Programschedule

6:00pm Welcome,overview,introductions6:15pm Presentations7:05pm Break(5minutes)7:10pm Paneldiscussion7:30pm End

Tonight’sspeakers

JoelBakerProfessor,UniversityofWashingtonTacomaScience Director, CenterforUrbanWaters

MelissaMalottExecutive Director,CitizensforaHealthyBay

JasonJordanDirector, EnvironmentalandPlanningServices,PortofTacoma

TonyWarfieldSeniorManagerforDevelopmentServices, PortofTacoma

Haveyouregisteredforthenextsession?

tacoma.uw.edu/methanol

InformedDiscussionSeries

ExploringtheScienceUnderlying theProposedMethanolProductionPlant

Whyarewehere?

NorthwestInnovationWorks,Tacoma,LLC…proposes todevelopandoperateanaturalgas-to-methanol productionplantandexportfacilityonapproximately125acresinthePortofTacoma.

Objectivesforthisdiscussionseries

• Provideforacommonunderstandingoftheunderlyingscienceandengineeringoftheproposedproject

• Developanappropriatecontextforevaluatingtheproposedproject• Empowerthecommunitytocraftsmartanddemandingquestions• HelpTacomabecomeacommunitythatembracesinnovationwhile

preservingourcollectivewell-being.

Thestrategybehindthisseries

• Focusonconveyingthebestavailableknowledgeinaneutralvenue.

• Buildsessionsaroundquestionsfromthecommunity

• Selectspeakersfortheirdemonstratedtechnicalknowledgeandexperience

ratherthantheiremployerorpointofview

• ComplimentbutnotduplicateSEPApublichearings

Communityengagement

• WehaveactivelysolicitedquestionsfromthroughouttheTacoma,andhavepartneredwithCitizensforaHealthyBaytoengagethecommunity.

• Theserieswasdesignedaroundkeyquestionsfromthecommunity,andwewillcontinuetosolicitquestionsandconcernsbeforeandduringthesessions.

PLEASEaskquestionsusingthecardsprovided!

Orbye-mailtoRyanCruz(rcruz@healthybay.org)

Scheduleforsessions.Thursdays6:00Tonight Layingthefoundation—whatisbeingproposedandwhy?

JoelBaker(UWT/UrbanWaters)JasonJordanandTonyWarfield(PortofTacoma)

February25th Possibleimpactsonwater,power,andnaturalgassuppliesBobMack(TacomaPublicUtilities),EricdePlace(SightlineInstitute),DanKirschner (NorthwestGasAssociation)

March3rd PossibleenvironmentalimpactsSheriTonn (PacificLutheranUniversity),EdKolodziej(UWT/UrbanWaters),JoeCasola(UWClimateImpactsGroup)

March10th Reflectionsfromthecommunity—keyemergingissues

Groundrules

Introductiontothisevening

Goals

• Todevelopacommonunderstandingofwhatisbeingproposedandwhy

• Tosendyouhomewithmore(butbetter!)questions.

Introductiontothisevening

LineupJasonJordanandTonyWarfield

HowdidthisproposalcometoTacoma?Whatisthehistoryoftheproposedlocation,andwhatenvironmentalissuesshouldweconsider?WhatistheroleofthePortofTacoma?Howistheproposalbeingexaminedandpermitted?

JoelBaker

Methanol101:Whatisit?Whatisitusedfor?Howisitmade?Howmuchwaterandenergy?Whatarepossibleconcerns?

MelissaMalottandPanel

QuestionsandDiscussion

Port of Tacoma – Kaiser Aluminum Smelter SiteFebruary 11, 2016

• Created by citizens• 1911 – State Legislature Passed the Port

District Act• 1918 – Pierce County Created the Port of

Tacoma• Special purpose districts

• Economic development mission• AKA – Municipal Corporations

• Revised Code of Washington RCW Title 53

What are Ports?

Tideflats Comprehensive Plan and Zoning

Strategic Plan 2012-2022

Mission: Deliver prosperity by connecting customers, cargo and community with the world.Goals 1-6:

• Goal 1 – Enhance the Port’s Competitive Position.

• Goal 2 – Provide Reliable & Efficient Regional & Local Infrastructure Connections.

• Goal 3 – Improve the Port’s Financial Performance.

• Goal 4 – Increase Organizational Capabilities.

• Goal 5 – Advance Environmental Stewardship.

• Goal 6 – Strengthen the Port’s Community Connections.

Goal 5: Advance Environmental Stewardship

A. Identify and Address Environmental Issues in Advance of Planned Development:

1. Implement Cleanup actions on priority contaminated properties to support the Port’s business opportunities

2. Implement a habitat mitigation plan

B. Partner to Find Innovative Solutions to our Customers’ Environmental Challenges:

1. Identify and develop maritime industrial stormwater treatment best management practices

2. Develop a maritime industrial-focused Environmental Stewardship Sustainability Program

C. Continuously Improve Operational Efficiency and Emission Reductions:

1. Continue to implement the Northwest Ports Clean Air Strategy

2. Transition to the new generation of efficient systems to save energy costs and promote cost effective, renewable energy

Existing Habitat Sites

Investing in the Land

Why Ports Perform Remediation

Economic – Job Creation:

• Restore properties – revitalize area• Maximize available working waterfront land

Create value:

• Fully utilize existing land/assets

Environmental – Regulatory/Stewardship:

• Protect existing waterways and natural environment

• Protect existing investments/limit recontamination• $175M investment – Commencement Bay

Financial – Leverage Public Dollars: Offset Costs

• Grant Funding – Up to 50% of MTCA eligible costs

• Cost Recovery – Maximize other liable parties’ contributions

Strategic Goal – 200 acres in 10 Years

Industrial Land

• The Port purchased the former aluminum smelter in 2003.• The site had 70 buildings and 25 other features,

including a 500-foot smoke stack.

• The land is now clear and ready for development.

Background – Kaiser Facility

• Land and smelter infrastructure purchased in 2003

• Resource Conservation and Recovery Act (RCRA) facility operating under interim status

• Substantial demolition, cleanup, and grading work has been completed

• Current remedial actions will resolve RCRA and MTCA liability

• Future monitoring will be required

Background – Kaiser Facility

• Recycled over 60 million pounds of:

• Metal• Carbon• Alumina• Ore• Transformer Oil

• Disposed over 35 million pounds of waste

Background – Kaiser Costs to Date

Land and Facilities

Primary Premises~90 acresZoned “Port Maritime Industrial”

WharfEast Blair One: ~16 acresWharf: 1,200 feet longWater depth: 51 feet at MLLW

Agreement

• Approved by Port Commission on May 1, 2014.• 30-year term with 25-year extension by mutual

agreement• Three Periods:

• Feasibility Period (~24+ months)

• Construction Period (~3 years)

• Operating Period (~2021)

Environmental Review

• State Environmental Policy Act (SEPA) –managed by the City of Tacoma

• Major process elements include:• Scoping – defines study:

• December 2015 to March 2016

• Public comment period: December 15, 2015 to March 4, 2016

• Technical Report Development:• ~April 2016 to August 2016

Environmental Review

• Draft EIS• Late September 2016

• Public comment period: 30-45 days

• Final EIS• January 2017

• Mitigation Measures

Permitting

• Clean Water Act 404 – US Army Corps of Engineers*

• Rivers and Harbors Act Section 10 – US Army Corps of Engineers*

• Clean Water Act Section 401 Water Quality Certification – Washington State Dept of Ecology*

• Coastal Zone Management Act Consistency Certification – Washington State Dept of Ecology*

Permitting

• Various approvals under the Model Toxics Control Act (MTCA) – Washington State Dept of Ecology

• Stormwater construction permit – Washington State Dept of Ecology*

• Stormwater industrial permit – Washington State Dept of Ecology*

• Air Quality New Source Review/Prevention of Significant Deterioration – Puget Sound Clean Air Agency or Washington State Dept of Ecology

Permitting

• Air Quality Title V Operating Permit (if applicable) – Puget Sound Clean Air Agency

• Emergency Planning and Community Right to Know Act – Washington State Dept of Ecology, Pierce County, City of Tacoma

• Shoreline Substantial Development Permit –City of Tacoma*

• Critical Areas Preservation Permit – City of Tacoma*

Permitting

• Process water discharge permit – City of Tacoma

• Numerous building and operational permits, approvals and licenses – multiple federal, state and local agencies

Thank you

Methanol101

Threequestions:

1. Whymethanol?2. Whynow?3. WhyTacoma?

Guidingprinciplesforouranalysis:

1. Everythingendupsomewhere2. Youcan’tmakesomethingfromnothing3. Scottyisright

Captain, Ican'tchange thelawsofphysics

Whatismethanol?

Aclearliquidthatisagoodsolvent

Alsoknownasmethylalcohol, woodalcohol, wood naphtha, methylhydrate,or woodspirits

Whatismethanol?

Isittoxic?Yes!

Ifswallowed,itisconvertedtoformicacidwhichisametabolictoxin

Whatismethanol?

Doesitburn?Yes!Onceignited,puremethanolburnswithanearlyinvisible(relativelylowtemperature)flame.

Whatismethanol?

Methanol Gasoline

FlashPoint 54oF -43oF

Lowerflammabilitylimit 6% 1.4%

Heatofcombustion 23kJ/g 47kJ/g

Whatismethanolusedfor?

1.Liquidfuel

Whatismethanolusedfor?

2.Chemicalfeedstock

Methanex Corporation,2012(B.Boydpresentation)

What’sanolefin?

(aka‘alkenes’forthoseofyouwhosufferedthrough organicchemistry)

Includesethyleneandpropylene (whichleadstopolyethyleneandpolypropylene)

What’sanolefin?

(aka‘alkenes’forthoseofyouwhosufferedthrough organicchemistry)

Andbutadiene(whichleadstosyntheticrubber)

Whyissomuchmethanolusedworldwide?

Ans.Itisaveryversatileintermediatechemicalthatcan:

(1) bemadefromdifferentstartingmaterials,and

(2) beusedtomakeawidevarietyofproducts.

“In 2013, global methanol demand is 65 million metric tons driven in large part by the resurgence of the global housing market and increased demand for cleaner energy.”

ADIAnalytics, April 6,2015

ProposedTacomaPlant20213.4 7.3mtpa

(mtpa =milliontonsperyear)

Howismethanolmade?

Inputs

CarbonSourceWaterAirEnergy

Catalyst(notconsumed)

Outputs

MethanolHotwaterCombustionproductsWastewater

SpentcatalystImpurities

Intermediates

CarbonmonoxideCarbondioxideHydrogenSteam

‘Syn Gas’

Economicallyviablesourcesofcarbontomakemethanol

1. Coal

2. Naturalgas

N.B.Biomass,CO2capture,anddirectbiosynthesispossiblebutnotyetreadyforprimetime

Whycarbon sourcemattersPer1000gallonsofmethanolproduced

Coal Nat.GasInputs

TonsofCarbon 14.8 1.9

Outputs

Tons ofcarbondioxide 46 ~0forprocess+?forboilers

Poundsofsulfur 58 0.0004

Poundsofash 2,306 0

Yield 20% Near100%

Risksofextractionofoil,coal,andnaturalgas

Risksoftransportofoil,coal,andnaturalgas

Sourcesofelectricity

1. Onsitegenerationbyburningafractionofyourcarbonsource(coalornaturalgas)

2. Fromthegrid

Theenvironmentalimpactdependsonthesourceofpower

Twoseparatewaterinputs

1. Highpurityprocesswaterforthesteam– becomespartofthemethanol.About20%or3MGDatfullcapacity

2. Coolingwater– non-contactheatexchange.About80%or7MGDatfullcapacity.Mostassteam;somecooledwaterdischarged.

Thepotentialimpactdependsonthesourceeachwaterflowandtheextentofrecycling/reuse

Whatmightthisplantlooklike?*

*Mybestguessatthisstage

Step1.Naturalgasisdeliveredviaapipeline,thegasiscompressed,andsulfurisremoved

Thingstothinkabout.

Wheredidthegascomefrom?Howmuchmethaneleakedoutduringextractionandtransport?Howmuchpowerwillbeusedtocompressthegas?Whathappenstothesulfur?

Step2.Injectpureoxygentoproduce‘syn gas’(=carbondioxide,carbonmonoxideandhydrogen)

Thingstothinkabout

Wheredoestheoxygencomefrom?Fugitiveemissions?

Wheredoestheoxygencomefrom?

Airseparationunit

Liquify filteredairbycooling tolessthan-320F

Nitrogen(78%ofair)boilsat-320FArgon (0.9%ofair)boilsat-309Leavingpureliquidoxygen(whichboilsat-297F)behind

Thisrequireslots ofelectricity

[note:nitrogen gasmaybeusetoreduceriskof firesinotherpartsoftheplant]

Step3.Convert‘syn gas’tomethanol

• High temperature• Conversionhappensonsolidcatalyst

surfaces• Catalystareblendsofcopper, zinc,

aluminum&magnesium• Catalysttypicallylastseveralyearsandare

recycled

Source:JohnsonMattheyCatalysts.

Step4.Condensationandpurificationof‘rawmethanol“

• Containswater(fromcombustionofhydrogenandoxygenearlier)andanyotherimpurities/sideproducts

• Distillation’boilsoff’methanolat148Fandleavethewater(andotherstuff)behind.• Likelygoesthroughseveraldistillationcyclestoreachdesiredpurityoffinalmethanol

product• Processwater(andotherstuff)needtobetreated,eitherbyrecyclingbacktothesteam

generatororthroughtertiarytreatment

Distillationalsorequires‘non-contact’coolingwater

• thisdoesnotneedtobeascleanastheprocesswater• willnotpickupcatalystorimpuritiesfromnaturalgas• willbeevaporated,resultinginmostofthewatergoingintotheairandtheremainingbrine

tobetreated

Possible airemissions

• Combustionofnaturalgastomakesteamorelectricity

• Venting/pressurereliefduringstartup,routineoperations,maintenance,andupsets

• Volatilizationfromcoolingwater

• Volatilizationofproductmethanolduringstorage,pipingandloading

Onsitestorage

300,000metrictonsofmethanolproduct=2weeksproduction atfullcapacity

300,000metrictons=100milliongallonsofmethanolstoredonsite

NuStar EnergyinTacoma=15milliongallonsofpetroleumproducts

Shipping

Thingstoconsider

• 4-7ships/month• Typicalpotentialimpactsofshipoperations• Riskofspillsduringtransit

Isbuildingamethanolplant:Alastgaspployofthedyingfossilfuelsindustry?

Or

Aboldresponsetoclimatechangeusingsupercoolinnovation?

Productionofmethanolfromrenewableenergy

TheFuture?

• Methanoldirectlyfrombio-reactors• Methanolfrom‘captured’CO2• Buildtheinfrastructurearoundmethanolthenmovetofossil-

fuelfreecarbonsources• Methanolfuelcells:viablealternativetohydrogenfuelcells

GeorgeOlah RenewableMethanolPlant

2million litersperyearCompletedinendof2012Tripledproduction to4000tonnes/yearinApril2015Reclaim5.5thousand tonnes ofcarbondioxide/yearOnlyemission isoxygen

• Firstrenewablemethanolfuelstationforelectriccars.

• UsesVulcanol fromIcelandSvartsengi plantforelectricvehiclesfittedwithmethanolfuelcellrangeextendersmadebytheDanishcompandSerenergy

• Tankofmethanolextendsrangeofelectriccarby800km.‘liquidbattery’

REYKJAVIK, Iceland (July 5, 2015) - Chinese group Geely, the owner of Swedish carmaker Volvo, said Friday it had become a major shareholder in an Icelandic company that operates the world's first renewable methanol fuel plant.

Thankyou