Combined Heat & Power Workshop

2. Combined Heat & Power Workshop Columbus, OH -- June 20, 2012

3. Who we are…… • Largest independent producer of metallurgical coke in the Americas. • Five facilities in United States • Vansant, VA (Jewell) • Indiana Harbor, IN • Haverhill, OH • Granite City, IL • Middletown, OH • One Facility in Brazil • Vitoria, Santos Espirito • Over 5 million tons/year of coke capacity • We also mine coal via multiple mines in VA.

4. Our Facilities Domestic Operations International Operations SunCoke Energy Headquarters Lisle, IL Indiana Harbor268 Ovens Capacity: 1,220kt Steam: 1,000klbs/hr Middletown (2011)100 Ovens Capacity: 550kt Power: net 48 MW Haverhill (2005, 2008) 200 OvensCapacity: 1,100kt Steam: 450klb/hr Power: net 46 MW Brazil Granite City (2009)120 Ovens Capacity: 650kt Steam: 450klbs/hr Jewell Coke142 Ovens Capacity: 720kt Vitória(1) (2007) 320 Ovens Capacity: 1,700kt Power: 150 MW (1) SunCoke holds a preferred interest in Vitória and is the operator.

5. SunCoke Energy Process

6. What is Coke? • Metallurgical coke is an integral part in the manufacture of steel. • Coke has four important jobs within a blast furnace: • Provide support (Layers of iron ore, limestone, coke, etc.) • Provide heat (Coke combusts within the furnace) • Provide carbon (reactions for making of the steel) • Provide Permeability (to allow air flow and liquid flow) • Manufacture of steel has always looked for these properties. • Back in the early 1800’s, charcoal provided these needs • As furnaces grew in capacity (and size) charcoal was not adequate so the industry turned to coke.

7. What is Coke? (cont.) • Metallurgical-grade coal is mined, washed and sent to coke facilities. • Coal is further crushed to very small particle sizes (1/8” or less) in preparation for charging into a hot coke oven. • Coal is charged into a hot oven to be converted to coke. Sometimes termed as carbonization. • Coal over a period of time within the hot confines of a coke oven goes through several transformations as the thermal temperature wave moves through the bed: • Forms a plastic layer that serves to agglomerate the small particles. • Evolves tars and hydrocarbons (Volatile Matter) • The plastic agglomerated mass solidifies into large pieces • Stabilization of the coke into the solid product

8. Coke Making • Has been made for centuries • Originally just mounds of coal, sometimes with dirt over the mounds to hold in heat (much like some manufacture of charcoal) • Utilized beehive ovens (so named due to internal shape) which were crude heat recovery. • Were the predominate type for decades in Pennsylvania, West Virginia, Alabama, Tennessee. Several thousands of these ovens were built and operated. • Recovered heat for the coking process, but the waste heat, along with pollutants was sent directly to atmosphere. • Slot ovens for byproduct recovery. Still the way the majority of coke is made worldwide. • Heat Recovery with waste heat utilization (SunCoke).

9. Beehive Coke Oven

10. Early Heat Recovery Ovens Vinton Furnace Jackson, OH 1875 J. King McClanahan’s Improved Coke Ovens No waste heat use

11. Early Heat Recovery Ovens Vinton Furnace Jackson, OH 1875 J. King McClanahan’s Improved Coke Ovens No waste heat use

12. SunCoke Energy – Horizontal Heat Recovery Oven

13. A View Inside…..

14. Middletown Operations – First Coke Oven Walls Oven Door Coke Loaf

15. Finished Coke Product

16. Finished Coke Product

17. SunCoke Process FGD STG Coke Ovens Economizer HRSG Unit

18. Steam Generation and Flue Gas Cleaning FGD Crossover Duct HRSG Unit Economizer

19. Steam Turbine & Generator Surface Cond Brush Generator Shin-Nippon 67 MW Turbine

20. Haverhill Operations HH1 (2005) HH2 (2008) HRSG Units (5) STG Building FGD System

21. Haverhill 2 Interconnection - PJM • Studies – Total 3 • Feasibility Study • System Impact Study (SIS) • Facility Study • Process Length before construction • Approximately 30 months • Cost for project studied at 67 MW • Total Interconnection Study Cost: $213K (plus Letter Of Credit of $12M) • Revenue Potential • Energy and Capacity Resource

22. Middletown Operations STG Building FGD System HRSG Units (5)

23. Middletown Interconnection - MISO Studies – total 3 Feasibility Study System Impact Study (SIS) Definitive Planning Phase (DPP) Process Length before construction Approximately 24 months Cost for project studied at 67 MW Total Interconnection Study Cost: $280K (plus Letter Of Credit of $500K) Revenue Potential Energy Resource only

24. Haverhill/Middletown Comparisions • Both utilize the same STG system. • Middletown’s economizer units are more advanced resulting in ability to capture more power. • Middletown is capped at 50MW maximum. • Haverhill transmits all of its generated power to AEP. Internal power is brought in on a separate feeder line. • Middletown consumes generated power for internal use and send the rest to Duke Energy.

25. SunCoke Energy & PJM • All control room operators are educated and certified with PJM. • Initial Briefing Seminar • Generation 101 (& Test) • Generation 201 (& Test) • Generation 301 (& Test) • Operations 101 (& Test) • Closed book final exam • Middletown with the migration from MISO to PJM is deep into the certification process. • December 2012 completion • Each site has a lead for PJM. Normally the STG Area Manager. • Corporate contacts for PJM.

26. Relationship Comparisons • PJM • Excellent relationship • Helpful during all phases • Follow up after project completion • Provide very detailed studies • MISO • Somewhat less involved with customer • Studies not as in depth • No longer involved since Duke has migrated to PJM

27. Regulatory Filing and Reporting • Certification with Power Siting Commission of applicable state considers issues such as noise, visual impact, traffic, economic impacts and effects of the proposed facility on electric grid. • FERC (Federal Energy Regulatory Commission) • Certification as a “Qualifying Facility” provides the right to sell energy or capacity to a utility, the right to purchase certain services from utilities, and relief from certain regulatory burdens. • Market-Based Rate Authority gives permission to sale energy, capacity, and ancillary services in the market. • Electric Quarterly Reports summarize the sales contracts executed using your market-based rate authority and the transactions under those contracts. • Department of Energy (with The Energy Information Administration) • EIA-860 survey represents the status of plants and associated equipment at year end. • EIA-923 survey reports generation, fuel receipts, consumption, quality and cost.

28. Questions?.........Thanks…. • Questions? • Thanks to: • Andrew Conway of PUCO • Dr. John Quanci, VP of Technology, SunCoke • LawanderBradley-Bey, Business Development, SunCoke • For more information on SunCoke Energy, please go to www.SunCoke.com