As a part of the Institute's strategic focus on assisting CCS projects through knowledge sharing, three North American roadshow events will help the industry share project experiences and knowledge about CCS. Taking place in the US and Canada, the three events include: • Austin, Texas on November 8, 2011; • Calgary, Canada on 10 November, 2011; and • Washington, D.C. on 19 January, 2012. The first roadshow focused on sharing project experiences and knowledge from the projects in North America but also brought in projects from Europe (Don valley) and Australia (Callide) so that regionally diverse experiences could be shared amongst a global audience. Attendance at the event was around 30 to 35 which allowed open and frank discussions around technical, management, and regulatory issues and how these challenges can impact on a project’s advancement and decision making processes.

1. Global CCS Institute
Regional Meetings
Austin & Calgary
November 2011

2. Tenaska Trailblazer Energy Center
• Why? Energy Security!
• 600 MW (net) pulverized coal plant
• Post-combustion CO2 capture
– 85 to 90% capture
• CO2 sold for use in enhanced oil recovery (EOR)
– 5.75 million tons/year
– 11.5 million bbls incremental oil production per year
• Total capital cost: $3.5 - $4.0 billion

3. Why Build in West Texas?
• Permian Basin oil fields
for CO2 use & storage
• Dual rail transportation
• Transmission access
• Highway access
• Texas Legislature
approved incentives
• Community support

4. Development Milestones
• February 2008 Project Announced
• September 2008 ERCOT Issued Initial Transmission Study
• January 2009 County Tax Abatement
• June 2009 EPC Contractor - Fluor
• March 2010 Arch Coal Purchased 35% of Trailblazer
• June 2010 Funding Agreement with the Global CCS
Institute
• July 2010 Fluor Econamine FG Plus Carbon Capture
Technology
• December 2010 Final Air Permit
• July 2011 Water Agreement with City of Stamford

5. Lessons Learned
• Global CCS Institute
– 10 Lesson Learned Reports
• Public Engagement
• Infrastructure
• Technology
• Markets
• Financing

6. Public Engagement
• Establish a local presence to help maintain accessibility
and two-way communication with local residents
• Engage with local, state and federal leaders early in the
development process
• Information sharing is an ongoing process.
• Information must be communicated in multiple formats
• Establish and maintain a good stakeholder list

7. Infrastructure
• Water is an emotional issue
• Opponents will use to try to stop projects
• Efforts should be made to reduce water usage to
the maximum extent possible
• CO2 transportation and storage have not been
an issue
• Electric Transmission has not been an issue

8. Infrastructure

9. Dry Cooling
• Reduces water use by 90%
• Average water requirement of 1 mgd
• Increased capital costs
• Lower O&M costs
• Feasible for Fluor’s Econamine FG+ technology.
• Lowest total evaluated cost
– High cost of water in West Texas is big impact
• Dry cooling nominally doubles the footprint of
the carbon capture plant

10. Layout Optimization
• Layout optimization can yield significant results
in terms of project cost and schedule.

11. Layout Optimization
• In-line configuration will result in capital cost
savings of USD$10 million and lower O&M costs

12. Steam Turbine Sizing
A full-sized steam turbine and condensing capability will
allow the facility to operate in the carbon dioxide capture
mode as well as the full power generating mode without
making any equipment changes

13. Steam Turbine Sizing
• There is no significant economic advantage for building
the plant with less than full or near-full steam turbine and
condensing capability

14. Technology Evaluation
• The gas treatment industry is changing rapidly
• Based on its technology evaluation, Tenaska has
confidence that current technology providers can meet
the CO2 capture requirements of Trailblazer
• Look for a technology vendor that has a consistent
scale-up development plan backed by solid
demonstration results.
• There are advantages to selecting a single EPC
contractor/carbon capture technology provider
• Fluor was determined by the 30-year evaluated cost and
commercial experience with the process.

15. Electric & CO2 Markets

16. Electric & CO2 Markets

17. Electric & CO2 Markets
The gap can be filled in one of three ways:
• If oil prices continue to increase, CO2 revenues
potentially could increase enough to bridge the gap
• Electric prices could increase enough to bridge the gap
• Federal policies could change to bridge the gap.
In the future, technological improvements and/or a reduced
risk premium as technology matures also could help bridge
the gap.

18. Financing
• Careful contracting is essential
– Creditworthy counterparties
– Risk allocated to the party best able to mitigate it
• Equity partners
– Strategic or pure financial
– Tenaska selected Arch Coal, a strategic partner
• An economic reason to capture CO2 and/or federal
support is required
– Cap and Trade
– Tax Credits
– Loan Guarantees

19. www.tenaskatrailblazer.com