Nuon Future plan: Magnum Project Presentation RWTH-Aachen (02.05.2006) Nuon Future plan: Magnum Project

Subjects Presentation RWTH-Aachen (02.05.2006) Introduction Nuon Definition and reasons for the Magnum Project Overall technical data of the Magnum Power Station The predecessor: the Nuon Buggenum Power Station Lesson Learned from the operation of the Nuon Buggenum Power Station

Electricity customers Green electricity customers Presentation RWTH-Aachen (02.05.2006) What is Nuon? Nuon is a Dutch energy company, market leader in the Netherlands Electricity customers 100% = 7 mln Gas customers 100% = 6.4 mln ESSENT DELTA ENECO Nuon Green electricity customers 100% = 2.4 mln Heat customers 100% = 0.2 mln 1) Market share for gas and electricity are based on the number of connections Source: EnergieNed ‘Energy in the Netherlands 2004’, Company reports

Nuon - generation portfolio overview Presentation RWTH-Aachen (02.05.2006) Nuon is third generator in Netherlands 16 ‘grey’ generation assets on 9 premises in 4 clusters; Total installed capacity about 3500 MWe Efficient, dominantly gas fired generation Production of heat for district heating in Utrecht, Nieuwegein, Amsterdam-Zuidoost, and steam for Corus Several renewable assets in 7 European countries, dominantly wind; installed capacity about 500 MWe Syngas development and operational experience: Buggenum (coal, 250 MWe), Velsen (BFG, 400 MWe), IJmond – JV Nuon/Corus (BFG, 250 MWe) Cluster Amsterdam Cluster Oost Cluster Utrecht Renewables Nuon - generation portfolio overview

Presentation RWTH-Aachen (02.05.2006) Why the MAGNUM PROJECT? Establish sound investment decision for the Magnum Power Station. What is the Magnum Power Station? multi-fuel, highly flexible power station; very large capacity (1200 MWe); net efficiency >= PC power station; superior environmental performance; (future) CO2-capture readiness; year 2010/2011: connected to the E-grid; based on the Buggenum power station; “Lessons Learned” incorporated in design.

Rationale for the Magnum Project Presentation RWTH-Aachen (02.05.2006) Rationale for the Magnum Project Nuon must build at least 1200 MWe new power production capacity: replacement of old power stations with rather moderate efficiency; growth in electricity consumption. IGCC (entrained bed technology) offers superior production and trading opportunities: can gasify a multitude of fuels with high efficiency and without operational problems; can therefore adequately respond to changes in fuel market prices; can produce both base load and peak load E-products; can co-gasify large amounts of renewables (subsidies). Best Available Technology for Power Production with CO2-capture: moderate efficiency losses when CO2 is captured; Best Available (Environmental) Technology : SO2 removal: >99 %; NOx-emission: can comply to requirements beyond year 2015; dust: negligible; heavy metals: emissions: Ni: 1.5%; As: 1%; rest negligible.

Presentation RWTH-Aachen (02.05.2006) Gasifier (# units) CC Power Nat.Gas Air Separation Unit Steam / Heat Emissions N2 Syngas Air O2 Coal Sec. Fuels By-products Section 1: Gasification Section 2: Air Separation Section 3: CCGT Gas cleaning Steam CO2 capture Solid Biomass Chemicals Cooling Water Oxygen and Nitrogen production Entrained flow gasifier Wet gas cleaning Acid removal Waste water treatment Demin water production Maximum syngas production 900 –1200 MWth By-products CO2 Combined Cycle Dual fueled Gas Turbines (Syngas and/or Natural gas fired) 5 x 250 MW CC Units Total Heat Input 2600 MWth Total Electrical Output 1200 MWe Simplified BFD of the Magnum Power Station Ultimate design subject to change.

The Predecessor: the Nuon Buggenum IGCC Power Station Presentation RWTH-Aachen (02.05.2006) The Predecessor: the Nuon Buggenum IGCC Power Station Nuon Power Buggenum BV Net Output: 250 [MWe] Coal input: 2000 [t/d ] Shell Gasification Technology Gas turbine: Siemens V94.2 Start up 1993 Ramp speed: 3.5 [MWe/min]

Presentation RWTH-Aachen (02.05.2006) Simplified Process Flow Diagram of the Nuon Buggenum Power Station Coal Milling and Drying Coal Dust Feeding Coal Gasification Syngas Dedusting/ Dehalogenation Syngas Desulphurisation Clean Gas Conditioning/ Power Production

Presentation RWTH-Aachen (02.05.2006) “Lessons Learned” from Nuon Buggenum Power Station Operation; Technical overview Technical Problem Areas: Syngas Production/Treating Waste Water Production Combined Cycle/ Air Separation Unit Work Done: 5000 plant design changes!

Presentation RWTH-Aachen (02.05.2006) “Lessons Learned” from Nuon Buggenum Power Station Operation; General Overview Problems encountered Mechanical problems Process problems; process control problems Organisational problems

Presentation RWTH-Aachen (02.05.2006) “Lessons Learned” from Nuon Buggenum Power Station Operation; Mechanical/Material Problems Gasification Island Thermal stresses caused by non-flexible tube-vessel penetration Severe erosion/corrosion problems in gasification water systems Severe corrosion in syngas scrubber Severe damage of structures with ceramic lining Flaws in the construction of the dust filter

“Lessons Learned” from Nuon Buggenum Power Station Operation. Presentation RWTH-Aachen (02.05.2006) “Lessons Learned” from Nuon Buggenum Power Station Operation. Process problems; process control problems Gasification Island Coal dust feeding problems Slagging problems in gasifier Degradation of H2S-absorbent Widespread scaling in waste water systems Combined Cycle Unit/ Air Separation Combustion instabilities in gas turbine Product purity of oxygen/nitrogen

“Lessons Learned” from Nuon Buggenum Power Station Operation. Results Presentation RWTH-Aachen (02.05.2006) “Lessons Learned” from Nuon Buggenum Power Station Operation. Results Syngas + Natural gas Syngas only

Conclusions Presentation RWTH-Aachen (02.05.2006) Nuon regards IGCC as the best option for a future new to build large power station. The reasons are that: IGCC has/is: Superior fuel flexibility Best Available Technology for power production with CO2-capture Best Available (Environmental) Technology Nuon is experienced with IGCC-operation: “Lessons Learned” from the Nuon Buggenum Power Station will be fully implemented in the Magnum design

Thank You for your Attention! Presentation RWTH-Aachen (02.05.2006) Thank You for your Attention!