The document summarizes a panel discussion on the economics and risks of scaling up carbon capture and oxyfuel approaches for pulverized coal plants. The panelists discuss the definition of oxyfuel combustion and how it relates to carbon capture. They explore challenges of oxyfuel technology including boiler design changes and high purity oxygen production. The discussion covers applying oxyfuel to new and retrofit plants using various coal and biomass fuels. Broader topics include regulatory uncertainty around carbon regulations and the practical challenges of large-scale carbon sequestration. Charts provide a simplified process flow diagram of oxyfuel combustion and a proxy comparison of carbon capture costs for conventional versus oxyfuel pulverized coal plants.

1. Panel Discussion: Economics and Risks of
Scaling Up Carbon Capture and Oxyfuel
Approaches for Pulverized Coal Plants and
Oxyfuel Applications
Washington, D.C.
December 3-5, 2007
Carbon Capture: Status & Outlook
Anthony J. Cirillo, PE, MBA
General Manager, Power

2. 2
Charles (Chuck) D. McConnell
 Global VP, Gasification & OxyCoal; Praxair, Inc.
 30 years experience in the air-gas supply/service business
 Professional affiliations include:
-Clean Coal Technologies Foundation of Texas
-Texas FutureGen Advisory Board
 BSChE, MBA
Eugene (Gene) Hernandez, P.E.
 VP, Marketing & Sales; Doosan Babcock Energy America LLC
 25 years experience in utility consulting, project development
and major equipment sales
 Professional affiliations include:
-ASME Codes & Standards Division, PTC committees
-Authored technical publications; ASME, EPRI, EEI
 BS and MS Engineering
Panelists

3. 3
Panel Discussion-Opening Remarks
Current Events…a Harbinger?
Oxyfuel Overview
– Definitions
– What’s it got to do with CO2 capture?
Topics to be Explored
– Competing technologies for CO2 capture
– CO2 capture technology costs
– CO2 capture and parasitic load burden
Challenges

4. 4
Current Events…a Harbinger?
Good: Washington DC… Feds
Backing Three Big CO2
Sequestration Projects
October 2007-In a massive demonstration
program seen as key to the future of coal-fired
power generation, the DOE has announced its
plans to invest $197 million in the nation’s
first large scale carbon sequestration
projects, which call for injecting CO2 into
underground reservoirs in the Southwest,
Southeast, and Great Plains.
Bad:Florida… Tampa Electric
Cancels New IGCC Plant Due to
Concerns Over GHG Requirements
October 2007 -TECo turned down a $133.5
million federal tax credit when it announced
that it no longer plans to meet its 2013 need
for base load generation with the construction
of an IGCC power plant. The primary drivers
of the decision include continued uncertainty
related to CO2 regulations, particularly
sequestration issues, …

5. 5
Current Events…a Harbinger (cont’d)?
~35% of the anthropogenic CO2 in the US comes from the power sector
Ugly: Kansas…Sunflower
Electric’s Proposal to Build 2 x
700 MW Turned Down
November 2007-They said that the expected 11
million tons of annual CO2 emissions was
unacceptable. "I believe it would be
irresponsible to ignore emerging information
about the contribution of carbon dioxide and
other greenhouse gases to climate change
and the potential harm to our environment
and health if we do nothing," says Rod
Bremby, secretary of the Kansas Health
Department.
Hideous: Florida…Southern,
Orlando Muni Kills Clean Coal
Plant Over CO2 Concerns
November 2007-Just 2 months after the project
broke ground with a high profile ceremony
attended by Energy Secretary Bodman and
top officials from the sponsoring utilities,
Southern Company and the Orlando Utility
Commission announced they are terminating
an advanced coal gasification power plant in
Florida because of growing uncertainty about
the possible imposition of federal or state
greenhouse gas controls.

6. 6
Definition - Clean Coal
"Clean coal technology" describes a new generation
of energy processes that sharply reduce air emissions
and other pollutants from coal-burning power plants.

7. 7
Definition – Capture Ready
Which is “more” capture ready?Which is “more” capture ready?
vsvs
Which is easier to capture…orWhich is easier to capture…or

8. 8
Definition – Capture [CO2] Ready (cont’d)
Contention: While many combustion
processes appear equal [i.e., capture ready], some
are more equal than others!
Premise: The end game is, “exclusive of compression, the
CO2 is in a sequestration or pipeline-ready [i.e., transportable and
relatively free of water and other impurities] condition”.
Definition: Within the context of combusting, or processing a
fossil fuel for combustion, the degree [i.e., purity, extent of
conversion] to which CO2 is produced while meeting the
combustion objective.

9. 9
PostPost-Combustion-Combustion
Capture ProcessCapture Process
-Conventional Fossil Fired-Conventional Fossil Fired
Power Plants, inc PCsPower Plants, inc PCs
-Chemical or Physical-Chemical or Physical
Absorption ProcessesAbsorption Processes
Definition - Oxyfuel
A hydrocarbon-based fuel, combustedA hydrocarbon-based fuel, combusted
through oxidation using a high puritythrough oxidation using a high purity
oxygen stream, and where the products ofoxygen stream, and where the products of
combustion are essentially Hcombustion are essentially H22O and COO and CO22..
OxyfuelOxyfuel
IntegratedIntegrated
CaptureCapture
ProcessProcess
PrePre-Combustion-Combustion
Capture ProcessCapture Process
-aka, Decarbonization-aka, Decarbonization
-IGCC, with/w-o Water-Gas-IGCC, with/w-o Water-Gas
Shift Reactor and AcidShift Reactor and Acid
Gas RemovalGas Removal
-SNG; Pipeline-ready-SNG; Pipeline-ready
Synthetic Natural GasSynthetic Natural Gas

10. 10
What do you do after you capture CO2?
0
200
400
600
800
1000
25 50 75 100
Usable Storage Capacity, %
YearsofStorage
Once it’s captured, ample
CO2 storage capacity likely
exists.
It is impractical and/or
uneconomical for all
existing, or all new, power
plant CO2-emitting sources
to:
– Capture, transport and
geologically sequester their
CO2.
– Capture, transport and
market their CO2 for EOR.
Yet, the promulgation of CO2
regulation and legislative
efforts continue
Potential US/CanadaPotential US/Canada
Geologic Storage Capacity*Geologic Storage Capacity*
•Source: US Department of Energy, Phase I, President’s ClimateSource: US Department of Energy, Phase I, President’s Climate
Change Technology Initiative identified about 3,600 Gtons ofChange Technology Initiative identified about 3,600 Gtons of
potential geologic storage. Power plant and other large industrialpotential geologic storage. Power plant and other large industrial
sources are producing about 4 Gtons annually.sources are producing about 4 Gtons annually.
Potential Storage-3,600 gigatons
Life of known
US coal reserves

11. 11
“What’s it have to do with CO2 capture?”
Oxyfuel combustion…
– Produces a high quality [CO2 concentration] flue
gas stream, which makes it easy to capture
– Other benefits/attributes include:
• Represents an in-situ combustion process which,
through increased thermal efficiency, reduces CO2
formation
• Can be retrofit on existing PC units
• Has multi-pollutant removal potential
• Is cost competitive with post-combustion capture
processes
• Uses established component technologies

12. 12
Challenges-Oxyfuel…Panel Discussion
Boilers: New Designs/Retrofits
– Extremely hot flame temperatures
– Air-tight furnace
– Flue gas recycle %
O2 Production
– High purity
– Capacity: Several multiples over what exists
today
Costs ($/Kw): Capital and Operating
– Burner modifications, flue gas recirculation
– Gas plant; O2, CO2
– Parasitic load

13. 13
Discussion Areas-Oxyfuel
Challenges (see prior slide)
Oxyfuel application to:
– Boiler Type
• New Plant vs Retrofit
• Technology
– Pulverized Coal
– Circulating Fluidized Bed
• Unit Size, MW
• Fuel Type
– Coals-E. Bit, Lignite, PRB, Anthracite
– Petroleum Coke
– Biomass-Sawgrass, Wood Chips

14. 14
Discussion Areas-Broad Context (cont’d)
CO2 Regulatory Uncertainty
– How; What form, e.g., cap and trade
– When
– Who; Federal, State, etc
CO2 Capture & Disposal…it’s not widely,
practically, applicable to many power plants
– Sequestration
– EOR
– Commercial Use

15. 15
Appendix
Conventional PC-Oxyfuel simplified PFD
Proxy: CO2 capture costs

16. 16
Conventional PC w/an Oxyfuel Configuration

17. 17
Proxy: CO2 capture costs* for PC units
Conventional
PC
Oxy-fueled PC
Capital Cost Spread,
w/ and w/o CO2
Capture ($/Kw)
Up to $950 Up to $1,300
Cost of CO2
Captured ($/ton)
Up to $34 Up to $27
Energy Penalty for
Capture (% Mwnet)
Up to 27% Up to 25%
* 2004 cost data, encompassing plant sizes from 400-1200 Mw