Duke Energy & Carbon Sequestration

News release from Duke Energy:


Duke Energy and China Huaneng Group Expand Cooperation to Develop Carbon Capture and Sequestration Technologies
Feb. 13, 2012

LOS ANGELES -
Duke Energy and China Huaneng Group have signed a new, three-year agreement expanding their research cooperation in the areas of advanced coal and carbon capture and sequestration technologies.

The two parties initially signed a Memorandum of Understanding in 2009 to pursue high-level discussions and information sharing on a number of renewable and clean-energy fronts. In 2009, Huaneng Group developed a facility that economically captured 120,000 tons of the carbon dioxide per year emitted from the 1,320-megawatt coal-fired Shidongkou power station in China.

The expanded agreement signed today calls for an engineering study to determine the potential feasibility of applying Huaneng Group’s low-cost carbon capture process at unit 3 of Duke Energy’s Gibson Station in Indiana. There are no plans to make any modifications to the power plant at this stage of the study. There are five units at Gibson with a combined capacity of 3,145 megawatts.

Funding for the project will be provided by the U.S.-China Clean Energy Research Center (CERC), which was established by the two countries in 2009 for such collaborative endeavors.

Duke and Huaneng will create a Joint Working Group that will begin meeting in the near future to coordinate the project.

“We’re very excited to explore the possibilities of Huaneng Group’s technology here in the United States,” said David Mohler, chief technology officer of Duke Energy, an electric utility company based in Charlotte, N.C. “Our assessment will help put this technology in context with other options,” he added.

“The carbon capture technology is well-proven, and cost-effective,” said Jiang Minhua, assistant president of China Huaneng Group, China’s largest power producer. “We are keen to work with Duke Energy in exploring the feasibility of large-scale carbon capture, utilization and sequestration.”

About Duke Energy Corporation
Duke Energy is the third largest electric power holding company in the United States, based on kilowatt-hour sales. Its regulated utility operations serve approximately 4 million customers located in five states – North Carolina, South Carolina, Indiana, Ohio and Kentucky -- representing a population of approximately 11 million people. Duke Energy’s commercial power and international business segments operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

About China Huaneng Group
China Huaneng Group is an integrated energy company primarily focused on power generation. The Company is also engaged in sectors of coal, finance, technology R&D, and transportation etc. that support the core business of power. By the end of 2011, China Huaneng Group had total installed capacity of over 125GW, ranking No.1 in China, and No.2 in the world in terms of installed capacity. The company was the first Chinese power producer to join the ranks of Fortune 500 Companies, and ranked 275th in 2011.

The company now has overseas assets in seven countries, Australia, Singapore, Myanmar, Mexico, the Netherlands, the Philippines, and the United Kingdom. More information about the company is available on the Internet at: www.chng.com.cn.