MBD
Removing nitrogen with algae - a win win bioremediation strategy
Low cost technology – delivering zero net discharge
MBD Vision:
The deployment throughout Asia of MBD’s disruptive technology over a wide range of agricultural, mining
and industrial applications
Commercial-In-Confidence
Disclaimer
The information in this presentation has been prepared by MBD Limited (MBD) from a variety of internal sources, which MBD, to the best of its knowledge
and belief, considers accurate.
The information in this presentation is general information only and is not intended to provide investment information.
The information is intended only to provide a brief overview of MBD’s core activities, strategies and processes.
You should seek further information with respect to any proposed investment in MBD, including advice from a financial adviser or stockbroker if
necessary.
MBD excludes all liability arising out of any inaccuracies in this presentation, except where liability is made non-excludable by legislation.
Calculated values are approximate values only and may be subject to change.
© MBD Limited 2015
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MBD Energy Limited
Knowledge, expertise and business model
Access to world class expertise
• Through an exclusive relationship with James Cook University (“JCU”) – a recognised world leader in the field, giving MBD access to highly
developed expertise in the identification and cultivation of algae.
• MBD has built a sophisticated Algae R&D Facility at JCU which builds on JCU’s 30 years of expertise in marine biology.
Leveraging this knowledge and expertise
• MBD is using this algae knowledge and expertise to create a strong commercial business in:
• the provision of biological based remediation of industrial waste streams, and
• the high yield production of valuable algae-based by-products.
Compelling business proposition
• MBD has developed agricultural-based processes and systems that use selected algae strains to clean and convert industrial waste waters
into food, oil and energy products that can be sold for commercial profit.
• Through its R&D facility MBD is able to select and work with algae strains local to any site in the world, assess the viability of a project,
establish a cost effective bioremediation service and generate profitable revenues from the sale of algae-based products.
Strong project pipeline
• MBD has an industrial scale bioremediation projects at the Pacific Reef Prawn Farm in Queensland,
• We are developing a North Queensland Astaxanthin project and water bioremediation projects in China and Thailand.
Team to deliver
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We have assembled an experienced, integrated scientific, engineering, project development and construction team to deliver our
projects.
© MBD Limited 2015
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MBD Energy Limited
Strategy – Strong Business Partners
Key Project Partners:
• Pacific Reef
Fisheries
• Shandong
Ocard (China)
• Loxley, Bangchak and
• Ratchaburi P.S,
(Thailand)
• Tarong Power
Station
• Peace River Mine
(B.C. Canada)
Cornerstone Investors:
Principal Research Partners:
© MBD Limited 2015
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R&D Centre of Excellence
Extensive R&D background
MBD has an ongoing exclusive relationship with James Cook University (JCU) in
Queensland, a recognised world leader in both micro and macro algae research and
development. MBD has exclusive access to world expert knowledge and experience in
targeted algae strain selection and cultivation (based on optimised remediation and
yield performance criteria, harvest and commercial production).
Through a six year investment program MBD has built a Research and Development
Facility and Pilot Plant Test Facility at the JCU Townsville campus giving it exclusive
commercial value and strategic benefits arising from the operation of world-class
centres of excellence in micro and macro algae R&D.
MBD and JCU have agreed the basis of a 20 year master agreement.
© MBD Limited 2015
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Two algae types - many species
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© MBD Limited 2015
Micro Algae
Is single celled
Requires higher technology / system inputs
Produces oils, proteins, pigments and other higher-value products
Efficient growth but with lower density
Current market is focussed on high-value nutritional and chemical
products
We are investigating the use of biomass in animal and aquatic meal
trials
Macro Algae
Is multi-cellular
Requires lower technology / system inputs
Produces bio-mass based commodities, largely for food and energy
markets
Has efficient growth with higher density
Current seaweed aquaculture industry is valued at greater than A$8
billion pa
We are investigating the use of biomass in human food, animal feed and
bio-fuel trials
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Aquaculture Bioremediation
 To date, the expansion of land-based aquaculture operations throughout Asia and Australia has been restricted
by government regulation relating to waste-water discharge.
 Deployment of MBD’s bioremediation technology will result in the discharge water returned to the Ocean
having the same or lower levels of nitrogen and phosphorous as the intake water drawn from the Ocean.
 MBD’s bioremediation technology can facilitate expansion of land-based aquaculture.
 MBD technology is modular – Suited to expand to match production
 Load based service charge, $30 - $40/kg Nitrogen. Costs offset by strong demand for algae products.
© MBD Limited 2015
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Pacific Reef Fisheries Project
Nutrients
Nitrogen
Phosphorus
Ø 600 half Pipe Drain
Ø 150 Pipe Drain
Raceways
8
7
Treatment
Pond
Pond 8
Pond 7
Pond 6
6
Pond 5
5
Ø 150 Pipe
4
Ø 150 Pipe
3
Current full scale module
site
2
Pond 4
Pond 3
Pond 2
1
Pond 1
1
2
3
Mushroom
Filters
100L/s Pump cap @ 15m head
Ø 250 Pipe
Water
Supply
Resevoir
Initial trial operation
1
© MBD Limited 2015
150L/s @6m head
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Bioremediation Model
Key metrics used in MBD’s Business Plan and 2015
Model
Trial Performance
Productivity
70 tonnes per annum
70-100 tonnes per annum
Flow per day
300 % exchange
Up to 700% exchange
Bioremediation ratio
(Algae / prawn)
1:10 (10%)
>1:10 (10%)
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Zero Nett gain
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Model Assumptions
All land required for algae bioremediation operations to be provided at no cost;
All site infrastructure including sand filters, HRAP, water channels, pumps , road, drainage, electricity and telecommunications
infrastructure of to be the responsibility of the prawn farm;
1:10 ratio for algae-farm to prawn-farm ratio - dependent upon the performance of bioremediation services;
Algae growth-rate assumed at 20 g/m2/day on average;
Algae farm design is to be incorporated into the prawn-farm design & operations for optimal use of gravitational flows in
agricultural/irrigation channels;
Assumes a 3% simple inflation rate over the algae product value.
© MBD Limited 2015
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Pacific Reef Project – How it works
Ocean Intake Water
Sand Filter
Nitrogen level:
0.35mg/l – 0.5mg/l
Conversion of Nitrogen
(organic to inorganic N)
Algae Ponds
Prawn & Cobia
water discharge
Nitrogen level:
0.15mg/l – 0.2mg/l
Nitrogen level:
1.1mg/l – 1.4mg/l
Ocean Inlet
Prawn farming
Water Storage
Sand Filter
Algae Ponds
Water is pumped into the
prawn farm direct from the
ocean inlet. Nitrogen
levels vary based on cane
farm and animal farming
cycles.
The water is used by the
prawn farm to grow prawns
and fin fish. Both increase
the level of nitrogen in the
water.
Waste water from the farm
is then collected in a
central storage dam. The
water is high in organic
and inorganic nitrogen.
The sand filter performs two key roles:
The nitrogen rich water is fed continuously into
high growth ponds where algae remediates the
nitrogen and phosphorous to levels below the
levels in the ocean intake. The cleaned water
then flows to the ocean outlet via natural
mangroves.
© MBD Limited 2015
- The removal of suspended solids
- The conversion of organic N to
inorganic N.
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Pacific Reef, N - remediation performance
Average N remediation:
Average P remediation:
500
185kg ha-1 month-1
15kg ha-1 month-1
50
45
N capture
P capture
400
40
350
35
300
30
250
25
200
20
150
15
100
10
50
5
0
0
Oct-14
© MBD Limited 2015
Nov-14
Dec-14
Jan-15
Feb-15
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Mar-15
Apr-15
P remediation [kg ha-1 month-1]
N remediation [kg ha -1 month-1]
450
May-15
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N - remediation performance
Ratio of Prawn to Algae Ponds
Prawn ponds per 1 hectare algal ponds
18
Average algal production
16
14
12
10
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6
4
2
0
10
12
14 16 18 20 22 24 26
N release from farm [kg ha-1 month-1]
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Industry Impact – clean water, high quality products
Key facts and metrics
Productivity
Products
MBD has achieved productivity levels
between 50 - 100 tonnes of algae
growth per hectare per annum
depending on the farm cycle and the
type of algae grown in the system.
In addition to cleaning the waste water
the algae produces a wide range of high
value products. These include:
- Biochar
- Aosa and Aonori
- Animal and Aquatic feeds
The Pacific Reef Fisheries Project has
demonstrated that it can significantly
reduce nutrient levels in its discharge
water and this has provided it with a
mechanism to expand.
Zero net Gain
Government Environmental Regulations
require nitrogen and phosphorous content
levels of discharge water to be significantly
reduced or eliminated before it can be
returned to the waters of the Great Barrier
Reef.
Remediation
The key requirement is to take the
nutrient level of the aquaculture
farm’s discharge water to be below
that of the intake level from the
Ocean.
1 Ha of algae ponds will remediate
between 5 and 10 Ha of prawn farm
ponds. (i.e. 10% – 20% of the area)
© MBD Limited 2015
Pathway for Aquaculture Industry expansion
This has resulted in no new farm permits
being issued for the last 15 years.
MBD’s low cost bioremediation technology provides a cost
effective pathway for the Aquaculture Industry in Australia and
throughout Asia to expand.
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Integrated Concept
© MBD Limited 2015
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Ulva ohnoi inclusion in prawn feed
Study design
• Juvenile Litopenaeus vannamei
• MBD U. ohnoi, 1%, 2% & 4% + control diet
• Feed duration 45 days
• Zootechnical (weight, survival, FCR, Protein Efficiency Ratio, Net Protein
Utilisation )
• Immunological (protein, free & total phenoloxidase activity, total haemocytes)
• Bacterial challenge (V. parahaemolyticus)
© MBD Limited 2015
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Ulva ohnoi inclusion in prawn feed
Results
• No difference in zootechnical parameters to control
• Significantly higher phenoloxidase (free & total) activity
• Significant higher survival to pathogen (V. parahaemolyticus)
60
prawn survival %
50
40
30
20
10
0
0
© MBD Limited 2015
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2
3
Dietary Ulva ohnoi inclusion level (%)
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Astaxanthin Project
Value and markets
Current markets
Value
Natural Astaxanthin is increasingly being used in
the aquafeed, nutraceutical and functional food
industry.
MBD grows and harvests the
astaxanthin. The astaxanthin is a
natural red pigment and is also a highly
active antioxidant.
The global aqua feed market was estimated at
US$55Bn in 2012 with a compound annual growth
rate of 12% through to 2018.
The wholesale value of the
Haematococcus algae ranges between
US$200 and US$500/kg depending on
pigment concentration.
The majority of the astaxanthin market uses
synthetic pigment, produced by chemical
companies e.g. BASF and DSM. The synthetic
astaxanthin is mainly used as a colouring agent in
aquaculture (mainly farmed salmon) and poultry
but unlike natural astaxanthin is not approved for
human consumption e.g. directly in supplements or
food.
MBD’s experience over the last 12
months is that the astaxanthin yield
has remained at the higher end of this
range.
Aquafeed /Animal Feed
Food and Functional Food
Dietary supplements
Pharmaceutical, Cosmetics
The fastest growing sector in the
world food economy is
aquaculture. Natural astaxanthin
is fed to farmed fish particularly
Salmon.
Rising consumer disposable income,
growing health awareness and the trend
towards natural and fortified ingredients
is fuelling growth in the global demand
for carotenoid, including astaxanthin.
With rising health care costs, the trend is
towards disease prevention. Astaxanthin being
a much more powerful anti-oxidant than other
carotenoids and is more effective at
neutralising free radicals and thus its
reputation is growing in the market.
These are newer industries that are using
astaxanthin for its health and colouring
properties. GIA predict that astaxanthin
demand will continue to grow with the
demand from pharmaceutical research
applications.
© MBD Limited 2015
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MBD Energy Limited
Wider development program
The next 12 months will see progress on the following projects, each offering strong prospects to expand MBD’s technology:
Thailand
• Major opportunity for MBD to apply our technology to the Thai Prawn Industry.
• Over the last 12 months the escalating problems with the prawn industry (production has declined from 600,000 tonnes per year in 2012 to less
than 300,000 tonnes in 2014) see an urgent need for technology that can clean the water at low cost. Water quality and disease have resulted in
a reduction is annual sales worth between AUD 4 – 5 billion dollars. The crisis deepened further with the announcement by the EU that they
would ban importation of Thai prawns if the industry failed to address water and feed quality issues.
• MBD is in discussion with the 2 major Thai aquaculture companies and the Thai Department of Fisheries to scope out Thai based projects.
China
• In China we have strong support from the Central Government – who following our successful demonstration project in Jinan sent their G20
delegation to MBD’s QLD site to review the technology first hand – they have since selected MBD as a preferred technology and are working
closely with us on the expansion project in Hainan (aquaculture clean up) and mainland China (Jinan water recharge project).
Cane Industry, QLD
• A further positive for MBD’s North Queensland Bioremediation projects is the recent Federal and Queensland Government allocations of $100m
(each) of funding to accelerate protection projects for the Great Barrier Reef.
• MBD’s technology provides a direct fit with the requirement to clean up runoff waters. Whilst still early in the process, details of the fund will be
released in the second half of 2015, this fund is a strong opportunity for MBD as we do not know of any competing technologies or projects in the
region.
R&D Support
• MBD received the news in May that the federal Government would fund the IMCRC. The AUD 40 million grant fund supports Industry’s
commercialisation work with technology. MBD’s programs are nominated for AUD 7 million of these funds. This announcement continues the
strong Federal Governments support of MBD.
• On June 5 our scientists won the UN (Aust) Water Award on world environment day based on the work associated with the reef clean up.
© MBD Limited 2015
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