Presentation to theNorth Carolina DENR/DAQMercury/CO2 WorkshopApril 19-21, 2004

Presented byGerald R. Hill, Ph.D.Senior Technical AdvisorSouthern States Energy Boardhill@sseb.org

Southern States Energy Board

Southeast Regional Carbon Sequestration Partnership

Regional Partnerships

WC West Coast

Region

GP Great Plains Region

SW

Southwest Region

SE Southeast

Region

MW Midwest Region

55

77

11

33

44

66

22

Saskatchewan Manitoba

Kyoto protocol demonstrates growing evidence that Greenhouse Gases are affecting global climate – CO2 most significant

“International consensus” document, but not accepted by US

Exempted developing countries and scientific basis questioned

In response to Kyoto, President Bush initiated national sequestration program

Aimed at reducing greenhouse gas intensity 18% by 2012

Aimed at achieving emission goal in a manner that sustains economic growth

Established seven regional partnerships across country

Regional Partnerships and National Program

Regional partnerships to identify

Sources, sinks, infrastructure and potential uses of CO2 in region

Regulatory and public perception issues

Issues for technology deployment

Potential impacts of sequestration on region

Regional Partnerships and National Program (continued)

In the southeast region, coal and natural gas (the primary sources of CO2) are major fuels for electricity production

44% of total US CO2 emissions originate from sources in 16 of SSEB’s member states, over 25% from the partnership’s 11 states (EIA, 1999)

Significant potential terrestrial and geologic sequestration sinks exist in the SSEB region

Significant opportunities exist for value-added CO2 usage, that also achieves sequestration [e.g. enhanced oil recovery (EOR) or enhanced coalbed methane production (ECBM)]

Importance of CO2 to the Region

CO2 Emissions by US Census Regions

11.3%

0.8%

0.1%

12.4%

11.3%

0.8%22.2%11.7%

21.1%

12.0%

7.5%

Diverse Partnership CompositionState Executive &

Legislative Leadership

Natural Resource Advocates

Energy Producers & Associations

Sequestration & GIS Research

Electric Utilities & Associations

Southern States Energy Board (SSEB)

Ken Nemeth, Overall Project Manager

Kathy Baskin, Overall Administrative Manager

Gerald Hill, Overall Technical Manager

Diagnostic Information & Analysis Laboratory (DIAL) at Mississippi State University

John Plodinec, Senior Technical Advisor

Electric Power Research Institute (EPRI)

Richard Rhudy, Senior Technical Advisor

Augusta Systems (AS)

Pat Esposito, Technical Advisor & Geologic, Industry and Public Outreach

Patrick Esposito, Technical Advisor & Regulatory, Permitting, and Public Outreach

United States Department of Energy / National Energy Technology Laboratory (USDOE/NETL)

Karen Cohen, USDOE Project Manager

Regional Partnership Leadership

Industry Members

SSEB Associate Members and Utility Advisory Committee

Southern Company

Duke Power

Tampa Electric Company

Progress Energy

SCANA

South Carolina Electric and Gas Company

Interstate Oil and Gas Compact Commission

The North American Coal Corporation

Center for Energy and Economic Development

Oak Ridge National Laboratory

Clean Energy Systems, Incorporated

Regional Partnership “Technology Coalition”

Partnership Program

CO2 Sources / Sinks

CO2 Capture Technologies

CO2 Sequestration Potential

Terrestrial and Geological

Transportation Methodologies for CO2

Existing Infrastructure

Commercial Uses of CO2

Technical Barriers

Public Involvement, Education and Acceptance Methods

Regulatory, Permitting and Accounting Frameworks

Measurement, Monitoring and Verification Protocols

Define geographical boundaries of the

region

Task 1SSEB

Characterize the region

Task 2EPRI

Identify and address issues for technology

deployment

Task 3DIAL

Identify preferred capture,

sequestration, and transport options

Task 5EPRI

Prepare plans for technology validation

activities

Task 6DIAL

Develop and plan public involvement

and education

Task 4AS

Partnership Will Identify:

Communicate/collaborate with other interested parties inside and outside the region to execute an effective outreach program

All Regional Carbon Sequestration Partnerships

Federal, state, local and tribal governments

Technology developers

Industry partners

Community organizations

External Lines of Communication

Potential Issues and Obstacles and Methods for Mitigation

Carbon sequestration issue poses significant communication and education challenges

Barriers to the implementation of the most promising options could require extensive changes to regulatory and permitting requirements

Next Steps

Continue progress on Tasks 2.0 and 3.0 Activities

Initiate work on Tasks 4.0 and 5.0

Participate in the Third Carbon Sequestration Partnership Meeting, May 2-5, 2004

Participate in the NETL Workshop, May 6, 2004

Convene the SSEB Chairman’s Forum on Carbon Management, May 19-21, 2004

Maintain the www.secarbon.org website

Presentation to theNorth Carolina DENR/DAQMercury/CO2 Workshop

Gerald R. Hill, Ph.D.Southern States Energy Boardhill@sseb.org

Southern States Energy Board

Southeast Regional Carbon Sequestration Partnership