Activated Carbon Injection for Mercury Control on Industrial Coal-Fired Boilers

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Activated Carbon Injection for Mercury Control on Industrial Coal-Fired Boilers Richard Miller Vice President Business Development ADA Environmental Solutions Co-Chairman ICAC Mercury Committee

Who is ADA? Technology Development And Services Mercury Control (ACI) SO 3 Management Flue Gas Conditioning Mercury Measurement Mercury Control Flue Gas Conditioning Beneficial use of Ash Clean Coal Additives CO 2 Capture Interim Processing Production Facilities Logistics ADA develops and commercializes innovative technologies to sustain the viability of coal as a critical national resource. (NASDAQ: ADES)

New Activated Carbon Production Currently building one of the largest U.S. located AC plant to date First line will produce approx.150+ MPY Permitted for two lines or 350 MPY Under construction and on schedule Red River, LA plant startup target: mid-2010 Currently processing and shipping carbons ( up to 60 MPY) from interim facility in LA.

MERCURY CONTROL FOR COAL-FIRED STATIONARY SOURCES

New Drivers for Mercury Control Power Generation: o EPA Section 112 MACT or legislation (3-P) by congress, Min. 90% Hg control expected Cement Kilns: o New rule proposed by EPA Reduction target of 11,600 lbs (81%) Industrial Boilers: o Draft bill being introduced April 15, 2010 o Promulgation scheduled for December 2010 70 to 80% control expected

EPA MACT for Industrial Boilers Federal Rule Update: - Draft Industrial Boiler MACT rule to be proposed April 15 th, 2010 - Expected decision December 16, 2010 - Compliance date 2013 Industry Market: - 1549 Facilities 13,100 Boilers - Focus: Coal Fired Boilers: ~ 680 6

EPA MACT for Cement Kilns Federal Rule Update: - EPA released Draft rule in April 2009 to reduce mercury emissions from Portland cement kilns - Final rule expected Spring 2010 - Compliance date 2013 - ADA testing AC for mercury and organics for cement companies Cement Market: - 118 new or planned cement kilns in US - Fourth-largest source of mercury air emissions Meeting the Cement Market - Utility or Smaller Industrial scale ACI equipment is appropriate Cement kiln and process ACI Baghouse Stack www.cement.org 7

Factors Affecting Native Mercury Removal Coal Type Halogen content (Cl, Br, other) Sulfur content Flue Gas Acid Gases (HCl, SO 2, SO 3 ) Gas Temperature Unburned carbon (LOI) Emission Control Equipment

Typical Emission Controls Particulate Matter Fabric filters, ESP Acid gases (HCl, SO 2 ) Scrubbers (wet or dry) NOx LNB, SCR, SNCR 9

-10- Activated Carbon Injection Technology for Controlling Mercury Emissions Sorbent Injection CEM - Hg Measure. ESP or FF AH Inlet location may be more effective for ESP s for Hg capture Ash and Sorbent

Powdered Activated Carbon Specifications Particle size: 15-25 µm Surface Area: Typical > 500 m 2 /g Treated sorbents effective for low-halogen flue gas applications such as PRB-fired units with ESPs or SDA/FFs or for higher temp aplications Emerging activated carbon sorbents for high SO 3 flue gas

Factors Affecting ACI Performance Coal Type Halogen content (Cl, Br, other) Sulfur content Flue Gas Acid Gases (HCl, SO 2, SO 3 ) Gas Temperature Emission Control Equipment ACI System Design Distribution Residence time Sorbent characteristics Similar factors affect native Hg removal

Activated Carbon Effectiveness Hg Removal (%) 100 90 80 70 60 50 40 30 20 10 0 Temperature Acid Gases (SO 3 ) 0 5 10 15 Injection Concentration (lb/mmacf) Challenges: > 350ºF > 5 ppm SO 3

Potential Mercury Control Issues Facing Industrial Boilers Coal types fired in boilers Flue gas operating temperatures SO 3 levels in the flue gas exiting boilers and entering particulate control systems Existing APC configuration and particulate control systems in-place. (ESP, FF, Cyclones, Scrubbers) Possible ammonia slip from NOx systems May need to replace existing ESP s with Fabric Filters

Tools for Evaluating ACI Performance ADA Owns 11 Hg CEMS Used for Test Programs Portable Hg CEMS and Calibration Units

Activated Carbon Injection (ACI) Systems Large Utility Size ACI System Smaller Industrial Boiler Size ACI System

Typical ADA ACI System Sorbent delivered in pneumatic trucks or rail cars Silo(s) with up to three product take-offs 1 x 100%, 2 x 100% or 3 x 50% feed trains Worry-free PAC flow from silo Custom fluidizing system designed for PAC Modular approach PAC storage Electrical room Feeder room Blower room Dilute-phase pneumatic conveying Custom engineered distribution manifolds Custom injection lances Site-specific control schemes Use of 1,000 lb Super-Sac discharge systems for smaller industrial boiler installations

Hg Control Demonstration Program Cornell University Case Study

Cornell University Utilities Boiler #8 Mass Overfeed Stoker Riley 1949 175,000 pph steam Pulse jet fabric filter installed 1998 Flue gas 375 F Bags: woven fiberglass with 10% Teflon B finish Historically operated October to May 19

Background Plant fires low sulfur bituminous coal Mercury (3 year avg) 5.9 lb/tbtu (range 3.6 to 9.5) High (> ~10 ppm) SO 3 in flue gas Coal sulfur < 1%, but boiler design and operation resulted in high conversion to SO 3 Unburned carbon in ash > 20% Results from 2007 test show low native mercury removal and low mercury removal with ACI New York State Energy Research and Development Authority (NYSERDA) awarded grant for mercury control project in 2008

Summary of 2007 Results 100 Hg Removal (%) 90 80 70 60 50 40 30 20 10 0 0 5 10 15 Injection Concentration (lb/mmacf)

2009 Test Matrix - Cornell Boiler #8 Baseline Removal Characterize effectiveness of PAC, no SO 3 mitigation Standard PAC PAC treated with bromine Characterize effectiveness of PAC, with SO 3 mitigation Trona (sodium sesquicarbonate) injection Goal: capture SO 3 Ammonia injection Goal: form ammonium sulfate

2009 Parametric Test Results Cornell Boiler #8 Hg Removal [%] 100 90 80 70 60 50 40 30 20 10 0 0 1 2 3 4 5 6 ACI [lb/mmacf] Additional testing and optimization is required to assess balance-of plant impacts and assure long-term mercury capture NH3 + ACI (PPP) Trona + ACI (PPP) ACI (PPP) NH3 + ACI (nbr) Trona + ACI (nbr) ACI (PP, nbr) PPP = Brominated Carbon nbr = Plain non-treated carbon

Summary Many lessons learned from the utility power sector can be applied to industrial boilers Industrial boilers have unique concerns Full-scale demonstration testing is recommended to better characterize performance Commercial AC injection equipment and activated carbon is available Carbon can be delivered to process via many types of systems, including: Portable (1,000 lb. Super Sacs) injection systems Shop welded and assembled steel silos Hybrid smaller systems 24

ADA Contact Information Mercury Control Systems: Rich Miller ADA-Environmental Solutions Vice President Business Development richm@adaes.com 610-760-1555 Activated Carbon Supply: Marilyn Treacy ADA Carbon Solutions Sr. Vice President Sales & Marketing marilynt@ada-cs.com 303-339-8854 25

THANK YOU QUESTIONS? 26