Sustainable Bioenergy and Economic Aspects

Dr. John P. Ranieri Vice President, Industrial Biosciences

GBEP Executive Capacity Development Seminar Rome, Italy November 11, 2011 Smart, Sustainable Growth

DuPont’s commitment: Creating shareholder and societal value while decreasing the environmental footprint along our value chains

“Environmental footprint” = injuries, illnesses, incidents, waste and emissions, and depletable forms of raw materials and energy

11/11/2011 2 DuPont Pro Forma Sales – 2010*

$3.0 B

$7.8 B Nutrition & Health $3.8 B Agriculture Performance Coatings

$2.8 B $6.3 B Total Electronics & Performance Communications Company$34.2B * Materials $34.1B $6.3 B $3.4 B Performance Safety & Chemicals Protection $0.9 B Industrial * Includes $0.2B in ‘other’ sales. Total company sales exclude transfers. Biosciences

11/11/2011 3 Megatrends  Opportunities

Megatrend DuPont Solutions

Goals Increasing Food Production • Seeds, crop protection, food & nutrition products, and food packaging materials

Goals Decreasing Dependence • PV, fuel cell components, energy efficient ® materials, lightweight composites for transportation, on Fossil Fuels biofuels, biomaterials

®, ® and Tyvek® for worker protection, Goals Protecting People & the SentryGlas®, safety services, environmental protection Environment material solutions

Goals Growing in Developing • Agricultural products, food packaging, materials for Markets 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

5 11/11/2011 Innovation Aimed at Global Megatrends $1.7 billion in 2010 DECREASING DEPENDENCE ON (prior to acquisition) FOSSIL FUELS *

Chemistry PROTECTING Engineering PEOPLE & THE ENVIRONMENT * FEEDING THE Materials Science WORLD * Nanotechnology Industrial Biotech Agriculture Biotech CHEMICALS AND MATERIALS

ELECTRONICS

85% of R&D Spend is on Innovation Addressing Megatrends *

11/11/2011 6 DuPont Growth Strategy

The Premier Market-Driven Science Company Creating Value for Our Customers

Building three world-leading, integrated competencies: • Ag & Nutrition • Bio-based Industrials • Advanced Materials & Processes

Advanced Ag & Nutrition Materials Seeds Electronic Materials Traits Protective Materials Ag Chemicals Alternative Energy Specialty Food Advanced Polymers Ingredients Advanced Processes

Biotechnology Enabled Materials Science Enabled 11/11/2011 7 Unlocking the potential

Industrial Enzymes

Food & Feed Enzymes

Genencor Enzymes Fabric & Household Care

Performance Agriculture Sugar Proteins & Peptides

DuPont Biomaterials Biorefinery

Biochemicals Gasoline Diesel Biofuels

11/11/2011 8 World Energy The opportunity to replace oil-based transportation fuels in existing vehicles & infrastructure is large

(in(in MMmillion tons tonsoil equiv./ oil equiv./ year) year) Renewables 4000 Hydro 3500 Nuclear Coal 3000 Gas 2500 Oil 2000

1500 World Energy Energy World World 1000

500

0 Transportation Stationary Electricity

Source: IEA World Energy Outlook

11/11/2011 9 DuPont and the Biofuels Industry

Strategy Element Product Market Vehicle

Corn HTF Hybrids Higher Yielding Crop Protection Crops Chemicals

Conversion of Cellulosic Cellulosic Ethanol Feedstocks

Advantaged Biobutanol Products

FermaSure ® Biofuel Production MarketPoint ® Improvements Ethanol

11/11/2011 10 Biofuels - Large Addressable Market Globally

• Growing ~10%/yr through 2020, >$100B market 250 Biofuel Demand by Region 2010-2050 (Source: IEA 2010-11) • 27% of total transport fuel (from 2-3% today). 200 • Demand highest in OECD countries, • 2030 - Non-OECD countries will account for 60% 150 • Drop-in fuels and non-food feedstocks essential B gals B 100

50 250 Biofuel Demand by Type 2010-2050 (Source: IEA 2010-11)

200

150 B gals B 100 • Tremendous advanced biofuels capacity build-out:  Existing + in construction + planned = ~2 billion gallons 2015

50  30-fold increase over currently announced capacity by 2030  4-fold increase again required to 2050

11/11/2011 11 Agriculture & Industrial Biotechnology

• Industry requirements: • Low cost cellulosic sugar source for fermentation • Biocatalyst productions of high value products • DuPont provides needed integrated solutions

Upstream Downstream Markets Biomass  Materials Biomass Microbe Raw Sugar Fermentation  Chemicals Processing Engineering Material  Biofuels

Integrated Metabolic Biorefinery Engineering

• Low cost • High performance • Localized feedstocks • Sustainable

11/11/2011 12 DuPont Enables Growth of the Biofuel Industry Upstream Strategy

Cellulosic Ethanol: Non-food Feedstocks Demonstration Facility

Advantages: Commercialization Path: • >60% greenhouse gas reduction • DuPont Danisco Cellulosic Ethanol (DDCE) • Non-food sources and marginal land • Demonstration facility in Vonore, Tenn. • Multiple feedstocks available • Current feedstock focus: stover, cob, switchgrass, sorghum • Excellent income for farmers • Commercialization: license & build

Low Cost, Low Carbon, Scalable, Sustainable

11/11/2011 13 DuPont Cellulosic Ethanol Conversion Process

Milling Pretreatment Saccharification Fermentation Separation

• Minimal • High solids • C5/C6 • High bulk • Recover capital • High sugar yield utilization density product • Facilitate • High sugar titers • High ethanol • Minimize dirt, • Recover lignin enzymes • Low enzyme yield rocks • Recycle water • Minimize loading • High ethanol inhibitors • Minimize titer • Mild process inhibitors

Integrated Science is Key to Low Cost 11/11/2011 14 Deploy Commercializing Cellulosic Ethanol

Feedstock Conversion Distribution

Collection Preparation Cost Capital Refining Blending

Two Feedstock Types • 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

Current corn acres Potential Energy Grass Multiple Feedstocks Needed to Satisfy Growth and Goals Source: DDCE, Univ. Tenn., USDA 15 Bio-PDO™ & ® Business Addressable Markets A Case Study Residential Carpet $3B

Commercial Carpet $2B

Sorona® Apparel $8B Bio-PDO Polymer

Auto Interiors - Others $1B

Direct Sales

Engineering Polymers DuPont $1.5B

Packaging $1B Creating cost effective, superior performing renewable materials for large addressable markets

11/11/2011 16 Bio-PDO ™ Business Enabling Building Block for Renewable Materials

100 million lb facility in Loudon TN • 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 • Large markets for new Bio-PDO ™ applications: • Sorona ®, Zemea ®, Susterra ® • 35% capacity expansion by mid-2011

Bio-PDO ™ Propanediol

11/11/2011 Breakthrough Innovation for Industrial Biotechnology 17 Bio-PDO™ and Sorona ® Value Capture Model Technology Leverages Installed Asset Base Across Value Chain

Upstream Downstream

Low Cost Polymer Asset Global Fiber Fermentation Conversion Partnerships Process Capability

• Feedstock/site flexibility • Utilize existing assets • Proprietary applications • Low capital/cost intensity • Rapid conversion • Enabling patents • Renewable material • Knowhow enabled • Brand

DuPont Proprietary technology repurposes biotechnology advantage available asset infrastructure

11/11/2011 High Asset Productivity - Rapid Scale Up 18 DuPont plays across the value chain

Ethanol Formerly DDCE

Biobutanol

Pretreatment Enzyme Technology

Enzymes Business

BIOMASS PRE- TREATMENT LIQUEFACTION FERMENTATION Bio-PDO™

Ethanologen

Formerly DDCE BioIsoprene Crop Protection

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 success Technical feasibility Market insight Environmental sustainability

Partnerships are essential Technology is complex Speed Is critical Resources needed are significant

Government support is an important success factor High risk/large investments Value externalities

Geography specific strategies Regions require customized solutions

11/11/2011 21