Bernard Hayes Country Sale Director ALSTOM AUSTRALIA & NEW ZEALAND

Bernard Hayes

Country Sale Director

ALSTOMAUSTRALIA & NEW ZEALAND

- 10/04/23 - P 2

Agenda

Alstom Today

The CO2 Challenge

Alstom’s CO2 Strategy

CO2 – Future Directions

- 10/04/23 - P 3

ALSTOM - Core competencies

3

• Rail Transport World Rail Speed Record

• Power Systems•25% of the World’s installed capacity

• Power Service

- 10/04/23 - P 4

ALSTOM today

• Sales A$ 27.48 bn

• Orders A$ 38 bn

• Order backlog A$ 63.74 bn

• Employees 76,000

• Presence 70 countries

• Market Capitalisation ~ A$ 38 bn

• Listed on Paris Stock Exchange

FY 2006/7

- 10/04/23 - P 5

Innovation – a top priority Increasing R&D expense to A$900 million

(+ 21%) in 2007/08

Technical leadership evident in major programmes:

− Power: 7 partnerships for 8 pilot plants for CO2 capture (USA, Canada, Germany, France, Norway, Sweden)

− Transport: AGV, new Citadis tram, signalling

Innovative Technologies in Alstom

- 10/04/23 - P 6

The Environment is at the core of our business

The Environment is the main driver for Alstom

Clean Power challenge

Environmental benefits of rail transport

- 10/04/23 - P 7

ALSTOM - coverage across Australia & NZ

Sydney•Head Office

•Engineering, Sales

Hamilton, NZ•Power Service Office

•Sales Office

Brisbane•SIGMA Energy Solutions

•Power Service Office

•Sales Office •Workshop for rotating plant

•Satellite for GTs, Hydro, Site Services, Leak seal

Maitland Perth•Sales office

•Power Service Office

•Projects Office

Melbourne•Sales Office

•Transport Office

•Satellite for all field services Hobart•Power Service Workshop

•Sales Office

Orders AUD $1.1bn

Employees Approx 700

Orders AUD $1.1bn

Employees Approx 700

Technologies adapted to all major energy sources

POWER - Present in All Major PowerGen Fuel Markets

Gas Coal

Hydro Nuclear (conventional part) Wind

- 10/04/23 - P 9

Strong presence Medium presence No presence

Products

Renewable

Hydro Wind

Large

GT

LargeST

BoilersGene- rators

HRSG HEX ECS PlantNuclear/Conv. Island

Alstom

Comp. 1

Comp. 2

Comp. 3

Players

Product portfolio compared with competition

Alstom has the most extensive product offering

- 10/04/23 - P 10

•Gas Turbines 56 - 288MW

•Steam Turbines 10 - 1800MW

•Hydro Turbines 5MW - 750MW

•Wind Turbines 640kW - 3MW

•Generators 10MW - 1800MW

•CFB Boilers 50MW - 600MW

•Sub Critical Boilers 120MW - 750MW

•Super Critical Boilers 400MW - 1100MW

•HRSG’s (covering complete GT range)

•Environmental Control PM, Nox, Sox, Hg

•Control Systems For all plant types

The largest portfolio for integrated power solutions

- 10/04/23 - P 11

Alstom - The Plant Integrator

Optimise the whole power plant

Large

GT

Large

ST

Boilers

Gene- rators

HRSG/HEX

ECS

Plant

Tu

rnkey/ E

PC

Component suppliers

Architect Engineers (A/E)

Comp.1

Comp.1

Comp.2

Comp.2Comp.

3Comp.

3

Alstom

- 10/04/23 - P 12

Power Service - Powering Performance

Proactive managementCustomers

Full service

Added value service

Spare parts, maintenance

Diagnostics and monitoring, upgrades,

refurbishments

Spare parts, maintenance and technical support

Integrated maintenance, service contracts, O&M

- 10/04/23 - P 13

Agenda

The CO2 Challenge

Alstom Today



- 10/04/23 - P 14

ALSTOM’s Position on CO2

• Alstom is a technology company in PowerGen and Transport, not a atmospheric scientific research organisation

• Accept as scientifically measured fact that atmospheric CO2 concentrations & global atmospheric temperatures have risen over recent decades

• Acknowledges that IPCC has recognised link between anthropogenic CO2 and earth surface temperature is unequivocal

• Acknowledges that Governments are establishing policy setting to counteract manmade CO2 in response

• Consequently Alstom is developing technological solutions to allow our customers to meet new Govt policy settings

CO2 Intensity and Temperature

Current atmospheric CO2 concentration 380 ppm, highest ever…

CO2 Rise IPCC Temperature projections

Total worldwide CO2 Reduction Requirements – IPCC Targets

•Greenhouse gas emissions and required reductions to stabilize concentrations

(IEA)

0

10

20

30

40

50

60

70

1970 1990 2010 2030

•Business as usual

•550ppm

•450ppm

•Gt CO2/Year

- 35/40%- 45/50%

•IPCC now estimates the target CO2 concentration to limit world temperature increase to 2°C is between 350 and 450 ppm

Abatements Required to Meet IPCC Target for 2030

Power Industry will need a 7.7 GT CO2-e pa reduction by 2030 incl 4.7 GT CO2-e pa from Carbon Capture and Storage to meet 500 ppm

Projected Power Industry Growth to 2030

Coal will still the major fuel source in 2030

0

1

2

3

4

5

6

7

8

9

10

2005 10 20 30

North America

Pacific OECD

China

Rest ofthe World

Europe

TW

Power installed base by region

4.24.9

6.4

8.0

Fig. 1– Source Alstom Long Term Forcast 2030

Alstom Long Term Scenario

0

1

2

3

4

5

6

7

8

9

10

2005 10 20 30

Coal

TW

Power installed base by technology

Hydro

Gas

NuclearOilRenew.

4.24.9

6.4

8.0

Alstom Long Term Scenario

Fig. 2– Source Alstom Long Term Forecast 2030

China & Aisa the Major Growth Areas

Power Gen Emissions Growth to 2030 without CCS

No Chance for Power Gen to meet IPCC CO2 Targets without CCS and Involvement of China

China Driving Emissions Growth

0

2

4

6

8

10

12

14

16

2005 10 20 30

Gas

Oil

Coal

Gt/Yr

Power CO2 emissions without CO2

capture by fuel

9.2

10.7

13.2

15.5


(0)

1

2

3

4

5

China Rest of theWorld

NorthAmerica

PacificOECD

Europe

Incremental Power Sector CO2 Emissions2005-2030

Gt CO2/Yr


Emissions from Coal (esp in China) Driving Emissions

Growth

Meeting IPCC‘s 450 ppm CO2 Tragets for 2030

The Challenges for Power Gen to meet IPCC Target: 1.Implementing Carbon Capture & Storage (CCS)2.Adoption of CCS into China

Fig. 5– Source IEA World Energy Outlook 2007

10

15

20

25

30

35

40

45

2005 2010 2015 2020 2025 2030

Gto

f C

O /

Yr

2

CCS in industryCCS in power generationNuclear

Renewables

Switching from coal to gas

End Use electricity efficiency

End Use fuel efficiency

R eference S cenario

450 S tab ilisation C ase

27 G t

42 G t

23 G t

Energy-Related CO2 Emissions

Source: IEA World Energy Outlook 2007

- 10/04/23 - P 21

Agenda

Alstom Today



The CO2 Challenge

- 10/04/23 - P 22

ALSTOM’s CO2 Strategy for Fossil Fuel Power Generation

1. Increased efficiency of the installed base

2. Highest efficiencies for new coal and gas plants

3. CO2 capture ready for new power plant

4. CO2 capture solutions to retrofit to the installed base and for new plants

The 4 Pillars of Alstom’s Fight against CO2

0

200

400

600

800

1000

1200

1400

30% 35% 40% 45% 50% 55% 60%

Plant Efficiency LHV

CO

2 E

mis

sio

ns (

g/K

Wh

)

Lignite

Bituminous Coal

Coal + 20% Biomass

Natural Gas

1& 2. INCREASED EFFICIENCYFrom service to retrofit and new plants…

• New Equipment• High efficiency plants

• Biomass co-firing

• Carbon capture and storage

• Service and Retrofit• Retrofit (efficiency

improvement)

• Biomass Cofiring/Fuel switch

• Integrated Retrofit Projects

Existing power plant New power plant

1& 2. INCREASED EFFICIENCYBiomass Co-firing - example

• Retrofit to Biomass co-firing in UK

• 2x 60 T/Hr Biomass fuel handling and preparation systems

• 2006, UK, 2/4 x 500 MWe ALSTOM T Fired Boilers EPC

• 20% Heat input Biomass and 2x 100MWe – CO2 free

• Multi Fuels = Wood Pellets, Palm Kernels, Olive Stones, Olive Cake

Total CO2 savings per year = 800kt pa !

NEXT STEPS:

•Several projects under discussion

•R&D Program to develop wider range of biomass fuel source capabilities

- 10/04/23 - P 25

Hazelwood 2030 Demonstration ProjectHazelwood 2030 Demonstration Project

Customer: International Power Integrated Plant Retrofit Lignite Dryer Installation Demonstration CO2 reduction

project

1& 2. INCREASED EFFICIENCY Lignite Drying - Hazelwood 2030 Demonstration Project

1. INCREASED EFFICIENCY Emission Reduction through Plant Retrofitting

~ 0.5%

~ 0.5%

IP Retrofit LP RetrofitHP Retrofit

~ 3%~ 1.5%

Emissions reduction

~ 3%~ 1.5%Performance improvement(Heat Rate)

Further performance improvement through integrated boiler and turbine retrofit solutions

g/kWh

2. INCREASED EFFICIENCY New Steam Plant – Higher Steam Conditions to boost Efficincies

New Plant Efficiency Targets : Combined Cycle Gas Fired Combined Cycle Plants: 60% + (nett)Black Coal Fired Steam Plants: 50%+ (nett)

3. “CAPTURE READY” PLANT CONCEPTFor New Plant Built before CCS is Commercialised

Address today the

issues raised by future

stringent CO2 regulations

CO2readypowerplant

concept

• CO2 capture ready plant definition:

− Plant designed to have CO2 capture added at some time in the future with minimal impact on plant lifetime performance and cost

• Availability of a CO2 ready plant:

− Based on post-combustion scrubbing or oxy-combustion processes, coal-fired plants are CO2 ready provided that:

• Transport and storage of CO2 is validated

• Extra room is left for the installation /layout for the capture plant or ASU

• Suitable back-end equipment is installed

• Future shut-down time is minimised

The need The answer

Insure CO2 readiness of current power plants – IEA Standards

Source : ALSTOM analysis

3. “CAPTURE READY” PLANT CONCEPT CO2 “Capture Ready” concept for a Coal Power Plant

Improvement of flue gas cleaning and potentially addition of components

Preparation for increased low pressure steam demand fromsteam turbine

Control system adaptation

Provisions in arrangement planning

Provision for auxiliaryPower consumption

Optimisation of the cooling systemRecovery of heat in the CO2 captureand compression

Optimisation of theBoiler surfaces accordingModifications of the heat load sharing

An integrated approach is key

- 10/04/23 - P 30

Example of CO2 a Capture Plant

- 10/04/23 - P 31

4. CO2 CAPTURE SOLUTIONS Zero emission technology pathways

•Pre-combustion•(New plants only)

•Pre-combustion•(New plants only)

•Power Plant with CO2 Capture•Power Plant with CO2 Capture

Post-combustion(New + retrofit)

Post-combustion(New + retrofit)

Oxy-combustion(New + retrofit)

Oxy-combustion(New + retrofit)

Source: VattenfallSource: Vattenfall

SOLUTIONS DEVELOPED BY ALSTOM

Source: Vattenfall

All require a form of Gas Separation Technology

Cost of electricity comparisonBenchmark Analysis, based on EPRI, IEA, CPS, CERA studies

ALSTOM analysis

58,5

75,8

61,3

67,9

48,8

71

30

40

50

60

70

80

90

11

Co

E

($

/ MW

h n

et)

IGCC without capture

SCPC without Capture

SCPC with Future Amine

Capture

SCPC with Amonia Capture

Oxy PC IGCC with capture

USC PC and ALSTOM technologiesUSC PC and ALSTOM technologies

4. CO2 CAPTURE SOLUTIONS Technology comparison –2015 Design – 650 Mwe (net)

4. CO2 CAPTURE SOLUTIONSA. Pre Combustion Solution for New Plants: IGCC+Capture

• CO2 Capture technology is proven and economical in other industries

• High Capital and Operating Costs

• Limited operation flexibility

• Plant retrofit: not possible

• Larger Landspace requirements

• Highest cost of electricity

• Can make sense in polygeneration contextAPI Falconara IGCC, 290 MW Cogeneneration with ALSTOM 190 MW GT13E2

Fuel Flexibility

Significant boiler size reduction

Possibility of integrated membrane oxygen production being studied

Recycled solids control CFB temperature in external exchanger

4. CO2 CAPTURE SOLUTIONSB. Oxy-combustion : Oxyfired CFB

H 2O

CO 2

Co

nd

en

ser

Natural gas, refinery gas, Coal, Fuel-oil, Petcoke,Biomass

Fuel Air(C xHy)

Me + 1/2O2 -> MeO

Air

R

eact

or

CxHy + MeO -> Me + CO2 + H2O

Fu

el R

eact

or

MeO

Me

Electricity

Production

Depleted air(N 2, O 2)

N2, O2

H2O, CO2 Electricity

Production

CO2 CAPTURE SOLUTIONS B. Oxy-combustion: Chemical Looping Metal Oxides

4. CO2 CAPTURE SOLUTIONS C. Post Combustion Solutions for New Plants and Retrofit

• Available in commercial scale

• Retrofitable and flexible

• High energy demand for regeneration of solvents

CO2 absorption processes (MEA, MDEA)

PP Esbjerg (DK)

1 t CO2/h pilot plant (CASTOR EU-FP6)

4. CO2 CAPTURE SOLUTIONS C. Chilled Ammonia Process

A promising technology for post combustion carbon capture

Advantages

• High efficiency capture of CO2 and low heat of reaction

• Low cost reagent

• No degradation during absorption-regeneration

• Tolerance to oxygen and contaminations in flue gas

Principle

• Ammonia (NH3) reacts with CO2 and water. It forms ammonia carbonate or bicarbonate

• Moderately raising the temperatures reverses the above reactions – releasing CO2

5 MW Pilot Plant (USA) Start-up anticipated for 2007

- 10/04/23 - P 38

Agenda

Alstom Today

Alstom CO2 Strategy


The CO2 Challenge

- 10/04/23 - P 39

Coal - Current Status and Medium Term Developments

Installed base

New base

ALSTOM SOLUTIONNOW

ALSTOM SOLUTIONTOMORROW

• Improved efficiency through integrated retrofits up to 3% points

• Reduced conventional emissions by 95% - 99% through Environmental Control Systems

• Black Coal Net Plant Efficiencies >46.5% today*)

• Post combustion CO2 scrubbing to achieve emission reduction

• Efficiencies of 50%+• Post-combustion CO2

capture• Oxyfiring• Pre-combustion CO2

capture?*) LHV based; plants under construction with ~30 mbar condenser pressure by river/seawater cooling)

- 10/04/23 - P 40

Gas - Current Status and Medium Term Developments

• Improved Efficiency by Conversion of Open Cycle Plants to Combined Cycle Plants from ~35% to ~55%+*)

• Improved efficiency by up to 1%points through upgrades

• Efficiencies up to 59% for Combined Cycle*

• Post combustion CO2 scrubbing to achieve emission reduction

• Efficiencies of 60%+• Post-combustion CO2 capture

ALSTOM SOLUTIONNOW

Installed base

New base

ALSTOM SOLUTIONTOMORROW

*) LHV based; ISO conditions, 45 mbar condenser pressure

- 10/04/23 - P 41

Main Alstom Demonstration Partnerships/Projects Announced

CHILLED

AMMONIA

OXY-COMB

0.25 MWt

5 MWt

30 MWt>200 MWt

5 MWt

40 MWt

30 MWt

30 MWt

Stanford (US) - Gas and Coal

Pleasant Prairie (US) - Coal

Mountaineer (US) - CoalNortheastern (US) - Coal

Karlshamn (Sweden) - Gas

Mongstad (Norway) - Gas

Schwarze Pumpe (Germany) - Coal

Lacq (France) - Gas

ADVANCED

AMINESJoint Development Partnership

Lignite Drying Hazelwood 2030 (Australia) 330 MWt

- 10/04/23 - P 42

Capture and StorageDeployment time-line

Ample storage available but its timely deployment isthe likely bottleneck

2010 2015 2020 2030

Post-comb.

Pre-comb.

Oxy-comb.

EU,US Australia

2025

Pilot / Demo Commercialization

Ramp-up to full scale saline aquifer storage

Pilot / Demo

Progressive pipeline deployment,depending on validated storage sites

Pilot / Demo Commercialization

Commercialization

Pre-commercial

2007

EOR + validation of storage sites

Transport

Storage

CaptureRoadmap

EU,US Australia

Source : Alstom Analysis

Pre-commercial

Pre-commercial

Local, limited EOR projects + Demo

- 10/04/23 - P 43

•Carbon intensity solutions are available today for the installed base

•Post Combustion CCS offers the best long term solution to fossil fuel power station GHG emissions

•Alstom is participating in the development of carbon capture solutions which should be commercially available from 2015 on

CO2 Conclusion

- 10/04/23 - P 44

Post-Combustion Field Pilot at WE Energies

Industrial pilot program

• Project participation through EPRI by over 30 US and international utilities

• Designed to capture up around 15,000 tons/year of CO2 at full capacity

• Absorber and cooling systems commissioned

• Erection of regenerator system in completion

• Parametric testing to commence March 2008

• Will provide data necessary to establish “proof of concept”

Test Bench 5 MW, start up in February 2008

Pleasant Prairie Power Plant (US)

- 10/04/23 - P 45

Post-Combustion Field Pilot at E.ON Karlshamn

Industrial pilot program


• Project schedule:

-Commissionning July 08

-Testing Fall 2008

• Testing to continue into late 2009

Test bench 3D schematic

Karlshamn Power Plant (Sweden)

- 10/04/23 - P 46

Industrial demonstrator 40 MWt,

Mongstad (Norway)

Industrial demonstrator 30 MWt,

Mountaineer (US)


• Saline aquifers storage

• Commenced engineering Oct 07

• Project commissioning 09

• European Test Centre Mongstad for flue gases from natural gas CHP plant and a refinery

• Designed to capture 100,000 tons/year

Post-Combustion Demonstrations: AEP & STATOIL

- 10/04/23 - P 47

Post Combustion Partnership with DOW

Amine CO2 capture is proven • Retrofitable

• Installed on a few plants burning coal

• High energy demand for regeneration

Exclusive partnership with DOW

– Advanced Amines

– Improved Process

– Plant Integration

SHADY POINT, OKLAHOMA, USAAES CFB w/ MEA CO2 separation

PP EsbjergDenmark

1 t CO2/h pilot plant (CASTOR EU-FP6)

Warrior Run, MarylandAES CFB w/MEA CO2 separation

- 10/04/23 - P 48

Oxy-Combustion Oxy-PC: Demonstration 30 MWth: Vattenfall

Source: Vattenfall

Main features

• 5,2 t/h solid fuel

10t/h oxygen

• 40 t/h steam

9 t/h CO2

• ALSTOM supplies the oxy-boiler and ESP

• Goal: validation and improvement

of oxyfuel process starting summer 2008

30 MWt Demonstration – Schwarze Pumpe, Germany

- 10/04/23 - P 49

WEBCAM: http://www.vattenfall.de/www/vf/vf_de/225583xberx/228227umwel/228407klima/228587co2-f/818970webca/index.jsp

29.11.2007

Oxy boilerCryogenic unit

CO2 Compression

Oxy-Combustion Oxy-PC: Demonstration 30 MWth: Vattenfall

- 10/04/23 - P 50

Oxy-Combustion Oxy-PC: Demonstration 30 MWth: TOTAL Lacq

Source: TOTAL

Main features

• 40 t/h steam, 240 t/day Oxygen

• 150,000 tons CO2 will be stored in a depleted gas field

30 MWt demonstration – Lacq, France

• Goal: validation and improvement

of oxyfuel process starting 2008

www.alstom.com

Documents

Bernard Hayes Country Sale Director ALSTOM AUSTRALIA & NEW ZEALAND