Algae Biomass Organization - Annual Report |...

Annual Report | 2010

Algal Biomass Organization | 2

Founded in 2008, the Algal Biomass Organization (ABO) is a non-profit organization whose mission is to promote the development of viable commercial markets for renewable and sustainable products derived from algae. Our membership is comprised of people, companies, and organizations across the value chain. On behalf of our more than 150 members, we work to:

• Facilitate commercialization and market development of microalgae biomass specifically for biofuels production and greenhouse gas abatement

• Deliver information to the public on initiatives, funding opportunities, and industry development

• Provide networking and collaboration opportunities

• Establish cutting edge research and commercialization summits and other meeting opportunities

• Develop a high quality interactive repository of information on algal biomass technology, science, products, processes, patents, and economics

• Facilitate IP aggregation, licensing, and royalty management

• Develop quality and measurement best practices for algal biomass, products, systems technology, and econometrics

• Afford career advancement and consultant opportunities

More information about the ABO, including membership, costs, benefits, members and their affiliations, is available at our website: www.algalbiomass.org.

The Algal Biomass Organization is a 501(c)6 not-for-profit organization.

About the Algal Biomass Organization

Promoting the development of viable commercial markets for renewable and sustainable products derived from algae.


The past year has been yet another time of significant growth and momentum for the Algal Biomass Organization and the algae industry as a whole.

Organizationally and financially, the ABO continues to evolve and strengthen its position as the voice of the algae industry in the United States. Founded in 2008, our more than 150 members represent an ever-growing coalition of researchers, national labs, entrepreneurs, algae producers, investors and end users.

2010 was a busy year for the ABO: we held our first-ever Finance Summit; hosted the 4th Annual Algae Biomass Summit, the largest algae-focused conference in the world; published the first Descriptive Language guidelines for the industry; met with members of Congress, the White House, and officials from the USDA and DOE; and increased the flow of information via a bi-weekly newsletter, issue/policy alerts, and social media. ABO is among the first resources to which policy makers, journalists and the public turn for information and insight on the industry.

But there’s no doubt that challenges remain. The 2010 elections dramatically reshaped the landscape in Congress for renewable energy legislation. The political climate – and especially the growing calls for government to curtail investments in energy innovation – means that competition for federal support has become even more intense.

And while awareness about algae among the public and policymakers has grown in the last year, far too many policymakers are unaware of the huge potential for domestic fuels and a range of other sustainable bioproducts that can be derived from algae. We continue to work hard to increase the overall understanding of – and support for – the economic, health, environmental and national security benefits of a thriving domestic algae industry.

It is an honor to continue to serve as ABO’s Executive Director, and to have the opportunity to work with a committed Board of Directors and members whose commitment to developing our industry continues to be astounding.

As I travel the country and see first-hand the innovation and progress among our members and industry stakeholders, I can’t help but be bullish about the future of this organization and our industry.

Very sincerely,

Mary RosenthalExecutive Director, Algal Biomass Organization

Letter from the Executive Director



February 2010: The U.S. Environmental Protection Agency recognizes algae-based biodiesel and renewable diesel as an advanced biofuel in the Renewable Fuel Standard.

March 2010: ABO annual Washington D.C. fly-in.

May 2010: ABO Algae Finance Summit in New York City.

July 2010: ABO launches online newsletter, the Algae InSight.

July 2010: ABO provides comments for the U.S. Department of Agriculture’s Biorefinery Assistance Program.

September 2010: U.S. House of Representatives passes H.R. 4168, the Algae-based Renewable Fuel Promotion Act.

September 2010: The fourth annual Algae Biomass Summit is held in Phoenix, Arizona and attended by more than 650 industry stakeholders from 25 countries.

October 2010: The U.S. Navy successfully demonstrates algae-based fuel in a Riverine Command Boat.

November 2010: ABO Executive Director Mary Rosenthal meets with representatives from the White House to discuss the role of algae-based biofuels in the nation’s energy portfolio.

2010 Milestones and Highlights



As the leading trade association for the algae industry, the ABO advocates for federal, state and

local policies that accelerate the commercialization and expanded use of algal-based products.

Early in 2010, the ABO’s Government & Public Relations Committee identified the following as

its key policy priorities and goals:

Financial parity: While the ABO supports technology and feedstock neutrality in all clean

energy incentives, algae is not at parity with advanced biofuels in the current tax code. In order

to continue to attract private investment, algae must receive the same tax incentives, subsidies

and other financial benefits currently accorded to other biofuel feedstocks.

Regulatory parity: Algae must be recognized as an effective carbon reduction strategy and

safe for commercial production under the same regulations governing other traditional

renewable fuel feedstocks.

Parity in the Renewable Fuels Standard: Algae-based fuels are not currently able to be counted

towards the 16 billion-gallon cellulosic carve-out within the Renewable Fuel Standard’s (RFS2)

advanced biofuel mandate. Consequently, all non-cellulosic biofuels, including those derived

from algae, are left to compete for the much smaller (five billion gallon) mandate. This disparity

puts algae-based fuels at a severe disadvantage by limiting the potential market.

Funding parity: Algae currently receive limited programmatic funding compared to other

advanced biofuel feedstocks through the Departments of Agriculture (USDA) and Energy

(DOE) which are the two primary federal drivers of advanced biofuel research, development,

and deployment. While recognizing that cuts must be made across the federal budget, the

ABO supports giving algae funding parity with other advanced biofuel feedstocks.

Inclusion of algae in all agricultural incentives: Algal biomass is a scalable and sustainable

energy crop, producing significantly more fuel per acre than any terrestrial oil seed crop. As

such, the algae industry is developing at the intersection of energy and agriculture, and should

be accounted for in all agricultural incentives, particularly those that will be included in the

2012 Farm Bill.

In the past year, ABO engaged with elected officials and policymakers, educated them on

issues important to our industry, and advocated for the policy priorities outlined above. The

ABO has also benefitted from the tremendous efforts of our members, who have focused their

resources on reaching out to and educating key policymakers directly on the promise of algae

for energy and a range of sustainable bioproducts.

Government Relations



Throughout 2010, the ABO and its members advocated for supportive policy in a host of

ways:

In March 2010, ABO members who attended the Annual Meeting spent the afternoon on

Capitol Hill meeting with elected officials and policymakers and educating them on the

promise of algae. ABO staff and members held more than 20 meetings with members of

Congress, Congressional committees, and representatives from USDA, DOE and EPA.

In July 2010, the ABO submitted comments to the USDA’s Biorefinery Assistance Program.

The ABO urged three key changes that would facilitate private investment and support

commercialization of algae biorefineries: provide more flexible revenue requirements;

increase the amount of loan guarantee available to industry; and remove the citizenship

requirements for borrowing eligibility.

In September, we celebrated the House of Representative’s passage by unanimous consent

of H.R. 4168, the Algae-based Renewable Fuel Promotion Act. While a similar bill was unable

to pass the Senate, we were thrilled by the support from both sides of the aisle in the House.

We continue to work with members of the Senate and their staff to find support for a

companion bill in that chamber.

2010 also saw a major ‘win’ for algae technologies on the regulatory front. In February 2010,

the Environmental Protection Agency issued its Final Rule on the Renewable Fuel Standard

(RFS-2), in which it recognized that algae-based biodiesel and renewable diesel reduce

greenhouse gas-forming emissions by at least 50 percent compared to petroleum diesel.

This reduction in greenhouse gas emissions classifies algae-based biodiesel and renewable

diesel as an advanced biofuel under the guidelines established by the Energy Independence

and Security Act of 2007. This is an important step toward ensuring that algae-based fuels

will be an key component of a national renewable fuels portfolio moving forward.

While 2010 was a year of progress for legislation and regulations beneficial to the deployment

of algae technologies, the 2010 elections resulted in a host of changes in Congress that have

significantly reshaped the prospects for energy legislation. It has also led to calls for proposed

cuts to Federal investments in research, development and deployment of renewable energy

technologies. Moving forward, ABO will focus on educating members of Congress on the

potential of algae and the need for modest, targeted legislation and funding that promote

our industry’s development.

Government Relations



The Algae Biomass Summit

ABO produces and hosts the world’s largest conference focused on algae, the Algae Biomass

Summit (ABS). In September 2010, the fourth annual event was held in Phoenix, Arizona and

was attended by more than 650 stakeholders from more than 25 countries, including lead-

ing technologists, project developers, producers, scientists, investors and policymakers. The

conference also featured keynote remarks from Arizona Governor Jan Brewer, Judy Canales

of the U.S. Department of Agriculture, and both Rear Admiral Philip Cullom of the United

States Navy and retired admiral Dennis McGinn, in addition to more than 70 poster and

speaker presentations.

A pre-conference tour and workshop, made possible through a partnership with ABO mem-

ber Heliae and Arizona State University’ Laboratory for Algae Research, was a resounding

success and sold out well in advance. Attendees were able to attend a morning seminar on

algae technologies and spent the afternoon touring the ASU laboratory and Heliae’s pilot

facility.

In 2011, we will build upon the continued success of the ABS with the 5th Annual Summit

taking place October 25-27, 2011 in Minneapolis, Minnesota. We are currently collaborating

with the University of Minnesota and other leading research institutions to produce a set of

pre-conference tours and seminars while also focusing on creating a pre-conference finance

seminar and pitch session for early-stage algae companies.

The Algae Finance Summit

On May 13, 2010, the ABO hosted an Algae Finance Summit. The day-long event in New York

City provided investors, analysts and fund managers with the information needed to make

informed investment decisions regarding opportunities in the algae industry. It was attend-

ed by more than 50 industry stakeholders, including ABO member companies and investors.

Events



Cash Balance 01/01/2010 $144, 793.57Revenues $670, 374.32Expenses ($778, 014.52)Changes in Accruals $12, 482.022011 Pre-paid Memberships $78, 875.002010 Pre-paid Memberships ($11, 195.00)Cash Balance 12/31/2010 $117, 315.39

ABO derives its revenue through memberships, sponsorships, and special events, including the Algae Biomass Summit, which takes place every year in the fall.

Financial information for 2010 represents audited data. Comprehensive expense reporting is provided to the ABO Board of Directors on a quarterly basis. Details of all ABO expenses are available upon request.

Financial Summary


Revenue $670, 374.32Expenses $778, 014.52Net Income ($107, 640.20)

2010 Income Statement

2010 Cash Flow Summary

2010 Balance Sheet

Checking Account $17, 748.56Savings Account $99, 566.83Total Assets $117, 315.39

Total Liabilities $91, 357.02Total Capital $25, 958.37Total Liabilities and Capital $117, 315.39


2010 Board of Directors

Chair: Margaret McCormick, Targeted Growth, Inc.Vice Chair: Mark Allen, Senior Advisor to BioProcess AlgaeSecretary: Thomas Byrne, Byrne & Company, Ltd.John Benemann, Benemann AssociatesKeith Cooksey, Montana State UniversityHarrison Dillon, SolazymeBill Glover, Boeing Commercial AirplanesIra “Ike” Levine, Aquatic Research Lab, University of Southern MaineGreg Mitchell, Scripps Institution of OceanographyJoel Murdock, FedEx ExpressPhil Pienkos, National Renewable Energy Laboratory John Pierce, Wilson Sonsini Goodrich & RosatiFrank Prautzsch, Velocity Technology PartnersHerminia Rodriguez, University of Seville, SpainElizabeth Willett, Mars Symboscience

2011 Board of Directors

Chair: Mark Allen, Senior Advisor to BioProcess AlgaeThomas Byrne, Byrne & Company, Ltd.Harrison Dillon, Solazyme Bill Glover, Boeing Commercial AirplanesQiang Hu, Laboratory for Algae Research, Arizona State UniversityKeith Cooksey, Montana State UniversityIra “Ike” Levine, Aquatic Research Lab, University of Southern MaineMargaret McCormick, Targeted Growth, Inc.Greg Mitchell, Scripps Institution of OceanographyJoel Murdock, FedEx ExpressJohn Pierce, Wilson Sonsini Goodrich & RosatiHerminia Rodriguez, University of Seville, SpainPaul Woods, AlgenolTim Zenk, Sapphire Energy

Board of Directors



Events CommitteeThe purpose of the Events Committee is organize ABO events, whether such eventsare open to Members only or the general public and to increase or retain membership in the Corporation and otherwise to advance the goals of the ABO. The Committee develops programming for and carries out all logistics relating to the Algae Biomass Summit and all other ABO events.

2010 Chair: Phil Pienkos, National Renewable Energy Laboratory

Membership Development Committee The purpose of the Membership Development Committee is to increase membership in the ABO. The Committee: maintains a list of prospective members; develops web-based content or materials relating to membership; coordinates an annual membership drive; and provide an annual report to the Board of Directors on membership.

2010 Chair: Elizabeth Willett, Mars Symbioscience

Bylaw & Governance CommitteeThe purpose of the Bylaw Review and Governance Committee is to ensure that the ABO’s bylaws are functioning efficiently and in the best interests of the organization. The Committee: consults with the chairperson of each Committee and the ABO Directors from time to time to determine whether amendments to these Bylaws are necessary or desirable.

2010 Chair: Mark Allen, Senior Advisor to BioProcess Algae

Government & Public Relations CommitteeThe purpose of the Government & Public Relations Committee is to increase public and governmental awareness of: the algal biomass industry, its domestic and international benefits, barriers to growth; policies that could accelerate or enhance the realization of such benefits and mitigate or eliminate such barriers; and to generally encourage the growth of the algal biomass industry. The Committee oversees and suggest improvements to the Corporation’s website with respect to public information other than peer reviewed content; coordinates with the Corporation’s public relations and/or government relations consultants to develop appropriate strategies; liaises with other business entities or organizations to discover and act upon opportunities

2010 Chair: Tim Zenk, Sapphire Energy; Vice Chair: Gary Hopper, General Atomics

Committees



Committees

Technical Standards CommitteeThe role of the Technical Standards Committee is to develop, review and comment upon, and advocate for industry standards and best practices for the general benefit of the algal biomass industry. The Technical Standards Committee: develops standards relevant to the algal biomass industry for proposal to standard setting organizations or governmental entities; organizes industry comments and work to influence the creation of standards affecting the algal biomass industry, whether those standards are being created by private organizations or governmental entities; liaises with Members, standard setting organizations and government entities to facilitate the flow of information between stakeholders; and drafts documents explaining new or proposed standards for consumption by Members, government officials, and the general public.

2010 Chair: Jim Sears, A2BE Carbon Capture

Director Recruitment Committee The Director Recruitment Committee recommends to the Board appropriate candidates for election as Directors. It consults with other Directors and Members to seek recommendations of Members that are fit to serve and submits a report to the Board on an annual basis containing recommendations regarding which Members should be nominated by the Board for election as Directors.

2010 Chair: Harrison Dillon, Solazyme

Peer Review CommitteeThe purpose of the Peer Review Committee ensures that publications, articles or other documents endorsed or promoted by the ABO as “peer reviewed” are scrutinized by experts in the relevant fields. The Committee: reviews and comments upon any and all submissions of articles to the ABO for publication on the its website as “peer reviewed” literature or position papers, policy reviews, or other documents commissioned by the ABO; develops a submission process and guidelines for approving such submissions; works to encourage Members and the general public pursuing scientific research or other activities related to the algal biomass industry or the purpose of the Corporation to submit articles for peer review; and recruits and approves third parties to act as peer reviewers.

2010 Co-Chairs: John Benemann, Benemann AssociatesKeith Cooksey, Montana State University



Members

Biotechnology Industry Organization

Platinum

Supporting Organizations

Algae Farm Algaedyne CorporationAlgaeventure SystemsApplied Chemical TechnologyAquatic EnergyAurora AlgaeAustradeBattelle Pacific Northwest DivisionBioalgeneColorado Lining InternationalCombined Power CooperativeDonald Danforth Plant Science CenterEarthrise NutritionalsEdison Materials Technology CenterElectric Power Research InstituteEndicott Biofuels

EvodosFedEx ExpressGreenwater GlobalHarris GroupIncitorIndependence Bio-ProductsInstitut fuer GetreideverarbeitungInternational Air Transport AssociationKent BioEnergyKimberly-ClarkKuehnle AgroSystemsKuraray AmericaMars SymbioscienceMortenson ConstructionMTU Aero EnginesNeste Oil

OpenAlgaeOriginOilPetroAlgaePhyco BiosciencesSFN BiosystemsSolix BioSystemsSiemens Spokane IndustriesSolution Recovery ServicesStoel RivesSynthetic GenomicsThe Mitchell Family CorporationUniversity of MinnesotaVerno SystemsWaste ManagementWorld Water Works

Gold

Corporate

Phycological Society of America


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