North American Cannabis Holdings Inc (USMJ)

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POP (Pacific Oil Products [joint venture w/NVAE] already has plenty of lucrative oil contracts as you will see in one of David's broadcast messages below. Pacific Algae Tulare will sell oil into these applications. The project is already getting funded from the POP side:

"Let me start by showing pharmaceutical-grade moringa seed oil extraction:

Cold-pressed moringa oil has remarkable healing properties, and is sold at $8 per ounce ($1000 per gallon) to plastic surgeons who prescribe it to their patients to heal the wounds and scars of surgery. The surgeons charge retail $16 per ounce ($2000 per gallon). I have talked to patients who find this oil to work so well that they would pay double what they do for the 15 or so ounces that they need.

Now, back to biodiesel production:

When I recently visited Turkey, I was paraded around as the American big shot. I saw regional facilities that produce hundreds of millions of liters of biodiesel annually:

I could only shake my head and think to myself that they have no idea how we are "amateur hour" over here. The whole state of California does not match the production of this one facility. In the hour or so that I spent meeting the plant director, I saw 9 of these fully-loaded trucks leave the facility:

Diesel costs $9 per gallon in Turkey, and these plants operate in a free market. As we drove on to our algae adventure, we noticed this Porsche Panamera Diesel which had filled up at the facility minutes earlier:

Most of the current feedstock comes from olive oil pomace. If olives are about 30% oil by weight, pressing removes about 22% of the 30%. The remaining 8% must be solvent extracted and is not food grade, but perfect for biodiesel production. The enterprise is so profitable that many people now harvest olives from the many abandoned olive orchards that exist throughout Turkey, many of which are hundreds, some even over a thousand years old.

As successful as Turkey is at meeting the EU standard of 15% biodiesel blend, they realize that there is no more potential from olive oil. They must turn to algae if the nation would free itself from petroleum:

Here were the first attempts to extract oil from algae chips that came from that pond:

Unfortunately, the oil content of those chips is very low, maybe 10%. The problem is that algae in those ponds do not suffer much stress, therefore there is little motivation for them to synthesize oil. I looked at the drainage channels of the ponds to find oily algae:

Dried chips from the drainage channel algae were 50% oil by weight. I advised the Turks to move the algae from the natural ponds to second ponds for a high-stress-oil production phase. Since that time, the oil content has been boosted to 40%. They are now following the two-step model that I saw at SD-CAB (exponential growth in a bioreactor (which for them is the natural hot springs pond), oil production in an open pond):

The Turks know what I have done, and they appreciate that I share what I know.

Witness the first flight of an aircraft with algal biofuel. The US Navy made a small procurement of true algal biofuel from me when they realized that their original "algal" tests actually burned fuel from chicken fat and yellow grease:

Because of the issues that the Navy had, NASA's contract to test civilian bio jet fuels specified seed oil and not algae:

I can provide whatever oil the government needs, but seed oil was a step backwards.

Why is Turkey successful at developing biofuels while the United States fails completely in this area? It is because the United States government subsidizes the industry, while Turkish companies simply must match the $9 per gallon price point of petroleum diesel.

We can change that reality. The truth is that we have better resources than Turkey to produce algal oil and fuel. This is a follow-up e-mail to one I wrote earlier. The solution to our whole problem lies in the ponds below (if nothing else, look at the map):

http://www.energy.ca.gov/contracts/PON-13-601/

I am going to throw this out there. I, unfortunately, am too busy building and delivering oil presses to focus on this grant.

A proper grant application requires about a $50,000 investment. You may peruse the files to see what is required. In addition to answering questions and providing documentation, most of which I have, there must be connections to government officials and lobbying. The key to being awarded this grant is producing enough feedstock to supply the 15 million gallons of refined fuel specified.

I already have that amount of oil, most of which is pennycress, camelina, jatropha and other USDA-approved, non-edible, renewable biofuel feedstock:

Unfortunately, we are becoming accustomed to the oil being worth $25 per gallon as feedstock for applications like bioplastics production, cosmetics oils and synthetic lubricants production:

This stuff is liquid gold; we wouldn't dream of turning it into biofuel:

(This oil goes to L'Oreal at $25 per gallon to make shampoos, cremes, etc.)

(This oil goes to Dow Chemical at $12 per gallon for bioplastics production.)

(This oil goes to Kumho Group at $25 per gallon for cutting oil, hydraulic oil and other lubricants.)

There are not enough grease traps in the whole state of California to provide the feedstock needed. The only solution is algae. At this moment, the oil exists in only one place. Apart from my occassional stabs at the ponds, it is mostly destroyed in a gasification process:

Map:
http://maps.google.com/maps?ll=36.188193,-119.373871&spn=0.001926,0.00327&t=h&z=19&lci=com.panoramio.all

1) Start with dairy waste (mostly fats, oils and greases):

2) Add a little clean CO2 (stimulates oil production, kills bacteria):

3) Mix with aerator pumps (also kills bacteria):

4) 24 to 48 hours later, you have thick algal biomass at 50% oil (mostly medium-chain fatty acids) by dry biomass weight:

5) Machine cuts through it like butter:

6) Oil Storage:

At the moment, some of you are struggling with oil extraction or producing oil to extract. I spent several weeks in Turkey building what I believe the best oil extraction method in the world. That's why I built the hammer... for you:

"