OF PIPEDREAMS AND PIPELINES

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OF PIPEDREAMS AND PIPELINES 2007 GASIFICATION TECHNOLOGIES CONFERENCE OCTOBER 4 7, 2007 SAN FRANCISCO, CA KLAUS LAMBECK JASON CROSS OHIO POWER SITING BOARD

WHAT WOULD ENABLE A VIABLE MIDWEST MARKET Multiple plants in multiple states Federal, State, and Local incentives Defining common objectives i. EPAct 05 Military Fuel Perspective ii. Carbon Sources for Gasification iii. Carbon Credits A MIDWEST STATES MOU

HI CA AK 3 OR Operating & Publicly Announced Gasification Plants in North America WA NV ID 2 AZ UT MT WY NM 7 CO Planned Plants - 67 Operating Plants - 9 ND 2, SD NE TX KS OK 6, 9 MN IA MO AR LA WI 2, 3 IL 8 MS 2 IN TN MI 2, KY AL Ohio Power Siting Board Canada 6, GA WV NC SC FL VA NY VT NH PA NJ OH 2 DE 4, 2 3, 3 MD MA CT ME RI, SOURCE: NETL

POTENTIAL NOT ONLY GASIFICATION BUT ALSO EXISTING ELECTRICITY PRODUCTION INFRASTRUCTURE AS WELL AS NEW PLANTS PLUS, ETHANOL PLANTS

Existing CO2 Pipelines in Relation to Gasification Projects Ohio Power Siting Board Gasification Projects Existing CO2 Pipelines

Extensions and Existing CO2 Pipelines in Relation to Gasification Projects Gasification Projects Existing CO2 Pipelines Extension of Existing CO2 Pipelines

STAGES WHICH WILL LEAD TO SEQUESTRATION FOR CENTURIES a) EOR pipeline infrastructure b) Finish deep injection R&D i. Shale ii. Coal Seams iii.saline Formations iv.basalt

Extensions and Existing CO2 Pipelines in Relation to Gasification Projects & CO2 EOR Sinks Gasification Projects Existing CO2 Pipelines Extension of Existing CO2 Pipelines Oil & Gas Fields

Extensions and Existing CO2 Pipelines in Relation to Gasification Projects & Basalt/Shale CO2 Sinks Gasification Projects Existing CO2 Pipelines Extension of Existing CO2 Pipelines Basalt & Shale Formations

Extensions and Existing CO2 Pipelines in Relation to Gasification Projects & CO2 ECBM Sinks Gasification Projects Existing CO2 Pipelines Extension of Existing CO2 Pipelines Coal Basins

Extensions and Existing CO2 Pipelines in Relation to Gasification Projects & Saline Aquifer CO2 Sinks Gasification Projects Existing CO2 Pipelines Extension of Existing CO2 Pipelines Saline Basins

More stages Local wells (to support efforts as indicated ( b under Supported by state and federal regulatory framework

WHAT WILL IT TAKE Political Will Industry Determination State and Local support Wall Street Investor Community by in and support

THE QUESTION OF LIABILITY IT IS PART OF THE PRODUCERS BUSINESS OBLIGATION STATES NEED TO DETERMINE A THRESHHOLD LEVEL OF FISCAL CONSEQUENCES AT WHICH THE STATE WILL SERVE AS AN INSURANCE AGENT FOR LONG TERM (UNLIKELY) INCIDENTS THE FEDERAL GOVERNMENT NEEDS TO PROVIDE INSURANCE PROTECTION; JUST LIKE THE RE INSURANCE INDUSTRY

SITING Just look at Ohio The ability to work with other political jurisdictions Bonding ability for projects and the promise for regional co ordination

SITING 2 Route selection and certification in the larger (regional) picture is possible and advisable Common interest by high sulfur States can lead to a real solution

END MARKETS Immediate markets are dictated by the availability of sinks in the vast oil production arena Future sequestration will be more localized as the long term compliment to current availabilities

So: As for pipe dreams a fantastic idea, vain hope or plan, etc. such as an opium smoker might have ( Webster ) This concept is not anything of this nature..not true it is a fantastic idea This is a real chance to implement needed sequestration and a win/win as demand for CO2 is prevalent and growing being part of the supply chain And this paves the road for the continuing development of viable gasification projects

SO? We need to work as partners to get this implemented in the near term in order for it to be not a pipedream of opium smokers but a pipeline