DuPont Applied Biosciences: Initiatives on next generation biofuels Dr. Wilson Andalécio Araujo Biofuels Technology Manager LA DuPont Applied BioSciences Biofuels State of São Paulo Research Foundation - FAPESP Sugar Cane Processing and Engineering - Workshop São Paulo Brazil - September 10, 2009 Vision 2 To be the world s most dynamic science company, creating sustainable solutions essential to a better, safer, healthier life for people everywhere. 1
Mission 3 Sustainable Growth: Increasing shareholder and societal value decreasing our environmental footprint. DuPont Worldwide 4 Founded in 1802 Presence in more than 75 countries 60,000 employees Focus on Science More than 4,400 Scientists and Engineers Over US$1.3 billion invested in Research & Development 34.000 patents since 1804 95 research and development laboratories around the world 2
5 DuPont in Latin America Present in the region since 1925 5.400 employees Over 30 industrial plants 8 administrative offices Core Values 6 Safety and Health Respect for people High Ethical Standards Environmental Stewardship 3
Sales by Market 2008- $30.5B PLASTICS & CHEMICALS 9% AIRCRAFT & AEROSPACE 4% AGRICULTURE/ FOOD 29% 7 MOTOR VEHICLES 20% TEXTILES / HOME FURNISHINGS 5% OTHER 13% ELECTRONICS 9% CONSTRUCTION MATERIALS 11% DuPont Applied BioSciences 8 BioFuels Cellulosic ethanol Biobutanol Biotechnology Business Market Size BioMaterials BioSpecialties Bio-PDO TM Loudon plant start-up Susterra TM, Zemea TM Cerenol TM Sorona Hytrel RS BioSurfaces Omega 3 BioMedical ActaMax TM sealants Anti-adhesives Embolics Value in Use / Unit Unique, disruptive science with significant opportunity to capture above average return on investment Zemea TM and Susterra TM are trademarks of DuPont Tate & Lyle Bio Products Company LLC, a joint venture company of DuPont and Tate & Lyle 4
Biotechnology Industry - Patents 9 2007 2006 Institution Genentech Number of new patents 264 Institution DuPont Number of new patents 161 DuPont Univ. of California US Government Applera Monsanto Agilent Technologies Merck Bayer 195 129 113 53 50 46 39 38 Univ. of California Genentech Applera Human Genome Services Agilent Technologies Millennium Univ. of Texas Amgen 134 124 62 59 55 54 49 41 Consistent lead over competition as determined by Nature Biotechnology 2003: #3; 2004: #2; 2005: #3 Nature Biotechnology magazine (May 2009). 10 Technology Innovation Center Paulínia - Brazil Not only biofuel research 722 m² construction area Strategically increasing R&D efforts in Latin America 5
11 One DuPont Approach Sugar Cane Industry DuPont Chemical solutions Carbonation Microgel - Sugar clarification Glyclean - Equipment Cleaning Fermasure - microbial contamination control in ethanol fermentation Crop Protection Herbicides, insecticide, ripener Services A historical and strong relationship with sugar cane sector: innovative solutions. Performance Coatings MPS - Management system Industrial coating DuPont Safety Resources Safety Programs Consulting solutions DuPont Engineering University Project Management Technical trainings on engineering VIP Value Improvement Practices Biofuels Global Market Perspective Drivers 12 Increasing demand for transport fuel Increasing concern over environment Biofuels Increasing concern over security of supply A growing market for the agriculture sector 6
Cellulosic Ethanol (DuPont/Genencor) Demonstration Plant Vonore, Tennessee 13 50/50 joint venture between DuPont and Danisco/Genencor $140 million investment over 3 years Commercialize integrated technology to produce cellulosic ethanol Full license & engineering package including: on site enzyme production future design improvements Feedstock-flexible demonstration plant in 2009 JV website: www.ddce.com Biomass Snapshot: Estimate on Brazilian Opportunity. 12,000 10,000 Bagasse E2G E2G - Brazil potential volumes: cane biomass simulations Straw E2G CANE 14 Gallons (MM) 8,000 6,000 4,000 2,000 0 Optimistic Simulation - overall potential 100% mechanical harvest 70% straw transported to the mill 30% bagasse surplus 1,704 1,356 2,521 1,672 4,636 2,306 7,256 2008/2009 (487MMtc) 2010/2011(601MMtc) 2015/2016(829MMtc) 2020/2021(1038MMtc) Seasons 2,888 For audience thoughts!! No relation with DuPont / Danisco strategy Note: 71 gallons/tone dry biomass or 270 Liters/tone dry basis Dionisi, F.; Araujo, W.A. Sugar Cane Biomass Cellulosic Ethanol (E2G) Potential. DuPont Internal Presentation (Barueri, 2008). 7
15 Gallons (MM) 12,000 10,000 8,000 6,000 4,000 2,000 0 Bagasse E2G Realistic Tentative 50% mechanical harvest 35% bagasse surplus 2% mills taking 50% straw 24 1,582 E2G - Brazil potential volumes: cane biomass simulations Straw E2G 60% mechanical harvest 40% bagasse surplus 5% mills taking 50% straw 90 2,229 80% mechanical harvest 45% bagasse surplus 60% mills taking 60% straw 2,384 3,459 5,079 2008/2009 (487MMtc) 2010/2011(601MMtc) 2015/2016(829MMtc) 2020/2021(1038MMtc) Seasons 100% mechanical harvest 50% bagasse surplus 70% mills taking 70% straw 4,813 CANE For audience thoughts!! No relation with DuPont / Danisco strategy Dionisi, F.; Araujo, W.A. Sugar Cane Biomass Cellulosic Ethanol (E2G) Potential. DuPont Internal Presentation (Barueri, 2008). 16 4,000,000 3,500,000 Season 2008/09 Corn Biomass Cellulosic Ethanol (E2G) Brazil's Potential 645,843 CORN Thousands of Gallons 3,000,000 2,500,000 2,000,000 1,500,000 TOTAL E2G from COB 1,562,892 t. Gallons Cob Biomass - other parts 442,817 319,702 2,975,847 1,000,000 500,000-2,040,366 116,951 1,473,089 37,579 538,876 173,151 North Northeast Center West Southeast South Region Cordon A.; Araujo, W.A. Corn Biomass Outlook: Brazil. DuPont Internal Presentation. (Barueri, 2008) 8
Biobutanol the Advanced Biofuel BP & DuPont announced June 2006 17 RENEWABLE FEEDSTOCKS WORLDWIDE FUEL MARKETS Powerful partnership Shared commitment Global reach Complementary capabilities JV website: www.butamax.com Biobutanol Performance Advantages 18 PIPELINE BIOFUEL PRODUCTION DIVERSE AGRICULTURAL FEEDSTOCKS UTILIZE ETHANOL PRODUCTION ASSETS SUPPORT AGRICULTURAL DEVELOPMENT REFINERY TERMINAL LIMITED WATER ABSORPTION FUNGIBLE BLENDING LOW VAPOR PRESSURE UTILIZE EXISTING INFRASTRUCTURE RETAIL / AUTO INDUSTRY / CONSUMER 26% HIGHER ENERGY DENSITY THAN ETHANOL POTENTIAL FOR HIGHER BLEND LEVELS WITHOUT VEHICLE MODIFICATION (> 10%) NO INCREASE IN CO, HC, NOx EMISSIONS 9
19 The Challenge: Competitive Biobutanol COM The Feedstock Corn, Wheat, Sugarcane, Cellulose Converted to Sugar for Fermentation C 6 H 12 O 6 Sugar The Molecule Butanol C 4 H 10 O Incumbent Bioprocesses ABE Process (Acetone-Butanol-Ethanol) C 6 H 12 O 6 Sugar C 3 H 6 O C 4 H 10 O + Acetone Butanol + The New and Improved Bioprocess Develop a cost effective route to biobutanol C 6 H 12 O 6 Sugar C 4 H 10 O Butanol C 2 H 6 O Ethanol 20 Which butanol are we going to make? OH 1-butanol existing technology (ABE fermentation) with known biological pathway OH isobutanol feasible via combination of known biological pathways OH 2-butanol feasible via combination of known biological pathways OH tertiary butanol not easily made by any known biological route 10
21 Isomers of Biobutanol 1-butanol OH All isomers have High energy density Easy to handle and blend Compatible with existing vehicles 2-butanol OH 2-butanol & Isobutanol have higher octane isobutanol OH Early Biobutanol Production 22 Sugar Juice Sugar Cane Bagasse Grain Dry Grind Sucrose Sugar Wet Mill C6 Fermentation Steam Electricity Glucose Butanol Vinasse C6 Fermentation DDGS Butanol 11
Biobutanol Process Performance 23 Metrics & Goals % of Cost Goal 0 Proof of Concept Foundation IP established Synthetic pathways optimized Host microorganisms selected Demonstration plant designed Demonstration plant operation Production strain optimization Process optimization Commercial Goal 1 2 3 4 5 6 2007 superior to ABE process 2010 economics equivalent to ethanol Patents Over 60 70 patent applications Biology Fermentation process Chemical conversion End use applications Time (yr) Biobutanol Demonstration Plant 24 Biobutanol demonstration plant sited on existing BP site at Kingston upon Hull in UK Completion in 2009 Biobutanol Demo Plant (proposed) 100MM GPY EtOH Plant (proposed) Accelerate availability of commercial technology for scaleup to 50-100MM GPY Same site as 110 MM GPY ethanol plant 12
25 Final Thoughts - Beyond science and technology gates!!! Brazilian regulations on liquid biofuel usage should be discussed in next BIOEN workshops Brazilian institutions and companies will delivery technological breakthroughs beyond ethanol molecule and current biodiesel specification. There will not be a new industrial reality without proper multidisciplinary discussion on regulations; Environmental regulation should also be simultaneously evaluated as part of the discussions related to the introduction of new technologies under development focused on sugar cane sector; Sugar cane sector has been developed sharing technology innovations delivered, for instance, by Copersucar IP topic is another suggestion to be included in Brazilian biofuel network discussions how sugar cane sector professionals realize IP protection? Even existing a national agenda and market claim for new sustainable technologies to produce biofuels, biomaterial, etc, environmental regulations without proper multidisciplinary scientific discussions can drastically impact this new technology package deliveries to sugar cane sector; Hagley Powder Mills Birthplace of DuPont USA DuPont 26 Experimental Station USA DuPont Tate Lyle Bio-PDOTM Plant USA 13
27 THANK YOU!!! 14