Carbon Capture & Sequestration Mid-West Electric Consumers Association Chris VandeVenter December 2017

Past, Present, and Future

16 million MWh 2001 Actual energy generated/ Oil 0.02% Hydro 1.16% 2001 Actual energy generated/ purchased by fuel type (MWh) Coal - 98.82% Hydro - 1.16% Oil - 0.02% Natural gas - 0% Wind - 0% Recovered energy - 0% Nuclear - 0% Unspecified purchased power - 0% 16 million MWh Coal 98.82%

29 million MWh 2016 Actual energy generated/ Unspecified 11.8% 2016 Actual energy generated/ purchased by fuel type (MWh) Coal - 66.8% Hydro - 0.7% Oil - 0% Natural gas - 6.7% Wind - 11.3% Recovered energy - 1.1% Nuclear - 1.6% Unspecified purchased power - 11.8% Nuclear 1.6% REG 1.1% Wind 11.3% Natural Gas 6.7% Hydro 0.7% 29 million MWh Coal 66.8%

2015 Carbon Dioxide Footprint Basin Electric and Dakota Gas combined 35.9 million short tons Electrical generation represented: 26.8 million MWh Coal-based and natural gas-based power plants, owned and operated

The World is Changing at Basin Electric Increased wind generation potential Low natural gas prices 800MW 1,400 MW Due to changes in load growth in marketplace, Basin Electric’s surplus position is constantly changing.

What to do with CO2?

CarbonSAFE Carbon Storage Assurance Facility Enterprise Phase 1: Integrated Pre-Feasibility 13 projects - U.S. wide Phase 2: Storage Complex Feasibility 3 projects - U.S. wide Phase 3: Site review (surface and pore space owners, environmental studies, rights-of-way) Phase 4: Permitting and operation of CO2 Sequestration facility

Phase 1 Evaluate source, storage and transportation options Geologic modeling Collect core and outcrop data Define storage potential is

Phase II Public outreach Drill test characterization well Geologic core samples Geophysical testing Seismic surveys Assess Long-term liability

ND CarbonSAFE Phase II Project Determine feasibility of a commercial-scale CO2 storage site in central North Dakota Includes $500K cost share from BEPC $300K cash (2.2% of project total) $200K in-kind (1.4% of project total) Two year project Two Study Areas Golden Valley County (Dec) Center, ND (Jan)

Wyoming CarbonSAFE Integrated commercial carbon capture and storage prefeasibility study at Dry Fork Station Phase I activities are wrapping up Phase II application deadline March 2018 Basin Electric supporting Wyoming Carbon Management Institute’s Application to DOE

Entities of interest University of Wyoming’s (UW) Carbon Management Institute Energy & Environmental Research Center (EERC) Basin Electric Power Cooperative Wyoming Municipal Power Agency Office of the Wyoming Governor Wyoming Infrastructure Authority (WIA)

Integrated Test Center (ITC) Integrated Test Center at Dry Fork Station Opportunities to test CO2 capture & uses XPRIZE Foundation first tenants ($20 million in prizes to foster global innovation in carbon technology)