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Peabody Energy — Washington University Symposium (October 2010)
33 slides from Peabody Energy's conference presentation, Oct 2, 2010
Slide 1: The Future of Fossil Fuels
The Future of Fossil Fuels Oct. 2, 2010 Gregory H. Boyce Chairman and Chief Executive Officer Peabody Energy 1
Slide 2: The Future of Fossil Fuels: Powering the 21st Century
The Future of Fossil Fuels: Powering the 21st Century ●Global Energy Needs are Enormous and Growing ●Fossil Fuels: Here to Stay and Rapidly Expanding ●Technology Key to Driving Environmental Progress 2
Slide 3: Peabody is the World's Largest Private-Sector Coal Company
Peabody is the World’s Largest Private-Sector Coal Company Customers on Six Continents in 23 Countries ● 9 billion tons of reserves ● #1 in U.S. PRB, Midwest, Colorado and Southwest ● Significant Australia production and reserve base ● A leading global coal trading platform ● Globally honored for sa
Slide 4: Global Energy Needs are Enormous and Growing
Global Energy Needs are Enormous and Growing 4
Slide 5: Eliminating Energy Poverty is The First Priority
Eliminating Energy Poverty is The First Priority Copenhagen Accord: Social Development Key “We should cooperate in achieving the peaking of global and national emissions as soon as possible… bearing in mind that social and economic development and poverty eradication are the first and overriding pri
Slide 6: Access to Low-Cost Electricity Vital to Achieve Millennium Goals
Access to Low-Cost Electricity Vital to Achieve Millennium Goals 3.6 Billion People Have No or Only Partial Access to Electricity 683 85 116 1,495 805 466 Millions of People Who Lack Adequate Electricity Access Source: International Energy Agency 2009 World Energy Outlook and The World Bank, 2010. 6
Slide 7: Economic Development Strongly Linked to Higher Electricity Use
Economic Development Strongly Linked to Higher Electricity Use Majority of Nations Use Less Electricity Than Developed Economies 14000 U.S. 12000 Electricity Use Per Capita (kWh) 10000 Japan 8000 Germany 6000 4000 China Brazil 2000 India 0 Source: CIA World Fact Book 2009. 7
Slide 8: Chongqing Reveals Power of Fossils to Propel Economies
Chongqing Reveals Power of Fossils to Propel Economies 34 Chinese a Minute Begin Modern, Energy Intensive Lifestyles ● Since 1990 coal-fueled power “Coal has underpinned soars 475% as GDP rises 375% China’s massive and unprecedented growth ● Chongqing: World’s fastest-growing city in output, fueling
Slide 9: Unprecedented Urbanization Drives China Energy Demand
Unprecedented Urbanization Drives China Energy Demand By 2030, 221 Chinese Cities Will Contain 1 Million People or More China vs. U.S. Primary Energy Consumption (BTOE) 2001 2009 1Q 2010 Source: Power, 2010; International Energy Agency (IEA); “Preparing for China’s Urban Billion”, 2009, 9 McKinsey G
Slide 10: Fossil Fuels: Here To Stay
Fossil Fuels: Here To Stay 10
Slide 11: Fossil Fuels Dominate Projected Global Demand
Fossil Fuels Dominate Projected Global Demand By 2030 Fossil Fuels Comprise 80% of Demand, Led by Asia World Energy Use by Fuel Type Global Energy Demand Per Year (Quadrillion Btu) Fossil Fuels: 84% Fossil Fuels: 80% Source: Energy Information Administration International Energy Outlook 2010. 11
Slide 12: Oil Fuels Modern Transportation
Oil Fuels Modern Transportation A Fundamental Fuel with the Prospect of Peak Oil Pricing World Energy Use by Fuel Type Global Energy Demand Per Year (Quadrillion Btu) ● Fueling modern infrastructure and industry ● Growing concerns about peak oil pricing – $70-$80/barrel ● Enduring demand – 1,900 new
Slide 13: Natural Gas: Rapidly Expanding
Natural Gas: Rapidly Expanding World Energy Use by Fuel Type ● Powering 22% of Global Energy Demand Per Year (Quadrillion Btu) global electricity and expanding rapidly – 90% of new U.S. power plants since 2000 – 50,000 MW to be added in 2012 ● Reflecting volatile and expensive history – 300%+ the co
Slide 14: Natural Gas and Oil: Price Volatility and Regional Risk
Natural Gas and Oil: Price Volatility and Regional Risk Natural Gas Cost 3x Coal, Oil Cost 5x in 2009 Alone $25.00 In 2009, U.S. natural gas prices swing 50%; Oil nearly doubles $20.00 Oil $USD / mmBtu $15.00 Natural Gas $10.00 $5.00 Coal $0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Slide 15: Coal's Global Advantage: Cost and Scale Rule
Coal’s Global Advantage: Cost and Scale Rule Global Coal Use Grows 56%, Greatest Share of Fossil Mix Since 1969 World Energy Use by Fuel Type ● Coal has been the Global Energy Demand Per Year (Quadrillion Btu) fastest growing source in the past decade, outpacing other fuels ● 40%+ of global power ●
Slide 16: Zero Out Coal? No Energy Alternative Can Come Close
Zero Out Coal? No Energy Alternative Can Come Close To Replace Coal’s Contribution, The World Would Need… SOLAR* 1,800 x Current Solar Generation WIND* 2.5 Million Wind Turbines NUCLEAR 1,150 Nuclear Plants NATURAL GAS 70 tcf Annually = 3X Russia’s Production HYDRO 2,250 Dams *Requires backup baselo
Slide 17: Major New Global Build Out of Coal Generation Under Way
Major New Global Build Out of Coal Generation Under Way Generation Demand Driven by Asia and Growing Share of Electricity New Coal-Fueled Generation (GW) 800 ● Global coal-fueled generation expected to 600 grow 90% by 2035 ● 340 MTPA coal growth just in new plants 400 ROW starting up in 2010 India ●
Slide 18: Global Demand for Energy is Massive and Growing
Global Demand for Energy is Massive and Growing The World Today: 30,000 OE Gallons a Second 18
Slide 19: Renewables Replace Fossils? Not Possible
Renewables Replace Fossils? Not Possible 19
Slide 20: Nuclear Power Faces Constraints
Nuclear Power Faces Constraints 20
Slide 21: Natural Gas Provides Essential Power
Natural Gas Provides Essential Power 21
Slide 22: Coal Keeps Lights Bright Worldwide
Coal Keeps Lights Bright Worldwide 22
Slide 23: Tomorrow: Much "Brighter" Than Today
Tomorrow: Much “Brighter” Than Today The World in 20 Years 23
Slide 24: Technology is Key to Environmental Progress
Technology is Key to Environmental Progress China’s GreenGen Power Project 24
Slide 25: Green Coal is the Path to Achieve Our Environmental Goals
Green Coal is the Path to Achieve Our Environmental Goals Supercritical Plants Carbon Capture and Storage Demonstrations Commercial IGCC with Carbon Capture & Storage Retrofit Supercritical Coal Plants with CCS Path to Near-Zero Emissions 25
Slide 26: China Leading in Green Coal with Major Supercritical Plant Build Out
China Leading in Green Coal with Major Supercritical Plant Build Out 429 GW On Line and Under Construction China represents U.S. 97 GW 36% of Japan 30 GW world’s India advanced 25 GW coal plants China Germany 155 GW 22 GW S. Korea 22 GW ROW Russia 35 GW 16 GW Other EU Supercritical and ultrasupercri
Slide 27: Global Supercritical Program Would Drive Major Reindustrialization
Global Supercritical Program Would Drive Major Reindustrialization ● The world has ~1,000 GW of traditional coal-fueled plants ● Replacing these with supercritical plants would create major economic stimulus, energy security and environmental benefit in 4 years: – $4.3 trillion in economic benefit –
Slide 28: Carbon Capture and Storage Projects Under Way Around the World
Carbon Capture and Storage Projects Under Way Around the World Weyburn Sleipner Great Plains GreenGen Western Kentucky Mountaineer COAL21 Callide Peabody Projects & Partnerships Carbon Capture & Storage (CCS) Projects CCS Demonstration Projects CCS Initiatives Planned or In Development Source: World
Slide 29: National Research Council: Coal with CCS Provides Best Baseload Option
National Research Council: Coal with CCS Provides Best Baseload Option Coal with CCS Outperforms Alternative Baseload Options 3-to-1 National Research Council: America’s Energy Future “The overall energy enterprise, like a massive ship, will be slow to change course… The urgency of getting started o
Slide 30: Peabody is a Global Leader In Clean Coal Solutions
Peabody is a Global Leader In Clean Coal Solutions ● Australia COAL21 Fund ● Global Carbon Capture and Storage Institute ● Consortium for Clean Coal Utilization ● U.S. Department of Energy National Carbon Capture Center ● Coal-to-gas: ConocoPhillips and GreatPoint Energy Consortium for Clean Coal Ut
Slide 31: The Peabody Plan for Energy, Economic and Environmental Solutions
The Peabody Plan for Energy, Economic and Environmental Solutions ● Eliminate Energy Poverty and Propel Global Economies by Ensuring that Half of New Generation is Coal-Fueled Coal-Fueled ● Replace 1,000 GW of Traditional Coal Plants with Advanced Coal (Supercritical and Ultrasupercritical Ultrasupe
Slide 32: In Summary
In Summary ●Our Challenge is to Address Enormous Energy Needs ●Fossil Fuels will Continue to Shoulder the Load ●And Technology Investments Will Drive Energy, Economic and Environmental Solutions 32
Slide 33: The Future of Fossil Fuels
The Future of Fossil Fuels Oct. 2, 2010 Gregory H. Boyce Chairman and Chief Executive Officer Peabody Energy 33
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