CCS Activities in US and China NARUC Meeting February 13, 2011 Nicholas K. Akins President – 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 Q By 2030, 221 Chinese Cities Will Contain 1 Million People or More

3 Net Gen (trillion kW/year) Natural gas Renewable ProjectionsHistory Nuclear Oil and other Coal 20% 23% 25% 1% 45 % 43% 14% 10% 17% Source: EIA, Annual Energy Outlook 2011, Adapted from R. Newell presentation Dec Coal Continues to Dominate Generation of Electricity in the U.S.

4 Total Primary Energy Demand in China, 2005 Source: Germanwatch, 2009

5 Source: Energy Information Administration International Energy Outlook Fossil Fuels: 84% Global Energy Demand Per Year (Quadrillion Btu) Fossil Fuels: 80% By 2030 Fossil Fuels Comprise 80% of Demand World Energy Use by Fuel Type

6 Technology is the Key to Clean Coal Total Emissions Have Declined 77% While Coal-Fueled Electricity Generation has Increased Sources: EPA National Air Pollutant Emission Trends; EIA Annual Energy Review +214% in Coal 6 -85% in SO 2 -67% in NO X

7 Southern Company Transport Gasifier/Selexol CO 2 Capture Total:~$2.9B; DOE: $270M EOR Storage – 3.0 MTPY 582 MWe (net) Southern Company Transport Gasifier/Selexol CO 2 Capture Total:~$2.9B; DOE: $270M EOR Storage – 3.0 MTPY 582 MWe (net) Basin Electric HTC Purenergy Amine Capture Total: $287M; DOE: $100M EOR or Saline Storage – 1.0 MTPY 120 MWe Slipstream Basin Electric HTC Purenergy Amine Capture Total: $287M; DOE: $100M EOR or Saline Storage – 1.0 MTPY 120 MWe Slipstream HECA GE Gasifier/Rectisol CO 2 Capture Total:~$2.8B; DOE: $408M EOR Storage – 2.0 MTPY 250 MWe (net) HECA GE Gasifier/Rectisol CO 2 Capture Total:~$2.8B; DOE: $408M EOR Storage – 2.0 MTPY 250 MWe (net) Summit TX Clean Energy Siemens Gasifier/Selexol CO 2 capture Total:~$1.7B; DOE: $450M EOR Storage – 3.0 MTPY 270 MWe (net) Summit TX Clean Energy Siemens Gasifier/Selexol CO 2 capture Total:~$1.7B; DOE: $450M EOR Storage – 3.0 MTPY 270 MWe (net) AEP Alstom Chilled Ammonia Total: $668M; DOE: $334M SalineStorage – 1.5 MTPY 235 MWe Slipstream AEP Alstom Chilled Ammonia Total: $668M; DOE: $334M SalineStorage – 1.5 MTPY 235 MWe Slipstream NRG Fluor Econamine FG Plus SM Total: $334M; DOE: $167M EOR Storage – 0.4MTPY 60 MWe Slipstream NRG Fluor Econamine FG Plus SM Total: $334M; DOE: $167M EOR Storage – 0.4MTPY 60 MWe Slipstream FutureGen B&W Oxy-Combustion DOE: $1.048B Saline Storage – 1.0 MTPY 200 MWe (gross) FutureGen B&W Oxy-Combustion DOE: $1.048B Saline Storage – 1.0 MTPY 200 MWe (gross) Archer Daniels Midland Industrial Power & Ethanol DOW Alstom Amine Total: $208M; DOE: $141M Saline, 1 MTPY Archer Daniels Midland Industrial Power & Ethanol DOW Alstom Amine Total: $208M; DOE: $141M Saline, 1 MTPY Air Products SMR H2 Production, VPSA Total: $431M; DOE: $284M EOR, 1 MTPY Air Products SMR H2 Production, VPSA Total: $431M; DOE: $284M EOR, 1 MTPY Leucadia Energy Methanol, Rectisol Total: $436M; DOE: $261M EOR, 4.5 MTPY Leucadia Energy Methanol, 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 Facility 1,300 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% CO 2 capture rate Sequestration: Deep saline formation storage ~100,000 tons CO 2 per year ~1.5 miles below the plant surface First CO 2 Capture: September 1, 2009 First CO 2 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% CO 2 capture rate Sequestration: Battelle is Storage Contractor Deep saline reservoirs ~1,500,000 tons CO 2 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 Project 1,300 MWe Mountaineer Plant, New Haven, WV

10 GreenGen: China’s First IGCC Project CCS staged with increasing levels of capture Source: Harvard University, February 2009

11 China Forging Ahead with Carbon Capture A 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 MOU CCS 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 CO 2 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