Phycal, Inc. is developing an integrated system for producing renewable biofuels and their co-products from algae. The biofuels include renewable “green” drop-in jet fuel and diesel, straight vegetable oil, fuel oil blends (e.g. for industrial boilers), and others. Co-products could include proteins, methane, hydrogen, animal or human nutritional products, and others. Phycal’s strategic approach combines innovative technology and system engineering with a business focus on producing biofuels at market competitive prices. The Company is currently conducting research and development in a subpilot facility in Ohio and in its algae research laboratory in St. Louis. Phycal will construct a pilot facility in Hawaii and begin operations in 2011. Successful demonstration and testing of components, system performance, and product qualification at pilot will support deployment of demonstration/pre-commercial and commercial-scale farms.