CO 2 Capture Status - Post-combustion - Pre-combustion (IGCC) - Oxy-combustion

1. CO2 Capture Status- Post-combustion- Pre-combustion (IGCC)- Oxy-combustion Westar Spring Business Meeting Incline, NV April 7, 2009 George Offen Sr. Technical Executive Emissions & Combustion Products for Richard Rhudy Technical Executive CO2 Capture and Storage

2. CO2 to use or Sequestration Fresh Water CO2 Removal e.g., MEA Coal PC Boiler Flue Gas to Stack SCR ESP FGD Air Fly Ash Gypsum/Waste Steam Turbine Pulverized Coal With CO2 Capture –Integration Issues Output Penalty: Up to 30% Today CO2 to Cleanup and Compression Cleaned Flue Gas to Atmosphere • CO2 capture needs • Ultra-low SO2, NO2, PM • Much energy for stripper • Big space • Maximizing MW, efficiency requires optimal thermal integration • Three U.S. small plants in operation today • Largest = 300 t CO2/d recovered on 35 MW plant CO2Stripper Absorber Tower Flue Gas from Plant CO2 Stripper Reboiler

3. Oxy-Combustion Capture Status Source: Vattenfall • No Commercial Power Plants use Oxy-Combustion today, but: • Several pilot scale (~1 MW) test units operating • Vattenfall 30 MWth pilot plant operating • B&W 30 MWth test facility in Ohio

4. Sulfur Coal Gas Clean Up CC Power Block POWER Air ASU Gasifier O2 Slag Sulfur CO2 Coal CC Power Block Gas Clean Up ASU Gasifier Shift Air POWER O2 H2 Slag IGCC With and Without CO2 Removal IGCC no CO2 capture • IGCC and CO2 removal offered commercially: • Have not operated in an integrated manner • Three U.S. non-power facilities capture CO2 • Coffeyville • Eastman • Great Plains • Many coal gasification plants in China recover CO2 • Great Plains recovered CO2 used for EOR: • 2.7 million tons CO2 per year • ~340 MWe if it were an IGCC IGCC with CO2 capture CO2 Capture = $, Space, Shift, H2 Firing, CO2 Removal, Energy

5. CO2Capture May Be Doable Today, But…. • Would increasecost of electricity (COE) significantly • 60-80% increase versus SCPC with no capture • Cost increase for IGCC less than SCPC, but IGCC base cost higher • Would be risky – lack of experience • Concerted RD&D effort expected to decrease cost, energy impacts dramatically

6. Unarticulated Limits on Some CO2 Capture Concepts Second Law Violators CO2 fuels needs energy source – more than get back Sometimes do not account for overall total CO2 footprint Real Estate Moguls Biological processes use solar energy for CO2 conversion, but need 45 miles2 for 500 MW plant Solar energy likely better used to make electricity directly instead of converting CO2 in non-biological processes Massive Material Mismatch (once-through capture) Limited global supply of chemicals to capture CO2 or make saleable products Limited use of CO2 directly Gold mine  CO2 solution Successful economic propositions may not make dent in power CO2

7. Carbon Capture Technology Groups Absorption Adsorption Membranes Biological Other • Amines (many) • Carbonates • Ammonia • Hydroxide • Limestone • Metal Organics • Zeolites • Fibers • Microporous • Algae • Micro-algae • Cyanobacteria • Mineralization • Cold Separation EPRI Finding Many Processes Being Developed for Post-Combustion CO2 Capture ~ 30 processes found 2/07 (Report #1012796) > 50 processes now (Report #1016995) • No breakthrough technologies (~10% energy penalty) • Potentially interesting concepts surfaced recently

8. 2007 2010 2015 2020 2025 Need Multiple: Capture Demos – Risk Management, CompetitionStorage Demos – Understanding thru Different Geologies 2005 2010 2015 2020 Pilots 1.7 MW We Energies Chilled Ammonia Pilot Other Pilots (Post-Combustion and Oxy-Combustion) 20 MW chilled ammonia scale-up with storage Ion Transport Membrane O2 Scale-up 25 MW advanced amine with storage AEP Mountaineer Southern/SSEB Ph. III Demonstration Other Demonstrations 125-200 MW follow-ons? Partial integration, EOR &/or storage IGCC + CCS Projects Integration UltraGen, others Oxy-Combustion Goals – Affordable, Energy Efficient, Accepted

9. Commissioning tests underway > 3500 h of operation Parametric/long-term tests start in 2Q09 1.7 MWe Alstom Chilled Ammonia Pilot at We Energies: Critical Step To Demonstrate New Technology Courtesy of Alstom

10. Demos – Post-Combustion CCS • AEP Chilled Ammonia CCS • ~20-MW capture module at Mountaineer plant; design will build on 1.7-MW Pleasant Prairie pilot results • Injection ~100,000 TPY into two on-site wells • Southern Co. Advanced Amine CCS • ~25-MW capture module at Southern Company plant • Injection (~150,000 TPY) and storage test funded/ conducted by DOE “SECARB” regional partnership • Other announced projects • Powerspan ECO2, ~125 MW, mostly EOR • Basin Electric Antelope Valley • NRG WA Parish • Chilled Ammonia at TransAlta, ~125 MW • HTC Purenergy – Canadian site TBA • Siemens amino acid salt – Site TBA • 10-12 being “discussed” in Europe; others in Australia, Canada, China, Japan

11. IGCC with CCS – Three-project Program Demonstrate technical and economic viability of advanced coal power plants with CCS • Project 1 • 300,000 TPY CO2 • Slipstream at existing site • Single-stage water-gas shift • Project 2 • 1 MTPY CO2/yr @ planned site • CO2 capture from unshifted syngas ( “skimming”) • Project 3 • ~3.5 MTPY @ new site • Fully-shifted syngas-based CO2 capture (“full capture”)

12. Advanced Boiler Initiatives • UltraGen – competitive advanced pulverized coal with CCS • Commercial project with demonstration elements • Possible = E.ON-UK 300-MW CO2 capture • New 800-MW ultra-supercritical (620oC) • Expected online 2012 • High efficiency to reduce CO2> 20% • Near-zero emissions • Integrated CO2 capture at 90% • Oxy-combustion – Jamestown BPU • 43-MWe CFB with CCS • 98% CO2 capture • Near-zero emissions of criteria pollutants • Commercially-dispatched unit in service by 2013 • Scalable to 600 MW

13. Summary • Types of capture systems • Boilers: >50 concepts, ~ 6 physical/chemical process types • IGCC: 2 commercially used in non-power applications • Oxy-firing: water separation, need to remove O2, SO2, NOx? • Timelines • Potential for commercial availability by 2020 • Hurdles to overcome • Energy, cost penalty • Lack of experience at scale, with coal, in power systems • Projects in operation, planned • Operation -- 1.7 MW at We Energies • Under construction – 20 MW at AEP • Planned – ~20 in North America, Europe, Asia • Lessons learned – No breakthru’s, • Next steps (ongoing) – incremental developments & breakthru search

14. Questions

15. CO2 Capture in Coal Power Systems

16. Most Developed Technologies on Coal >1 MW(size, location) • Amine • Fluor MEA (None) • MHI Amine (1 MW, Japan) • Aker Amine (None) • HTC Amine (None) • Cansolv Amine (None) • Emerging – Alstom/Dow, Siemens • Ammonia • Alstom Chilled Ammonia (1.7 MW, USA) • Powerspan ECO2 (1 MW, USA)