Carbon Capture Utilization & Sequestration

IEP Fall 2021 Conference

Fallen Leaf Lake, CA

September 21, 2021

Carbon Capture Utilization & Sequestration

Calpine Corporation

Calpine at a Glance

1Calpine Corporation

National generation portfolio of approximately 26,000 MW with diverse, complementary services platform

January 2021CCA DATA MANAGEMENT

& CUSTOMER SERVICE

Data management and call

center services

POWER GENERATION

Natural gas, geothermal &

alternative technologies;

best-in-class maintenance

program

RISK MANAGEMENT

& ENERGY SERVICES

24 hour trade desk and

expertise in load

management

Natural gas generation

Geothermal generation

INFRASTRUCTURE

DEVELOPMENT

Energy storage pipeline;

since 2000, constructed more

MW in CA than any other entity

Serve customers in 23 states, Canada and Mexico

Largest geothermal power producer in the world

More than 2,300 employees

-

100

200

300

400

500

600

2000 2010 2020 2030 2040 2050

Current CA Economy-Wide GHG Goals Biden Admin Economy-wide Goals (Calpine extrapolation)

Current CA Electric Sector Goals Biden Admin Electric Sector Goals (Calpine extrapolation)

Carbon Capture, Use And Storage (CCUS) Is A Critical Tool To Meet Economy-

wide DecarbonizationObjectives

Sour ces: Gr aph adapted fr om CARB GHG emissions inventor y; Biden-Har r is Administration “Tackling the Climate Cr isis at Home and Abr oad” Ex ecutive Or der , Januar y 27, 2021; Senate Committee on Ener gy and Natur al Resour ces Hear ing to Consider Nomination of the Honor able Jennifer Gr anholm to be the Secr etar y of Ener gy, Januar y 27, 2021

Targeted annual CO2e emissions, 2020–2050

California Emissions and Reduction Targets

~30% decline

since 2010

~5% decline

since 2010

Historical Economy-

wide Emissions

Historical Electric

Sector Emissions

Calpine Corporation 2

StripperAmine

absorber

Flue gas

Refinery

emissions

~8-13% CO₂

CO₂ Solvent

CO₂ Depleted

flue gas

Compressor

Gas plant

Injection &

monitoring wells5% CO₂

Pure CO2, 95%+

Suitable Natural

Storage Sink

Carbon Capture

2

3

41 Capture

2 Purification & compression

3 Transport through high pressure pipeline

4 Injection into a natural reservoir &

continuous monitoring

Calpine Corporation 3

Carbon capture from industrial and power facilities uses multiple technologies that are proven and have been utilized for decades at commercial scale around the world

1

Sacramento San Joaquin

High storage capacity available with limited drilling,

given stacked formations with layered sand reservoirs

Large volume reservoirs with right temperature &

pressure for CO2 storage1

CO2 leakage prevented shale caprock

Low risk from earthquakes, given distance from fault lines

Proven capacity and sealing of reservoirs from depleted oil and gas fields

California is well-suited geologically for permanent CO2 storage

Calpine Corporation

California has capacity to store >60 million metric tons per year for more than 1,000 years

California is geologically advantaged for CO2 storage – example basins

Image sour ce: BCG. 1. CO2 stor ed under gr ound as a super cr itical fluid; r equir es temperature above 31.1°C (88ºF) and pr essur e above 72.9 atm (~1,057 psi)Sour ce: US Geological Sur vey; US DOE NETL; Califor nia Geological Sur vey Over view of Geological Car bon Sequestr ation Potential in Califor nia; Global CCS Institute; Ener gy Futur e Initiatives and Stanfor d Univer sity, 2020: “An Action Plan for Car bon Captur e and Stor age in Califor nia: Oppor tunities, Challenges, and Solutions ”

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

With CO2 storage potentialWithout CO2 storage potentialNatural Gas FieldOil FieldCounty Boundary

Sacr amento

For mation

San Joaquin

For mation

Status of Sedimentary Basins in CA

4

A build-out of California hubs could capture 60 million Mt CO2/year

Calpine Corporation 5

1

2

3

4

Source: Energy Future Initiatives and Stanford University, 2020: “An Action Plan for Carbon Capture and Storage in California: Opportunities, Challenges, and Solutions”

Note: NGCC – Natural Gas Combined Cycle plant; CHP – Combined Heat &

Power plant

CCUS at electric power plants also develops infrastructure for

broader benefits & applications

Calpine Corporation 6

INDUSTRY

POWER

COLLECTION

HUB

SHARED SEQUESTRATION SITE

Enables future deployment of

direct air capture

• Future direct air capture technologies will be an important tool for removing carbon directly from the atmosphere, and shared sequestration & utilization facilities will be key to enabling that technology

Enables future hydrogen economy

• CCUS can support a rapid scaling of blue hydrogen production to meet future demand

• Blue hydrogen creates hydrogen from CH4 (natural gas), and the byproduct CO2 can easily be captured for utilization/ sequestration

Fosters industrial CO2

abatement

• The industrial sector accounts for 25% of California emissions

• According to the IPCC & IEA, CCUS is the only available technology capable of decarbonizing major industry

Hubs allow for economies of scale and can de-risk projects for other industries & technologies

Hubs can enable new technology deployment and deep decarbonization of industrial zones

H2

REFINERY

BLUE HYDROGEN

DIRECT AIR CAPTURE

SHARED TRANSPORT/ PIPELINE

Hard-to-reach GHG emissions

Enables new technology

BIO-ENERGY WITH CCS

CCS Cost Estimate Review - $ / tonne CO2

Calpine Corporation 7

$(100)

$(80)

$(60)

$(40)

$(20)

$-

$20

$40

$60

OpEx CapEx Fuel Transport Storage 45Q AB32 Gap

Range of Publicly Available CCS Costs(1)

(1) Cost estimates sourced from EPA IPM v6, NETL 2013 and 2020 Baselines, and Feron 2019 IJGGC reports

Calpine has two CCUS pilot projects in California

Calpine Corporation 8

• With DOE funding, ION Clean Energy has developed a

proprietary solvent and process that captures >90% of CO2

from power plant emissions at <$50/ton (and declining)

• Calpine and ION, with DOE funding, are piloting an

installation at Los Medanos that will be the first

installation of a carbon capture facility at a natural gas

combined cycle

• $17M pilot to commence operations in late 2021/early 2022

• Potential demonstration project

• Innovative technology to mineralize captured CO2 to

create light-weight building materials and other products

• Pilot project for ~5 tons/day to commence operations in

late 2021

• The Blue Planet pilot project can be scaled up after the

pilot phase to capture and convert more CO2 with the

intent of eventually reaching commercial scale

• Successfully tested lightweight concrete at a parking

facility at SFO

Carbon Capture Pilot

Carbon Utilization Pilot

ION pilot

location

Blue Planet

location

Los Medanos Energy Center to host two pilot CCUS projects

Ion Clean Energy: https://ioncleanenergy.com/

Blue Planet: https://www.blueplanet- ltd.com/