SAPPHIRE ENERGY STATEMENT FROM VICE PRESIDENT OF CORPORATE AFFAIRS TIM ZENK, REGARDING EPA ANNOUNCEMENT OF RENEWABLE FUEL TARGETS
SAN DIEGO, Nov. 15, 2013 – Today’s announcement by the EPA to reduce the Renewable Volume Obligations (RVO) for advanced biofuels in the Renewable Fuel Standard (RFS) by 1 billion gallons jeopardizes the United States’ ability to lead the world in advanced biofuel production. Advanced biofue Energy: ls like drop-in gasoline, diesel, and jet fuel refined from Sapphire Energy’s Green Crude oil have none of the undesirable tradeoffs of first generation ethanol. These fuels are not dependent on food crops or valuable farmland; do not use potable water; do not result in biodiesel or ethanol and are completely compatible with current oil & gas infrastructure. Additionally, our company recently contributed real-world data from our facilities in New Mexico to a peer-reviewed study that determined the pathway and methods utilized by Sapphire Energy has an estimated 68% reduction in overall GHG emissions on a lifecycle basis, and is approaching the EROI of marginal sources of crude oil at commercial scale production.

This decision by the EPA has created unnecessary risk for advanced biofuel producers, and threatens the billions of dollars invested in advanced biofuel technology throughout the country. President Obama and his administration should not turn their backs on sustainable, renewable, domestic sources of advanced biofuel that are technologically ready to make the United States a world leader in fuel production. The President needs to show his support for these promising advanced fuels by not backing down from targets the industry is capable of reaching, and by encouraging swift and economic deployment of domestically grown advanced biofuels, giving the American people the freedom to choose truly sustainable, home-grown technologies that can provide a better future.

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 and cyanobacteria), 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; are compatible with existing infrastructure; and a

re low carbon, renewable and scalable.

Sapphire has an R&D facility in Las Cruces, New Mexico, and is currently operating the first Integrated Algal BioRefinery in Columbus, New Mexico, continuously since May 1, 2012.