Technology options under Technology options under consideration for reducing consideration for reducing

GHG emissionsGHG emissionsSUSTAINABLE ENERGY ROUNDTABLE SUSTAINABLE ENERGY ROUNDTABLE

SERIES:SERIES:

Next Steps Post-Kyoto: U.S. OptionsNext Steps Post-Kyoto: U.S. OptionsJanuary 13, 2005January 13, 2005

Jeff WilliamsJeff WilliamsManager, Corporate Environmental InitiativesManager, Corporate Environmental Initiatives

jwill35@entergy.comjwill35@entergy.com

Portfolio of Initiatives Portfolio of Initiatives for Clean Energy for Clean Energy FutureFuture

Increase EfficiencyIncrease Efficiency IGCC / NGCC IGCC / NGCC Reduce Line LossesReduce Line Losses DSMDSM

Reduce Carbon Reduce Carbon IntensityIntensity Renewables Renewables NuclearNuclear H2 StorageH2 Storage

SequestrationSequestration CC w Geologic CC w Geologic OffsetsOffsets

Increase EfficiencyIncrease Efficiency

NGCC 50 – 60% efficient

Low capital cost

Lower carbon fuel

Energy Conservation

Process Optimization

Reduction of Line Loss

Appliance Standards

Low Income Weatherization

Customer Incentives

IGCC w CCSIGCC w CCS

40-50% efficient40-50% efficient Fuel FlexibilityFuel Flexibility CleanClean Low Cost Carbon Low Cost Carbon CaptureCapture Energy SecurityEnergy Security

Reduce Carbon Intensity Reduce Carbon Intensity Renewables – Wind Renewables – Wind PowerPower

opportunities in the Northeast, offshore, Western & Midwestern states; opportunities in the Northeast, offshore, Western & Midwestern states; provides a hedge against fuel cost spikes and environmental control costs;provides a hedge against fuel cost spikes and environmental control costs; Off-peak Hydrogen production for increased utilizationOff-peak Hydrogen production for increased utilization Drivers for wind powerDrivers for wind power

– Declining wind costDeclining wind cost– Fuel price uncertaintyFuel price uncertainty– Green power Green power – Federal & State policies Federal & State policies – Energy securityEnergy security

Reduce Carbon Reduce Carbon Intensity - NuclearIntensity - Nuclear

• New “passive safe” plant designs reducing capital cost

• Clean, non-emitting

• Hedge against fuel price volatility & environmental costs

•Proven technology with safe operating history

EOR & Geologic EOR & Geologic Sequestration – The Sequestration – The VisionVision

COCO22 captured from stack gases and captured from stack gases and injected into nearby geologic injected into nearby geologic formations for enhanced oil formations for enhanced oil recovery and ultimate geologic recovery and ultimate geologic sequestration.sequestration.

21- 27 billion barrels of 21- 27 billion barrels of economically recoverable domestic economically recoverable domestic oil – 2 million bbl/dayoil – 2 million bbl/day

Early demonstration of advanced Early demonstration of advanced technologies will drive down costs, technologies will drive down costs, improve performance and impact improve performance and impact willingness of stakeholders to willingness of stakeholders to accept carbon caps.accept carbon caps.

Mandatory Carbon Caps with Mandatory Carbon Caps with emissions trading and revenue emissions trading and revenue neutral tax incentives are adopted neutral tax incentives are adopted that augment revenue streams for that augment revenue streams for carbon capture & transport.carbon capture & transport.

Help energy security, increasing Help energy security, increasing domestic supplydomestic supply

Add jobs, royalties and tax Add jobs, royalties and tax revenuesrevenues

Geologic Storage in the Gulf CoastGeologic Storage in the Gulf Coast

Enhanced oil and gas productionto offset development cost and speed implementation

Very large volumestorage in stacked brineformations beneathreservoir footprints(estimated 222 GT CO2 storage capacity in Gulf Coast Region)

Near-term and long-term sources and sinks linked in a regional pipeline network

Why is Entergy interested in Why is Entergy interested in EOR and Geologic EOR and Geologic Sequestration?Sequestration? Provides a bridge to achieve COProvides a bridge to achieve CO22 reductions reductions

now while we build capacity for higher now while we build capacity for higher efficiency, lower carbon portfolio of efficiency, lower carbon portfolio of generating assets in the future;generating assets in the future;

Gives us a viable option for managing carbon Gives us a viable option for managing carbon risk and creating growth opportunities;risk and creating growth opportunities;

Creates jobs, royalties and tax revenues that Creates jobs, royalties and tax revenues that helps economic viability of our customer helps economic viability of our customer base;base;

It helps us create the legacy we want to It helps us create the legacy we want to leave for future generations .leave for future generations .

What Needs to Be Done To What Needs to Be Done To Create Physical COCreate Physical CO22 Markets?Markets?1) Federal legislation establishing cap and trade system 1) Federal legislation establishing cap and trade system

for greenhouse gases – monetizing ERC value;for greenhouse gases – monetizing ERC value;2) Federal legislation creating a “Revenue Neutral” Tax 2) Federal legislation creating a “Revenue Neutral” Tax

Credit for Carbon Sequestration / Oil Production;Credit for Carbon Sequestration / Oil Production;3) Conduct research to reduce cost of Carbon Capture 3) Conduct research to reduce cost of Carbon Capture

technology by 25%;technology by 25%;4) Conduct research to demonstrate and understand 4) Conduct research to demonstrate and understand

performance and fate of geologically sequestered COperformance and fate of geologically sequestered CO22;;5) Develop credible & efficient measurement, monitoring 5) Develop credible & efficient measurement, monitoring

and verification methods for geologic sequestration;and verification methods for geologic sequestration;6) Develop and obtain public acceptance of protocols for 6) Develop and obtain public acceptance of protocols for

registering ERCs created from geologic sequestration;registering ERCs created from geologic sequestration;7) Invest in regional pipeline backbone that allows 7) Invest in regional pipeline backbone that allows

efficient movement of COefficient movement of CO22 from high volume sources from high volume sources to reservoirs.to reservoirs.

Questions?Questions?

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