Cannon Boiler Works. Boiler Heat Recovery History and Recent Advances. Serving the steam and process industries for more than 35 years.

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1 Cannon Boiler Works Boiler Heat Recovery History and Recent Advances Serving the steam and process industries for more than 35 years. 54

2 Increased Energy Demand due to increasing standards of living 55

3 Increased Energy Demand 56

4 Why is heat recovery becoming a necessity? Increased restrictions on emissions such as California air quality initiatives being approved Top down corporate sustainability initiatives are looking for innovative equipment High efficiency equipment allows all customers to do the same amount of work with their steam system, at a lower energy cost and will less emissions of green house gasses. 57

5 Cannon Traditional Welded Economizers Heat recovery for dirty fuel burning boilers systems, (oil, wood, coal) Heavy duty design for long service life in difficult in environments Reduces fuel consumption 2-6% 58

6 Welded Economizers Pros Best used for heavy or dirty fuels High corrosion allowance built-in Cons Costly to build, weight = $ Heavy to install, time = $ Difficult to repair, custom parts required Long downtime expected during repairs No cold feedwater applications 59

7 Feedwater Heaters History Designed by Cannon in the 1980 s to resolve problems with traditional economizers Design Attributes Lightweight design Easy to Install, Operate & Repair Low Pressure Drop Design Control of Corrosion Indoor or Outdoor Installation Vertical or Horizontal Installation All parts available for individual sale 60

8 MEET OUR MODELS Feedwater Heaters Model Model Model Model FB FS FJ FG Baby Standard Jumbo Giant Standardized Modular Construction Many more models and variations available 61

9 Cannon Feedwater Heaters Reduces fuel consumption 3-10% Feature all bolted construction for ease of install and maintenance Unit is designed for use in both Non-Condensing and Fully-Condensing applications 62

10 Scenario #1 DA Water 63

11 System Layouts Make-up water Economizer DA Tank Boiler To process 64

12 Materials Selection for DA water why it s so important? Carbon steel tubes and fins are used, as an industry standard, for deaerated. Stainless steel material upgrades are available Carbon steel is preferred because of the superior heat transfer coefficients and low cost. If all equipment is working properly we expect a minimum of corrosion potential. 65

13 Real Numbers for DA Water economizers Water Inlet Water Outlet Gas Inlet Gas Outlet 125 hp 600hp 1200hp Saving/hr $1.93 $9.45 $18.17 Saving/year* Equipment payback $9, $45, $87, years years years 0.52 *Annual saving per year calculated using 8,400 hrs/year at 50% firing rate with $1/therm gas prices. 66

14 Scenario #2 Feedwater Tanks 67

15 System Layouts Make-up water Economizer Feedwater Tank Boiler To process *Use this system layout with Modulating feed pumps 68

16 System Layouts Make-up water Economizer Feedwater Tank Boiler To process *Use this system layout with constant circulating pumps 69

17 Materials Selection Why is it so important? Stainless steel tubes and carbon steel fins are used in our baseline offer. Stainless steel material upgrades are available or suggested by Cannon Carbon steel fins are preferred because of the superior heat transfer coefficients i and low cost. If all equipment is working properly we expect a minimum of corrosion potential. 70

18 Real Numbers for Hot well tank economizers 125 hp 600hp 1200hp Water Inlet Water Outlet Gas Inlet Gas Outlet Saving/hr Saving/year* Equipment payback $2.74 $13.48 $25.89 $13,104 $64,428 $124, years 051Y 0.51 Years years *Annual saving per year calculated using 8,400 hrs/year at 50% firing rate with $1/therm gas prices. 71

19 Scenario #3 Cold Water < 100F Used only with natural gas or similarly clean fuels 72

20 What is a Condensing Economizer Used only with natural gas or similarly clean fuels 73

21 What is a Condensing Economizer Economizer are designed for relatively equal mass flow on both sides of the finned tube, but this does not always lend itself to condensing of the flue gas Cold = 80F and under condensing of flue gas is likely Preheated = F condensing of flue gas is not consistent Hot water = 130F and over condensing of flue gas is nearly impossible Used only with natural gas or similarly clean fuels 74

22 System Layouts Make-up water Economizer Tank Boiler To process 75

23 Materials Selection Why is it so important? Stainless steel tubes fins are used in our baseline offer. All stainless steel material upgrades are suggested by Cannon If all equipment is working properly we expect a minimum of corrosion potential. 76

24 Real numbers for City water economizers Water Inlet Water Outlet Gas Inlet Gas Outlet 125 hp 600hp 1200hp Saving/hr $ $17.08 $32.56 Saving/year* Equipment payback $16,716 $83,496 $161, years Years years 0.46 *Annual saving per year calculated using 8,400 hrs/year at 50% firing rate with $1/therm gas prices. 77

25 Overcoming the issues Problem: Pressure drop or Space limitations Solution: Unit that is skid mounted with induced draft fan. Can be installed away from boiler and does not induce and backpressure on boiler exhaust. 78

26 Cannon On-Demand Economizers Can be installed indoors or outdoors Completely invisible to your boiler system Two or three stages of heat recovery are also possible with On-Demand units 79

27 GTI Not-for-profit research, with 65+ year history Facilities 18 acre campus near Chicago 200,000 ft2, 28 specialized labs Staff of 250 Other sites in Oklahoma and Alabama Experiencing substantial growth 1000 patents; 500 products Flex-Fuel Test Facility Energy & Environmental Technology Center Offices & Labs 80

28 TMC Heat Recovery Natural gas combustion produces about 18% water Water vapor up the stack accounts for 10% of fuel energy input, or energy in water is 65% of stack loss Key to higher energy efficiency is to recover both sensible and latent heat 81

29 Heat Recovery General Approach 1. Remove sensible heat with two economizers (HTE + LTE) 2. Remove latent heat and water with Transport Membrane Condenser (TMC) Fuel in Steam Out Boiler Ambient air BFW HPE Deaerator/ Make-Up Tank LPE TMC Make-up water Flue gas out Suitable for end users with make-up water over 35% and under 80F 82

30 Heat Recovery TMC Concept Nanoporous ceramic membrane tubes Water vapor permeation via capillary condensation, which occurs more readily than condensation in typical condensing economizers Partial vacuum on tube side Counter-flow configuration 83

31 TMC Installation Results Specification Rubber 300 HP 93-94% efficiency 19% reduction in fuel cost 19% reduction in GHG emissions 5% reduction in boiler feed water 40% smaller footprint 15,000 hours of operation Early prototype design Clement Pappas 300 HP 92-93% efficiency 40% smaller footprint Two-stage burner, <5 ppm Nox10,000 hours of operation 84

32 TMC Installation Results Baxter Healthcare, Thousand Oaks, CA, 300 HP retrofit 93% efficiency 15% reduction in fuel cost 15% reduction in GHG emissions 5% reduction in boiler feed water 4000 hours of operation ORNL 300 HP Standard Boiler Commissioned May 2010 Initially 95% efficiency 200 psig design Integrated control panel 85

33 TMC Installation Results RBC New 300 HP Standard d Boiler Startup June 2010 Expect 94% efficiency Expect 15% reduction in fuel cost Expect 15% reduction in GHG emissions Expect 5% reduction in boiler feed water 86

34 Specific Results at Thousand Oaks Original Boiler System = 81.9% efficient AHRS Retrofit = 93% efficient Components: 1. High pressure economizer (HPE) 2. Low pressure economizer (LPE) 3. Transport membrane condenser (TMC) 4. Air heater (AH) Fuel savings $36,655/yr Greenhouse gas emission reduction 2595 tons CO2/year Water recovery ~40% of total vapor in exhaust Funding partners US DOE Southern CA Gas Baxter Healthcare 87

35 Commercialization Cannon Boiler Works has been supplying heat recovery products to the industrial boiler industry for over 35 years A full range of customized products available, including: Traditional Welded Economizers Feedwater Heater Economizers Condensing Feedwater Heater Economizers Skid Mounted On-Demand Heat Recovery Systems The Ultramizer System 88

36 Development of the GTI CBW Relationship GTI contacted Cannon in January of 2009 with an offer to begin due diligence for licensing one portion, the TMC system, from the overall superboiler project. After 8 months of negotiation CBW accepted the challenge and began our commercialization program. We are on schedule for late 2010 commercial sales in the 200 to 400 BHP range. The DOE and GTI are very interested to see the commercialization of the technology. We have seen great interest from trade groups, and some major corporations who have already made commitments to reduce energy intensity in the next few years. 89

37 Cannon Ultramizer System Combines Cannon s HTE and LTE Feedwater Heaters with TMC Technology to provide the ultimate in heat and water recovery TMC Technology recovers Sensible and Latent Heat from flue gas stream Recovers clean water from natural gas burning combustion systems Boiler efficiencies of 95% are possible Reduction in emissions is equal to the reduction in fuel consumption Three year simple paybacks are possible 90

38 Cannon Ultramizer System Cannon offers alternate methods of installation. The HTE can be in the stack The LTE Feedwater Heaters with TMC Technology can be skid mounted in a convenient location This provides the ultimate in heat and water recovery that fits difficult sites. 91

39 Current Status of Commercialization Software is being developed to enhance and add to CBW s capabilities for one, two, or three stages of heat recovery. Production facility upgrades are ongoing. A clean room has been built for construction and testing of the ceramic tube bundles. Additional personnel e are required. ed Product Manager, age AutoCAD designer have been hired, and additional sales personnel are being interviewed. Establishing relationships with vendors for ceramic tubes and fiber reinforced tubesheets, along with quality control standards. Gather operating data from existing sites Optimizing operating range of TMC 92

40 Current Status of Commercialization Establishing performance warranty through testing over several site conditions and load conditions. Establish pricing for in stack applications as well as On-Demand applications, with an emphasis on short ROI Addition of the combustion air heater is possible for lower makeup rates. Dirty fuels testing is being done by GTI for future applications Evaluate non-boiler flue gas or hot moist air streams 93

41 Current Status of Commercialization Future size range of 400 to 800 BHP, and finally 800 to 3000 BHP Evaluate process water applications where flow, temperature, and availability of the water are all independent of the boiler operation Notifications of major advancements made to DOE, state regulatory agencies, and trade organizations Establish the Ultramizer as best available commercial technology in fuel, emissions, or water conscious areas 94

42 Current Status of Commercialization Media Campaign in trade journals with magazine ads and electronic banner ads online New website landing gpage Representative on-line training tools Representative on-line rating tools Live webinars Targeted customer lists in cooperation with area representatives 95

43 TMC Units in Operation Previous installations: Specification Rubber Alabaster, AL Clement Pappas Ontario, CA Baxter Healthcare Thousand Oaks, CA Oak Ridge National Laboratories Oak Ridge, TN Coming soon: Richardson Brand Candies Canajoharie, NY China Lake National Labs China Lake, CA City Brewing Latrobe, PA 96

44 Performance Warranty CBW warrants the performance of the equipment, operating in a clean condition both water side and gas side, to the operating conditions presented to CBW at the time of sale. Should CBW equipment fail to meet the predicted performance, CBW reserves the right to repair, modify, replace the unit, to produce guaranteed performance, or remove the unit at no additional cost to the owner. All performance testing to guarantee performance will be the responsibility of the owner and will be conducted in accordance with ASME test procedures. 97

45 Cannon Boiler Works Serving the process steam industry since Constitution Blvd New Kensington, PA Ph Fx

46 Other Products Manufactured by Cannon Boiler Works 99

47 Cannon Manufactured Products Steam Accumulators Custom Heat Exchangers Feedwater/Softener Systems Pressure Vessels Turn-key Equipment Installations Patented Fluidized Bed Boilers for waste coal or biomass 100

48 Custom Heat Exchanger Products Typical lapplications: Hot oil coolers Dryer air heaters Column condensers Product P d t coolers Water/Glycol coolers Gas heating/ cooling Steam condensers Quench oil coolers Inter & after coolers Heat recovery Industries Served: Chemical i l Pharmaceutical Food processing Pulp and paper Hospital p and institution Refining and petrochemical Primary metals Plastics Coating & Resins Utilities 101

49 Custom Heat Exchanger Products Capabilities: Custom Designed units Thermal Design Finned tube heat exchangers Shell and tube heat exchangers Thermal Design Software HTRI B-JAC Software 102

50 Vent Condensers Vent Standard d Features: No moving parts. Easily installed. Corrosion resistant materials Safety protected. Extended surface. Computerized selection. One year guarantee. Quality construction. Benefits: Energy recovery from latent heat process Water recovery from plume condensate Stop moisture damage to the roofing structure Prevent ice/snow build up on the roof in winter months Aesthetic reasons: removal of the steam plume Cold Water Condensate (Backside, not shown) Hot Steam Hot Water 103

51 Vent Condensers Information required for a quotation Vented Steam Flow Water temp inlet Water flow available 104