CCS Activities in US and China

NARUC MeetingFebruary 13, 2011

Nicholas K. AkinsPresident – American Electric Power

2

China vs. U.S. Primary Energy Consumption (BTOE)

Source: Power, 2010; International Energy Agency (IEA); “Preparing for China’s Urban Billion”, 2009, McKinsey Global Institute.

2001 1Q 20102009

By 2030, 221 Chinese Cities Will Contain1 Million People or More

3

0

1

2

3

4

5

6

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Net

Gen

(tril

lion

kW/y

ear)

Natural gas

Renewable

ProjectionsHistory

Nuclear

Oil and other

Coal

20%

23%

25%

1% 1%

45%

43%

14%10%

17%

Source: EIA, Annual Energy Outlook 2011, Adapted from R. Newell presentation Dec. 2010

2009

Coal Continues to Dominate Generation of Electricity in the U.S.

4

Total Primary Energy Demand in China, 2005

Source: Germanwatch, 2009

5Source: Energy Information Administration International Energy Outlook 2010.

Fossil Fuels: 84%

Glo

bal

En

erg

y D

em

and

Per

Yea

r (Q

ua

dri

llio

n B

tu)

Fossil Fuels: 80%

By 2030 Fossil Fuels Comprise 80% of Demand

World Energy Use by Fuel Type

6

Technology is the Key to Clean CoalTotal Emissions Have Declined 77%While Coal-Fueled Electricity Generation has Increased

0

5

10

15

20

25

30

35

1970 1975 1980 1985 1990 1995 2000 2005

Shor

t Ton

s pe

r BkW

h

0

200

400

600

800

1,000

1,200

Million Short Tons Coal

CO VOC SO2 NOx PM10 Coal for Electricity

Sources: EPA National Air Pollutant Emission Trends; EIA Annual Energy Review

+214% in Coal

6

-85% in SO2

-67% in NOX

7

Southern CompanyTransport Gasifier/Selexol CO2 Capture

Total:~$2.9B; DOE: $270M • EOR Storage – 3.0 MTPY

• 582 MWe (net)

Southern CompanyTransport Gasifier/Selexol CO2 Capture

Total:~$2.9B; DOE: $270M • EOR Storage – 3.0 MTPY

• 582 MWe (net)

Basin ElectricHTC Purenergy Amine Capture

Total: $287M; DOE: $100M• EOR or Saline Storage – 1.0

MTPY• 120 MWe Slipstream

Basin ElectricHTC Purenergy Amine Capture

Total: $287M; DOE: $100M• EOR or Saline Storage – 1.0

MTPY• 120 MWe Slipstream

HECAGE Gasifier/Rectisol CO2 Capture

Total:~$2.8B; DOE: $408M • EOR Storage – 2.0 MTPY

• 250 MWe (net)

HECAGE Gasifier/Rectisol CO2 Capture

Total:~$2.8B; DOE: $408M • EOR Storage – 2.0 MTPY

• 250 MWe (net)

Summit TX Clean EnergySiemens Gasifier/Selexol CO2 capture

Total:~$1.7B; DOE: $450M• EOR Storage – 3.0 MTPY

• 270 MWe (net)

Summit TX Clean EnergySiemens Gasifier/Selexol CO2 capture

Total:~$1.7B; DOE: $450M• EOR Storage – 3.0 MTPY

• 270 MWe (net)

AEPAlstom Chilled Ammonia

Total: $668M; DOE: $334M• SalineStorage – 1.5

MTPY• 235 MWe Slipstream

AEPAlstom Chilled Ammonia

Total: $668M; DOE: $334M• SalineStorage – 1.5

MTPY• 235 MWe Slipstream

NRGFluor Econamine FG PlusSM

Total: $334M; DOE: $167M • EOR Storage – 0.4MTPY

• 60 MWe Slipstream

NRGFluor Econamine FG PlusSM

Total: $334M; DOE: $167M • EOR Storage – 0.4MTPY

• 60 MWe Slipstream

FutureGenB&W Oxy-Combustion

DOE: $1.048B• Saline Storage – 1.0

MTPY• 200 MWe (gross)

FutureGenB&W Oxy-Combustion

DOE: $1.048B• Saline Storage – 1.0

MTPY• 200 MWe (gross)

Archer Daniels Midland Industrial Power & Ethanol

DOW Alstom AmineTotal: $208M; DOE: $141M

Saline, 1 MTPY

Archer Daniels Midland Industrial Power & Ethanol

DOW Alstom AmineTotal: $208M; DOE: $141M

Saline, 1 MTPY

Air ProductsSMR H2 Production, VPSA

Total: $431M; DOE: $284M EOR, 1 MTPY

Air ProductsSMR H2 Production, VPSA

Total: $431M; DOE: $284M EOR, 1 MTPY

Leucadia EnergyMethanol, Rectisol

Total: $436M; DOE: $261M EOR, 4.5 MTPY

Leucadia EnergyMethanol, Rectisol

Total: $436M; DOE: $261M EOR, 4.5 MTPY

Post-Combustion

IGCC

Oxy-Combustion

Industrial (ICCS)

DOE Major CCS Demonstration Projects

8

AEP CCS Validation Facility1,300 MWe Mountaineer Plant, New Haven, WV

Scale: 20 MWe slipstream ~1.5% of power plant flue gas

Cost: >$100M Project initiated in September 2007 Funding by AEP, Alstom, RWE, & EPRI

Capture: Alstom Chilled Ammonia Process Ammonium Carbonate/Bicarbonate Reaction >85% CO2 capture rate

Sequestration: Deep saline formation storage ~100,000 tons CO2 per year ~1.5 miles below the plant surface

First CO2 Capture: September 1, 2009

First CO2 Storage: October 1, 2009

Planned operation: 1 to 5 years

9

Scale: Full commercial demonstration 235 MWe Slipstream

Cost: ~$668M

Funding: CCPI Round III Selection DOE awarded 50% cost share, up to $334M Cooperative agreement signed in January, 2010

Capture: Alstom Chilled Ammonia Process ~90% CO2 capture rate

Sequestration: Battelle is Storage Contractor Deep saline reservoirs ~1,500,000 tons CO2 per year ~1.5 miles below the surface Pipeline system with off-site wellheads

NEPA Process Underway

Geologic Experts Advisory Group: Actively Meeting Battelle, CONSOL, RWE, MIT, Univ. of Texas, Ohio State,

WVU, Virginia Tech, LLNL, WV Geo. Survey, OH Geo. Survey, WV DOE, NETL, & CATF

Planned Operation: Startup in second half of 2015

AEP CCS Commercialization Project1,300 MWe Mountaineer Plant, New Haven, WV

10

GreenGen: China’s First IGCC ProjectCCS staged with increasing levels of capture

Source: Harvard University, February 2009

11

China Forging Ahead with Carbon CaptureA larger scale installation now in operation, Similar in scale to AEP’s 20-MW project)

Source: Harvard University, February 2009

12

AEP and China Huaneng Sign MOUCCS technology assessment

Evaluate Amine Process Developed by China Huaneng Parasitic load consumption Compatibility with existing power generating unit Characterization of process effluent streams

Perform “Apples-to-Apples” Comparison with Other Known Technologies

Standardize comparison conditions With compression included or without? Product CO2 quality and pressure Steam and power sources

Parasitic load Land requirements (footprint) Capability to handle load-swinging nature of generating unit

Consider Path Forward for Technology Commercialization Demonstrations and/or deployments