Securing Affordable and Sustainable Energy

Sustainable Energy Finance & Investment Summit

Geneva, 17 November 2011

Giles DicksonVP Government Relations Europe, Alstom

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

Equipment & services for power generation

Alstom Thermal Power

Equipment & services for rail transport

Alstom Transport

Equipment & services for power transmission

Alstom Grid

Alstom Renewable Power

Alstom = 4 businesses

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

Alstom Group Presentation - July 2011

Gas Coal

Hydro Nuclear (Conventional island) Wind

Oil

Solar Geothermal Biomass

Alstom: all forms of power generation

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

Stabilizing emissions = huge investments

Emissions CO 2(Gt/year)

2008 IEA 2010 Current Policies Scenario

IEA 2010New

Policies Scenario

IEA 2010 450 ppm Scenario

Technology Mix

Efficiency

CCS

B-A-U Scenario

Challenge: more than doubling today’s investment levels (US$165 billion/year) while dropping emissions intensity to a quarter of today’s level (0.52 kgCO2/MWh)

-10GtCO2/year

-14GtCO2/year

8'500

9'000

9'500

10'000

10'500

11'000

11'500

IEA 2010New Policies

Scenario

IEA 2010450 ppm Policies

Scenario

Total required investments in power generation sector over the period 2010–2035 in US$bn

US$60 billion/year

9’632

11’100

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Portfolio needed

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

Nuclear PlantsSteam Plants

GT PlantsHydro Plants

OthersWind Plants

2008GW

EU Power Generation

1998

1988

1968

AgeYear

1978

Source:Alstom & UDI0 10 20 30 40

1

5

9

13

17

21

25

29

33

37

41

45

49

2%

7%

21%

18%

15%

37%

Fossil fuels still dominate

coal

gas

nuclear

hydro

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie HennesClean Power Day The Netherlands- Clean Power Strategy - November 3rd, 2011 - P 7

Make power generation more efficient

New

Plants

Retrofit

60% of the 2030 installed base still to be built

60% of Carbon emitted in 2030 will come from today’s installed base

Automation Retrofit

- 1% CO2

Coal: +5 p.p in efficiency saves 10% emissions

Plant Optimisation:

-5% CO2

Turbine retrofit:

-5% CO2

Boiler retrofit:

-3% CO2

Fleet automation

Optimization of the use of CO2 free power

Gas: +5 p.p in efficiency saves 8% emissions

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie HennesClean Power Day The Netherlands- Clean Power Strategy - November 3rd, 2011 - P 8

Make power generation more flexible

Fuel Flexibility

Operational Flexibility

Ensuring CO2 reductions and Energy Security

Maximising renewable technologies – greater choice to fleet operators

Automation & Controls

Incl: Monitoring & Diagnostics

Biomass Co-firing

Gas Plants

Solar Hybrids

For Steam and Gas

Hydro Pumped Storage

Solar CSP

Thermal Storage

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

Restructure the Grid … today’s AC Grid

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

Restructure the Grid …. what’s needed

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

Smart Grid

Operate CCGT between 9am and 4pm at 80% and

standby for Grid services

Tomorrow Weather : Sunny & warmWindgeneration

forecast 25MW

Charge Hybrid Cars with Solar Panels

Buy 150kW green energy balance to market

for Air Cond

Day Ahead Price at 60Euros/MWh &

20Euro/Carbon tonSource: Alstom

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

Energy Positive Buildings

100KW Generation 1MW Generation

1,5MW Generation-Storage 10MW Generation-Storage-FlexDemand

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Clean Power Day The Netherlands- Clean Power Strategy - November 3rd, 2011 - P 13

Wind: focus on offshore

• On shore wind part of the main Power Generation stream

• Broad geographical applications

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

Completed

Presentation Title - Presenters Initials - dd mmm yyyy - P 14

Vattenfall Schwarze Pumpe

Germany - 30 MWthOxy - Lignite

Vattenfall JänschwaldeGermany - 250 MWe

Oxy - Lignite

Dow Chemical Co. USA, West Virginia Adv. Amines - Coal Transalta

Canada - >200 MWe Post - Coal

Alstom BSF WindsorUS - 15 MWthOxy - Coals

Getica - CET TurceniRomania – >250MWe

Chilled Ammonia - Lignite

Selected by Alberta and Federal Canadian funding

PGE BelchatowPoland – 260 MWe Adv.

Amines - Lignite

AEP MountaineerUSA – 235MWe

Chilled Ammonia - Coal

Make CCS happen

DOE/Alstom WindsorUS – 3 MWth

Chemical looping, Coal Drax - SelbyUK - 426 MWe

Oxy – Hard Coal

NER300

2 Gen

NER300

NER300

NER300

Selected for receiving EEPR funding

NER300: Applied for EU ETS New Entrant Reserve funding

EoN Karlshamn Sweden - 5 MWth

Chilled Ammonia -Fuel

WE – Energie USA WI - 5 MWth

Chilled Ammonia, Coal

ON HOLD

ON HOLD

AEP MountaineerUSA - 58 MWth

Chilled Ammonia, Coal

Total LacqFrance - 30 MWth

Oxy - Gas

Under Construction

TCM MongstadNorway - 40 MWth

Chilled Ammonia - Gas

EDF – Le HavreFrance – 5 MWth Adv.

Adv. Amines - Coal

Operating

Alstom Labs VäxjöSweden – 0.25 MWthPost C. – multi purpose

RFCS EU - Darmstadt Germany - 1 MWth

Chemical looping, Coal

2 Gen

Pre-commercial Projects

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

0

200

400

600

800

1.000

1.200

IEA 2010 NewPol Gas + Coal

IB

450 ppm Gastarget

0

200

400

600

800

1.000

1.200

IEA 2010 Cur PolGas + Coal IB

450 ppm Gastarget

EU27 - CO2 emissions path to 450 ppm objective

Deploy CCS on gas ….

Mt CO2Current Policies scenarioCurrent Policies scenario New Policies scenarioNew Policies scenarioMt CO2

Under both scenarios, CCS needed also on gas to rea ch 450 ppm

20302030 20302030

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

150

200

250

300

350

400

450

IEA 10 CurPol Gas IB

RealisticCCS

Missing 450 ppmGas target

150

200

250

300

350

400

450

IEA 10 NewPol Gas IB

RealisticCCS

Missing 450 ppmGas target

… retrofit CCS on gas

Mt CO2Current Policies scenarioCurrent Policies scenario New Policies scenarioNew Policies scenarioMt CO2

50% of reduction target 46% of

reduction target

If no retrofit CCS on existing gas plants, only 50% of required 2030 emissions reduction

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie HennesClean Power Day The Netherlands- Clean Power Strategy - November 3rd, 2011 - P 17

Real CO2 impact of investments

Methodology & Results verified by PwC – July 2010

0

20

40

60

80

100

120

140

160

180

2002 2003 2004 2005 2006 2007 2008 2009

MiotCO 2/year

27

62

84

104

131

120

152

175Independent audit byPriceWaterHouseCoopers(PwC) in 2010

Reducing CO2 emissions by > 175 million tons of CO2/yr

Cumulative annual CO 2 reductions from the operation of Alstom Power offerings commissioned between 2002 and 2009

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

8465

0

100

200

300

400

Nuclea

r

Hydro

Geo

ther

mal

CCGT CCS 2

015

Ons

hore

Wind

PC Har

dcoa

l CCS 2

015

Offs

hore

Wind

Solar

PV

Solar

The

rmal

€ / MWh CoE - Low Carbon technologies Europe in 2011-2016 period

Reference case

Source : Alstom analysis 2011. CCS 2015 costs, including on shore T&S and CO2 price (Flue Gas Recirculation case for CCSGas CC, average Amine/Oxy for CCS Hardcoal)

Affordability of clean energy

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie Hennes

Investments not happening

2010-2020

$140 billionClean energy

investments $bn

More ambitious policies requiredSource: Bloomberg New Energy Finance, UNEP, SEFI

© ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Sustainable Energy Finance & Investment Summit, Croatia 2011, Dr. Ghazi Kablouti/Sophie HennesClean Power Day The Netherlands- Clean Power Strategy - November 3rd, 2011 - P 20