1. The Costs and Benefits of Carbon Capture and Storage Khosrow Biglarbigi Hitesh Mohan Marshall Carolus INTEK July 16, 2009 Calgary, Canada

2. CO 2 Emissions from Energy Consumption Billion Tons of CO 2 Year 20% Increase Source: US EIA United States

3. So, What Do We Do With It? Transport Use Capture

4. Potential Uses of CO 2 CO 2 Sequestration Industrial Grade Food Grade Options with Environmental and Economic Benefits Options with Environmental Benefits

5. CO 2 Capture Technology Amine Absorber Amine Absorber Flue Gas without CO 2 Feed Gas Lean Solution Pump Lean/Rich Exchanger Amine Stripper Acid Gas Condenser CO 2 Make-Up Water Lean Solution Cooler Source: UOP, Amine Guard TM FS Process 2000. Amine Reboiler

6. Variations of Technology (Proprietary Licenses) Amine with SO 2 removal – Kerr McGee/ABB Lummus Costain Oil Gas and Process Limited (natural gas) Amine Guard and Amine Guard II – UOP Econamine FG – Fluor Daniel, Inc. Hindered Amine – Flexsorb HP (Exxon) and Giammarco- Vetrocoke

7. CO 2 Capture Technology (Cont.) Cold Methanol Pressure Swing Adsorption Hot Potassium Carbonate Membrane (unproven) Amine/membrane combination

8. Cost of Capturing Industrial CO 2 Capture Cost Sources: Global Energy Technology Strategy Program, NETL, and others

9. Pipeline –CO 2 must be dried –High compression required for transport (2000-3000 psig) –Drying and compression cost is estimated at $9 per ton Truck, Barge, Ship –CO 2 is transported as a liquid –Liquefaction infrastructure is required –Additional loading and unloading activities –Liquefaction cost is estimated at $10 per ton –Shipping cost is estimated at $1-$10 per ton CO 2 Transportation

10. Options with Environmental Benefits Brine Aquifer Ocean Bed Storage

11. Options with Environmental and Economic Benefits EOR Coal Bed Methane Gas Bearing Shale Gas Storage Gas Bearing Sandstone

12. Costs and Benefits of Sequestration Dollar per Ton of CO 2 Oil & Gas Res. Brine Aquifer Ocean Bed CO 2 Sequestration Gas Bearing Sandstone Gas Bearing Shale Coal Bed Methane Gas Storage (Base Gas) EOR ($31-55) $36 - 106 ($1-10) ($7- 41) $4 - 41 ($33-75) ($39-106)

13. Example Application in the United States CO 2 Enhanced Oil Recovery Proven Technology 100 Projects in 2008 (USA) Production of 240 MBbl/Day Production MBbl/D Source: Oil & Gas Journal Year Number of Projects Year

14. Projects Using CO 2 from Natural Sources (61 Million Ton/Year) Source: Oil and Gas Journal

15. Industrial Sources of CO 2 (2 Billion Tons of CO 2 in 2007)

16. CO 2 EOR Candidate Fields (1,700 Reservoirs, 20 Billion Barrels)

17. Proximity of the Sources to the Fields

18. Incremental Production Daily Oil Production from Additional CO 2 EOR Total of 4.7 Billion Bbl Daily Oil Production (MBbl) Year

19. Additional Benefit: CO 2 Storage (Cumulative Over 25 Years) CO 2 Stored (Trillion Cubic Feet) 25 Trillion Cubic Feet

20. Summary Capture Technologies are Advancing Rapidly Sequestration Options are Widely Available The Process is Both Site and Project Specific Both Environmental and Economic Benefits can be Realized