B. Hilton - Alstom CCS Portfolio and Cost Analysis

7/28/2019 B. Hilton - Alstom CCS Portfolio and Cost Analysis

1/43

Robert G. Hilton

June 18. 2013

Alstom CCS Portfolio and CostAnalysis

RECS- Research Experience in

Carbon Sequestration, Birmingham,AL


2/43

ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty isgiven or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical andcommercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure tothird parties, without express written authority, is strictly prohibited.

Equipment & services for powergeneration

Alstom Thermal PowerEquipment & services for rail transport

Alstom Transport

Three main activities in 4 sectors*

Equipment & services for powertransmissionAlstom GridAlstom Renewable Power

* Organisation as of 4 July 2011Alstom CO2 Capture Systems - P 2


3/43


CO2 capture technologiesInitially developed for CCS on Power Generation

Source: Vattenfall

Pre-combustion(New only)

Power Plant with CO2 capture

Post-combustion Oxy-combustion(New + retrofit) (New + retrofit)

Alstom CO2 Capture Systems - P 3

Alstom focuses on post and oxy to also address installedbase


4/43


Technologies developed by Alstom

CO2 capture technologies pursued by Alstom

Post-combustion Oxy-combustion(New + retrofit) (New + retrofit)

Advanced Amines Process Chilled Ammonia Process Oxy-combustion with ASU


Regenerative Calcium Cycle(RCC)

Chemical Looping Combustion(CLC)

2ndGeneration

2ndGeneration


5/43


CO2-EOR

Carbonates

Methanol

Urea

Underground

permanent

Storage

Food industry

CO2capture unit

Industrial fluegas with CO2:

Power Steel mill Cement factory Refinery Methanol

plant, Ethanol plant Fertilizer plant etc

Classic CCS(Saline Aquifers ordepleted Oil & Gasfields)

CCU Chemicalusage

Current prospectsin Fertilizer andcarbonates

CO2-EOR : hugepotential in the USA

CO2 utilizationCaptured CO2 for EOR or Chemical Production

CCU and EOR can stimulate CO2 capture market through valuation of CO2


6/43


Advanced Amine ProcessTechnology Overview

Advantages

Proven in natural gas & syngaspurification

CO2 capture from flue gas is a newapplication

More efficient capture of CO2 and lesssolvent degradation than MEA

Higher tolerance against oxygen & tracecontaminants

Source: Alstom

Principle

An amine based solvent reacts with theCO2 in the flue gas

Raising the temperature reverses thisreaction, the CO2 is released and the

solvent recycled

A strong team to develop a new application



7/43


Pilot CommercialIndustrial / ValidationLarge-scale

demonstration

University of TexasUSA

2007 2009 2011

Advanced Amine ProcessUpdate on Alstom roadmap

Dow Chemical Co.USA - 2MWth, Coal

EdF Le HavreFrance - 5 MWth,Coal

Tests completedIn operation

Moving forward to scale-up the technologyAlstom CO2 Capture Systems - P 7

2020 &

beyond


8/43


9/43


Advanced Amine ProcessC2A2Field Pilot - Le Havre (France)

Designed to capture 25 t CO2/ day,90% CO2 capture

Advanced flow scheme & operationvalidation

Flue gas: slipstream from 600 MWecoal plant (EdF host facility)

French funding by ADEME Project schedule

- Overall 2010-2013 program- Now in commissioning / start-up- Test from Q1 13 to Q1 14 (1

year)


EdF Le Havre coal power plant(field pilot represented in

orange)


10/43


Principle

Ammonium carbonate solution reacts withCO2 of cooled flue gas to form ammoniumbicarbonate

Raising the temperature reverses thisreaction, pressurized CO2 is released, thesolution is recycled

Chilled Ammonia ProcessTechnology Overview

Advantages

High CO2 purity Tolerant to oxygen and flue gas

impurities Stable reagent, no degradation nor

emission of trace contaminants

Low-cost, globally available reagentAlstom CO2 Capture Systems - P 10


11/43


Roadmap to commercialization

Test Rigs ValidationPilots

CommercialIndustrialPilots

Large-scaledemonstration

Alstom

Vaxj

Sweden0.25 MWth

We Energies

Pleasant PrairieUSA - 5 MWth, Coal

EoN KarlshamnSweden - 5 MWth, Oil

AEP MountaineerUSA - 58 MWth, Coal

TCM MongstadNorway - 40 MWth, Gas

Getica Turceni FeasibilityRomania - >250 MWe net, Lignite

2006 2008 2009

Testssuc

cessful

Tests completed Key TargetsIn Operation

Chilled Ammonia ProcessUpdate on Alstom roadmap

CO2 Capture Mongstad (CCM)Norway- 280 MWe + 350 MWth,CCPP


2020 &beyond


12/43


Chilled Ammonia ProcessWe Energies Field Pilot Pleasant Prairie (WI, USA)

Operational June 2008 Oct 2009 7700+ hours of operation on flue gas

from PRB Coal through completion ofprogram in Oct 2009

Proof of Concept technology validation:90% CO2 capture efficiencyNH3 slip from DCC2 (~5 ppm)99+% CO2 purity; >10 ppm NH3;

>2,000 ppm H2O

Functional unit operationsConfirmation of process design toolsConfirmation of equipment design

methodsCO2 Field Pilot at Pleasant

Prairie



13/43


Chilled Ammonia ProcessField Pilot - Karlshamn (Sweden)

Designed to capture over 1,600 kg CO2/hr(~15,000 tonnes/yr at full capacity)

Operational Apr 2009 Test phase completed in 2010 Flue gases from sulfur fuel oil and from gas

combustion tested Located less than 60 miles (90 km) from

Alstoms Global Technology Center in Vaxjo

Proof of Concept technology validation:- 90% CO2 capture efficiency- NH

3slip from DCC2 (~5 ppm)

- 99+% CO2 purity;


14/43


Designed to capture & store 100,000 tCO2/year Commenced engineering and permitting Oct07 First CO2 captured in Sept 09, Captured CO2 sequestered into through two wells on

the plant property, first injection started 1st of

October 2009Alstom responsible for CAP island (others by AEP) Test completed and succesful:

Approx 52000 tons of CO2 capturedApprox 37000 tons of CO2 storedCO2 product quality : 99.94%Capture rate: 90% validatedLow ammonia emissions observed

Chilled Ammonia ProcessValidation Pilot - AEP Mountaineer (WV, USA)

Alstoms Chilled Ammonia Process atAEPs PPTests completed - Technology validated Ready for scale-up



15/43


Chilled Ammonia ProcessDemonstration project at Turceni

Integrated CCS demo: 1.5 Mtpa CO2 Capture: 85% minimum capture Transport: onshore pipeline Storage: deep saline aquifers (>800m) within

a radius of 50 km

Developers-Operators: Capture: Turceni Energy Complex Transport: Transgaz Storage: Romgaz

Technical Consortium: Project Management and Technical &

Financial Consultant: ISPE (Institute forStudies and Power Engineering)

Capture Plant: Alstom Storage: GeoEcoMar, Schlumberger

Alstom feasibility study completedTurceni Power Plant4x330 MW



16/43


16

LTS USC PC Power Plant with CAP PCCPlot Plan

LTS CAP PCC Plant Area

CO2 RegenerationArea

Back-PressureTurbine

EvaporativeCondenser

Flue Gas Cooling &CO2 AbsorptionArea

CO2 Compression


17/43


CCS on GasPost-combustion CO2 Capture solution for Combined Cycles

Gas-fired power plants with CCS - 6/27/13 - P 17


18/43


European CO2 Technology Centre Mongstad(TCM)

Flue gases from natural gas-fired CCPP anda catalytic cracker (refinery)

Designed to capture 80 000 tons CO2/year Cold commissioning initiated on some

systems that are mechanically complete

Currently in commissioning / start-up phase

CCS DevelopmentsCAP on Gas Validation Pilot Mongstadt, Norway 54 MWth


Post-combustion CO2 capture (Chilled Ammonia) technology

validation on-going for application to gas-fired power plants


19/43


European CO2 Technology Centre Mongstad NorwayChilled Ammonia Process

Unique Validation Features / Expectations Main validation facility for CO2 Capture

Mongstad

CO2 Sources: Flue gases from natural gas CHP plant Off-gases from the RCC

Validation plant, designed to capture: 80 ktons CO2/year (RCC) & 22 ktons CO2/year

(CHP)

First CAP pilot on industrial source Incorporation of know how from previous pilots Compact and efficient layout (1300 m2) Commissioning performed Testing on-going

Mongstad supports CAP validation on gas & industrialAlstom CO2 Capture Systems - P 19


20/43


Conservative assumption based on today's CCStechnology and fully independent, not integrated auxiliary

system

Power Island

Additional cooling towers for CCS plant

Cooler / Blower

CO2 Capture Plant

ColumnAbsorption

ColumnRegeneration

FGR loop

CCS on GasCapture Ready: KA26 plant arrangement example



21/43


Oxy-Combustion ProcessTechnology Overview

Advantages ReliabilityAdaptable to all boiler types and fuels Rapid scale-up to 1,000 MWe range Offers options for operational

flexibility Retrofit in Oxy can be addressed Higher efficiency with supercritical/

ultra-supercritical cycles

Principle

Fuel is burned in a mixture of oxygen and re-circulated flue-gas. Due to the absenceof Nitrogen, the resulting flue gas is enriched in CO2

After water condensing and further purification, CO2 is compressed and send tostorage


A robust and competitive solution


22/43


Moving forward to scale-up the technology

Oxy-Combustion ProcessUpdate on Alstom roadmap


Targeted

Commercial

2020 &beyond

White Rose 426MWe g - Selby(UK)

1990s

R&D and Labscale Large scaledemonstration

Inoperation

Alstom BSFUSA - 15 MWth,

VattenfallSchwarze PumpeGermany - 30 MWth,

Total LacqFrance - 30 MWth,

GPU mobile pilot

Pilots

2008 2012


23/43


(source: Vattenfall)Schwarze Pumpe Pilot

Oxy-Combustion ProcessVattenfall Schwarze Pumpe 30 MWth pilot

Experience makes successpossible

Objective

Demonstration of the technology pathat pilot scale

Alstom-Scope

Oxy-boiler, ESP and othercomponents

Technology Partnership withVattenfall

Status of Operation Start of operation: Sept 2008 Test with Alstom Burners completed



24/43


Main features

Retrofit to oxy-combustion of a 30 MWthexisting boiler (natural gas)

Located in SW of France Oxy-combustion process started Jul 09 End test expected end 2012 (18 mths

extension of the original programme)

Approx 120,000 t CO2 to be stored in adepleted gas field

ALSTOM scope : Boiler retrofit30 MWt retrofitted Boiler Lacq,

France

(source: Total)

First fully integrated CCS with pipeline transportation &storage

Oxy-Combustion ProcessTOTAL Lacq - 30 MWth Pilot



25/43


15 MWth Boiler SimulationFacility : multi-burner,tangentially-fired

Flexible operatingconditions :Air & oxy-firing, gas recycleconfiguration, oxygeninjection, firing system design

Generation ofdetaileddesign and performance

data : Combustion,emissions, heat transfer, ashdeposition, corrosion;

Project start : 2008,Duration : 5 years

Project Team:Alstom, DOE NETL, ICCI NDIC

Utility Advisory Group :

Oxy-Combustion ProcessAlstom Windsor 15 MW Pilot



26/43


Oxy-Combustion ProcessGPU Pilot Tests in Alstoms CCS test centers

FTIRGas

Analysis

Controlroom

GPU in Windsor

GPU at the CCS test center Vaxjo

PurificationPilot

CompressionPilotVxj (Sweden) : synthetic gas test

program

Drying and cryogenic-purification Behaviour of SOx and NOx during

compression Dryer operation and desiccant and

regeneration

Mobile GPU Pilot in operation since2011

Windsor (CT-US) : coal & synthetic flue gastests

Drying, Ash, Hg and other heavy metals,VOC and cryogenic-purification

Behaviour of SOx and NOx duringcompression

Co-adsorption behaviour of SOx and NOx indesiccant and regenerationGPU pilot : an extensive validation programme



27/43


Oxy-Combustion ProcessThe White Rose large scale OXY-Demo project, UK

Largest Oxyfuel CCS Demo

A new modern ultra-supercritical426MWe Gross Oxy-fuel Power Plant

Clean power generation with theentire flue gas treated to capture 2Million t/y CO2

Biomass co-firing option leading tozero (or negative!) CO2 emissions

Anchor project for National Grids(NG) regional CO2 transport &

offshore storage network Project development activities on-

going

Selected as one of the two preferredbidders for a FEED study under theUK CCS competition (1 Billion GBP

funding).

Location: DraxPower Station,

North Yorkshire,UK

Project Promoters

Oxy-fuel Power Plant CO2 Transport& Storage

ALSTOM DRAX NATIONAL GRIDBOC-Linde



28/43


CCS-evaluation of 2nd generation technologiesChemical Looping Combustion (CLC)

A promising breakthrough technology

Advantages

Potential for low CoE and low energypenalty by limiting the cryogenic ASU of 1stgeneration oxy process;

Development from Alstoms CFBexperience.

Principle OPERATION IN OXY-COMBUSTION Combustion occurs in an atmosphere free of nitrogen. In the Air Reactor, a solid carrier

absorbs oxygen from the air and is conveyed to the Fuel Reactor where the oxygen isreleased and combustion with the fuel occurs. Solid carrier is then taken back to the AirReactor, closing the loop.

Oxygen carriers can be metal oxide or limestone-based. Alstom works on both types.

Status 2 pilots in operation :

1 MWt (CLAIR in DarmstadtUniversity-Germany-RFCS funding) 3 MWt (Alstom Lab Windsor CT

sponsored by US DoE)



29/43


CCS-evaluation of 2nd generation technologiesRegenerative Calcium Cycle (RCC)

A new post-combustion system with potential for Power andIndustry

Advantages Promising energy penalty and CoE; RCC produces Power : no loss of net electrical output (value for retrofit and industry) Widely used feedstock, potential synergies with industries like cement).

Principle A POST-COMBUSTION SYSTEM In the Carbonator, CO2 from the flue gas reacts with lime (CaO) forming limestone. In the

Calciner, limestone is converted into lime and CO2, pure CO2 can then be easily captured;

Status 1 pilots in operation : 1 MWt (LISA in Darmstadt University-Germany-RFCS funding)

CARBONATOR

CaO + CO2 CaCO3

CALCINER

CaCO3 CaO + CO2

CO2-lean flue gasPure CO2 +

H2OMake-up CaCO3

(limestone)

Coal

Pure O2

CaOdeactivated lime

CaCO3

CaO

Flue gas from powerplant or industry

Lime is taken back to thecarbonator, closing theloop.



30/43


CompletedTESTS COMPLETE

AEP MountaineerUSA 58 MWthChilled Ammonia, Coal

EoN KarlshamnSweden - 5 MWthChilled Ammonia, Fuel

WE - Energie

USA WI - 5 MWthChilled Ammonia, Coal

DOW Chemical Co.USA, WV

Adv. Amines - Coal

CCS is happening

OPERATING

Vattenfall SchwarzePumpe, Germany30 MWth, Oxy - Lignite

Total LacqFrance - 30 MWthOxy - Gas

Alstom BSF Windsor

US - 15 MWthOxy - Coals

2nd Gen

DOE/Alstom WindsorUS - 3 MWthChemical Looping, Coal

Alstom Labs Vxj

Sweden 0.25 MWthPost C.-multi purpose

RFCS EU - DarmstadtGermany - 1 MWthChemical Looping - Coal

2nd Gen

TCM Mongstad Norway40 MWth, Chilled Ammonia,CHP & Refinery Offgas (RCC)

Alstom GPU Pilot (Mobile)0.3 MWth

OPERATING COMMISSIONING

EDF Le HavreFrance - 5 MWth Adv.

Adv. Amines - Coal

LARGE-SCALE PROJECTS(under development)

White Rose CCS ProjectUK - 426 MWeOxy Hardcoal

CCM Mongstad(Gas Turbine based CHP)Norway 280 MWe + 350 M WthChilled Ammonia

Getica - CET TurceniRomania - >250 MWeChilled Ammonia-Lignite

CCS : a competitive clean power option February 11th, 2012 - P 30


31/43


CCS experience: 16 pilots/demos

Component manufacturer

Alstom know-how for a solidCoE study on CCS PP

IntroductionAlstom Cost of Electricity study on CCS

Plant integration experience(supply of turnkey power plants)Tests complete

VattenfallSchwarze-

Pumpe Germany-30 MWthOxy- Lig nite

Dow ChemicalCo.

US-2MWth

Adv.Amines- coal

Datang- ChinaOxy 350 MWelignite,

Post 350 MWeeq. coal

AlstomBSFWindsor

US- 15 MWthOxy - coals

Getica - CET TurceniRoumania >250MWeChilled

ammonia - Lignite

PGE BelchatowPoland 260 MWe

Adv.Amines- Lignite

DOE/AlstomWindsorUS 3 MWth

Chemical looping-

coal

2nd Gen

NER300

NER300

SelectedforreceivingEEPR funding

NER300: AppliedforEUETSNewEntrantReservefunding

EoNKarlshamnSweden - 5 MWth

ChilledAmmoniaFueloil

WE EnergieUS- 5 MWth

ChilledAmmonia, Coal

AEP MountaineerUS- 58 MWth

ChilledAmmonia, coal

TotalLacqFrance- 30 MWth

Oxy- Gas

Operating

AlstomLabsVxjSweden 0.25 MWth

Post C. multipurpose

Large-scaleprojects-underdevelopment

WhiteRoseCCSProjectUK- 426 MWe

Oxy coal

NER300

Incommissioning /start-up

TCM MongstadNorway- 40 MWth

ChilledAmmonia - Gas

EDF LeHavreFrance 5 MWth

Adv.Amines- Coal

RFCSEU -DarmstadtGermany 1 MWth

Chemical looping- coal

2 Gen


32/43

ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is

given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical andcommercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure tothird parties, without express written authority, is strictly prohibited.

CCS Cost of Electricity studyMain assumptions

Reference plants: Coal & Lignite (without CCS)

Realistic set of assumptions by region

Base case at 7450 hrs per a. plus sensitivity analysis Performance improvement considered (e.g. double reheat ST) Cycle arrangement in 2020/30: 300b-600C-620C

EUR NAM SEA

Fuel type Bituminous Raw Lignite Dried Lignite PRB coal Bituminous

Fuel heating value KJ/Kg LHV 24 930 10 278 21 283 20 425 20 896

Carbon content UB mass% 65% 31% 57% 56% 53%

Fuel price 2011 Euro/t 78,2 24,3 24,3 25,7 53,4

Euro/GJ 3,14 2,37 2,13 1,26 2,56

Cycle argt 2020/30 bar/C/C 300b/600/620C 272b/600/605C 300b/600/620C 300b/600/620C 300b/600/620C

Cooling type C 13C - Direct C 18C - Direct C 18C - Direct C 19C - CT 28C - Direct C

Net Output MWe net 837 1 000 1 000 837 837

Net eff. 15/20/30 % LHV 46.2/48/48.4 % 44/-/- % w HR 47,6/48,8/49 % 44/46.2/46.7 % 41/42.7/43 %

EPC 2015/20/30 /KW net 1421/1518/1518 1583/-/- 2070/2200/2200 1612/1722/1722 814/869/869


33/43



Hardcoal CCS power plantEnergy Penalty (EP)

Energy penalty (EP) = (Ref PP net MWe CCS PP net MWe)(Ref PP net MWe)

Performance improvement and cooling temperature impacts

SEAEUR NAM&

Note : 90% capture of CCS PP CO2 emission, CCS plant and Reference plant at same net


34/43



EURCoE /MWh net

Hardcoal CCS power plantCoE base case (with T&S, without CO2 price)

NAM SEA

All with T&S, on-shore saline aquifer: impact on CoE: 4,8 to 7,2 /MWh netEUR 2032: CCS => +45% increase in CoE; NAM/SEA: lower CoE

CoE /MWh net CoE /MWh net

30

40

50

60

70

80

90

2015 2020 2025 2030 2035

Oxy

Post

Ref PP

+45%

(Post)

73,5 /MWh

(Post)

30

40

50

60

70

80

90

2015 2020 2025 2030 2035

Oxy

Post

Ref PP

30

40

50

60

70

80

90

2015 2020 2025 2030 2035

Oxy

Post

Ref PP

64 /MWh

(Post)62 /MWh

(Post)


35/43



Hardcoal CCS power plantFuel, Capex/Opex and T&S contribution in CoE

POSTREF

/ MWh net

NAMEUR

POSTREF POSTREF

SEA

CoE Ref Plant & Incremental CCS in 2032

Regional differences in Fuel, Capex/Opex costs

High capex, expensive coal Cheap coal, lower efficiency Low Capex, expensive coal

0

10

20

30

40

50

60

70

80

90

100

50,5

73,5+45%

40,5

64

T&S

Fuel

Capex+Opex

40

62


36/43



-10% -5% 0% 5% 10%

CCS Opex

Re-boiler duty (1,8 GJ/tCO2)

CO2 compression

CCS Capex

Capex Storage

Ref plt net efficiency (48,4%)

Energy penalty (15,5% of Ref net)

Capex Transport (200 km)

Capture rate (90%)

WACC w/o inflation (6%)

Economic life (25 yrs)

Fuel cost (78,2 /t)

20 yrs40 yrs

-25% +25%

1,75 GJ 2,0 GJ

-20% 5%

-10% 10%

-10% 10%

-35% 50%

EP 14,7% EP 16,8%

Eff 49,4% Eff 47,4%

-50% 50%

Rate 80% Rate 92,7%

Wacc 7%

Base case

Wacc 5,5%

CCSConventional plant contribution

73,5 /MWh 77,2 /MWh69,8 /MWh

Hardcoal CCS power plantSensitivity analysis - CoE 2032 Europe

Base case: Post amine,on-shore T&S,no CO2 price

Fuel cost, Economic life, WACC have a strong impact

EUR 2032


37/43



Gas Reference Combined-Cycle Power Plants (without CCS)

CCS Cost of Electricity studyMain assumptions

Combined cycles realistic set of assumptions

Base case combined cycle at 6570 hrs per a. Performance improvement considered

EUR NAM SEA

Fuel type Natural gas Natural gas Natural gas

Fuel heating value KJ/Kg LHV 50 000 50 000 50 000

Carbon content mass% 75% 75% 75%

Fuel price 2011 Euro/GJ 7,2 2,8 3,8 (subs.)

Cycle argt 2020/30 1-1 SS 2-1 MS 1-1 SS

Cooling type C 13C - Direct C 19C - CT 28C - Direct C

Net Output 15/20/30 MWe net 600/650/700 850/900/950 538/583/628

Net eff. 15/20/30 % LHV 61/62/63 % 60/61/62 % 60/61/62 %

EPC cost 15/20/30 /KW net 558/544/529 452/441/429 473/461/449


38/43



Gas Combined Cycle CCS Power PlantCoE base case (with T&S, without CO2 price)

EURCoE /MWh net NAM SEACoE /MWh net CoE /MWh net

Lowest gas price at 2,8 /GJ Subsidized gas price 3,8 /GJ=> offsets Capex advantage

Gas price at 7,2 Euro/GJ

-5 % reduction with FGR

Difference in gas price between regions drives CoE level

Note : 90% capture of CCS PP CO2 emissions, CCS plant net output de-rated vs Reference plant (energy penalty)

25

30

35

4045

50

55

60

65

70

75

80

2015 2020 2025 2030 2035

Post FGR, 90% capt

Ref plant

25

30

35

4045

50

55

60

65

70

75

80

2015 2020 2025 2030 2035

Post FGR, 90% capt

Ref plant

25

30

35

4045

50

55

60

65

70

75

80

2015 2020 2025 2030 2035

Post FGR, 90% capt

Ref plant

COE - NAM COE - ASIACOE - EUROPE

Ref plant

Ref plant

Ref plant+28%

+42%

+32%

68,5/MWh )


39/43



POSTREF POSTREF POSTREF

Gas Combined Cycle CCS Power PlantFuel contribution in CoE

NAMEUR SEA

/ MWh net CoE Ref Plant & Incremental CCS in 2032

Smaller % increase in CoE than for coal due tohigher fuel cost contribution

0

10

20

30

40

50

60

70

80

90

100

53,6

68,5+28%

26,6

37,7+42%

Fuel

Capex+O&M+T&S

34,4

45,4+32%


40/43



-15% -10% -5% 0% 5% 10% 15%

CCS OpexCO2 compression

Re-boiler duty (1,8 GJ/tCO2)

Capex Storage

CCS Capex

Capex Transport (200 km)

Ref plt net efficiency (63%)

Energy penalty (10,1%)

WACC w/o infl. (5,95%)

Capture rate (90%)

Economic life (20 yrs)

Fuel cost ( 7.2 /GJ)

68,5 /MWh

16 yrs25 yrs

-25% +25%

1,75 GJ 2,0 GJ

-20% 5%-10% 10%

-10% 10%

-35% 50%

EP 9, 4% EP 11,1%

Eff 64% Eff 62%

-50% 50%

70% 92,7%

Wacc 5,5% Wacc 6,85%

72 /MWh61,6 /MWhBase case

CCSConventional plant contribution

Gas price will remain an essential sensitivity parameter

Gas Combined Cycle CCS Power PlantSensitivity analysis on CoE 2032

Base case: Post aminew FGR, on-shore T&S,

no CO2 price

EUR 2032

Note: w CO2 price 82/t => +4.3% on CoE => 71,5 /MWh


41/43



CCS is already competitive on coal and gas from 2017 tocomplement other low carbon alternatives to reduce CO2

footprint

Low carbon technologies in Europe in the next 5years

Source : Alstom analysis 2012. CCS w Post amine 2017 costs, reference value with on shore T&S, CO2 price and Flue Gas Recirculation for CCS Gas CC.Upper range includes off-shore storage. CoE do not include externalities of Intermittent power (Back-up cost, balancing cost, grid enhancement if required)

7986

0

50

100

150

200

250

300

Hardcoal w

CCS Post

2017

Gas CCPP

w CCS

2017

Nuclear Hydro Geo-

thermal

Wind

Onshore

Wind

Offshore

Solar

Thermal

Solar PV

0

50

100

150

200

250

300

/ MWhCoE Low Carbon technologies New PP over next 5 years

Reference case

EUROPE

Low case

CSP Tower

with storage

no stor.

4 hrs sto

Up to 45cents/kWh

(82 for Ref

CCS Oxy)



42/43



Conclusion

Alstom: a key partner in CCS!

Fossil Plants will still remain for several decades Reducing CO2emissions from these plants is an

absolute need to limit global warming to 2 C (thecurrent path leads to 6C !)

CCS is the only alternative to significantly reduce fossilplant CO2. It is competitive and affordable on both gasand coal

Alstom is currently developingCO2 capturetechnologiesand is on the good path to commercialisethe technology before 2020


Large scale demonstrations must happen now to validate the technology ontime

Pro-activeness on reduction targets, regulations and policy instruments areneeded to support demonstration and early commercial phase (ex: FITs,capacity mechanism...)


43/43

www.alstom.com

Documents

B. Hilton - Alstom CCS Portfolio and Cost Analysis