c. hobson - recs keynote

7/28/2019 C. Hobson - RECS Keynote

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Research Experience in Carbon Sequestration

Southern Company Research Program

Chris HobsonChief Environmental Officer

Senior Vice President

June 18, 2013


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Southern Company Overview

2

45,700 MW300 generating units

Generation

27,000 line miles3,300 substations

Transmission

159,000 line miles4 million poles

Environmental

$63.2 B total assets$16.5 B revenues$2.3 B Net Income

Financial

Through2012

Distribution

$8.7 B completed projects$3.6 B new projects

Operations


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Southern Company Generating Facilities


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National Energy Policy Priorities

Need a full portfolio of energy resources. Nuclear 21st Century Coal Natural Gas Renewables Energy Efficiency

Need a national, robust research and development effort tocreate new technologies for our future.


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37%Coal

30%Gas

19%Nuclear

7%Hydro

5%

Renewables


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SouthernCompanyGenera0onMix

25and212

Coal

38%Gas42%

Nuclear18%

Hydro2%

Coal

71%

Oil


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Assumptions/Drivers Impacting Fuel and

Generation Mix and Forecasts

Environmental requirements for coal plants Natural gas market conditions and fuel costs Carbon scenariosAssumptions for generation additions (nuclear, renewables, CCS, etc.) Demand growth Transmission system impacts Operationally and environmentally feasible fuels for each plant Transportation costs Mining/fracking issues


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Na0onalAmbientAirQualityStandards(NAAQS)

ParculatemaBer(TSP,PM-10,PM-2.5) Sulfurdioxide(SO2) Ozone(1-hour,8-hour) Nitrogendioxide(NO2) Lead Carbonmonoxide(CO)

Reviewedevery5years

HazardousAirPollutants(MATS)

MercuryAcidgasesOthermetals

WaterQualityandQuan0ty

Waterintakeandfishprotecon

Waterqualitystandards

Thermaldischarges iologicalissues Groundwater LandandWasteIssues

Ash Scrubbermaterial Hazardousmaterials

VisibilityandRegionalHaze

Sulfates Nitrates Parculate

maBer

CurrentMajorEnvironmentalDrivers

GHGsandClimate

PSDandTitleVpermits Emissionperformancestandards ?


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WhyIsCoalImportant?

Between 2002 and 2010, global coal consumption grew at nearlytwice the rate of growth of all fuels. The U.S. has approximately 1/3rd of the worlds total recoverable coal

reserves.

Coal is essential to the U.S. energy economy.

In 2010, coal provided 21% of total U.S. energy consumption and 45% of U.S.electric power.

Energy security and economic stability require energy diversity Cannot rely on continued low shale gas prices, nuclear and renewables.

Coal has the potential to support new electricity demand. Support transportation electrification Substantial vehicle electrification will create demand equivalent to 18 new 600 MW

power plants. Creates market for 33 million tons bituminous or 45 million tons PRB coal.

Fuel diversity in transportation sector reduces dependence on imported oil.


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Challenges Facing Effective Use of Coal

New coal plants are expensive to build and existing coal plants areexpensive to retrofit.

Shale gas has changed the outlook for power generation. Regulatory environment impacting coal and CCS technology

development. Howeverutilities cannot build new coal plants without CCS

With gas the preferred option and the current regulatoryenvironment, no investment in higher cost coal or CCS is expected.

Reality of diminishing budgets for coal RD&D. Need to consider mechanism to support the roadmap funding needs, including an

out of budget mechanism.


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Critical Research for Coal

Emissions Control Research Plant Performance and Reliability Improvements Advanced Generation Development Coal Combustion Byproducts Air Quality Studies Renewable Energy Technologies Carbon Capture and Sequestration


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Research: CustomerBenefits

TechnologyInnovations

Competitiveadvantage

First-handexperience

Regulatory

credibility

Research: Customer Benefits


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30-MW SolarCimarron Solar Facility

One of Largest U.S. Biomass

Nacogdoches Generating Facility

Start-to-finish 25-MW CCS

Alabama Power Plant Barry

Air Quality Science CenterSEARCH network; ARIES; mercury

Integrated Gasification Combined Cycle

Mississippi Power / Kemper County

National Carbon Capture Center

Wilsonville, Alabama

Water Research Center

Georgia Power Plant Bowen

Smart Grid: Integrated Distribution

Management System

Leading New U.S. Nuclear

Georgia Power Plant Vogtle

PowerDelivery and End-Use Technology Lab

Mercury Research Center

Gulf Power Plant Crist

20-MW Solar

Apex Solar Facility

139-MW SolarCampo Verde Solar Facility

30-MW SolarSpectrum Solar Facility

2.5-MW Solar

Granville Solar Facility

Offshore Wind Research

Distributed Solar

Research Programs and New Projects


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The environmental landscape is complex and remains uncertain. Must have diversity of energy sources for lower costs and lower risks. Solutions can be developed to preserve coal with a sense of balance with

regards to reliability, economic consequences and environmental impact.

Expansion of natural gas interstate pipeline system and transmission grid isneeded.

Cumulative impacts must consider all requirements and costs for decisionmaking.

Must invest in research and development that creates innovative, newtechnologies for our future.

Issues and UncertaintiesIssues and Uncertainties

c. hobson - recs keynote

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