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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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