Energy & the Environment: a Way Forward for Coal
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Energy & the Environment: A way forward for coal - the Kemper project Ed Holland Mississippi Power President and CEO October 9, 2014 Kemper: 582-MW Integrated Gasification Combined Cycle facility with pre-combustion carbon capture How it works: Fully Integrated Design Liberty Mine Zero Liquid discharge: Process Water Output Byproducts Kemper: Redefining Energy Sustainability 25% Coal 75% • Fuel diversity Natural Gas • Fuel price stability • Secure, reliable power 2020 energy mix without Kemper • Zero liquid discharge 20% 25%Coal 20% • Captured carbon used in enhanced Coal Lignite oil recovery 60% • Byproduct revenue Natural Gas * Includes unit retirement and fuel switch announcements (7/4/14) 2020 energy mix with Kemper * CO2 Utilization – Commodity not Waste Kemper: Why it works in Mississippi • Lignite mine mouth – 31,000 acre mine site • Enhanced oil recovery – 60 mile CO2 Pipeline for EOR • Meridian treated effluent – 30 miles of treated effluent pipeline • Transmission – 70 new miles • Off Gulf Coast – 80% Current Generation on Gulf Coast Safety • Industry leaders in maintaining a safe workplace – through every area of the company • .54 Project Recordable Incident Rate – 3-5 times safer than Construction Industry Average • 28 Million Man-hours – 14,000 FTE for a year Economic Benefits • $1 Billion in Mississippi contracts • 12,000 direct and indirect jobs • 500 Mississippi companies • 500 permanent employees • $75 Million state and local taxes during construction • $30 Million state and local taxes annually in operation Project Current Status Construction • Essentially complete except for heat tracing & insulation. Support for startup and operations now through COD Startup • Gasifier first-fire is expected in the 4th quarter. Operations • Plant staff at 173, planning for 220 by COD. Operation and Maintenance training in progress. Team participation in startup and commissioning Combined Cycle • CC in service Aug. 9, 2014 Mine • Mine staffing at 120, estimated 220 at full operations. ~890,000 tons of lignite mined International Considerations for Advanced Coal Technologies 11 National Natural Gas Market Overview: World LNG Landed Prices Federal Energy Regulatory Commission • Market Oversight • www.ferc.gov/oversight World LNG Estimated September 2014 Landed Prices UKUK UK UK$ 8$8.75.7$58 .75 $ 6.60 Be BeBelgiulgiummlgiu m Canaport Korea Cove Point lgium$ 6.78 $ 2.78 $ 10.50 $ 2.44 $8$8.84$.88 4.99 Japan Spain Korea CoCovevePoPoinLtintake Charles Cove Point $13.10 $ 10.50 $4$4.50.50 $ 9.15 $ 3.4$04.4 0 KoKorearea China Altamira SpSpainaiSnpain JapanJapan India $1$12.42.400 $ 10.10 $ 10.18 $9$9.05.0$59.15 $1$12.42.4Japa0n0 AltamiraAltamira $ 10.15 LaLakLeakeChkaeChCha arlesrlersles Altamira $13.10 $3$3.9$63.9.936 $4$4.6$04.6.570 IndiaIndiIndiaa Rio de Janeiro $1$11.$511.1.5 555 $ 9.92 Bahia Blanca $ 10.20 Source: Waterborne Energy, Inc. Data in $US/MMBtu Note: Includes information and Data supplied by IHS Global Inc. and its affiliates (“IHS”); Copyright (publication year) all rights reserved. Updated August 2014 3024 "We're going to need not 10, maybe 100 more of these plants across the country." – U. S. Secretary of Energy Ernest Moniz, Nov. 8, 2013 .