Philippe Joubert

Durban, December 2011

Carbon Capture & Storage

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Source: IEA 2010

0

10

20

30

1880 1900 1920 1940 1960 1980 2000 2020

Transport

Others

Industries

Residential, services & agriculture

Power generation

Source: Alstom, adapted from CDIAC 2004

Power generation represents >40% of CO2 emitted by fossil fuels

CO2 emissions by sector World energy-related CO2 emissions

Gt CO2

Context: CO2 emissions continue to grow

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Biggest demand in emerging countries Growing share of CO2-free all across the globe.

Global power market forecast – next 5 years New Power Plant Orders in GW p.a

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Efficiency: Plant

optimisation &

retrofit

Wind, solar &

geothermal

N° 1

nuclear*

& biomass

Emissions CO2

(Gt/y)

2005 Ref 2030

1000 ppm

+6oC

Stabilize

emissions

550 ppm

+30C

Needed

path

450ppm

+20C max

Technology Mix

Efficiency

CCS

* Conventional islands

N° 1 hydro

First CO2 capture

demo plant in the

world

Alstom is the world leader in clean integrated solutions

Alstom Clean Power strategy

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The CCS Vision

• International Energy Agency BLUE Map

− CCS accounting for 19% of the 2050 CO2 emissions

reduction goal

- Failure to deploy

CCS would

increase cost of

2050 power

sector

decarbonization

by 70%

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Completed

Vattenfall Schwarze- Pumpe Germany-

30 MWth Oxy - Lignite

Vattenfall Jänschwalde Germany - 250 MWe

Oxy - Lignite

Dow Chemical Co. USA, West Virginia Adv. Amines - Coal

Datang- China Oxy 350 Mwe lignite,

Post 350 MWe eq. Coal

Alstom BSF Windsor US - 15 MWth Oxy - Coals

Getica - CET Turceni Romania – >250MWe

Chilled Ammonia - Lignite

PGE Belchatow Poland – 260 MWe Adv.

Amines - Lignite

AEP Mountaineer USA – 235MWe

Chilled Ammonia - Coal

DOE/Alstom Windsor US – 3 MWth

Chemical looping, Coal

2nd Gen NER300

NER300

NER300

Selected for receiving EEPR funding

NER300: Applied for EU ETS New Entrant Reserve funding

EoN Karlshamn Sweden - 5 MWth

Chilled Ammonia -Fuel

WE – Energie USA WI - 5 MWth

Chilled Ammonia, Coal

ON HOLD ON HOLD

AEP Mountaineer USA - 58 MWth

Chilled Ammonia, Coal

Total Lacq France - 30 MWth

Oxy - Gas

Operating

Alstom Labs Växjö Sweden – 0.25 MWth

Post C. – multi purpose

RFCS EU -Darmstadt Germany –1 MWth

Chemical Looping - Coal

2 Gen

Pre-commercial Projects

Drax - Selby UK - 426 MWe

Oxy – Hard Coal

NER300

Under Construction

TCM Mongstad Norway - 40 MWth

Chilled Ammonia - Gas

EDF – Le Havre France – 5 MWth Adv.

Adv. Amines - Coal

2nd Gen

Alstom activity on demonstrations 1st and 2nd Generation CCS

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Mountaineer inauguration

Mountaineer: First world CCS project with chilled ammonia

Tens of thousands of tons captured and stored in Mountaineer

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5

Commitment taken in 2005 to be ready before 2015

CCS roadmap: time-to market

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The CCS Reality today

• 74 large-scale integrated CCS projects identified world-wide *

• 8 already operating – on gas processing/synfuels/fertilizer plants

• Only 6 new projects in execution, including 2 for power

• Many major demonstrations postponed indefinitely due to uncertain policy environment & lack of funding

• Technology has hit speed-bump on the road to commercialization

• Government support has detached from timetable set for CCS deployment by the 2009 CSLF

2020 targets will not be achieved at current pace

* GCCSI project database June 2011

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What have we learned ?

• It’s not a technology problem…CCS works

− Capture rates as high as 90%

− CO2 purity about 99%

− Energy penalty <20%, on the way to 15%

14%

15%

16%

17%

18%

19%

20%

2010 2015 2020 2025 2030 2035

CCS OXY

CCS PCC

CCS PLANT – ENERGY PENALTY

% AGAINST MWe net REF PLANT

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What have we learned ?

• It’s not the cost…CCS already is cost-competitive

− In-depth Alstom cost analysis shows that:

• Coal & Gas with CCS provides

− Electricity cost lower than solar, geothermal, offshore wind

− Is competitive with nuclear, large hydro & onshore wind

− Is competitive with renewables even without counting for

system costs

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84

65

0

100

200

300

400

Nucle

ar

Hydro

Geoth

ermal

CCG

T CC

S 20

15

Onsh

ore W

ind

PC H

ardcoal C

CS

2015

Offs

hore W

ind

Sola

r PV

Sola

r Therm

al

€ / MWh CoE - Low Carbon technologies Europe, 2011-2016

Reference case

Source : Alstom analysis 2011

CCS on Coal and Gas are competitive

Costs of decarbonised power compared

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Getting back on track

CCS Deployment & Progress Towards Climate Goals

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Conclusion

This is urgent – no solution without CCS

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