Algenol has entered into a license agreement with SONORA FIELDS S.A.P.I. de C.V. a wholly owned subsidiary of BIOFIELDS S.A.P.I. de C.V. in Mexico and is currently working closely with SONORA FIELDS and both local and federal Mexican governments to commercialize the DIRECT TO ETHANOL™ process. Algenol works with a number of other collaborators and companies to further develop and commercialize its existing technology.

Algenol is in process of applying for permits for U.S.-based sites and has identified opportunities in Florida, California, Texas and other states.

Please contact us to learn more about these services and partnering arrangements.Algenol is currently identifying additional site locations for industrial-scale production facilities in other parts of the world.The Company has active research collaborations with many universities and leading scientists.

• Algenol’s technology will be further developed and implemented during 2008.

• Algenol’s first commercial project for ethanol production will begin sales in Sonora, Mexico in 2009.

• Mexico has recently passed the "Law for the Development and Promotion of Biofuels" and has committed to the use of ethanol in México, including ethanol from algae.

• The Mexican government has shown support for the project through joint efforts of the Executive and Legislative powers. Government support for ethanol production from algae has translated into:

1.      The Law for the Development and Promotion of Biofuels.
2.      A Trilateral (México, US and Canada) Workshop on Biofuels.
3.      México’s First International Biofuels Congress.

There are key institutions in Mexico whose collaboration is worth noting:

1.      Office of the President.
2.      The Ministry of Energy.
3.      The Ministry of Agriculture.
4.      The Ministry for the Environment.
5.      The government of the state of Sonora.
6.      County authorities in Puerto Libertad, Sonora.
7.      The Energy and Agriculture commissions of both the Senate and
the House of Representatives.