one day be a key component to eliminating our need for foreign oil. The following post by GreenChipStocks.com has been republished with permission and highlights one speculative algae biofuel play that could yield big time profits for the patient investor.

I’ve been waiting for a big piece of news to break before I brought you another article about algae biofuel.

You see, the ongoing recession has put the brakes on technologies that haven’t reached scale. It’s been tough to get capital for viable energy-producing projects, let alone for continued R&D into an uncommercialized technology.

But while the recession has taken away capital, it has left algae’s potential untouched. Just because it’s not here now doesn’t mean algae won’t be highly successful in the future. It has all the characteristics of the perfect feedstock. . . and then some.

(If you aren’t aware of the fundamentals of algae by now, make sure you check out our Investing in Algae Biofuel report.)

And some big energy players are taking notice, providing the news I’ve been waiting for.

Exxon’s $600 Million Algae Bet

Before I get to the bold topic above, let me take a second to address Big Oil’s growing interest in cleantech. As I noted in Green Chip a few weeks ago, oil companies are increasingly pursuing renewable energy, but in their own unique way.

They’re looking for projects with high returns that allow them to exploit their immense industry knowledge and in-place infrastructure. This means pursuing biofuels (because of their liquid fuel infrastructure) and geothermal energy (because of their drilling know-how).

That said, algae is a good place for oil companies to be. And Exxon knows it.

So much so that the company recently announced a $600 million foray into the sector. This is the equivalent of the queen’s blessing, the Midas touch. The king of energy is looking for successors.

And they’re fairly confident in their selection. According to Dr. Emil Jacobs, Exxon’s VP of R&D, “Meeting the world’s growing energy demands will require a multitude of technologies and energy sources. We believe that biofuel produced by algae could be a meaningful part of the solution in the future if our efforts result in an economically viable, low net carbon emission transportation fuel.”

Michael Dolan, the Senior VP, added to the praise for algae, saying, “. . .algae-based fuels could help meet the world’s growing demand for transportation fuel while reducing greenhouse gas emissions.”

But as excited as they are about algae’s potential, both men offered caveats about the “significant work and years of research that must be completed.” The real challenge is being able to create economically viable algae biofuel in large volumes, which will require “significant advances in both science and engineering.”

This announcement certainly brings validity and positive PR to the sector, but there are many companies that have been pursuing and trying to perfect algae biofuel for years.

One such company I’ve been following is OriginOil, and I recently had a chance to sit down with the CEO for an interview.

An Algae Up-and-Comer

Unlike some companies whose sole goal is to produce large quantities algae biofuel, OriginOil takes a pure technology approach. As was mentioned above, there is still much work to be done before algae is viable on a commercial scale.

The goal of OriginOil is to break down the remaining barriers to algae’s development at all levels, from plant growth to oil separation. By perfecting each level of growth and production, the company can set the stage for algal oil production across the globe.

Think of it like a platform, like Microsoft Windows, that will then be adopted by multiple producers of biofuel, just as Windows is adopted by multiple computer-makers.

Of course, I don’t need to tell you about the profit implications of being the platform technology for an entire industry. And OriginOil is well on its way to establishing itself as such.

They have a novel, patented process for growing algae that introduces all the inputs — carbon dioxide, water, and nutrients — on a micron level. This allows for instant, even, and thorough absorption.

The vessel they use to grow the algae, called a bioreactor, is also quite unique and advantageous. It’s a vertical shaft with specialized lights placed at different heights, allowing algae to be grown at multiple levels rather than just on the surface of an open pond.

They’ve also developed a proprietary process for harvesting the oil from the algae once grown. Called “Quantum Fracturing,” electric pulses are used to break down the algae cells and release the oil before a simple gravitational process is used to separate it. This system could save 90% of the energy used in traditional methods.

As you can see, OriginOil is working on perfecting algal oil from the proverbial soup to nuts, knocking off remaining barriers one by one. Their most recent development is a lighting system that responds continuously to the algae’s behavior, improving “energy efficiency and growth rates by ensuring the right types and amounts of light are used at all times as the algae grows to maturity.”

Keep an eye out for this company as their technologies become ubiquitous and are adopted by biofuel producers worldwide.

In the meantime, you can check out my interview with CEO of OriginOil Riggs Eckelberry in my new algae biofuel report.

GREENER DAWN RESEARCH INITIATES COVERAGE OF ALGAE BASED BIOFUELS

Greener Dawn Research, specializing in clean tech equity research, publishes its first institutional report on algae based biofuels. The report examines the opportunities and challenges of the nascent industry, and features insight on the eight major algae-to-fuel companies nearing commercialization. The eight profiled companies include Algenol, Aurora, Livefuels, PetroAlgae (OTCBB:PALG), Sapphire, Seambiotic, Solix, and Solazyme. The report addresses the key question - “Can algae based biofuels compete as a substitute to fossil fuel based crude oil?”

Algae are aquatic plant-like organisms that can grow much faster than any other crops or plants. In addition, algae can grow on marginal, non-arable land, leaving quality farm land available for food production. These two factors help algae biofuels avoid the bitter food versus fuel debate.

“To grow enough corn to produce a sufficient amount of ethanol to replace petroleum, the U.S. would need to plant corn on roughly one-third the total land area of the country. To grow enough soy to generate sufficient biodiesel, the U.S. would need to plant more than the entire land area of this country,” said George Santana, Greener Dawn Director of Research. “Algae biofuel would require the land area of just Wisconsin to replace petroleum. Due to increased productivity, algae based fuel has the potential to be a revolutionary breakthrough.”

With cap and trade, carbon taxes, and the World Climate Summit in Copenhagen in December 2009 as issues at the forefront of the current administration, algae may offer a new tool in the fight against carbon dioxide production, the primary contributor to climate change. Studies show algae consume 2.2 times its weight in carbon dioxide while burning fossil fuels produce carbon dioxide. Placing algae farms next to coal plants is being looked at as a viable option.

“We are in a very historic time as the United States undergoes a paradigm shift across numerous sectors. Renewable energy is here to stay and will change the way we generate and consume energy across our nation,” said Courtland D. Weisleder, President of Greener Dawn Investment Group. “As the different renewable energy sources jockey for position, it is important to focus on algae’s Biofuel Yield (gallons of fuel/ acre). Algae are estimated at 5,000 gallons per acre with the next closest crop at 800. Greener Dawn’s sole focus on clean technology is making us an active leader in Research and Investment Banking in this sector.”

The 15 page Overview of the 70 page report can be viewed: http://www.greenerdawninvestmentgroup.com/research/

About Greener Dawn Research

Greener Dawn was founded on the belief that we are in the very early stages of a transformation to a more energy efficient, lower-carbon global economy. We are equity analysts focused on the renewable energy and clean technology sectors, publishing research for our institutional investor subscribers.

We monitor the following industry verticals:

• Energy generation, including solar, geothermal, wind, biomass, ocean and tidal power;
• Biofuels;
• Energy storage;
• Energy efficiency;
• Energy infrastructure; and
• Smart grid technologies.

Greener Dawn Investment Group (GDIG), of which Greener Dawn Research is a part, is a privately held company providing equity research and investment banking services, with a focus on companies in the renewable energy and clean technology sectors. The Research division publishes equity research for an institutional investor audience. The Investment Banking team provides financial advisory services to emerging growth private and public companies. GDIG participates in hosting corporate leadership meetings and industry events in the alternative energy and clean tech sectors, building relationships with public policy thought leaders, and maintaining open lines of communication with various members of the alternative energy community - academic leaders, environmental policy makers, businesses, and consultants. This participation at the ground level gives them a deeper insight into the industry, broadening their knowledge and improving their research and investment banking efforts.

Greener Dawn Inc. focuses on energy and water efficiency, LEED consulting, energy audits, and carbon strategies for Residential and Commercial real estate. They focus on the holistic approach to making an asset more sustainable by lower operating expenses, creating green collar jobs, and reducing the carbon footprint. Homeowners, municipalities, asset managers, and building owners are their clients.

ExxonMobil invests in algae for biofuel

The current interests and investments for production of biofuels using various species of algae are based on promises to achieve an economically sound process. The pros of the biology of algae are enthusing with CO2 as themain substrateand sunlight as energy source. However, there are intrinsic limitations, which most reports disregard in their descriptions of the potential of algae as a source for biofuels. Two important features (and there might be more) are the need for growth limiting conditions to enhance lipid accumulation and the very low cell concentration obtained i.e. very dilute cell suspensions (and the handling of a lot of water). Here are some results from the literature to illustrate these features. The home take message is to look at the whole picture and not just the exciting advantages. Algae accumulate large quantities of lipid as storage materials, but they do this when under stress and growing slowly (Rittman 2008). A key factor for oil accumulation is high light intensity and nitrogen deficiency (Solovchenko et al. 2008). In the comprehensive report of Sheehan et al 1998 it was stated “The common thread among the studies showing increased oil production under stress seems to be the observed cessation of cell division. While the rate of production of all cell components is lower under nutrient starvation, oil production seems to remain higher, leading to an accumulation of oil in the cells. The increased oil content of the algae does not to lead to increased overall productivity of oil. In fact, overall rates of oil production are lower during periods of nutrient deficiency. Higher levels of oil in the cells are more than offset by lower rates of cell growth. (Sheehan J, Dunahay T, Benemann J & Roessler P (1998). A Look Back at the U.S. Department of Energy’s Aquatic Species Program: Biodiesel from Algae NREL/TP-580-24190). They also state that “The factors that most influence cost are biological …� Independent of which mass growth mode is chosen, raceway ponds or tubular photobioreactors, the final cell concentration is very low. A cell concentration of 4 gram dry weight per liter was reported for autotrophic growth of microalgae in a photobioreactor facility and 0.14 gram dry weight per liter in raceway ponds (Chisti 2007). The cell concentration of oleaginous yeast, grown heterotrophically was reported to be 106.6 gram dry weight per liter in a 15 l stirred tank fermentor (Li et al. 2007). Due to these biological limitiations the production of a low value/high volume product using microalgae is still far from being economically viable. Can research change these biological limitations? Chisti Y (2007). Biodiesel from algae. Biotechnol. Adv. 25: 294-306. Li YH, Zhao ZB & Bai FW (2007). High density cultivation of oleaginous yeast Rhodosporidium toruloides Y4 in fed batch culture. Enzyme Microb.Biotechnol. 41:312-317. Rittman BE (2008). Opportunities for renewable bioenergy using microorganisms. Biotechnol. Bioengng. 100: 203-212. Slovchenko AE, Khozin-Goldberg I, Didi-Cohen S, Cohen Z & Merzylak MN (2008). Effects of light intensity and nitrogen starvationon growth, total fatty acids and arachidonic acid in the green microalga Parietochloris incise. J. Appl. Phycol. 20:245-251 Stefan Rokem Ph.D. Dept. Microbiology & Molecular Genetics, IMRIC, The Hebrew University of Jerusalem Israel