A new HP version of Lurgi s FBDBTM gasifier is bringing more value to clients

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A new HP version of Lurgi s FBDBTM gasifier is bringing more value to clients 2011 Max-Michael Weiss Air Liquide E&C/ Lurgi GmbH, Frankfurt, Germany GAP Conference Beijing 2011

Outline AIR LIQUIDE Group at a Glance New Lurgi FBDB TM Development Rationale for New Developments Development Steps and Status Benefits of Pressure Increase Lurgi RECTISOL rejuvenation Lurgi Methanation technology upgrade Coal to SNG Application benefits Conclusions / Summary 2

Lurgi New Gasification Module Mark + AIR LIQUIDE Group at a Glance 3

Lurgi within the Air Liquide Group AIR LIQUIDE - Brief Facts: Founded in 1902 (Lurgi in 1897) Present in 75 Countries, > 43,000 Employees, 8 R&D Centers, Sales 2010 = 13.5 Billion 1902-1990 1991-2000 2001-2008 LURGI Brief Facts: Member of AIR LIQUIDE Group Since July 2007 85% 7% Part of Engineering & Construction (E&C) Enhanced Technologies Gasification Conversion Sales of Gas & Services 8% Sales of Engineering & Construction Sales of Related Activities Integrated Solutions Provider 4

Rationale for New Developments GAP Conference Beijing 2011

Rationale for New Development of Lurgi s FBDB TM Gasification Mark+ Upcoming SNG Market & Others in China and Worldwide ask for Low Rank Coal Capitalization Domain of Lurgi FBDB TM Gasification Environmental Stewardship Lurgi s Fixed Bed Dry Bottom Technology and Downstream Units have been updated for: Competitive Pricing, e.g. SNG vs Natural Gas Reduction of CAPEX and Improvement of OPEX Reduction of Environmental Impact: Gas/Liquid Treatment & Water re-use (Zero liquid discharge) Fugitive Emissions and Carbon Dioxide Emissions Mitigation 6

Lurgi s Coal to SNG Technologies: Latest Improvements ASU Sulfur Recovery Elemental Sulfur CO 2 Rich Gas Coal HP Steam FBDB Gasification CO Shift & Gas Cooling Gas Purification (Rectisol) Methanation HP Steam SNG Rectisol Naphtha Ash Gas Liquor Separation Phenosolvan Phenols Recovery CLL / NH 3 Recovery Waste Water Treatment Effluent Water Liquid Ammonia Phenols Clear Tar / Oil 7

The Lurgi FBDB TM Gasifier Suitable for Low Rank Coal Coal suitability, a complex function of Particle Size Distribution: Lump coal, typically 5 50 mm Ash Fusion Temperature: typically above 1200 C Combined total ash and moisture content of no more than 50% Good thermal and mechanical strength Caking coal can be accommodated by the inclusion of proprietary internals into the gasifier vessel Green highlighted area shows proven operating range for Lurgi FBDB TM Gasifier wt-% Ash 50 45 40 35 30 25 20 15 10 5 Angul JSPL Secunda Sasol Shanxi Tianji Henan Yima North Dakota DGC 5 8 10 15 20 25 30 35 40 45 50 wt-% Moisture All ranks of coal proven in operation Lignite, Sub-bituminous, Bituminous, Semi-Anthracite 8

Development Steps to Mark+ and its commercial status GAP Conference Beijing 2011

The new Lurgi FBDB TM Gasifier: Mark + LURGI FBDB TM Mark 4 Gasifier Outside diameter: 4.13 m Height: 12.5 m Design pressure: 40 barg Secunda (RSA), DGC (USA), Tianji (PRC), Yima (PRC), Angul (India) LURGI FBDB TM Mark + Gasifier Outside diameter: 5.05 m Height: 17.0 m Design pressure: 60 barg Next Generation 1950s - 2010 2011-10

Lurgi New Gasification Module Evolution Step 2 Step 1 Name Mk4 (Mark4) Mk+ (Mark Plus) Nomenclature Mk4-HP40 Mk5E-HP60 Step 3 Raw Gas Loading (Nm³/h), dry Up to 60,000 Up to 120,000 Outside diameter (m) 4.13 5.05 Overall Height (m) 12.5 17 Design Pressure (barg) 40 60 11

Ruhr 100 Gasifier 1979-1985 Pilot plant Ruhr 100 Ruhrgas @ Dorsten / Germany Main characteristics Operating pressure 25 to 100 bar Diameter: 1.5 m 6,100 hours of operation 25,000 t of coal gasified 2 coal locks ( twin locks ) 12

Development diagram of Mk+ Rich references of Mk4 101 gasifiers globally Continuous technology improvement 1970s-2010) Quantify influence of diameter increase Latest MK4 (Design pressure: 40barg) STEP 1 Design improvement based on experience from Mk5 STEP 2 Continuous technology improvement for MK4 MK4 MK5 STEP 3 Quantify benefits of high pressure gasification Gasification database under high pressure and some special design features MK+ - Lurgi new FBDB Gasifier Ruhr-100 pilot plant maximum operation pressure: 100bar) 13

The Lurgi FBDB TM Gasifier Sketch Twin Coal Lock Reactor Gas Off-take Wash Cooler Rotating Grade Ash Lock 14

Lurgi FBDB TM Benefits of Mk+: Impact of Design Pressure and Dimension Results for a Chinese 4 BCMY SNG Project: Number of Lurgi FBDB TM gasification modules i.e. ~ 20 Mark + instead of ~ 40 Mark 4 Number of pieces of equipment greatly reduced (less number of modules) Benefits on the economics: Expected 10 % decrease of the SNG cost (60 barg vs 40 barg) Number of gasification modules halved Reduction of over 300 Equipment numbers Reduction of plot size Reduction of CAPEX up to 20% for the Lurgi FBDB TM process chain Higher Operating Pressure Reduces CAPEX and OPEX of Downstream units i.e. Rectisol and Methanation 15

Commercial interest in Mark+ Mark+ versus Mark 4: Lower coal and specific oxygen / steam consumption Higher specific methane yield Excellent savings in SNG and DRI applications NO demo unit required Ready for implementation on projects Resulting in: Mk+ being selected by a number of clients in China and India 16

Lurgi New Gasification Module Mark + LURGI Technologies for SNG Route Improved Rectisol Process 17

Lurgi Rectisol Process Adapted to Project Needs Intensive Development Program Undertaken Since 2009 Operational Expenses Reduced by More Than 30% Datang MTP Attributes of the Lurgi Rectisol Easy To Maintain Stable And Robust Operation On Line Cleaning Design Unique Know-how for Trace Components Characterization in The Feed Gas Carbon Dioxide Capture (Sequestration Ready) 18

Lurgi Rectisol Process Adapted to Project Needs Advantages of the Lurgi Rectisol Improved proprietary database Optimized Heat Exchanger Design Improved Heat Integration Reduced Capex Design References in China in 2010 Longyu LuoYang 19

Lurgi New Gasification Module Mark + LURGI Technologies for SNG Route Enhanced Methanation Process 20

Lurgi s References FBDB TM Gasification, Rectisol, Methanation Dakota Gasification Company Beulah, North Dakota, USA 14 x LURGI FBDB TM units Start-up: 1985 Coal: Lignite coal Products: Synthetic Natural Gas (SNG) and CO 2 for EOR (Weyburn/ Saskatchewan) 21

Enhanced Methanation Technology Lurgi and BASF Exclusive Partners on Methanation Technology Since 1974 Developed a High Temperature Process in 2010 Using Proprietary Catalyst Less Catalyst Volume Low Pressure Drop (Reflected in Lower Power Consumption) Long Catalyst Life and Robustness Medium Temperature Methanation High Temperature Methanation Catalyst G1 85 HT G1-85 Maximum Temperature ( o C) 480 650 Guaranteed Catalyst Life 3 2 (Years) Recycle Compressor (Volume) 100 % 70% Power Consumption 100 % 40% Steam Superheating Temp. ( o C) 460 510 22

Enhanced Methanation Technology - Gains Higher Maximum Operating Temperature Allows Generation of Higher Temperature Steam Improved OPEX Reduced Recycle Gas Flow (Smaller Capex) Overall Gains for Customers Choice Choose Between MT- and HT- Processes Flexibility of Methanation Process to Upstream Gasification Type and Steam Quality Needs 23

Lurgi New Gasification Module Mark + LURGI Technologies for SNG Route Summary 24

Summary on SNG plant New Lurgi FBDB Gasifier Module Mark + Greatly improves economics Rectisol Significantly Improved Process Definition Improved Heat Exchange and Integration Design > 30 % Less Operating Expense Reliability of Operation and Linked to Gasification and Methanation Processes New High Temperature Methanation Process Validated Process Based on MT Methanation Process in North Dakota Intensive Testing of Catalyst for Yield and Deactivation Characterization Significant Power Consumption and Capex Reduction 25

The Next Generation Lurgi FBDB TM Gasifier Conclusion for Mark+ Proven Operation Referenced Forgiving Operation Beneficial for Low Value Coal Safe Financially Secure Investment Track Record On-stream Factor (Availability) High Conversion of Coal Important as Coal Costs Increase Low Oxygen Need No Scale-up Risk Process Performance Guarantees Environmental Compliance Water Effluent World Bank Standards 26

End Thank you for your kind attention! Speaker contact: Max-Michael Weiss, AL International Senior Expert/ Innovation-Development Air Liquide E&C/ Lurgi GmbH Frankfurt/ Germany Phone: +49 69 5808 3452 E-mail: max-michael.weiss@airliquide.com 27