----- Original Message -----

From: Jim Miller

To: Thész János

Cc: Jason Lafler

Sent: Saturday, October 04, 2008 7:39 AM

Subject: algal oil and biodiesel

AlgalOilDiesel, LLP 530 NW 13th St. Corvallis, OR 97330 Wired:: 541-757-9797 Wireless: 541-971-0403 Skype: jimmiller 5417 Email: jimmiller5417@yahoo.com October 3, 2008 Mr. Jˆhnos Thˆ¤sz TBK-Biodiesel Budapest/Hungary Email: "Thˆmsz Jˆhnos" <thesz@t-online.hu> T: (+36)12263702 Re: International patent pending (WO2008096187 Thank you for your email letter of this date. Your process is very interesting. I will look forward to getting a copy of the independent laboratory testing of the resulting biodiesel under EU 14214. Our two companies could well be compatible. Our focus was initially on how to grow algae but soon changed to extraction of algal oil from Chlorella vulgaris. You can see some of our results by reading the pages of our wikiweb, http://algaloildiesel.wetpaint.com. You will note that the cell bomb process to open the 25 micron spherical cell of Chlorella (process N. 15 in the process list) remains a trade secret. See: http://algaloildiesel.wetpaint.com/page/Process+steps+for+extraction+of+algal+oil. The concept of a cell bomb has been in the public domain for many years and was my starting point. Thus far, I have not found any study which uses the cell bomb technology on the massive scale needed to open quadrillions of cells, very quickly and at low energy use. I have discovered how to accomplish this huge scale-up operation and have the process in the schematic stage. Your production technology solves the glycerol waste problem. I too, have solved it, in a sense. It has some basic uses such as a spreading on dirt farm roads as a dust palliative or incorporating into composting operations. My current intent is to use it as nutrient for the algae. However, since your process can avoid the production of glycerol in the first place, it is to be preferred over standard transesterification. Congratulations. As to collaboration, I'm very much in favor of exchanging ideas. In May of this year I flew to Bucharest, Romania, and consulted with an investor who was interested in algal oil as a replacement feedstock for seed oil and in producing biodiesel. Prior to the trip, I investigated geothermal sites along the western border of Romania and found numerous ¡§hot spots¡¨. A local real estate agent found some likely sites which were also good farm lands. I suppose there are geothermal sites in Hungary which would be ideal for co-location of the algae farm and the biodiesel production site. I am currently exploring geothermal sites in the U.S. and have found many suitable locations. There are mostly likely many more to find. I was recently contacted by an inventor in Illinois who has a middle eastern contact with an agent for hedge fund managers, who is also a chemical engineer. The fund managers are interested in algal oil as a feedstock for biodiesel. Because of the liquidity crisis, that source of funding is probably on hold. I assume your company is facing the same lack of funding as ours. While we have really great and creditable ideas and maybe some lab work on them, as yet no substantial pilot plant has proven that our ideas work at large scale. We both need to build the pilot plant on a scale which will encourage substantial investment in the larger, operating plant of say, 30 million gallons of biodiesel per year. I honor your research and progress toward green energy. You are very correct in asserting that transesterification with methanol or ethanol is not all that ¡§green¡¨. We have a great deal in common on creating a small carbon (fossil fuel) footprint for our products. I am also currently tracking the technology in producing syngas and biochar. http://algaloildiesel.wetpaint.com/page/SYNGAS+AND+BIOCHAR To being our collaboration, we might easily do so by using a wikiweb as our joint collaboration site. I suggest Wetpaint.com. It is free (with ads) or can be ad free for low cost. I can set it up. We can keep the site private for our use only. Any really sensitive materials can be encrypted and copied to a CD and sent by surface mail. I suggest a goal for a joint enterprise, that of two, farm sized, pilot plants, one in the U.S. and one in Hungary. I can probably get USAID to help finance the one in Hungary or even Romania. Locating at a proven geothermal site would be highly advantageous because of the ¡§free¡¨ heat needed to keep the water in the algae ponds at 72 degrees F. We will need to demonstrate that the pilot plant, itself, has financial value as a ¡§local¡¨ point of processing algae and biodiesel. The idea would be for a local algal oil processing plan to process algae grown my many local farmers who form a co-operative business. One pilot plant could serve an entire community of, say, 5000 people, with biodiesel. We need to think about different scales of plants for different markets and different location. We will need to have some tentative locations, land prices and plant capital, start-up and operational costs. I have some of this information for such plants as would be built in western United States. You would presumable obtain the same type of information for a plant in Hungary. When we have these costs well documented, I can start writing applications for grants and loans. These basic documents will act as templates which can be modified to fit the circumstances of a specific investor or lender. Thus, we can attract investments from th US as well as EU. I have a back ground in construction project management and would be the project manger for both plants, to be built in sequence. I have also a substantial background in law and in real estate development, which will be very useful in managing the individual projects as well as the joint venture itself. My resumes are at: http://algaloildiesel.wetpaint.com/page/RESUMES+OF+JAMES+E.+MILLER If you are agreeable to starting the wikiwebsite, please let me know of the content you have to contribute. We might consider having the wikiweb display each page in English and Hungarian and any other languages as may be appropriate. We look forward to more discussion on the joint venture. I would appreciate having your resume. Sincerely yours, James E. Miller, BA, BS, JD