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HR BioPetroleum FAQ

If you have further questions beyond those covered in the FAQ, please feel free to contact us and we will get back to you as soon as we are able. Thank you

1. What is unique about HR BioPetroleum? Don’t others already farm microalgae and extract oil?

A. There is a lot of algae research going on at laboratory-scale. There is some commercial algae production of products other than feedstock oil, and there are some algae players engaged in pre-commercial development activities.  However, no other algae company has successfully built or operated a commercial-scale algae facility for the production of vegetable oils feedstock for biofuels.  HRBP is not aware of any other algae company with as significant a joint venture as HRBP’s joint venture with Shell for the advancement of the company’s technology and potential commercial deployment. HR BioPetroleum has proven experience in cultivating algae at large scale. HRBP also has superior proprietary technology for its photobioreactors (PBRs) -- the clear plastic tubes where the “seed algae” are cultivated. Another clear differentiator is the expertise of HR BioPetroleum’s top microalgae scientists.

2. You say a key advantage is that microalgae are extremely fast growing. What are the potential yields?

A. Algae can double its mass twice a day. In tons of vegetable oil per hectare per year, microalgae can produce greater than 15 times more than terrestrial oilseeds and other crops such as rapeseed, palm, soya or jatropha.

3. Can microalgae be grown in the ocean?

A. It is possible, but conducting commercial algae farming in the open ocean would be technically very difficult. Seawater ponds, or ponds supplied by brackish water, however, can theoretically be constructed on any coastal land – marginal, desert, fallow, industrial brownfield – freeing up land and fresh water needed for food production.

4. How much CO2 might a commercial algae facility convert each year?

A. A very rough calculation would be a minimum of 250,000 tons of CO2 per year captured by 1,000 hectares (roughly 2,500 acres) of algae, for a coal-fired or diesel-fired power plant. So a very large commercial facility, say 20,000 hectares (roughly 50,000 acres), could perhaps capture 5 million tons of CO2 per year. This calculation will be further refined during the joint venture demonstration phase.

5. Will HRBP employ molecular evolution techniques to create genetically modified microalgae?

A. No. HR BioPetroleum intends to use natural strains of microalgae, which are plentiful and should more easily receive governmental and public approval.  If further improvements in performance are desired, HRBP intends to employ traditional selective breeding techniques that have been successfully used by farmers for thousands of years.

6. Are there any chemicals used to grow the microalgae?

A. Microalgae is a marine plant and HR BioPetroleum cultivates it by using local seawater or brackish water, the sunlight, and CO2. Additional nutrients will also be introduced (primarily nitrate and phosphate).

7. What would be the consequence if the microalgae get into the ocean?

A. It is extremely unlikely that large quantities of algae will be re-introduced to the ocean. However, if it did happen, the microalgae HR BioPetroleum is growing would be at home in the water because it is a natural, indigenous species. They would have to compete for food and other resources with other plants, and most would die in a short time, just as occurs in nature every day.

8. Is there any possibility that nutrient from the facility will cause eutrophication of the surrounding seawater?

A. The water in the ponds is contained by impermeable material and will not penetrate the soil. The algae will consume all the nutrient in the water, which is under strict process control.  In fact, nutrient deprivation is one of the keys to maximizing oil production within the algae.  Accordingly, HRBP expects that any water returned to natural sources will be depleted of all of the nutrients, and any such water will be monitored so that any residual nutrients can be easily detected.

9. What is the connection with and involvement of MERA Pharmaceuticals?

A. MERA is a minority shareholder of HR BioPetroleum. Its facility is at NEHLA and has algae cultivation ponds up and running. HR BioPetroleum has leased some of these ponds for its pilot facility, which it has operated for several years.

10. Are you looking for investors? What is your plan for the company?

A. HRPB is a privately held company and is currently looking at a variety of opportunities.