NRG ENERGY, INC. / ALTER NRG CORP. Somerset Power Plant. GTC Annual Conference October 5-8, 2008

Transcription

1 NRG ENERGY, INC. / ALTER NRG CORP. Somerset Power Plant Refueling Through h Plasma Gasification GTC Annual Conference October 5-8, 2008

2 Confidentiality and Forward-Looking Statements This presentation is confidential and for authorized use only. Under no circumstances are its contents to be reproduced or distributed to the public, media or potential investors without written authorization. The information contained herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness. Certain statements in this disclosure may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this disclosure, such statements use such words as may, would, could, will, intend, expect, believe, plan, anticipate, estimate, and other similar terminology. These statements reflect the Corporation s current expectations regarding future events and operating performance and speak only as of the date of this disclosure. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed below and under Risk Factors in the Corporation s prospectus filed April 10, Although the forward-looking statements contained in this disclosure are based upon what Management believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this disclosure, and, subject to applicable securities laws, the Corporation assumes no obligation to update or revise them to reflect new events or circumstances. This disclosure may contain forward-looking statements pertaining to the following: capital expenditure programs; supply and demand for the Corporation s services and industry activity levels; commodity prices; income tax considerations; treatments under governmental regulatory regimes. The Corporation has provided cost estimates and resource conversion ratios for projects that are still in the early stages of development and are preliminary estimates only. No securities commission or other similar regulatory authority has passed on the merits of the securities described herein nor has any securities commission or similar regulatory authority reviewed this presentation and any representation to the contrary is an offense. All dollar figures are Canadian unless otherwise stated.

3 Introduction Alter NRG Corp. and NRG Energy, Inc. have teamed up to provide the world s first plasma gasification refueling of a coal fired power plant The revamped facility will gasify coal and biomass to provide cleaner energy with reduced emissions and Carbon footprint The project will generate 120 MW of power from the existing facility, and will extend the life of a legacy power plant Estimated costs are less than $200 million

4 Alter NRG Company Overview Company formed in 2006, headquartered in Calgary, Alberta, Canada Common shares listed on the TSX-V: NRG Significant assets: 468 million tonnes of coal reserves in Alberta Westinghouse Plasma Corporation (WPC) Strategic partnership with NRG Energy VISION: Become a Senior Energy Producer and a Leader in the Development of Environmentally Sustainable and Economically Viable Gasification Projects

5 Westinghouse Plasma Corporation Alter NRG purchased Westinghouse Plasma Corporation (WPC) in April 2007 WPC Strengths WPC plasma technology developed with an estimated $100 million in R&D funding Over 40 years experience in the design and application of plasma technology WPC has completed approximately 100 pilot tests on a multitude of feedstocks WPC Plasma Cupola

6 What is Plasma Gasification? What is plasma? Plasma is a highly ionized or electrically charged gas. An example in nature is lightning - capable of producing temperatures exceeding 7,000 C. What are the advantages of plasma? Increased temperature and higher degree of temperature control provides - Ability to gasify blended feedstock including waste - Increased control in the process - Reduced operating and capital costs What s the end product? Syngas can be used as a fuel to generate electricity it or steam, or used as a basic chemical building block in the petrochemical and refining industries. How efficient is it? Plasma Torches use 2% to 5% of the energy input Facility Exports 80% of the energy input into Syngas Gasification is not incineration Gasification does not involve combustion

7 Understanding Plasma Gasification Plasma Gasification can create more renewable energy than the projected energy from solar, wind, landfill gas and geothermal energies combined Georgia Tech Research Institute Plasma gasification is technically and commercially proven and has been in commercial operation processing MSW since 2002 The Westinghouse Plasma Torch has over 500, hours of operation in harsh environments Plasma gasification is versatile and can handle most feed stocks Plasma gasification is economically viable and competitive with any other form of solid waste or fuel management when properly sited with syngas, electricity, heat, and/or steam customers Plasma gasification generates baseload renewable power, providing needed clean energy and displacing fossil fuels

8 Application: Power Generation Wide Variety of Feedstocks Flexible Process Wide Variety of Products Steam Boiler Steam Turbine Combined Cycle Gas Turbine Electric Power Reciprocating Engine Low $ Cost Gasifier High $ Value

9 Plasma: Baseload Renewable Power Plasma Gasification can create more renewable energy than the projected energy from solar, wind, landfill gas and geothermal energies combined Georgia Tech Research Institute 24 States in the U.S. define waste-to-energy as a renewable source of energy Coal 22% Nuclear 8% Natural Gas 23% % of US Power Baseload Peaking Intermittent t Supply 1 Wind < 0.1% Solar < 0.4% WTE/Biomass 3.5% Coal Retrofits TBD Notes: 1. US Energy Information Administration, Renewable and Alternative Fuels, 2007

10 Power Plant Retrofits Market Drivers Environmental permits expiring retrofit or closure Retrofit less costly than new plant $1,500 to $1,800 per kw versus IGCC and supercritical coal plants of $3,000 to $6,000 per kw Existing site is retrofitted which has Quicker and easier permitting Key agreements, labor force Up to 45% biomass enables 45% carbon offsets Partnership With NRG Energy, Inc. In April 2007 Alter NRG Corp granted NRG Energy, Inc a five-year US license for WPC technology to retrofit coal fired power plants NRG Energy, Inc is a U.S. independent power producer (US$10 billion market cap) First retrofit project Somerset has received regulatory approval

11 Safe Harbor Statement NRG Energy, Inc. NYSE: NRG This Presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Forward-looking statements are subject to certain risks, uncertainties and assumptions and typically can be identified by the use of words such as expect, estimate, should, anticipate, forecast, plan, guidance, believe, will and similar terms. Such forward-looking statements include information i relating to plasma gasification i and the Somerset Power Station. Although NRG Energy, Inc. (NRG) believes that these expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, hazards customary in the power industry, weather conditions, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, changes in government regulation of markets and of environmental emissions, the condition of capital markets generally, and the inability to implement value enhancing improvements to plant operations and companywide processes. NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new g p y g, information, future events or otherwise. The foregoing review of factors that could cause actual results to differ materially from those contemplated in the forward-looking statements included in this Presentation should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the Securities and Exchange Commission at

12 NRG: Portfolio with Scale and Diversity Ranked in Fortune 500 as 3 rd Fastest Growing Co, (July 2007) Platt s 2007 Recipient of Energy Company and Industry Leader of the Year Approximately 23,000 MW, Primarily il in Four Domestic Regions Northeast Western Gas 2.1GW 100% Oil 3.7 GW 53% Gas 1.4 GW 20% Coal 1.9 GW 27% Gas 5.5 GW 51% Texas Coal GW Nuclear 1.2 GW 11% South Central Coal 1.5 GW 52% Gas 1.4 GW 48% Combined Scale 1 Nuclear 1.2 GW 5% Coal 7.5 GW 33% 38% Gas 10.5 GW 46% Oil 3.7 GW 16% Total 22.9 GW 1 MW data as of December 31, 2007 Asset scale and diversity of fuel and location provide value creation opportunities

13 Somerset Power LLC Somerset Station Plant Highlights Location: Somerset, MA Facility: Pulverized Coal Utility Station; 380MW Total; 6 Steam Turbine Units; 2 Aircraft Derivative Peaking Units; Now IPP Merchant Plant Older Units Retired in Place Date Constructed: Site: 38 acres, Taunton River Active: Unit 6, 120 MW, 1959 Bit & Sub-Bit Coal, No. 6 FO, SNCR, Gas Re-burn, SOFA & CCOFA, ESP Active: Jet 2, 25 MW, 1972

14 Somerset Station - Unit 6

15 Somerset Station Coal Cargo Discharge

16 Somerset Station Coal Storage

17 Environmental Driver Massachusetts Powerplant Rule (310 CMR 7.29), 2001; 4 Primary Pollutants SO 2 NO x Hg CO 2 (Transition to RGGI) Economics of APC Retrofit Unfavorable Repower or Shut Down by 1/1/2010; Technology & Fuel Neutral, 7.29 & RGGI Compliant Plasma Gasification Permits Issued 1/25/2008 represents NRG s commitment to represents NRG s commitment to environmentally responsible power generation

18 Carbon Reduction Biomass & Renewable Energy Credits (RECs) Biomass; carbon neutral feedstock; self-offsetting up to 35% solid fuel clean biomass, plus 10% liquid biodiesel; 45% total on Day One Displace greenhouse gas (CO 2 ) emissions from coal Cap annual TPY CO 2 from non-renewable fuel Permit authorizes alternative biomass feedstock sources Green wood; (qualifies for RECs) Urban tree trimmings; (qualifies for RECs) Liquid biodiesel; (qualifies for RECs) Construction and demolition wood residue (CDW) requires Beneficial Use Determination (BUD); (potential future REC qualification) Paper cubes; (potential future REC qualification) RECs; Under MA Renewable Portfolio Standard (RPS) add considerable value to project and meet increased demand d for renewable energy mandates Up to 45% biomass enables Up to 45% biomass enables 45% carbon neutral self-offsets

19 Plasma Gasification Process Somerset Unit 6 Refueling

20 Emission Limits for the Syngas Re-fueled Unit 1-hr (a) lb/mmbtu Monthly lb/hr NOx CEMs SO CEMs CO CEMs Basis VOC EPA Methods 25A and 19 PM None 103 EPA Method 5 PM None 103 EPA Method 5 (PM 2.5 = PM 10 ) TSP None 103 EPA Method 5 Pb None EPA Method 12 or 29 H 2 SO None 3.85 EPA Method 8 HF None None None - NH None 10.1 EPA CTM 27 Hg 2.4 x 10-7 None 3.1 x 10-4 EPA Method 29

21 Somerset Project Permitting Timeline 12/06: Application Submitted 9/07: Draft Permits Issued 10/07: Public Hearing 01/08: Received Approved Permits; Permit to Construct t & Revised ECP 02/08: Conservation Law Foundation (CLF) filed Appeal 06/08: CLF Appeal denied by Adjudicatory Judge 08/08: DEP Commissioner Upholds Judge s Decision 09/08: CLF Filed Motion Requesting DEP Reconsideration 09/08: Somerset Power Filed Motion o Requesting Reconsideration o Denial

22 In Summary: 8 Key Project Points From a Technology Perspective: Introduces a viable new transfer technology to the power generation industry via WPC Plasma Gasification; Results in cost savings through use of existing facility infrastructure and revenue potential from low value solid fuels; Provides fuel optionality and incremental revenue through use of renewable fuels; and, Offers the potential for greater, broad-based application nationwide. From an Emissions Perspective: Has no increase in the potential to emit any criteria air pollutant; NOx, SO 2, PM, PM 10, PM 2.5, and Pb; Reduces the potential emissions of non-criteria air pollutants; HCL, H 2 SO 4, NH 3, and Hg; Eliminates conventional coal combustion production of fly ash and bottom ash; and Offers a reduction in the CO 2 footprint through use of renewable fuel offsets in lieu of fossil fuel usage.

23 NRG Energy, Inc. Alter NRG Corp. 211 Carnegie Center Suite 700, 910 7th Avenue S.W. Princeton, NJ Calgary, Alberta T2P 3N8 Phone: Phone: Fax: Fax: NYSE: NRG TSX-V: NRG Please visit Westinghouse Plasma Corporation at Booth # 36 in the Exhibit Hall