Energy & Process

Analyst visit to M1 J10-13 & RRRL Facility, Belvedere

Martin Land, Sector Director - Power

1 July 2010

‘Choosing Costain’

‘Choosing Costain’ 1

Energy & Process

Power

New nuclear

Fossil fuels

Renewables

Transmission &

Distribution

Fuel reprocessing

Waste

management

Decommissioning

Clean-up

Nuclear

Process

Hydrocarbons

& Chemicals

Cryogenic gas

processing

Gas storage

Transportation

Chemicals,

petrochemicals &

polymers

‘Choosing Costain’ 2

Costain in Power

Offering

Mechanical, Electrical and Civil Offering (consultancy and construction)

Leaders in Safety and IR

Works for both Customers and with OEM

Customers

Utilities, IPPS, OEMS

Market orders expected over £100bn in next ten years

- With up to £200bn in twenty years

Characteristics

Costain experienced in Complex Project Delivery including consultancy

Our Technical Neutrality allows flexibility in delivering solutions

Our engineers are experienced in Configuration and Integration Management

Our Customers need trusted partners

‘Choosing Costain’ 3

Changes in UK Generation Capacity to 2025

-20

-10

0

10

20

30

40

50

60

70

80

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Cap

acit

y (

GW

)

Year

Interconnector

Other Renewable

Wind

Coal

CCGT

Nuclear

Closed

Unavailable

39.9 GW

77.0 GW

13.7 GW 13.7 GW

Source: National Grid – 2010 – 7 year statement

‘Choosing Costain’ 4

Power – Growth Market

Market drivers

Climate concern driving renewable and

nuclear programme

UK Generation fleet must be replaced

Additional generation capacity needed

Customers

Segments targeted

Fossil fuels

Renewables

Transmission

Nuclear conventional island

‘Choosing Costain’ 5

Power – Cleaner Fossil FuelsKey transition role/natural resource

Market drivers

Decarbonisation

Life expired generation assets

Plentiful Gas offers Quick Build solutions

Clean Fossil markets - >10GW, c.£25Bn

Customers

Utilities

IPPs – Market Reward new entrants

Characteristics

High efficiency Gas Turbines

Costain to host Non UK OEM

Customers want receptive delivery teams

Fossil Fuels

Conventional Gas - CCGT

Coal with Gasification - IGCC

Pulverised Coal with CCS

Unique Offering

UK based Engineering and Construction

Costain lead on Safety and IR

Management

‘Choosing Costain’ 6

Gas Projects - Opportunities

In Development In Planning Granted

ESBI – Carrington (800)

Intergen – Spalding (800)

Drakelow (1200)

Damhead Creek (800)

Kings Lynn (800)

(XXX) = MW Electrical Output

Barking Reach (800)

Willington (1200)

Abernydd (Baglan) (800)

‘Choosing Costain’ 7

Thermal Power Plant - Cross Sector Capability

Current 2013 -2015 2016 - 2018 2019 ff

Nuclear

Gas

Fossil IGCC

Coal

Technology

Advancement

WasteRepeat business

Biomass

‘Choosing Costain’ 8

Power – Wind of Change

Market drivers

Decarbonisation

Security of Supply

Potential for 40GW market - £120bn

Customers

Utilities

IPPs – Reward Market entrants

Characteristics

Support through ROCs and FITs

Costain Programme management

Costain lead on Safety and Construction

Clients need partner teams to succeed

Renewables

Wind – Onshore and Offshore

Biomass – Inshore and Coastal

Wave and Tidal

Unique Offering

Work with Customers on all technologies

Mega projects

‘Choosing Costain’ 9

Renewables – Biomass OpportunitiesIn Development In Planning Granted

E.ON – Portbury Dock (150)

SSE – Ferrybridge (90)

RWE – Stallingborough (65)

SSE – Leith (200)

SSE – Rosyth (120)

SSE – Grangemouth (120)

Drax/ Siemens – Ouse (290)

Drax/ Siemens – Heron (290)

Drax/ Siemens – Hull (290)

Drax/ Siemens – Port of Tyne (290)

RES – Blyth (100)

Dong – Hull (300)

PREL – Sutton Bridge (100)

Infinis – Killoc (45)

Anglesey Aluminium Metal Renewables – Penrhos

(299)

MGT Power – Tyne (300)

ECO2 – Brigg (40)

Dalkia – Pollington (52)

EPR – Thetford (40)

Prenergy Power – Port Talbot (350)Vogen Energy – Newport (25)

E.ON – Blackburn Meadows (25)

Helius – Avonmouth (100)

Scottish Power – Longannet (25)

Welsh Power – Nevis (50)

ECO2 – Mendlesham (40)

Bio Energy – Port Clarence (49)

Western Log Energy – Margam (35)

Energy Power Resources – Thetford (40)

W4B – Portland Port (17.8)

W4B – Bristol (50)

AES – Kilroot (300)

Bronze Oak – Castle Cary (11)

BSW Timber – Corpach (20)

Pontrillas Renewable Energy - Hereford (10)

Express Energy – Blaneau Gwent (20)

Rio Tinto/ Tanaris – Fort William (18)

Dingle Holdings – Coadbach (50)

Dingle Holdings – King’s Dock (50)

Red = Planning declined Amber = Possible to go ahead Green = Probable to go aheadKey:(XXX) = MW Electrical Output

‘Choosing Costain’ 10

Power - Nuclear New Build Capability Transferable

Market drivers

Decarbonisation

Security of Supply

Potential for 20GW market - £100bn

Market Mechanisms

Customers

Utilities – some in JV

Characteristics

Significant Project Undertakings

Costain lead on Safety and Construction

Customers need extended projects teams

Nuclear renaissance in UK

Arreva PWR and Westinghouse AP1000

New Build, Operations & long term UK

investment

Unique Offering

Working on enabling works

Flexible for Employers and OEM work

‘Choosing Costain’ 11

Costain in Power

Offering

Mechanical, Electrical and Civil Offering (consultancy and construction)

Leaders in Safety and IR

Works for both Customers and with OEM

Customers

Utilities, IPPS, OEMS

Market orders expected over £100bn in next ten years

- With up to £200bn in twenty years

Characteristics

Costain experienced in Complex Project Delivery including consultancy

Our Technical Neutrality allows flexibility in delivering solutions

Our engineers are experienced in Configuration and Integration Management

Our Customers need trusted partners