The C8 Meeting: A Conversation about Clean Coal, Climate Change, Carbon Capture, and China CCS Deployment and Status Update: the U.S. and Globally Michael E. Moore Vice President External Affairs and Business Development Blue Source LLC Executive Director – NACCSA Washington, DC February 13 th, 2011

Global CCS Projects

European CCS Projects

North America CCS Projects

480,000 Miles of Natural Gas and HL Pipelines 7

~400 Lower 48 Gas Storage Facilities 8

Current CO 2 Pipeline Network 9

INGAA High EOR CO 2 Pipelines CARBON SEQUESTRATION & STORAGE: DEVELOPING A TRANSPORTATIONINFRASTRUCTURE Prepared for The INGAA Foundation, Inc. by:ICF International Feb

11 Integrating CO 2 Capture and Storage Using CO 2 -EOR The 27 states with light shading offer CO 2 storage capacity with EOR. The states with the dark purple outline are within the Ohio River Valley (ECAR) region. Total and captured CO 2 emissions* from coal-fired power plants in 30 years (Gt). CO 2 storage capacity provided by “traditional” CO 2 -EOR (Gt) in each market region. CO 2 storage capacity (Gt) provided by EOR in the Residual Oil Zone in the Permian Basin. 6.4 With three long distance (800 mile), large capacity (5 Bcfd) pipelines, plus shorter distance CO 2 distribution lines, CO 2 -EOR could store all of the CO 2 captured in 30 years from Ohio River Valley (ECAR) coal-fired power plants *Captured CO 2 assumes retirement of inefficient coal-fired capacity equal to 1/3 of today’s CO 2 emissions and 90% CO 2 capture from the remaining coal-fired plants to to 18 Source: Advanced Resources Int’l (2010).

Texas Offshore Repository The three-year project $6 million in grants National Energy Technology Laboratory and the Texas General Land Office. To identify state-owned areas underlying the Gulf where CO 2 can be stored safely and economically. Gulf of Mexico Miocene CO 2 Site Characterization Mega Transect, the effort is focused specifically on the geologic potential of Miocene age rocks of Texas State Submerged Lands to store CO 2 for geologically significant periods of time.

States with CCS & GS Actions Current or Pending Texas Wyoming Kansas New Mexico Oklahoma Montana Pennsylvania Indiana Kentucky New York Washington Louisiana Michigan Mississippi North Dakota West Virginia Illinois Ohio Alabama South Carolina

Market Mechanisms California under AB 32 Cap and Trade Program Regional Greenhouse Gas Initiative State RPS programs Federal CES? Voluntary reductions/Offsets Commodity value of CO 2 from EOR and beneficial uses Tax credits, grants and loan guarantees

US CCS Deployment Overview US-ten large scale CCS/ICCS projects in various stages of deployment, supportive funding in place Extensive research coming in on geologic storage and capacity Extensive Federal regulatory work per GHG’s and storage set Extensive policy work has taken place per GHG’s—depends on political will to advance Pipeline and compression infrastructure well understood – research on improved technology and compression efficiency underway Extensive research work coming in on capture technologies--Base technologies well understood—work on developing energy efficient and cost effective processes underway Siting, permitting and construction well understood CCS protocols and methodology for accounting and sequestration under development – to be released 2 nd qtr 2011 Policy work on storage stewardship and liability-Federal and State at various stages—show stopper if not developed Land use, ownership and mineral rights well understood, pore space use and ownership getting better definition state by state US CCS deployment ultimately depends on public acceptance, political will and the public’s willingness to absorb the costs

Questions & Thank You! Michael E. Moore VP External Affairs and Business Development CCS Blue Source LLC Executive Director and Founding Board of Directors Member North American Carbon Capture Storage Association VP and Founding Board of Directors Member Texas Carbon Capture Storage Association Tel:

Resources CSLF Technology Roadmap: s/CSLF_Technology_Roadmap_2010.pdf s/CSLF_Technology_Roadmap_2010.pdf DOE/NETL Carbon Dioxide Capture and Storage RD&D Roadmap: eq/refshelf/CCSRoadmap.pdf eq/refshelf/CCSRoadmap.pdf GCCSI Strategic Analysis of the Global Status of Carbon Capture and Storage: files/Report%201- Status%20of%20Carbon%20Capture%20and%20S torage%20Projects%20Globally_2.pdf files/Report%201- Status%20of%20Carbon%20Capture%20and%20S torage%20Projects%20Globally_2.pdf

Resources IOGCC CO2 Pipeline Study: TTF%20Final%20Report% pdf TTF%20Final%20Report% pdf DOE/NETL 2010 Carbon Sequestration Atlas of the United States and Canada – Third Edition (Atlas III) : shelf/atlasIII/index.html shelf/atlasIII/index.html CCS REG: mary_R1.pdfhttp:// mary_R1.pdf Sources and Sinks location: shelf/atlasIII/2010AtlasIII_Intro-National.pdf shelf/atlasIII/2010AtlasIII_Intro-National.pdf