1. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no “A Logistic and Economic Perspective on Delivering CO2 for EOR Projects in the North Sea” Presentation by Carl-W. Hustad, CEO CO2 - Norway AS, Kongsberg ________________________ “Session I2 - Transmission of CO2” Seventh International Conference on GHG Control Technologies 10:40 – 12:20 September 08, 2004

2. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no North Dakota Wyoming Colorado Arizona Oklahoma Louisiana Mississippi Bravo Dome Texas New Mexico McElmo Dome St. John Dome Sheep Montain Jackson Dome Gas Plants Ammonia Plant Coal Gasification CO2-Sources Natural Industrial Pipelines California LaBarge Utah Permian Basin An Established CO2 Value Chain

3. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no Permian Basin Denver City CO2 Hub  CO2-floods in the Permian Basin (PB) increased from <10 in 1982 to +60 in 2003.  More than half of world's CO2- floods are located in Texas.  Oil production from CO2-EOR in PB is currently 165,000 bbl oil per day with 25 mtCO2 being injected per annum. Terrell Plant Grey Ranch Plant Mitchell Plant Puckett Plant CRC Pipeline McElmo Dome Sheep Mountain Bravo Dome McCamey Denver City 0204060 Miles Texas New Mexico Val Verde Slaughter Waddell Sandhills Elmar Keystone N. Dollarhide S. Cowdan Welch Dora Roberts Mc Elroy SACROC Salt Creek Yates Central Basin Pipeline Termination of the CRC Pipeline into SACROC.

4. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no CO2 for EOR in North Sea Potential delivery of CO2 for EOR through infrastructure at cost of < $35 /tCO2. Screening of the most mature EOR fields indicates poten- tial of > 30 mtCO2/yr for +20 year period. A combination of pipelines and ship transportation enhances flexibility and economics for initial EOR projects. † Designated fields are “potential” CO2-floods. Tampen Gullfaks Area Brent Ekofisk Grane Brage Dan/Gorm Ninian Forties Fulmar Claymore Draugen Herøya Snøhvit CO2-sources Potential CO2 for EOR fields Kårstø CO2-hub Mongstad Sleipner Brae Brunsbüttel Antwerp Billingham Pernis Esbjerg CO2-hub

5. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no Possible Dutch Project (?) CO2 Pipeline Infrastructure

6. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no Esbjerg Coal Power Plant.... with CO2-Capture CO2-Emission reduced by 90 % CO2-Emission reduced by 90 % SO2-Emission capture is 99,9 % SO2-Emission capture is 99,9 % NOx-Emissions reduced by 5 % NOx-Emissions reduced by 5 %

7. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no Completed 37 full power tests. Operated continuously to the limit of test facility (  3 min). Accumulated total of 664 seconds test time. Operated at 75-110 bar. Steam/CO2 gas generated at temperatures of 315 - 870 °C. Produces ~22,725 kg gas/hr. Operates at ~18.5 MW t LHV Clean Energy Systems Inc. Gas Generator Test 1Q-2003 Video clip showing Gas Generator in test cell enclosure. Not available on downloaded version of this presentation.

8. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no CES 5 MW Test Facility at Kimberlina, nr. Bakersfield

9. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no Zero Emission Norwegian Gas ZENG Program Oct 2003 - 2008 40 MW Pilot & Demonstration Plant located near Stavanger. Phase-1 “Concept & Feasibility Study” was completed August 2004. Project participants are Lyse Energi, Energiparken Sweco-Grøner, DNV, Nebb Engineering, CES, Klimatek + US-DOE. Phase-2 “Pre-Eng. & Qualification” scheduled to start during 4Q-2004. (Budget $2.5 million).

10. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no CO2 compression & drying in 4 stages “Base Case” 40 MW Demo Plant at the Energy Park, Risavika ASU 6.3 MW ~ HP Fuel @ 94 bar (1.7 kg/s) Air GG ~ RH LP Fuel @ 30 bar (0.45 kg/s) GO 2 @ 30 bar (8.0 kg/s) HP 8.8 MW IP 26.2 MW + LP 11.8 MW Nitrogen @ 6 bar (8.0 kg/s) TX 2.9 MW Gear Box Nitrogen Turbo Expander Power Balance: Thermal Input (LHV)= 99.3 MW Gross Power Produced= 49.6 MW Balance of Plant = 9.6 MW Net Export Power= 40.0 MW Plant Efficiency= 40.3% T=565°C @ 83 bar T=396°C @ 26 bar (29.7 kg/s) T=705°C @ 26 bar (32.2 kg/s) T=40°C @ 0.08 bar T=47°C @ 94 bar (22.1 kg/s) T=22°C @ 7.5 bar (5.8 kg/s) CO2 is chilled prior to storage and ship transportation of ~170,000 tCO2/yr. 1.9 MW 0.7 MW Cooling water flow=3,400 m³/hr with  T=16ºC 0.3 MW CO2/H2O T=30°C (9.5 kg/s) 0.4 MW Nitrogen to Stack (18.0 kg/s) Nitrogen to Stack (8.0 kg/s) 2.8 MWe 46.8 MWe Excess water @ 2 bar (4.3 kg/s) T=790°C

11. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no CO2-Floods in the North Sea Opportunity for Ships Transportation?

12. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no CO2-Floods in the North Sea Opportunity for FPSO? There are perceived to be extensive opportunities for implementation of new cost-saving technologies in conjunction with developing CO2-EOR in the North Sea. These should subsequently have a substantial export potential to other offshore regions like the Gulf of Mexico.

13. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no CO2-Floods in the North Sea Opportunity for Subsea completion? Above image from front cover of report entitled “CO2 as injection gas for EOR and estimation of the potential on the Norwegian Continental Shelf”, Norwegian Petroleum Directorate, 2003. Above image courtesy of Norsk Hydro ASA

14. Source: CO2 - Norway AS A company focused on developing projects, technology and commercial solutions to mitigate CO2-emissions into the atmosphere. www.co2.no The CO2-Arena Climate-change and CO2 are together genuine 21 st century “transdisciplinary” and “multicultural” problems that will necessitate a holistic approach requiring understanding of parallel developments in multiple arena’s. POLITICS INDUSTRY FINANCE STAKE- HOLDERS CLIMATE CHANGE Technology Legislation Trading Mechanisms Communication Engineering Education Commercial Incentives Fiscal Incentives Investor motivation Social awareness