Final Draft

AProposalinResponsetoCalifornia’sPIER
Natural Gas (PIER-NG) Program
Grant Solicitation for Natural Gas Replacement Alternatives
Biogas and Hybrids
The Use of Solar Energy in Flue Gas Scrubbers,
Algal Bioreactors, and Secondary Processing of
Algal Biomass to Convert Coal Plant
Flue Gases into Biomethane
Grant Funding Requested: $395,000
Project Total Funding: $500,000
Xtreme Energetics, Inc. (XE)
Lead Investigator: Dr. Leo D. DiDomenico
Project Manager: Dr. Michael S. Atkins
5563 Jacquiline Way, Suite 18
Livermore, CA 94550
Tel: (925) 606-6951
Fax: (626) 602-8392
Leoddd@ Extreme-Energetics.com
Date: 2007 February 6

The Use of Solar Energy in Flue Gas Scrubbers, Algal Bioreactors, and Secondary
Processing of Algal Biomass to Convert Coal Plant Flue Gases into Biomethane
Xtreme Energetics, Inc. Page 2 of 30
2) Abstract/Summary
Project Description: Xtreme-Energetics, Inc. (XE) proposes phase one research that
modifies and tests our proprietary light guide technology to uniformly dispense, and not
just convey light throughout an innovative, optically dense bioreactor that optimizes algal
growth and biomass output. Our project will show how our unique solar technologies
can support sequestering of 90 percent of the carbon emitted from conventional coal fired
power plants. Solar energy can energize flue gas scrubbers, supply 24-hour lighting to
algal bioreactors for CO2 sequestration, and provide heat for secondary processing in a
way that maximizes algal biomass into biomethane. The rendered biomethane may be
sold or used on-site as a fuel source for a cogeneration power plant co-located with the
existing carbon fueled power plants or other point source emitters of greenhouse gases..
Energy Problem Targeted: XE will reduce or replace existing natural gas applications
and dependence on foreign sources of natural gas in California by developing and
demonstrating advanced, cost-effective, and environmentally friendly renewable energy
technologies. Specifically, we propose to use our novel solar technology to bolster the
use of existing coal-fired power plants supplying low-cost electricity to California while
simultaneously reducing or eliminating carbon dioxide, carbon monoxide, nitrogen
oxides, sulfur oxides, and particulate matter from power plant emissions.
Project Goals: XE will develop integral components of our controllable, highly efficient
bioreactor lighting technology to maximize algal growth and biomass output for later
conversion to biomethane. Our specific goals during this phase will be to design, model,
construct and bench test: 1) a novel, closed-loop algal bioreactor with 2) a prismatic light
guide/diffuser to deliver optimal sunlight within the bioreactor and a 3) a method of
using artificial light sources to maintain, consistent 24/7 bioreactor operations.
Project Duration: This proposal is the first of three phases and is 12 months in duration.
The second and third phases will take up to five years. The anticipated second phase
consists of building and testing a prototype of the bioreactor system. The third phase
consists of testing and implementing a pilot plant operation at an existing power plant.
Funding Requested: XE requests $395,000 in funding from the CEC to support a
$500,000 research effort. XE will supply the balance in part through in-kind services and
use of facilities and in part as a cash contribution to the project. All work under this
proposal will be performed in California. Upon successful completion of this phase one
research, XE will seek additional CEC and project sponsor funding from major investor
and municipal utilities having significant stakes in coal, oil and natural gas fired power
plants to pursue subsequent staged prototype and pilot plant development efforts..
Project Budget:
Uses Total ($) Percent Total CEC Share ($) XE Share (S)
Salaries 305,000 61.0% 236,375 68,625
Other 39,750 8.0% 18,406 21,344
Vendors 90,000 18.0% 90,000 0
Indirect Costs 65,213 13.0% 50,540 14,673
Project Total 499,963 100.0% 395,321 104,642

3) Current Status of Research
Research into the use of emissions from coal, oil or natural gas fueled power plants to
produce algae-derived biofuels is primarily concerned with maximizing algal biomass by
optimizing parameters of algal growth. Generally, the parameters to be optimized are:
 The uniform delivery and distribution of factors required for growth within an
open- or closed-loop bioreactor (CO2, nutrients, and light energy)
 The quality of CO2 sequestered from emissions
 The efficient secondary processing of algal biomass into biofuel(s)
The first applied use of emission products from coal fired power plants dates back to
1978whentheU.S.DepartmentofEnergy’sOfficeofFuelsDevelopmentfundedthe
Aquatic Species Program (ASP) to develop renewable transportation fuels from algae (1).
The initial focus of ASP was on the production of hydrogen, but the emphasis switched to
biodiesel and eventually bioethanol. The ASP tested over 3000 species of algae and made
many lasting contributions to current state-of-the-art in renewable biofuels technology.
Among the important contributions from the ASP was the development of shallow, open-
loop“raceway”pondsthatultimatelyachievedgreaterthan90%utilizationof
sequestered CO2(2).The“raceway”developedbyASPissignificanttocurrentstate-of-
the-art because it remains one of the most effective designs at maintaining a uniform
distribution of abiotic and biotic components to improve algal growth rates, and it can be
modified by maintaining a constant flow rate to yield a continuous culture to maximize
biomass output.
The open-loop system has several disadvantages, however, that have focused current
research on closed-loop systems (3, 4, 5, 6). The main disadvantages center around the
lack of control over exogenous factors such as light input, gas exchange, temperature, and
even contamination by airborne competitors. Open-air systems generally require much
more land space and, especially in arid regions, have high evaporative water loss relative
to closed-loop systems. Significant advances in state-of-the-art have been made using
closed-loop systems optimized with regard to bubbling sequestered CO2 and nutrients
into bioreactors to improve algal growth (7, 8, 9). Biomass production rates of two times
ASP peak values have been reported with contemporary systems (10) (see Table 1). Such
improvements are thought to optimize algal growth given uniform, controlled lighting.
Significant research also has been done to improve lighting within closed-loop
bioreactors using fluorescent bulbs (11) and fiber optic cables to deliver natural sunlight
(7, 12). The use of solar-based lighting is favored because the energy requirement is
decreased relative to the use of electric fluorescent bulbs. However, the use of fiber optic
cables presents a barrier to the advancement of the technology because the transport
mechanism for the light is limited to shorter distances with lower efficiencies relative to
the technology we are proposing to use, namely prismatic light guides (13, 14). The
reason for this lies in certain intrinsic properties of fiber optic cables. In its most basic
form, a fiber optic cable consists of a glass fiber comprised of an inner core and an outer
cladding of glass. The inner core has a refractive index slightly higher than the inner core
of the fiber. Light that is launched into this type of structure can reflect multiple times as

it transits down the guide in a process called Total Internal Reflection (TIR). The TIR
process provides a near loss-free reflection of the light down the guide. Unfortunately, a
fiber optic cable still has significant loss due to absorption of the light in the glass over
the wide bandwidth of the visible spectrum. This is why transatlantic cables use a narrow
band of laser light, which has been selected carefully to allow long distance propagation
in a fiber with little loss. Visible light typically has 1000 dB/Km of loss compared to less
than 1 dB/Km for a narrow band fiber. In short, a fiber optic cable has excellent reflection
properties because it uses a TIR process, but it also has poor bulk loss characteristics due
to the intrinsic loss properties of all glasses over the wide bandwidth of visible light.
The other extreme of light guiding occurs when the internal bulk glass is removed
completely to make a hollow core pipe that has mirrors around the inside. In this case the
hollow core has excellent transmission properties, but the mirrors do not. Typically, a
good mirror loses about 5% of the light for each reflection. In a light guide where many
thousands of bounces are required, the radiant energy is quickly extinguished to a very
small fraction of the input intensity. For instance 3M manufactures a light guide of this
type with a maximum length of 65.6 feet (20 meters) illuminated with a 1000 watt lamp
(3M’sLPS250 Light Pipe System). The maximum for their LPS150 Light Pipe System is
64 feet (19.5 meters) illuminated with a 575 watt lamp (31).
Clearly, what is needed is a light guide with the TIR properties of a fiber optic cable and
the bulk properties of a hollow light guide. This is approximately found in prismatic light
guides. The inner part of the guide is hollow and the outer part of the guide is composed
of glass with prisms facing outward. The glass is very thin so that the total amount of
time that light spends in the glass is very small and this leads to low bulk absorption
losses. The prisms are designed to provide the needed TIR condition and light is reflected
back into the guide with almost zero loss. Prism light guides are not new; however, they
have not been perfected due to the need to make the prisms very accurately. Typically the
shape of the prisms cannot change by more than one part in 5000 in order to have long-
distance low loss propagation of about a Km with only 10% loss in the guide. XE has
patented a original light guide design and will implement a series of innovative new
manufacturing techniques to achieve the required level of optical quality needed to obtain
the distance and loss characteristics for the first phase of this project: delivering a
uniform distribution of sunlight to the bioreactor.
In this proposal, XE will design prisms with a known perturbation to permit light to
diffuse out of the guide at an optimal intensity and orientation for maximal algal growth
and biomass output. This can be achieved by rounding the apex of each of the prism
facets and will result in a controlled energy transfer process. (Figure 1 illustrates this
principal andshowsXE’s light guide). Algae’sdesired radiation absorption requires 50-
250 micro Einstein per m2
per second or about 15 percent of one sun radiation at 1700
uE/m2
s-1
(microeinstein is a measure of plant absorption and is equivalent on land to1/5
of a watt/m2
) The keyresearchgoalistocontrolthelightguide’sopalescence to provide
uniform illumination through the raceway’swalls and within the bioreactor itself. The
variation in lighting is required to offset absorptive losses from the nutrient mix (dCO2,
dO2 (air), nutrients) at varying cell densities within the bioreactor.

XE has patented and proposes to refine (e.g. CEC/PIER BERG 06-01B) its innovative
design for conveying highly concentrated sunlight (up to 1,000x) gathered from an
appropriately sized solar collection field. State-of-the-art light guide technologies
(includingfiberoptics)cantransmitlighttoabout15meterswitha96percentloss.XE’s
prismatic light guide will convey light over 250 meters with only a 10 percent loss. This
project represents the next logical step to advance the state-of-the-art by developing a
better lighting system capable of delivering and uniform ally disbursing natural light to
deep within closed-loop bioreactor tanks and raceways. Furthermore, using high
efficiency sulfur bulb lighting (15, 16) filtered to produce optimized wavelengths, we can
provide continuous solar-powered illumination 24/7 that is independent of the time of day
or prevailing natural lighting conditions.
The quantity of CO2 sequestered from emissions is a parameter we will address in a
subsequent phase of this research. Preliminary calculations show that up to 90 percent of
the flue gas carbon emissions can be sequestered as waste solids and biomethane. Coal
plant emissions contain very large quantities of carbon dioxide, and much smaller
quantities of carbon monoxide (CO), nitrogen and sulfur oxides (NOx and SOx), as well
as metals and other particulate matter (PM). Researchers have shown that bubbling
unscrubbed flue gases through bioreactors does not inhibit algal growth because the
concentration of CO2 is normally several thousand times that of the other noxious
compounds (1, 17, 18). However, once flue gasses pass through the bioreactors and the
CO2 is utilized during photosynthesis, the other pollutants are released directly into the
atmosphere. Therefore, pre-scrubbing remains the best option for meeting California Air
Resources Board (CARB) standards. Several state-of-the-art technologies exist to scrub
coal plant emissions (5, 19) that meet or exceed existing CARB standards for the
reduction of CO, NOx, and SOx. We will propose to link the same solar collector field,
used to deliver natural sunlight to our bioreactors via prismatic light guides, to run a
state-of-the-art scrubber, thereby increasing efficiency of the system as a whole.
Secondary processing of algal biomass into biofuels is another parameter we will address
in a subsequent phase of this research. The concept of producing biomethane from algae
was first proposed in the early 1950’sasaprocessinwhichwastewatercouldbeusedas
a medium and source of nutrients for algae production (20). Although the ASP never
fully explored the production of biomethane from algae, it almost certainly served as a
springboard for later efforts. However, the development of biomethane technologies
generally has been limited to terrestrial sources of biomass (21, 22) and waste (23, 24), or
it has remained descriptive rather than implemented within industries using algae (7, 9,
25). Several groups have nascent or developing algae-to-biomethane capability, but to
date none are reported to be in operation (7, 9). Current state-of-the-art is focused on
production of bioethanol and biodiesel fuels. These fuels utilize subfractions of total
biomass, whereas biomethane technology utilizes total biomass and is therefore
considered to be a more energetically efficient process resulting in increased energy
output at decreased cost (26).
Enriched biomethane (< 92%) can be piped directly into the existing natural gas grid (26,

27). Alternatively, the biomethane can be used to fuel an Integrated Gasification
Combined Cycle, or IGCC power plant as a source of clean electricity. The biomethane is
produced in a digester unit, stored on-site, and built for use as the fuel for Combined
Cycle electricity generation purposes, hence the name ―Integrated‖. Steam generated by
waste heat boilers of the gasification process is utilized to help power steam turbines. Our
proposed bioreactor, algal digesters and scrubbers may be considered the ―chemical
plant:‖that refines the biomethane in the way existing syngas chemical plant fuel existing
IGCC power plants. Our solar sunlight collection system coupled to the waste heat from
the coal and cogen turbines supplies the energy that drives the chemical plant’s carbon
sequestration and biomethane conversion.
Table 1. Comparison of current state-of-the-art commercial projects with theDoE’sAquatic
Species Program (which remains the most extensive and well documented project to convert
power plant flue gases into biofuels) and this project proposed by XE. This table compares
parameters considered to be important to the current status of the research: 1) bioreactor type; 2)
open- or closed-loop system; 3) batch or continuous culture; 4) organism(s) used; 5) quality of
flue gas; 6) lighting; 7) hours of CO2 sequestration per day; 8) biomass output; 9) biofuel
production rate; 10) percentage of CO2 sequestered; 11) cost per unit CO2 sequestered.
Information from (1, 9, 28, 29). Our calculations are available on request.
DOE Aquatic
Species Program
Xtreme
Energetics, Inc.
GS CleanTech
GreenFuel
Technologies, Inc.
1
shallow, open ponds
and raceways
main "seed" tank and
raceway in one combined unit
organisms grown on screens
sprayed by growth media
not available
2 open closed closed closed
3 batch
batch (main tank) & cont.
(raceway)
continuous batch
4
over 3000 species of
algae were tested
algae cyanobacteria algae
5
tested both scrubbed
and unscrubbed gases
scrubbed to meet CARB
standards
partially scrubbed to remove
"fly ash"; CO2 and some NOx
CO2 and some NOx
6
natural, incident
sunlight
solar collector,
XE's prismatic light guides,
sulfur bulbs
parabolic dishes & fiber optic
cables
Undisclosed
(solar collector
& fiber optics?)
7 up to 14 24 up to 14 up to 14
8 50 g m-2
day-1 82 kg m-2
day-1
(calculated
from MGS output)
60 g m-2
day-1 100 g m-2
day-1
(target)
9
primarily biodiesel (no
output value reported)
17 kg CH4 m-2
day-1
(calculated from MGS
output)
0.5 L biodiesel or
0.5 L bioethanol
m-2
day-1
0.02 L biodiesel +
0.02 L bioethanol
m-2
day-1
10
> 90% from
carbonated water tanks
75% (calculated from MGS
output)
up to 100%
80% from
1,040 MW plant
11
$77-$100 mt-1
CO2 sequestered
15% less than
best available
not available not available

We propose to increase penetration of biomethane technology into the marketplace by
developing solar-powered filtration and anaerobic digestion steps during secondary
processing of algal biomass into biomethane. Biomethane end-products may also be used
to fuel a cogeneration energy facility. Based on preliminary calculations, the system we
are proposing can be scaled up to fully sequester the 7 kilotons of carbon once produced
each day at a facility such as the Mohave Generating Station (MGS) in Laughlin, Nevada
during its peak production (this plant was closed in 2005 due in part to its failure to meet
emission standards). We calculate a yield of one kiloton of biomethane per day for an
additional energy potential of more than 400MWe installed that can be obtained from a
co-located steam turbine cogen plant. A system schematic is shown in Figure 2.
4) Discussion of Project Compliance with Latest CARB Standards
The proposed technology will meet and may even exceed the latest (2007) California Air
Resources Board (CARB) standards, by leading to significant reductions in carbon
dioxide (CO2), carbon monoxide (CO), nitrogen oxides (Nox), sulfur oxides (Sox), and
particulate matter (PM) from power plant emissions. We aim to achieve this goal by
developing technology that uses a renewable resource, solar energy, to run flue gas
scrubbers, supply lighting to algal bioreactors for CO2 sequestration, and supply energy
for secondary processing of algal biomass into biomethane as the primary fuel source for
a cogeneration power plant. Unlike competing technologies, our design allows for greater
reductions due to 24/7 operations (see Table 1).
The CEC through EISG co-fundingissupportingXE’sdevelopmentofaninnovative
fluidic tracker (EISG 06-01-12) that enables high concentration of solar energy in a flat-
panel design without need of costly mechanical structures. The resulting solar flux can
be distributed over long distances for use as full-spectrum lighting or converted to heat
and/or electricity. Although we propose producing biomethane as the feed-stock for
electricity and heat production in a standard cogeneration plant, XE envisions solar
energy as the primary power input for its scrubbing and sequestration designs.
The applied use of algal bioreactors to sequester CO2 from flue gas emissions using
sunlight as the energy source is a natural sink of industrial CO2, resulting in a significant
decrease in the release of this greenhouse gas into the atmosphere. Instead, sequestered
CO2 is converted into algal biomass that, in turn, is converted into cleaner burning
biofuels, fertilizer or animal feed and waste sludge. Solar energy also will be used to run
selective catalytic reduction (SCR), selective non-catalytic reduction (SNCR), and
nonselective catalytic reduction (NSCR) scrubbers to remove up to 95% of NOx
compounds. The remaining nitrogen may be utilized by algae in the bioreactors, resulting
in up to 100% removal of NOx. Similarly, fluid-bed limestone SOx scrubbers, carbon-
injection Hg scrubbers, CO scrubbers, and PM scrubbers will be developed to utilize
solar technology to remove these compounds from plant emissions as well.

This project is consistent with the passage of new landmark greenhouse gas reduction
legislation signed by Governor Schwarzenegger in January 2007 that:
1) requires investor owned utilities such as Pacific Gas and Electric, Southern California
Edison, and San Diego Gas and Electric to have 20 percent of its electricity come from
renewable sources by 2010. Previously, state law required that this target be achieved by
2017 (SB 107);
2) requires the California Energy Commission to study and make recommendations for
capturing and storing industrial carbon dioxide (AB 1925);
3) authorizes the Wildlife Conservation Board to use policies, protocols, and other
relevant information developed by the California Climate Action Registry in determining
a project's potential to reduce or sequester greenhouse gas emissions (SB 1686).
5) Description of Targets, Quantified Technical and Economic Goals
We will use Femlab and Rayica software to design and model integral components of our
technology based on application to the Mohave Generating Station (MGS). Our specific
goals during this phase will be to design, model, construct and bench test: 1) a novel,
closed-loop algal bioreactor with 2) a prismatic light guide/diffuser to deliver optimal
sunlight within the bioreactor and 3) a method of using artificial light sources to
maintain, consistent 24/7 bioreactor operations. We will develop a project design based
on emissions at MGS that will detail within a 10 percent error rate the anticipated costs of
the complete system. We will develop carbon and energy input/output models within 10
percent of the expected error rate.
The Quantified Technical Objectives of our proposal are to:
i. Based on the MGS specifications, model a 20 MW (PV equivalent), 62,500 square
meter (250m x 250m) field of fixed-axis tracking solid angle solar collectors up to
500 meters distant and generate 392 MW of electrical power from a conventional
steam turbine power plant fueled entirely from bioreactor produced biomethane;
ii. build and bench test a two meter long raceway segment with a 100% uniform
luminosity within an optimized frequency range as a proof-of-concept of a design for
the bioreactor and raceway from a light emitting tube of optimized dimensions;
iii. reduce 92 percent of total MGS CO2 emissions or approximately 82 kg of carbon
per square meter of solar collector per day;
iv. design a solar enabled means of scrubbing greater than 75% of the carbon monoxide
(CO), nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM) based
on the MGS emissions profile to meet or exceed CARB standards;
v. produce 0.75 kg of algal biomass per kg of CO2 sequestered;
vi. produce 0.12 kg of biomethane per kg of CO2 sequestered;
vii. demonstrate that for each kg of biomethane, 0.64 kW of electricity or 0.61 Btu s-1
of
heat per day can be generated using a natural gas fired co-generator;

viii. Demonstrate that the co-generationplant’s609metrictonsofcarbon released per
day will also be recycled.
The Quantified Economic Objectives of our proposal are to:
i. demonstrate a self-sustaining algae producing solution for the production of
biomethane solely from coal fired power plant emissions characterized by a
continuous growth algae culture, power plant emission derived nutrients, natural
light from solar collectors, and electricity for pumping, nighttime lighting, motors
andotherparasiticpowerrequirementsfromthecogenerationplant’soperation
ii. design a closed loop facility consisting of a solar collecting field, light distribution
bus, NOx/SOx scrubber, a bioreactor with closed growth raceway, biodigester, gas
storage facility, sulfur lighting equipment, and cogeneration plant that will pay back
its initial costs from resulting electricity sales within seven years of its
commissioning.
6) Work Statement
Xtreme-Energetics, Inc. (XE) proposes research that will answer key technical questions
concerning how best to deliver uniform solar lighting to closed-loop bioreactors to
optimize algal growth and biomass output for conversion of power plant emissions into
biomethane as the primary fuel source for a co-located cogeneration power plant. Our
proposedresearchappliesXE’sinnovativeprismaticlightguidesandisbasedonour
expertise in growing algae. As part of this project we propose to develop and bench test a
new type of bioreactor raceway that maximizes methane production from bubbled,
carbon dioxide-rich flue gasses.
To achieve this goal and to meet the clean air objectives for CO2 emissions, XE is asking
the State to assist in completing development of its light dispersion technology such that
light is uniformly distributed along the bioreactor raceway and within a new and
innovative bioreactor design. Our research, therefore, is in three parts: The first part is to
develop, build, and bench test the architecture that distributes light within the bioreactor.
The second part is to design and demonstrate the cost effectiveness of emissions
scrubbers. The third part is developing solar-based methods for secondary processing of
algal biomass produced in the bioreactor.
Below is a list of each task to be completed during the course of this project:. A work
flow diagram is shown in Figure 3.
TASK 1.0 Administration
Task 1.1 Kick-off Meeting
Task 1.2 Critical Project Review Meetings (at least two)
Task 1.3 Final Project Meeting
Task 1.4 Monthly Progress Reports
Task 1.5 Final Project Report

Task 1.6 Identify and Obtain Matching Funds
XE will use both in-kind services and its own cash as the source of matching funds for
this project. No outside funding source is required for this phase of the project. Once
phase one is started, XE will seek private and government funding sources for prototype
development and a scaled pilot plant operation for its anticipated later phased activities..
Task 1.7 Identify and Obtain Required Permits
XE does not expect the need for any permitting to perform the tasks outlined for this first
phase of the project.
TASK 2 Define, model and create detailed performance targets for each state
of a complete system based on the Mohave Generating Station (MGS)
Due Date: Within 1.5 months of Project start date.
The goal of this task is to design a complete system from power plant to biomass
accumulation to biofuels production and end-use. XE will seek the cooperation of
Southern California Edison in obtaining detailed emission profiles and energy output
characteristics of the coal-fired Mohave Generating Station located in Laughlin, Nevada.
XE will base its initial component size using the MGS profile.
Xtreme Energetics Shall:
 Develop an emissions profile and land use map of MGS;
 Size, engineer, and determine the resulting input/output characteristics of the energy
and carbon usage of the complete system based on an MGS profile;
 Design and specify the performance parameters with a 10 percent accuracy for a solar
collector/concentrator to deliver energy and light to various parts of the complete
system;
 Design a solar-poweredscrubbertoreduce≥75% carbon monoxide (CO), nitrogen
oxides (NOx), sulfur oxides (S0x), and particulate matter (PM) based on the MGS
emissions profile;
 Incorporate into its natural lighting conveyance the demand routing of an electrically
driven sulfur bulb lighting system.
We will use Femlab software to model the complete system looking at all light and
thermal parameters (such as lux level, frequency, thermal dispersion, and others as
needed) to develop the appropriate size solar collector/concentrator field to supply
enough light to complete all subsequent tasks for this project. We also will use the
software to model solar-energy retrofits or upgrades to state-of-the-art scrubbers to yield
emissions that meet or exceed CARB standards. The model will include the electric
lighting component to determine realistic sulfur bulb capacity, sizes, light box design and
electricity needs. The outcome of this step will be a report outlining the preferred system
design and its necessary performance parameters along with a calculation computer
model indicating the carbon, heat, and light inputs and outputs required at each project
stage.

TASK 3 Design bioreactor
Due Date: Within 3 months of Project start date.
Thegoalofthistaskistodesignthecompletebioreactorincludingthemain“seed”tank,
raceway, and channels and ports for components of growth media (CO2, nutrients, etc.).
 Design a scalable self-contained bioreactor with all components necessary for optimal
algal growth and biomass output to handle greater than 90% MGS CO2 emissions;
 Develop a method to mix, monitor, and inject components required for optimal algal
growth including CO2, O2 (air), nutrients, and water.
We will use Femlab and Rayica software to model our bioreactor to maximize algal
growth rates and biomass output and to sequester as much CO2 as possible. To achieve
this, we will design a dual-walled main tank with an optimal raceway tube sandwiched
between the dual walls. The goals of this design are (1) to create a relatively compact and
complete modular unit that (2) increases the efficiency in supplying concentrated solar
light, CO2, and nutrients to both tanks simultaneously while (3) optimizing conditions to
yield maximal biomass. An additional benefit of this modular design is the number of
units can be scaled to fit any size power plant. The main tank is used to maintain a seed
stock of algae in lag phase as a batch culture. This stock is used to constantly furnish the
raceway tube with algal cells just as the cells enter their exponential growth phase. The
raceway is maintained at a constant flow rate to sustain a continuous culture of cells in
exponential growth. It is here that biomass increases through both individual cell size and
population size increases. The system will be designed such that maximum biomass (near
the end of exponential growth) is achieved at the end of the raceway. Unidirectional flow
in the raceway will (1) be timed to coincide with the entire duration of exponential
growth and (2) be fast enough to minimize cell attachmentto“raceway”surfaces(anti-
fouling). Surface area in both the main tank and the raceway will be kept to a minimum.
Carbon dioxide from the flue gas scrubber, recycled water, and nutrients from waste
products (manure, waste water, etc.) will be combined in a mixer to produce a slurry that
can be injected into the bioreactor via numerous channels and ports throughout the
system. The slurry is optimized with regard to dissolved CO2 (dCO2) and nutrient
constituents to achieve maximal growth rates of algae in the bioreactor. The mixer can
also monitor parameters of the slurry such as pH, composition and concentration of
dissolved and particulate organic matter, concentration of dCO2, and temperature prior to
injection into the bioreactor. This is a precautionary step to minimize accidental
contamination and/or poisoning of the bioreactor.
TASK 4 Design light diffuser for the bioreactor and raceway and develop
bench test requirements for the raceway testing

The goal of this task is to design the light diffuser for the interior of the main tank and
raceway to provide uniform distribution of light 24 hours per day. The second goal is to
develop bench test requirements to test the raceway as an optimized continuous culture.
 DesignandsoftwaremodelalightdiffuserforthemaintankandracewayusingXE’s
patented prismatic light guide technology and solar-powered electric sulfur bulbs;
 Deliver uniform lighting with light intensity between 50-250 µE m-2
s-1
at
wavelengths between 400-700 nm;
 Develop bench test requirements to test the raceway tube design to ensure that it is
functioning as expected to maximize algal biomass output.
We will utilize our patented prismatic light guide technology to design optimal lighting
throughout the main tank and raceway tube. Light will be uniformly delivered along the
entire surface of the inside wall of the main tank and to each of the coils in the raceway
tubes. Using prismatic light guides sheathed in a circular, growth-inhibitory sheeting
wrapped around the inside surface of the main tank, natural solar light will penetrate into
the deepest parts of the main tank. If the inside wall of the main tank and the raceway
tubing are transparent, then the same light sheet will provide natural solar light to the
raceway as well. A single column in the center of the main tank provides an additional
means of delivering natural lighting to the core of the tank without significantly
increasing themaintank’ssurface area. The inside of the exterior wall of the bioreactor
can have a reflective surface to reflect light back into the system. This patented
technology will ensure that natural light is never the limiting factor to algal growth. Our
performance objective is to provide a uniform distribution of light intensity between 50-
250 µE m-2
s-1
at wavelengths between 400-700 nm. We also will develop bench test
requirements for the raceway design to test and optimize parameters such as CO2, O2,
and nutrient concentrations, pH, temperature, and algal growth within the tube.
TASK 5 Computer modeling of Bioreactor and System
The goal of this task is to do computer simulation to test parameters of the entire system.
 Perform computer simulation modeling to test that the solar-powered scrubber will
meet or exceed CARB standards for reduction or elimination of noxious compounds;
 Perform computer simulation modeling to test the uniform distribution of light with
intensity between 50-250 µE m-2
s-1
at wavelengths between 400-700 nm throughout
the whole bioreactor;
 Perform computer simulation modeling to test algal growth rates and biomass output;
 Perform computer simulation modeling to test biomethane production and energy
cogeneration potential.
We will use Femlab and Rayica software to test all parameters for phase one of this
project before proceeding to build scaled prototypes.

TASK 6 Building the bench testing lab
The goal of this task is to build and equip a lab to bench test all components of our
system.
 Build, equip and supply a bench testing lab to test and fine-tune the validation
parameters against its computer models.
 Develop the testing protocol, measurement and calibration methodology.
TASK 7 Build and test a physical portion of the Raceway
Due Date: Within 7.5 months of Project start date.
The goal of this task is to build a physical model of the prismatic light guides and
diffusers for use within the bioreactor based on the results of computer modeling.
 Build a two meter length of a fully-scaled segment of the prismatic light guides with a
uniform distribution of light;
 Bench test the system for a uniform distribution of light with intensity between 50-
250 µE m-2
s-1
at wavelengths between 400-700 nm.
TASK 8 Confirming model results and fine-tuning of model to test data
The goal of this task is to analyze the bench test results performed in Task 7 and fine-tune
the model to obtain the desired goal set in Task 7.
 Analyze bench test results to determine if system delivers a uniform distribution of
light with intensity between 50-250 µE m-2
s-1
at wavelengths between 400-700 nm;
 Modify calculation model of the prismatic light guide system to meet specs.
Products: A 2 m long section of a prismatic light guide system for algal bioreactors.
TASK 9 Developing specifications for all system prototypes (engineered and
built in the next phase)
The goal of this task is to compile all date and information obtained in previous tasks to
develop specifications for a functional prototype to be built in phase two.

 Develop the entire set of specifications for a functional prototype of the total system.
We will develop specifications for each component of the system sufficient to engineer
and build prototypes of solar-powered: 1) flue gas scrubbers, 2) lighting systems for
algal bioreactors, and 3) secondary processing of algal biomass into biomethane. In
secondary processing, algae are harvested at the inflection point signaling the end of
exponential growth when biomass in the system should be at a maximum. This is
accomplished by continuing the flow of media and algae out of the raceway and into a
biomass filtration area. At this step, continuous flow of media and algae is filtered over
membrane sheets of appropriate porosity and then gently dried using a solar desiccant
dehumidifier. This maximizes the amount of water that can be recycled and returned for
use in the bioreactor. Dried sheets of algal biomass are then transferred to an anaerobic
digester for processing into biomethane. Methanogenic bacteria convert the total carbon
fraction of biomass into biomethane and carbon dioxide. Newly developed digesters
combine the CO2 fraction with H2 to produce more biomethane and H2O as end
products, thereby increasing biomethane yields to as high as 95%. There are three steps in
the anaerobic digestion process: (1) bacterial enzymes catalyze hydrolysis of proteins,
fats, and sugars into simple sugars (CH2O); (2) bacterial enzymes convert simple sugars
into acetic acid, CO2, and H2; (3) the bacteria then convert acetic acid to methane and
CO2 AND combine CO2 and H2 to form more biomethane and water. These reactions
are most efficiently done at temperatures between 32-41 °C. The heat is provided by solar
energy. Biomethane at concentrations greater than 92% can be piped directly into the
existing natural gas infrastructure to run vehicles, heat buildings and homes, etc. Lesser
grade biomethane can be used to produce electricity and/or for other uses. The CO2
released from burning biomethane in the cogeneration plant can be sequestered back into
the system for reprocessing.
TASK 10 Complete the final design of the entire project
The goal of this task is to finalize the design of the entire system from power plant to
biomass accumulation to biofuels production and end-use in a cogeneration plant based
on the requirements of the Mohave Generating Station.
 Develop an end-project emissions profile and land use planning map of MGS based
on modeling and test results;
 Size, functionally specify, and determine the resulting input/output characteristics of
the energy and carbon usage of the complete system based on the MGS profile,
 Design a solar-poweredscrubbertoreduce≥75% carbon monoxide (CO), nitrogen
oxides (Nox), sulfur oxides (Sox), and particulate matter (PM) based on the MGS
emissions profile based on all models and tests;
 Determine the lighting system requirements based on all models and tests;
 Devise the secondary processing of algal biomass into biomethane based on models;
 Recommend a biomethane cogeneration plant for use at MGS.

Our goal is to demonstrate how a coal-fired power plant, such as the Mohave Generating
Station can be retrofitted with our technology. Southern California Edison and the Los
Angeles Department of Water and Power collectively own 66% of MGS. From 1971 until
it was closed at the end of 2005 for among other reasons, non-compliance with EPA air
pollution standards, the 1,580 MW plant generated electricity for more than a million
homes and small businesses, mostly in Southern California. At its peak, MGS used over
18K tons of coal per day and emitted nearly 10 million tons of carbon dioxide and other
compounds each year. Our goal is to show how this plant may use our solar-based CO2-
to-biomethane technology to ensure that the MGS facility meets and even exceeds EPA
Clean Air Standards for greenhouse gas emissions as well as generating a clean biofuel
for use in generating additional on-site electricity to pay for clean-up with a relatively
short payback.
TASK 11 Perform energy and carbon balance analysis
The goal of this task is to analyze energy and carbon budgets based on the MGS facility
to ensure that our system is capable of meeting CARB standards in situ.
 Perform actual analyses of energy and carbon cycling at MGS using our technology
to ensure compliance with CARB standards for power plant emissions.
XE will perform on site tests and analyses of energy and carbon cycling from power plant
to end-member cogeneration plant output to determine the actual flow of these
parameters through our system.
TASK 12 Perform cost feasibility analysis
The goal of this task is to analyze the cost and benefit structure of the proposed MGS
system facility to insure that it can be financed on its merits and adopted independent of
subsidies or other incentives.
XE will develop an installed cost model based on existing technology inclusive of the
components developed in this proposal and subsequent phases for installation at MGS.
XE will provide an anticipated operations and maintenance schedule and related cost
model and then determine the expected internal rate of return from both equity and debt
investment based on enhanced electricity production via biomethane production and
alternatively with any available tax or carbon based credits and sales of usable fertilizer,
feed or other commercially useful waste byproducts.
TASK 13 Deliver interim and final report
Due Date: Within 7 and 12 months (respectively) of Project start date.

XE will report the results of all modeling and development tasks in an interim report
following completion of Task 8 and in a final report following completion of Task 12.
TASK 14 Technology Transfer Activities
XE will make the knowledge gained, experimental results and lessons learned, including
fact sheets and project briefs, available to the public and key decision makers on our
website and through public announcements, notices, and/or meetings as deemed
appropriate by interested parties. Our primary objective in this task is to attract project
sponsors for prototype and pilot plant demonstration units at working power plants.
TASK 15 Production Readiness Plan
The success of our technology can create a new industry that reduces carbon and other
emissions from all types of point source emitters while creating an enormous additional
supply of natural gas substitute to generate electricity. In addition, the entire clean-up
effort can be paid for within seven years without government subsidies through electricity
sales, resulting in both widespread adoption and available project financing. .XE will use
matching and other funds to prepare the technology developed in this proposal into
prototype and pilot plant operations in subsequent phases in anticipation of
manufacturing and commercializing the bioreactor and solar elements of the project. In
its next two phases, XE will create alliances with engineering, construction and
experienceddevelopmentpartnerstoreplicateit’stechnologyincoalplantsthroughout
the US and as an export product to the world..
7) Anticipated Direct and Indirect Impacts and Benefits
Interest in converting power plant emissions into biofuels for the energy and
transportation sectors has accelerated dramatically in the last half decade as awareness of
key intersecting factors has increased. These factors include anthropogenic greenhouse
gas (GHG) inputs to the atmosphere and global warming, dependence on foreign sources
of oil and national security concerns, and proximity to peak oil and concomitant price-of-
oil increases. The recognition and growing acceptance of these convergent factors has
reinvigorated interest in CO2 sequestration for use in algal biofuels technologies to help
mitigate some of these pressing problems. This project specifically addresses these
concerns in ways that will have direct and indirect impacts and benefits for California.
For example, emission scrubbing and CO2 sequestration will benefit California directly
by reducing or eliminating anthropogenic GHG and other pollutants within or near the
borders of California. The development of novel applications for renewable energy will
have both direct and indirect beneficial impacts on California in the form of increased

energy independence from domestic and foreign sources of energy as well as decreased
energy prices. Our combined solar and bioreactor approach has widespread applicability
to most point source emissions control and will have world-wide commercial appeal.
One way to increase the natural gas supply is to reduce the need for more natural gas to
fuelCalifornia’selectricityproduction.Althoughwedonotendorse building new coal
burning power plants, we do propose cleaning up the emissions of those that exist. Up to
sixteenpercentofCalifornia’sbaseloadelectricitywasoncederivedfromtheFour
Corners Power Plant and the recently closed Mohave Generating Station. Our proposed
research is specifically targeted to improving the viability of these two power plants with
regard to recycling flue gas emissions following the latest CARB standards and
converting the CO2 into a source of biomethane. The generated biomethane can be used
as a fuel for an auxiliary natural gas co-generator that supplies both heat and power for
algal growth in bioreactors. The primary power source and what makes the entire
proposal feasible is sunlight. We estimate the resulting self-contained system would pay
for itself in excess generated electricity within seven years..
Southern California Edison (SCE) will improve its ability to serve its California
customers by increasing its transmission stability in San Bernardino and Kern Counties
byreopeningtheMohaveplant.CleanupofMohave’semissionsandtheresulting
additional production of energy can lead to a breakthrough in negotiations over water use
in the coal slurry fueling of the plant. Excess electricity generated by the CO2 cleanup
can be used to pump filtered slurry water back to the mines for recycling, thus reducing
demand on local aquifers.
Los Angeles, Burbank and other municipal utilities will benefit from their existing
investment in the Four Corners coal-fired power plant. Recently, Los Angeles
Department of Water & Power has declared its intent to back out of Four Corners, and
Burbank is in a quandary over its participation as well in order to meet its renewables
portfolio needs. Cleaning up the flue gas emissions using solar energy should help these
utilities meet their renewables and clean-air goals.
Our technology can have a major impact on the use and value of carbon credits if and
when such policies are adopted. The significant, added value of cleaning major point
emissions from power plants and refineries is boosted by the sale of the carbon credits to
other industries not having the same economy of scale advantages such as mobile CO2
emitters. Our ability to commercialize the solar and bioreactor components is greatly
enhanced, thereby allowing for higher volume manufacturing and subsequently lower
prices.
8) Biographies
Principal Investigator: Dr. Leo D. DiDomenico is the founder and principle scientist of
Xtreme Energetics, Inc. Prior to this he was a seniorstaffresearchscientistatNASA’s
Jet Propulsion Laboratory (JPL) in Pasadena California. He received a Ph.D. in Electrical
Engineering from the Radiation Lab-oratory at the University of Michigan in Ann Arbor

in 1999, a M.S. in electrical engineering in 1994, and both a B.A. in physics and a B.S. in
electrical engineering in 1990. He has fourteen years of experience in the theory and
applications of electromagnetic radiation.
During the period form from 1990 to 1991 Dr. DiDomenico worked at TRW Space and
Defense Systems in Princeton New Jersey and helped developed techniques for high-
power laser-weapon countermeasures; while at TRW he also spent time at the High
Energy Laser Systems Test Facility (HELSTF) at White Sands Missile Range. While
there ran experiments on the Mid-Infrared Advanced Chemical Laser (MIRACL), which
is the first megawatt-class, deuterium fluoride (DF) chemical laser. Shortly thereafter, he
moved to the U.S. Army Research Laboratory at Ft. Monmouth N.J. where he developed
novel antennas and beam forming technologies including superconducting conformal
antennas and arrays. From 1995 to 1999 he worked for the Federated Lab program at
both the University of Michigan and the Army Research Labs (ARL) in Adelphia MD.
This research was on phase conjugating adaptive wavefront control and antenna arrays.
The effort formed the basis for his doctorate and in 1999 he received a Ph.D. The
dissertation was based on research in the field of self-phased adaptive antenna arrays that
emulate the effects of time-reversal in the electromagnetic fields. The novel feature he
developed was the passive control of beam pointing between two nonlinear microwave
phase conjugating antennas.
Most recently Dr. DiDomenico was a senior staff scientist for NASA JPL working on
advanced technology concepts for beamed energy systems, trans-atmospheric propulsion,
and high power applications of Photonic Band Gap (PBG) materials. He has been directly
involved in developing the underlying theory for a energy transport and conversion
processes in photonic band gap materials. In general, his interest include developing
advanced concepts in extreme physical systems including alternative energy technologies
for commercial power generation, high-power laser, and advanced propulsion.
Dr. DiDomenico enjoys investigating theoretical physics. He is a member of the Institute
of Electrical and Electronics Engineers (IEEE), the American Institute of Physics (AIP),
the Optical Society of America (OSA), the Directed Energy Professional Society (DEPS),
the American Institute of Aeronautics and Astronautics (AIAA), the American
Association of Physics Teachers (AAPT), the American Hydrogen Association (AHA),
the physics honor society, and the engineering honor society.
Program Manager: Dr. Michael S. Atkins is the Director of Special Projects at Xtreme
Energetics, Inc. He has over 20 years experience doing scientific research, teaching, and
consulting in the field of marine and ocean sciences. He has logged over 125K nautical
miles at sea on boats and ships, and has been to the ocean bottom in deep-sea
submersibles. Dr. Atkins is an expert on the biology and ecology of the marine benthos,
especially deep-sea hydrothermal vent ecosystems. He has extensive experience in the
cultivation of algae, protozoa, and extremophilic prokaryotes from samples taken
throughouttheworld’soceansandselectfreshwatersystems.

Dr. Atkins received a Ph. D. in Biological Oceanography from the Massachusetts
Institute of Technology and the Woods Hole Oceanographic Institution in 2000, and a
B.A. in chemistry and marine biology in 1993. He did postdoctoral work in the fields of
genomics and evolution at the Josephine Bay Paul Center for Comparative Molecular
Biology and Evolution in Massachusetts and at the Department of Energy Joint Genome
Institute in California. Dr. Atkins has worked and consulted on National Science
Foundation Life in Extreme Environments and NASA Astrobiology projects to discover
life on other planets using the ocean bottom as a model.
9) Project Collaboration and Coordination
XE will perform all activities within its own facilities and with its own employees;
however, the Company does expect to retain engineering expertise on power plant and
specific aspects of bioreactor engineering design from outside contractors. XE will solely
select such outside expertise as it is needed. In addition, XE will retain a vendor to
manufacture the raceway components as needed and will seek competitive bidding for
such components whenever possible.
XE will seek the cooperation of the majority and minority owners of the Mohave
Generating Station (MGS) in developing the MGS emissions profile, available land use
matters, and any other information deemed significant by XE in fulfilling the
requirements of our proposals. As part of these interactions, XE will solicit Southern
California Edison and its fellow owner/agencies (including the Salt River Project) to fund
a phase two and three with regard to prototype development and pilot plant operation.
10) Scoring Criteria Discussion
1. The Current Status of the Proposed Technology and How the Proposed Work
Will Address Barriers to Advance the State-of-the-Art and Market Acceptance
Criterion Scoring Range: 0-10
Weighting Factor: 1.5
Maximum Possible Points: 15
√The current status of the proposed technology as it has been developed by the
research and industrial community at large. This has been addressed.
√How the proposed project will address current barriers or knowledge gaps to advance
the state-of-the-art and market acceptance. “…the use of fiber optic cables presents a
barrier to the advancement of the technology because the transport mechanism for
the light is limited to shorter distances with lower efficiencies relative to the
technology we are proposing to use,namelyprismaticlightguides”.
√Describe why the proposed project is not being addressed by the competitive or
regulated markets. This has been addressed and presented in part in Table 1.
√Distinctive and innovative aspects of the technical approach. The innovative design of
thebioreactorracewayisadirectresultofXE’sprismaticlightguides’capabilityto
convey highly concentrated light over long distances with few losses and to evenly
disburse the light within the bioreactor and raceway.

√Past and current work in the subject technology performed by the project team and
others, including successes and failures. This was addressed by way of reference to
existing CEC proposals both in progress and proposed, except our failures since we
are still in the very early stages of developing this technology.
√The extent to which the project will address the objectives of the PIER-NG Program
in the area of biogas or hybrid Renewables (to develop and commercialize alternative
fuel sources to natural gas) for industrial and commercial process heating and/or
combined heat and power. “We will reduce or replace existing natural gas
applications and dependence on foreign sources of natural gas in California by
developing and demonstrating advanced, cost-effective, and environmentally friendly
renewableenergytechnologies.”
√How the proposed project will meet the latest CARB standards including the 2007
emission standards. Alternatively, describe why the system is exempt from these
standards. Failure to satisfactorily address this criterion will be cause for rejecting
your proposal. “The proposed technology will meet and may even exceed the latest
(2007) California Air Resources Board (CARB) standards, by leading to significant
reductions in carbon dioxide (CO2), carbon monoxide (CO), nitrogen oxides (NOx),
sulfur oxides (SOx), and particulate matter (PM) from power plant emissions. We aim
to achieve this goal by developing technology that uses a renewable resource, solar
energy, to run flue gas scrubbers, supply lighting to algal bioreactors for CO2
sequestration, and supply energy for secondary processing of algal biomass into
biomethaneastheprimaryfuelsourceforacogenerationpowerplant.”
√How and why the proposed project is the next RD&D step. ”This project represents
the next logical step to advance the state-of-the-art by developing a better lighting
system capable of delivering uniform natural sunlight to deep within closed-loop
bioreactortanksandraceways.”
2. Technical Description of Proposed RD&D
Weighting Factor: 2
√The technical tasks are clearly and logically presented, with appropriate objectives,
logical and discrete tasks, sequence of activities, products produced, deliverables,
schedule, and budget. Yes, our tasking is methodical and our scheduling realistic.
√A specified process and material flow diagram is included. The diagram must have all
material and energy flows and related parameters, such as pressures and temperatures,
for an integrated system. Included as Figure 2.
√The proposal describes the scientific and technical principles underlying the proposed
work, and the manner in which the scientific and engineering principles will be
applied. Yes, although additional details on the underlying principals and merits of
XE’sprismaticlightguidehasbeenpresentedtotheCECinourPIERBERG(06-
01B) proposal and is incorporated herein.
√The distinctive and innovative features of the approach are discussed. Yes, the
distinctivemeritsbeing“our proprietary light guide technology can uniformly
distribute and not just convey sunlight throughout an optically dense bioreactor to
optimizealgalgrowthandbiomassoutput”.

√The likelihood of success based upon a sound research plan. Yes, by demonstrating
the effectiveness of a raceway segment we can garner support for a prototype
bioreactor and subsequently, a fully operational pilot plant.
3. Identified Targets, Goals, and Market Application
Weighting Factor: 2
√The proposed project is cost effective and will reduce natural gas usage. Yes, we
calculate a seven year payback of the project totally from sales of electricity
generated from produced biomethane .
√The extent to which the project addresses significant key issues and barriers to the
development and market acceptance of replacement of natural gas with renewable
resources. This subject has been the main focus of our proposal in as such that
existing carbon-based power plants emissions can be effectively reduced while being
the source of new biomethane fueled electricity supplies.
√Quantitative or measurable technical and economic performance goals and the
methodology used to determine if the goals have been achieved. These were listed in
the proposal and are reasonable expectations given our current understanding of the
technology proposed.
√How the project will fulfill market needs. A reasonable path is described for
commercialization of the technology if the project is successful. Yes, the proposed
application of the technology will create a new use for solar energy, driving its cost
down due to the large collection areas needed. The proposal is split into three
research phases that will build the validation of the technology for use in a utility
environment and allow for build-up of manufacturing processes, knowledge and
expertise.
√Quantified public benefits to the host site, California natural gas stakeholders –
residential, academic, commercial and/or industrial, and the potential market size.
Yes, the proposed application of the technology can have an immediate effect on the
decision making of the owners/operators of the MGS and Four Corners power plants
to continue to operate these low cost plants while having the capability of nearly
doubling their output while nearly eliminating their detrimental environmental
impacts in a relatively short timeframe.
√The potential new environmental or safety issues associated with the proposed
project. Yes, we address the recent legislative mandates that require reductions in
CO2 emissions by proposing a method to both sequester and nearly eliminate CO2
output from power plants and use the sequestered carbon to cost effectively create
additional electrical energy.
4. Project Budget
√The project cost is consistent with the work to be performed and is justified. Yes.

√The PIER-NG funding request, match funding, and need for PIER-NG funding are
appropriate and consistent with the expected level of public benefits if the project is
successful. Yes.
√The degree to which the project requires PIER-NG funding, rather than being funded
from the competitive or regulated markets. Yes.
5. Qualifications of Project Manager and Project Team
√The Project Manager and team members have the technical capabilities, specific
experience and financial capability to successfully complete the project. Yes.
√The Project Manager can successfully manage the project, control cost, and maintain
the schedule, and report results and accomplishments in an effective manner. Yes.
√The proposal clearly and adequately presents capabilities and experience of the team
members to perform the proposed work for different tasks. Yes.
√Theproposalpresentstheteammembers’collaborationtoperformandfacilitate
transfer of project products to the marketplace. Yes.
6.OtherSignificantFactorsthatIncreasetheProject’sMerit
The following are examples of other significant factors that will be considered by the
proposal evaluation team:
√The proposal shows that the technical approach is innovative or unique. Yes. Our key
innovation is the design and addition of the liner raceway to the bioreactor which is
made possibleduetoXE’scapabilityincollecting,concentratingandconveying
natural sunlight and electic lighting in a controlled fashion over long distances.
√Theproposer’sperformanceonpreviousEnergyCommissionAgreementshasbeen
superior. This is not entirely applicable for we have recently started and will not
complete our first CEC contract for another twelve months.
√The degree to which the project contributes to a balanced PIER-NG portfolio across
technology types, levels of risk, and/or time to commercialization. We will
demonstrate how solar energy can be used to nearly eliminate point source emissions
because we can exert complete control of light over long distances. The research
effort we propose assumes successful completion of prismatic light guide development
and its application to the bioreactor. We fully expect that what we face are quality
engineering and precision manufacturing issues and not one of basic physics.
√How well the project supports California energy policy, or may provide a basis for
informing future energy policy. OurresearchcrosscutsCalifornia’sstated
renewable energy goals, desire for improved use of indigenous biofuels, and the
widespread reduction of greenhouse gases while providing for locally produced

substitutes for imported natural gas and reducing the need to build new natural gas
power plants for the sole purpose of eliminating existing coal or oil power plants.
11) Project Budget Information
11.1 PIER-Natural Gas Budget

11.2 Matching Funding Budget

11.3 PIER-NG Budget Summary
12) Other Significant Factors
XE has received California Energy Commission EISG/PIER grant funding for the
development of its planar, fluidic tracker for high concentration light collection
(EISG 6-01-12, Approved Dec. 2006). XE started this contract work on Feb. 1, 2007. As
a matter of record, XE has submitted to the CEC a proposal to develop its prismatic light
guides (BERG 06-01B), the information and references of which are incorporated herein.
XE warrants that it has and will make available the funds and in-kind contributions of its
share of the overall costs of the proposal. XE also warrants that it has not received or
solicited grant or other research funding for the tasks outlined in this proposal.

REFERENCED FIGURES:
Figure 1. (A) Prismatic light guide as described in the 3M patent 6,621,973 and originally
developed by Whitehead in 1981. The core is hollow and the cladding clearly has the prisms
visible. This is an excellent design for long-haul sunlight propagation if the prisms are made from
ultra-low loss materials like Spectrosil-A, which has a loss of only 100dB/Km in its bulk form.
Note, that the ray spends 99% or more of its transit time in the air not in the glass prismatting
cladding, which is providing the means for efficient total internal reflection, The prismatic
pattern can be formed rapidly using a minimum of high quality materials to keep the cost low by
using laser machining techniques. (B) XE has greatly improved the design of this type of light
guide such that highly concentrated sunlight can be piped up to 250m with 10% losses.
Compare this to best available light guides used in solar lighting applications that can pipe light
15m with 96% loss.
Figure 1A –Schematic of 3M Light Guide Figure 1B –Illustration of XE Light Guide
Figure 2 A schematic diagram of the major processing steps of converting flue gas carbon
compounds into biomethane as proposed herein. The major focus of the proposed research is in
demonstrating the raceway in Step 4.
 Step 1 is based on published daily coal requirements for the Mohave Generating Station
(MGS). The amount of carbon produced from coal fired at MGS per day is 7.4462 x 106
kg
carbon day-1
.
 Step 2 is based on published emissions of the MGS and assumes conventional scrubber
technology keyed to removing NOx, SOx, PM and retaining the C0/C02 in the flue gas and is
calculated as 6.8391 x 106
kg C day-1
retained and 8.2% of total MGS carbon lost as solids
by this step.
 Step 3 assumes a conventional slurry mechanical mixer that combines nutrients, recycled
water and sequestered C02
 Step 4 is a illustration of the bioreactor surrounded by spiraled layers of a liner algal
raceway. The main tank provides the continuous, self sustaining culture of algal cells to seed
the raceway. The principal input is uniform, controlled lighting, from a solar collection field
and from sulfur bulb arrays, and nutrients piped through the raceway to maximize sustained
cell growth. The amount of MGS carbon fixed into algal biomass per day assuming 75%
efficiency is 5.1293 x 106
kg C day-1
and31.1% of total MGS carbon is lost as solid.

 Step 5 both filters and dewaters the living algal cells in preparation for digestion. Assuming a
75% efficiency is 3.8470 x 106
kg C day-1
and 48.3% of total MGS carbon is lost as solids..
 Step 6 is a conventional anaerobic digester modified to use heat from both the solar
collection field and from the electric generating plant. The amount of filtered algal biomass
carbon converted into biomethane carbon per day assuming 75% efficiency at each of 3 steps:
o Conversion of algal biomass into simple sugars (CH2O) gives 2.8853 x 106
kg C day-
1
and 61.3% of total MGS carbon is lost as solids by this step);
o Conversion of simple sugars into acetic acid, CO2, and H2 gives 2.1639 x 106
kg C
day-1
and 70.9% of total MGS carbon is lost as solids by this step);
o Conversion of acetic acid, CO2, and H2 into CH4 and CO2 (CH2O) gives 1.6230 x
106
kg C day- 1
and 78.2% of total MGS carbon is lost as solids by this step).
 Output Step is biomethane and waste product. The calculated yield is 1.0834 x 106
kg
biomethane day-
.1.
8.2% of total MGS emission carbon will be combusted into CO2 at this
step. By this stage, 91.8% of the emission carbon is sequestered by this stage as waste
solids. About 70 % of total MGS carbon in these solids is in digester sludge. The produced
biomethane may be stored as fuel for a co-located co-generation steam turbine of
conventional design or it may be injected into the existing natural gas distribution system. A
significant amount of carbon and nutrients remain in the undigested sludge that is either
disposed of in landfills or made into commercially useable fertilizer or animal feed.
 Not Shown is the generating of electricity using a conventional turbine. Assuming a potential
power generation using 75% combustion and 75% generation efficiencies allows for a 400
MW co-generation plant fueled by the MGS produced biomethane.

Figure 3. Work Flow Diagram for Tasks in this Proposal
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