1. PRE220_Nick Horler CCS Forum_20091125 25th November 2009 Carbon Capture and Storage Forum 2009 Making the UK a world leader in CCS technology Nick Horler, CEO ScottishPower

2. 2 PRE220_Nick Horler CCS Forum_v1_20091125 The race to deliver CCS - 2007 Were in a real race to deliver CCS The UK announces the CCS Demonstration Competition 2007 2015 Few projects globally CCS relatively unknown UK CCS Demonstration competition launched, 9 entrants The UK is in a promising position to lead in a new technology 20082009 Delivering full chain commercial scale CCS

3. 3 PRE220_Nick Horler CCS Forum_v1_20091120 The race to deliver CCS - 2008 Were in a real race to deliver CCS The UK Competition keeps the UK in the lead 20072015 5 fully integrated projects globally CCS competition launched in Canada. Combined efforts of Alberta Government and Canadian Government to fund 3 to 5 full scale demonstrations by 2015 UK CCS competition down to 4 pre-qualifiers The UK still holds a strong lead in developing CCS 2008 2009 Delivering full chain commercial scale CCS

4. 4 PRE220_Nick Horler CCS Forum_v1_20091120 The race to deliver CCS - today Were in a real race to deliver CCS The UKs lead in CCS is slipping 200720082015 70 projects in planning or underway Canada has named 2 full scale projects to be operational by 2015. More is expected The Mountaineer pilot demonstration has kicked-off. Full scale is expected by 2015 First fully integrated project in Lacq, France expected Australia has committed over 2 billion Australian dollars to fund up to 20 projects by 2020 UK CCS competition is down to 2 2009 Delivering full chain commercial scale CCS

5. 5 PRE220_Nick Horler CCS Forum_v1_20091120 Lacq, France Not yet storing capture CO 2 Full chain CCS pilot Transport via existing 27km pipeline; storage in depleted onshore gas reservoir. Delay in storing capture CO 2. 30MW capture, transport and storage. Claiming to be first full chain CCS pilot demonstration. 120,000 tonnes of CO 2 over a 2 year testing period. Prove 50% CO 2 capture from oxy- combustion, reduce capture cost 50%. Source, Total

6. 6 PRE220_Nick Horler CCS Forum_v1_20091120 Capture and storage – Mountaineer, US Full scale by 2015 Small scale retrofit up-and-running CO 2 is injected into saline aquifer 2,700 metres below power station. Application for $334 million – about half of the estimated cost of full scale. 20MW capture plant commissioned, capturing over 100,000 tonnes per year. 1300MW existing coal power station. 12 to 18 month testing period. Full scale (235MW) by 2015, capturing 1.5 million tonnes of CO 2 per year. Construction of Mountaineer pilot plant Source, Alstom Power

7. 7 PRE220_Nick Horler CCS Forum_v1_20091120 Canada – taking the lead? 3 full scale demonstrations by 2015 Fast tracking CCS development Over 1.6 billion Canadian dollars already committed to 2 projects. 1 more is expected by the end of 2009. Ambition to fund 3 to 5 full demonstrations by 2015. Combined efforts of Canadian Federal Government and Alberta Government. Competition launched in July 2008, 3.5 Canadian dollars put forward. Shells Quest Project (oil) & TransAltas Project Pioneer (coal new build). Construction of Project Pioneeer Source, TransAlta

8. 8 PRE220_Nick Horler CCS Forum_v1_20091120 Longannet Central North Sea A viable scheme capable of delivery by 2014 FEED study worth up to £90m to be announced early next year. Funding mechanism – CCS Incentive established within Coal Policy Framework. Clean coal technology valued at £2-4Bn by 2030. SP consortium bid able to deliver commercial scale full chain CCS by 2014. 60,000 jobs in clean coal sector by 2030. UK CCS Competition down to final 2. Worlds first full scale CCS demonstration The UK

9. 9 PRE220_Nick Horler CCS Forum_v1_20091120 Our credentials… The ScottishPower option Longannet is situated close to the Central North Seas proven CO 2 storage sites We have achieved a significant breakthrough in our testing programme at Longannet that will substantially reduce the CCS energy penalty There will be a ready made skills base left over from the UKs illustrious oil and gas industry Our retrofit solution can be applied to the tens of thousands of power stations operational right now and is essential if we are to avoid carbon lock-in We are demonstrating on coal, which is essential to UK and global security of supply Our world class knowledge transfer scheme will be driven by Accenture Sharing what we learn - www.scottishpowerccs.tv/www.scottishpowerccs.tv/

10. 10 The Mobile Test Unit (MTU) Essential step to achieving capture plant operating cost certainty Bringing CCS out of the laboratory and into reality… First time it has been fitted to a coal-fired power station. A 7 month testing programme that has been capturing CO 2 for over 2000 hours. A cutting edge carbon capture research facility. The programme has achieved an energy reduction of 30%. Tests the complex chemistry in capturing CO 2 from power stations. Exact small-scale replica of a commercial capture plant.

11. 11 PRE220_Nick Horler CCS Forum_v1_20091120 Our credentials… The ScottishPower option By demonstrating at Longannet, the second largest power station in the UK will remain operational beyond the end of the next decade Longannet is situated close to the Central North Seas proven CO 2 storage sites We have achieved a significant breakthrough in our testing programme at Longannet that will substantially reduce the CCS energy penalty There will be a ready made skills base left over from the UKs illustrious oil and gas industry Our retrofit solution can be applied to the tens of thousands of power stations operational right now and is essential if we are to avoid carbon lock-in We are demonstrating on coal, which is essential to UK and global security of supply Our world class knowledge transfer scheme will be driven by Accenture Sharing what we learn - www.scottishpowerccs.tv/www.scottishpowerccs.tv/

12. 12 PRE220_Nick Horler CCS Forum_v1_20091120 A Vision of the Future An integrated capture, transport and storage network for Europe Scotland has unique natural CO 2 storage sites

13. PRE220_Nick Horler CCS Forum_20091125 25th November 2009 Carbon Capture and Storage Forum 2009 Making the UK a world leader in CCS technology Nick Horler, CEO ScottishPower