Carbon Capture and Sequestration Proposal for San Juan Generating Station Prepared by Acme Equities, LLC February 201 9 a Carbon Capture Sequestration is Proven Technology $025 million Petro Nova plant in Texas has been operating hammermally Since January 2017, Designed and Constructed by Mitsubishi Heavy Industries NRG was project manager Hilcorp managed the EOR project Funded by $190 million DOE Grant 80d $250 loan from Japanese Bank for international Cooperation Final Report prepared by DOE is Available CCS removes 90% of C02 from flue gas. C02 is compressed, shipped by pipeline to West Texas and Southeast New Mexico, where it IS permanently Injected into partially depleted oil wells Clean Air Task Force estimates 45 CCS retrofits will be installed on 10000 MW of power plants by 2030 Schematic for Petro Nova CCS Project WA. CAPTURE AND PROIECT now 9.29011 Fina! Pubnc Design upon Award No. CFOA Number 81.131 my uwam deW Mil Eh? ?an Nova Carbon Capture Facility: Initial Experience 3? mtsunism Energy, JX Nippon complete world?s largest post- capture facility on-budget and on-schedule1 combustion carbon EPC consortium award2 Ju\y 2014 Construction start2 September 2014 Performance tests compieted2 December 2016 Commercial operation3 January 2017 2017 Power Magazine ?Plant of the Year" October 2017 1M tons of C02 captured" Capture system continues to meet performance targets Notes/Refs: 1) 2) 3) 4) 5) .wawener For further Information see project ?nal report to DOE: om mm ?aw NOUSTRES menu NC. AI m. San Juan Generating Station with CC . . alternative for New Mexico retrofit is least costly . Solar with Storage costs between $5 36 and 4 Sierra Club/Synapse report 5 per according to - PNM estimates new Wind would require a PPA at $47 per - PNM IRP estimates new Gas-Fired generation will cost $47 per - SJGS with CCS and new coal contract can provide clean power at 10% to 30% discount to Solar, Wind, or Gas-fired We agree with Sierra Club: Require a Transparent Process for Replacement Power and let SJGS bid in the RFP Result: SJGS will provide the lowest cost Replacement Power and Save Jobs 7 33? Juan Generating Station with CCS retro?t is the Third most environmentally friendly alternative for New Mexico CCS retrofit will reduce 90% of C02 emissions from SJGS - SJGS with. CCS generates less C02 per GWH than Wind when you add emissnons from gas-fired peakers . Only Solar with Storage and Hydo produces less (302 Fuel C02 Current San Juan Generating Coal 2182 Four Corners Generating Coal 1864 Reeves Generating Natural Gas 1556 New Mexico 2030 EPA Goal 1146 Afton Generating Natural Gas 930 New Natural Gas Fired Plant Natural Gas 400 New Wind w/Gas Peakers Wind/Natural Gas 300 San Juan Generating with CCS Coal CCS 218. Solar With Storage Solar 0. Hydro Hydro 0 expensive but can be financed through sa\e 2 to Oil industry and 450 Tax Credits 459 - Prqisged Vatue 0* New 0991's $10 i Retrofit will cost between $400 million and 55800 million Mitsubishi Petro Nova project manager use formerly worked for New Mexico we Department of Environment and believes cost of SJGS retrofit could be 30% less than Petro Nova Project can receive financing and grants from DOE as there is strong political interest in demonstrating the Administration lS helping the Coal Industry . Project can be financed by selling the 002 ?m??mmxm?mm'm'mf? to the oil industry and by monetizing the tax credits. i. Meet ENCHANT ENERGY Enchant Energy Corporation (if Enchnat Clean Coal an wraith Station Enchant Solar Company Low-cost 847 MW coal-fired power plant Ownership transferred to Enchant effective 6/30/2019 After 2022. sells merchant power at Palo Verde Hub After 2025 start up of CCS module, SJGC becomes most climate-friendly fossil-fueled power plant in Western USA Develop state-of-art CCS plant adiacent to SJGS Buys electricity and processes flue gas from SJGS Sells CO2 to EOR proiects through Cortez Pipelme Total cost $400 million - $1.2 Billion can be financ Front end costs funded by Federal Clean Coal gr: Benefits from 450 tax credits 40 MW PV Solar Farm Built adjacent to SJGS Sells power under PPA to PNM from replacement power RFP . . gnu-?rm: 1' Ehncant Storage ?l Company A 100 MW 4 hour Storage Stores excess cheap off-peak Low-cost, high quality coal mine supplying 3.25 million Sorter generated by SJEIS tons of coal to SJGS annually from adjacent mine 8 93595 Power pea ate New contract will align Mine and Power Plant economics afternoon period when Solar is not generating McElmo Dome C02 Field Corte CO San Juan Coal Mine/ Westmoreland 40MW Solar Farm SJGS I Flue gas from SJGS to New Farmington CCS Module Dunc.- New 20 mile connector 002 Pipeline Transmission of Merchant Volumes to Palo Verde Hub For Further Information, Contact: Lawrence A. Heller Acme Equities, LLC 745 Fifth Avenue, 6th Floor New York, NY 10022 Lheller@acmeequities.com 212-457-1600