Bioprocess Technology

1. Upgrading the Value of Shale Gas on-site with Innovative Syngas Bioreactors ryan.johnson@curtislab.org (215) 272-0564 Bioprocess Technology

2. Calyx Bioprocess Technology • Scalable, low-capital cost bioconversion of syngas to chemicals • Utilizing patented plastic-lined bioreactor • High-value products for enhanced revenue • Targeting unique biochemicals • High Quality Lubricants (wax-esters) • Petrochemical substitutes • Cosmetics • Targeting stranded gas and remote shale wells • Areas where gas infrastructure is uneconomical • Profit from current gas flaring sites • On-site gas liquefaction process • Remotely monitored bioreactor • No gas distribution infrastructure needed Wax Esters Potential increase in NG value per Billion cu. Ft. $3,000 (Transport Fuels: 167%) $60,000 (High Value Lubricants: 1,300%) $200,000+ (Cosmetics: 4,400%) Curtis WR, Growing cells in a reservoir formed of a flexible sterile plastic liner, U.S. Patent #6,709,862, March 23, 2004.

3. How big is the opportunity? • Market Characteristics • Oil/gas Shale Boom • Volatile market and record-low natural gas prices • Expansive shale reserves • 100-200 Tcf recoverable • Estimated 7 billion cubic feet of natural gas flared in US (2011) • Current wells out of production • Many wells are not bringing gas to market due to economics • Decentralized and Remote well sites • Topography and vast area of PA prevents new gas distribution infrastructure eia.gov Remote gas reserves lacking infrastructure

4. Experienced Team • Management Team (Chemical, Industrial, Biotech, Energy Engineers) • Dr. Wayne R. Curtis– President and CEO • 25+ years algae and plant biotechnology experience • PI on ARPA-E funded “Electrofuels” Project • Ryan Johnson– Engineering Manager, Biz Development • Bioreactor Scale-up, Process Control • Involved in CALYX entrepreneurial activities since 2011. • Product Quality Characterization • Dr. Alex Rajangam– Molecular Biotechnologist • 12+ Years experience in biomass energy, metabolic engineering of wax-ester biosynthetic pathways • Nymul Khan– Intern • Bioreactor Design Challenges • Genetic Screening • Technical Advisors • Dr. Harold Schobert– Renowned expert in gasification reactors and syngas conversion

5. Why are we doing it? • Leveraging technology developed under ARPA-E Electrofuels program fixing biofuels from H2 and CO2 • High-efficiency conversion of gas phase to high quality biofuels • High-throughput chemical screening of genetically tailored organisms • Current syngas to liquids is based on 100 year old technology • Fischer-Tropsch liquefaction requires large-scale, high cost equipment • Current syngas bioreactor systems produce alcohols • Difficult product separation, lower value product line • Our group has experience with fatty acid wax esters • Wax esters are currently being marketed for high-value lubricants and cosmetics • Rapidly developing oil-shale with un-utilized “producer gas” • Flared gas in the U.S. is exponentially increasing (increased by $315 Million in potential revenue from 2010 to 2011)

6. Technology Overview • A low-cost trickle-bed bioreactor is poised to be the only leading technology capable of upgrading natural gas to liquids at such a small scale • Genetic modifcation of Clostridium ljungdahlii with Jojoba wax ester pathway • 97+% biological conversion of gas • 87+% Conversion to product • 13% used for biological functions 97%+ Syngas Yield Requires 1 ) Zero outputs except BioFuel “Dead End Fermentation” 2) Ultra-Low Dilution Rate “Growth Disassociated Fuel Production” 3) Secreted Hydrophobic Product Plastic-Lined Lab-scale Trickle Bed Fermenter 100 Liter for scale-up parameters

7. Syngas / Methane Fermenters INEOS (Bio) LanzaTech Coskata Alcohol Product Who else is doing this? Fischer Tropsch / Thermochemical $150,000 Qatar GTL Plastic-Lined Trickle Bed Carbon Sciences CapEx ($/BPD) High Temp • On-Site Conversion • High-value Product Line • Highest Conversion Efficiency $10,000 100 10,000 100,000 Capacity (BBL/day)

8. Our Competitive Advantage • Centralized, large-scale processing still requires natural gas distribution infrastructure • On-site liquefaction requires minimal gas handling • Production of alcohol requires distillation • Our continuous process phase separates our product through decantation • Trickle-bed fermenters have ultra efficient gas-to-liquid mass transfer with minimal operational cost • Trickle-beds are much larger (90%) than conventional stirred tank fermenters • Our patent allows us to have maximum efficiency with minimal capital cost Minimal capital cost Maximum efficiency per Energy Input

9. Economic Assessment • Conventional Small Scale FT-GTL CapEx is uneconomical • > 120,000 $/BPD • 55% of CapEx for Syngas Production • 35% of CapEx for Fischer-Tropsch • 10% of CapEx for Product Upgrading • 100 BBL/day commercial facility analyzed using ASPEN HYSYS • 25,000 m^3 CH4 / day (@ $4.54 / 1k ft^3) • 87% conversion of syngas to fuel • $5.6 MM for “Conventional” Trickle Bed Reactor (370 m^3) • Plastic Lined Reactor CapEx < $0.75 MM • High-value product line enables strong ROI • Operational + Fixed + Capital = $126/bbl • High-value lubricant product lines allow for ROR of > 322% • Does not include operational / capital of syngas reforming.

10. Business Model and Strategy

11. Strategic Partner Possibilities • Unique strategic partner for syngas production from methane • Steam reforming of Methane to syngas has been cost prohibitive at small to medium scale • Reduction is CapEx for small scale autothermal methane reforming is necessary for economics • The high specificity of transgenic bacteria allow our group to tailor products to our partners and customers • We have modified our current product lines (fuels) to include higher value lubricants. • We will seek to partner with synthetic lubricant manufacturer (such as Mobil-1) • Enable wax-ester product lines during scale-up • Further test product lines for higher value applications such as cosmetics High Value Lubricants Cosmetics Value Chain Shell GTL Facility