Randall Rush, General Manager - Gasification Technology

Roxann Laird, Director - National Carbon Capture Center

Southern Company Carbon Management

Southern Company at a Glance US

Category Value Rank

Market Capitalization ($B) $40.3 2nd

Enterprise Value ($B) $62.7 2nd

Total Assets ($B) $59.3 2nd

Electric Customers (M) 4.4 8th

Summer Capacity (MW) 43,955 2nd

Coal 20,426

Gas / Oil 16,912

Nuclear 3,644

Solar 46

Biomass 103

Hydro 2,824

Coal Usage (tons) 44,765 3rd

Gas Usage (bcf) 600

3rd

Transmission (miles) 26,874 3rd

Distribution (miles) 167,853 5th

2011 Net Income

Southern Power 7%

Regulated 93%

Source: SNL & Energy Velocity

Assets, customers, transmission , distribution and fuel usage data as of 12/31/2011

Ranking includes combined Duke/Progress

Southern Company Strategic Priorities

Complete

Vogtle & Kemper

Support Building

of National

Energy Policy Preserve and Enhance

the Circle of Life

Value and

Develop People

Promote Smart

Energy

First New US Nuclear Plant in a Generation - Vogtle 3&4

Combined Construction & Operating License (COL) issued by NRC on Feb 10, 2012

Unit 3 COD – 2016; Unit 4 COD – 2017

Plant Ratcliffe IGCC in Kemper County, Mississippi

• Southern Company Proprietary

TRIG™ Technology

• 15 years of

development/demonstration

• 580MW Capacity with 65+% CO2

capture

• CO2 emissions ~equal to natural

gas

• 3 MM TPY CO2 for EOR

• COD: May 2014

• Only US electric power company with in-house EPC capability (1,600

employees)

• Perform all EPC activities for Southern’s fossil and hydro fleet

• Act as Owner’s engineer for nuclear EPC

• Integrated strategy development, technology selection, EPC execution

and operating fleet O&M lessons learned

• Deployed/managed over 72M construction man-hours, 2007 to Mid-2012

• Highlights of construction project results since 2000:

‐ 11,200 MWs of new gas-fired generation at costs 35% below national average*

‐ 3,100 MWs of selective catalytic reduction (SCR) at costs 10% below national average*

‐ 3,800 MWs of flue gas desulfurization (FGD) at costs 18% below national average*

* “SCR Cost Construction Survey Results” – 2010 Electric Utility Cost Group (EUCG) survey

“Scrubber Cost Construction Survey Results” – 2009 Electric Utility Cost Group (EUCG) survey

Industry database: All-in cost in nominal $, F Class 2x1 CCs > 500 MWs. Total database of 7000 MWs in AL, FL, LA, MS, SC for 2003COD.

Southern Company Engineering, Procurement & Construction (EPC) Capability

Generation

Power

Delivery

End Use Renewables

• Only US electric power company with

internal R&D organization

• Approximately 150 centrally located

engineers and scientists

• Laboratories dispersed across operating

assets

• Active collaboration with other utilities

• Leveraged by external funding partners

• Research portfolio managed to provide

hardened technology options

Southern Company R&D

R&D Areas

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

Start-to-finish 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

Southern Company’s Technology Culture

• Recognizes that new technologies will address the difficult challenges ahead.

• Focused through a centralized R&D organization

• Belief that a broad technology portfolio brings multiple options to business decisions.

• Extensive external collaboration to ensure broad technical input and leverage resources.

• Adopt intellectual property positions that do not impede technology deployment.

• Stay focused on the most strategic issues.

Current Southern Company Projects Related to Carbon Capture, Use and Storage (CCUS)

Coal Seam Injection

Study

Pilot Capture

Demo

Groundwater Impacts

Study

Underground Carbon

Injection

1 MW Solid Sorbent

Pilot

TRIG™ IGCC with CO2 for

EOR

Geologic Suitability

Study

National Carbon Capture Center

University Training

Program Biomineralization Study

UAB Cap Rock Lab

25 MW Post-Combustion

CCUS

CO2 EOR Pilot Injection

Coal

41 %

Gas 37 %

Nuclear 19 %

Hydro/Other 3 %

Projections subject to change.

Coal is Expected to Remain a Major Part of Southern Company’s Generation Mix

Coal

52 %

Gas 30 %

Nuclear 16 %

Hydro 2 %

Coal

71 %

Oil

< 1%

Gas 11 %

Nuclear 15 %

Hydro 3 %

2005 2011

2020

100MM TPY

CO2

• Production from CO2 EOR has increased 40% over the past 6 years

• In 2010 it was 5% of total domestic production

• EOR is the highest-value, highest-volume use of CO2

• EOR could potentially use CO2 from 60 GW of power plants with CCUS

• EOR will catalyze CCS technologies

while providing economic drivers

for commercial projects

Carbon Capture, Utilization and Storage (CCUS) through EOR is the Business Driver to Catalyze Continued Coal use for Power Generation

0

50,000

100,000

150,000

200,000

250,000

300,000

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Year

En

han

ced

Oil

Rec

ove

ry (

bar

rels

/day

)

GULF COAST/OTHER

MID-CONTINENT

ROCKY MOUNTAINS

PERMIAN BASIN

JAF2010_031.XLS

Source: Advanced Resources Int’l. and Oil and Gas Journal, 2010.Source: Advanced Resources Int’l., based on Oil and Gas Journal, 2010.

JAF028215.PPT

Incr

emen

tal O

il R

eco

very

(b

arre

ls/d

ay)

U. S. EOR Opportunities

EOR Potential: West of the Mississippi

32.7 B bbls (Best Practice) to 45.1 B bbls (Next Gen)

73% to 90% of EOR resources

76% of favorable fields

EOR Potential: Rockies to Mississippi River

27.3 B bbls (Best Practice) to 39.5 B bbls (Next Gen)

61% to 79% of EOR resources

67% of favorable fields

EOR Potential: Illinois-Michigan-Appalachia

0.6 B bbls (Best Practice) to 2.1 B bbls (Next Gen)

1% to 4% of EOR resources

13% of favorable fields

EOR Potential: Gulf Coast

2.2 B bbls (Best Practice) to 3.0B bbls (Next Gen)

5% to 6% of EOR resources

11% of favorable fields

2

27 MW

SPC’s 90% ownership share

100 MW

1,143 MW

1,256 MW 1,800 MW

597 MW

749 MW

780 MW

427 MW

SPC’s 65% ownership share

720 MW

463 MW CC/456 MW CT

Southern Power – Unregulated Subsidiary

• Bilateral contract business model

(80% contract coverage through 2016)

• Approximately 8,500 MW of capacity (98.5% natural gas),

including 820MW to be completed in 2012

• Expansion capability of approximately 9,000 MWs

18 MW

SPC’s 90% ownership share

25 MW Post-Combustion CCUS Demo at Alabama Power’s Plant Barry

• CO2 Capture and Compression

– SCS/MHI collaboration with partners

• Transportation and Sequestration

– DOE SECARB Phase III “Anthropogenic

Test”

– ~15 mile CO2 pipeline to Citronelle Field

• Objectives/Goals

– Advance saline sequestration technology

through large field test

– Characterize CCS operations to support

full-scale deployment

– Continue outreach and education to ensure

seamless deployment

• World’s largest carbon capture unit on a

coal-fired power plant

• 90% CO2 capture, approximately 150,000

TPY

• Evaluate performance in a coal

environment

• June 2011 initial operations

National Carbon Capture Center

Project Partners

Offering a world-class neutral test facility and a highly specialized staff, to accelerate the commercialization of advanced technologies and enable coal (fossil fuel) - based power plants to achieve near-zero emissions (low cost CO2).

NCCC Mission

Post Combustion

Pre Combustion/Gasification

Oxy Combustion

Site Layout

PSDF

Post-

Combustion

Technology Development Process

Evaluate and Screen Technologies

Define Scope of Work with Technology Developer

Design and Construct

Operate according to Test Matrix

Analyze Data and Report

Bench Scale < 0.1 MWe < 2 tpd CO2

PSTU 0.5 MWe

10 tpd CO2

Pilot Test Area 1 MWe

20 tpd CO2

Coal Combustor

Scrubber

Scrubber

Post Combustion Carbon Capture Center (PC4)

PC4 Design and Construction

• Initiated site preparation • Completed design • Awarded bids - major

equipment • Began fabrication of PSTU • Started negotiations with

developers

• Completed site preparation and installation of the PSTU and utility bridge

• Developed quality control procedures and analytical methods

• Established PSTU commissioning team

PC4 Testing Completed

Pilot Test Area

MEA baseline test Commissioning, confirm design and validate data

B&W Advanced solvent, support modeling

Hitachi Advanced amine, preparation for pilot test

Cansolv Advanced polyamine in preparation for demonstration

Aker Mobile test unit, test emission control system, advanced amine solvent, long-term operations

Codexis Enzyme module, encapsulation process

MTR Membrane, long term testing, generate critical data to use in scale-up

PSTU Pilot Bench

PC4 Ongoing Tests/Future Plans

Pilot Test Area

Chiyoda Advanced amine to establish commercial design

Cansolv Advanced polyamine under simulated natural gas fired conditions

MEA Test modified demister, conduct reclaimer tests

BASF/Linde Novel amine solvent based process

MTR Scale-up of membrane, long term operations

Akermin Modular unit utilizing carbonic anhydrase enzyme with potassium carbonate

MTR Membrane, long term testing, generate critical data to use in scale-up

SSTU Slipstream Solvent Test Unit, test innovative solvents

PSTU Pilot Bench

1,660

1,680

1,700

1,720

1,740

1,760

1,780

1,800

0 0.5 1 1.5 2 2.5

Te

mp

era

ture

(d

eg

F)

Time, hours

Gasification Technology Particulate Removal Feed System Development

Fuel Flexibility Sensor Development

Ash Removal

Automation

Pre-Combustion CO2 Capture

GasifierPV

FVPV

Syngas Cooler

Particulate Filtration

TO ATMOSPHERIC SYNGAS COMBUSTOR

1,500 LB/HR SYNGAS HEADER

SYNGAS FOR OTHER TESTING (FUEL CELLS, MEMBRANES, ETC.)

Reactor A Reactor B

FV FV

STEAM

Reactor C

TO OTHER TESTING OR TO ATMOSPHERIC SYNGAS COMBUSTOR

Syngas Cooler

FV

CO2

Batch Reactor

FV

Bottle GasesFV = Flow Valve

PV = Pressure Valve

SYNGAS

CONDITIONING

UNIT

Testing Completed/Ongoing

High-temperature mercury sorbent

CO2 capture sorbent

CO2 capture solvent

• features 4 sorbent reactors • novel sorbent is

mesoporous carbon-based materials modified with surface functional groups

• advanced physical solvents • confirm the CO2 capture results with

syngas • evaluate the absorption and regeneration

characteristics of H2S

Gas Separation Membranes

Water Gas Shift Catalyst • evaluating the effects of

temperature, pressure, steam-to-CO molar ratio, and space velocity.

• good mass balance

MTR CO2 membrane

Pre-Combustion Expansion

Oxy-Combustion

• Based on the Transport Reactor Technology

Adaptation of core technology from Kemper County IGCC Plant and National Carbon Capture Center for high CO2 capture.

• An Environmentally Attractive Coal Based Technology

Technology offers “near zero” emissions while burning coal, with emissions comparable to a natural gas combined cycle (a Power Plant with no Stack).

• An Economically Competitive Option for CO2 Capture

Technology is an alternative CO2 capture technology with a projected lower cost of electricity than other coal and natural gas based alternatives for CO2 capture.

National Carbon Capture Center

Project Partners