OPERATIONAL EXPERIENCE AND CURRENT DEVELOPMENTS.

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PUERTOLLANO Puertollano IGCC IGCC Power Plant POWER - ELCOGAS PLANT. OPERATIONAL EXPERIENCE AND CURRENT DEVELOPMENTS. International Freiberg Conference on IGCC & XtL Technologies 8-12 May, 2007 Freiberg, Germany Pedro Casero, Elcogas, S.A. 1

THE ELCOGAS COMPANY European company established in April 1992 to undertake the planning, construction, management and operation of a 335 MW ISO IGCC plant located in Puertollano (Spain) Electricidade de Portugal 4,3% Hidrocantábrico 4,3% Autocartera 0,2% ENEL 4,3% Babcock Wilcox Española 0,1% SIEMENS 2,5% Krupp Koppers GMBH 0,04% ENDESA GENERACIÓN 40,9% Iberdrola Generación 12,0% EDF INTERNATIONAL 31,4% 2

Process description HP Steam Heat Recovery Steam Generator Flue gas to stack Steam G STEAM TURBINE MP Steam 135MW ISO Coal Petroleum Coke Limestone HP Boiler Hot combustion gas Condenser Cooling tower Coal preparation MP Boiler Gasifier Raw Gas Filtration Water wash Sulfur Removal Clean syngas G N 2 Coal - N 2 Slag Quench Gas Fly ash Water to treatment Tail Gas Air O 2 Claus gas Sulfur Recovery GAS TURBINE 200 MW ISO O 2 Sulfur (99.8%) Air Separation Unit Waste N 2 Compressed air 3

Main design data Fuel COAL PET COKE FUEL MIX (50:50) Moisture (%w) 11.8 7.00 9.40 Ash (%w) 41.10 0.26 20.68 C (%w) 36.27 82.21 59.21 H (%w) 2.48 3.11 2.80 N (%w) 0.81 1.90 1.36 O (%w) 6.62 0.02 3.32 S (%w) 0.93 5.50 3.21 LHV (MJ/kg) 13.10 31.99 22.55 POWER OUTPUT EFFICIENCY (LHV) GAS TURBINE (MW) STEAM TURBINE (MW) GROSS TOTAL (MW) NET TOTAL (MW) 182.3 135.4 317.7 282.7 GROSS NET 47.12% 42.2% EMISSIONS g/kwh mg/nm 3 (6% Oxygen) SO 2 0.07 25 NO x 0.40 150 Particulate 0.02 7.5 Power output and emissions 4

Raw and clean gas data (2006 update) Raw Gas Clean Gas Actual average Design Actual average Design CO (%) 59.26 61.25 CO (%) 59.30 60.51 H (%) 2 21.44 22.33 H (%) 2 21.95 22.08 CO 2 (%) 2.84 3.70 CO 2 (%) 2.41 3.87 N (%) 2 13.32 10.50 N (%) 2 14.76 12.5 Ar (%) 0.90 1.02 Ar (%) 1.18 1.03 S (%) 0.81 1.01 S (ppmv) 3 6 COS (%) 0.19 0.17 COS (ppmv) 9 6 HCN (ppmv) 23 38 HCN (ppmv) - 3 5

Emissions in NGCC and IGCC modes Natural gas (mg/nm3 at 6% O2 dry) 350,0 300,0 291,7 EEC 88/609 ELCOGAS Permit limits ELCOGAS 2006 average 250,0 200,0 223,8 150,0 100,0 50,0 0,0 29,2 2,9 4,2 0,5 SO2 NOx Partículas NGCC mode 700 600 500 400 400 Coal gas (mg/nm 3 at 6% O 2 dry) 650 500 EU Directive 88/609/EEC EU Directive 2001/80/EEC ELCOGAS Permit limits ELCOGAS 2006 average 300 200 200 200 135,9 100 0 70,2 50 50 25 0,4 SO2 NOx Partículas IGCC mode 6

Power plant main milestones 75.000 EOH Gas Turbine major overhaul 1996 Severe fault in main generation transformer of GT 50.000 EOH Gas Turbine major overhaul 2002 2001 2000 1999 1998 1997 2005 2004 2003 2008 2007 2006 March 07: New record on syngas: 958 hours Dec 06: 14,673 GWh (9,184 GWh with coal gas) Mar 98-1 st Switch-over to syngas in the GT. 1 st production as IGCC Oct 96 - Commercial operation of CC with NG (1 st CC in Spain) 7

IGCC, NGCC and Total yearly production 2.500 2.000 NGCC GWh IGCC GWh 1,938 1.500 1,533 1,712 321 343 1,672 1,744 301 452 1,550 1,462 1,171 622 421 312 1.000 500 752 744 836 911 1.391 1.595 1.371 1.293 1.129 1.150 0 335 9 1998 1999 2000 2001 2002 2003 2004 2005 2006 year 8

Variable Cost of Electricity (2006) Fuel mode Fuel Heat rate (kj HHV /kwh) Fuel cost ( /GJ HHV ) Partial cost ( /MWh) Total cost ( /MWh) GNCC Natural gas 7,649 7.84 59.97 59.97 IGCC Coal 2,934 2.19 6.43 Petcoke 5,994 1.44 8.63 NG aux 376 7.84 2.95 18.01 9

Variable Cost of Electricity vs Fuel cost evolution 10 9 59,97 Variable cost of electricity produced w ith NG 60 8 50 7 6 COST OF FUEL 5 /GJ HHV 30,71 29,37 35,34 40 VARIABLE COST OF ELECTRICITY 30 MWh/ 4 3 2 Cost of Natural 13,45 Cost of coal 14,55 Variable cost of electricity produced w ith coal- 18,01 15,85 20 10 1 Cost of pet coke 0 2003 2004 2005 2006 0 10

Availability 2006 Availability Planned Outages Unplanned Outages 100% 17,2 15,0 5,5 30,6 13,7 80% 16,9 17,8 60% 17,4 80,8 40% 65,0 68,0 20% 52,0 0% IGCC GASIFIER POWER BLOCK ASU 11

IGCC unavailability 2004-2006 START UP BURNER 7% FUEL FEEDING 7% QUENCH GAS CIRCULATION 6% COAL PREPARATION 2% WATER STEAM 30% GAS SATURATOR WATER STEAM 6% CYCLE 19% GAS TREATMENT 11% SULFUR RECOVERY 11% SLAGS 12% FLY ASH 14% COMBINED CYCLE 29% GAS TURBINE 75% PURE NITROGEN PRODUCTION 22% OXYGEN PRODUCTION 16% GASIFICATION 46% WASTE NITROGEN PRODUCTION 62% ASU 6% BOP 19% DCS 16% SERVICE SYSTEMS 6% ELECTRIC SYSTEMS 78%

Spanish Research Initiative in CO 2 Project title: Programme: Coordinator: Advanced technologies of CO2 conversion, capture and storage (PSE-CO2) Spanish National Energy Programme (Ministry of Education and Research) CIEMAT Status: Started on 2005. Target: Development of CO 2 capture technologies, allowing a sustainable use of coal for power production Development of conversion technologies that facilitate CO 2 capture Development of deep geological storage capacities for captured CO 2 Structure Composed by 5 sub-projects 13

PSE-CO2 S/1: Pre-combustion CO 2 separation technology Coordinator: Partners: Target: Rationale: Approach: ELCOGAS University of Castilla la Mancha, Empresarios Agrupados, Técnicas Reunidas, INCAR-CSIC, CIEMAT To validate at industrial, bench and laboratory scale the technologies of pre-combustion CO 2 capture associated to an IGCC Power Plant -To test the concept of CO 2 capture in a industrial IGCC plant -To help in the design of the next generation IGCC plant -To maintain the concept of innovation that Elcogas plays in Europe Assessment of commercial technologies for CO 2 separation (Pilot Plant Installation 1:50 scale) Assessment of appropriate technologies but still not commercially available for CO 2 separation (bench & laboratory scale) Budget: 19 M 14

CO 2 capture and production Pilot Plant pure tail gas : 99,9 % CO: 4 ppm Q: 1.987 Nm 3 /h PSA unit : 79,9 % CO: 4,9 % CO 2 : 0,05 % S: 0 ppm Q: 3.498 Nm 3 /h rich gas CO 2 to post-treatment : 53,7 % CO: 11,4 % CO 2 : 0,12 % Q: 1.511 Nm 3 /h Clean syn-gas : 21,9 % CO: 60,4 % CO 2 : 2,7 % COS: 12 ppm S: 0,2 ppm Q: 3.600 Nm 3 /h P: 20 bar T: 135 ºC 480ºC 310ºC REACTOR 1 REACTOR 2 350ºC 390ºC SHIFT conversion Electrical consumption:1.389 kw MP steam consumption: 4,5 t/h BP steam consumption: 19 t/h Refrigeration water: 320 t/h : 50,0 % CO: 3,1 % CO 2 : 37,5 % COS: -- ppm S: 8 ppm Q: 5606 Nm 3 /h : 50,0 % CO: 3,1 % CO 2 : 37,5 % COS: 0 ppm S: 8 ppm Q: 5.610 Nm 3 /h P: 16,4 bar GAS PREPARATION : 0,2 % CO: 0,01 % CO 2 : 99,8 % S: 21 ppm Q: 2.108 Nm 3 /h AMINES UNIT 15

P&ID Shift Converter Unit 16

Pilot Plant implementation Power Block Air Separation Unit Gasification unit Pilot Plant for CO 2 capture and production 17

Pilot Plant implementation 18

Spanish Research Initiative in Biodiesel Project title: Programme: Coordinator: Target: ELCOGAS ACTIVITY: Research Project on Biodiesel Support in Spain (PIIBE) Strategic National Consortia (Ministry of Industry) REPSOL-YPF Move Spain into vanguard of R&D in renewable biodiesel sector i) To reduce production cost down to those of gas-oil from petroleum ii) To expand availability of local raw materials Leader of Biodiesel production through gasification : to assess the viability of biodiesel production through biomass gasification execution of real co-gasification tests up to 10% with biomass (estimated biomass consumption of 3000 t during 2 years). Started in 2006. Budget: 900 k Orujillo (olive oil waste) Almond shells 19

PUERTOLLANO IGCC POWER PLANT. OPERATIONAL EXPERIENCE AND CURRENT DEVELOPMENTS. Thank you for your attention Pedro Casero, Elcogas, S.A. www.elcogas.es 20