Linde and Sapphire Energy announce deal to co-develop CO2 management system for algae fuel production

Linde AG /
Linde and Sapphire Energy announce deal to co-develop CO2 management system for
algae fuel production
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Joint Press Release from Sapphire Energy, Inc and Linde AG

Munich/San Diego, 11 May 2011 - The technology group The Linde Group and
Sapphire Energy, Inc., one of the world's leaders in algae-based crude oil,
today announced that they have entered into a multi-year agreement to co-develop
a low-cost system to deliver carbon dioxide (CO(2)) to commercial-scale, open-
pond, algae-to-fuel cultivation systems.

Linde, the leading merchant CO(2 )supplier in the U.S., will partner with
Sapphire Energy, to reduce the costs associated with the delivery of
anthropogenic CO(2) for commercial-scale open pond algae cultivation. In
addition, Linde will supply all of the CO(2 )to Sapphire`s commercial
demonstration facility in Columbus, New Mexico.

"Producing fuel by algae using CO(2 )from large emitters like power stations and
chemical plants is a very promising way of reducing greenhouse gas emissions,"
said Dr Aldo Belloni, member of the Executive board of Linde AG. "We are
delighted to be a key partner in Sapphire's algae-to-biofuel activities. This is
one of the many examples for innovative 'clean energy' projects that Linde is
involved in."

"The need for new sources of fuel as dependency on oil becomes more and more
problematic is clear. To produce algal oil, or 'green crude' at the scale to
meet growing demand, we need great partners who can supply sufficient and low
cost access to CO(2)," said Cynthia (C.J.) Warner, president, Sapphire Energy.
"Linde has unequalled knowledge in how to efficiently manage the distribution
process. Through this collaboration, we are closer to delivering a domestically
produced, cost efficient source of algae-based green crude."

Sapphire Energy has developed proprietary technology along the entire algae-to-
energy value chain from biology, cultivation, harvest and extraction, to
refining, resulting in a highly scalable process to produce a renewable and low
carbon substitute for fossil-based crude oil. Sapphire's green crude produces
drop-in fuels - jet, diesel, and gasoline - that are completely compatible with
existing infrastructure and engines. Algae are grown in salty, non-potable
water, using lands not suitable for agriculture, and require only sunlight and
CO(2) to grow, all sustainable features which petroleum and most other biofuel
options cannot match. Sapphire's technology represents an approximate 70%
reduction in lifecycle carbon emissions compared to petroleum-based equivalents.

A single commercial algae-fuel production facility is estimated to require
approximately 10,000 metric tons of CO(2 )per day, which is comparable to
approximately 30% of the current merchant market for CO(2 )in the U.S.

The Linde Group has a wealth of experience in the cost-efficient supply of CO(2)
for climate- and eco-friendly CO(2) recycling applications. The OCAP project
(Organic CO(2) for Assimilation by Plants) in the Netherlands is a case in
point. Here, Linde supplies via a 85-km-pipeline around 550 greenhouses with
CO(2), which is a by-product from a nearby refinery. Linde also develops,
designs, plans and constructs pilot and commercial facilities for capturing
CO(2) from various sources, such as power plants, chemical plants, natural gas
processing, biofuel and other plants.

About the Linde Group
The Linde Group is a world-leading gases and engineering company with around
48,700 employees in more than 100 countries worldwide. In the 2010 financial
year, it achieved sales of EUR 12.868 bn (USD 17.9 bn). The strategy of The
Linde Group is geared towards sustainable earnings-based growth and focuses on
the expansion of its international business with forward-looking products and
services. Linde acts responsibly towards its shareholders, business partners,
employees, society and the environment - in every one of its business areas,
regions and locations across the globe. Linde is committed to technologies and
products that unite the goals of customer value and sustainable development.

For more information, please see The Linde Group online at http://www.linde.com

About Sapphire Energy
San Diego-based Sapphire Energy is pioneering an entirely new industry - Green
Crude Production - with the potential to profoundly change America's energy and
petrochemical landscape for the better. Sapphire's products and processes in
this category differ significantly from other forms of biofuel because they are
made solely from photosynthetic microorganisms (algae), using sunlight and CO2
as their feedstock; are not dependent on food crops or valuable farmland; do not
use potable water; do not result in biodiesel or ethanol; enhance and replace
petroleum-based products; and are low carbon, renewable and scalable. In
December 2009, Sapphire was awarded nearly $104.5 million as part of President
Obama's American Recovery and Reinvestment Act and the USDA's Biorefinery
Assistance Program 9003 authorized through the 2008 Farm Bill.

For more information, please visit http://www.sapphireenergy.com.
For additional information from Linde:

Press Investor Relations
Stefan Metz Dr Dominik Heger
Telephone: +49.89.35757-1322 Telephone: +49.89.35757-1334

Thomas Eisenlohr
Telephone: +49.89.35757-1330

For additional information from Sapphire:

Press & Investor Relations
Beth Llewelyn,beth@zebrapartners.net
Telephone: +1.206.406-5027

Perrin Kaplan,perrin@zebrapartners.net
Telephone: +1.206. 909-0119

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Linde AG
Klosterhofstrasse 1 Munich Germany

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Press Release as PDF:
http://hugin.info/125064/R/1514557/450670.pdf

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