DuPont Biofuels:Building a Sustainable Future
Dennis Magyar
Industry Manager North America
DuPont Biofuels
Delaware Biotechnology Institute
July 29, 2008
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
Biofuel Industry – What’s Needed?
• More participation… there’s room for everyone to create and capture value
• Strategic partnerships where appropriate across the value chain to enable speed of innovation, demonstration and validation of new technologies and solutions
• More help - $ and legislation
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
BiomassBiomass
Applied BioScience at DuPont
...Biorefinery...Biorefinery
……to Productsto Products
DuPont is exploring DuPont is exploring ““carbohydratecarbohydrate””
business opportunities business opportunities
across the industryacross the industry
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
Biofuels
Differentiated
Products
Cellulose
Starch
Sugar
SeedCrop Protection
CO2
Biomaterials
DuPont’s Biotechnology Value ChainCreating a Carbohydrate SocietyCreating a Carbohydrate Society
Plant
Feedstocks
Biofuels
Biochemicals
Fermentation
Processes
Agricultural
Inputs
Conversion
to Sugars
Metabolic Engineering
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
Increasing demand for
transport fuel
Increasing demand
on agriculture …
food vs. fuel
Increasing concern
over environment
Increasing concern over
security of supply and
rising cost
BiofuelsBiofuels
Transportation Fuels Global Market Abundance of IssuesAbundance of Issues
World is undergoing a historic change…
� Energy is the globes greatest economic threat and opportunity over the next decade
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0
25
50
75
100
2007 2020
Bil
lio
n G
all
on
s
EU & Eurasia Biofuels1 B gals growing at 25%/yr.
2020- > 20 B gals.
North America Biofuels9.3 B gals growing @ 30%/yr.
2020 - >30 B gals.
South & Central America Biofuels6.9 B gals growing at 3%/yr.
2020- > 7 B gals.
Asia Pacific Biofuels2 B gals growing at 25%/yr.
2020- > 30 B gals.
Source: EIA, F.O. Licht and DuPont estimates [Gallons shown are 2008 estimated]
20%
Global
CAGR
BioFuels Growth – 2020 Estimates by RegionA $100 billion dollar industry in the making!
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
Current Biofuel Challenges
Current biofuel solutions are inadequate to meet global needsCurrent biofuel solutions are inadequate to meet global needs
Feedstock
Adequate Regional Supply
Food v. Fuel Debate
Refinery & Pipeline
Biofuel Compatibility
With
Existing Gas Refinery Infrastructure
Retail & Consumer
Uncompromised
Fuel Performance
Compatibility with existing infrastructure
Upstream Downstream
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PRODUCTION PER ACRE
CELLULOSE CONVERSION
REFINERY BLENDING
FUEL COMPATIBILITY
MILEAGE
ENGINE DURABILITY
Feedstock Options Better Fuels
DuPont Danisco
Cellulosic Ethanol LLC
DuPont Danisco
Cellulosic Ethanol LLCDuPont BP PartnershipDuPont BP Partnership
DuPont Technologies Address Market Challenges
DuPont will bring two much-needed transformative technologies to this quickly growing market:• Ethanol production access to more plentiful and cheaper cellulosic feedstocks such as
corn stover, that cannot be used as food.• Development of a new, much better biofuel: butanol.
We do this together with partners to access key competencies for speed (e.g., Danisco), or to access market expertise (e.g., BP).
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
DuPont Biofuels:Three Strategies
Agricultural InputsSeeds & Crop Protection
Biofuels From Biomass
Advanced Biofuels
Solutions for Sustainable Feedstock
Biobutanol
Cellulosic Fuels
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
The Alliance for Abundant Food and Energy brings together a broad group of visionary companies and organizations
who understand that through greater innovation, agriculture can help meet both the world’s future food and energy needs.
From seeds…. to harvest… to breakthroughs....to processing... to fuel... and food.
www.foodandenergy.org/
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
Corn Grain for Ethanol Plants
PioneerPioneer’’s products targeted for ethanol productions products targeted for ethanol production
““more bushels per acre & more ethanol per bushelmore bushels per acre & more ethanol per bushel””
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Cellulosic Ethanol
Developing Enabling Technology
Images: www.ca.uky.edu & www.nativeaccess.com
391 Gal/Acre+400 Gal/Acre
Additional155 Gal/Acre
40 Gal/Acre
at 50%
removal
rate
310 Gal/Acre
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
Seed Cultivation Harvest Storage ProcessingTransport
Cellulosic Feedstock Value Chain Issues Require Integrated Technologies & InnovationsValue Chain Issues Require Integrated Technologies & Innovations
Key challenges ….
� biomass vs. corn grain collection, storage, transportation
� requires innovation – science & technology
� requires technology expandable to any biomass
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DuPont Danisco Cellulosic Ethanols LLC
May 2008
DuPont Danisco Ethanol is the leading lowDuPont Danisco Ethanol is the leading low--cost cost
integrated solution for converting nonintegrated solution for converting non--food biomass to ethanolfood biomass to ethanol
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
DuPont Danisco Cellulosic EthanolThe world’s first robust, integrated solution for biomass-to-ethanol
Fermentation to ethanolPretreatment Enzymatic hydrolysis
• In 2006, Governor Bredesen formed the Alternative Fuels Working Group as a first step in developing an alternative fuels strategy for Tennessee
• In 2007, the Governor and the General Assembly set aside more than $72 million to position Tennessee to be a national leader in the production of biomass ethanol and related research
•July 2008, provided $40 million in funding to build a pilot biomass ethanol plant in the FY 2007-2008 budget in partnership with DuPont Danisco
State of Tennessee
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
DuPont Danisco Cellulosic Ethanol
Commercial scale by 2012
•Start up pilot
•Optimize 2nd feedstock
•Deliver final technology package for corn cellulosic ethanol
• Optimize integrated solution for corn inputs
• Site and begin construction of TN pilot plant 2009
• Build global partnership network for development& commercialization
•Site & break ground for commercial plant by 2012
Phase I Phase IIIPhase II
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
DuPont Solutions
Downstream
Deliver Innovations that Transform the Market
An advanced biofuelAn advanced biofuel - biobutanol
Downstream
Refinery & Pipeline
Compatibility
With
Existing Gas Refinery Infrastructure
Retail & Consumer
Uncompromised
Fuel Performance
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
RENEWABLE
FEEDSTOCKS
WORLDWIDE
FUEL MARKETS
Biobutanol the Advanced Biofuel
BP & DuPont announced June 2006
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
BIOFUEL PRODUCTION TERMINALREFINERY
RETAIL / AUTO INDUSTRY / CONSUMER
PIPELINE
• BETTER FUEL CONSUMPTION
• HIGHER BLEND LEVELS WITHOUT VEHICLE MODIFICATION
• LIMITED WATER ABSORPTION
• FUNGIBLE FUEL
• PIPELINE FEASIBLE
• EXISTING INFRASTRUCTURE
• SAME AGRICULTURAL FEEDSTOCKS
• EXISTING ASSETS RETROFITTABLE
• SUPPORTS AGRICULTURAL DEVELOPMENT
Biobutanol: Advanced Biofuel
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Biobutanol Commercial Demonstration
�Biobutanol demonstration plant sited on existing BP site at Kingston upon Hull in UK
�Pilot plant completion in 2009
�Commercial plant [site TBD] completion in 2012
100MM GPY
EtOH Plant
(proposed)
Biobutanol
Demo Plant
(proposed)
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
Biofuel Industry – What’s Needed?
• More participation… there’s room for everyone to create and capture value
• Strategic partnerships as needed across the value chain to enable speed of innovation, demonstration and validation of new technologies and solutions
• More help - $ and legislation
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July 29, 2008
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© 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.
Summary
Refinery & Pipeline Retail & Consumer
DownstreamUpstream
Biobutanol
Feedstock
DuPont Delivers Innovations that Transform the Market
Cellulosic Ethanol
Thank you!