1. 10 th June 2008 Petcoke at Drax Power Station By Ian Wright Houston

2. [Petcoke at Drax Power Station] Drax Power Limited2 Introduction to Drax Power Station ► Drax Power Station is the largest, cleanest and most efficient coal fired power station in Western Europe ► The generating capacity of the station is 4,000MW. It provides approx. 7% of the UK’s electricity needs. ► Drax currently burns 10mt coal per year. This is made up of 50% indigenous coal and 50% imported coal (including petcoke). ► Flue Gas Desulphurisation fitted on all Units. ► We have the lowest emissions per MW of all UK Coal Fired Power Stations.

3. [Petcoke at Drax Power Station] Drax Power Limited3 History of Drax ► Built in two phases : Three Units Commissioned in the mid 70’s and the other three Units Commissioned in the mid 80’s ► Government owned up to 1990 ► Privatised in 1990 – owned by National Power ► AES took over in 1999 ► Became an Independent Utility in 2003 ► Now a listed company on the London Stock Exchange: Drax Group plc

4. [Petcoke at Drax Power Station] Drax Power Limited4 Drax and the UK EA Constraints ► We operate to UK and EU Laws on emissions and our government are committed to Kyoto protocol on CO2 reduction. ► We are restricted on SOx, NOx, CO2, particulates, metal emissions, to air, water and land. ► In 2008 the Large Combustion Plant Directive (LCPD) was implemented – tighter emission limits on NOx and SOx

5. [Petcoke at Drax Power Station] Drax Power Limited5 Coal Consumption - 2007

6. [Petcoke at Drax Power Station] Drax Power Limited6 Where we are located. ► Full width text page Drax Power Station

7. [Petcoke at Drax Power Station] Drax Power Limited7 Port Capacity in the UK IMMINGHAM 2mt per year with an option of an additional 1mt PORT OF TYNE 1mt per year. HULL 750kt per year

8. [Petcoke at Drax Power Station] Drax Power Limited8 PETCOKE BLENDING BUNKER MILL BOILER FURNACE CONVEYOR Coal Petcoke/coal Blending Plant Underground hoppers Weigher

9. [Petcoke at Drax Power Station] Drax Power Limited9 Alternative Fuels ► Plan is to burn up to 15% of Biomass by 2010 1. Wood Pellets 2. Sunflower Pellets ► Authorised to burn up to 600kt of Petcoke ► 2007 consumption - 140kt ► 2008 consumption - approx 280kt ► 2009 consumption - 400kt ?

10. [Petcoke at Drax Power Station] Drax Power Limited10 Petcoke ► Fully authorised to burn Petcoke commercially across all Units up to 600kt per year. ► The throughput will be dependant on the price relative to Coal. ► Looking for a locked in price differential against API 2. ► Petcoke: ► Up to 7% sulphur ► Vanadium less than 1250ppm ► Nickel less than 270ppm

11. [Petcoke at Drax Power Station] Drax Power Limited11 Additional Costs when burning Petcoke ? ► Shipping Costs ► Smaller vessels ► Lower Bulk Density material ► UK Transport Costs ► Less tonnage per train ► Higher Sulphur Material ► Increase in FGD costs ► Works power ► Limestone ► Gypsum Handling ► Uses up potential saleable sulphur credits ► Ash Quality ► Higher Carbon In Ash ► Lower revenue ► Emissions‘ ► Higher Sulphur ► NOx ?

12. [Petcoke at Drax Power Station] Drax Power Limited12 Value of Petcoke to Drax ► Commercial advantage over Coal ► Balances against low sulphur Russian Coals ► High CV Compliments Biomass Burn

13. [Petcoke at Drax Power Station] Drax Power Limited13 Drax Power Station Thank You for your attention………