A brief overview of the cost drivers for CO2 capture from coal power plants and what can be done to decrease those costs.

1. Key Cost and Performance Drivers for CO 2 Capture and Storage Technology Dr. Jeff Phillips (jphillip@epri.com) Senior Program Manager Advanced Generation Austin, Texas February 17, 2010

2. Thought Experiment: If we could develop CO 2 Capture and Storage Technology that had no capital costs and no operating and maintenance costs beyond the loss in power output from current technology, what would be its impact on the cost of generating electricity?

3. Impact of “no cost” CCS on coal plant economics (assumptions listed at end of presentation) $0 $0 Non-fuel operating costs for CCS system $92/MWhr (9.2 cents per kWhr) $66/MWhr (6.6 cents per kWhr) Price needed for electricity to cover all costs $126 million $126 million Fuel Cost for 7000 hours of operation $2.65 billion $2.65 billion Installed Cost 720 MW 1000 MW Net Power Output With CCS, at no additional capital or operating cost No CCS

4. Thought Experiment: Now let’s look at the impact on cost of today’s CO2 capture and storage technology including the additional equipment, operational and maintenance costs.

5. Impact of full cost CCS on coal plant economics (assumptions listed at end of presentation) $117/MWhr (11.7 cents per kWhr) $66/MWhr (6.6 cents per kWhr) Price needed for electricity to cover all costs $71 million $0 Non-fuel operating costs for CCS system $126 million $126 million Fuel Cost for 7000 hours of operation $3.19 billion $2.65 billion Installed Cost 720 MW 1000 MW Net Power Output With “full cost” CCS No CCS

6. CCS Economics Summary $117/MWhr (77%) Electricity price with CCS +$15/MWhr (23%) Impact of capital cost & maintenance of CCS equipment +$10/MWhr (15%) Impact of CO 2 transportation and storage cost (assumes $10/tonne cost) +$26/MWhr ( 39% of base ) Impact of Power Loss due to CCS $66/MWhr Electricity price without CCS

9. Together…Shaping the Future of Electricity