BlueSource a leading climate change portfolio

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BlueSourcea leading climate change portfolio
Carbon Management Workshop May 26, 2005 Houston
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BlueSourcewho we are, lessons learned,
innovations and what is on the horizon
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BlueSourcewho we are

• Ghg Business (Carbon Reduction Portfolio)
• Largest ghg VER supplier, aggregator, and
  portfolio in North America (210-300 million
  tonnes thru 2014)
• Completed largest number of US ghg PSA
  transactions to date (14 million tonnes)
• Transacted Non-Kyoto to Kyoto developed Kyoto
  Bridge
• Development of first ghg VER protocols for
  geologic sequestration, transportation, ECM and
  logistics
• Hedge products (Early Action Risk Mitigation
  very large, long-term, forward ghg offset
  options)
• CO2 Business (Physical CO2 Emissions Management)
• Concepted and developed vent-stack CO2 pipelines
  (Val Verde CO2 PL, North Cross CO2 PL, Anadarkos
  CO2 PL)
• Next CO2 pipeline to be constructed La Veta CO2
  PL 4th Qtr 2005

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Permian Basin Vent Stack-Source CO2 Pipelines
Colorado
McElmo
Dome
Bravo Dome
La Veta
Oklahoma
Denver City
CO2 Sources
Cortez
Pipeline
EOR Fields
Pipelines
Vent-Stack Sources
New Mexico
Estes
Pipeline
Texas
North Cross Pipeline
Val Verde Pipeline
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Wyoming Vent Stack-Source CO2 Pipelines
Montana
N.Dak
Wyoming
CO2 Source
EOR Fields
Shute Creek
Prospective Floods
Pipeline
Pipeline Expansion
Wyoming CO2 PL
Colorado
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Our Supply by State (45 state sources)

• Transportation Projects are denoted in yellow

• IA, IL End use energy efficiency, methane
  flaring and transportation projects are located
  in both Iowa and Illinois

• International Papers emission reduction projects
  including cogeneration and fuel switching are
  denoted in pink

• End Use Energy Efficiency Projects are denoted in
  blue

• Methane Flaring Projects are located in NE, IL,
  IA, and TX

• Geologic Sequestration Projects are located in
  TX, MS, LA and WY

• TX Two types of geologic carbon sequestration
  projects, end use energy efficiency projects,
  methane flaring projects, transportation and IP
  projects are located in Texas

• AR End use energy efficiency, transportation and
  IP projects

• LA End use energy efficiency, transportation and
  geologic sequestration projects

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Vent Stack-Sourced CO2Gathering, Transportation
Delivery to EOR

• Innovations and Leading Practices
• Aggregating multiple sources (Texas)
• Aggregating CO2 demand (Wyoming)
• Dual CO2 source, dual compression (Colorado)
• Lessons Learned
• Mating vent CO2 and EOR (disjointed models)
• Vent CO2 interruptability (multiple sources,
  underground CO2 banking)
• Issues on Horizon
• Further integration of underground/vent CO2
• Human resource shortage EOR field and
  engineering

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First Glance Screening of Vent Stack-Source CO2
Project Viability
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CO2 Emission Reduction Offsets

• Innovations and Leading Practices
• Offset aggregation pool (soft supply/firm demand)
• Kyoto-NonKyoto Bridge (US market convergence)
• Portfolio emergence and related products
• Lessons Learned
• Permanence CO2 injection in EOR
• Vent CO2 interruptability
• Issues on Horizon
• Surety products (delivery performance, risk
  transfer)
• Emitters managing vs assessing risk
• Convergence of US and Non-US CO2 emission markets
• Beyond 2012