ExxonMobil and Synthetic Genomics Report Breakthrough in Algae Biofuel Research

• Algae strain developed and modified by Synthetic Genomics more than
  doubled oil production
• Additional research and testing required before commercial application
• Results published in peer-reviewed journal Nature Biotechnology

IRVING, Texas & LA JOLLA, Calif.–(BUSINESS WIRE)–ExxonMobil
and Synthetic Genomics Inc. today announced a breakthrough in joint
research into advanced biofuels involving the modification of an algae
strain that more than doubled its oil content without significantly
inhibiting the strain’s growth.

Using advanced cell engineering technologies at Synthetic Genomics, the
ExxonMobil-Synthetic Genomics research team modified an algae strain to
enhance the algae’s oil content from 20 percent to more than 40 percent.
Results of the research were published
today in the peer-reviewed journal Nature Biotechnology by
lead authors Imad Ajjawi and Eric Moellering of Synthetic Genomics.

Researchers at Synthetic Genomics’ laboratory in La Jolla discovered a
new process for increasing oil production by identifying a genetic
switch that could be fine-tuned to regulate the conversion of carbon to
oil in the algae species, Nannochloropsis gaditana. The team
established a proof-of-concept approach that resulted in the algae
doubling its lipid fraction of cellular carbon compared to the parent –
while sustaining growth.

“This key milestone in our advanced biofuels program confirms our belief
that algae can be incredibly productive as a renewable energy source
with a corresponding positive contribution to our environment,” said
Vijay Swarup, vice president for research and development at ExxonMobil
Research and Engineering Company. “Our work with Synthetic Genomics
continues to be an important part of our broader research into
lower-emission technologies to reduce the risk of climate change.”

“The major inputs for phototropic algae production are sunlight and
carbon dioxide, two resources that are abundant, sustainable and free,”
said Oliver Fetzer, Ph.D., chief executive officer at Synthetic
Genomics. “Discoveries made through our partnership with ExxonMobil
demonstrate how advanced cell engineering capabilities at Synthetic
Genomics can unlock biology to optimize how we use these resources and
create solutions for many of today’s sustainability challenges – from
renewable energy to nutrition and human health.”

Algae has been regarded as a potential sustainable fuel option, but
researchers have been hindered for the past decade in developing a
strain that is high in oil content and grows quickly – two critical
characteristics for scalable and cost-efficient oil production. Slower
growth has been an adverse effect of previous attempts to increase algae
oil production volume.

A key objective of the ExxonMobil-Synthetic Genomics collaboration has
been to increase the lipid content of algae while decreasing the starch
and protein components without inhibiting the algae’s growth. Limiting
availability of nutrients such as nitrogen is one way to increase oil
production in algae, but it can also dramatically inhibit or even stop
photosynthesis, stunting algae growth and ultimately the volume of oil
produced.

The ability to sustain growth while increasing oil content is an
important advance. Algae has other advantages over traditional biofuels
because it can grow in salt water and thrive in harsh environmental
conditions, therefore limiting stress on food and fresh water supplies.

Oil from algae can also potentially be processed in conventional
refineries, producing fuels no different from convenient, energy-dense
diesel. Oil produced from algae also holds promise as a potential
feedstock for chemical manufacturing.

“The SGI-ExxonMobil science teams have made significant advances over
the last several years in efforts to optimize lipid production in algae.
This important publication today is evidence of this work, and we remain
convinced that synthetic biology holds crucial answers to unlocking the
potential of algae as a renewable energy source,” said J. Craig Venter,
Ph.D., Synthetic Genomics co-founder and chairman. “We look forward to
continued work with ExxonMobil so that eventually we will indeed have a
viable alternative energy source.”

Since 2009, ExxonMobil and Synthetic Genomics have been partners in
researching and developing oil from algae to be used as a renewable,
lower-emission alternative to traditional transportation fuels. Swarup
said that while the breakthrough is an important step, the technology is
still many years from potentially reaching the commercial market.

“Advancements as potentially important as this require significant time
and effort, as is the case with any research and development project,”
Swarup said. “Each phase of our algae research, or any other similar
project in the area of advanced biofuels, requires testing and analysis
to confirm that we’re proceeding down a path toward scale and commercial
viability.”

ExxonMobil is engaged in a wide range of research on advanced biofuels,
partnering with universities, government laboratories, and other
companies. Global demand for transportation-related energy is projected
to increase by about 25 percent through 2040, and accelerating the
reduction in emissions from the transportation sector will play a
critical role in reducing global greenhouse gas emissions.

ExxonMobil
is also actively researching other emission-reducing technologies,
including carbon capture and sequestration. In 2016, ExxonMobil
announced its partnership with Connecticut-based FuelCell Energy, Inc.
to advance the use of carbonate fuel cells to economically capture
carbon emissions from power plants while generating hydrogen and
additional electricity. Since 2000, ExxonMobil has spent about $8
billion to develop and deploy lower-emission energy solutions across its
operations.

NOTE TO EDITORS:

Vijay Swarup, Craig Venter and Oliver Fetzer will discuss the research
breakthrough and answer questions during a media briefing scheduled for
10 a.m. PDT today at the San Diego Convention Center, located at 111 W.
Harbor Drive, in Room 32B on the upper level. The live briefing and
replay may also be accessed online via an interactive webcast.

About ExxonMobil

ExxonMobil, the largest publicly traded international energy company,
uses technology and innovation to help meet the world’s growing energy
needs. ExxonMobil holds an industry-leading inventory of resources, is
one of the largest refiners and marketers of petroleum products and its
chemical company is one of the largest in the world. For more
information, visit www.exxonmobil.com
or follow us on Twitter www.twitter.com/exxonmobil.

Cautionary Statement: Statements of
future events or conditions in this release are forward-looking
statements. Actual future results, including the timing, results and
impact of new technologies, could differ significantly depending on the
outcome of further research and testing; the development and
competitiveness of alternative technologies; the ability to develop and
scale pilot projects on a cost-effective basis; political and regulatory
developments; and other factors discussed in this release and under the
heading “Factors Affecting Future Results” on the Investors page of
ExxonMobil’s website at exxonmobil.com.

About Synthetic Genomics

Synthetic Genomics is programming the operating system of life to create
sustainable solutions for humankind’s most pressing issues, from the
wellbeing of our population to the health of our planet. With an
unmatched understanding of how DNA drives the function of cells — the
basic biological units of all living organisms — Synthetic Genomics
modifies and writes genomes to enable transformative products in the
areas of vaccines, medicines, nutrition, and biotechnology research. In
addition to designing novel organisms that overcome fundamental hurdles
of scientific research and medicine, Synthetic Genomics pursues
partnerships with organizations seeking to dramatically improve upon
existing products in health care, energy, and other sectors. Continuing
its legacy of scientific firsts in genomics and synthetic biology,
Synthetic Genomics is harnessing the power of nature to improve quality
of life. More information is available at www.syntheticgenomics.com.

Contacts

ExxonMobil
Media Relations, 972-444-1107
or
Synthetic
Genomics
Media Relations, 619-849-6005