1. HOW BRAZIL CAN
CAPITALIZE ON
CELLULOSIC
ETHANOL
Cynthia Bryant
Director, Global Biomass Business Development, Novozymes
Sugar and Ethanol Conference, Monday March 28, 2011

2. NOVOZYMES IN BRIEF
2010 Novozymes sales by industry
4% 2%
GLOBAL PRESENCE 8%
32%
• World leader in industrial enzymes 22%
and microorganisms
• Products for > 30 different
industries 32%
• >700 products sold in 130
countries
Detergents Technical Food
• > 5,400 employees worldwide Feed Microorganisms Biopharmaceuticals
2010 market share of enzymes (industrial use)
R&D
• Market leader in all main industries
• 47% global market share within 26%
47%
industrial enzymes 6%
• ~ 14% of sales invested in R&D
• > 6,500 patents granted or 21%
pending
Novozymes Danisco DSM Other
2

3. OUR DEVELOPING WORLD
FACES CHALLENGES
Novozymes uses science to
reduce carbon emissions for
many of our everyday needs;
helping to create a cleaner and
safer world today and in the
future.

4. BIOFUEL IS ONE STEP TO A FUTURE
OF CLEANER AND RENEWABLE ENERGY
• World leader in biofuel enzymes
• Global R&D focus on cellulosic ethanol
• Broad partnership strategy – we are working on many
feedstocks and technologies
• More than 150 people dedicated to cellulosic ethanol
Inbicon
Lignol GreenField
POET M&G
ICM
Ceres
Fiberight
COFCO-Sinopec
Praj
Petrobras
CTC
4 Some of Novozymes cellulosic ethanol partners across the globe

5. WORLD DEMAND FOR
TRANSPORT FUEL IS GROWING
Global transport energy consumption by fuel
3,000 (450 ppm stabilization scenario)
2,000
1,000
0
2007 2020 2030
Oil Gas Electricity Biofuels Other
Source: OECD/IEA World Energy Outlook 2009, USDA, EU Commission/Refuel, McKinsey

6. GLOBAL DEMAND FOR FUELS WITH
LOWER GHG EMISSIONS IS GROWING
100% WEIGHTED AVERAGE OF %GHG SAVINGS BY YEAR FOR US RFS2 VOLUMES
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2008
2009
2011
2012
2013
2015
2016
2017
2019
2020
2010
2014
2018
2021
2022
The EU is also placing a
higher value on cellulosic
ethanol by double counting
its use to reach RED goals.

7. BRAZILIAN CELLULOSIC ETHANOL IS
AN IMPORTANT GLOBAL FUEL SOURCE
POTENTIAL PRODUCTION OF ETHANOL FROM AGRICULTURAL RESIDUES AND FOREST PRODUCTS
China
India
Brazil
Argentina
Mexico
USA
Canada
European Union
Europe Million Liters
0 20 40 60 80 100
EtOH based on current wood fuel production EtOH based on estimated residue potential
The world has the ability to
produce close to half a
trillion liters of cellulosic
Source:
ethanol using agricultural
Niclas Scott Bentsen and Claus Felby,
Technical potentials of biomass for energy services from current agriculture and forestry in selected
residues and forest products.
countries in Europe, The Americas and Asia , 2010

8. BRAZIL HAS MANY
CELLULOSIC ETHANOL ADVANTAGES
Challenge Valued Solutions
Feedstock • Bagasse is collected and at the plants
today
• ~10-17B Ltr/yr availability after
adjusting for bioelectricity use
Capital • Co-location offers shared equipment
Costs and facility use
Operating • Co-location offers shared resource
Costs advantages
• Low cost feedstock significantly
improves economics
Business • Additional revenue stream for mills
Model • Opportunity to maximize value of the
bagasse
Industry • Approximately 2-3 years behind the
Focus US and Europe in up-scaling
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9. CO-LOCATING CELLULOSIC ETHANOL
PROVIDES A PROJECT NPV BENEFIT
R$ 160,00
At an annual crush greater
NPV (Million BRL)
than 2.5 MMTY, co-locating a
R$ 140,00
cellulosic ethanol facility has
a greater payout than
R$ 120,00
building a standard sugar
based ethanol plant.
R$ 100,00
R$ 80,00 NPV 1G
NPV 1G+2G (no C5)
R$ 60,00 NPV 1G+2G (with C5)
NPV 1G+2G (Co-fermentation)
R$ 40,00
R$ 20,00
R$ -
1,00 2,00 3,00 4,00
MMTCY (Million Metric Tons Crush per Year)

10. CO-LOCATING CELLULOSIC ETHANOL
REDUCES LAND USE NEEDS FOR
ETHANOL PRODUCTION
Co-locating cellulosic
Brazilian ethanol Approximately 103
ethanol reduces land
demand is expected additional plants will
use by up to 20%
to reach 60 BLY by need to go online to
The equivalent of 20
2015 meet this demand
plants

11. CELLULOSIC ETHANOL IS
READY FOR COMMERCIALIZATION
• The uncertainty of petroleum supply is renewing energy
security concerns
• Ground breaking this year on 3 plants around the world
Novozymes' area of focus
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12. NOVOZYMES CELLIC® CTEC2
THE FIRST COMMERCIALLY VIABLE ENZYME
Average 1.8X performance improvement
Cellic CTec2 provides many
benefits that are helping to
enable our partners’ processes to
become commercially viable
Performance improvement at higher TS Commercially relevant dosage
100
Cellic CTec Cellic CTec2 Hydrolysis of unwashed NREL PCS, 20% TS, 8-days
90
100,0%
80 Cellulose conversion
80,0%
70 60,0%
60 40,0%
CTec2 CTec
(%)
50 20,0%
Enzyme Dose 1 Enzyme Dose 1 Enzyme Dose 2 0,0%
0,01 0,02 0,03 0,04 0,05
12% Total Solids 16% Total Solids
Enzyme dosage (ml/g cellulose)

13. THE NOVOZYMES CELLIC®
PRODUCT FAMILY IS ENABLING
COMMERCIAL VIABILITY
Enzyme costs are becoming a smaller Production costs are coming in line
and smaller percentage of the total with corn-based ethanol costs
process costs

14. NOVOZYMES AND OUR PARTNERS
ARE PROGRESSING IN BRAZIL
• Implementation • Leading energy
of technology company
• Leading sugar • Full value chain
cane and • Ethanol distribution
bagasse and logistics
• Technical and (domestic and export)
agronomical
expertise
• Best performing enzymes in the
industry
• Process technology expertise in
pretreatment, hydrolysis and
fermentation
• In depth modeling capabilities

15. NOVOZYMES PARTNERS IN BRAZIL ARE ON
A PATH TO COMMERCIAL VIABILITY
Cellulosic ethanol costs are also coming into alignment with sugar
based ethanol.

16. NOVOZYMES ENZYMES
POTENTIAL TO REDUCE THE DOSE REQUIRED
About CTC:
• The largest technology center
for sugarcane in Brazil
• Process development pilot
plant running for more than 1
year
• Focus on sugarcane bagasse
4X reduction in the
enzyme usage in
two years
Initial Process
enzyme CTEC 2 Improvement
(CTEC 1) with CTEC 2
16

17. WE WILL DELIVER THE PROMISE
OF CELLULOISC ETHANOL TO BRAZIL
Cellulosic ethanol provides
many advantages for Brazil Novozymes Partnership
Advantages
• Improved plant economics
• Increased ethanol production • Insight into the latest enzyme
capacity developments
• More efficient land and crop • Process optimization for
use pretreatment, hydrolysis and
• Ability to compete at higher fermentation
GHG savings standards • Sophisticated modeling
capabilities to enable the right
process decisions
• World class R&D resources
throughout the globe

18. Learn more
www.Bioenergy.Novozymes.com

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