White Rose CCS Project David Love, Director of Policy & Regulation, Drax. March 2013

Project Snapshot Largest Oxy-combustion CCS Demonstration Project Worldwide A new modern ultra-supercritical 426MWe Gross Oxy Power Plant (305MWe Net) Clean power generation with the entire flue gas treated to capture 2 Million t/y CO2 CO2 specifications suitable for both saline formation storage and EOR Biomass co-firing leading to zero (or even negative!) CO2 emissions Project development activities on-going DECC – HMT final decision on FEED funding announced Budget 2013 White Rose confirmed as one of two selected UK projects

Project Location Project infrastructure to provide anchor project for National Grid’s (NG) regional CO2 transport & offshore storage network Located at the Drax Power Station Site, Selby, North Yorkshire

Project Promoters – A Strong Consortium Owner and operator of the UK’s largest, cleanest, most efficient coal-fired power station; meets 7% of the UK’s electricity needs Produces more renewable power than any other UK facility Committed to reducing Drax & UK power generation carbon footprint A global leader in the world of power generation, power transmission and rail infrastructure A pioneer in large-scale and efficient CCS technologies The largest provider of industrial gases in UK A member of the Linde Group, a world leading gases and engineering company An international electricity and gas company and one of the largest investor-owned energy companies in the world Expert in running high pressure natural gas system in a safe, reliably and efficient manner

Project Objectives Prove that large scale, full chain CCS is technically and commercially viable Demonstrate that this technology can work within the UK market Provide T&S infrastructure to create an enduring legacy for future CCS developments in the Humber region Drax, Alstom and BOC joined forces to develop the UK new Oxy CCS Demo (White Rose Project) at the Drax site Drax is actively looking for possibilities to reduce CO2 emissions and recognises CCS as an essential medium to long term decarbonising solution for new-build (and perhaps existing) coal-fired power plants Alstom having validated Oxy-combustion CCS technology at pilot-scale is seeking to demonstrate technology’s efficiency and value on a large scale demonstration project BOC is seeking to develop and demonstrate efficient large scale air separation units to meet the needs of future Oxy-combustion projects Upon demonstration, Alstom & BOC will be able to commercialise Oxy-combustion technology for full scale applications

CO2 Transportation & Storage Partner Roles Location: Drax Power Station, Power Station, North Yorkshire, UK ALSTOM DRAX Project Promoters NATIONAL GRID Oxy Power Plant CO2 Transportation & Storage BOC

Partner Roles: Oxy Power Plant Location: Drax Power Station, Power Station, North Yorkshire, UK

Oxy-Combustion Technology Reliable: all main components exist; requires only adaptation to power and scale-up Fuel Flexibility: applicable for all types of boilers, firing systems and fuels Scale-up: no constraints anticipated for larger commercial units Emissions: No new chemicals introduced to the power plant

Oxy Power Plant 3D Model Note – this is a typical 3D model and not a depiction of the White Rose Project

CCS competitiveness vs low carbon alternatives in Europe in the next 5 years Source : Alstom analysis 2012. CCS w Post amine 2017 costs, reference value with on shore T&S, CO2 price and Flue Gas Recirculation for CCS Gas CC. Upper range includes off-shore storage. CoE do not include “externalities” of Intermittent power (Back-up cost, balancing cost, grid enhancement if required) © Alstom 2012, extracts from Cost assessment of fossil power plants equipped with CCS under typical scenarios

Power Plant Development – Update on current Status DECC – HMT final decision on FEED funding announced with Budget 20 March 2013. White Rose confirmed one of two selected UK projects. A long list of eight projects had been reduced to four in October2012 FEED contract to be finalised ASAP FEED activities expected to commence in H1 2013, and last 15-18 months Possible application for NER Phase 2 Q2 2013? Permitting process for the Oxy Power Plant on-going (supported by experienced consultants) Engaged with National Grid Carbon on the project CO2 Transport & Storage solution development and on the development of Humber cluster Demo project Cost of Electricity calculations confirm expected commercial competitiveness of CCS versus other low-carbon alternatives

Power Plant Development Summary JPDA Signing UK CCS Commercialisation Programme Submission 2011 2012 2013 2014 NER Submission ASU Partner Selection Pre-FEED Consenting FEED Activities Technical FEED UK CCS Commercialisation Decision NER Phase 2 Submission?

Power Plant DCO Permit Summary Programme SOCC Consultation & Publication - Q4 2012 Scoping Consultation - Q4 / Q1 2013 PER Publication and Consultation - Q1 / Q2 2013 DCO Application Submission - Q3 2013

National Grid - CO2 Pipeline Project Status Transport Development R&D programme: Vapour phase programme completed Dense phase programme progressing well Onshore route planning: Two rounds of public consultation completed with over 1,700 people attending 23 exhibitions Identification of early route alignment (Northern) In the process of commissioning geotechnical and archaeological site work Ongoing EIA route investigation work Offshore route planning: Route options in preparation Nearshore Survey scheduled for latter half of 2012 Storage Development Prime storage target saline aquifer site and backup identified Detailed geological and dynamic modelling of prime site undertaken Further geological modelling refinements and storage development scenarios being explored Offshore facilities conceptual design studies completed Appraisal drilling pre-drill data package defined Appraisal drilling expected summer 2013

Summary of Project Benefits At a national level the White Rose CCS Project will contribute to a range of benefits: Demonstrating Oxyfuel CCS technology as a flexible, cost effective and viable low-carbon technology Reducing CO2 emissions in order to meet future environmental legislation and combat climate change Biomass option, providing negative carbon potential Improving the UK’s security of electricity supply by providing a new, cost-competitive, flexible and reliable coal-based, low-carbon electricity generation option Generating enough low-carbon electricity to supply the energy needs of the equivalent of over 630,000 households Acting as an anchor project for the development of a CO2 transportation and storage network in the UK’s most energy intensive region thereby facilitating decarbonisation and attracting new investment Local benefits of the proposal include: An expected average of 1,250 new construction jobs over the three-year plant development period at the Drax site. At least 60 operational jobs at the new plant as well as additional indirect supply and maintenance posts. Increased turnover for local businesses during the construction and operational periods. Further details of the White Rose CCS Project can be found at : www.whiteroseccs.co.uk