1. F. Sijbesma, Chairman EuropaBio, MB DSM Lyon, April 10, 2003 White Biotechnology: Gateway to a More Sustainable Future

2. 1 WHITE BIOTECHNOLOGY NOW READY FOR TAKE-OFF Examples of white biotechnology Biological processes for vitamin production Bio-based polymers Enzymes for the textile industry Market penetration White biotechnology is the application of nature's toolset to industrial production Time Today

3. 2 PROJECT SET-UP Proposed policy measures Individual case studies McKinsey market perspective Overall impact of white biotechnology People PlanetProfit *Not involved in policy recommendations Scientific advisory board* Dr. M. Patel (University of Utrecht, NL) Dr. I. Gillespie (OECD) Dr. O. Wolf (EC)

4. 3 Biotechnological process 1-step fermentation process ENVIRONMENTAL AND ECONOMIC BENEFITS – VITAMIN B2 Source:BASF, Oeko Institute Life cycle assessment of Vitamin B2 Traditional process 8-step chemical synthesis Impact Environmental and economic Environ- mental impact Lower Higher LowerHigher Costs Traditional Biotech - 40%

5. 4 LESS ENERGY, MATERIALS AND COSTS – CEPHALEXIN (ANTIBIOTIC) Traditional process Source:DSM, Oeko Institute Biotechnological process Impact Economic Environmental Variable cost reduction - 50% Materials used Energy consumption Savings - 65% 10-step (bio)chemical synthesis Combination of a fermentation and an enzymatic reaction

6. 5 IMPROVED SUSTAINABILITY – COTTON SCOURING ENZYME Raw fabric Biotechnological process Use of scouring enzyme in water Traditional process Treatment with hot alkaline solution Source:Novozymes, Oeko Institute Scouring Finished fabric Primary energy demand Emissions to water Environmental Impact Economic Cost reduction Savings - 25% - 60% - 20%

7. 6 LESS FOSSIL RESOURCES – BIO-BASED POLYMERS Source:Cargill Dow, DuPont NatureWorks ™ Bio-degradable polymer made from corn Biotechnological process Traditional process Polymers from oil Sorona ® Polymer based on dextrose from corn Impact Environmental Economic Currently competitive in niche applications Future competitiveness highly dependent on feedstock costs Average reduction of fossil inputs - 17% to - 55%

8. 7 FUTURE: LARGE-SCALE REDUCTION OF CO 2 EMISSIONS – LARGE-SCALE APPLICATION OF BIOMASS Source:Oeko Institute, McKinsey Environmental Impact Economic Ethylene not viable today Breakthroughs in biomass conversion required Global waste biomass sufficient for up to 40% of all bulk chemicals Reduction of CO 2 emissions relative to traditional counterparts Ethanol Ethylene - 108% - 106% Biotechnological process Traditional process Fossil resources Renewable biomass Binding of CO 2 Production of Fuel Chemicals

9. 8 10 - 20% IMPACT ON CHEMICAL INDUSTRY IN 2010 Source:McKinsey McKinsey analysis: Chemical industry impacted by biotechnology Impact* ) dependent on: Technology development Overall demand Feedstock prices Policy framework 10% 20% 2010 Time Slow uptake Fast uptake 2000Today * ) Impact means the use of biotechnological process steps such as fermentation, biocatalysis, etc.

10. 9 ENVIRONMENT: DECREASING THE FOOTPRINT Environmental impactCase studies NatureWorks™ (Cargill Dow) Sorona ® (DuPont) Vitamin B2 (BASF) Antibiotic Cephalexin (DSM) Energy efficiency + + + Raw materials consumption ++ + CO 2 emissions ++ + Economic impact Production costs 0 + + ++ ++ Ethylene from bio-mass (future scenario) 0++ -- Scouring enzyme (Novozymes) ++0+

11. 10 ENVIRONMENT: DECREASING THE FOOTPRINT Impact of white biotechnology Renewable feed- stock Increased energy and process efficiency Source: UNFCCC, McKinsey analysis Reduction of: Greenhouse gas emissions Emissions to water Emissions to air Resource usage

12. 11 ECONOMY: EUR 11 - 22 BILLION ANNUAL ADDED VALUE BY 2010 Source: McKinsey McKinsey estimate of annual added value by the global chemical industry EUR billions 11 - 22 5 - 10 6 - 12 Impact of white biotechnology Cost reduction Raw materials Process costs Investments Additional revenues New products Value-added processes

13. 12 SOCIETY: EMPLOYMENT, INNOVATION AND RESPONSIBILITY New technologies to meet future challenges Create new jobs Save valuable resources for future generations Impact of white biotechnology Employment Innovation Responsibility

14. 13 POTENTIAL TO BE CAPTURED Academia NGOs Politicians Farmers Consumers Industry Retailers People PlanetProfit

15. 14 HOW TO CAPTURE THE POTENTIAL Current issues Examples for measures in the US Long-term strategy Technological capabilities Framework conditions Long-term white biotech vision and strategy (2020) Integrated technology roadmap and focused funding Low feedstock prices Europe has to define its approach

16. 15 PROPOSED POLICY MEASURES Benchmark Europe with other OECD countries on development of bio-based economy Create European white biotechnology vision and roadmap Create financial incentives and supportive regulatory framework Encourage competitive biological feed- stock prices Build public awareness and support Create a stakeholders' Technology Platform to build a strategic alliance for white biotechnology