September 2017

Single Cell Proteins: “Future-Fit” Ingredients

Protein Challenge:

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The Calysta Opportunity: Enabling Food Security and Sustainability

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Innovative Nutritional Products

®

CalystaProprietary

Fermentation Platform

Naturally occurring microorganisms

Industry leading productivity and efficiency

Traceable throughout the supply chain

Feedstock costs 10x lower than sugar

Sustainable use of land and water

C1 Carbon Sources

®

®

+

Lactic Acid

Methane

Proprietary fermenter design

FeedKind Commercial Samples Shipping Worldwide from Teesside UK Plant for Continued R&D Trials

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• Over 10 tonnes of FeedKind protein already produced in 2017

• Shipping commercial samples to customer and partners worldwide

• Facility is a “scale-down” of the original Tjeldbergodden, Norway reactor, demonstrated to produce at a rate of 10,000 mtpa

• Successful maintenance of 8+ weeks of continuous fermentation, meeting design parameters for key commercial metrics such as yield and productivity

• Partnered with Center for Process Innovation (“CPI”) to provide on site services and well trained staff

Fermenter in Teesside, England.

Ground Has Broken on 1st Commercial Plant in Memphis, Tennessee

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• Collaborating with Cargill on what will be the world’s largest gas fermentation facility, occupying 37 acres of Cargill’s 69-acre property on President’s Island in Memphis

• Modular design lends itself to phased construction process: 20 fermenters, each similar in size to a football field end zone, plus several dryers, each approximately the height of a six-story building

• 20,000 mtpa Phase I coming online 2019, with total production capacity of 200,000 mtpa by 2021

Single Cell Proteins (SCP)

“We No Longer Need Fishmeal”

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Salmon Industry

Shrimp Industry

• Collectively using ~500,000 tonnes fishmeal a year

• Replace fishmeal with soy + fishmeal hydrolysate and/or krill meal

• Fishmeal remains an ingredient with a beneficial cost/value relationship

• There’s nothing wrong with fishmeal from well-managed fisheries

• Reducing fishmeal, but replacing with soy + krill meal, squid liver powder, and/or squid meal

How Many Ingredients are Entirely Produced for Aquafeed?

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Ingredient Primary Productor Byproduct?

Primary products produced

Fishmeal Core Aqua Feed, Pig Feed

Fish oil Core Aqua Feed / Human Nutrition

Wheat gluten Byproduct Flour

Corn gluten Byproduct Corn Sugar / HFCS / Ethanol

Soy Protein Concentrate

Byproduct Soybean oil

DDGS Byproduct Ethanol

Single cell proteins are purpose-made for the aquaculture industry

Millions of People Already Eat Single Cell Proteins Every Day

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Many types of Single Cell Protein with a Wide Variety of Nutritional Values

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Protein content

ProteinDigestibility

Fiber Content Omega-3 Oils

Bacteria 60-75% ++ <1% GMO Only

Filamentous Fungi

40-50% + 20-30% No

Yeast 20-50% = 10-50% GMO Only

Microalgae 10-30% − 10-50% Yes

Multiple Carbon Sources for SCP Production

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Carbon/Energy Source

Pros Cons

Sugar• Mass transfer is easy• Simple plant design

• Land use, water use• Competes with human food

chain and biofuel market

C1 (Methane, methanol, CO, etc.)

• Entirely additive to the human food chain

• Mass transfer can be difficult• Proprietary plant design

Autotrophic• Additive to the food chain• Renewable

• Land use, water use• Biosecurity

FeedKind and Trial Results

• Naturally occurring microorganisms metabolize

methane as their sole source of carbon and energy,

producing a nutritious, high-protein biomass

• Does not compete with the human food chain freeing

up other feedstuffs for direct human consumption

EU Register of Feed Materials, 2013:

is a natural, non-GMO protein source®

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Calysta production process

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Leading Sustainability Credentials

15Sources: USDA; FAO, WHO, UNICEF Protein Advisory Group (2004);DuPont Solae, Calysta Calculations

Specific growth rates

No change in growth rate, with significant improvements in feed conversion ratios

• Rainbow trout Oncorhynchus mykiss fingerlings 62g start weight, 186g end weight (49 days). 30 fish per tank, 3 tanks per group.

• Comparable specific growth rates 2.2% to 2.3% of body weight per day with no statistically significant difference between treatments.

• Across treatments variance in fish weights was constant

• At all FeedKind protein inclusion levels, feed conversion ratios improved by 8-9%

• All treatments were significantly different from the control group (p < 0.05)

1.00

1.50

2.00

2.50

Control FeedKind10%

FeedKind25%

FeedKind35%

Ave

rage

Dai

ly G

ain

(%

)

0.6

0.8

1.0

1.2

Control FeedKind10%

FeedKind25%

FeedKind35%

* * *

Feed Conversion Ratios

* p<0.05 vs control

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Feed Protein (%) Lipid (%)

CTRL 34.48a 67.36a

FK10 38.53a 78.11b

FK20 38.26a 79.28b

FK35 38.27a 88.89c

Nutrient Retention

60

70

80

90

100

110

Control 1.5% 3.8% 7.5% 11.3% 15.0%

Bio

mas

s /g

% FeedKind

75

80

85

90

95

100

Control 1.5% 3.8% 7.5% 11.3% 15.0%

Surv

ival

(%

)

% FeedKind

Average Biomass per Tank

Survival

Vannamei shrimp: Improved Biomass Production at Low Inclusions, Equivalent at High

• 10 juvenile shrimp per tank, 5-6 tanks per treatment

• Low inclusion levels showed significant increases in total tank biomass

• Highest inclusion levels were equivalent to fishmeal based control

• No negative effects on seen on survival highest inclusion levels

* * *

* p<0.05 vs control

*

**

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Seriola lalandi (hiramasa): Measuring specific dynamic action with Stanford in Monterey Bay

• Conducted by Stanford in Monterey, CA using research material from our lab

• Respirometry study measuring dissolved oxygen and water temperature to determine specific dynamic action or the metabolic load required for digestion

• 4 diets with increasing percent of FeedKind protein replacing fishmeal one for one

• Highest inclusion level replaced 50% of fishmeal

• 1 tank per diet treatment and 6 fish per tank

• Fed 2% of body weight every second day for 80 days

• FeedKind protein was associated with improvements in efficiency of digestion

Specific dynamic action

0

2

4

6

8

10

12

14

control 5% 15% 29%

% o

f D

ieta

ry E

ner

gy

% FeedKind protein

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The highest inclusion of FeedKind protein had a statistically significant improvement in surface area

• First indication that FeedKind protein can enhance an already healthy guy

• No signs of enteritis in any groups

• Provides a scientific basis for the improvement in fat absorption of total feed

Seriola lalandi: Measurable improvements in gut health

Mucosal fold area

0

0.1

0.2

0.3

0.4

0.5

OBM 10BM 25BM 50 BM

Are

a m

m2

% FeedKind protein

*

* p<0.05 vs control

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Specific protection of DHA in fillets by inclusion of FeedKind protein across two species

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• Loss of omega-3 from replacement of fishmeal in diet

• Significant decreases in EPA content of fillets correlating to loss of EPA in diet

• No significant decrease in DHA content of fillets

Single Cell Proteins: “Future-Fit” Feed Ingredients

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• Single cell proteins come in many different forms

• Shouldn’t be viewed as a fishmeal replacement, but alternative protein with its own value proposition

• Significant functional feed benefits seen in variety of species and inclusion levels

• Gut health and functional benefits may be due to relatively high levels of lipopolysaccharides, nucleotides, and glutamine present in FeedKind protein