1. Coal to Liquids Plant Site Selection in WV Douglas G. Patchen October 25, 2007

2. WV Energy Goal To displace 1.3 billion gallons of imported oil by the year 2030 through use of indigenous fuels Fuels developed in WV using WV resources

3. 1.3 B gal Goal Amounts to 60% of WV’s current use Equals the % of US oil use that is imported

4. Proposed Solution: CTL Support the Governor’s CTL initiative by developing site selection screening criteria Assess the potential impact of CTL technology to meet the State’s goal

5. CTL Plants: Large Contributors 20,000 b/d output CTL plant could produce 300MM gallons of clean diesel and other transportation fuel each year 5 such plants would meet WV’s 1.3B gallons/yr goal

6. Why CTL? WV has… Substantial coal reserves Abundant water resources Established energy infrastructure Trained workforce

7. Increased Coal Production 20,000 b/d CTL plant requires 4 million tons of coal each year Coal for 5 plants would increase WV coal production by 15% each year

8. Reality… CO2 emissions from CTL plant are significantly higher than from a petroleum refinery producing an equivalent amount of liquid fuel Therefore, Carbon Capture & Storage (CCS) system may be a necessary component of all CTL plants

9. CCS Potential CTL Plant capturing 85% of CO2 emissions would emit 3.7% more than a petroleum refinery with equal output

10. What do we need for CCS? To develop an adequate surface infrastructure To identify subsurface reservoirs capable of storing the anticipated amount of CO2

11. Value-Added CCS Options Benefits include reducing greenhouse gas emissions and enhancing oil and gas production from… EOR projects in old oil fields ECBM projects in unmineable coal beds

12. Infrastructure Needs Significant RR or barge access to minimize coal transportation costs Access to enough water to meet plant processing and cooling requirements Proximity to electric transportation lines, natural gas pipelines, suitable reservoir

13. Bottom Line Compilation & availability of the proposed data will provide a stimulus for entrepreneurs and investors to explore CTL opportunities in WV

14. Research Proposed Develop site-selection screening criteria Create a database of site-specific information

15. T-1: Develop Site Criteria Physical Environmental Geologic Workforce issues

16. Physical Characteristics Size and topography of available land Proximity to necessary infrastructure (water, coal, electric transmission lines, natural gas pipelines)

17. Environmental Criteria Potential impact on water quality or threatened and endangered species Sensitive sites such as wetlands and floodplains Establish environmental compliance thresholds CTL plants must meet

18. Geologic Criteria Geologic stability at the surface Critical subsurface reservoir quality parameters Ability to store the necessary volume of CO2 expected to be produced

19. Screening Weights Weights will be assigned to each criterion reflecting relative importance to CTL site Sites will be screened using this process; potential sites ranked

20. T-2: Create Database Database will be developed for all potential sites that pass the screening process DB will be restricted to sites capable of accommodating a 10,000 b/d CTL plant However, 20,000 b/d CTL plant necessary to meet economics

21. Nominating Sites Industrial, commercial, energy, business, government & economic leaders to be contacted by letter They can nominate a site; must submit all available data for the site to be screened Sites will be screened and ranked

22. Database Maintenance It is envisioned that WVDOE will continue to maintain this database after the proposed project ends Other sites will be evaluated and added/dropped as nominated

25. CTL – Wide Range of Products Liquid fuels Electricity Pipeline-quality gas Feedstocks for chemical industry Nitrates for fertilizer production

26. Site Visits Will be made – as time and budget permit – to more promising sites for further examination

27. Deliverables Final report that lists the site criteria, nomination and evaluation process, and lists the sites selected for inclusion in the CTL ranked-site database