Summit Power Group &  Summit Carbon Capture

Summit Power Group &  Summit Carbon Capture

Overview Presentation December 2013Overview Presentation December 2013

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DisclaimerThis presentation is not intended to form the basis of any investment decision and does not contain any recommendation by Summit, or any of its shareholders, subsidiaries, directors, employees, agents, or advisors (“Summit Parties”). This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction.

Although the information contained in this presentation is believed to be accurate as of the date presented, Summit and the Summit Parties make no representations or warranties (express or implied) regarding its contents.

Some information contained in this presentation is based on forecasts and projections that may change or prove to be incomplete or inaccurate. Summit and the Summit Parties do not undertake any obligation to provide the recipient with additional information, to update this presentation, or to correct any inaccuracies that may become apparent.

Nothing in this presentation should be considered to be legal, tax, or investment advice. Recipients should consult their own professional advisors prior to making any business decisions relating to the information herein.

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Leading Market PositionSummit Carbon Capture, LLC (SCC) is a wholly owned subsidiary of

Summit Power Group, 

developed to capture emerging opportunities in carbon capture and enhanced oil recoveryDeveloper of  Texas Clean Energy Project –

intended to provide >2 million tpy

to Permian CO2 

EOR marketMinority owner of significant oil reserves in Permian Basin, the

world’s oldest and largest market 

for CO2 for EOR. Deep pipeline of earlier stage projects and technology joint ventures for CO2 capture that 

provide significant first mover advantagesExperienced Management TeamSCC principals have developed over $9B and 9.5GW of power generation assets and are amongst 

the world leaders in the finance, engineering, and legal aspects

of CCUS project developmentWorld Class PartnershipsTechnology Providers: Long term relationships with Linde

and Siemens, two leading technology 

providers to the CCUS industry, as well as JVs and development agreements with a host of other 

players including Sinopec

Engineering GroupLocal Relationships: Extensive relationships in the Permian Basin and other target markets

SCC and Its Business

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Why Now?

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Business and Policy Environment• The federal government has announced a major effort to address greenhouse 

gas emissions in the U.S. which includes additional support for CCS• The EPA plans to regulate power sector CO2

emissions from both new and 

existing power plants (this strengthens Summit’s business lines)• The federal policy effort also includes $8 billion in new DOE loan guarantee 

authority for advanced fossil fuel projects with carbon capture.• State level momentum continues to grow

– California agencies are seriously sorting through CCS compliance

issues– Colorado has an ability to let utilities pay “premium”

prices for CCS power, and is 

considering modifying its RPS to include CCS as a qualifying resource

– Michigan has a RPS that allows CCS projects to participate along

with renewables– Several states are considering implementing Low Carbon Fuel Standards where oil 

produced from CO2 capture and EOR could potentially qualify

SPPR – Gas Fired Combined Cycle  Project

“Summit Power Group was very involved in the project management, construction and commissioning of the 204 MW White Creek Wind Project, which Lakeview Light and Power helped develop with Cowlitz PUD, Klickitat PUD and Tanner Electric Cooperative.

The Project reached its commercial operation date ahead of schedule in 2007 thanks in large part to Summit’s involvement, which included thoroughness and a "Can Do" attitude.

We enjoyed working with Summit, and I would not hesitate to consider them on future projects.”

Brian SkeahanGeneral Manager – Cowlitz PUD

White Creek Wind, 204 MW

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I have been working with the Summit Group for the last 4 years on our Lake Side #1 Project. Summit’s involvement included all the complex pieces from development thru substantial completion. I would highly recommend this group for anyone's project needs. I am looking forward to working with the Summit Group on our next Project – Lake Side #2.

Clint Winn, Project Manager Lake Side Project Vineyard, Utah 84042

Lakeside I – 2 x 1 Siemens 5001F CCGT

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Fire Island Wind Project, Anchorage AK - 17.6 MW

“Summit Power Group was instrumental in helping CIRI close the Power Purchase Agreement and then develop, obtain approvals and close financing for the Fire Island Project. Their team of industryexperts is resourceful and persistent when project challenges arise. CIRI will look forward to working with Summit on future projects”

Suzanne L. Gibson, Senior Director, Energy ProjectsCook Inlet Region, Inc.Anchorage, AK

Texas Clean Energy Project Overview

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Introduction: The Texas Clean Energy Project

• Slated to begin full-release of construction in early 2014

• Will capture 3 million tons of CO2 /year

• 2.2 million tons of CO2 for enhanced oil recovery, yielding 6 to 7.5 million barrels of oil per year

• Fully permitted, without opposition

• Fixed price, turnkey EPC contracts

• $450 Million award from U.S. DOE

• $637 Million in investment tax credits from DOE and Treasury Department

• 100% of primary outputs already sold on long-term contracts

• Consists solely of commercially proven technology and components, all fully guaranteed (no new technology)

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TCEP Schematic

Coal 1.75mm tpy

Coal Gasification, Gas Cleanup, and Gas Separation

Water

PRB Coal via Railroad High Hydrogen Power Turbine

~60% of Syngas

~40% of Syngas

Main Outputs “High Hydrogen” Syngas

(~95% H2 / 5% CO) & Pure CO2

~30% of CO2

~70% of CO2

Ammonia / Urea Complex

CO2 Delivered to Oil Fields via Pipeline

[200] MW low carbon power

delivered to City of San Antonio

930,000 tons/yr delivered to

CHS Inc.

2.2mm tons per year delivered

to Oil Companies

Brackish Water Purified via Reverse

Osmosis

OxygenAir Separation Unit

* Additional revenue from sales of sulfuric acid, argon gas, & minor products

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Siemens Gasifiers (SFG-500)—Sustec design from 1984

Source: Summit Power Group

Air Separation Unit—Carl von Linde 1895, 2,800 since

Source: Linde

Old Technology; Blue Chip Equipment Suppliers

Linde RECTISOL® CO2 Unit—dates from 1955

Source: Linde

Ammonia-Casale “Haber NH3 Process”—dates from 1913

Source: Linde

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Key development tasks are substantially completeSite Acquired and Permitting Finished • Record of Decision from US DOE on 9/29/10 (completes NEPA / EIS process)• Air permit issued 12/28/10 (no greenhouse gas emissions limits)

FEED study

Water rights • Secured water rights to a non-potable water supply in the Oxy-Permian Capital Reef from Massey Ranch

Offtake agreements • 100% of power sold to CPS Energy for 25 years (city energy utility for San Antonio, TX, seventh largest U.S. muni electric)• 100% of CO2 sold for 30 years (three different buyers; market very strong)• 100% of urea sold for 15 years (CHS Inc., farmer cooperative, #78 on Fortune 100 list)

Fixed Price/Turnkey/Guaranteed Lump-sum EPC contracts• Siemens contract signed and in place for power plant• Sinopec Engineering expects to replace Linde/SK E&C contract (new contract to be signed next few weeks; MOU in place)• Two contracts work together to ensure integrated, complete, high-performing plant with lump-sum, fixed-price, turnkey EPC contracts

O&M agreement • Provides 15-year warranties for project performance, including efficiency, reliability, availability, and pollution control• Design review, pre-operations, commissioning and 15 year operations and maintenance agreement executed• Joint venture planned for full plant operations by Linde and Siemens

Financing• $450 million U.S. government grant• Loan from China Export-Import Bank• Substantially all equity has been raised from offtakers and global commodity firm. Additional $50-100M needed

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Why Does CO2 Capture Make So Much Difference in USA? — Valuable CO2 Recovery Negates “Cheap Shale Gas”

Coal Feedstock CO2Recovery

Price (per ton) $45 (delivered to plant gate)

$35 (sold - plant gate)

Input: Output 1 million tons bought* 2.2 million tons sold**

(Cost)/Revenue ($45 million) +$77 million

*1.75 mm tons per year coal bought, but about 0.75 of this directly passed through to power buyer. So project only has an economic exposure to 1.0 mm tons per year.

**In TCEP project gross capture is 3mm tons CO2/yr, but .8 mm tpy used for urea production, leaving 2.2mm tpy to be sold for EOR.

Net Fuel Cost $32 million profit

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SCC Future Growth

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Natural Gas Fired Power with CO2 Capture• Summit has done considerable work evaluating the technology and project 

economics of this platform (NGCC with PCC)• We believe there is an opportunity to develop these projects today

and that 

Summit is strongly positioned lead the industry in their development. The major 

attributes of these projects are:• Manageable scale and capital requirements• Modest premium on electricity pricing needed (e.g. competitive with renewables)• Nearly zero emissions & very reliable power while also producing

more local oil

• Key market factors needed for these projects:• Access to EOR markets• Demand for power• Accommodating regulatory and policy environment 

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Coal Plant RetrofitsLarge Potential for Small Number of Plants•Limited number of project opportunities

o Need alignment of plants around access to CO2 markets and existing emission 

controls

•Enormous volumes of CO2 available from these few plants•1‐2 punch of low gas prices and new air regulations is depressing the value of 

existing coal power plantso Opportunity exists to convert these plants from “environmental offenders”

to 

“low‐carbon workhorses”

•Primary opportunities are around access to existing infrastructure accessing the 

EOR industry in Permian Basin and Eastern Gulf

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Chris TynanDirector, Project Finance Summit Power GroupTel: (202) 783 2642 Email: ctynan@summitpower.com

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