Performance and Benefits of Flue Gas Treatment Using Thiosorbic Lime

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1 Performance and Benefits of Flue Gas Treatment Using Thiosorbic Lime Presented by Carmeuse North America Carmeuse North America makes no warranty or representation, expressed or implied, and assumes no liability with respect to the use of, or damages resulting from the use of, any information, apparatus, method or process disclosed in this document.

2 LIME 2 North America BACKGROUND ON CARMEUSE

3 LIME 3 North America - Background Carmeuse North America Part of the Carmeuse Group Carmeuse $1 billion privately-held lime company founded in plants in 14 countries

4 LIME 4 North America - Background Lime Plant Locations in U.S. and Canada PLANTS Dolomitic Lime High Calcium Lime Hydrated Lime Limestone Carmeuse Terminal with Hydrator Terminals Dock A B 26 25A E 21 D B A 23B C 1...Blind River, Ontario 2...Dundas, Ontario 3...Beachville, Ontario 4...River Rouge, MI 5...Millersville, OH 6...Maple Grove, OH 7...Grand River, OH 8...Annville, PA 9...Manitowoc, WI 10...Gary, IN 11...Black River, KY 12...Maysville, KY 13...Longview, AL 14...Cedarville, MI 15...Port Inland, MI 16...Calcite, MI 17 Drummond, MI 18...Portage, IN 19...Erie, PA 20...Winchester, VA 21...Strasburg, VA 22...Middletown, VA 23...James River, VA 23A...Buchanan, VA 23B...Rocky Point, VA 24...Luttrell, TN 25...Filler Operation-Chatsworth, GA 25A...Cisco, GA 25B...Elijay, GA 26...Macon, GA

5 LIME 5 North America - Background Carmeuse Provides: Thiosorbic Lime for flue gas desulfurization (FGD) in coal-fired plants Access to Thiosorbic process technology Carmeuse works in cooperation with major FGD equipment suppliers to provide the best system for the customers requirements Technical support for FGD users FGD start-up, operator training, and operations support Over 25 years experience in FGD in coal-fired power plants

6 LIME 6 North America - Thiosorbic Process BENEFITS OF THE THIOSORBIC FGD PROCESS

7 LIME 7 North America - Thiosorbic Process Benefits of Thiosorbic FGD process Ultra-low SO 2 emissions with high-sulfur fuel 99% SO 2 removal with high-sulfur coal Lower FGD capital cost Lower FGD power consumption Valuable by-products: wallboard-quality gypsum and magnesium hydroxide [Mg(OH) 2 ] 40+ year record of reliability 17,700 MW base of experience

8 LIME 8 North America - Thiosorbic Process Thiosorbic FGD Process Description Wet FGD process Uses lime reagent with 3-6 wt.% MgO Mg increases SO 2 removal and allows low L/G 45 L/G (gpm/1000 acfm) for 99% removal with high-sulfur fuel Low chemical scaling potential Liquid in absorber slurry only 10% gypsumsaturated

9 LIME 9 North America - Thiosorbic Process Thiosorbic FGD Process Water Magnesium Enhanced Lime Slaker Lime Slurry Tank Absorber Module Flue Gas Cleaned Gas to Atmosphere Stack 15% solids Oxidizer (bubble tower) Compressed Air Hydroclone Inerts to Disposal Belt Filter Hot Water Wash Gypsum Byproduct

10 LIME 10 North America - Thiosorbic Process FGD Process Comparison: Thiosorbic vs. Limestone Forced Oxidation (LSFO) Lower Power Consumption 1.4% versus 2.0% for LSFO for high-sulfur coal Higher Reagent Utilization 99.9% vs. up to 97% for LSFO Better Gypsum Quality 98-99% pure, bright white vs. 95%, brown or tan for limestone

11 LIME 11 North America - Thiosorbic Process Comparison of Gypsum from Thiosorbic Lime with LSFO Gypsum

12 LIME 12 North America - Thiosorbic Process FGD Process Comparison: Thiosorbic vs. LSFO Lower Capital Cost 8-12% lower capital cost Much smaller absorbers Fewer recycle pumps, fewer spray headers, smaller recirculation tank Lower maintenance cost Generate more valuable SO 2 allowances

13 LIME 13 North America - Thiosorbic Process FGD Process Comparison: Absorber Size 125 ft 38.1 m LSFO These absorbers were supplied by the same FGD equipment supplier at two different sites. The difference in height is due solely to FGD process type. LSFO requires more absorber spray headers, greater L/G, more recirculation pumps, and a larger hold time in the recirculation tank, leading to a substantially taller, more costly absorber. Thiosorbic 55 ft 16.8 m

14 LIME 14 North America - Byproduct Mg(OH) 2 from the Thiosorbic Process BENEFITS OF BYPRODUCT MAGNESIUM HYDROXIDE FROM THE THIOSORBIC PROCESS

15 LIME 15 Water Magnesium Enhanced Lime Slaker Thiosorbic FGD Process North America with Byproduct Mg(OH) 2 Production Lime Slurry Tank Absorber Module Flue Gas Cleaned Gas to Atmosphere Stack 15% solids Oxidizer (bubble tower) Compressed Air Hydroclone Hydroclone Inerts to Disposal Belt Filter Hot Water Wash Gypsum Byproduct Treated FGD Liquid Effluent Byproduct Magnesium Hydroxide System Precipitation Tank Additional Gypsum to Oxidizer Magnesium Hydroxide for SO Control 3

16 LIME 16 North America - Byproduct Mg(OH) 2 from the Thiosorbic Process Benefits of Byproduct Magnesium Hydroxide Thiosorbic process allows option for on-site production of magnesium hydroxide Demonstrated for furnace injection and SO 3 control in 800 MW and 1300 MW boilers Reduces furnace-generated SO 3 emissions by 90% Substantially reduces visible plume opacity

17 LIME 17 North America - Byproduct Mg(OH) 2 from the Thiosorbic Process Mg(OH) 2 Injection for SO 3 Control Furnace Selective Catalytic Reduction Mg(OH) 2 Injection Location ESP Thiosorbic FGD

18 North America - Byproduct Mg(OH) 2 from the Thiosorbic Process 100% Furnace SO 3 Removal vs. Mg:SO 3 Ratio in 1300 MW Boiler 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Mg:SO 3 Ratio Full-scale demonstration of SO 3 control with Thiosorbic byproduct Mg(OH) 2 LIME 18

19 LIME 19 North America - Byproduct Mg(OH) 2 from the Thiosorbic Process Reduction in Visible Opacity with By-product Mg(OH) 2 Treatment Untreated Treated

20 LIME 20 North America - Byproduct Mg(OH) 2 from the Thiosorbic Process Benefits of Byproduct Magnesium Hydroxide Increases melting point of boiler slag Reduces strength of slag deposits; increases friability and fracture for ease of removal Increases boiler efficiency Cleaner heat transfer surfaces Allows lower air heater outlet temperature

21 LIME 21 North America - Byproduct Mg(OH) 2 from the Thiosorbic Process Benefits of Byproduct Magnesium Hydroxide Provides FGD wastewater treatment: As, Cd, Pb, Ni, Hg below detection limits Reduces size and operating costs of wastewater treatment system; no TSS removal and coagulation/lime precipitation steps required; no BOD (DBA) removal Eliminates disposal of (RCRA-unexcluded) wastewater treatment sludge; allows comangement via return to furnace and combination with flyash

22 LIME 22 North America - Byproduct Mg(OH) 2 from the Thiosorbic Process Potential Cost Savings from Furnace Injection of Magnesium Hydroxide Increase in plant efficiency due to cleaner boiler tubes and low acid dew point: 1% increase per 35 F lower air heater exit temperature Coal savings due to use of lower temperature ash fusion coal

23 LIME 23 North America - Byproduct Mg(OH) 2 from the Thiosorbic Process Factors Used to Determine Cost Benefits of Boiler Injection of Byproduct Mg(OH) 2 Cost factor Thiosorbic LSFO Coal cost reduction for lower ash fusion coal, $/ton Increase in boiler availability to reduced slag build-up, fewer slag falls, air heater washing, unplanned outages, hrs/yr Increased efficiency due to reduction in sulfuric acid dewpoint, cleaner boiler tubes, % 0.50 N/A 48 N/A 0.75 N/A

24 LIME 24 Limestone cost, $/ton North America - Byproduct Mg(OH) 2 from the Thiosorbic Process Lower Life Cycle Cost with Thiosorbic Process and Byproduct Mg(OH) 2 Compared with LSFO base case Increased availability & furnace efficiency Increased availability & furnace efficiency, reduced fuel cost Lower life cycle cost for Thiosorbic process in area above each line Increasing cost competitiveness of Thiosorbic process Based on 3% sulfur bituminous coal Lime cost, $/ton

25 LIME 25 North America - Hydrated Lime for SO 3 Control HYDRATED LIME INJECTION FOR SO 3 CONTROL

26 LIME 26 North America - Hydrated Lime for SO 3 Control Ca(OH) 2 Injection for SO 3 Control Hydrated lime [Ca(OH) 2 ] has been demonstrated at 1300 MW for control of SO 3 emissions after selective catalytic reduction (SCR) Hydrated lime powder can be injected into flue gas immediately after the air heater and before the particulate collector, or injected after the particulate collector and before the Thiosorbic FGD system

27 LIME 27 North America - Hydrated Lime for SO 3 Control Ca(OH) 2 Injection for SO 3 Control Furnace Selective Catalytic Reduction Ca(OH) 2 Injection Locations ESP Thiosorbic FGD

28 North America Performance and Benefits of Flue Gas Treatment Using Thiosorbic Lime Conclusions: The Thiosorbic process is a widely utilized FGD process with a 25 record of successful operation The Thiosorbic lime FGD process provides better SO 2 removal performance than the LSFO process The Thiosorbic process allows lower FGD capital cost, lower power consumption, and lower life cycle cost than the LSFO process Byproduct Mg(OH) 2 provides efficient control of furnace SO 3 emissions and additional operating benefits and cost savings Hydrated lime provides efficient, low-cost control of SO 3 formed during SCR LIME 28