1. FutureGen FutureGen Initiative Pathway to Near-Zero Emissions Federal Laboratory Consortium Mid-Atlantic Regional Meeting Rocky Gap, MD September 20, 2006 Thomas A. Sarkus, FutureGen Project Director National Energy Technology Laboratory

2. 8/06 Energy = Quality of Life Poverty Reduces Global Security World Resources Institute Database, accessed June 1, 2005 http://earthtrends.wri.org/searchable_db/ Affluence Poverty Eritrea Congo Peru Bulgaria South Africa Mexico UK Bahrain U.S. Qatar GDP per Capita ($ / person / yr) Annual Energy Consumption per Capita (kgoe / person / yr)

3. 8/06 Coal-fired generation and GDP have grown at nearly the exact same pace over last 30 years Coal Use Linked to Economic Growth GDP: U.S. DOC, Bureau of Economic Analysis Energy & Electricity: EIA, Annual Energy Review 2003 Electricity Generation Total Energy Consumption GDP Coal-Fired Generation

4. 8/06 Coal Use Translates to Reliable, Affordable Electricity 8.6¢ 29% 6.6¢ 56% 5.6 94% 5.8¢ 4% 5.4¢ 66% 5.1¢ 95% 7.3¢ 74% 6.3¢ 1% 6.3¢ 84% 7.2¢ 88% 8.3¢ 53% 10.6¢ 1% 5.7¢ 95% 6.5¢ 6% 8.1¢ 39% 6.3¢ 77% 6.2¢ 69% 6¢ 55% 5.7¢ 83% 6.6¢ 44% 7.5¢ 41% 7.1¢ 79% 5.7¢ 45% 7.1¢ 22% 7.2¢ 56% 5.7¢ 94% 6.8¢ 86% 9.8¢ 2% 11.9¢ 11% 7.0¢ 37% 5.9¢ 56% 6.9¢ 68% 6.4¢ 47% 4.6¢ 90% 6.5¢ 46% 8.0¢ 54% 5.2¢ 98% 7.1¢ 57% 6.1¢ 68% 4.9¢ 0% 11.3¢ 10% 16.7¢ 15% NH12.1¢ 9% RI11.1¢ 0% CT11.6¢12% NJ 9.8¢14% MA11.6¢25% VT11.1¢ 0% DE 7.0¢74% MD 7.2¢51% ¢ = Average Retail Price Per Kilowatt Hour % = Percent of Total Generation From Coal <6.5¢ 6.6¢ - 8.9¢ >9¢ Hydro DOE/EIA Table 5.6B, 2005 data, average retail price of electricity Tables 1.6.A and 1.7.A, percent of total generation from coal Updated August 2006

5. 8/06 Air Emission Trends and Projections Annual U.S. Air Emissions and Coal Use Coal Use NO x SO 2 Mercury Coal Use, NO x and SO 2 Emissions (Index: 1970 = 1) Mercury Emissions (tons) Historical data (1970–2000): Coal consumption and electricity generation per DOE EIA, AER 2003 NO x and SO 2 per EPA Air Trends Report: http://www.epa.gov/air/airtrenda/econ-emissions.html Projected data (2003–2020): Coal consumption and electricity generation per DOE EIA, AEO 2005 NO x and SO 2 per EPA projections under CAIR: http://www.epa.gov/interstateairquality/charts.html Mercury per EPA Clean Air Mercury Rule

6. 8/06 Evolution of Coal-Fired Power Plants

7. 8/06 FutureGen FutureGen Objectives Pioneer advanced hydrogen production from coal Emit virtually no air pollutants Capture and permanently sequester carbon dioxide Integrate operations at full- scale – a key step to proving feasibility World’s first near zero-emission, coal-based power plant to:

8. 8/06 FutureGen FutureGen Concept Geological Sequestration CO 2

9. 8/06 FutureGen Will Build Upon Experience from Commercial-Scale Coal-Based IGCC Power Plants Wabash River  W. Terre Haute, IN  Operations began 11/95  1996 Powerplant Award  296 MWe (gross); 262 MWe (net) Tampa Electric  Mulberry, FL  Operations began 9/96  1997 Powerplant Award  315 MWe (gross); 250 MWe (net)

10. 8/06 FutureGen FutureGen Will Build on Two Non-Integrated One Million TPY CO 2 Sequestration Projects Weyburn CO 2 EOR Project  Pan Canadian Resources  200-mile CO 2 pipeline from Dakota Gasification Plant  Enhanced Oil Recovery in Canada over 20 years Sleipner North Sea Project  Statoil  CO 2 sequestered (1996-2000)  Currently monitoring CO 2 migration  Separates CO 2 from natural gas  $36–50 / tonne CO 2 tax

11. 8/06  Thousands of Years of Storage Capacity  Coal Seams and Shales: ~ 18 GT  Oil and Gas Reservoirs: ~27 GT  Saline Formations: ~6,700 GT  Value Added Products in Potential Sinks  Oil: 16 billion barrels of oil during sequestration in favorable fields  Coal Seams: 126 TCF CBM during sequestration in unmineable coal seams  Carbon Sequestration Atlas for the U.S.  NATCARB & Regional Atlases Available Online  www.natcarb.org Geologic Carbon Sequestration

12. 8/06 FutureGen Cutting-Edge Candidate R&D Technologies for FutureGen Traditional TechnologyResearch Invention Examples Commercial Gasifier       Advanced Transport Reactor Cryogenic Air Separation      O 2 Membranes Gas Stream Clean-Up       Raw Gas Shift Reactor Amine Scrubbers        H 2 Membranes, “Clathrate” CO 2 Syngas Turbine        Ultra-Low NO x Hydrogen Turbine Fuel Cell ($4,000/kW)       SECA Fuel Cell ($400/kW Design) EOR Based         Sequestration Technology Plant Controls        “Smart” Dynamic Plant Controls & CO 2 Management Systems System Integration       “First of a Kind” System Integration

13. 8/06 FutureGen FutureGen Industrial Alliance, Inc. Signed Cooperative Agreement with DOE on Dec. 2, 2005  American Electric Power  AngloAmerican  BHP Billiton  China Huaneng Group  CONSOL Energy  Foundation Coal  Peabody Energy  PPL  Rio Tinto Energy America  Southern Company

14. 8/06 FutureGen FutureGen Project Schedule BP- 0 BP- 4 BP- 3BP- 2BP- 1 BP- 5 Dec. 2, 2005 Jan 31, 2007 January 2008 Construction Start July 2009 Operations Start July 2012 July 2016 July 2018 Siting, NEPA, and Permitting Project Structuring & Conceptual Design Phase 2 Cooperative Agreement Negotiations Preliminary Design Final Design Facilities Construction Plant Start-Up & Shakedown Initial Full Scale Plant OperationsFull Scale Plant Operation Continues Site Monitoring Limited Cooperative Agreement Awarded Full Scope Cooperative Agreement Awarded NEPA ROD July 2007 Final Site Selection Long Lead Time Orders September, 2007

15. 8/06 FutureGen FutureGen Funds / Estimated Costs Cost Elements$ Million Plant Definition, Baselining & NEPA81 Plant Procurement & Construction480 Shakedown & Full-Scale Operation188 Sequestration (Design & Construction)191 Site Monitoring10 TOTAL$950 DOE Industry International 620 250 80

16. 8/06 FutureGen Status  Industry-led cooperative project with government oversight & international participation  Industry will choose project site, backbone technologies, etc.  DOE has invited other nations to join FutureGen  Gov’ts of India & South Korea have each pledged $10 Million Odessa Brazos Texas Tuscola Mattoon Illinois

17. 8/06 Carbon Sequestration Leadership Forum FutureGen  Forum for planning international multi-lateral sequestration projects including FutureGen  Ministerial-level representatives  Charter for R&D cooperation signed June 25, 2003  Australia, Brazil, Canada, China, Colombia, Denmark, European Commission, France, Germany, India, Italy, Japan, Korea, Mexico, Netherlands, Norway, Russia, Saudi Arabia, South Africa, United Kingdom & United States Benefits of international Involvement in Future Gen  Enrich intellectual talent pool  Maximize global applicability and acceptance  Leverage funds  Help build consensus on climate change Benefits of international Involvement in Future Gen  Enrich intellectual talent pool  Maximize global applicability and acceptance  Leverage funds  Help build consensus on climate change

18. 8/06 Questions/Discussion