1. Carbon Sequestration A Strategic Element in Clean Coal Technology Presentation to: Mid-America Regulatory Conference (MARC) Columbus, Ohio, June 20, 2006 By David A. Ball, Program Manager, Battelle Manager, Midwest Regional Carbon Sequestration Partnership

2. Fossil fuels will likely remain the backbone of our global energy system 285 ppm 311 ppm 296 ppm 374 ppm 509 ppm 744 ppm Today Fossil Fuels

3. Using the 7-state MRCSP region as an example of the Midwest, coal fired power generation is the major source of CO 2 ~300 Large Stationary Sources (>100,000 tonnes/year) ~800 Million tonnes CO 2 /year ~300 Large Stationary Sources (>100,000 tonnes/year) ~800 Million tonnes CO 2 /year Stationary Sources Power Generation Coal Fired Power (78%) Nuclear Distributed Sources

4. Carbon Sequestration is an important strategic element to retaining the use of coal in a carbon constrained world COAL No Sequestration With Sequestration Preserves energy and security benefits of fossil fuels. Lowers the net cost of energy and reduces the net cost of achieving stabilization by $ trillions. Use of coal increases. Without Sequestration Economic forces push fossil fuels out of the market. Higher energy prices. Use of coal (and other fossil fuels) declines or disappears. The long term goal is to reduce CO2 emissions to stabilize atmospheric concentrations of CO2

5. What is carbon sequestration? Improved land management practices that enhance assimilation of CO 2 from the atmosphere by plants and conversion of it to carbon for permanent storage in soils and crops. Capture of CO 2 from power plant and other stacks followed by injection and permanent storage in various geologic formations CO 2 Capture and Geologic Storage Terrestrial Sequestration Figure courtesy of Peter Cook, CO2CRC

6. Terrestrial Sequestration – An Example Replace this With this Conventional Tillage No Till

7. CO2 Capture and Geologic Storage The cost of CO2 separation (capture) is a major portion of the overall cost of CCS. More than one injector well will likely be needed. Some form of pipeline or distribution system will likely be needed.

8. Seven Regional Partnerships have been organized under DOE’s auspices across the U.S. Geological field test Terrestrial field test PCOR Big Sky Southwest WESTCARB Southeast MRCSP MGSC Phase II Field Validation Tests

9. Industry participation in the carbon partnerships is extensive (MRCSP as an example)

10. Some electric utilities are already taking a first step to evaluate CCS CO 2 injection well at AEP’s Mountaineer power plant. The first ever CO 2 injection well at a coal fired power plant

11. CCS Deployment by Electric Utilities: IGCC+CCS a key to decarbonizing baseload power 2045 2005 Conventional PC plants are predominant today Assumptions: Increasing prices for natural gas Hypothetical binding greenhouse gas control policy IGCC + CCS becomes predominant – plant siting criteria will include: Geological reservoir capacity and life Injectivity

12. FutureGen – The Coal Fired Power Plant of the Future? Integrated Gasification Combined Cycle (IGCC) plus CCS Potential for high efficiency and near zero emissions (including CO 2 )

13. The potential future deployment of CCS technologies could be massive 2020 2035 2050 WRE450 WRE550 1000s of power plants and industrial facilities 1000s of miles of dedicated CO2 pipelines 100s of million tons of CO2 injected annually into the subsurface It is difficult to imagine how prices for CO2 (i.e. buyers willing to pay for pipeline quality CO2) can be sustained

14. Take Home Messages The overwhelming criteria for siting a CCS-enabled power plant will relate to things like injectivities and total reservoir capacity and not whether there is “buyer for CO 2 ” Deep saline formations will be the workhorse for the USA and many other countries. Within the utility sector, CCS is most economically deployed for base load. CCS must be integrated with large coal-fired electricity and H 2 production to make a large contribution to addressing climate change. Multiple large-scale field experiments, in different sinks and from different sources, need to go forward now (FutureGen is just ONE and not enough).

15. Take Home Messages No one has ever attempted to determine what it means to store 100% of a large power plant’s emissions for 50+ years. –How many injector wells will be needed? How close can they be to each other? –Can the same injector wells be used for 50+ years? –What measurement, monitoring and verification (MMV) “technology suites” should be used and does the suite vary with time? –How long should post injection monitoring last? –Who will regulate CO 2 storage on a day-to-day basis? What criteria and metrics will this regulator use? Regulatory Issues: –Who will assume the liability for the stored CO 2 ? –How will CO 2 injection wells be permitted (Class I, Class V, New Class)? –Rights of way for CO 2 transport: How will these be regulated? –Public Acceptance –How will the public accept the geologic storage of massive amounts of CO 2 ?