CO2 Capture & EOR Potential

For:

Wyoming Pipeline Authority

July 25, 2006

By:

PLASMA, Inc.

PLASMA

Rich Schuller PLASMA, Inc.58 West QuartzButte, MT 59701406-782-7756

Presentation PLASMA CO2 Capture Technology ready for Commercial Application:

• Ultra High Sulfur & Nitrogen recovery from solid sulfurous fuels – Air Fired Emissive Plant.

• Captures high quality CO2 from existing power plant and new power plants – Non-Emissive or No GHG.

California Governator & Legislature proposing CO2 reduction. BP announces IGCC to make a H2-fired Cogen and CO2 sequestration. PLASMA has formed a Consortium proposing a CO2 Capture Retrofit

Project for a Power Station & near-by Sequestration for Enhanced Oil Recovery (EOR) for SoCal.

Giant CO2 Geological Sequestration potential in Northern Rocky Mountains (Wyoming, Colorado & Montana).

Wyoming CO2 Capture & Sequestration Potential. London CO2 Carbon Credit trading exchanges. Conclusion

PLASMA Emissive Technology Superior

Sulfur Removal superior any other techniques @ 99.9% sulfur removal.

High NOx removal 70 to 85%. Emissions equal or lower than coal Gasification. Emissions equal or lower than gas fired GTCC. Sulfur & NOx removal has over 5,000 hours of

operating experience at 25 & 50 MWt scale. Oxy-firing operating experience at 40 to 50%

O2 for over 5,000 hours. Significant part of PLASMA’s CO2 Capture

Technology or Zero Emission (no GHG).

Coal/Coke,S,N2 + O2/CO2 + K2CO3 CO2 + H20 +K2SO4+KNO3

Coal Fuel + K2

CO2 Recycle CO2

CapturedNo Stack gas

Steam to EOR

Steam to Power

> 98% O2

Solids(K2SO4 & KNO3 & Ash)

PC Boiler

H2O

Non-Emissive CO2 Capture Technology Reactions

Captured CO2 – ultra low SOx <10 ppm & very low NOx

Geological CO2 Sequestration with an Economic Incentive

Enhance Oil Recovery (EOR): Permian Basin commercial operation. Wyoming & Colorado commercial operation. Weyburn Saskatchewan commercial operation. US DOE said Huge EOR Potential in 10 oil Basins in USA with 89

billion barrels increase in reserves. Wyoming huge EOR Potential.

Coal Bed Methane (CBM) the only field study @ Burlington Resources in San Basin Basin:

CO2 enhances Methane production – 3 volumes CO2 produces 1 volume methane.

N2 enhances Methane production – 4 volumes N2 produces 1 volume methane.

Wyoming huge Enhanced CBM potential (has any field work been completed, since last year?)

In April 06 the California Governator proposed and Legislature began the development of a legislative package to limit and control the CO2 emissions in the State. They are proposing a “Cap and Trade” and the proposed cap levels for power generation is shown in the Table below:

California Proposing to Limit CO2 Emissions

http://www.climatechange.ca.gov/ CAPUC & CACEC

Sources:

44.111.9Totals Muni & IO Utilities

25.27.1CAPUC – Total Investor Owned Utilities

18.94.8CEC – Total Municipal Utilities

20202010CO2 million tonnes/ Year

44.111.9Totals Muni & IO Utilities

25.27.1CAPUC – Total Investor Owned Utilities

18.94.8CEC – Total Municipal Utilities

20202010CO2 million tonnes/ Year

California Proposed Legislation - CO2 Reduction Goals

DOE CO2 EOR Study for SoCalMajor Oil Basins & PotentialPower Plants for CO2

CaptureDOE states the fields needing The largest CO2 volumes are:

• OXY’s Elk Hills • Coalinga• AERA’s Ventura Ave Field• San Miguelito • San Fe Springs• Dominquez

California needs at least 4.5Bcf/Day of CO2 forEOR shown above. 65% of CO2 is needed in between Ventura to Santa Maria & Southern SJV. LA Basin has a 35% CO2 requirement.

Morro Bay Idle PG&EKern Plant

Mandalay

Ormand Breach

BP Carson IGCC

Alamitos

Huntington Beach

CO2 Pipelines

California Oil Companies are moving on CO2 Capture & CO2 Sequestration

BP announces in February 2006 that is plans to spend a $1 billion to make H2 and Capture CO2 from coke gasification at their Carson refinery.

BP will build a Integrated Gasifier Combined Cycle (IGCC) producing electric power.

~300 MMscf/d H2 will be made and combusted in gas turbine combined cycle ~500 MWe gross power.

CO2 is recovered from water-shift reactor. 4 million tonnes CO2 will be captured and sequestered at a 90%

recovery rate from coke. Occidental Petroleum is conducting CO2 sequestration for EOR

study for BP. PLASMA formed a consortium with two Major Oil Companies and

currently has not made a public announcement of CO2 Capture Retrofit Project and expected to be announced soon.

O2 ASU

Partial OxidationGasifier

800 to 1200 psig

H2S AmineUnit

Claus &Tail gas

Unit

Steam Gen&

Duct-firing

WaterShift

Reactor

Gas Turbine/Generator

Steam Turbine/Generator

Sulfur (S)

Capture CO2

IGCC Block Flow

Power

Ash

Air

Coke

Acid Syn-gasH2S, CO & H2

H2S

CO & H2 Syn-gas

Air

Flue Gas H2O & N2

H2O & N2

PLASMA Technology Block Flow

O2 ASU

Radiant Section& Boiler15 psig

Baghouse or ESP

Steam Turbine/Generator

Power

Coal or Coke

Air

Steam

Steam

K2SO4 & Ash

Capture CO2

Nitrogen (N2)

Nitrogen (N2)

Oxygen

Oxygen

CO2 Recycle

Steam

Flue GasCO2 & K2SO4

K2CO3

Existing EquipmentLike in

Mandalay Retrofit

New Equipment

CO2

Hydrogen (H2)

CO2 (90%)

Power

Steam

Water

Hydrogen (H2)

O2

Compressor

CO2 10% Where is It??

Comparison of Two CO2 Capture Technologies

CO2 Captured for EOR

CO2 Captured and Sequestrated in Oil Reservoir

Target Generation Station – SoCalInitially Unit #1 CO2 Capture Retrofit

CO2 Capture/Day : Unit # 1 - 95 MMcf/d Unit # 2 - 119 MMcf/d including MHD

CO2 Capture/Yr: Unit #1 – 1.6 MM mt/y Unit #2 – 2.0 MM mt/y Total - 3.6 MM mt/y

PLASMA’s CO2 Capture Retrofit Project Progress

PLASMA has formed a CO2 Capture Project Consortium with 2 Major Oil Companies.

MOU’s for both Power Output & Captured CO2. CO2 will be compressed to liquid and supplied via

new pipeline to oil production fields. Have secured a Major Bank as project advisor. Starting “Lease with Purchase option” discussions

with current owner. Strong support from CA Energy Commission

(CEC). Will inspect and run performance tests at the

target plant in August/September.

665,00041143.02,6555,580Totals for CA CO2Capture Potential

179,00011011.57101,500Reliant –Ormand Beach –

54,000323.5210430Reliant –Mandalay

118,000747.64751,000LS Power -Morro Bay

97,000606.3390820AES -Huntington Beach –

217,00013514.18701,830AES –Alamitos

Potential (*) New EOR Oil

Bbls /D

Gas Credit Not Used Bcf /Yr

CO2

Captured MM T/Yr

CO2

Captured MMscf/D

MW’sTarget Power Generation Station

665,00041143.02,6555,580Totals for CA CO2Capture Potential

179,00011011.57101,500Reliant –Ormand Beach –

54,000323.5210430Reliant –Mandalay

118,000747.64751,000LS Power -Morro Bay

97,000606.3390820AES -Huntington Beach –

217,00013514.18701,830AES –Alamitos

Potential (*) New EOR Oil

Bbls /D

Gas Credit Not Used Bcf /Yr

CO2

Captured MM T/Yr

CO2

Captured MMscf/D

MW’sTarget Power Generation Station

SoCal CO2 Capture from Existing Power Generation Stations

Assumes: 4,000 cf CO2/Bbl oil recovery

Colstrip (931)

Wyodak (142)

Dave Johnson (323)

Laramie (724)

Jim Bridger (898)

Naughton (296)

Craig (570)Hayden (196)

Cherokee (302)

Major Power Plants with~ MMSCF/D CO2 Potential

WillistonBasin

EOR Target

Neil Simpson (55)

Arapahoe (98)Bonanza (170)

Intermountain (697)

Huntington (380)Hunter (560)

Rawhide (128)

Carbon (77)

Cedar Creek AnticlineEOR PotentialAnadarko CO2

Pipeline

CO2 SourceGas CleanupOff-gas

Source: Dag Nummendal

DOE 10 Basin Study CO2 for EOR – Feb. 06

Study conducted by Advanced Resources International – Houston, TX

Summary of DOE’s CO2 EOR Study USA Total – Feb 06

Basin/Region CO2 EOR Technically Recoverable Potential for 10 Regions

Technically Recoverable (Billion Bbls)

CO2 (*) Needed MM scf/D

CO2 (*) Captured

MM tonnes/Yr

Power (*)Capacity

MW’s

California 5.2 2,530 43.1 5,060

Alaska 12.4 6,040 102.9 12,080

Mid-Continent 11.8 5,750 97.9 11,500

Illinois & Michigan 1.5 730 12.4 1,460

Louisiana Offshore 5.9 2,870 49.0 5,750

Permian Basin (**) 20.8 10,130 172.7 20,260

Rocky Mountains (WY

included) 4.2 2,050 34.8 4,090

Texas: Central & East 17.3 8,430 143.5 16,850

US Gulf Coast (Texas) 6.9 3,360 57.3 6,720

Williston Basin 2.7 1,310 22.4 2,630

Total 10 Regions 88.7 43,200 736.0 86,400

Notes: (*) PLASMA calculated 4,000 cf/Bbl CO2 & respective power plant capacities.

(**) Permian current CO2 is from natural geological sources.

How much oil can be produced from CO2??

DOE says at least 89 billion barrels of increased reserves up to as much 430 billion Bbls.

Assuming CO2 Capture happens instantly – assuming a 25 year recovery rate on 89 billion Bbl then the new additional daily production would be 10.8 million Bbls/Day. For a 30 year recovery rate would be then be 9 million Bbls/Day.

USA currently imports about 9 million Bbls/Day. Now this is Real ENERGY INDEPENDENCE !!

Furthermore, it reduces the CO2 GHG emissions, as it has been linked to global warming.

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London PointCarbon - Daily CO2 Price

First 16 months of London PointCarbon Exchange Price Data

1st Year Reality adjustment

Suggestions for Wyoming Last year and repeated again today!

Unitization of fields would simplify the credit issue for those who sign up for CO2 to be used for EOR.

Finance like a “Limited Improvement District”. Where every one does not have to sign up at once, but there is a rebate to the early signors for others capital costs paid by early signors.

Do CO2 field pilot floods studies for Coal Bed Methane for major coal basins with CBM potential.

Do N2 field pilot flood studies for pressure displacement of normal natural fields and CBM coal structures.

Extend WY Pipeline Authority to Williston Basin in Montana & North Dakota.

(New) Why propose IGCC for CO2 Capture Technology for WY Infrastructure Authority RFP? Feds have similar funds available for other technologies!

Conclusion

Message to Wyoming’s favored son VP Dick - “Time to reduce CO2 Emissions… to produce more domestic oil”

Message to Al Gore – “We got the message… It is time to reduce CO2 emissions”

CO2 Capture & Geological Sequestration has substantial economic value while reducing greenhouse gas (GHG).

Good for Wyoming & USA!!PLASMA