Sept. 2, 2010 09:00 UTC

OriginOil Delivers Second Product to Strategic Customer

LOS ANGELES--(BUSINESS WIRE)-- OriginOil, Inc. (OOIL), the developer of a breakthrough technology to transform algae, the most promising source of renewable oil, into a true competitor to petroleum, today announced that it has notified MBD Energy Limited that it is ready to ship a Single-Step Extraction™ System, the second product to be delivered in its multi-phase commercialization agreement. The notification triggers a new series of payments under a purchase order from the Australia-based customer.

"We believe OriginOil's concentration and extraction technology holds promise of reducing costs and energy requirements in the algae harvesting process," said Andrew Lawson, Managing Director at MBD Energy Ltd. "We look forward to now using the equipment we've purchased from OriginOil to finalize preparations for our 1 hectare Bio CCS algal synthesizer test facility we're about to construct at Tarong Power Station in Queensland. If performance tests go to plan we expect to later expand the 1 hectare synthesizer to 80 hectares at which point we hope to produce approximately 10,000 tonnes of oil per year."

OriginOil's unit is the second product to be shipped in the test phase of a multi-phase commercialization program under which OriginOil has agreed to supply MBD Energy with progressively larger installations of its algae-to-oil technology as the scale of MBD's algal synthesizer projects grows. The two products are supplied under a 1 year lease-to-own program. Subject to achieving success in the initial test phase, MBD will purchase significantly larger systems to serve its power station projects in Australia, beginning with the 1 hectare algal synthesizer test plant at Tarong Power Station in South Eastern Queensland, and potentially expanding to full production at all three of MBD's power station project sites in Australia.

According to MBD Energy, each of its power station projects has the potential to grow to 80 hectare commercial pilot plants, each capable of producing 11 million liters of oil for plastics and transport fuel, and 25,000 tonnes of drought-proof animal feed annually.

MBD Energy estimates that, subject to approvals and performance results, the projects could eventually grow to about 1,500 hectares with potential to consume more than half of each power station's flue-gas emissions.

Conventional algae oil extraction systems use petrochemical or alcohol solvents to extract algae oil. In this process, the largest amount of energy consumption comes from the initial steps of dewatering and drying the algal biomass. The novel OriginOil Single-Step Extraction technology, however, allows the oil to be separated from the algal biomass in water with no dewatering or drying steps. As a result, substantial electrical and thermal energy can be saved.

The OriginOil Single-Step Extraction technology also requires significantly less capital expenditure per tonne of oil extracted. Conventional oil extraction systems utilizing petrochemical and alcohol solvents are rather complex and need to be large-scaled to keep the capital cost per tonne of oil within reason. In contrast, the OriginOil Single-Step Extraction technology does not require a petrochemical solvent, such as hexane, which is known to require an extensive permitting process before implementation, thus allowing for a more cost-effective production of algal oil.

About OriginOil, Inc. (web address: www.originoil.com)

OriginOil, Inc. is developing a breakthrough technology that will transform algae, the most promising source of renewable oil, into a true competitor to petroleum. Much of the world's oil and gas is made up of ancient algae deposits. Today, our technology will produce "new oil" from algae, through a cost-effective, high-speed manufacturing process. This endless supply of new oil can be used for many products, such as diesel, gasoline, jet fuel, plastics and solvents, without the global warming effects of petroleum. Other oil-producing feedstock, such as corn and sugarcane, often destroy vital farmlands and rainforests, disrupt global food supplies and create new environmental problems. Our unique technology, based on algae, is targeted at fundamentally changing our source of oil without disrupting the environment or food supplies.

About MBD Energy Limited (web address: www.mbdenergy.com)

MBD is an Australia-based public, unlisted technology company. One of the world's largest mining companies, Anglo American, became a cornerstone investor in MBD in 2009 and Anglo Coal's Global CEO, Seamus French, has recently joined as a non-executive director of MBD Energy. The MBD Energy Board is chaired by former BHP Chairman, Jerry Ellis. MBD has a joint research and development facility located at James Cook University (JCU), Townsville, Queensland. MBD Energy and its JCU team are regarded as international leaders in the use of captured flue-gases as feedstock to produce algal biomass for Bio CCS. In addition to the project at Tarong Power Station, MBD Energy currently has two similar projects underway with Loy Yang Power in Victoria and Eraring Energy in New South Wales. MBD Energy is a founding member of the Bio CCS program. The program is made up of a number of regional projects with each targeting 50 million tonnes of greenhouse gas sequestration per year by 2020.

Safe Harbor Statement:

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

Abstract/Short Description

OriginOil delivers its Single-Step Extraction System to strategic algae technology customer, Australia-based MBD Energy, triggering second payment series.

Keyword List

algae oil, algae commercial production, andrew lawson algae, anglo american, mbd energy, quantum fracturing, tarong power station queensland, renewable oil, riggs eckelberry, single step extraction, originoil, ooil

Source: OriginOil, Inc.

View this news release online at:
http://www.businesswire.com/news/home/20100902005434/en