Commercialization

Once our Pilot-scale Integrated Biorefinery is operational, Algenol will demonstrate the commercial viability of the modular and scalable DIRECT TO ETHANOL^® technology to project developers, potential licensees and potential equity joint venture partners. We will provide critical equipment, expertise and know-how to each of our partners, equity joint ventures and other licensees.

We have licensed the DIRECT TO ETHANOL^® technology. One of these licenses is with BioFields S.A.P.I. de C.V. in Mexico. BioFields has access to over 55,000 acres of non-arable land in the Sonoran desert in Mexico near a Comisión Federal de Electricidad (CFE) power plant. The area has access to navigable waters for transportation to the United States and growing ethanol markets in South America. BioFields is expected to obtain the necessary environmental approvals in 2012 to start construction of a DIRECT TO ETHANOL^® project.

We also are discussing commercial DIRECT TO ETHANOL^® projects with several others in the United States, Asia, South America, Africa and Europe.