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

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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

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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

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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

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• 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

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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

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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

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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

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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

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