Managing GHG Emissions Technologies and Policies Sustainable Energy Institute “Next Steps Post-Kyoto” Series Russell Senate Office Building, Room 385 Washington, DC John Carberry DuPont CR&D Wilmington, DE February 24, 2005

J.B.Carberry Reduce GHG emissions 65% (CO2 equivalents basis) by 2010 vs. base year of 1990 Already achieved >70% reduction by We are recasting a new goal following a major restructuring. Hold energy use flat, 1990 through 2010 Supply 10% total DuPont energy needs from renewable resources at a cost competitive with best available fossil derived alternatives GHG MANAGMENT GOALS

J.B.Carberry GHG EMISSIONS REDUCTIONS Research and Development Needs Continuing improvement in the inventory of all GHG sources with an emphasis on the “basket of six gasses” and in the understanding of the GHG potential of all gasses. Continuing improvement in our understanding of the sources and sinks for gasses with GHG potential Continuing improvement in our understanding of the near term impacts of global warming (regional storms, disease vectors, etc.) Continuing improvement in the capture and use of “stranded methane”.

J.B.Carberry Policy Needs – First, US policy should include constructive contributions from developing economies and be part of an integrated global response that includes: Market driven solutions through broad trading mechanisms Mechanisms that insure all sectors of national economies participate equitably. Credit for early action and baseline protection Recognition of the full “basket of gasses” with GHG potential GHG EMISSIONS REDUCTIONS

J.B.Carberry Reduce GHG emissions 65% (CO2 equivalents basis) by 2010 vs. base year of 1990 Hold energy use flat, 1990 through 2010 Presently down 5-10% below 1990 Supply 10% total DuPont energy needs from renewable resources at a cost competitive with best available fossil derived alternatives GHG MANAGMENT GOALS

Energy Efficiency (The reward for holding energy consumption flat) production Cumulative $20/bbl of oil = $1.5 Billion Baseline = 1/4 Quad 15 MM bbls of oil $300 MM or 30 cents per share energy Year Index J.B.Carberry

ENERGY EFFICIENCY By 2002 the annual savings had risen to over $23/Bbl (or $4/KKBtu for natural gas) and the total savings had risen to about $2B. Imagine what that is now with oil in the range of $48/Bbl and natural gas well above $8/KKBtu

J.B.Carberry ENERGY EFFICIENCY Research and Development Needs Continuing advances in low cost, distributed process energy instrumentation that can be installed without a shut-down. Concurrent advances in control room energy monitoring supervised by expert systems. Continuing development to improve the reliability and efficiency and decrease the capital cost of; Insulation and steam traps, Topping cycles, Recovery of waste heat, Back pressure generators, Modern motors Long term development of separations that are an alternative to distillation

J.B.Carberry ENERGY EFFICIENCY Policy Needs Government led consumer purchasing programs that drive market mechanisms and promote technology advances Rational energy efficiency standards in all sectors of the economy Natural gas strategies that promote price stability through reduced demand and enhanced supply Careful consideration of the conditions under which an energy project (particularly CHP) can trigger a New Source Review.

J.B.Carberry Reduce GHG emissions 65% (CO2 equivalents basis) by 2010 vs. base year of 1990 Hold energy use flat, 1990 through 2010 Supply 10% total DuPont energy needs from renewable resources at a cost competitive with best available fossil derived alternatives About half way there. Thus far, it appears that the rest will be very expensive. GHG MANAGMENT GOALS

J.B.Carberry SHORT TERM Pipeline “crude” LFG & MDG for near-by sites Opportunistic wind or solar Co-feed unused, underused, or waste biomass materials INTERMEDIATE TERM Farm chaff & forest slash (co-feed < gasified < CHP) Civic driven animal waste & trash fired (RDF) projects Opportunistic LFG & MDG to electricity LONG TERM Farms (products, liquid & NG fuels, chaff to CHP) delivering maximum carbon with minimum inputs Environmentally sound, pipeline grade LFG & MDG Co-gen fuel cells using bio-fuels Break-through solar based concepts 10% RENEWABLE ENERGY Implementation Plan

J.B.Carberry RENEWABLE ENERGY Research and Development Needs Decrease the capital cost for renewable energy equipment with particular attention to solar and large stationary CHP fuel cells Significantly reduce the purity required for any fuel used in a fuel cell. Solve the electrical energy storage problems (enviro-footprint, durability and cost) Improve the efficiency and reliability and reduce the cost for the transmission of electricity Decrease the environmental impact of storage and production of all forms of biomass Improve the collection efficiency of sunlight (useable Btu/acre)

J.B.Carberry RENEWABLE ENERGY Policy Needs Facilitate and incentivize use of renewable energy, broadly, without selecting a technology, or a source, in advance Enable the energy markets to select the lowest cost options, facilitated by broad trading of credits Concentrate on simple, predictable and evolutionary programs consistent with a clear strategic plan

Thank you for your time !!! J.B.Carberry