c. tynan - texas clean energy project (tcep)

7/28/2019 C. Tynan - Texas Clean Energy Project (TCEP)

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Texas Clean Energy Project

RECS Birmingham, ALJune 2013

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TCEPOverview

An integrated gasification combined cycle (IGCC) fertilizer and power plantsited in West Texass Permian Basin

Relies completely on technologies and components already proven incommercial operation

Will integrate proven gasification and carbon capture technologies to achieve acarbon capture rate of 90%

Will achieve state-of-the-art reduction in conventional pollutants such as Hg,NOx, SOx and particulate matter

The Project utilizes every component of the coal and atmospheric air runthrough the plant to create revenues

The Department of Energy granted TCEP a total of $450 million as acompetitive cash award


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WhatMakesaProject

Financeable

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Project Finance:

Non-recourse debt financing of thedevelopment, construction or operation ofa project where such debt is:(i) typically of a substantial tenor;(ii) fully amortized over the life of thecontract (loan tenor may be shorter thancontract

tenor); and(iii) secured by a 1st lien priority on allproject assets.

Contractual Risk Mitigation- Revenue-

Expenses- ConstructionOther Risk Mitigation

- Proven Technologies- Minimized Regulatory Risk

- (e.g., permits)- Cashflow Certainty


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TexasCleanEnergy

Project

Coal 1.8mmtpy Coal Gasification and

Gas Cleanup

Water

PRB Coal via RailroadHigh Hydrogen Power

Turbine

2/3 ofSyngas

1/3 ofSyngas

Coal, Steam andOxygen Input. MainOutputs are Syngas

(Hydrogen and CarbonMonoxide) and Pure

CO2

1/6 ofCO2

5/6 ofCO2

Ammonia / UreaComplex

CO2 Delivered to OilFields via Pipeline

195 MW lowcarbon power

delivered to Cityof San Antonio

710,000 tons/yrdelivered to CHS

Inc.

2.5mm tons peryear delivered toOil Companies

Brackish Water Purifiedvia Reverse Osmosis

OxygenAir Separation Unit


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Siemens Gasifiers (SFG-500)basic design from 1984

Source: Summit Power Group

Air Separation UnitCarl von Linde 1895, 2,800 since

Source: Linde

Linde RECTISOL CO2 Unitdates from 1955

Source: Linde

Ammonia-Casale Haber NH3 Processdates from 1913

Source: Linde

Old Technology;Blue Chip Suppliers


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CCSinthe

PermianBasinCO2demandoutstripssupply

4yearsofconnuousoperaonswithoutincident

NewCO2demand=37MT/Yr,51fields

EconomicallyviableCO2demand=116MT/Yr,139fields

3,milesofCO2/EORpipelinenetwork

Naturalsourcesareindecline CO2ispricedas%ofWTI

Project location at center ofpipeline system

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US/China

CollaboraGon NegoangEPCagreementwithSinopecEngineeringGroupforChemicalBlockEPC

GatewayforChinaEXIMtoprovide1%oflongtermprojectdebt

Sinopecalsoexpectedtoprovideequity SiemensremainsasthePowerBlockEPCcontractor LindeandSiemensremainasoperators

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TCEPStatus

June2013Siteacquired&permiNng RecordofDecisionfromUSDOEon9/29/1(completesNEPA/EISprocess) Airpermitissued12/28/1(nogreenhousegasemissionslimits)

FEEDstudyWaterrightsOakeagreements

1%ofpowersoldtoCPSEnergyfor25years 1%ofCO2soldfor3years(threedifferentbuyers;marketverystrong) 1%ofureasoldtoCHS(BlueChipFerlizer/chemicalcompany)

Engineering,Procurement&ConstrucGoncontracts Twocontractsworktogethertoensureintegrated,complete,highperformanceplant lump-sum,fixed-price,turnkey

O&Magreement Provides15-yearwarranesforprojectperformance,reliability,availabilityandpolluon

control

JointventurefullplantoperaonsbyLindeandSiemens


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Hold Working Interest in large greenfield Permian CO2-EORfield

Working on several early stage project developments Gasification (XCEP) Natural Gas Post Combustion Capture

Partnerships with earlier stage next-gen technologies Further direct partnerships with oil producers

OtherSummitCCS

AcGviGes

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Contact

InformaGonChrisTynanDirector,ProjectFinance

SummitPowerGroup,LLC

(312)[email protected]

Seealso:

www.summitpower.com www.texascleanenergyproject.com

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c. tynan - texas clean energy project (tcep)

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