Dow and OPXBIO are partnering to develop an industrial-scale process for producing acrylic acid from sugar as a renewable alternative to petroleum-based production. They have made progress optimizing microbes to produce 3-hydroxypropionic acid from sugar and converting it to acrylic acid. Key challenges include sugar and natural gas price volatility impacting economics and properly sizing the first commercial plant. The goal is to commercialize the bio-acrylic acid process between 2014-2016.

1. Renewable Route to Acrylic Acid
BioAcrylic Acid Commercialization Progress and
Challenges
1

2. Renewable BioAcrylic Acid Joint Development
Objective – Develop an Industrial-Scale Process to Cost-
Effectively Produce Acrylic Acid from Sugar
3-Hydroxypropionic Acrylic
Sugar
(3-HP) Acid
Slide 2
2

3. Dow Chemical-OPXBIO Strategic Partnership
Faster, Lower-Risk, Shared-Cost Development and Commercialization
 Dow
– Largest US producer of petro-acrylic and derivatives
– Demonstrated capability to develop recovery technology and applications
– Committed bio-based strategy and investments
 OPXBIO
– Unique biocatalyst development capability
– Multiple products in development
 BioAcrylic joint development agreement
– Joint funding and work to demonstrate BioAcrylic process
– Intent to jointly commercialize
Microbe & BioAA Commercial
Sugar Channel to
3-HP Conversion Plant
Feedstock Market
Bioprocess Process
Dow OPXBIO Dow Joint Dow
3

4. The Dow Chemical Company
Corporate Overview
 Dow provides a diversified, industry-leading portfolio of
technology-based products and solutions to customers in
approximately 160 countries worldwide
 More than 5,000 products manufactured at 188 sites in 35
countries with 2011 sales of $60B
 50,000 employees worldwide
4

5. Dow Performance Monomers
Portfolio
 Acrylic Acid & Acrylates
– GAA, BA, EA, 2 EHA, MA
– Acrylic coatings, water treatment, detergent
additives, adhesives, super absorbent
polymers
 Methacrylates
– MMA, GMAA
– Acrylic sheet and resins, petroleum
additives, plastic additives, electronic
displays
 Specialty Monomers
– Hydroxies, GMA, BMA
– Automotive and industrial coatings, printing
inks, and powder coatings
 Vinyl Acetate Monomers
– VAM
– Acrylic coatings, fibers, adhesives
5

6. Why Is This Project Important to Dow?
 Acrylic monomers are key strategic building blocks for several of
Dow’s market-facing businesses
- coatings, personal care, packaging, building and construction
 Creating differentiated, sustainable product offerings for our
customers is a top Dow priority
 Dow is interested in cost-effective, renewable alternatives to
conventional petroleum-based feedstocks
 This project is an opportunity to commercialize a differentiated,
bio-based acrylic acid product based on a fermentable sugar
feedstock
6

7. Acrylates/Acrylic Acid Market
Existing $8+ Billion Growing Global Market
Customers interested in renewable alternative
7

8. Acrylates/Acrylic Acid Market
Global Acrylic Acid Consumption
U.S. End Uses for Global Glacial Acrylic
Acrylate Esters Glacial Acid End Use
Acrylic Acid
Paper Products Acrylic 40%
Other
5% Esters
9%
60%
Polyacrylic
Plastics Acid
Additives
Surface Coatings Polymers
9%
44% 30%
Super
Textiles Absorbent
15% Polymers
70%
Adhesives and
Sealants
18%
 Customers are asking for renewable options
• Improved sustainability / carbon footprint
• Increased consumer interest in “green” products
• Feedstock flexibility
Source: SRI Feb 2011
8

9. BioAcrylic Acid Process Technology
• Dextrose (corn) or sucrose (cane)
• Genetically engineered E-Coli
1/2 Fermentation organism optimized via OPXBIO
EDGE™ Technology Platform
HO O
3-HP • Biomass Kill & Removal
OH Recovery • Water Removal and Recycle
- H2O
H2C
O
Conversion to • 3-HP Dehydration to Acrylic Acid
HO Acrylic Acid • Acrylic Acid Purification
J. Repman 11/2/11
9

10. OPXBIO Strategy
Grow a Large, Global, Profitable & Highly Valued
Renewable Chemicals Company
10

11. OPXBIO EDGE™ Technology Platform
Efficiency Directed Genome Engineering
Massively
Parallel Quantitative
Genetic Experimental
Manipulations Design
Comprehensive &
High Resolution
Parallel
Processing
11

12. OPXBIO EDGE Technology Platform
Conventional Microbial Pathway Engineering
Create random Test population Repeat to
and unknown and select better directionally
genetic variants in performing evolve optimized
microbe microbes microbe
population
EDGE Microbe Engineering
Create specific Design
Test each
and known comprehensive,
genetic variant
genetic variants rational strategy
and analyze
across entire and construct
performance
microbial optimized
genome microbe
12

13. OPXBIO EDGE™ Technology for BioAcrylic
13

14. Fermentation Development
Comml Plant
Current TBD
at Lbs/Yr
MBI
Demo Plant-2
30k L
600K Lbs/Yr
Demo Plant-1
3000L
60K Lbs/Yr
Pilot
250L
5K Lbs/Yr
Lg Bench
10L
250 Lbs/Yr
Sm Bench
1L
25 Lbs/Yr
Shake Flask
100 ml
2008 2009 2009-10 2010 2011-12 2012-13 2014-16
14

15. BioAcrylic Acid Downstream Process
Fermentation
Development Highlights
• Screening tests completed on >10 different
3-HP processing schemes
• Scale-up validation in progress (batch and
Recovery continuous lab-scale units)
• Developmental samples available 4Q 2012
Conversion to
Acrylic Acid
15

16. Key Challenges - Sugar Price Volatility
Sugar prices will strongly influence bio
acrylic acid market penetration
Historical Commodity Sugar Prices
35
Challenges
30
Sugar Price ¢/lb
25
• Potential linkage to fuel
20
prices
15
• Weather/seasonal
10 impacts
5 • Feasibility of cellulosic
0 sugar alternatives
Dec-08
Aug-06
Oct-07
Apr-04
Apr-11
Nov-04
Nov-11
Jan-06
Feb-03
Sep-03
Feb-10
Sep-10
May-08
Jun-05
Jun-12
Jul-02
Jul-09
Mar-07
16

17. Key Challenges - Impact of Shale Gas
Shale gas availability in U.S. will strongly
influence long term conventional feedstock prices
Historical U.S. Natural Gas Prices
16.0
Natural Gas Price ($/MMBtu)
14.0
Challenges 12.0
10.0
• Impact on conventional 8.0
6.0
acrylic acid economics
4.0
• Regional differences
2.0
0.0
Dec-08
Aug-06
Oct-07
Apr-11
Apr-04
Nov-04
Nov-11
Jan-06
Sep-03
Feb-10
Sep-10
Feb-03
May-08
Jun-05
Jun-12
Jul-02
Jul-09
Mar-07
17

18. Key Challenges – Right Sizing of Plant Investments
Challenges
• Capacity planning to meet
customer demands
• Achieving economy of scale vs.
overbuilding
• Feedstock selection
• Location / Integration options
18

19. Summary
– Dow and OPX are jointly developing a new industrial-
scale process for production of acrylic acid from sugar
– Excellent progress made on organism development,
fermentation and downstream process scale-up
– Anticipate commercialization in 2014-2016 timeframe
Sugar Microbe & BioAA Commercial Channel to
Feedstock 3-HP Conversion Plant Market
Bioprocess Process
Dow OPXBIO Dow Joint Dow
19