For more information,visit projectpioneer.ca or

email us at info@projectpioneer.ca

Bringing together public and private partnersto address the world’s CO2 emissions challenge

Academia. ISEEE; Carbon Management CanadaIndustry Associations. ICO2NOther Alberta CCS Projects. Shell Quest Project; Swan Hills Synfuels; Enhance Alberta Carbon Trunk Line

2007As Committee Chair, Steve Snyder, TransAlta’s president & CEO leads Canada’s National Task Force on CCS

2008TransAlta & Alstom Canada partner to develop CCS project

Preliminary design and project proposal

2009Pioneer awarded $779 million funding commitment from Alberta and Canadian Governments

Capital Power joins Pioneer

2010First phase of design work completed

Public & Regulatory consultation

Sequestration site selected

Initial pipeline routing confirmed

Initiation of knowledge transfer activities

Enbridge joins Pioneer

2011Detailed engineering complete

Permitting initiated

Public & Regulatory consultation

2012On-site construction begins

Public & Regulatory consultation

2013-2014Construction slated for completion

2015Pioneer is fully operational

One megatonne of CO

2 captured = 20

per cent of Alberta’s target

Partnership Model

TransAlta, project leader. transalta.comTransAlta brings extensive experience in power generation, construction and innovation to Project Pioneer. As the project leader it provides technical, commercial and project management to Project Pioneer.

Capital Power, generation partner. capitalpower.comCapital Power shares a long history with TransAlta, bringing best-in-class power technology and is the joint venture partner with TransAlta for the Keephills 3 coal plant – the location for Project Pioneer.

Enbridge Inc., transportation and storage leader. enbridge.comEnbridge, a North American leader in energy delivery, brings its pipeline expertise and sequestration knowledge.”

Alstom Canada, capture technology leader. alstom.comAlstom, a global leader in energy technology brings its expertise in the chilled ammonia carbon capture process.

Global CCS Institute, knowledge sharing partner, globalccinstitute.comThe Institute works with organizations and governments to accelerate the broad deployment of commercial CCS and ensure that the technology plays a role in responding to the world’s need for a low carbon energy future.

The Government of Canada, public funding. nrcan.gc.caThe Government of Canada will contribute $343 million through the Clean Energy Fund and the federal ecoENERGY Technology Initiative.

The Government of Alberta, public funding. energy.gov.ab.caThe Government of Alberta will contribute $431 million through its $2 billion CCS fund with an additional $5 million from the provincial government to support front-end engineering and design work (FEED).

Project Pioneer brings together public and private partners who have been leaders on environmental issues for years. Current partners include:

November 2010

Partners

GovernmentAlberta & Federal

Financial & Regulatory Support

Project Lead

Capture Technology

Lead

GenerationPartner

Transportation and Storage Leader

Knowledge Sharing Partner

1.7 km

Safely making coal a carbon-neutral fuel

The CO2 Emissions ChallengeTransAlta and its partners believe that maintaining the long-term viability of fossil-fired generation is a global necessity. Through economic CCS we can keep coal and gas as fuel options while addressing climate change concerns.

Much of the world, including Canada, is fortunate to have huge, reliable reserves of low cost coal – more coal than oil in fact. Within the global electricity generation mix, coal is vital and often the only practical fuel for some regions. However, the largest source of global greenhouse gas (GHG) emissions today and in the future will come from the electricity sector, largely from existing generating plants. A solution to the CO

2 emissions

challenge exists through CCS technology.

CCS is a safe, tested and effective technology to prevent greenhouse gases from entering the atmosphere. A number of projects have already demonstrated that with proper site

Project Pioneer is among the world’s largest fully-integrated carbon capture and storage (CCS) initiatives within the power sector. It will be a near-commercial scale demonstration of all elements of the CCS chain through a unique combination of partners, technology and integration.

How will Project Pioneer work

CaptureAlstom Canada, Project Pioneer’s technology partner will complete a large-scale test of its chilled ammonia process to capture one megatonne of CO

2 annually from K3. The capture process includes

three steps:

•Flue Gas Cooling. The flue gas from the boiler will be cooled to improve absorption of CO

2.

•CO2 Absorption. Using an ammonium carbonate solution the CO

2 will be absorbed to form an ammonium bicarbonate

solution.

•High-Pressure Regeneration. The ammonium bicarbonate solution will be pressurized and further treated to separate CO

2 for transport. The remaining ammonium bicarbonate

removed from the CO2 will be returned for use again in the

CO2 absorption process.

TransportTwo pipelines – one to safely store (sequester)and one to oilfield injection.

•Parallel transport systems. Project Pioneer will test two storage methods requiring two CO

2 transport lines with no additional

compression required.

•Final routing to be determined. The pipelines will range from 20 to 70 kilometres in length; completion of the FEED study will confirm final routing.

Project Pioneer will be among the world’s first projects to test the full life cycle of CCS. Operating by 2015, Project Pioneer will be integrated with Keephills 3 (K3) – a 450 MW super-critical coal-fired plant jointly owned by TransAlta and Capital Power.

Located 70 kilometres west of Edmonton, Alberta, K3 is ideally situated overtop potential underground permanent geological formation storage sites and near large, oil fields suitable for enhanced oil recovery (EOR).

For 2010, the key focus for Project Pioneer is the completion of the front-end engineering and design (FEED) work.

Why CCS and retrofit technologies?The Project Pioneer CCS process will separate CO

2 from coal-

fired generation flue gas and transport the CO2 to injection

sites in underground permanent geological formations. With a concentrated focus on reducing costs in all aspects of this project, the Project Pioneer partners consider the competitive future of CCS as an alternative form of GHG mitigation.

Project Pioneer will utilize post-combustion retrofit technology that we expect will be cost-effective and have the broadest application and ability to affect global emissions in the next 20 years.

StorageTwo processes will be tested – geological sequestration and EOR.

•Permanent Sequestration. The Wabamun Area Sequestration study has confirmed Project Pioneer is well-situated to large volume geological formations, providing significant and safe CO

2 storage

capacity.

•Secondary Markets. Alberta is a world leader in oil extraction and Project Pioneer is located within 40 kilometres of the large Pembina oilfield – a field ideal for using CO

2 for EOR.

•Approach. Project Pioneer will be financed, designed, built and operated by a consortium of governments and industry. The intent is to bring together top companies in each of the respective CCS disciplines to deliver the best project possible. This approach will allow the sharing of cost and risks, as well as knowledge recognizing the project is potentially a prototype for full-scale CCS deployment.

• Integration. Project Pioneer will create the opportunity to fully explore all aspects of the CCS business – from capture through to sequestration and enhanced oil recovery (EOR). One of the principal objectives is to drive down overall costs through an intense focus on integration across all CCS elements, as part of the design, construction and operation of the facility.

•Knowledge Transfer. As recipients of significant public funding and recognizing the early stage of development of this technology, Project Pioneer is committed to extensive knowledge transfer from the project. We intend to work with other practitioners, institutions and academia to both extend our CCS experience outwards, and to acquire new information from the experience of others.

•Alberta Advantage. There are unique opportunities in Alberta to explore integrated CO

2 transportation

infrastructure by combining pipeline resources and delivery markets from the multiple projects and further the regulatory framework to support CCS. Project Pioneer will explore these opportunities.

Alberta

Edmonton

Calgary

What makes Project Pioneer a unique CCS project

selection, design and management, CO2 can be successfully

stored for many years.