Mercury Emission Control Utilizing the Chem-Mod Process

1. Mercury Emission Control Utilizing theChem-Mod Process

2. Chem-Mod International LLC INTRODUCTION

3. Company Overview • Chem-Mod International LLC is an advanced clean coal company which has developed a sorbent-based, multi-pollutant control technology called The Chem-Mod™ Solution • Chem-Mod International is a privately held corporation

4. Chem-Mod International was founded in 2004 with the purpose of promoting the use of the Chem-Mod technology internationally The technology is jointly owned with Chem-Mod LLC which provides emission control in the United States and Canada Company Overview

5. Company Overview • Chem-Mod’s technology substantially reduces emissions at coal-fired power plants: • Mercury • Sulfur Dioxide • Nitrogen Oxide • Heavy Metals • Light Metals • Chlorides

6. The Chem-Mod™ Solution • Dual Reagent System • MerSorb for Oxidation of Heavy Metal including Mercury • Low maintenance, cost effective, easy to operate • Reagents can be added to the boiler at three points: • Before combustion • During combustion • After combustion • Harmful emission contaminants are captured in the fly ash and permanently bound in a ceramic matrix • Resulting fly ash is non-leachable • Reagents are non-hazardous materials which require no special shipping or handling requirements

7. Intellectual Property Multiple US and International Patents Issued Five Patent Families Applied for in China

8. Chem-Mod International LLC Pilot Scale Testing

9. Pilot Scale Testing Pilot Scale Testing was performed at the Energy and Environmental Research Center of the University of North Dakota in Grand Forks, ND, USA

10. Pilot Scale Testing • Schematic Diagram of the Combustion Test Facility (CTF)

11. Pilot Plant Operating Conditions • 575,000 – 700,000 Btu/hr • XS Oxygen – 2.75% to 3.5% • 20% Over-fire Air • ESP for Particulate Control • 300°F - 325°F, 360°F • Other Equipment Utilized • Wet Scrubber • SCR • Baghouse

12. Section 45 Test Results CAPP = Central Appalachian NAPP = Northern Appalachian PRB = Powder River Basin SAPP = Southern Appalachian

13. CAPP Case Study - Operating Conditions • 0.614 – 0.637 MMBtu/hr • FEGT = 2200°F • Excess Air = 18% to 20% • Over-Fire Air = 20% • ESP Temp = 310°F • Wet Scrubber = 290°F • MerSorb = 0.10% • S-Sorb = 0.5%

14. CAPP Case Study - Fuel Analysis

15. CAPP Case Study – Emission Reductions

16. PRB Case Study - Operating Conditions • PRB Blend Produced at Section 45 Production Facility • Treatment Rates • MerSorb = 0.021% • S-Sorb = 0.51% • Operating Conditions • FEGT = 2200°F • 20% XS Air (3.5% Flue Gas O2) • 20% Over-Fire Air • ESP = 310°F

17. PRB Case Study – Fuel Analysis

18. PRB Case Study – Corrected Hg Emissions

19. PRB Case Study – Test Results

20. Pilot Scale Testing • Energy & Environmental Research Center • University of North Dakota • 15 North 23rd Street, Stop 9018 • Grand Forks, North Dakota 58202-9018 • World Wide Web: www.undeerc.org • Telephone No. 1 (701) 777-5258 • Fax No. 1 (701) 777-5181 • Jay Gunderson, Research Engineer • jgunderson@undeerc.org

21. Chem-Mod International LLC Full Scale Testing

22. Full Scale Test Program ORIGINAL TEST PROGRAM 2004 – 2008 • Testing to demonstrate multiple emission controls • Sulfur • Mercury • NOx • Application rates of reagents were significantly higher than current program standards

23. Full Scale Test Program • Seven Full Scale Burn Tests Conducted Over Four Year Period • Five different Utility companies involved • Unit sizes range from 30 to 190 MWe (net) • Multiple injection points utilized • Multiple reagent formulas tested • Multiple application rates tested

24. Reagent Injection Options

25. Full Scale Test Equipment Reagent Injection Points – Coal Feeders

26. Full Scale Test Equipment S-Sorb Day Bins

27. Full Scale Test Equipment MerSorb Storage Totes and Pump Station

28. Full Scale Test Equipment S-Sorb Bulk Storage

29. Full Scale Test Results

30. Full Scale Test - Other Benefits • No issues were identified in power plant operations • Particular care was taken in observation of: • Pulverizers • Burners • Boiler Water Walls • Tube Pendants • Air Heater Sections • ESPs • Baghouses

31. Full Scale Test - Other Benefits • Improved Fly Ash characteristics • Improved heat rates due to reduced fouling • Potential reduced CO2 Emission due to more efficient operation and possible carbonate formation • Reduced emission of heavy metals other than Hg • Potential increase in SCR catalyst life due to Arsenic removal • Decreased scale buildup on boiler tubes

32. Boiler Tubes from PRB burning plant after furnace injection of S-Sorb at 5 to 6% for five days. Notice how clean the area closest to the injection point is Buildup of slag between the boiler tubes Notice how you can see all the way back to the brick wall Full Scale Test - Other Benefits

33. Full Scale Test Program – Section 45 • United States IRS Code Section 45 • Reduce NOx by 20% from baseline emission • Reduce Hg or SO2 by 40% from baseline emission • Pilot Scale Tests Successful for NOx / Hg Reduction • Reagent Formula Modified • Application Rates Significantly Reduced • Vehicle for Initial Commercialization

34. Section 45 Full Scale Test Program • Section 45 Tests performed 2009 to present • Tests Performed with Three Utilities at Four Sites • Demonstrate Compatibility With Power Plant Systems “DO NO HARM” • Boilers • Burners • Pulverizers • ESP • SCR • Scrubber • Baghouse

35. Section 45 Full Scale Test Results

36. Chem-Mod International LLC Commercial Operation

37. Commercial Operation • Section 45 Refined Coal Program - vehicle for commercialization • Chem-Mod Solution licensed to four companies • Refined Coal Facilities running at 8 power plants owned by three different utilities • Twenty additional Refined Coal Facilites in the installation process at other sites • Initial startup of facilities occurred in December 2009

38. Generating Stations with Section 45 Facilites in Operation

39. Typical Chem-Mod Section 45 Process Flow Diagram

40. Typical 3000 ton/hr Chem-Mod Refined Coal Production Facility

41. S-Sorb Bulk Storage Silo

42. MerSorb Bulk Storage Tanks

43. Twin 1500 ton/hr Pug Mill type Mixers

44. Hg Emission From Power Plantswith Section 45 Chem-Mod Refined Coal Notes:1) Theoretical Hg value estimated from fleet average as fired Hg content of coal at 0.126 µg/g (ppm) at 12,000 BTU as fired. When Corrected to 6% O2, this yields a standard Hg flue gas concentration of 10.707 µg/m3. 2) Only units with installed Continuous Mercury Monitors appear in this table.

45. Commercial Operation Further Development • Baghouse and Scrubber equipped units approach or achieve 90% Hg reduction from theoretical emission • ESP equipped units are significantly improved from baseline, but have yet to achieve 90% theoretical capture • Case study under way to improve Hg capture on units which are only equipped with an ESP • S-Sorb reagent formula modifications in progress • Altered application rate of MerSorb and S-Sorb to increase capture effectiveness

46. Section 45 Case StudyInitial Test Hg Results – PRB Coal

47. Commercial Operation • To date, utilities have burned more than 8 Million Tons of Chem-Mod Refined Coal • Several units have operated on 100% Chem-Mod Refined Coal since February 2010 • No units have reported any operational issues associated with handling or burning Chem Mod Refined Coal

48. Chem-Mod International LLC Conclusion

49. SO2, Hg, Heavy and Light Metals, and Chlorides Removes Elemental Mercury Permanently locks contaminants in ash Creates saleable fly ash Avoid Scrubbing Low capital and maintenance costs Minimum downtime Small footprint required for equipment Minimal parasitic load Chem-Mod’s Many Advantages Effective Multi-Pollutant Control Low-Cost Solution • Readily available chemicals that require no special handling • No toxic waste created Environmentally Sound

50. Conclusion & Questions Further information can be found at: www.Chem-Mod.com or email us at: Dcc3542@aol.com Chem-Mod International, LLC 3745 East Overlook Drive Port Clinton, OH 43452 1-419-497-4897 (office)