COOK INLET AREA IGCC/GTL & COGTL. ANGTL s PERSPECTIVE

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1 COOK INLET AREA IGCC/GTL & COGTL ANGTL s PERSPECTIVE

2 ANGTL DRIVEN BY DESIRE TO DEMONSTRATE GTL PROCESS IS VIABLE IN ALASKA PROVIDE FOR FUTURE GTL DEVELOPMENT ADDRESS MULTIPLE ENERGY NEEDS CREATE NEW INDUSTRIES FOR ALASKAN's US ENERGY POLICY ACT OF 1992 REDUCE ENVIRONMENTAL EMISSIONS REDUCE US DEPENDENCE ON FOREIGN CRUDE OIL NATIONAL ENERGY SECURITY ACT OF 2001

3 COOK INLET AREA FUEL SOURCES NATURAL GAS COAL - GASIFICATION

4 SYNTHETIC PRODUCTS THE PROCESS

5 GAS TO LIQUID PROCESS coal Solid Fuels Gasification syngas Fischer-Tropsch Conversion waxy syncrude Product Work-up naphtha

6 GAS TO LIQUID PROCESS natural gas Natural Gas Reforming syngas coal Solid Fuels Gasification syngas All steps are commercially proven Natural gas reforming and product work-up through conventional technology Sasol & others have reduced costs and improved efficiency by successful integration Fischer-Tropsch Conversion waxy syncrude Product Work-up naphtha

7 SIMILAR GTL PROCESSES natural gas Natural Gas Reforming syngas All steps are commercially proven Natural gas reforming and products through conventional technology Fertilizer Methanol

8 SIMILAR GTL PROCESSES coal Coal Gasification syngas natural gas Natural Gas Reforming syngas All steps are commercially proven Natural gas reforming and products through conventional technology Fertilizer Methanol

9 FERTILIZER & GTL PROCESS coal Coal Gasification syngas natural gas Natural Gas Reforming syngas Waste heat Fischer-Tropsch Conversion Fertilizer All steps are commercially proven waxy syncrude

10 IGCC PROCESS electricity Combined Cycle Electric Generation coal Coal Gasification Syngas & Waste Heat All steps are commercially proven

11 GTL PROCESS coal Coal Gasification syngas Fischer-Tropsch Conversion All steps are commercially proven waxy syncrude Product Work-up naphtha

12 IGCC/GTL PROCESS electricity Combined Cycle Electric Generation coal Coal Gasification Syngas & Waste Heat Fischer-Tropsch Conversion All steps are commercially proven waxy syncrude Product Work-up naphtha

13 IGCC/GTL PROCESS electricity Combined Cycle Electric Generation coal Coal Gasification Syngas & Waste Heat Fischer-Tropsch Conversion Tail Gas & Waste Heat All steps are commercially proven waxy syncrude Product Work-up naphtha

14 IGCC/GTL PROCESS electricity natural gas Natural Gas Reforming syngas Combined Cycle Electric Generation coal Coal Gasification Syngas & Waste Heat Fischer-Tropsch Conversion Tail Gas & Waste Heat All steps are commercially proven waxy syncrude Product Work-up naphtha

15 IGCC/GTL PROCESS electricity natural gas Natural Gas Reforming syngas Combined Cycle Electric Generation coal Coal Gasification Syngas & Waste Heat CO2 co-steam reforming Fischer-Tropsch Conversion Tail Gas & Waste Heat All steps are commercially proven waxy syncrude Product Work-up naphtha

16 IGCC/GTL PROCESS electricity natural gas Natural Gas Reforming syngas Combined Cycle Electric Generation coal Coal Gasification Syngas & Waste Heat CO2 co-steam reforming Fischer-Tropsch Conversion Tail Gas & Waste Heat All steps are commercially proven waxy syncrude Product Work-up naphtha

17 BENEFIT OF IGCC/GTL PROJECT FOR COOK INLET COAL GASIFICATION / GTL / COMBINED CYCLE ELECTRIC GENERATION MOST EFFICENT USE OF COOK INLET ENERGY RESOURCES SYNGAS FROM COAL GASIFICATION PROVIDES SECOND FUEL TO GENERATE ELECTRICTY FOR 80% OF ALASKAN S

18 BENEFIT OF A COOK INLET IGCC/GTL PROJECT FOR ALASKAN S COAL GASIFICATION / GTL PROVIDES ALASKA WITH SYNTHETIC DIESEL THAT EXCEEDS EPA DIESEL STANDARDS FOR 2010 AND BEYOND ALASKA CAN LEAD THE US IN THE CLEAN GENERATION OF ELECTRICTY AND SYNTHETIC FUELS FROM BOTH COAL AND NATURAL GAS

19 COOK INLET GTL S WILL REDUCE GREEN HOUSE GASES IN ALASKA Virtually zero sulfur from Cook Inlet GTL s can reduce motor vehicle emissions by 40 % or more. Waste heat recovered from the GTL process can supplement gas fired generation which will reduce demand on the area s limited natural gas resources. GTL S IN ALASKA WILL RESULT IN THOUSANDS OF JOBS BOTH IN ALASKA AND THE US Each IGCC/GTL plant will employ thousands during construction will provide hundreds of permanent operating jobs.

20 ENVIRONMENTAL BENEFITS OF GTL S EPA APPROVED AS NON TOXIC - BIODEGRADABLE F-T DIESEL HAS < 1 PPM SULFUR, <0.5 % AROMATICS REDUCES EXHAUST PIPE PARTICULATE MATTER REDUCES NOx

21 SYNTHETIC DIESEL CLEAR AND VIRTUALLY ODORLESS

22 ANGTL IS READY TO START TODAY IGCC/GTL technology exists TODAY Both processes commercial Several very successful IGCC plants in operation IGCC costs comparable with present day natural gas CC projects

23 SUMMARY A COOK INLET IGCC/GTL PROJECT WILL: REDUCE COOK INLET DEPENDENCE ON NATURAL GAS IMPROVE AREA ELECTRIC GENERATION EFFICENCY MEET EPA DIESEL STANDARDS FOR 2007 AND BEYOND PROVIDE THE BEGINNING OF VALUE ADDED INDUSTRIES IN ALASKA - PETROCHEMICAL PROVIDE FOR FUTURE GTL PLANTS TO BE BUILT IN ALASKA

24 CONCLUSION CLEAN ELECTRICITY & ULTRA CLEAN DIESEL FROM ALASKA S COOK INLET ELECTRICITY & GTL s FROM COAL and NATURAL GAS BIODEGRADABLE - ZERO SULFUR ZERO AROMATIC F-T SYNTHETIC DIESEL, THE FUEL OF THE FUTURE AVAILABLE TODAY

25 CONCLUSION CAN THERE BE A BETTER SOLUTION FOR THE PEOPLE OF ALASKA & AMERICA FOR OUR CHILDREN - THE REAL FUTURE OF OUR COUNTRY WE HAVE SEEN THE FUTURE IT LOOKS A LOT CLEANER!

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