southern company's ccus portfolio and key r&d issues

7/31/2019 Southern Company's CCUS Portfolio and Key R&D Issues

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Clean Coal Technology Development

Southern Company Generation, Research & Technology Management

Dr. Richard A. Esposito, P.G.

RECS 2012

Birmingham, Alabama


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Regional energy company- Alabama, Georgia, Gulf, Mississippi,

and Southern Nuclear

- Southern Power is the largest wholesalepower producer in the Southeast

- Southern Company Services is anin-house engineering design,construction, and research organization

- More than 43,000 MW of electricgenerating capacity (79 plants)

Core service area- 120,000 square miles in four

southeastern states; 4.4 millioncustomers and 26,000 employees

One of the largest producers of electricity inthe U.S. and one of the largest users of coal

Southern Company (NYSE:SO)

Coal52 %

Nuclear16 %

Hydro2 %Gas

30 %

Sources of Generation, 2011Southern Company

From 2011 Southern Company Form 10-K.


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Southern s Fleet in TransitionSothern's Fleet in Transition

Coal 52 %

Gas

30 %

Nuclear16 %


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CCS Technology Drivers Compliance with carbon legislation or GHG

environmental regulation

200 years of domestic coal resources Depreciated fossil-fuel generation assets in

addition to newly installed environmental controls Challenging regional renewable portfolio World class sequestration geology with strong

demand for CO2-EOR

CCS Research Objectives Demonstrate commercially viable option that

supports investment decision by 2020

Support roll-out of innovative new technology Broaden list of candidate sites/geologies/use

options for CO2

Outreach & education with stakeholders

Drivers & R&D Objectives


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Research Culture/Beliefs

Maintain a corporate focus on R&Dwith strategic initiates in mind

Learn by doing internally butcollaborate externally to network

and leverage resources New technologies will address future environmental

challenges

Maintain a centralized R&D organization Adopt intellectual property positions that do not impede

technology development and deployment

In-house expertise allows flexibility in future commercialbusiness models


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Demonstration CommercializationDevelopment

Performance & CostReduction1-10 MWe Scale

Engineering &Operation10-100 MWe Scale

Reliability100+ MWe Scale

Research

Performance & CostReductionBench-top Scale

Technology Development

TechnologyMaturity

2010 201620142008 2012 2018 2020 2030

$$$$ $$$$$$$$ $,$$$$,$$$

Demonstration: a showing of the merits of a

product or service to a prospective consumer

Full-time research at small unit or slip-streamGather results for commercial projectsUtility host and vendors are main fundersDOE & EPRI funding necessary

Commercial: suitable, adequate, or prepared for

[normal] commerce

Small full-scale plantOnly initial, proof-of-performance researchHost utility fundedDOE & EPRI funding possible

Research: studious inquiry or

examination

First step in processMany ideas, many failures

Utilities usually not funding orinvolved

Typically university andnational lab work Development: to expand by a process of

growth

Move from lab to practical testingOnly successful ideas from smaller scaleUtilities get involvedHost utility + DOE & EPRI funding normal


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Learn by doing!

Plant Ratcliffe IGCC

Carbon Capture

Utilization Storage

Carbon Capture

Transportation

Plant Barry CCS Demo

GeologicStorage

Carbon Capture Center

Site Characterization

Applied Science and

Laboratory Testing

Efforts that are key to our long-term clean coal program


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National Carbon Capture Center

Unique flexible testing facility where newprocesses can be tested on both coal derived syngasand flue gas at various scales.

A technology development facilitator by providingfacilities forscale-up from bench-top toengineering-scale.

Include a wide variety of participants and partners.Develop best-in-class technology.

Deliver innovation via a collaborative projectportfolio that provides an accelerated pathway tocost-effective CO2 capture technology.


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Geology/Site Characterization

Alabama Power William Crawford Gorgas

Electric Generating Plant (Parrish, AL)

- University of Alabama

- Geological Survey of Alabama

- Schlumberger Carbon Services

Mississippi Power Victor J. Daniel Electric

Generating Plant (Escatawpa, MS)- Southern States Energy Board/SECARB

- Electric Power Research Institute

- Advanced Resources International


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Drill Core Collection


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Industry Leading R&D & Construction Expertise

15 years of development/demonstrationin TRIG Technology

Certified by the MPSC on June 3, 2010 582MW IGCC COD May 2014 ZLD facility 65% CO2 Capture 3.4 MMt CO2/yr $2.4 Billion Capital Investment

$700M in federal incentives CWIP rates will begin in 2012 Advanced due diligence discussion

for federal loan guarantees

TRIG Technology being deployed in China

Plant Ratcliffe - R&D to Reality

Plant SitePlant Ratcliffe


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TRIG Gasification Process

Transport Integrated Gasification Product of more than 15 years

research

Developed at the Power Systems DevelopmentFacility (PSDF) in Wilsonville, Alabama; now

the National Carbon Capture Center

Sponsored by the DOE, hosted and operated bySouthern Company Services


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PlantRatcliffe

Why Mississippi Lignite?

1) Domestic Mississippi resource

2) Estimated 4 billion mineabletons

3)60 million tons needed for the40-year life of the plant

4) Low commercial value of 5Kbtu/lb at 45% moisture

5) TRIG technology designedfor coals like lignite


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IGCC By-Products

Sulfuric Acid (H2SO4) ~135,000

tons/year

Ammonia (NH3) ~22,000 tons/year

CO2 @ 65% capture ~3,400,000 tons/year

Combined Cycle

Gasifier

Integrated Gasification Combined Cycle


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Fully integrated CO2 capture, transport

and storage project

Construct and operate a 25 MW equivalentCO2 capture unit at Alabama Power Plant Barry

Construct and integrate/operate an 11 milepipeline that will transport captured CO2 to

Citronelle Dome

Site characterization, permit, inject, andmonitor/model 300,000 metric tons of CO2 into a

saline formation

Outreach & education, stakeholder acceptance,contracting, liability, pore space, etc.

Plant Barry CCS Demo


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Capture Plant Update

2010 2012

Capture plant & compressor started operations on June 4, 2011 wit

> 50,000 metric tons CO2 captured to date.


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CO2 Pipeline Overview

Approx. 11 mi to the SE operators unit in Citronelle Field Right-of-Way

Utility corridor for80%; 9 land owners

Pipe specifications 4-in pipe diameter X70 carbon steel DOT 29 CFR 195

liquid pipeline;buried 3 feet withsurface vegetation

maintenance 19 directional drills Purity is 99% dry CO2

at 115F, 1,500 psig

Right-of-way habitat (pine forest in the Mobile River watershed;some wetlands, gopher tortoises)

Citronelle

SE Unit

Plant

Barry

PipelineRoute

Citronelle Unit Detail


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19 directional drills with

some up to 3,000 feet

long and 50 feet deep


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Right-of-Way is primarily autility corridor for 80%;

only 9 land owners


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Storage Scope & Objectives

Scope: Demonstrate safe, secure CO2

injection and storage in regionallysignificant saline reservoirs in thesoutheast U.S. region

Objectives: Identify and mitigate potential

leakage risk

Evaluate local storage capacity, injectivity and trapping mechanismsfor the Paluxy Formation (saline reservoir)

Test the adaptation of commercially available oil field tools andtechniques for monitoring CO2 storage

Permit injection, stakeholder acceptance through outreach & education

Demonstrating geologic storage capacity, injection, and monitoring


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Storage Scope & Objectives

Scope: Demonstrate safe, secure CO2

injection and storage in regionallysignificant saline reservoirs in thesoutheast U.S. region

Objectives: Identify and mitigate potential

leakage risk

Evaluate local storage capacity, injectivity and trapping mechanismsfor the Paluxy Formation (saline reservoir)

Test the adaptation of commercially available oil field tools andtechniques for monitoring CO2 storage

Permit injection, stakeholder acceptance through outreach & education

Demonstrating geologic storage capacity, injection, and monitoring


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Proposed Injection Zone (Paluxy Fm.)

Secondary Injection Zone (Tuscaloosa Fm.)

Tertiary Injection Zone (Eutaw Fm.)

Stacked Storage Reservoirs

And

Multiple Seals


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SECARB Tour Overview

Citronelle

SE Unit Injection

Well D9-8

PlantBarry

PipelineRoute

Citronelle Unit Detail

Custody

Transfer Station


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Basic Science and Lab

Experimentation

UAB Cap Rock Integrity Lab

- Long-term storage integrity- Regulation of injection pressure- Reassure stakeholders that geologic

sequestration is safe and secure

Montana State Biofilm Lab- Biological control of permeability- Sealing leaking boreholes- Sealing fractures and cap rocks


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Research Experience in

Carbon Sequestration

The RECS program is heading to Southern Company in 2012

Thirty students selected to participate in a two week workshop where

they learned about CCS from experts in industry, the research

community, NGOs and the government; along with participating in

group exercises, workshops, and field trips.


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Other Supported Projects

Citronelle Oil Field CO2-EOR/Storage Capacity Pilot Injection (UAB/Denbury/GeologicSurvey of Alabama), 2008-2013.

Plant Daniel CO2 Impacts on Shallow Groundwater Study (EPRI/LBNL), 2010-2012. Valuation of Human Health and Ecological Risks and Damage Assessment Arising

From CCS (Industrial Economics Inc.) (Phase I & Phase II), 2010-2012.

Development of Standards for Geologic Storage of CO2 (CSA), 2011-2012. CCS Technology and Pipeline Infrastructure Study (LANL), 2012. Florida Panhandle Pipeline Infrastructure Model (University of North Florida), 2011. Carbon Sequestration Simulation Center (UAB), 2012-2013.

Carbon Sequestration Cap Rock Lab (UAB), 2010 - 2014 Transformation Reactions of Clay Mineralogy in CO2 Storage Formations (Georgia

State University), graduate student support, 2012.

CO2-EOR Initiative, Center for Climate and Energy Solutions (C2ES), 2011-2012 MIT Carbon Sequestration Initiative, 2009-2012.


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Industry Perspectives

An educated workforce will be integral to future CCS operationsand ongoing research activities.

Future widespread deployment of CCS technology is stilldependent on issues unresolved on the legal and policy side of

carbon mitigation.

However, through the research and development with ourpartners, Southern Company remains committed as a leader in

technical advancement and readiness for the future of the electric

utility industry.

southern company's ccus portfolio and key r&d issues

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