ELEVATING VAM RTO INLET CONCENTRATION THROUGH CMM BLENDING FOR POWER GENERATION

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DURR SYSTEMS, INC. CLEAN TECHNOLOGY SYSTEMS ELEVATING VAM RTO INLET CONCENTRATION THROUGH CMM BLENDING FOR POWER GENERATION Karl Walby Senior Key Account Manager 734-536-3423, karl.walby@durrusa.com ICAC 09/18/13 www.durr.com

CONTENTS 1. Ventilation Air Methane (VAM) Overview 2. Regenerative Thermal Oxidizer (RTO) 3. CMM Injection 4. RTO Excess Heat Utilization Steam and Power 5. Durr Systems China VAM / Power Generation Project - Parameters 6. System Overview 7. CMM Injection System 8. Partner Patented CMM Mixer 9. Safety 10. Project Status Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 2

1. Ventilation Air Methane Overview Coal mine vent shafts emit many tons of methane each year 21 times worse than CO2 for the atmosphere Carbon credit program developed to push methane destruction rather than venting to atmosphere US Mines typically operate at methane concentrations ranging from 0.6% to 1.1% China mines typically operate at methane concentrations ranging from 0.3% to 0.4%. At methane concentrations above 0.3% oxidation systems can generate a substantial quantity of excess heat For the US current carbon market price levels and shaft locations make stand alone oxidation systems unattractive. Durr has only full scale system operating in the US. In China shafts are more centrally located to cities and grids. The combination of VAM oxidation and power generation becomes very attractive. Power generation alone can finance projects. Low methane concentration hurdle can be overcome with Coal Mine Methane (CMM) injection to increase methane concentration levels Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 3

2. Regenerative Thermal Oxidizer (RTO) 1750 F 1628 F 70 F 142 F Two Tower Regenerative Heat Exchange Oxidizer Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 4

3. Coal Mine Methane (CMM) Injection CMM pumped from underground methane pockets at coal mines Typical concentration 10% to 25% methane Commonly used in small gas turbines at coal mines Method to increase methane concentration and therefore carbon credit generation Mixed concentration at RTO inlet up to 1.2% methane Also increases the amount of excess heat generated in an oxidation system Injected and mixed with low concentration VAM prior to an oxidation system Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 5

4. RTO Excess Heat Utilization Steam and Power At 0.3% methane an RTO can operate with no supplementary fuel gas self sustain Above 0.3% methane a system must be implemented to shed excess heat from the combustion chamber. Oxidized methane gives off more heat than required to maintain typical combustion chamber temperature of 1550F. Combustion chamber temperature will begin to rise. A hot gas bypass from the combustion chamber allows excess heat to be evacuated and the combustion chamber temperature to be stabilized at 1750F. The excess heat can be sent to a heat utilization device for use. In the case of VAM projects this is a steam boiler. Up to 30% of the RTO inlet volume can be bypassed from the combustion chamber. Steam is generated and then sent to a steam turbine to generate power. Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 6

5. Example - Durr Systems China VAM Power Generation Project VAM Volume 1,040,000 Nm3/hr (700,000 scfm) VAM Methane Concentration 0.3% Collection Point 20 meter tall stacks, 10 meter x 10 meter collection hoods CMM Injection Volume 40,000 Nm3/hr (27,000 scfm) CMM Injection Methane Concentration Up to 25% VAM plus CMM Methane Concentration Up to 1.2% 6 Point CMM Injection System 12 RTO Oxidation System Excess Heat Hot Bypass To Steam Boiler 300,000 Nm3/hr (201,923 scfm) at 1750F Steam Turbine for 20MW Electricity Production Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 7

6. System Overview Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 8

6. System Overview Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 9

7. CMM Injection System CMM Injection Volume 40,000 Nm3/hr (27,000 scfm) 1200mm (47 ) diameter main supply pipe from CMM pumping station Six 500 mm (20 ) diameter injection pipes Injection performed underground concrete mixing structure Modulating control based on laser methane concentration system at downstream VAM +CMM control point Partner patented CMM Mixers Multi-level safety system Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 10

7. CMM Injection Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 11

7. CMM Injection Overall System Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 12

8. Partner Patented CMM Mixer Durr partnered with reputable design institute in China with extensive CMM experience Partner supplying patented high efficiency mixer 98% mixed within 2 meters of the mixer exit Low pressure drop design Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 13

8. Partner Patented CMM Mixer Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 14

9. Safety 1. Primary - Redundant LEL (Lower Explosive Limit) switches in VAM supply duct a) Fault Settings Resulting in RTO isolation, dilution and shutdown 1.8% Methane High differential between redundant switches Loss of beam signal b) Response Time Faster T90 response time (<1 second) than catalytic heat of combustion and infrared types 2. Primary RTO Isolation and Dilution a) High LEL faults results in RTO isolation and shutdown, opening of dilution air and fresh air dampers. b) If isolation fails, RTO fans pull dilution air and fresh air to reduce concentration entering the RTO. c) US MSHA regulates that VAM process air travel time from the LEL sensors to RTO isolation valves is greater than: LEL detection / reaction time + PLC / Instrument reaction time + RTO isolation damper closing time. See example. Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 15

9. Safety 3. Primary - Pressure Relief VAM Capture Hood a) Durr designed and flow modeled capture hood. Roof openings to vent VAM air to atmosphere. 4. Secondary Methane Monitoring System a) Normally used to measure methane concentration to each individual RTO for carbon credit reporting b) Durr integrated an isolation and shutdown fault if methane concentration is above 1.4% 5. Secondary RTO Standard Safeties a) High mid bed temperature thermocouple High temperature initiates RTO isolation and shutdown b) High combustion chamber temperature thermocouple High temperature initiates RTO isolation and shutdown c) Large RTO ceramic heat exchange beds act as flame arrestors if there is an ignition in the combustion chamber d) All instruments within the air stream intrinsically safe or explosion proof e) Heat exchange bed thermocouples to maintain cool lower bed temperature Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 16

10. Project Status RTO system installed Steam boiler 95% complete Steam turbine onsite CMM injection system underground concrete complete CMM mixers onsite Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 17

10. Project Status Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 18

10. Project Status Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 19

10. Project Status Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 20

10. Project Status Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 21

10. Project Status Clean Technology Systems, ICAC Industrial Rountable, VAM - CCM Blending, 09/18/13 22