Promo%ng

Advanced Coal Technologies through Industry Collabora%on

Megan Walters Coal U'liza'on Research Council (CURC) June 18, 2013 Research Experience in Carbon Sequestra'on (RECS) 2013

What is CURC?
Coal U'liza'on Research Council
An industry advocacy group organized to promote the research, development, demonstra1on and deployment of technology that will enable the long term use of our na9ons abundant coal supplies in a cost-eec9ve and environmentally acceptable manner

Who Are CURCs Members?

ADA-Environmental Solu'ons Air Products and Chemicals Alpha Natural Resources Alstom Power, Inc. American Coal Council American Coali'on for Clean Coal Electricity American Electric Power** Anglo American Thermal Coal Arch Coal, Inc.* The Babcock & Wilcox Company BaVelle/Pacic Northwest Na'onal Laboratory Caterpillar Global Mining Center for Coal Technology Research Cloud Peak Energy** CONSOL Energy, Inc. Duke Energy Services Edison Electric Ins'tute (EEI) Electric Power Research Ins'tute (EPRI) Energy Industries of Ohio FutureGen Industrial Alliance Global CCS Ins'tute General Electric Company The Greater PiVsburgh Chamber of Commerce Illinois Coal Associa'on Illinois Department of Commerce and Economic Opportunity Kentucky Coal Associa'on Kentucky Oce of Energy Policy

LG&E Energy Mitsubishi Heavy Industries America Lehigh University The Linde Group Na'onal Rural Electric Coopera've Associa'on Ohio State University Peabody Energy Pennsylvania Coal Alliance Penn State University Praxair, Inc. PraV & Whitney Rocketdyne Schlumberger Carbon Services Southern Company* Southern Illinois University State of Ohio, Air Quality Development Authority Tenaska, Inc. Tri-State Genera'on & Transmission Associa'on United Mine Workers of America University of Kentucky University of North Dakotas Energy & Environmental Research Center University of Texas @ Aus'n University of Utah University of Wyoming West Virginia Coal Associa'on West Virginia University Western Research Ins'tute Wyoming Mining Associa'on
Companies in red indicate 2013 Steering CommiFee Members * CURC 2013 Co-chairs ** CURC 2013 Vice-Chairs

CURC Leadership Team

Co-Chairmen

Chris Hobson - Senior Vice

President of Environmental Aairs, Southern Company

Jim Orchard - Senior Vice

Vice-Chairmen Mark McCullough - Execu've Vice President of Genera'on, American Electric Power

President of Marke'ng and Government Aairs, Cloud Peak Energy

Deck Slone - Vice President

of Government, Investor and Public Aairs, Arch Coal, Inc.

What exactly does CURC do?

Examine technology pathways and solu'ons
for the con'nued use of coal

Create and advocate for policies and programs

for research, demonstra'on and deployment of advanced coal technologies: CURC-EPRI Roadmap
Annual Funding for Coal R&D

3 Part Technology Program to Take Coal from

Today Into the Future

The Roadmap is a plan to be undertaken in partnership with the federal government to improve the environmental performance of coal while continuing to deliver lowcost electricity, energy and other valuable coalderived products to America, and defines a set of specific technology solutions in order to meet those goals.

The Roadmap Delivers Improvements in Environmental Performance

Independent of a climate driver, less CO2 is emiFed as a result of increased power genera%on eciency, and less coal is used for the same unit of power output

Reduced emissions of tradi%onal air pollutants, reduced water use and consump%on, and reduced CO2 emissions

2010 State of the Art Baseline Data Reduc'ons reect a range of values for both PC and IGCC technology changes aier 2010, but the reduc'ons in 2010 are very signicant: CO2: 0% (no carbon controls in use) NOx and SO2: 90 - 99% reduc'on PM: 99.6% reduc'on Mercury: 90% reduc'on Water Withdrawal Reduc%on (as a result of cooling towers): 98%

The CURC/EPRI Technology Roadmap Delivers Improvements in Power Costs

EIA 2012 LCOE cost projec%ons for new units star%ng opera%ons in 2017 (in $/MWh) Advanced coal w/CCS $140/MWh Nuclear $112.7/MWh Advanced coal $112.2/MWh Wind $98.8/MWh Gas (conven%onal combined cycle) $68.6/MWh Gas (advanced CC) $65.6/MWh

FY 2014 DOE Budget Request A Comparison

(in thousands of dollars) FY 2011 FY 2012 Enacted Enacted 1,771,721 1,780,548 141,010 725,824 586,000 165,640 136,178 760,466 554,806 275,000 - FY 2013 Annualized CR 1,820,713 139,954 770,075 494,969 276,683 4,903,461 - FY 2014 Request 2,775,700 169,015 735,460 494,969 379,000 5,152,752 200,000 9,906,896

Energy Eciency & Renewable Energy Electricity Delivery & Energy Reliability Nuclear Energy Fossil Energy ARPA-E Oce of Science Race to the Top for Energy Eciency TOTAL

4,842,665 4,934,980

Fossil Energy represents less than 5% of DOE proposed FY 2014 R&D budget

CCS and Power Systems Budget

CCS and Power Systems
(All gures in $ Thousands) FY 2012 Enacted FY 2013 Annualized CR FY 2014 Request % Change FY13 v. FY14 CURC Roadmap

Carbon Capture Carbon Storage Advanced Energy Systems Cross-Cuqng Research Total w/o NETL Coal R&D NETL Coal R&D PROGRAM TOTAL

66,986 112,208 97,169 47,946 324,309 35,011 359,320

69,320 116,116 100,554 49,435 335,425 35,225 370,650

112,000 61,100 48,000 20,500 241,600 35,011 276,631

+38% -47% -52% -59% -28% - -25%

77,400 97,560 145,000 52,400 372,360 35,011 407,371

New Dynamics at DOE

Ernie Moniz, New Secretary of Energy

Undersecretary for DOE under President Clinton Former professor of physics and engineering at
MIT Co-author of 2007 Future of Coal report called for expanding CCS eorts

Chris Smith, New Ac'ng Assistant Secretary of Fossil

Energy formerly Deputy Secretary of Oil & Natural Gas

About the CURC 3-Part Program

A program designed to o maintain U.S. energy options o address continuing environmental challenges o enhance domestic energy security o preserve energy technology leadership
globally & sources

o sustain low-cost and reliable electricity

The Air is Geong BeFer

With the applica9on of new technologies developed in partnership between DOE and the private sector, the U.S. is signicantly reducing criteria emissions
(par'culate maVer, sulfur dioxide, carbon monoxide, lead, ozone, and nitrogen oxides)

1990 SO2 Concentrations

2009 SO2 concentrations

A 3-Part Technology Program to take Coal from 2013 to 2050 & Beyond

CURCs Three Part Technology Program
Address efficiency, reliability, flexibility of the existing coal fleet; improve/apply CO2 & other criteria pollutant mitigation measures Financial incentives program to encourage coal-fueled facilities (CTL, SNG, chemicals, electricity) to capture and use CO2 to recover crude oil

Near term program

Existing coal fleet

Mid term program

Through accelerated permitting and regulatory clarification incentivize the construction of advanced coal power plants that will install CCS when commercially available Invest today in RD&D program to improve todays coal-use technologies (evolutionary technologies) Initiate R&D programs for transformational technologies (revolutionary technologies)
2025

Encourage new coal builds using state-of-the-art technologies

Long term program

Technologies for the future

2013

2050

Geong the Message Out

Capitol Hill Days

Annual Advanced Coal Technology Showcase Congressional Sta Briengs Annual CURC-NETL Coal R&D Workshop White Papers

Thank You!
Megan Walters Director, Membership Services & Development Coal U'liza'on Research Council (CURC) mpw@vnf.com 202.298.1849