Gerald R. Cysewski, Ph.D. Chief Science Officer Cyanotech Corporation Cyanotech Commercial Production of Spirulina • Specializing in Microalgae Technology • Operating since 1984 • 100 Employees • GMP Certified by NPA • Non-GMO, environmentally friendly products • Public Company: NASDAQ:CYAN Keahole Point, Hawaii Cyanotech Cyanotech’s Production Facility •90 acre facility in Kona, Hawaii. •Consistent sun and temperature yearround •Separate production facilities for Spirulina and Haematococcus •Major Spirulina production capacity •Astaxanthin production is consistent and growing to meet market demand Spirulina-High Nutritional Value • 60% Protein • Rich in carotenoids •Beta Carotene •Zeaxanthin • Phycocyanin • Liver and Kidney protection • Immune stimulating compounds • Antiviral compounds Cyanotech Microalgae Production In Kona, Hawaii • Ideal Climate • Warm year round • High solar insolation • Low rain fall • Unique resource • Cold deep seawater •High Costs • Land Clearing (hard lava) •$85,000/Acre •CO 2 • $440/ton •Power •$0.37/Kwh Cyanotech Spirulina Production • 40 Culture ponds • Average size 30,000 sq. ft. • Culture media 150,000 gal • Total area 29 acres Cyanotech Cyanotech Spirulina Culture Ponds • Lined with Reinforced Plastic • Paddle Wheel Agitation • Cost per 30,000 ft 2 Pond •Land Leveling $56,800 •Lining $22,000 •Agitation $24,900 •Piping $15,100 Total $118,800 Cyanotech Spirulina Typical Growth Media Item Grams/Liter . NaHCO 3 16.0 NaNO 3 2.5 NaCl 1.0 K 2SO 4 1.0 K 2HPO 4 0.5 MgSO 4·7H 20 0.2 FeSO 4·7H 2O 0.01 Na-EDTA 2.5 Trace minerals Cyanotech Highly Alkaline Growth Media • Operation Necessities • Recycle growth media • Each 30,000 ft 2 ponds contains $7,500 sodium bicarbonate ($330,000 on farm) • Operation Opportunities • Reduced or no culture contamination • Carbon dioxide recovery Cyanotech Spirulina Production Flow Chart Cyanotech Cyanotech CO2 / HCO3- / CO3= Equilibrium Cyanotech OH- + CO2 HCO3- + OH- CO3= + H2O Cyanotech CO2/Bicarb/Carbonate Equilbrium 0.00 0.20 0.40 0.60 0.80 1.00 1.20 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 Solution pH M o le F ractio n o f S p ecies Bicarbonate Carbonate CO2 Highly Alkaline Growth Media •At pH 10.5 40% of C is HCO 3 - •At pH 10.0 68% of C is HCO 3 - •At 16 g/l of NaHCO 3: • A pH decrease from 10.5 to 10 absorbs sufficient CO2 (carbon) to produce 1.3 g dry wt/l cells (CO 2 + OH-  HCO 3- ) • All carbon can be absorbed in media for a complete growth cycle. (at pond injection is not required) Cyanotech Ocean-Chill Spray Drying Low Oxygen with CO 2 Recovery Cyanotech Ocean-Chill Spray Drying Cyanotech • Low Oxygen environment – protects sensitive nutrients • Beta carotene, Zeaxanthin, Phycocyanin • Cold Deep Seawater Cost Effective – 4.5 ºC seawater--US$0.21 per 1000 gallons – Electric power for identical cooling—US$ 5.60 • Carbon dioxide recovery reduces costs Haematococcus (Astaxanthin) Production • 28 Culture ponds • Average size 28,000 sq ft • Total area 18 acres Cyanotech Haematococcus Cells Motile, green Haematococcus cells Encysted cells produce massive amounts of astaxanthin (400x magnification) Productions of Haematococcus • Two Stage System •Closed Culture •Outdoor Open Culture • All cultures scaled up from 200 ml lab shake flasks •20 liter •400 liter •30,000 liter •500,000 liter reddening ponds • Haematococcus spores cracked and dried • Production 10 times more difficult than Spirulina! Productions of Haematococcus •Dried, cracked biomass currently sent offsite for extraction •Supercritical CO 2 extraction • New Jersey • New Zealand •Bringing Supercritical CO 2 extraction on site • 1,000 bar (15,000 psi) system • Operational April 2016 • Will generate 60,000 kg/yr of extracted biomass Productions of Haematococcus •Extracted Haematococcus Biomass (60,000 kg/yr) • 35 % Protein • 52 % Carbohydrates • 2.6 % Fat • 7% Ash •370 calories/100 grams •Successfully tested in shrimp and fish feeds • Detailed analysis available • Samples available • Biomass available April 2015 Extracted Haematococcus Biomass Cyanotech Corporation