Sustainable Energy Solutions from Clean Coal Indian Energy Forum Rebecca Kujawa Vice President Business Development March 1, 2012
Sustainable Energy Solutions from Clean Coal Key Discussion Points Coal C l Markets Clean Coal Technologies Sustainable Partnerships 2
Coal is the Power Energizing the World Our Energy Needs in Perspective: In Just One Day Global Population Will Increase By 210,000 300,000 Twitter Accounts Will Be Opened 650,000 People Open an Internet Account 160,000000 100,000 People Will Move to Cities in China and India New Cars Will Be Sold 19 Million Metric Tons of Coal Will Be Used 3
World is Experiencing an Enormous Wave of Energy Demand Extraordinary Global Growth by 2050 World population reaches 9 billion Electricity generation up 130% Steel production up 275% Global GDP up 270% 16 billion tons of coal used annually Guangzhou, China 4
Coal Powers Economies in Perfect Step with GDP Growth The Economic Miracle Powered By Coal Electricity fr rom Coal (TW Wh) 16,000 Global $100,000 Electricity 14,000 from Coal $90,000 $80,000 12,000 World GDP $70,000 10,000 $60,000 8,000 $50,000 6,000 $40,000 $30,000 4,000 $20,000 Wor rld GDP (trill ions of 2005 $) 2,000 1970 1980 1990 2000 2010 2020 2030 $10,000 000 Source: Developed from International Energy Agency World Energy Outlook (1995-2011); USDA 2011. 5
Global Coal Use Overtakes Oil as Largest Energy Source by 2035 Energy Dem mand (Mtoe) 6,000 5,000 4,000 3,000 2,000 1,000 0 Coal Demand Growth (2009 2035) 65% 2009 2035 Energy growth from coal: 30% greater than natural gas growth Double the oil growth Twice the current global use of nuclear, hydro and other renewables combined Source: International Energy Agency, World Energy Outlook 2011. 6
Coal the Long-Term Leader for U.S. Power Coal Powers More Than Nuclear and Gas Combined in 2035 2500 Coal 2000 Teraw watt Hours 1500 1000 500 Natural Gas Nuclear Other Hydro 0 1985 2010 2035 Coal Natural Gas Nuclear Hydro Other Source: International Energy Agency, World Energy Outlook 2011; Current Policies Scenario. 7
Clean Coal Technologies GreenGen Power Plant and Carbon Research Center; Tianjin, China 8
Advanced Technologies Drive Environmental Progress U.S. Emissions Decline 87% Since 1970 as Coal Use Nearly Triples 150% U.S. Coal-Based Power Generation 100% + 170% + 103% 50% GDP per Capita 0% -50% Lbs. Criteria Emissions/MWh from Coal - 87% -100% 1970 1975 1980 1985 1990 1995 2000 2005 2011 Source: USDA 2011; Energy Information Administration 2012; U.S. EPA Air Trends Data, 2012; Peabody analysis 2012. GDP in 2005 $. 9
Clean Coal Creates Green Jobs, Environmental Benefits Prairie State Energy Campus, Southern Illinois Prairie State expected to generate 1,600 MW for grid by May 2012 $1 billion invested in environmental technologies Emissions rate 80% below average of U.S. fleet CO 2 emissions rate 40% lower than oldest plants Generates $100+ million in annual economic benefits 450 jobs at plant and mine 10
Peabody Plan: Boosts U.S. Energy, Economic and Environmental Solutions Five Key Steps to Alleviate Energy Inequality Ensure at least half of new generation from coal Replace older coal plants with supercritical plants Develop 100 CCS projects in a decade Deploy coal-to-gas, coalto-chemicals, coal-toliquids Commercialize near-zero emissions i technology GreenGen Power Plant, Tianjin 11
Peabody Plan Energizes Economies With Green Coal Replacing traditional U.S. coal plants with supercritical plants would drive reindustrialization Benefit of constructing these plants includes: $1.2 trillion increase in economic output 5.9+ million jobs $505 increase in personal income $213 billion in tax revenues Source: International Energy Agency, Management Information Services and Peabody analysis. 12
China Leads Global Technology Path With GreenGen GreenGen: Among World s Largest Near-Zero Emissions Coal Plants Control Room at GreenGen in Tianjin, China Peabody only non- Chinese partner in GreenGen Multi-phase power project with carbon capture and carbon research center First 250 MW unit commissioning i i under way Expected on line first quarter 2012 13
Sustainable Energy Partnerships 14
Peabody is World s Largest Private-Sector Coal Company Leadership Position in U.S. Market and Growing Global Presence St.Louis DTA London Essen Ulaanbaatar Urumqi New Delhi Beijing Mining Operations Position Sales Reserves S. PRB #1 148 2,711 Midwest #1 30 3,650 Southwest #1 18 1,076 Colorado #1 7 230 Australia #5 25 1,185 Singapore Jakarta Balikpapan Abbot Point Dalrymple Bay Gladstone Newcastle Port Kembla Tons in millions. 2011 sales volumes and 2010 proven and probable reserves. 15
Peabody Uses Sustainable Development Model 129-Year Business Track Record World-Class Safety & Mining Methods $16 Billion in Annual Economic Impacts Best Practices in Training Peabody s P Proven Model M d l Global Environmental Excellence 7,500 Skilled WellPaying Jobs Innovative Cultural Practices 16
Recognized Globally for Setting the Environmental Standard Six Environmental Awards in the U.S. Australia and Asia in 2011 Former Ereen Mine in Northern Mongolia Directed Mongolia s first coal mine restoration project Developed a government standard for reclamation Used best practices pioneered on Black Mesa Spend $250 million on programs annually 17
Peabody Has History of Successful Mine Development Powde er River Ba asin 50 Years Ago Huge, untapped resource housing America s largest reserve 100-foot low-sulfur coal seams among cleanest in the world Landlocked, limited infrastructure, no mainline rail Today Largest U.S. coal region, leading U.S. production for two decades Provides fuel for one-third of U.S. electricity from one county Peabody s PRB flagship is world s largest and most productive coal mine Black Me esa 50 Years Ago Remote, landlocked region sparsely populated by traditional tribal people Sovereign nations own reserves and have able workforce Today 40+ year tribal partnership; created $12+ billion in economic benefits Model for sustainability recognized globally 18
Arizona Operations: $12+ Billion In Economic Benefits Over Time Lands Restored to a Condition More Than 10X as Productive as Native Lands 19
Quality of Restoration Important for Traditional Land Use We Will Leave Land in a Condition Equal to or Better Than We Found it. Collaboration with area residents promotes good range management Residents have access to productive reclaimed range under Peabody control Program provides framework for long-term sustainability of range
Mining Builds Communities Through Excellence in Education Peabody contributes $360,000 000 annually in Navajo and Hopi scholarships Peabody helped develop infrastructure to wire town of Forest Lake; award- winning program recognized nationally Virtual classroom contains 15 work stations with video conferencing & Internet access to high school 21
Sustainable Energy For the 21 st Century Coal is the sustainable energy solution for the long haul and clean coal technology is the path for green jobs and environmental goals. 22
Sustainable Energy Solutions from Clean Coal Indian Energy Forum Rebecca Kujawa Vice President Business Development March 1, 2012