Atlantic Council “Advanced Fossil Energy Technologies” Washington, D.C. - September 9, 2013

Southern Company Perspectives on Energy R&D Randall Rush GM, Gasification Technology

Southern Company R&D Attributes “Learn by Doing”

• Centrally located research engineers and scientists

• Laboratories dispersed across operating assets

• Active collaboration with utilities, universities, vendors

• Heavily leveraged by external funding partners

• Intellectual property positions that do not impede technology deployment

• Research portfolio provides hardened technology options delivered in close cooperation with in-house Operations and EPC capability

DOE/Southern Company R&D Project Timeline

1970 2013

Solvent Refined Coal

Advanced Coal Cleaning

100 MW Chiyoda Demo

SCR Pilot Plant

Switchgrass Co-Firing

Advanced T-Fired Burner

DOE/EPRI Coal Quality Expert

Activated Carbon Injection

SECARB CO2 Injection Citronelle CO2 Injection

SECARB Phase III IDMS

GenVARR

Stack Water Recovery

PSDF

NCCC

Activated Carbon Injection

MerCAP

Scrubber Additives

Low Temperature Oxidation Catalysts

CCPI 3 CCS Demo

Kemper IGCC- CCPI

Advanced Wall-Fired Burner

2010

-201

8

2007-Present

Development 1-10 MWe

Demonstration 10-100+ MWe

Commercial 250 MWe +

Research < 0.1 MWe

Coal-based Technology Development Directly Resulting from DOE/Southern Company R&D Partnership

Development 1-10 MWe

Demonstration 10-100+ MWe

Commercial 250 MWe +

SCR systems

FGD systems

Baghouse w/ activated carbon

Research < 0.1 MWe

Carbon Dioxide (Capture & Storage)

Coal-based Technology Development Directly Resulting from DOE/Southern Company R&D Partnership

Low NOx burners

Confidential and Proprietary

Development 1-10 MWe

Demonstration 10-100+ MWe

Commercial 250 MWe +

SCR systems Crist Clean Coal Project

1992-1995 9 MW

SEI Birchwood 1996 250 MW

18,000 MW 8,000 MW

FGD systems Scholz 1978 23 MW

Yates Clean Coal 1992

100 MW

Baghouse w/ activated carbon

Miller 1995 1 MW

Gaston 2&3 1996 & 2001 2*250 MW

Research < 0.1 MWe

Carbon Dioxide (Capture & Storage)

Daniel 2009 SECARB II 3000 tons

Barry 500 tpd 2011 - 2014

25MW Citronelle

2009 - 2020 SECARB III

100k tpy

National Carbon

Capture Center

Coal-based Technology Development Directly Resulting from DOE/Southern Company R&D Partnership

Industry Southern

100,000 MW 11,000 MW

8,000 MW* 1,600 MW

• Denotes estimate • provided by EPRI

500 MW

325,000 MW 22,000 MW

Low NOx burners

Hammond Clean Coal 1991

500 MW Smith Clean Coal 1992

180 MW

Kemper 3 MM tpd

2014 - 2054 584 MW

Confidential and Proprietary

Development 1-10 MWe

Demonstration 10-100+ MWe

Commercial 250 MWe +

SCR systems Crist Clean Coal Project

1992-1995 9 MW

SEI Birchwood 1996 250 MW

18,000 MW 8,000 MW

FGD systems Scholz 1978 23 MW

Yates Clean Coal 1992

100 MW

Baghouse w/ activated carbon

Miller 1995 1 MW

Gaston 2&3 1996 & 2001 2*250 MW

Research < 0.1 MWe

Carbon Dioxide (Capture & Storage)

Daniel 2009 SECARB II 3000 tons

Barry 500 tpd 2011 - 2014

25MW Citronelle

2009 - 2020 SECARB III

100k tpy

National Carbon

Capture Center

Coal-based Technology Development Directly Resulting from DOE/Southern Company R&D Partnership

Industry Southern

100,000 MW 11,000 MW

8,000 MW* 1,600 MW

• Denotes estimate • provided by EPRI

500 MW

325,000 MW 22,000 MW

Low NOx burners

Hammond Clean Coal 1991

500 MW Smith Clean Coal 1992

180 MW

Kemper 3 MM tpd

2014 - 2054 584 MW

Confidential and Proprietary

Development 1-10 MWe

Demonstration 10-100+ MWe

Commercial 250 MWe +

SCR systems Crist Clean Coal Project

1992-1995 9 MW

SEI Birchwood 1996 250 MW

18,000 MW 8,000 MW

FGD systems Scholz 1978 23 MW

Yates Clean Coal 1992

100 MW

Baghouse w/ activated carbon

Miller 1995 1 MW

Gaston 2&3 1996 & 2001 2*250 MW

Research < 0.1 MWe

Carbon Dioxide (Capture & Storage)

Daniel 2009 SECARB II 3000 tons

Barry 500 tpd 2011 - 2014

25MW Citronelle

2009 - 2020 SECARB III

100k tpy

National Carbon

Capture Center

Coal-based Technology Development Directly Resulting from DOE/Southern Company R&D Partnership

Industry Southern

100,000 MW 11,000 MW

8,000 MW* 1,600 MW

• Denotes estimate • provided by EPRI

Kemper 3 MM tpd

2014 - 2054 584 MW

500 MW

325,000 MW 22,000 MW

Low NOx burners

Hammond Clean Coal 1991

500 MW Smith Clean Coal 1992

180 MW

R&D Portfolio: Carbon Capture and Storage

Coal Seam Injection Study

Pilot Capture Demo

Groundwater Impacts Study

Underground Carbon Injection

1 MW Solid Sorbent Pilot

Kemper County IGCC

Geologic Suitability Study

National Carbon Capture Center

University Training Program Biomineralization Study

UAB Cap Rock Lab

25 MW CCS

R&D Portfolio: Carbon Capture and Storage

Coal Seam Injection Study

Pilot Capture Demo

Groundwater Impacts Study

Underground Carbon Injection

1 MW Solid Sorbent Pilot

Kemper County IGCC

Geologic Suitability Study

National Carbon Capture Center

University Training Program Biomineralization Study

UAB Cap Rock Lab

25 MW CCS

25 MW CCS Demo Integrated CO2 capture, compression, pipeline transportation, and geologic sequestration

• 90% CO2 capture • Integrated Operations August 2012 • 171,400 tons of CO2 captured , 78,100

tons injected •

Plant Barry

National Carbon Capture Center

Project Partners

National Carbon Capture Center

Partial List of Technology Suppliers

Development of the Transport Coal Gasifier for Power and Chemical Production

TRIGTM Leverages Long History of Fluid Catalytic Cracking (FCC) Expertise

Late 30's

1942

1951

Early 1960's

1976

1980's 1990 1996 1996 China 2011 USA 2014

First Commercial

FCC Unit for Exxon

Orthoflow™ A Design

Orthoflow™ C Design

Resid FCCs

Orthoflow™ F Design

Design Based on FCC Technology

Pilot Plant Tech Center

Grand Forks, ND 2,600 Hours Test Run

PSDF at Wilsonville, AL. >19,000 hrs in gasification including >3,000 hrs on Miss. Lignite thru Aug‘13

TRIGTM In Kemper County, MS, USA

Kemper County IGCC

Plant Site Plant Site

Test results from the NCCC allow ~40MW more output than would have been possible from higher Steam/CO ratios required in refinery applications

• 15+ years of development at the NCCC

• 524MW on syngas w/ 65+% CO2 capture

• CO2 & other emissions ~equal to NG

• 3 MM TPY CO2 for EOR

• Zero Liquid Discharge (ZLD) plus treated effluent from City of Meridian, MS and moisture from coal drying as makeup water

Kemper County IGCC

DOE/Southern Company R&D Project Timeline

1970 2013

Solvent Refined Coal

Advanced Coal Cleaning

100 MW Chiyoda Demo

SCR Pilot Plant

Switchgrass Co-Firing

Advanced T-Fired Burner

DOE/EPRI Coal Quality Expert

Activated Carbon Injection

SECARB CO2 Injection Citronelle CO2 Injection

SECARB Phase III IDMS

GenVARR

Stack Water Recovery

PSDF

NCCC

Activated Carbon Injection

MerCAP

Scrubber Additives

Low Temperature Oxidation Catalysts

CCPI 3 CCS Demo

Kemper IGCC- CCPI

Advanced Wall-Fired Burner

2010

-201

8

2007-Present

Southern Company’s Diverse Generation Portfolio

Potential 2020 Range Average Actual Low Gas Price High Gas Price ‘07-’08 2012 High Coal Price Low Coal Price

Natural Gas 16% 45% 57% 34%

Coal 69% 36% 22% 45%

Nuclear & Other 15% 19% 21% 21%

Generation Mix by Fuel Source

The reliability of our generation fleet and the flexibility to utilize the least expensive fuel source keeps retail prices low and less volatile

National Carbon Capture Center Wilsonville, Alabama

Integrated Gasification Combined Cycle Mississippi Power Plant Ratcliffe

Second Largest U.S. Solar Cimarron Solar Facility

Largest U.S. Biomass Nacogdoches Generating Facility

Mercury Research Center Gulf Power Plant Crist

25-MW CCS Alabama Power Plant Barry

Water Research Center Georgia Power Plant Bowen

Power Delivery and End-Use Technology Lab

U.S. first New Nuclear Georgia Power Plant Vogtle

Smart Grid: Integrated Distribution Management System

Air Quality Science Center SEARCH network; ARIES; mercury

Savannah Seaport Electrification All-electric Crane Demonstration

Campo Verde Solar Facility Imperial County, California

Apex Solar Facility North Las Vegas, Nevada

Spectrum Solar Facility Clark County, Nevada

Granville Solar Facility Granville County, North Carolina

R&D Delivers Benefits to the Industry Recent Southern Company Projects with R&D Foundations

National Carbon Capture Center Wilsonville, Alabama

Integrated Gasification Combined Cycle Mississippi Power Plant Ratcliffe

Second Largest U.S. Solar Cimarron Solar Facility

Largest U.S. Biomass Nacogdoches Generating Facility

Mercury Research Center Gulf Power Plant Crist

25-MW CCS Alabama Power Plant Barry

Water Research Center Georgia Power Plant Bowen

Power Delivery and End-Use Technology Lab

U.S. first New Nuclear Georgia Power Plant Vogtle

Smart Grid: Integrated Distribution Management System

Air Quality Science Center SEARCH network; ARIES; mercury

Savannah Seaport Electrification All-electric Crane Demonstration

Campo Verde Solar Facility Imperial County, California

Apex Solar Facility North Las Vegas, Nevada

Spectrum Solar Facility Clark County, Nevada

Granville Solar Facility Granville County, North Carolina

R&D Delivers Benefits to the Industry Recent Southern Company Projects with R&D Foundations Non-Coal Focus

Benefits from Investments in Clean Coal Technology

+183%

-82% -88%

Sources: EPA National Air Pollutant Emission Trends EIA Annual Energy Review

-96%

Coal-fired Generation Emission Rates

Between 1970 and 2008 U.S. SO2, NOx, and particulate emissions from coal-fired electric power plants were reduced by 82 to 96%, while coal-fired generation almost doubled.

Between 1990 and 2010 Southern Company’s SO2, NOx, and mercury emissions from coal-fired electric power plants were reduced by 60 to 80%, while coal-fired generation increased by 40%.