REC weight factor for different renewable energy source REC : Renewable Energy Certificate

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RPS (Renewable Portfolio Standard) Introduced in 2012 to promote the use and supply of renewable fuel and to activate renewable energy industry in Korea Selected suppliers must supply a certain percentage of total power generation capacity using renewable energy 18 suppliers : KEPCO subsidiary 6, Private company 10, Public company 2 2012 (2%) 2017(4%) 2018(5%) 2020(7%) 2023(10%) REC weight factor for different renewable energy source REC : Renewable Energy Certificate REC factor 0.25 IGCC 0.5 Waste, Landfill gas Target energy 1.0 Bioenergy, RDF(100%), Hydropower, Onshore wind power, Tidal power 1.5 Woody biomass(100%), Offshore wind power (<5km) 2.0 Offshore wind power (>5km), Fuel cell

Status of renewable fuel (Bio or Waste) application in domestic power plant Fuel REC factor Co-firing ratio (Period) Power plant < 4% ( 13~present) Standard PC boiler Bio energy Wood Pellet 1 15% ( 13~present) Yeosu CFB boiler Samcheok CFB (ready) Bio-oil (Vegetable) 1 100% ( 14~present) Jeju oil boiler Bio-oil (Animal) 1 100% ( 14~present) Namjeju oil boiler SRF RDF 0.5 1~5% ( 10~ 11) Donghae CFB boiler Waste energy Bio-SRF Wood chip 0.5 3 12% ('14~present) Donghae CFB boiler Cashew Nut Shell 0.5 5 10% (ready) Yeosu CFB boiler Coffee Residue 0.5 oil 5 10% (ready) Standard PC boiler The amount of wood pellet imported ( 16, 1.7million tons) is increasing year to year - Market share : 3 countries account for more than 90% of the total market ( 17.5) Vietnam (55%) > Canada (20%) > Malaysia (17%) - Average import price of wood pellet ( 17.5) : 252,670 won/ton (190 Euro/ton) Try to adjust the RPS weight factor in case of co-firing of wood pellet

Different commercial combustion boilers Fireplace Stoker BFB boiler CFB boiler PC boiler

Fuel application characteristics according to combustion type of existing facilities Limited to < 4 % due to Wood Pellet - low degree of pulverization - unstable operation status in boiler Milling PC combustion Biomass Wood Chip Bio-SRF Sludge/Waste Need pretreatment Direct application CFB combustion Raw Fuel Pretreatment process (Drying, Torrefaction) Milling Treated fuel No milling

Benefits of co-combustion in a CFBC system and CCS-Biomass integrated system

Technology challenges according to fuel diversification (Fluidized Bed)

Existing Newly installed Pretreatment (~ 200 ) Gas burner starts Fuel feeding starts (~ 550 ) Gas burner stops (720-750 ) Steady state (~ 850 ) Item Existing Newly installed Heating method External Heater Gas Burner + Direct Combustion Heat Combustor Material SUS 310 Refractory (Bottom) and Inconel Configuration 1 combustor, 1 cyclone 1 combustor, 1 cyclone (+ extra cyclone) Combustor Size 0.15m (Dia.) 8m (Height) 0.15m 8m Gas Sampling Port Cyclone (1ea), Bag filter (1) Axial (6), Cyclone (2), Bag filter (1) Fuel feeding rate 3-5 kg/hr Max 15 kg/hr

Fundamental test These follow the main features of CFB

NOx and SO2 in case of co-firing of wood pellet (0%, 20%, 50%, 100%) with coal SO2 & N2O, NO (Char, CaO in ash) PA ratio

Comparison of components in fine fly ash (6nm - 10 μm ) Main 2 components among Na, K, Cl, Ca, S, P (by XRF) Solid sampling (6nm-10 μm ) (FPS-4000+ELDI, Dekati) connected after 1 st cyclone Avg. Size ( μm ) Coal combustion 0.0098 S, Ca 0.0221 S, Ca 0.0408 S, Ca 0.0720 S, Ca 0.1214 S, Ca 0.1996 Ca, S 0.3137 S, Ca Wood pellet combustion Cl, K 0.4814 S, Ca S, Ca 0.7589 S, Ca S, Ca 1.2495 Ca, S Ca, S 2.0167 Ca, S Ca, S 3.0169 Ca, S Ca, S 4.4476 Ca, S Ca, S 7.3112 Ca, S Ca, S Alkali chloride is dominant in fine particle when wood pellet fired

Operation status of CFB boiler in Korea (include uses of bio and waste energy) Company / Location(City) Year EWP/ Tonghae 1998/99 Capacity (steam t/h or MWe) 693 t/h 2 (200 MWe 2) Fuel Anthracite /Biomass Category Electric Supplier /Design Doosan/ Alstom Hansol 2) / Jeonju 2010 10 MWe Biomass/ RPF Co-Gen AF Sweden Gunjang Energy #3, #4 / Gunsan KOSEP / Yeosu Yeosu Co-gen Plant / Yeosu Hyundai Oil Bank #8, #9, #10 / Daesan Gimcheon Community Energy / Gimcheon Han Ju Corp. / Ulsan GS EPS / Dangjin 2011/ 2014 2011 / 2016 250 t/h 2 Coal /Pet. Coke Co-Gen Hyundai HI 1040 t/h 2 (340MWe 2) Coal/Biomass Electric Doosan 2012 350 t/h 2 Coal Co-Gen Hyundai HI 2012/2014 /2017 220 t/h 2 330 t/h 1 Pet. Coke Co-Gen Hyundai HI 2012 330 t/h Coal Co-Gen Hyundai HI 2015 250 t/h Coal Co-Gen Hyundai HI 2015 105 MWe Biomass Electric FW KOMICO / Wonju 2015 10 MWe RDF Co-Gen OCI/ Gunsan KOSPO / Samcheok 2016 Hansol Seentec / KIER 2015 150MWe 2 Coal Co-Gen Doosan /FW 1,572 t/h 4 (500MWe 4) Coal/ Biomass Electric Hansol Seentec /FW Hansol 3) / Jeonju 2017 30 MWe Biomass/ RPF Co-Gen Kawasaki Hanhwa Energy / Gunsan 2018 100MWe Coal Co-Gen FW

Cebu CFB Donghae CFB Yeosu CFB Samcheok CFB Capacity 100MW x 2units Commercial Op. #1 : 11. 2 #2 : 11. 5 Designer Foster Wheeler Feature Compact Cyclone INTREX Sub-bituminous No co-firing Capacity 200MW x 2units Commercial Op. #1 : 98. 9 #2 : 99. 9 Designer Alstom Feature FBHE FBAC Korean Anthracite RDF, WCF Capacity 300MW x 2units Commercial Op. #1 : 16. 9 #2 : 11. 10 Designer Foster Wheeler Feature Compact Cyclone w/o INTREX Wingwall Tube Wood pellet Capacity 2units [550MW x 2-CFB x 1-Turbine] Commercial Op. #1 : 16. 12 #2 : 17. 6 Designer Foster Wheeler Feature SC-CFB type 257bar/603 o C Wood pellet (ready)

Normalized Weight Loss [-] 1.0 0.8 0.6 0.4 Combustion characteristics of MDF according to temperature rise condition (TGA vs DTG) MDF First stage of thermal decomposition Temperature [ o C] Heating Rate [10 o C/min] 0.2 second stage of 0 thermal decomposition Char combustion 0.0-5 Tm1 Tm2 0 200 400 600 800 20 15 10 5 DTG [mg/ o C] Normalized Weight Loss [-] Normalized Weight Loss [-] 1.0 0.8 0.6 0.4 0.2 MDF 0.0-5 0 200 400 600 800 Tm1 Tm2 1.0 0.8 0.6 0.4 0.2 MDF Temperature [ o C] Heating Rate [20 o C/min] Heating Rate [30 o C/min] 0.0-5 0 200 400 600 800 Tm1 Tm2 Temperature [ o C] 20 15 10 5 0 25 20 15 10 5 0 DTG [mg/ o C] DTG [mg/ o C] First stage of thermal decomposition (230 ~ 370 ) : Hemi-cellulose, Cellulose, Partially Lignin Second stage of thermal decomposition (370 ~ 420 ) : Remaining Lignin Char combustion (420 ~ 500 ): Char Residues ** Although the temperature (Tm1, Tm2) at the maximum pyrolysis rate increases with increasing heating rate, secondary pyrolysis process becomes weaker and weaker

Normalized Weight Loss [-] Combustion characteristics of RDF according to temperature rise condition (TGA vs DTG) 1.0 0.8 0.6 0.4 RDF First stage of thermal decomposition second stage of thermal decomposition Heating Rate [10 o C/min] Char combustion 0.2-10 0 200 Tm1 400 Tm2 600 800 40 30 20 10 0 DTG [mg/ o C] Normalized Weight Loss [-] Normalized Weight Loss [-] 1.0 0.8 0.6 0.4 1.0 0.8 0.6 0.4 RDF 0.2-10 0 200 400 Tm1 600 800 RDF Temperature [ o C] Heating Rate [20 o C/min] Heating Rate [30 o C/min] 40 30 20 10 0 40 30 20 10 0 DTG [mg/ o C] DTG [mg/ o C] Temperature [ o C] 0.2-10 0 200 400 Tm1 600 800 Temperature [ o C] First stage of thermal decomposition (330 ~ 370 ) Second stage of thermal decomposition (370 ~ 420 ) Char combustion (420 ~ 650 ): Char Residues ** Although the temperature at the maximum pyrolysis rate increases with increasing heating rate, secondary pyrolysis process is eliminated

Donghae CFB (200MW) Biomass/RDF cofiring Backpass Air Gas Flow Gas Flow Coal Silo Cyclone Boiler Solid Flow Solid Flow Air FBHE Windbox FBAC Middle Part Pressure Drop [mmh 2 O] Total Pressure Drop [mmh 2 O] 1600 1500 1400 1300 1200 540 520 500 480 460 Total Pressure Drop Lower Part Pressure Drop 960 0 1 2 3 4 5 6 Middle Part Pressure Drop Upper Part Pressure Drop 120 0 1 2 3 4 5 6 RDF Co-Combustion Ratio [%] 1110 1080 1050 1020 990 270 240 210 180 150 Lower Part Pressure Drop [mmh 2 O] Upper Part Pressure Drop [mmh 2 O] Primary Air Air

Yeosu CFB (340MW) Biomass cofiring

Donghae CFB (30MW) Only Biomass Boiler Turbine Andritz /POSCO CFB, constant Pr. Operation 107 ton/hr (84.5% efficiency) 96kg/ cm2, 510 SIEMENS / POSCO HP TBN-LP TBN Rating 30MW 93kg/ cm2, 507 Fuel Total Efficiency Problem 100% Domestic Bio-SRF 2,400-4,285 kcal/kg(design 3,952) 600ton/day (3,000kcal/kg basis) 28.4% (Output 100% basis) Station service consumption 14% Tube leakage (HT corrosion)/fouling Poor fluidization due to clinker formation / Fuel transport Ref) presentation in KEPIC

Donghae CFB (30MW) High temperature corrosion by KCl Reduction of high temperature corrosion after injection of ammonium sulfate cf) Sometimes coal can be used to mitigate high temperature corrosion in biomass-fired boiler. Ref) presentation in KEPIC

Clean power through co-firing of renewable fuel, high efficiency, and CCS Large capacity power plant ; co-combustion ( PC < 4%, CFB > 10%) Middle & small ( <100MW) ; combustion (FB and stoker boiler) Forecast of fuel usage for co-firing/combustion : 1.4million tons after 2020 : Need to find and develop cheap domestic/overseas forest resources Low rank coal Biomass RDF/RPF Waste