1 Canadian Clean Power Coalition: Delivering Results for Over a Decade 3) Fuel Cell Repowering Results

Who Is the CCPC? An association of Canadian and U.S. coal and coal-fired electricity producers, government agencies and research organizations Industry participants include: –Alberta Innovates – Energy and Environment Solutions –Capital Power Corporation –Electric Power Research Institute (EPRI) –Nova Scotia Power Inc. –Sherritt International Corporation –SaskPower –TransAlta Corporation Government Sponsors: –Saskatchewan Ministry of Energy and Resources –Natural Resources Canada (CanmetENERGY)

Our Mandate The CCPC's mandate is to research technologies with the goal of developing and advancing commercially viable solutions that lower coal power plant emissions Our objective is to demonstrate that coal-fired electricity generation can effectively address environmental issues and move us forward to a cleaner energy future

Questions Is the cost of power from a coal plant repowered with molten carbonate fuel cells likely to be lower than a new NGCC? How sensitive are the economics of the repowering case to changes in various key assumptions? Roughly what are the economics for the fuel cell once the underlying coal plant has been retired? 4

Repowering Case - Lingan Six cases were created for comparison purposes –NGCC: Without CCS as key power supply alternative –Lingan: Base coal plant assumed to be new built - no CCS –Lingan & FCE: New base plant plus fuel cells –Lingan w PCC: New base plant plus post combustion capture –R Lingan & FCE: As above but without capital for new coal plant (Retrofit) –R Lingan w PCC: As above but without capital for new coal plant (Retrofit) Only the incremental cost for fuel cell repowering case were studied in detail and costs for all the other cases are based on rough estimates 5

Base Information Note: Lingan & FCE is based on half the Lingan plant 6

Capital Costs Note: $793 million was provided by FCE/Jacobs 7

CO 2 Capture 8 Repowered plant with molten carbonate fuel cells will have almost no sulfur emissions and lower NOx emissions compared to the base plant

Cost of Capturing CO 2 Note: Gas and coal costs are very high in Nova Scotia 9

Repowering Cases - Alberta Six cases were created for comparison purposes –NGCC: Without CCS as key power supply alternative –AB Coal: Base coal plant assumed to be new built – no CCS –AB Coal & FCE: New base plant plus fuel cells –AB Coal w PCC: New base plant plus post combustion capture –R AB Coal & FCE: As above but without capital for new coal plant –R Lingan w PCC: As above but without capital for new coal plant These cases were largely based on the Lingan cases 10

Base Information - Alberta 11 Note: Lingan & FCE is based on half the Lingan plant

Capital Costs - Alberta 12

CO 2 Capture - Alberta 13 Repowered plant with molten carbonate fuel cells will have almost no sulfur emissions and lower NOx emissions compared to the base plant

Cost of Capturing CO 2 - Alberta The cost of capture for the AB Coal w CCS case is $94.5/t without life extension and FGD costs. The cost of capture for the AB Coal & FCE case is $57/t without life extension and FGD costs. 14

Natural Gas Price Forecasts 15

New Build First Year COE - Lingan 16

New Build First Year COE - Alberta 17

Retrofit First Year COE - Lingan 18

Retrofit First Year COE - Alberta 19

Fuel Price Sensitivity - Lingan 20

Fuel Price Sensitivity - Alberta 21

Fuel Price Impact on Capture Cost 22

FCE Capex Sensitivity - Lingan 23

FCE Capex Sensitivity - Alberta 24

Cell Life Sensitivity 25

FCE Output Sensitivity - Lingan 26 Note: This is on the whole output, not just the fuel cell portion. 10% change in output is 44 MW for FCE case. This is 26% of gross fuel cell output.

FCE Output Sensitivity - AB 27 Note: This is on the whole output, not just the fuel cell portion. 10% change in output is 44 MW for FCE case. This is 26% of gross fuel cell output.

Conclusions Molten carbonate fuel cells retrofitted to a coal plant may have a cost of power similar to a new NGCC There are opportunities to optimized the fuel cell costs and benefits The marginal cost and average cost of the fuel cell alone, once capital is sunk, may be similar to the power cost of an NGCC Molten carbonate fuel cells capturing flue gas CO 2 should be demonstrated to better understand their actual operating performance under various conditions and their performance during long term tests 28