Mississippi Power Kemper County IGCC Plant

1. Mississippi PowerKemper County IGCC Plant 2008 Southern Section A&WMA Annual Meeting and Technical Conference Scott McMillan Southern Company Services Keith Benvenutti Mississippi Power Company

2. IGCC • IGCC stands for “Integrated Gasification Combined Cycle” • IGCC is a combined-cycle power plant and a coal-gasification plant designed specifically to work with each other. • There are currently only two coal based IGCC plants in the U.S.

3. IGCC • Gasification • Fuel (i.e. coal, petcoke, biomass, etc.) is introduced into a “Gasifier” • The fuel is subjected to high temperature and pressure with limited air (or oxygen) • Chemical reaction resulting in the formation of a synthesis gas or “syngas” • Gasification is not combustion • Commercially proven technology

4. IGCC • Syngas • Combustible gas typically consisting of mostly CO and H2 • Heating value generally between 125 and 275 BTU/ft3 (Natural Gas = 1,000 BTU/ft3) • Capability to remove particulate, nitrogenous compounds, sulfur, and mercury from syngas prior to its end use

5. IGCC • Combined Cycle Power Generation • Power is generated by combusting fuel (natural gas, fuel oil, syngas, etc.) in a Combustion Turbine • Very hot exhaust gas from the turbine discharges to a Heat Recovery Steam Generator (HRSG) • Steam raised in the HRSG is expanded through a Steam Turbine which generates additional power • Very efficient method of power generation

6. IGCC • Advantages of IGCC • Fuel diversity – Potentially wide range of feed stocks • More efficient than traditional pulverized coal technology • Improved NOX, SO2 and Mercury removal than traditional pulverized coal technology • Lower CO2 than traditional pulverized coal technology, with greater potential for future CO2 capture • Marketable byproducts

7. Power Systems Development Facility (Wilsonville, AL) “America’s Advanced Coal Research Center” http://psdf.southernco.com

8. PSDF • Established in 1996 • Supports DOE’s effort to develop cost-competitive and environmentally acceptable coal-based power generation technologies • Designed at a size that can be reliably scaled up to commercial applications • Development of the Transport Gasifier

9. PSDF Current Cost Share Partners • US DOE- National Energy Technology Laboratory (NETL) • Southern Company • Electric Power Research Institute (EPRI) • KBR • Peabody Energy • Lignite Energy Council

10. Syngas to Cooling and Cleanup Disengager Riser Cyclone Mixing Zone Coal Loopseal Air J-leg Startup Standpipe Burner Air Steam Transport Gasifier Attributes / Features • Performs well on low rank & high ash/high moisture coals • Simple Design: • Operates air-blown for power generation • No burners, Simple and limited internal parts • Low operating temperature • The Transport Gasifier at the PSDF has operated for 16,500 hours with >13,200 hours on-coal and >8,200 hours in gasification mode

11. Liberty Meridian Kemper County IGCC Location • Kemper County, MS • Near Liberty • Approximately 20 miles north of Meridian, MS

12. Kemper County IGCC Project Facts • First-of-a-kind plant based on the transport gasifier developed at the Power Systems Development Facility (PSDF) • Approximately 550 MW integrated gasification combined cycle (IGCC) power plant • Owned and operated by Mississippi Power Company • Startup proposed in 2013

13. Kemper County IGCC Project Facts (Continued) • Fueled by lignite from nearby mine (to be operated by North American Coal) • Also capable of using natural gas • IRS awarded the project $133 million in Investment Tax Credits (ITC) • Other DOE funding is possible

14. Kemper County IGCC Project Facts (Continued) • 2 gasifiers (Transport) • 2 gas cleanup systems (particulate, nitrogenous compounds, sulfur, mercury) • 2 combustion turbines (GE 7F) / heat recovery steam generators • 1 steam turbine

15. Gas Clean Up Gas Clean Up Combustion Turbine Combustion Turbine Lignite / Air Lignite / Air Gasifier Gasifier Kemper County IGCC S T A C K SULFUR AMMONIA ASH EXHAUST GAS Heat Recovery Steam Generator ELECTRICITY SYNGAS Steam Turbine STEAM ELECTRICITY Heat Recovery Steam Generator SYNGAS S T A C K EXHAUST GAS SULFUR AMMONIA ASH Preliminary DRAFT 11/2007

16. Kemper County IGCC Why Coal? U. S. Has More Coal Than Any Other Nation

17. Kemper County IGCC What Is Lignite? • Lignite is young coal • Very high moisture • Low energy value or “Btu” content • Only economical to transport short distances

18. Kemper County IGCC Lignite • Partnering with North American Coal (NAC) • NAC is largest lignite miner in the U.S. • Operates Red Hills mine in Ackerman, MS.

19. Kemper County IGCC Environmental Permitting/NEPA Activities • PSD Application was submitted to MDEQ in December, 2007 • DOE will be preparing an Environmental Impact Statement (EIS) • Construction is expected to begin in 2010 • Operation of the facility is expected in 2013

20. Questions?