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CO 2 Capture at the Kemper County IGCC Project 2011 NETL CO 2 Capture Technology Meeting

Kemper County IGCC Overview 2x1 Integrated Gasification Combined Cycle (IGCC) 2 TRansport Integrated Gasifiers (TRIG ) 2 Siemens SGT6-5000F CTs 1 Toshiba Steam Turbine (Tandem Compound Double Flow) 582 MW peak and 524 MW on syngas Heat Rate 11,708 Btu/kWh (29.5% HHV Efficiency w/ CO 2 control and 40+% moisture coal) Selexol for H 2 S and CO 2 removal 65+% CO 2 capture (~800 lb/mwh emission rate) Mine Mouth Lignite Owner & Operator: Mississippi Power Over $2 billion capital investment Commercial Operating Date: May 2014 Use treated effluent from Meridian as makeup water By-Products (TPY) ~3,000,000 - Carbon dioxide used for EOR ~135,000 - Sulfuric acid ~20,000 - Ammonia Kemper Lignite Composition Average Min Max Heat Content btu/lb 5,290 4,765 5,870 Moisture % 45.5 42 50 Ash % 12.0 8.6 17 Sulfur % 1.0 0.35 1.7 Plant Site

Proposed Kemper County IGCC Project Map Plant Site ~70 miles transmission ~ 60 miles CO 2 pipeline (for EOR) Meridian ~5 miles natural gas pipeline ~31,000 acre mine site ~2,900 acres plant site ~ 30 miles treated effluent line New CO 2 Pipeline

TRIG TM Attributes/Advantages Simple, well established design Based on technology in use for 70 years Either Air- or Oxygen-blown Air for power Oxygen for liquid fuels and chemicals High Reliability Design Non-slagging design: Provides 10-20 year refractory life, Eliminates black water system Provides non-fouling syngas cooler operation No burners to fail and be replaced Dry dust removal eliminates gray water system Lower Fuel Costs Coarse, dry coal feed allows: Fewer, lower power pulverizers, and Less drying than other dry-feed gasifiers Cost-effective using high moisture, high-ash, low rank coals (PRB and lignite). Excellent Environmental Performance Lower water use compared to pulverized coal (PC) Excellent emissions performance Easier to permit compared to PC Lower cost carbon capture compared to PC

Summary Flow Diagram COAL RECYCLE GAS COMPRESSION RECYCLE GAS WATER FROM COAL DRYING SWEET SYNGAS MERCURY REMOVAL CO 2 COAL MILLING & DRYING HIGH PRESSURE COAL FEEDING TRANSPORT GASIFIER SYNGAS HIGH TEMPERATURE SYNGAS COOLING PARTICULATE COLLECTION WATER GAS SHIFT REACTION LOW TEMPERATURE SYNGAS COOLING CO 2 AND SULFUR REMOVAL CO 2 CO 2 COMPRESSION AND DRYING Gasifier Island AIR COARSE G-ASH PROCESS AIR COMPRESSOR HP BFW HP STEAM ANHYDROUS AMMONIA FINE G-ASH AMMONIA RECOVERY SOUR WATER SOUR WATER TREATMENT SWEET SYNGAS VENT GAS ACID GAS WSA PROCESS SULFURIC ACID TO STACK HEAT RECOVERY STEAM GENERATOR GAS TURBINE POWER Combined Cycle CONDENSATE CONDENSER HP, SUPERHEATED STEAM STEAM TURBINE POWER

Evolution of Acid Gas Removal at Kemper County IGCC Originally, no CO 2 removal. H 2 S removed with amine. With CO 2 removal added to scope, design team explored three main options based on a physical solvent: 25% CO 2 removal (1,500 lb CO 2 /MWh). Case 1: No WGS, Selexol for sulfur removal, amine for CO 2 Case 1A: One stage of WGS, with Selexol for all acid gas removal. 50% CO 2 removal (1,000 lb CO 2 /MWh). Case 2: One Stage WGS with steam injection with Selexol for AGR. Case 2A: Case 1A retrofitted to Case 2 in 2020 Case 2B: Case 1 retrofitted to Case 2 in 2020. 65% CO 2 removal (800 lb CO 2 /MWh). Case 3: Two stages WGS with steam injection and Selexol for AGR.

Physical Solvent Selection The operating costs for an amine were too expensive, due to high steam usage for regeneration. Therefore, a physical solvent was selected. Selexol Rectisol Volatility Low High Solvent Price High Low Emissions Concern No Yes Both good options, but Selexol was chosen.

Commercial Selexol Plant CO 2 Absorber H 2 S Absorber Regenerator Concentrator Reboiler Flash Drums Lean-Rich Exchanger

CO 2 Capture Scheme for 800 lb/mwh Two Stages WGS Sweet Syngas Lean Solvent CO 2 Absorber Semi-Lean Chiller Selexol Physical Solvent Refrigerated to 40 F Semi-Sweet Syngas Lean Chiller Semi-Lean Solvent CO 2 Recycle Compressor HP Flash CO 2 Recycle CO 2 Captured H 2 S Absorber Loaded Solvent MP Flash Sour Syngas Flash Gas LP Flash Carbon Capture: >65% Rich Solvent Lean/Rich Exchanger CO 2 Emissions: 800 lb CO 2 /MWh Yield: >3 MM Tons/yr CO 2 CO 2 compressed and used for EOR Acid gas converted to sulfuric acid via WSA process. Lean Solvent H 2 S Concentrator Recycle Gas LP Flash Gas Flash Drum H 2 S Regenerator Flash Gas Compressor Lean Solvent Condenser Flash Drum Reflux Acid Gas Steam-Heated Reboiler Steam Heat To WSA

Water Supply Pond Water Treatment Warehouse Process Air Compressors Gasifier Structure: Gasifiers, Syngas Cooling/Filtration Control/Admin Bldg. Coal Loading Hoppers Coal Prep Coal Dome Flare Electrical Switchyard Sulfuric Acid Production 2 x 1 Combined Cycle Sulfur/CO2 Removal Cooling Towers

HRSGs Nitrogen Plant CO 2 and H 2 S Removal Gas Turbines Steam Turbine Air Compressors HP Coal Feeders Gasifiers (2) Sulfuric Acid Production Ammonia Production Fluid Bed Dryer System

Flare Derricks Sour Water/NH 3 Recovery System H 2 S Absorbers (2) CO 2 Absorbers (6) Dry Ash Filters (4) Particulate Collection Device (PCD) Gasifiers (2) Crushed Coal Silos AGR Regenerators (2) CO 2 Compressors HP Coal Feeders (12) Main Syngas Coolers (4) Coal Mills (6) Back-pulse Surge Drums Mercury Adsorbers NH 3 Removal CO 2 Flash Drums (8) Admin. Bldg. Syngas Humidifiers COS Hydrolysis WGS Reactors Steam Turbine Warehouse Process Air Compressors (4)

Project Status On June 3, 2010, the Mississippi Public Service Commission certified the project. Mississippi Power has entered into CO2 offtake agreements with Denbury Onshore and Treetop Midstream Services, LLC MDEQ issued the final PSD permit on March 9, 2010. Procurement: All major equipment awarded. Equipment fabrication underway. First major pieces arriving on site. Construction: Site cleared and graded. Foundation and pedestal work underway. Sumps, duct banks, underground piping being installed.

Kemper Procurement Update 2 nd Quarter - 2011 Top of CO 2 Absorber Base of CO 2 Absorber Base of Concentrator Lean/Rich Exchanger Plates

Kemper County IGCC Construction Update 1 st Quarter - 2011 Storm Drains Electrical Duct Banks Fire Protection Piping Began Installation of Underground Electrical and Mechanical Systems

Kemper County IGCC Construction Update Steam Turbine Columns 2 nd Quarter - 2011 AGR Area Sumps 96 Circ. Water Pipe Deep Foundations/ Major Equipment Foundation Installation/U/G Utilities

Kemper County IGCC Construction Update End of 2 nd Quarter - 2011 Steam Turbine Operating Deck Circulating Water Pipe Plant Site as of July 2011 Gasifier Pile Caps/ Deep Foundation Installation

Summary Physical solvents were selected for the Kemper design due to reduced steam usage. The facility will use Selexol coupled with two stages of watergas-shift, resulting in a CO 2 emission rate of 800 lb/mwh (a nominal 65% reduction). 3 million tons/year of CO 2 captured at the Kemper site will be used for EOR, and will meet offtaker specifications. Commercial operations are expected in May 2014.