Overview of CO2 Capture Technologies,

System Integration, and Costs

Presented to the World Bank CCS Training Session

August 25, 2011

Robert Hilton, Vice President,

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

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Alstom: Three Activities

Leading global provider of equipment & services for…

Power Generation

Power Transmission

Rail Transportation

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Strong & Sustained Sales, Worldwide

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Transport

$8.0 bn

Power

$16.8 bn

•27%

•56%

•17%Grid

$5.1 bn

Total sales 2010/11: More than $29 billion USD

Key Facts & Figures:

•93,500 employees in 100 countries

•6% increase in sales from 2009/10 to 2010/11

•Steady increase in R&D investment to more than

$1 bn USD in 2010//11

•Leading provider of innovative clean

technology solutions

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Life Cycle

Management

Gas Hydro

Geothermal SolarBiomass

Oil

Coal Nuclear

Wind

Power Technologies for all Energy Sources

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© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

•Source: Vattenfall

Pre-combustion

(New only)

Power Plant with CO2 capture

Solutions developed by Alstom

•CCS must be also applied to the installed base

Post-combustion Oxy-combustion

(New + retrofit) (New + retrofit)

•CO2 Capture Solutions

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

CCS Landscape: U.S. – Projects

• Important validation projects completed to-date

• Project pipeline includes:

Chilled ammonia CCS project –

AEP Mountaineer Plant – New Haven, WV

Project Status Timeline

AEP – Mountaineer II On-hold N/A

Basin Electric On-hold N/A

Summit FEED 2016

Kemper Construction 2014

HECA Negotiation 2017

NRG FEED 2016

FutureGen FEED 2017

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© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

CCS Landscape – U.S. Projects

•Southern Company•Transport Gasifier/Selexol CO2

Capture•Total:~$2.9B; DOE: $270M • EOR Storage – 3.0 MTPY• 582 MWe (net)

•HECA•GE Gasifier/Rectisol CO2 Capture•Total: ~$2.8B; DOE: $408M • EOR – 2.0 MTPY• 250 MWe (net)

•Summit TX Clean Energy•Siemens Gasifer/Rectisol CO2

capture•Total:~$1.7B; DOE: $450M• EOR Storage – 3.0 MTPY• 270 MWe (net)

•AEP•Alstom Chilled Ammonia•Total: $668M; DOE: $334M•Saline Storage – 1.5 MTPY• 235 MWe Slipstream

•NRG•Fluor Econamine FG PlusSM

•Total: $334M; DOE: $167M • EOR Storage – 0.4MTPY• 60 MWe Slipstream

•FutureGen 2.0•B&W Oxy-Combustion•DOE: $1.048B• Saline Storage – 1.0 MTPY• 200 MWe (gross)

•Key:

•80% DoE Cost Share

•EOR

•50% DoE Cost Share

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•Note: Southern Company also has 20% rate increase•While Summit and HECA have yet to conclude financing

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

CCS Landscape: U.K. - Projects

• Government commitment to 4 demo projects- 3 coal, 1 gas

• 1st demo in negotiation- Applications for 2-4 to launch by end 2011

• 9 other projects bidding for

funding- 7 in running for add’l EU

funding • Decision by end 2012

- Projects clustered in

Scotland and Humber/Tees

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© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

CCS Landscape: Europe - Projects

• European Union commitment to fund up to 12 demos

• 6 demos already funded at €180m each- 2 Oxy-combustion

- 3 Post-combustion (amines)

- 1 IGCC

• €3bn fund set to be awarded in 2nd half of 2012- 13 projects competing for up to 8 grants

• Working toward mix of post- pre- and oxy-combustion

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© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

CCS Landscape: Asia - Projects

• Australia - 2 demo projects under active development- Delta - 100,000 tpy – post combustion – 2014 start

- Callide -100,000 tpy – oxy-firing – 2011 start

• China – 4 significant projects- GreenGen - IGCC - full capture by 2018 (power generation)

- Shidongkou – amines – 100,000 tpy – 2011 start-up (power

generation)

- Shenhua – coal liquifaction – 100,000 tpy – 2011 start (industrial)

• India- Drafting mission document on carbon capture, exploring CCS

pilots

*tpy = tons per year

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© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Costs of CCS - PJ - 25 May 2011 - P 11

A comprehensive study of CCS costs

Based on:

• Our substantial investment in CO2 capture technologies since 1998

• The knowledge and experience gained from our 13 CCS pilot and

demonstration projects:

– 7 pilot projects

– 6 demonstration projects

• Our long experience on conventional power plants over many

decades:

– experience in designing and manufacturing key components:

boilers, gas and steam turbines, air quality control systems

– experience in integrating components and processes in power

plants

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Costs of CCS - PJ - 25 May 2011 - P 12

Total LacqFrance - 30 MWth

Oxy - Gas

Vattenfall Schwarze PumpeGermany - 30 MWth

Oxy - Lignite

Vattenfall JänschwaldeGermany - 250 MWe

Oxy - Lignite

Dow Chemical Co. USA, West Virginia

Advanced Amines - Coal

AEP MountaineerUSA - 58 MWth

Chilled Ammonia - Coal

Coming

TCM MongstadNorway - 40 MWth

Chilled Ammonia - Gas

TransaltaCanada - >200 MWe

Post - Coal

Alstom BSF WindsorUS - 15 MWthOxy - Coals

CET - Getica (Turceni)Romania – >250MWe

Chilled Ammonia - Lignite

Selected for receiving EEPR fundingSelected by Alberta and Federal Canadian funding

Selected by US DOE to receive CCPI Round 3 funding

EDF – Le HavreFrance – 5 MWth Adv.

Amines - Coal

PGE BelchatowPoland – 260 MWe Adv.

Amines - Lignite

Pre-commercial Projects

AEP MountaineerUSA – 235MWe

Chilled Ammonia - Coal

Alstom activity on pilots and demonstrations 1st and 2nd generation CCS

RFCS EU - Darmstad Germany – 1 MWth

Chemical looping - Coal

DOE/Alstom WindsorUS – 3 MWth

Chemical looping - Coal

Drax - SelbyUK - 426 MWe

Oxy – Hard Coal

2nd GEN

2nd GEN

NER300 appl.

NER300 appl.

NER300 appl.

NER300 appl.

Operating

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

CCS Cost Study – Key Assumptions

Study based on New Plant in Europe

Add-on costs for energy penalty and increase cost of electricity generation rises

Considers cost of electricity generated with CCS & cost of CO2 avoided

Two capture technologies: post-combustion and oxy-combustion using two fuels: hard coal and gas

Coal and gas (combined cycle) plants with CCS operating as base-load

CO2 capture rate of 90%

Conservative learning curves up to 2030; based on Rubin/CMU curves

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© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Costs of CCS - PJ - 25 May 2011 - P 14

• 90 % CO2 Capture and 99% CO2 Purity is demonstrated

• Feasibility of integrated capture – transport – storage established on a power

plant

• Energy penalty < 20%, and soon at 15%

• Solid base for design and cost control

• Oxy and Post have good potential

14%

15%

16%

17%

18%

19%

20%

2010 2015 2020 2025 2030 2035

CCS OXY

CCS PCC

15%

CCS PLANT – ENERGY PENALTY

% AGAINST MWe net REF PLANT

Hardcoal CCS commercial plant size - Europe

Source: Alstom

Pilots show that CCS works:

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Costs of CCS - PJ - 25 May 2011 - P 15

Results (1)

Hard coal

• Costs of electricity generated (*):

€84/MWhr in 2015 = 70% more than the same plant without CCS

€73/MWhr in 2030 = 45% more than the same plant without CCS

• The additional costs (*) are equivalent to:

in 2015, €54 per tonne of CO2 avoided

In 2030, €37 per tonne

• Oxy and post-combustion technologies deliver the same performance by 2030

• Energy penalty of 15-16 % can be realistically targeted by 2030

• Lower total cost of electricity than solar, geothermal and off-shore wind

• Competitive with nuclear, on-shore wind and large hydro

• Coal with CCS is cheaper than onshore wind as well when additional system costs for intermittent renewables are counted

(*): PCC case

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Costs of CCS - PJ - 25 May 2011 - P 16

Results (2)

Gas

• Costs of electricity generated (CoE):

– €65/MWhr in 2015 = 50% more than the same plant without CCS

– €55/MWhr in 2030 = 30% more than the same plant without CCS

• The additional costs are equivalent to:

– in 2015, €74 per tonne of CO2 avoided

– In 2030, €49 per tonne

• Energy penalty of 15-16 % can be realistically targeted by 2030

• Lower total cost of electricity than wind (off- and on-shore), solar and

geothermal

• Competitive with nuclear and large hydro

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

0

1 0

2 0

3 0

40

5 0

6 0

7 0

8 0

9 0

1 0 0

42€

CCSREF

2015 2030

Transport

&Storage

Fuel Cost

CCS/Coal REF

Capex & Opex

43€

65€

55€

CCSREF

Euro / MWh net

REF

2015 2030

GAS - EUROPE

84€

49€ 50€

73€

CCSREF CCS

HARDCOAL - EUROPE

Source: Alstom – PCC

CCS/Gas REF

Capex & Opex

+71%

+46%

+49%+33%

0

1 0

2 0

3 0

40

5 0

6 0

7 0

8 0

9 0

1 0 0

42€

CCSREF

2015 2030

Transport

&Storage

Fuel Cost

CCS/Coal REF

Capex & Opex

43€

65€

55€

CCSREF

Euro / MWh net

REF

2015 2030

GAS - EUROPE

84€

49€ 50€

73€

CCSREF CCS

HARDCOAL - EUROPE

Source: Alstom – PCC

CCS/Gas REF

Capex & Opex

+71%

+46%

+49%+33%

Cost increase <50% by 2030 for both Coal and Gas

Cost of CO2 avoided: 37 €/t for coal & 49 €/t for gas in 2030

CCS: Essential & Affordable on Gas and Coal

CCS Cost of

Electricity Impact

is lower on gas

than on coal

Alstom in the U.S. - P 24 | © Alstom 2011

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CCS Cost Study - U.S. Implications

• NETL analysis shows some similarities to Alstom findings

• Alstom findings shared with key U.S. Stakeholders- Customers, Congress, DOE, EPRI

• Alstom planning U.S.

and Asia studies -

Fall 2011

Alstom in the U.S. - P 25 | © Alstom 2011

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

8465

0

100

200

300

400

Nuclear

Hydro

Geo

ther

mal

CCG

T CCS 2

015

Ons

hore

Win

d

PC Hard

coal C

CS 201

5

Offs

hore

Win

d

Solar

PV

Solar

Ther

mal

€ / MWh CoE - Low Carbon Technologies Ordered in 2011-2016 Period

Reference case

Source : Alstom analysis 2011. CCS 2015 costs, including on shore T&S and CO2 price (Flue Gas Recirculation case for CCS

Gas CC, average Amine/Oxy for CCS Hardcoal)

With realistic assumptions and variation range,

CCS on Coal & Gas Combined Cycle is competitive as of 2015

CCS Cost Comparison

Alstom in the U.S. - P 26 | © Alstom 2011

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CCS Cost Study – Overall Results

• CCS on gas or coal is cost competitive with wind before cost reductions from

learning effects- With same FIT given to wind, CCS will be “commercially viable” in 2015

• Learning effects will increase CCS competitiveness against more mature

renewables

• A target of CO2 avoided cost in the range of €30-35/t is realistic by 2030 for

coal

• CoE uplift in 2030 will be 45% for coal & 30% for gas- CCS on gas is thus commercially viable and cheaper than CCS on coal

• Carbon price of €43 in 2025 means coal w/CCS will be commercially viable

without FIT- Gas, at a price of €54 in 2026

• The main determinant of CoE remains the fuel price, especially for gasAlstom in the U.S. - P 27 | © Alstom 2011

© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

How Do We Get There

Address the Challenges to CCS Deployment

CC

S D

eplo

ym

ent

Increase Financial Support

Address Permitting & Regulation

Validate Storage Sites

Educate the Public

Build Rate Recovery Framework

Establish carbon price, policy or regulatory framework

Equal stance for CCS and other low-carbon options

Subsidize sequestration

Sell credits into existing carbon market

Uniform sector or regional wire charge

EOR royalties or other funding diversions

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What Needs To Be Done

Funding

• Establish funding mechanism for large-scale demonstration

Market

• Re-engage discussions on policy framework for regulation and financial support

Technology

• Return to critical path for CCS evolution, drive down cost curve to meet customer needs

CCS Deployment & Progress Towards Climate Goals

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Thank You

alstom.com

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