GHGT 13, 11th November 2016 Lausanne, Switzerland Kemper County Energy Facility Richard A. Esposito Southern Company Research & Environmental Affairs
America s Premier Energy Company
Our Regulated Utility Franchises Southern Power Competitive Wholesale Business
Southern Company Gas Footprint 4
All of the Below Energy Strategy New Natural Gas 21 st Century Coal New Nuclear Energy Efficiency Biomass Wind PV Solar
Long History and Continued Focus on R&D Only U.S. electric power company with internal R&D organization Approximately 150 engineers and scientists in laboratories and facilities dispersed across operating assets Active collaboration with other power companies; domestic and international Primary goal of research portfolio is to provide technology options to power operating business
Kemper County Energy Facility
High Priority on Safety.42 Project Recordable Incident Rate 7 times safer than Construction Industry Average for projects this size 40 Million Total Project Hours
Why Kemper? Fuel diversity Fuel price stability 75% Natural Gas 25% Coal 21 st century environmental profile Satisfies need for base load generation Inland location from Gulf of Mexico * Includes unit retirement and fuel switch announcements (8/4/14) 2020 energy mix without Kemper 20% 25% Coal Coal 60% Natural Gas 20% Lignite 2020 energy mix with Kemper *
Mississippi Power Service Territory
Project Overview 2x1 Integrated Gasification Combined Cycle (IGCC) 2 Transport Gasifiers 2 Siemens SGT6 5000F gas turbines 1 Toshiba steam turbine 740 MW gross capacity; 582 MW net peak capacity Chemical products: carbon dioxide, sulfuric acid, and ammonia Project Information Mine mouth lignite (brown coal) Zero liquid discharge Uses treated effluent as makeup water Mine Operations Commercial operation; June 5, 2013 Dragline in service; Fall 2013 More than 1 million tons of lignite mined 20 acres of mined property reclaimed already Plant Site
Environmental Benefits Reduced Emissions Leader in providing clean, safe power and will have fewer sulfur dioxide, particulate and mercury emissions than traditional coal technology. Three byproducts carbon dioxide, ammonia and hydrogen sulfide will be removed from the gas stream and sold as commodities. The project will capture at least 65% of the carbon dioxide produced. Water Wise (zero liquid discharge) None of the water used to generate electricity is sourced or will end up in surrounding streams and rivers. Contractual agreement for treated effluent supply from a local municipality fills a 90 acre reservoir, which holds 50 days supply.
Saleable by products Gasifier Sulfuric acid (H 2 SO 4 ) ~150,000 Tons/Year 20/day Ammonia (NH 3 ) ~19,000 Tons/Year 4/day Combined Cycle CO 2 @ 65% capture ~3,000,000 Tons/Year
CO 2 Enhanced Oil Recovery (CO 2 EOR) www.energy.gov
Kemper County Plant Site IGCC Infrastructure ~112 km (70 miles) transmission Station energized ~ 96 km (60 miles) CO 2 pipeline 100% Complete ~8 km (5 miles) natural gas pipeline 100% Complete ~125 km 2 (3,100 acres) mine site Placed in service in June 2013 ~ 48 km (30 miles) treated effluent line 100% Complete Meridian New CO 2 Pipeline
Mississippi Lignite Natural Mississippi resource Estimated 4 billion mineable tons ~185 million tons needed for the Kemper Project over 40 years Lignite is an abundant low rank coal ~5,200 btu/lb ~45% Moisture Not subject to market volatility Does not require commercial transportation TRIG TM technology designed for low rank coals like lignite The Kemper Project
Mississippi Lignite Mining Surface mine operations Multiple seams (2 to 5) Typically seam is between 2 to 10 feet thick Shallow deposits at between 100 to 300 feet deep
Construction Progress Fall, 2011
Construction Progress Fall, 2012
Construction Progress Fall, 2013
Construction progress Fall 2014
Plant and Aerial View 2016
TRIG TM Presalter Cyclone Riser syngas Standpipe Cyclone Innovative design High reliability design Lower fuel costs Creates synthesis gas Mixing Zone Startup Burner coal Seal Leg air/o2 steam J-leg Standpipe Excellent environmental performance ash syngas Works well with lowgrade coals
UOP Selexol process for CO 2 capture 65 percent carbon capture similar carbon footprint to a NGCC Stable, well-proved process that uses a single solvent to remove both CO 2 and H 2 S Relies on acid gas physical solubility in solvent Uses equipment common in the chemical and refining industries More than 50 units are in commercial operation
A sense of scale H 2 S Absorbers
Lignite dome: Capacity of 100,000 tons Lignite Handling and Drying
Key Accomplishments Construction of the plant is complete. Plant expected to be commercially operational this year. Gasifier B syngas produced in July, 2016; Gasifier A syngas produced in September, 2016 Highly Efficient Combined Cycle Plant has been operating since August 9, 2014 serving approximately 250,000 homes, with approximately 3.5 billion kilowatt hours of electricity, in 23 Mississippi counties. The Combined Cycle has achieved excellent reliability (EFOR less than 1) about four times better than the industry average Generated first electricity from 100% syngas in September 2016 First CO 2 into pipeline in coming weeks
Economic Benefits Peak Construction 12,000 direct and indirect jobs, including 6,000 direct construction jobs 520 Mississippi companies (more than $2 billion in contracts) Estimated annual state and local tax impact $40 million Permanent jobs: more than 500 direct jobs at the at the plant and mine permanently
Global Technology Interest Department of Energy United Nations China Japan South Korea United Kingdom Norway Australia Canada Indonesia Poland India Turkey Southern Company continues to receive worldwide interest in TRIG from energy companies in regions with access to abundant supplies of low-rank coal, seeking an environmental solution to the sustainable use of coal.
Thank You and Trés Bon!