CCSThe development worldwide

Evonik’s view

Dr. Alfred TackeChairman of the Board of Management

Evonik Steag GmbH, Germany

February 2008 | Carbon Capture and Storage Page 2

Construction Walsum 10

Commissioning: 2010

gross capacity: 750 MW

project volume: 800 Mio €

Fuel: imported hard coal

February 2008 | Carbon Capture and Storage Page 3

2020 a new generation of power plants - Efficiency above 50% will be available

Source: VGB PowerTech 2007

R&D Programme

• EU: Thermie, AD 700, FP 6, FP 7

• DE: KOMET 650, COORETEC

VGB Emax-Initiative

VGB Emax-Initiative

• Enhancement of efficiency

• Ecological compatible

• Cost effective and reliable

R&D Programmetime

ReferencePower Plant

600/620 °C

Component

Test Facility

COMTES700

700 °C

Demo-Plant

700 °C

February 2008 | Carbon Capture and Storage Page 4

Carbon sequestration is not a successful strategy

Due to:

loss of efficiency

• 8-14% points

storage problems

• leakages

• long term observation necessary

public protest

• no acceptance for pipelines and on shore storage reservoirs

February 2008 | Carbon Capture and Storage Page 5

Economical comparison of CCT and CCS

Source: Diverse VGB PowerTech, 2002-2005

40 45 5033 37

80100 105

200180

020406080

100

120140160180200

Net efficiency Costs of electricity generation

CTCoal Technology

CCTClean Coal Technology

CCSCarbon Capture and Sequestration

CT Inter-national

CCTtoday

CCTtomorrow

CCS“end-of-pipe”

CCSIGCC/

Oxyfuel

Economical comparison of CCT and CCS for a hard coal fired power station in %

February 2008 | Carbon Capture and Storage Page 6

Look into the world (1)Coal based CO2-emissions 1990-2020

10³ x million tonnes CO2

China, Russland, Indien, Rest Non OECD

+ 5,520m t CO2

1

2

3

4

5

6

7

8

9

10

1990 2003 2010 2015 2020

Source: MIT, The Future Of Coal

The CO2 emissions from electricity production by coal are a global topic. A reduction could only be reached globally.

+ 820m t CO2

+ 130%

+ 46%

February 2008 | Carbon Capture and Storage Page 7

3

3.5

4

4.5

5

5.5

6

- 20%

- 8%

Look into the world (2)Reduction duties of the EU

EU -27

EU -15

Kyoto-goal

EU member states at the 2007 European Spring Council

(March 2007)

- 1,124m t CO2e*

-7.3%

-0.9%

- 341m t CO2e*

* equivalent / reduction related to 1990

Source: EEA, Annual European Community greenhouse gas inventory 1990–2005 and inventory report 2007

While the EU is reducing 1 billion tonnes of CO2e,world wide another 6 billion tonnes will be produced.

10³ x million tonnes CO2e

1990 2004 2010 2015 2020

February 2008 | Carbon Capture and Storage Page 8

Examples for Efficiency of Power Plants in Europe

Source: VGB COMTES 700 2007

Total efficiency in %

18

20

22

2426

28

30

32

34

3638

40

42

44

1950 1960 1970 1980 1990 2000 2010

February 2008 | Carbon Capture and Storage Page 9

Conclusion

For a secure and economic energy supply are necessary:

• long term calculable energy prices

• free allocation of certificates for 14 years for new entries

• fuel specific CO2 benchmark

• increase of the cap for JI/CDM projects in case of high percentage of auctioning

• energy mix consisting of

• gas

• coal

• nuclear

• renewables