UPDATE ON THE KEMPER COUNTY IGCC PROJECT Gasification Technologies Conference

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UPDATE ON THE KEMPER COUNTY IGCC PROJECT 2012 Gasification Technologies Conference

Kemper County IGCC Overview 2x1 Integrated Gasification Combined Cycle (IGCC) 2 Transport Gasifiers 2 Siemens SGT6-5000F CTs 1 Toshiba Steam Turbine 582 MW peak and 524 MW on syngas Heat Rate: 12,150 Btu/kWh 28.1% HHV Efficiency w/ CO 2 control and >40% moisture coal UOP s Selexol Process for H 2 S and CO 2 removal Haldor Topsøe s Wet Sulfuric Acid for H 2 SO 4 production. 65% CO 2 capture (~800 lb/mwh emission rate) Mine Mouth Lignite Plant Site Owner & Operator: Mississippi Power Over $2 billion capital investment Commercial Operating Date: May 2014 By-Products (TPY) ~3,000,000 - Carbon dioxide used for EOR ~135,000 - Sulfuric acid ~20,000 - Ammonia Kemper Lignite Composition Average Min Max Heat Content btu/lb 5,290 4,765 5,870 Moisture % 45.5 42 50 Ash % 12.0 8.6 17 Sulfur % 1.0 0.35 1.7

TRIG TM Attributes/Advantages Simple, well established design Based on technology in use for 70 years. Either Air- or Oxygen-blown Air for power. Oxygen for liquid fuels and chemicals. High Reliability Design Non-slagging design: Provides 10-20 year refractory life. Provides non-fouling syngas cooler operation. No burners to fail and be replaced. Dry dust removal eliminates gray water system. Lower Fuel Costs Coarse, dry coal feed allows fewer, lower power pulverizers. Cost-effective using high moisture, high-ash, low rank coals (PRB and lignite). Excellent Environmental Performance Lower water use compared to pulverized coal (PC). Excellent emissions performance. Easier to permit compared to PC. Lower cost carbon capture compared to PC.

Summary Flow Diagram COAL RECYCLE GAS COMPRESSION RECYCLE GAS WATER FROM COAL DRYING SWEET SYNGAS MERCURY REMOVAL CO 2 COAL MILLING & DRYING HIGH PRESSURE COAL FEEDING TRANSPORT GASIFIER SYNGAS HIGH TEMPERATURE SYNGAS COOLING PARTICULATE COLLECTION WATER GAS SHIFT REACTION LOW TEMPERATURE SYNGAS COOLING CO 2 AND SULFUR REMOVAL CO 2 CO 2 COMPRESSION AND DRYING Gasifier Island AIR COARSE G-ASH PROCESS AIR COMPRESSOR HP BFW HP STEAM ANHYDROUS AMMONIA FINE G-ASH AMMONIA RECOVERY SOUR WATER SOUR WATER TREATMENT SWEET SYNGAS VENT GAS ACID GAS WSA PROCESS SULFURIC ACID TO STACK HEAT RECOVERY STEAM GENERATOR GAS TURBINE POWER Combined Cycle CONDENSATE CONDENSER HP, SUPERHEATED STEAM STEAM TURBINE POWER

Kemper County IGCC Timeline & Milestones 2009 2010 2011 2012 2013 2014 3 rd 4 th 1 st 2 nd 3 rd 4 th 1 st 2 nd 3 rd 4 th 1 st 2 nd 3 rd 4 th 1 st 2 nd 3 rd 4 th 1 st 2 nd 3 rd FEED Detail Design Major Procurement Sitework & U/G Piling/Caissons Foundations GI General Contractor CC General Contractor Startup COD 5/2014

Overall Project Status Mississippi Power has entered into offtake agreements with Denbury Onshore and Treetop Midstream Services, LLC for CO 2 and with Martin Product Sales, LLC for sulfuric acid and ammonia. Engineering: Detailed engineering in final stages. Procurement: All major equipment awarded. Equipment fabrication underway. First major pieces arriving on site. Construction: Foundation and underground work almost complete. Large equipment, pipe racks, and major structures currently being installed. Admin./warehouse structures complete. Operations: Planning, staffing, and training underway.

Kemper County IGCC Construction Status: Infrastructure Plant Site ~70 miles transmission. East West 230 kv complete, station energized. ~ 60 miles CO 2 pipeline (for EOR). 30% complete. ~5 miles natural gas pipeline. Complete. ~31,000 acre mine site. Grading complete. Dragline assembly has begun. ~2,900 acres plant site. Major earthwork complete. ~ 30 miles treated effluent line Complete. Meridian New CO 2 Pipeline

Water Supply Pond Water Treatment Warehouse Process Air Compressors Gasifier Structure: Gasifiers, Syngas Cooling/Filtration Control/Admin Bldg. Coal Loading Hoppers Coal Prep Coal Dome Flare Electrical Switchyard Sulfuric Acid Production 2 x 1 Combined Cycle Sulfur/CO2 Removal Cooling Towers

HRSGs Nitrogen Plant CO 2 and H 2 S Removal Gas Turbines Steam Turbine Air Compressors HP Coal Feeders Gasifiers (2) Sulfuric Acid Production Ammonia Production Fluid Bed Dryer System

Flare Derricks Sour Water/NH 3 Recovery System H 2 S Absorbers (2) CO 2 Absorbers (6) Dry Ash Filters (4) Particulate Collection Device (PCD) Gasifiers (2) Crushed Coal Silos AGR Regenerators (2) CO 2 Compressors HP Coal Feeders (12) Main Syngas Coolers (4) Coal Mills (6) Back-pulse Surge Drums Mercury Adsorbers NH 3 Removal CO 2 Flash Drums (8) Admin. Bldg. Syngas Humidifiers COS Hydrolysis WGS Reactors Steam Turbine Warehouse Process Air Compressors (4)

Construction Progress Early Fall 2011

Construction Progress Early Fall 2012

Kemper County IGCC Construction Update Gasifier Structure Combined Cycle Area Gas Clean-Up Lignite Handling

Kemper County IGCC Construction Update HRSGs and Steam Turbine Combustion Turbine Spring 2012 Installed Large Equipment in Combined Cycle Area

Kemper County IGCC Construction Update Summer 2012 Installed First Sections of Gasifier

Kemper County IGCC Construction Update CO 2 Absorber Installation CO 2 Absorber and Gasifier Structure Latest Work - Summer 2012 Coal Silos

Summary The Kemper County IGCC will be the first commercial offering of the TRIG TM gasification process. Construction is progressing well, both with site infrastructure and with major process components. Project remains on schedule with commercial operations expected in May 2014. When complete, Kemper will capture approximately 3 million tons/year of CO 2, resulting in CO 2 emission rates comparable to those of a natural gas combined cycle unit.