European CO 2 Technology Centre Mongstad TCM. Status pr By Tore Amundsen Project Manager Gassnova SF

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European CO 2 Technology Centre Mongstad TCM Status pr 2.04.09 By Tore Amundsen Project Manager Gassnova SF

TCM Ambitions 2 Develop CO 2 -capture technologies capable of wide national and international deployment Reduce cost and technical, environmental and financial risks related to large scale CO 2 -capture Test, verify and demonstrate CO 2 -capture technology owned and marketed by Vendors Encourage the development of a market for such technology

TCM on track Start-up in 4Q 2011 Planning is completed except negotiation of EPC contract with Alstom for chilled ammonia Site preparation and other civil work is ongoing Aker Clean Carbon has been awarded contract to supply the amine plant Agreements with Mongstad Refinery concluded The State and StatoilHydro decided in December to commence further preparations TCM DA will be established before sanction Parliament expected to pass bill on 7 May to sanction investment Formal project sanction in May 2009 by TCM DA owners Start-up of TCM plant planned for 4rd quarter 2011

TCM on track Start-up in 4Q 2011 (Cont.) Work in the intermediate period financed by the State and StatoilHydro Capital expenditure estimate per 31.3.09 at NOK 4,2 billion excl VAT StatoilHydro s share of the investment will be 20 % and the State s 80% The State will dilute its share by inviting industrial partners Present partners have right of first refusal then others will be approached The state offer s industrial partners to invest approximately 2,4 % each of capital expenditure budget and operating costs

TCM Overall Concept Cleaned flue gas to atmosphere CO 2 CHP DCC Amine Plant CO 2 to atmosphere RCC DCC Local Chilled Ammonia Plant CO 2 to atmosphere Utilities New Sea Water Cooling System Utilities from Mongstad Return streams to Mongstad

Design Capacities CHP CO 2 3,5% 58 000 Sm 3 /hr 31 ktonnes CO 2 /yr Max 70 000 Sm3/hr Amine (58 000 / 45 000 Sm 3 /hr with CHP/RCC) 3.5% CO 2 : 58 000 CHP, 25 ktonnes CO 2 /yr Max 12.9% CO 2 : 45 000 RCC, 73 ktonnes CO 2 /yr ~100 000 t/yr CO 2 to atmosphere RCC CO 2 12,9% 50 000 Sm 3 /hr 96 ktonnes CO 2 /yr Max 60 000 Sm3/hr Carbonate (50 000 Sm 3 /hr with CHP & RCC) 3.5% CO 2 : 50 000 CHP, 22 ktonnes CO 2 /yr Max 12.9% CO 2 : 50 000 RCC, 82 ktonnes CO 2 /yr Simultaneous operation is possible Feed gas flexibility Smallest duct sizes Meets 100 000 t/yr production Exhaust Gas Recycling with CO 2 recycle (5% - 9% CO 2 ) Blue case: 22 + 73 = 95 ktco2/yr Green case: 82 + 25 = 107 KtCO2/yr

European CO2 Test Centre Mongstad layout CHP Flue gas Tie-in and steam supply Area for 3rd technology Seawater cooling system RCC Flue gas Tie-in Amine plant Carbonate plant Utilities Admin. and control complex Scale 100 m Substation

Mongstad site 8 TCM RCC CHP

Amine Technology 9 Advantages: Known technology TCM Objective: Test and qualify improvements of existing technology Pilot units and references Simple, flexible, independent Improvement potential Disadvantages: High energy demand Waste and corrosion Large and costly equipment Uncertain HSE effects

TCM Amine Plant Ilustration 10 Absorber Strippers

Chilled Ammonia Technology 11 Advantages: Decreased steam load compared to MEA Exceeds CO2 capacity of MEA High pressure regeneration Low cost reagent Expected good HSE performance (little waste and harmful emissions) TCM objective: Qualify new CO2 capture technology Gas Water Rich Solution Lean Solution CO2 REF Stripper Clean G6 Combustion From FGD Gas G7 Steam Pressurized CO2 Disadvantages Immature (high risks) NH3 emissions - must be avoided Equipment must handle solids High refrigeration load Slow kinetics Bleed Cooling G1 DCC2 DCC1 REF G2 G3 Booster Fan Refrigeration REF System G4 Water Wash G5 REF CO2 Absorber CO2 Regenerator Cooling Steam Cooling and Cleaning CO 2 Absorption CO 2 Regeneration

Chilled ammonia plant

CAPEX and OPEX Total CAPEX estimated at BNOK 4.2 per 31.3.09 (Ex VAT) Infrastructure and interfaces to refinery and power plant represents nearly 2/3 of capex OPEX estimated to be MNOK 150 250 annually Major opex items are steam, electricity and personnel costs

RCC Tie-in

Pipe racks

Seawater Cooling System

TCM Organisation TCM DA Company Meeting (Steering Committee) Technology Committee (Partners) Managing Director TCM Project Manager Operator Admin. Staff Site Team Manager Team Technology Manager Operations Manager Team