MBD Removing - PowerPoint Presentation

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MBD

Removing

nitrogen with algae - a win win bioremediation strategyLow cost technology – delivering zero net discharge

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MBD Vision:

The deployment throughout Asia of MBD’s disruptive technology over a wide range of agricultural, mining and industrial applicationsSlide2

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.

Disclaimer

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© MBD Limited 2015Slide3

MBD Energy Limited

Access to

w

orld 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 deliverWe have assembled an experienced, integrated scientific, engineering, project development and construction team to deliver our projects.

Knowledge, expertise and business model

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Shandong

Ocard (China)

Peace River Mine (B.C. Canada)Pacific Reef Fisheries

Strategy – Strong Business Partners

MBD Energy Limited

Principal Research Partners:

Cornerstone Investors:

Key Project Partners:

Tarong Power Station

Loxley,

Bangchak

and

Ratchaburi P.S, (Thailand)

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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.

Extensive R&D background

R&D Centre of Excellence

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Is multi-cellular

Requires lower technology / system inputsProduces bio-mass based commodities, largely for food and energy markets

Has efficient growth with higher densityCurrent seaweed aquaculture industry is valued at greater than A$8 billion paWe are investigating the use of biomass in human food, animal feed and bio-fuel trials

Two algae types - many species

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

Micro Algae

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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.Aquaculture Bioremediation

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© MBD Limited 2015Slide8

Pacific Reef Fisheries Project

Nutrients

Nitrogen

Phosphorus

Current full scale module site

Initial trial operation

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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%)

Zero Nett gain

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.

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Pacific Reef Project – How it works

Prawn & Cobia water discharge

Nitrogen

level

:

1.1mg/l – 1.4mg/lOcean Intake WaterNitrogen level: 0.35mg/l – 0.5mg/l

Sand Filter

The sand filter performs

two key

roles:

- The

removal of suspended solids

- The

conversion of organic N

to inorganic

N.

Sand Filter

Conversion of Nitrogen

(organic to inorganic N)

Algae Ponds

Nitrogen

level

:

0.15mg/l – 0.2mg/lOcean InletWater is pumped into the prawn farm direct from the ocean inlet. Nitrogen levels vary based on cane farm and animal farming cycles.Prawn farmingThe water is used by the prawn farm to grow prawns and fin fish. Both increase the level of nitrogen in the water.Water StorageWaste water from the farm is then collected in a central storage dam. The water is high in organic and inorganic nitrogen.Algae PondsThe 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.

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Pacific Reef, N - remediation performance

© MBD Limited 2015

Average N remediation: 185kg ha

-1 month-1Average P remediation: 15kg ha-1 month-1Slide12

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N - remediation performance

© MBD Limited 2015

Ratio of Prawn to Algae PondsSlide13

Industry Impact – clean water, high quality products

Productivity

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.

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. RemediationThe 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) Products 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

Key facts and metrics

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.

This has resulted in no new farm permits being issued for the last 15 years

.

Pathway for Aquaculture Industry expansion

MBD’s low cost bioremediation technology provides a cost effective pathway for the Aquaculture Industry in Australia and throughout Asia to expand.13Commercial-In-Confidence© MBD Limited 2015Slide14

Integrated Concept

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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

)Slide16

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Ulva ohnoi

inclusion in prawn feed

Results

No difference in zootechnical parameters to controlSignificantly higher phenoloxidase (free & total) activity

Significant higher survival to pathogen (

V.

parahaemolyticus

)Slide17

Astaxanthin

Project

Value

MBD grows and harvests the astaxanthin.

The astaxanthin is a natural red pigment and is also a highly active antioxidant. The wholesale value of the Haematococcus algae ranges between US$200 and US$500/kg depending on pigment concentration. MBD’s

experience over the last 12 months is that the astaxanthin yield has remained at the higher end of this range. Current markets

Natural Astaxanthin is increasingly

being used

in the

aquafeed

,

nutraceutical

and functional food industry.

The

global

aqua feed

market was estimated at

US$55Bn

in 2012 with

a compound

annual growth rate of 12%

through

to 2018. 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. Value and marketsAquafeed /Animal Feed The fastest growing sector in the world food economy is aquaculture. Natural astaxanthin is fed to farmed fish particularly Salmon.Food and Functional Food 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.Dietary supplementsWith 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.Pharmaceutical, Cosmetics 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.17Commercial-In-Confidence© MBD Limited 2015Slide18

The next 12 months will see progress on the following projects, each offering strong prospects to expand MBD’s technology:

ThailandMajor 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 Energy Limited

Wider development program

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© MBD Limited 2015