Managing GHG Emissions

1. 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

2. GHG MANAGMENT GOALS Reduce GHG emissions 65% (CO2 equivalents basis) by 2010 vs. base year of 1990 Already achieved >70% reduction by 2003. 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

3. 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”.

4. GHG EMISSIONS REDUCTIONS • 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

5. GHG MANAGMENT GOALS 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

6. Energy Efficiency (The reward for holding energy consumption flat) Cumulative Savings @ $20/bbl of oil = $1.5 Billion 150 15 MM bbls of oil Index production $300 MM or 30 cents per share Baseline = 1/4 Quad 100 energy 1990 2000 Year J.B.Carberry

7. ENERGY EFFICIENCY By 2002 the annual savings had risen to over $360KK/yr. @ $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

8. 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

9. 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.

10. GHG MANAGMENT GOALS 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.

11. 10% RENEWABLE ENERGY • Implementation Plan • 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

12. 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)

13. 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

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