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Research Experience in Carbon Sequestration

June 2, 2014

Southern Companys CCUS Portfolio

and Commercialization Issues

Richard A. Esposito, Ph.D.

Southern Company

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!GHG environmental regulations!Depreciated fossil-fuel generation

assets with state-of-the-art

environmental controls!Abundant domestic fossil-fuel

resources with stable pricing

!Challenging regional renewableportfolio in the Southeast

!World class sequestration geologywith strong demand for CO2-EOR

!Become an informed consumer

CCUS Technology Drivers

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CommercialCCUS

Economic CaptureAdvanced processesNew chemistry

Economies of scale

Station serviceCapital costs

Secure StorageSite characterizationMonitoring tools

Injection simulationUIC permitting

Scenario PlanningSystem analysisCO2use/certification

Regional infrastructure

Public AcceptanceInternal stakeholdersRegulators

NGOsGeneral public

The Commercialization Puzzle

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Research Culture/Beliefs

Maintain a corporate focus on R&D Network and collaborate externally

to leverage resources

New technologies will address futureenvironmental challenges - maintain a centralized R&Dorganization

Adopt intellectual property positions that do not impedetechnology development and deployment

Learn by doing and become an informed consumer; in-house expertise allows flexibility in future commercialbusiness models

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Large Demo CommercializationPilot DemoPerformance & CostReduction

1-10 MWe Scale

Engineering &Operation

10-100 MWe Scale

Reliability

100+ MWe Scale

ResearchPerformance & CostReduction

Bench-top Scale

Technology Development Curve

TechnologyMaturity

2010 201620142012 2018 2020 2030

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

Demonstration: ashowing of the merits of a

product or service to a

prospective consumerFull-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] commerceSmall full-scale plantProof-of-performance research; guaranteesHost utility fundedDOE & EPRI funding possible

Research:studious inquiry

or examinationFirst step in processMany ideas, many failuresUtilities usually not funding or

involved

Typically university andnational lab work

Development: toexpand by a process of

growthMove from lab to practical testing

Only successful ideas from smaller scaleUtilities get involved

Host utility + DOE & EPRI funding

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CCUS R&D Program

Efforts key to our long-term program success

"Applied Science

Carbon Capture

Utilization Storage

Capture

Transportation

Pilot Scale

Storage

Laboratory Testing

Storage Program

Demonstration Scale Applied Science

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Plant Barry CCS DemonstrationWorlds largest capture facility on a fossil-fueled power plant

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