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Aquaflow wild algae converted

Media Release

December 14, 2008


Aquaflow wild algae converted to key jet fuel component – world first breakthrough

BLENHEIM, NEW ZEALAND: New Zealand-based Aquaflow Bionomic Corporation says the world’s first test flight using wild-algae based jet fuel may be nearer than many pundits think.

The company announced today that its wild algae has been successfully refined to produce the world’s first sample of synthetic paraffinic kerosene (SPK) converted from compounds derived from Aquaflow’s wild algae. SPK, when blended with petroleum-based kerosene, can be used to power commercial and military aircraft.

“This is a major breakthrough and confirms that wild and naturally occurring algae and its components can produce quality, sustainable aviation fuel,” says Aquaflow director, Nick Gerritsen.

Gerritsen says the sample meets Jet A-1 specifications and, when blended with petroleum-based Jet A-1, could be used by commercial aircraft. The algae was converted using technology from United States-based UOP LLC, a Honeywell company. UOP utilized its proprietary hydroprocessing technology to convert the sample to SPK and confirmed that the sample meets the critical specifications for SPK including density, flash point and freeze point.

The wild algae sample also yielded a sample of diesel fuel.

“We are a company focused upon developing the sustainable production of green crude, similar to that which could be expected from mineral crude oil, and combining that with waste treatment and clean water production,” comments Gerritsen.

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Gerritsen says this announcement is a significant milestone for the aviation industry and supports the identification of algae-based fuels solutions by Boeing and leading airlines.

Wild algae grows in wastewater and is continuously harvested, one of the great benefits of algae over other land based crops, and it doesn’t compete with food crops or agricultural land.

Aquaflow sources its wild algae from the local oxidation ponds in Marlborough on New Zealand’s South Island – essentially recycling a waste product.

Ends

This release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of1934. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on management’s assumptions and assessments in light of past experience and trends, current conditions, expected future developments and other relevant factors. They are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward looking statements. Our forward-looking statements are also subject to risks and uncertainties, which can affect our performance in both the near and long-term. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

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