sustainable bioenergy and economic aspects · 2011. 11. 21. · cellulosic ethanol: ... integrated...
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Sustainable Bioenergy and Economic Aspects
Dr. John P. Ranieri
Vice President, Industrial Biosciences
GBEP Executive Capacity Development SeminarRome, Italy November 11, 2011
Smart, Sustainable Growth
DuPont’s commitment:
Creating shareholder and societal value while decreasing the environmental footprint along
“Environmental footprint” = injuries, illnesses, incidents, waste and emissions, and depletable forms of raw materials and energy
decreasing the environmental footprint along our value chains
11/11/2011 2
DuPont Pro Forma Sales – 2010*
AgriculturePerformance
Coatings
Nutrition & Health
$7.8 B
$3.0 B
$3.8 B
$6.3 B$2.8 B
3
TotalCompany$34.1B
Electronics &Communications
Performance Chemicals
Performance Materials
Safety &Protection
Industrial Biosciences* Includes $0.2B in ‘other’ sales.
Total company sales exclude transfers.
$34.2B*
$6.3 B
$3.4 B
$2.8 B
$6.3 B
$0.9 B
11/11/2011
Megatrends � Opportunities
Megatrend DuPont Solutions
GoalsIncreasing Food Production
• Seeds, crop protection, food & nutrition products, and food packaging materials
Goals Decreasing Dependence
on Fossil Fuels
• PV, fuel cell components, energy efficient Tyvek® materials, lightweight composites for transportation,
biofuels, biomaterialson Fossil Fuels
biofuels, biomaterials
Goals Protecting People & the
Environment
• Kevlar®, Nomex® and Tyvek® for worker protection, SentryGlas®, safety services, environmental protection
material solutions
Goals Growing in Developing
Markets
• Agricultural products, food packaging, materials for construction & infrastructure projects, PV…
Strong Renewable Products Portfolio Megatrends Drive Opportunities for Tailored, Differentiated Offerings & Market Partnerships
11/11/2011 4
History of Industrial Development
According to the Center for Biobased Renewable Chemicals (CBiRC)We are entering into an age of Industrial Biotechnology
Source: CBiRC
11/11/20115
Innovation Aimed at Global Megatrends
FEEDING THE
DECREASING DEPENDENCE ON FOSSIL FUELS *
PROTECTING PEOPLE & THE
ENVIRONMENT *
$1.7 billion in 2010(prior to Danisco acquisition)
Chemistry
Engineering
Materials Science
85% of R&D Spend is on Innovation
Addressing Megatrends*
FEEDING THE WORLD*
CHEMICALS AND MATERIALS
ELECTRONICS
Materials Science
Nanotechnology
Industrial Biotech
Agriculture Biotech
11/11/2011 6
DuPont Growth Strategy
Building three world-leading, integrated competencies:
• Ag & Nutrition
• Bio-based Industrials
• Advanced Materials & Processes
The Premier Market-Driven Science Company Creating Value for Our Customers
7
Ag & Nutrition
Seeds
Traits
Ag Chemicals
Specialty Food
Ingredients
Advanced Materials
Electronic Materials
Protective Materials
Alternative Energy
Advanced Polymers
Advanced Processes
Biotechnology Enabled Materials Science Enabled11/11/2011
Unlocking the potential
Food & Feed Enzymes
Industrial
Enzymes
Fabric & GenencorEnzymes
8
Performance Proteins & Peptides
Biofuels
Biochemicals
Fabric & Household Care
Agriculture Sugar
Biomaterials
GasolineDiesel
DuPontBiorefinery
Enzymes
11/11/2011
World Energy
The opportunity to replace oil-based transportation fuels in existing vehicles & infrastructure is large
2500
3000
3500
4000
(in MM tons oil equiv./ year)Renewables
Hydro
Nuclear
Coal
Gas
Oil
(in million tons oil equiv./ year)
World E
nerg
y
Source: IEA World Energy Outlook
0
500
1000
1500
2000
2500
Transportation Stationary Electricity
Oil
World E
nerg
y
11/11/2011 9
DuPont and the Biofuels Industry
Higher YieldingCrops
Product Market Vehicle
�Corn HTF Hybrids�Crop Protection
Chemicals
Strategy Element
Conversion ofCellulosic
Feedstocks
AdvantagedProducts
�CellulosicEthanol
�Biobutanol
Biofuel ProductionImprovements
�FermaSure®
�MarketPoint®
�Ethanol
11/11/2011 10
Biofuels - Large Addressable Market Globally
• Growing ~10%/yr through 2020, >$100B market
• 27% of total transport fuel (from 2-3% today).
• Demand highest in OECD countries,
• 2030 - Non-OECD countries will account for 60%
• Drop-in fuels and non-food feedstocks essential
100
150
200
250
B g
als
Biofuel Demand by Region 2010-2050 (Source: IEA 2010-11)
• Tremendous advanced biofuels capacity build-out:
� Existing + in construction + planned = ~2 billion gallons 2015
� 30-fold increase over currently announced capacity by 2030
� 4-fold increase again required to 2050
50
100
150
200
250
B g
als
Biofuel Demand by Type 2010-2050 (Source: IEA 2010-11)
50
11/11/2011 11
• Industry requirements:
• Low cost cellulosic sugar source for fermentation
• Biocatalyst productions of high value products
• DuPont provides needed integrated solutions
Agriculture & Industrial Biotechnology
SugarBiomass
Raw Material
Biomass Processing
IntegratedBiorefinery
� Materials� Chemicals� Biofuels
MetabolicEngineering
Upstream Downstream
Microbe Engineering
Fermentation
Markets
• Low cost
• Localized feedstocks
• High performance
• Sustainable
11/11/201112
Cellulosic Ethanol: Non-food Feedstocks Demonstration Facility
DuPont Enables Growth of the Biofuel IndustryUpstream Strategy
• >60% greenhouse gas reduction
• Non-food sources and marginal land
• Multiple feedstocks available
• Excellent income for farmers
• DuPont Danisco Cellulosic Ethanol (DDCE)
• Demonstration facility in Vonore, Tenn.
• Current feedstock focus: stover, cob, switchgrass, sorghum
• Commercialization: license & build
Advantages: Commercialization Path:
Low Cost, Low Carbon, Scalable, Sustainable
11/11/2011 13
DuPont Cellulosic Ethanol Conversion Process
SeparationFermentationSaccharificationPretreatmentMilling
• High bulk density
• Minimize dirt, rocks
• Minimal capital
• Facilitate enzymes
• Minimize inhibitors
• Mild process
• High solids• High sugar yield• High sugar titers• Low enzyme
loading• Minimize
inhibitors
• C5/C6 utilization
• High ethanol yield
• High ethanol titer
• Recover product
• Recover lignin• Recycle water
Integrated Science is Key to Low Cost11/11/2011 14
Refining Blending
Distribution
Cost Capital
Conversion
Collection Preparation
Feedstock
Two Feedstock Types
DeployDeploy
Commercializing Cellulosic Ethanol
• Agricultural residue - Midwest
• Development in harvest, storage and transport, densification, moisture issues
• Next: grower programs
• Energy grasses – growth to full capacity:
• Multiple grass sources available e.g. switchgrass
• State of TN program - $30 million for upstream development
• ~6,000 acres in 2010
Two Feedstock Types
Current corn acres
Potential Energy Grass
Source: DDCE, Univ. Tenn., USDAMultiple Feedstocks Needed to Satisfy Growth and Goals
15
Bio-PDO™ & Sorona® BusinessA Case Study
Bio-PDO
Addressable Markets
Apparel$8B
CommercialCarpet
$2B
ResidentialCarpet$3B
Sorona®Polymer
DuPont
Direct Sales
Packaging$1B
Auto Interiors -Others$1B
EngineeringPolymers$1.5B
Creating cost effective, superior performing renewable materials for large addressable markets
Creating cost effective, superior performing renewable materials for large addressable markets
11/11/2011 16
Bio-PDO™
Business
Enabling Building Block for Renewable Materials
• Most sophisticated microbial production system
• One of the world’s largest aerobic facilities
• Bio-PDO™ business advantages:
• Significantly lower cost of manufacture
• 50% smaller environmental footprint
100 million lb facility in Loudon TN
• 50% smaller environmental footprint
• Large markets for new Bio-PDO™
applications:
• Sorona®, Zemea®, Susterra®
• 35% capacity expansion by mid-2011
Bio-PDO™
Propanediol
Breakthrough Innovation for Industrial Biotechnology11/11/201117
Technology Leverages Installed Asset Base Across Value Chain
Global Fiber Partnerships
Polymer Asset Conversion Capability
Low Cost Fermentation
Process
DownstreamUpstream
Bio-PDO™ and Sorona® Value Capture Model
High Asset Productivity - Rapid Scale Up
• Utilize existing assets• Rapid conversion• Knowhow enabled
• Proprietary applications• Enabling patents• Brand
• Feedstock/site flexibility• Low capital/cost intensity• Renewable material
DuPontbiotechnology advantage
Proprietary technology repurposes available asset infrastructure
11/11/2011 18
Biobutanol
Ethanol
Enzyme Technology
Pretreatment
DuPont plays across the value chain
Formerly DDCE
Enzymes Business
BIOMASS PRE-TREATMENT LIQUEFACTION FERMENTATION
Crop Protection
BioIsoprene
Bio-PDO™
Ethanologen
Formerly DDCE
Enzymes Business
11/11/2011 19
Biofuels Mandates and Targets Around the World…- Energy independence & security - Rural development & support
- Reduction of greenhouse gases - Green jobs
11/11/2011 20
Summary
Integrated science is critical to successTechnical feasibility
Market insight
Environmental sustainability
Partnerships are essentialTechnology is complexTechnology is complex
Speed Is critical
Resources needed are significant
Government support is an important success factorHigh risk/large investments
Value externalities
Geography specific strategiesRegions require customized solutions
11/11/2011 21
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