Future Clean Electricity mix Mike Farley Director, Doosan Power Systems Chairman TUC Clean Coal Task Group Presentation to TUC Conference October 11 2010

Current UK electricity mix Share of electricity supplied in 2009 Electricity in the UK Current UK electricity mix Essential requirements for future energy mix: Addressing climate change Security of supply – balanced portfolio Affordable cost of electricity Current UK policy: No coal without CCS Financial support for 4 projects Electricity decarbonised by about 2030 80% reduction in emissions by 2050 Other, 2% Renewables 7% Nuclear 18% Coal 28% Share of electricity supplied in 2009 Current status of the UK market Reinforcing that we have no choice but to deploy CCS Gas 45% CCS is an essential element of the future UK electricity mix (coal and gas) 1

Stages in global roll out of CCS CCS – Global Overview Stages in global roll out of CCS Current status of CCS 2020 CCS is currently moving from the Pilot to the full size Demonstration stage Already 4 storage projects in operation 20 full scale, full chain CCS projects expected to be operational by 2016 Today new plant can be built “CCS ready” Commercialisation is required by 2020 if global climate change targets are to be met Target for commercialised CCS 100 projects globally 2016 20 full scale, full chain CCS projects to be operational 2010 4 integrated projects Pilots operational Where we are Ambitious roll out is needed if global climate change targets are to be met 2 Pilot Demonstration Commercialisation

Doosan Power Experience in Carbon Capture United Kingdom North America Renfrew, 1t/day Doosan Flue Gas Desulphurisation and Amine Scrubbing test facility recently opened High degree of flexibility and accuracy to test wide range of Solvents & Coals ITC 1T/day & Boundary Dam, 4t/day University of Regina have been developing Carbon Capture technology for over 20 years / Boundary Dam in Operation since 2000 / ITC opened in 2003 20+ Years of Operation Ferrybridge, CCPilot100+, 100t/day Will be largest modern capture plant operating on coal globally Operational within 12 months Access to test any Solvent Basin Electric, 3,000t/day One of the front runners to commercialise PCC technology on major scale Commercial project, utilised for Enhanced Oil Recovery FEED Stage , Operational 2013 Industry Leading Scale Evidence of DPS experience Performance demonstrated on wide range of fuel and different plant configurations 3

Our Experience in OxyCoalTM Largest oxyfuel firing demonstration of its kind One year of successful operation at 40 MWth OxyCoalTM test facility in Renfrew OxyCoalTM technology is now available for full power plant demonstration, on both retrofit and new build We aim to design, supply and construct: 100 MWe and 250 MWe oxyfuel plants to be operational by 2015 400 MWe – 1000 MWe oxyfuel plants to be operational by 2020 Evidence of DPS experience Doosan Power Systems is a world leader in oxyfuel development 4 Page 4

Key Messages We believe that coal has a future with CCS, alongside nuclear and renewables: coal CCS is critical to decarbonising electricity, whilst maintaining security of supply and at a reasonable cost Consistency and sustained commitment from Government is needed Governments must plan for commercial roll out beyond demonstrations: public engagement financial mechanisms development of infrastructure and storage legal and regulatory frameworks Conclusions Coal has a future, only with CCS DPS is strongly committed to this Governments must also be looking beyond initial demonstrations

CCS – Total Jobs Potential for UK plc Jobs across whole chain Four early demonstrations (incl coal and gas) for needed to provide references for capture, transport and storage Win 10% share of export market UK plc share of global business potentially worth 40,000 jobs in UK/Scotland from 2020 Further 10,000 possible jobs in UK/Scotland from 2025

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