Panel discussion: Program Design in Practice and structure

1. Panel discussion: Program Design in Practice and structure Presented to I-CAN members By Marie-Claude Côté, ing. MSc, NPDP, VP of business development, CRIQ I-CAN Vice-Chair October 2011

2. Presentationoverview • Existing programs and value proposition; • Let’s talk about programs: the reality to CO2captation program; • Key learnings. 

3. Existing programs and value proposition CVF: Centre de valorisation de la forêt: transforming the business model of the Quebec Forest industry: • Going from producing what we have to answering the market demand for wood derived product: • Extracted bioproducts; • Energy; • Specialized paper; • Structure wood products. • … • Partners: CRIQ, FPInnovations, FORAC, MRNF • Industry implication: lumber , pulp and paper and product distributor.

4. Existing programs and value proposition Antioxidants production from blueberries: • Reversing the Québec market position to antioxidants users; • Creating a new revenue opportunity for the Québec blueberry producers; Industry implication: union of the Lac St-Jean blueberry producers for the benefit of its members Extracts Pilote Plant

5. Existing programs and value proposition Biovalorization-CO2-Québec:Providing an option to large CO2 emitters by creating value from waste (CO2): • Value = access to green energy source in remote location; • Value = Reduction of GHG emissions or option for cap & trade; • Value = local economy growth. «This technology represents a promising solution for reducing GHG and for the production of alternative energy sources. Clifs Natural Resourcesis considered a major consumer of energy and is exposed to the energy intensive trade. In that sense, to remain competitive on the international market, we must find ways to diversify our energy sources and simultaneously reduce our greenhouse gas emissions. This project is an interesting avenue for our company and for the industrial sector, as well as for the country as a whole, as it will position us favorably in terms of protecting our environment and in the eye of society in general.» (translated from Wabush Mines support letter for phase 2)

6. Let’s talk about programs… • Goal, vision, context, system breakdown; • Team, governance, stakeholder, collaboration; • Value (at all levels); • Outcomes; • Communications; • Technology, skills, knowledge and know how; • Politics; • Risk, cost, time, quality… ENOUGH ?!?!?!?!?!

7. Let’s talk about programs… • Metrics; • Decisional structure and guide lines; • Success definition; • Recognition; • Culture; • Continuous validation and re-adjustments. Want more ?!?!?!?!?!

8. Let’s talk about programs…

9. Let’s fill out some of those statements…

10. THE GLOBAL I-CAN GOAL:Develop a system for biosequestration of CO2 by microalgae and create value with biomass (biofuel, HAVP)Considering: Positive carbon footprint (GHG reduction) ? ?

11. I-CAN ALGAE PROGRAM, a major puzzle to resolve…

12. CRIQ and INO collaboration sub-program Address development of in depth pond using natural light…

13. Technology positioning CO2-Québec (Hybrid system)  40-30 moles photons / mole CO2 Open pound > 100 moles photons / mole CO2 • Raceway • 90-50 moles photons / mole CO2 Photobioreactors  30 moles photons / mole CO2 Maximum Quantum efficiency 10 moles photons / mole CO2 Quantum Efficiency of PAR Photons Improved quantum efficiency of photons by optimized solar light collection, dilution and distribution in the PBR, without consideration on CO2 footprint and system added cost. • Improved quantum efficiency of photons by optimized solar light collection, dilution and distribution in the pound, and considering : • Project’s net CO2 reduction • Realistic tradeoff on productivity improvement and optical system added cost Improved productivity primarily trough mixing Improved productivity without consideration on needed electrical power and cost for the artificial light needed to produce the biomass. Large amount of light is supplied to ensure the productivity is not limited by light, without consideration on light efficiency. Best tradeoff : productivity improvement VS system added cost High productivity However at a high system cost (Too high for biofuel production)

14. Time line… • Industrial implementation would include four distinct phases Phase 4: Implement a full size unit Phase 3: Implement a first scale industrial module Phase 2 : Validate the concept and the profitability assumptions under real operating conditions) (pilot scale ~ 50 m2) Phase 1: Feasibility study at a laboratory scale (~ 3 m3)

15. INO specific expertise / responsibility • Sunlight collection, concentration and dispersion into the pound: • Selection of technical approaches: • Review of prior art; • Definition of constraints with the team. • Design of approaches adapted to specific constraints: • Modeling; • Recommendations. • Prototypes construction and characterization of optical devices. • System and technical management (technical coordination): • Definition of objectives; • Definition of system requirements; • Definition of sub-systems requirements; • Project planning collaboration.

16. CRIQ specific expertise/responsibility • Assessment of biomass productivity (freshwater microalgae consortia) under artificial light: • Lipids contents • Nutrients requirements • Controls • Design of hybrid pond including optical elements for light distribution • Design and fabrication of prototypes, laboratory units 3m3 • Assessment of biomass productivity • Scale up for pre-demonstration unit (50 m2) • Design of tracking system • Design of cleaning system • Pond mixing • Control and automation • Valorization chain • Technico-economic analysis • Project management • Scope, deliverables, schedule, costs, resources, risks, communications…

17. Team structure

18. Phase 1: Stake holders 1 950 M$ 1 350 M$ 300 k$ 150 k$ 150 k$

19. CRIQ • Technology, skills, knowledge and know how, collaboration, system breakdown…. CRIQ/INO • Dewatering • Flugasanalysis POTENTIAL PARTNER: SRC • Pre-domonstration unit • ( 50 m2) CO2 CRIQ POTENTIAL PARTNERS: IMB/CANMET • Wet extraction ICAN Residualbiomass Lipidsextracts CRIQ CRIBIQ I-CAN I-CAN Residualbiomass Glycérol IRDA Biodiesel kerosene methanisation Pyroliticoils POTENTIAL PARTNER: BIOCARDEL Biojetfuel Pyrolisis Coal Ipotentialpartners: -CAN, SRC CANMET IAR, AITF, BIOCARDEL, P&WC Non condensables gaz

20. Progress, improvement, adaptation… • Microalgea consortia and lipid contents • 30-50 % lipids Enriched solution

21. Key learnings, so far… • Collaboration is a daily challenge: • One team with focus to communication is KEY; • 1 project for all ≠ each its own project. • Concerns about group thinking: • INO versus CRIQ turned out to be R&D Team against Management… • About organizations, values and approaches: • Understanding; • Respect; • Collaborating to create more; • Facing challenges together… • Keeping team on track, aiming for good enough; • Keeping stakeholders on track, reaffirming the goal. Have we figured it out? No… but WE CAN make it happen…