c. hobson - recs keynote
TRANSCRIPT
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Research Experience in Carbon Sequestration
Southern Company Research Program
Chris HobsonChief Environmental Officer
Senior Vice President
June 18, 2013
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Southern Company Overview
2
45,700 MW300 generating units
Generation
27,000 line miles3,300 substations
Transmission
159,000 line miles4 million poles
Environmental
$63.2 B total assets$16.5 B revenues$2.3 B Net Income
Financial
Through2012
Distribution
$8.7 B completed projects$3.6 B new projects
Operations
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Southern Company Generating Facilities
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National Energy Policy Priorities
Need a full portfolio of energy resources. Nuclear 21st Century Coal Natural Gas Renewables Energy Efficiency
Need a national, robust research and development effort tocreate new technologies for our future.
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37%Coal
30%Gas
19%Nuclear
7%Hydro
5%
Renewables
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SouthernCompanyGenera0onMix
25and212
Coal
38%Gas42%
Nuclear18%
Hydro2%
Coal
71%
Oil
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Assumptions/Drivers Impacting Fuel and
Generation Mix and Forecasts
Environmental requirements for coal plants Natural gas market conditions and fuel costs Carbon scenariosAssumptions for generation additions (nuclear, renewables, CCS, etc.) Demand growth Transmission system impacts Operationally and environmentally feasible fuels for each plant Transportation costs Mining/fracking issues
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Na0onalAmbientAirQualityStandards(NAAQS)
ParculatemaBer(TSP,PM-10,PM-2.5) Sulfurdioxide(SO2) Ozone(1-hour,8-hour) Nitrogendioxide(NO2) Lead Carbonmonoxide(CO)
Reviewedevery5years
HazardousAirPollutants(MATS)
MercuryAcidgasesOthermetals
WaterQualityandQuan0ty
Waterintakeandfishprotecon
Waterqualitystandards
Thermaldischarges iologicalissues Groundwater LandandWasteIssues
Ash Scrubbermaterial Hazardousmaterials
VisibilityandRegionalHaze
Sulfates Nitrates Parculate
maBer
CurrentMajorEnvironmentalDrivers
GHGsandClimate
PSDandTitleVpermits Emissionperformancestandards ?
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WhyIsCoalImportant?
Between 2002 and 2010, global coal consumption grew at nearlytwice the rate of growth of all fuels. The U.S. has approximately 1/3rd of the worlds total recoverable coal
reserves.
Coal is essential to the U.S. energy economy.
In 2010, coal provided 21% of total U.S. energy consumption and 45% of U.S.electric power.
Energy security and economic stability require energy diversity Cannot rely on continued low shale gas prices, nuclear and renewables.
Coal has the potential to support new electricity demand. Support transportation electrification Substantial vehicle electrification will create demand equivalent to 18 new 600 MW
power plants. Creates market for 33 million tons bituminous or 45 million tons PRB coal.
Fuel diversity in transportation sector reduces dependence on imported oil.
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Challenges Facing Effective Use of Coal
New coal plants are expensive to build and existing coal plants areexpensive to retrofit.
Shale gas has changed the outlook for power generation. Regulatory environment impacting coal and CCS technology
development. Howeverutilities cannot build new coal plants without CCS
With gas the preferred option and the current regulatoryenvironment, no investment in higher cost coal or CCS is expected.
Reality of diminishing budgets for coal RD&D. Need to consider mechanism to support the roadmap funding needs, including an
out of budget mechanism.
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Critical Research for Coal
Emissions Control Research Plant Performance and Reliability Improvements Advanced Generation Development Coal Combustion Byproducts Air Quality Studies Renewable Energy Technologies Carbon Capture and Sequestration
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Research: CustomerBenefits
TechnologyInnovations
Competitiveadvantage
First-handexperience
Regulatory
credibility
Research: Customer Benefits
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30-MW SolarCimarron Solar Facility
One of Largest U.S. Biomass
Nacogdoches Generating Facility
Start-to-finish 25-MW CCS
Alabama Power Plant Barry
Air Quality Science CenterSEARCH network; ARIES; mercury
Integrated Gasification Combined Cycle
Mississippi Power / Kemper County
National Carbon Capture Center
Wilsonville, Alabama
Water Research Center
Georgia Power Plant Bowen
Smart Grid: Integrated Distribution
Management System
Leading New U.S. Nuclear
Georgia Power Plant Vogtle
PowerDelivery and End-Use Technology Lab
Mercury Research Center
Gulf Power Plant Crist
20-MW Solar
Apex Solar Facility
139-MW SolarCampo Verde Solar Facility
30-MW SolarSpectrum Solar Facility
2.5-MW Solar
Granville Solar Facility
Offshore Wind Research
Distributed Solar
Research Programs and New Projects
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The environmental landscape is complex and remains uncertain. Must have diversity of energy sources for lower costs and lower risks. Solutions can be developed to preserve coal with a sense of balance with
regards to reliability, economic consequences and environmental impact.
Expansion of natural gas interstate pipeline system and transmission grid isneeded.
Cumulative impacts must consider all requirements and costs for decisionmaking.
Must invest in research and development that creates innovative, newtechnologies for our future.
Issues and UncertaintiesIssues and Uncertainties