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$8/bu Corn, $200/barrel Oil, and CPAC John Steichen Senior Research Fellow DuPont CPAC Summer institute July 15, 2008

$8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Page 1: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

$8/bu Corn, $200/barrel Oil, and CPAC

John SteichenSenior Research FellowDuPont

CPAC Summer instituteJuly 15, 2008

Page 2: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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• Unprecedented growth in developing countries

• Need for increased food production

• Drive for renewable energy and materials

• Demand for greater safety and security

• Desire for increased connectivity

Mega Trends Offer Growth Opportunities

Page 3: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Page 4: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Food

Safety &Security

Connectivity

RenewableEnergy

Advanced & Renewable Materials

Chemistry

Biology

Engineering

Materials Science

EnergyEfficiency

Optimum™ GAT™

Biobutanol

PV

Cellulosic Ethanol

Metallized Tyvek®

Sorona®

BioPDO™ SentryGlas®

Plus

Kevlar®

Chem Bio Protection Garments

Rynaxypyr®

Next Gen Refrigerants

Low solar heat gain

glass

New Product Technologies Aligned with Global Trends

TCF

OLEDsEmb.

Passives

LCD Coatings &

Films

Renewably Sourced Hytrel®

Herculex®

Nanoscience

Industrial Biotech

Crop Genetics

Omega-3

Page 5: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Driving Progress inSustainable Growth

Page 6: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Progress to DateReduced Environmental Footprint

Major Incidents 90% ReductionAir Toxics 75% ReductionAir Carcinogens 92% Reduction Hazardous Waste (Dry) 42% Reduction U.S. TRI “Releases” 77% ReductionGreenhouse Gas Emissions 72%* Reduction

Production increased 40% during this period

1990 to Present

* 1990 to 2003 reduction. 1990 to present reductions excluding Invista are 60%

Page 7: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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“Flat” Energy has Saved Real Money

Since 1990, production volume grew by 40% while energy use remained flat

1990 1997 2007

150

Cumulative Savings @ $20-60/bbl of oil = $3.0B

20 MM barrels of oil

$800 MM or 60 cents per share

100Energy Use

Baseline = ¼ Quad Btu

140

130

120

110

Page 8: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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2015 Sustainability Goals

Page 9: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Reducing Environmental Footprint• Greenhouse Gas Emissions

• Water Conservation

• Fleet Fuel Efficiency

• Air Carcinogens

• Independent Verification of Site Programs

Serving the Marketplace• Environmentally Smart Market

Opportunities from R&D Efforts

• Products that Reduce Greenhouse Gas Emissions

• Revenues from Non-Depletable Resources

• Products that Protect People

Our 2015 Sustainability Goals

Page 10: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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2010 Footprint Goals• Hold total energy flat with 1990 levels - currently down 6%.• 10% energy from renewable sources at cost competitive with best

available fossil fuels - currently at 5%.

2015 Footprint Goals• Greenhouse Gas Emissions: Reduce additional 15% from base

year 2004.• Water Conservation: Reduce water consumption 30% at global

sites that are located where the renewable freshwater supply is either scarce or stressed, based on United Nations analysis.

• Fleet Fuel Efficiency: Ensure that 100% of our off-site fleet of cars and light trucks employ leading technologies for fuel efficiency and fossil fuel alternatives.

• Air Carcinogens: Reduce 50% from a base year of 2004. • Independent Verification: Ensure that 100% of our sites are ISO

14000 certified.

Page 11: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Reducing DuPont’s Footprint• Greenhouse Gas Emissions• Water Conservation • Fleet Fuel Efficiency• Air Carcinogens• Independent Verification of Site Programs

Serving the Marketplace• Environmentally Smart Market

Opportunities from R&D Efforts• Products that Reduce Greenhouse Gas

Emissions• Revenues from Non-Depletable

Resources• Products that Protect People

Our 2015 Sustainability Goals

Page 12: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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2015 Market-Facing GoalsEnvironmentally Smart Market Opportunities from R&D Efforts:Double our investment in R&D programs with direct, quantifiable environmental benefits for our customers and consumers along our value chains.

Products that Reduce Greenhouse Gas Emissions: Increase our annual revenues by at least $2 billion from products that create energy efficiency and/or significant greenhouse gas emissions reductions.

Revenues from Non-Depletable Resources: Nearly double revenues from non-depletable resources to at least $8 billion.

Products that Protect People: Introduce at least 1,000 new products or services that help make people safer globally.

Page 13: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Serving the Marketplace: Bio-Based Economy

Oil Refining Chemistry

Crops Biomass Feedstock Metabolic Engineering

Solvents

Molded parts

Fuels

Fibers

Current Technologies

Developing Technologies

Page 14: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Serving the Marketplace:DuPont Three-Part Biofuels Strategy

Agricultural InputsSeeds & Crop Protection

Biofuels From Biomass

Advanced Biofuels

Seed & Crop Protection Solutions

Biobutanol

Cellulosic Fuels

Page 15: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Reducing reliance on fossil fuels through bio-based materials DuPont has nearly a dozen business opportunities for bio-based materials using renewable resources.

Page 16: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Cellulosic Feedstocks for Industrial Chemicals and Biofuels: The Fundamental Problem

Knowledge of the process state is poor.

There is a significant need for improved bioprocess analytical tools.

Page 17: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Bioprocess Problems from the Chemical Industry ViewpointFermentation is a difficult process to control

Enzyme optimization during saccharification is difficult

Separations are difficult and expensive

Yields and rates are poor

Consortia formed, or being formed, in Europe to address these

measurement problems.

Doesn’t optical spectroscopy address these measurement

problems?

Page 18: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Examples of Demonstrated, Uncommon, PAT Technologies

2-Dimensional Fluorescence• Gene expression control

Dielectric Spectroscopy• Total viable cell mass

Proton Transfer Reaction Mass Spectroscopy• Gene expression control

Virtually unknown and unused in the U.S.

Page 19: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption

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Possible CPAC Arrangement

Establishment of Model Reactors • Reproducible

• Value for development of control strategies

• Safe

• Use for base development of PAT

Fermentation• Gene expression

• Inclusion bodies

Saccharification

Page 20: $8/bu Corn, $200/barrel Oil, and CPAC · 2015 Footprint Goals • Greenhouse Gas Emissions: Reduce additional 15% from base year 2004. • Water Conservation: Reduce water consumption