Introducing a framework to estimate and classify Renewable Energy Resources Jan Koninckx, PhD Global Business Director - Biorefineries, DuPont Total Energy USA Houston, TXNovember 21, 2013

Presentation objectives Introduce an ongoing initiative to develop a framework for estimating and classifying Renewable Energy resources Explain how the definitions and principles of the United Nations Framework Classification for Fossil Energy and Mineral Reserves and Resources 2009 (UNFC-2009) can also be applied to Renewables Solicit feedback and comments from Renewable Energy stakeholders 1

Background The UN Economic Commission for Europe’s called upon the Expert Group on Resource Classification (EGRC) to “develop ideas on how the UNFC could apply to and integrate renewable energy by December 2013” Separately, an industry-led working group took the initiative to develop a transparent and consistent estimation and classification methodology for renewable energy resources The working group reported their findings at the fourth session of the EGRC held in Geneva, April 2013 The EGRC established a Task Force on the Application of UNFC-2009 to Renewable Energy Resources 2

What is the UNFC? United Nations Framework Classification for Fossil Energy and Mineral Reserves and Resources (UNFC) Global, generic, principles-based “umbrella” system – Solid minerals and fluids – Numerical coding system – Facilitates global communications Compatible, integral, and collaborative (CRIRSCO Template for minerals & PRMS for oil & gas) Other systems and primary fuels could align with UNFC in the future 3

UNFC – How it works E axis categories F axis categories G axis categories 4

UNFC – How it works CategoryDefinition E1Extraction and sale has been confirmed to be economically viable. CategoryDefinition F1Feasibility of extraction by a defined development project or mining operation has been confirmed. CategoryDefinition G1Quantities associated with a known deposit that can be estimated with a high level of confidence. UNFC Class: 111 5

Resources are estimated and classified based on a “project” The project generally represents represent the level at which a decision is made whether or not to proceed (i.e., spend more money) 6

Renewable energy projects are similar to fossil energy or mineral projects Some differences: The energy source does not deplete Geological risks do not apply to most Renewable energy projects, but similar uncertainties exist (e.g. meteorological variations, seasonal variations etc) 7

Oil field vs. wind farm (example) Common project characteristics: A defined level of investment, with an expected production profile Prerequisites such as gaining access to the resource and market, receiving authorisation, and validation of the economic case As the project develops, risk declines and certainty of returns improves 8

Click to edit Master title style A Renewable Fuel Example November 2013 – Total Energy HoustonCopyright © 2013 DuPont. All rights reserved. Liquid Fuel Solid Fuel Storage Considerations Contracts with Farmers Farmer Operations History and Productivity Trends Weather Uncertainty Sustained Carbon Source Processing Losses Marketable Energy Products Common project characteristics: A defined level of investment, with an expected production profile Prerequisites such as gaining access to the resource and market, receiving authorisation, and validation of the economic case As the project develops, risk declines and certainty of returns improves

Task Force The EGRC established a small Task Force in 2013, with representatives from: Public sector (Australia) Private sector (Bioenergy) Private sector (Bioenergy; International Oil & Gas) Academia (Geothermal) Private sector (Bioenergy; Wind; International Oil & Gas) Private sector (Bioenergy; Solar; International Oil & Gas) Private sector (Finance & Reporting) 9

Task Force mandate It is envisaged that this will consist of an overarching Renewable Specification document, together with commodity-specific specifications and a conversion document that will outline the conversion principles across energy metrics to support a consistent comparison and reporting of various energy resources. Near-term deliverables: Draft specifications for the application of the UNFC-2009 to Renewable Energy Workshop in March 2014 to consult with a broad group of global stakeholders Submission of the draft specifications to the EGRC for approval in April 2014 Public consultation, following EGRC approval To develop a set of specifications for the application of the UNFC-2009 to Renewables.

The UNFC as umbrella framework for all Energy & Mineral Resources A consistent methodology across all Energy & Mineral resources creates transparency and comparability The UNFC-2009 is and remains a voluntary system, intended as framework, or a set of common rules, that can be adopted and used by different stakeholders 11 Task Force Scope

Key stakeholder groups 12

Any feedback or questions? 13