Emerging Technologies for Eco-Innovation Opportunities and Risks, Budapest,16th of October 2008 Armand Klein Director DuPont Applied BioSciences EMEA Focus on Lead Markets : Bio-Based Products

2 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved. Henry Ford’s soy bean car

3 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved. Detergents Textiles Fuels Cosmetics Beer and Bread Pulp and Paper Vitamines Plastics Etc. Bio-based products in our daily lives

4 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved. Sales of bio-based chemicals (in billion EUR)

5 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved Textiles Pulp & Paper Detergents Food Fuel Enzymes TOTAL Biotechnological process Labour productivity* Textiles Pulp & Paper Detergents Fuel Reduction of emissions to water and air (CO2) Change of resource use and emission in % Economical and good for the environment Conventional processProcess consumption of chemicals and other Energy use Source : study "Biotech for EU" study, JRC, EC 2007 *GVA share/employment share

6 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved. The Biomass Value Chain Advantages: Sustainable Low temperature / low pressure operations Economical  Lower costs  New revenue opportunities Significant technological headroom Biomass Refining “Chemical” Intermediates Energy (biofuels…) Chemicals (pigments, solvents, lubricants…) Materials(polymers, composites…) Co-Products DDGS CO2 Gluten Others

7 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved. Sustainability… … of biomass Environmental criteria – GHG balance, land use Social criteria Continuity, consistency, reliability and cost-efficiency of supply … of process performance Lower energy consumption Lower GHG emissions … of products performance Less hazardous Lower processing temperatures

8 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved. An industrial scale proof point Bio-PDO™ process Start-up November 2006 Capacity 45’000 Tons consumes 40 % less energy and produces 56% less greenhouse gas emissions than the chemical PDO process it replaces

9 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved. Potentially abundant biomass availabilityPotentially abundant biomass availability Drive improvements along the value chainsDrive improvements along the value chains Strong industrial biotechnology and R&D and technologyStrong industrial biotechnology and R&D and technology Combined economic and environmental benefitsCombined economic and environmental benefits Compliance with environmental legislationCompliance with environmental legislation Social acceptanceSocial acceptance Supportive regulatory frameworkSupportive regulatory framework Strong regional context of investmentsStrong regional context of investments Must deliver “performance+”Must deliver “performance+” Drivers for bio-based products in Europe Source: Author, The introduction of process-integrated biocatalysts in companies, IPTS, Sevilla 2000

10 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved. Oil price dependency Oil price dependency Reduce cost of manufacturing Reduce cost of manufacturing Flexibility in feedstock and product output Flexibility in feedstock and product output R&D intensive R&D intensive Prohibitive investments for SMEs Prohibitive investments for SMEs Lack of awarenessLack of awareness Lack of skilled work force (in particular in user sectors)Lack of skilled work force (in particular in user sectors) Unclear perception of costs/benefitsUnclear perception of costs/benefits Cost and risk of application developmentCost and risk of application development Barriers for bio-based products in Europe Source: Author, The introduction of process-integrated biocatalysts in companies, IPTS, Sevilla 2000

11 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved. Policy measures to stimulate uptake and demand for bio-based products: 1.Legislation: ensure a coherent, comprehensive and coordinated development of policies and regulations that impact the development of bio-based product markets 2.Public procurement: encourage Green Public Procurement for bio-based products 3.Standardisation/Labelling: Establish standards and labels for specific bio-based products 4.Finance: support access to finance for R&D&I; promote the establishment of biorefinery pilot plants and demonstrators involving all actors and investments at EU, national and regional level. 5.Communication: conduct an information campaign, communication of policies regarding bio-based products as well as the benefits of these products EU’s Lead Market Initiative for Bio-based Products

12 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved. EU KBBE A “coherent” European policy agenda DG Agriculture DG Industry DG Research DG Sanco DG Environment DG Energy and Transport DG … SusChem – IB TP ETAP European Strategy for LS and Biotechnology EU strategy for Biofuels Biofuels Directives GM food/feed regulation Food enzyme legislation Financing IB SMEs EU Climate Change Policy Biomass Action Plan Biofuels TP ERA-Net FP7 Reform sugar regime CAP

13 © 2008 E.I. du Pont de Nemours and Company. All Rights Reserved.