1. The Global Value of Coal:Clean Coal Technologies Open the Door Frank Clemente Ph.D. Professor of Social Science and Energy Policy Penn State University fac226@psu.edu

2. Key underlying premises Electricity is the lifeblood of modern society and the key to a higher quality of life for all. Coal is the leading fuel to affordably meet global electricity demand and alleviate energy deprivation The high quality U.S. coal endowment is a global resource for environmental improvement. Exporting low emissions coal to Asia will enable that region to significantly reduce emissions and also create jobs in the U.S. Clean coal technologies, including: (a) higher efficiency generation and (b) carbon capture and storage are the technological pathways to global sustainable energy, economic growth and climate change goals

3. ELECTRICITY IS GOODMore People, Living Better, Living Longer 3 Source: developed from The World Bank, 2010b

4. Global Electricity Poverty is Real 2,000 million 1,500 million America— 306 million Full access Only Partial access to electricity No electricity at all

5. SCALE SETS THE CONTEXT: If Current Electricity Demand Was a 6 Foot Tall Man 5 Global ElectricityConsumption-1970-2030

6. The Rise of the Internet in China

7. The coming wave of rising expectations Millions under age 15 7 7

8. Everything, Everywhere, All the Time:Increases needed by 2030 to meet demand Nuclear power 35% Oil production 22% Hydro 61% NG production 42% Coal production 54% Plus substantial increases in renewables and biomass 8 8

9. The Future of Electricity is Being Formed at the Global Level Billion Kilowatt Hours 12,810 1,020 USA Rest of World Increase in Billion Kilowatt Hours 2010 - 2035 9

10. Coal’s Ever Growing Role Population of Countries that depend on coal for at least 40% of electricity 4,113 Million 3,002 Million 2,361 Million 1990 2010 2030 IEA Current Policies Scenario 10

11. In the U.S., coal will be the leading source of incremental power generation through 2035 EIA,2011

12. “China is an example for the developing world” IEA, 2007 12 12

13. India’s Desperate Need for Power

14. Asian Electricity Demand is a Rising Tide

15. Replace Coal in Asia? • Build 1,100 nuclear power plants • Construct 2,500 Hoover Dams • Produce 80 TCF of gas • Burn 11 billion barrels of oil • Install over two million wind turbines stretching 500,000 miles—then build gas backup. = Coal Generation is projected to exceed 8,700 TWh in Asia in 2035 15

16. Unprecedented Urbanization Millions in Cities

17. STEEL AND CITIES IN CHINA: No steel at scale without coal Million tonnes 17 Source: developed from McKinsey & Company, 2008

18. The Scale of the Challenge by 2050 18 Source: developed from EIA, UN, IEA, 2010 and 2009 (trend data through 2050)

19. Clean Coal Technology Works: the United States 19 19 * Sulfur Dioxide and Nitrogen Oxides

20. The Path to Near- Zero Emissions 20 20

21. Supercritical Technology has Enormous Environmental Benefits 429 GW On Line andUnder Construction Technology Achieves One-Fifth the Average Emission Rate of Existing U.S. Coal Fleet and Lower CO2 Emission Rate U.S. 96 GW China 175 GW India 37 GW Japan 20 GW China and India House 50% of the World’s Advanced Coal Fleet Germany 12 GW ROW 45 GW S. Korea 17 GW Russia 16 GW Other EU 11 GW

22. Clean Coal Technology is Making Huge Inroads in Asia Data source:Professor Janos Beer, Massachusetts Institute of Technology, 2010

23. China’s Progress in Efficiency Means Significantly More Power and Reduced Emissions Over 114,000 MW of small units will be decommissioned. China is proceeding with construction of 112,000 MW of Ultra Supercritical

24. CCS is the Path to Climate Policy Goals “Gas doesn't get us there” Dave Hamilton, Director for Global Warming, Sierra Club Global Warming Potential Based on Life Cycle Analyses by U.S. National Energy Technology Laboratory (NETL) 24

25. The World’s Greatest Energy Resource---9 times the Btu of Ghawar Field in Saudi Arabia • One year of PRB coal equals 6.1 TCF of gas –more than the gas production of two Gulfs of Mexico Domestic Coal--The Epitome of Energy Security 25

26. Lest We Forget: Ohio and its Neighbors have Coal Reserves Surpassing Foreign Oil Reserves Coal Reserves* Oil Reserves** *Demonstrated Coal Reserve Base **Proven Reserves

27. In just 24 hours Produced 23 TWh of electricity– more than gas, wind, hydro and solar combined Provided over 40% of the power for 300 billion e-mails. 110 million “tweets” and the activation of 300,000 Androids What Coal Did Today Generated power equivalent to 1,340 nuclear power plants Fueled about 60% of China’s industrial sector Provided more than half the electricity for 3 billion people– 10 times the population of the U.S Enhanced energy security for dozens of nations across the globe Enabled the production of 2.4 million metric tons of steel

28. Electricity Makes the Difference: Korea South Korean preschool children average 3 inches taller and 7 pounds heavier than North Korean Children The Infant Mortality Rate in North Korea is 12 times higher than South Korea South Korea ranks 32nd in GDP/capita. North Korea ranks 156th 28