Westinghouse Plasma Gasification for Power and Liquid Fuels

PROJECT UPDATES

Gasification & Syngas Technologies Council (GSTC)October 16-19, Vancouver, BC

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ABOUT US: ALTER NRG

Our Focus and What We Do

• Alter NRG develops and owns projects utilizingWestinghouse Plasma Corporation (WPC) technology

• 30+ years of research and development; ~$2 billioninvested in projects and technology

• Divert waste that is otherwise landfilled (includingMunicipal Solid Waste, Hazardous Waste, IndustrialWaste, Medical Waste, Mixed Biomass, Construction& Demolition Waste, etc.)

• Make syngas from multiple waste streams

• Provide large and small scale solutions – 25 tpd to2000 tpd

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ABOUT US: SUNSHINE KAIDI

• Builds, owns and operates aportfolio of power facilities

• $6 billion USD Companygenerating 1400MW

• Currently permitted to buildadditional 3000+ MW over next 5to 7 year period in China

• EPC capabilities - 200+ projects

• Proven expertise in hydro power,wind power, concentrated solar

• Key technology owner indesulfurization, waste watertreatment and gas clean-up

• FT technologies – iron slurry andcobalt catalyst

Biomass Power Plants

Fujian, China

Anhui (Ningguo), China

Anhui (Wangjiang), China

Hydro Power Plants

Yunnan, China

Nanbuhe, China

Bajiu, China

Wind Power Plants

Pinglu, ChinaHubei, China

Power Plant Installations

Mao Khe, Viet Nam

Quảng Ninh, Viet Nam

Hai Duong, Viet Nam

Henan, China

Henan, China

Shanxi, China

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KAIDI HAS RECENTLY ANNOUNCED A SIGNIFICANT PROJECT IN KEMI, FINLAND BIOMASS TO BIOFUELS FACILITY

Overview:

• The facility will produce 200,000 metric tons/year of biofuelsfrom waste biomass; 75% biodiesel and 25% bio-gasoline

• Established permitting, engineering and design; constructionwill start in 2017 and planned commercial operations in 2019

• Will utilize Alter NRG’s plasma gasification system andRentech’s Fischer-Tropsch (FT) liquids processes (both ownedby Kaidi)

Benefits:

• Investment of EUR 1 billion; tax revenue of EUR 200 million

• Will create 4,000 man-years of construction work; over 150permanent positions once operational

• Is part of EU's Renewable Energy Directive - 20% of energyconsumption from renewable sources by 2020

• Is part of Finland’s goal to reach target of 40% biofuels usageby 2030

Waste Biomass from sustainable sources

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ALTER NRG PLASMA GASIFICATION IS A WASTE REDUCTION TECHNOLOGY

250 Tons/dayFor sale to market

as aggregate

Sulphur Removed

Fine & Heavy

Particulate Matter

Removed

Coarse Particulate

MatterRemoved

Slag

20 Tons/dayRecycled into the

WPC Gasifier

20 Tons/daySludge to landfill

1 Ton/dayFor sale to

market

Fuel Replacement

50 MW Gross(~41 MW Net to

the grid)For sale to market

10,420Btu/day

(3.8 MMBtu/year

1000 Tons/day

Waste Feedstocks:Municipal, Hazardous,

Industrial, Medical, Mixed Biomass, Construction & Demolition, Coal, Tires,

etc.

800-1200 Barrels/day

For sale to market

Liquid Fuels

Power

1000 tpd Waste ProcessedUsing Alter NRG Gasifier

250 tpd Slagfor SaleTo the Market as Aggregate

40 tpd Waste for Disposal20 tpd Particulate Matter + 20 tpd Sludge for Landfill Disposal OR Recycled back into Alter NRG’s Gasifier

IN SUMMARY:

1650 0C

1000 0C

850 0C

• Tar free• 250 to 300

BTU/scf• 2:1 CO/H2

Plasma Torches

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PLASMA GASIFICATION IS AN EFFICIENT DIVERSION TECHNOLOGYWASTE DIVERSION RATE BY TREATMENT METHOD

Recycling/MRF IncinerationAdvanced Thermal

Technologies

Waste Diversion~20% to

40%~70% ~98%

Waste for Treatment or Landfilling ~80% ~30% ~2%

(Example @ 1000 tons per day waste handling/treatment)

• Recycling/MRF does not eliminate majority of waste• Incineration creates additional residual waste that requires landfill disposal• Advanced thermal technologies create minimal residual waste for

landfilling/disposal

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FROM AN ECONOMICS PERSPECTIVE - WHY PLASMA? A COST ADVANTAGE UTILIZING WPC SYNGAS WHEN CREATING POWER AND LIQUID FUELS

WESTINGHOUSE PLASMA GASIFICATION IS THE KEY ENABLING TECHNOLOGY

1000 TPD PLASMA GASIFICATION FACILITY UNIT OPERATING COST

(PER MMBTU SYNGAS PRODUCED, NET OF GATE FEE REVENUES)

• Assumptions:

• Capital per MMBtu for clean syngas is ~$2/MMBtu

• Compression to 400psig per MMBtu is ~$0.75/MMBtu

* Europe, UK, China, India, Japan, Korea, South America

NAT GAS / LNG $7.00 to $14.00 / MMBtu

OIL $40/bbl to $80/bbl

The VALUE PROPOSITION of GASIFYING 1000 tpd of WASTE• In a period of historically low fossil fuel prices, WPC syngas continues to be a cost effective

feedstock for the production of liquid fuels.

• Gate fees for waste feedstocks offset the cost of syngas production and provide a significantsource of revenue for a plasma gasification facility.

CLEANUP

Gate Fee $0/t $40/t $60/t $80/t $100/t

Cost of

Syngas

Production (Per MMBtu)

$6.0 $1.75 $0 ($2.40) ($4.75)

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THE TECHNOLOGY HAS BEEN IN COMMERCIAL OPERATION SINCE 2002

1989INDUSTRY–LEADING TECHNOLOGY

Plasma technology by others such as Alcan – over 500,000 hours of industrial use

2002WORLD’S 1ST COMMERCIAL SCALE PLASMA GASIFIER

Mihama Mikata, Japan -operational in 2002

2003WORLD’S LARGEST PLASMA GASIFIER FOR MUNICIPAL WASTE

Utashinai, Japan - operational in 2003; 200 tpd

2008WORLD’S LARGEST PLASMA HAZARDOUS WASTE FACILITY

Pune, India –operational in 2009

2009SECOND GENERATION ETHANOL FACILITY

Coskata Lighthouse, U.S. -commissioned in Sept. 2009

1983PLASMA FIRED CUPOLA APPLICATION

General Motors; Defiance, Ohio - commissioned in 1987Demo – 50 tpd

1995INCINERATOR ASH VITRIFICATION

Kinuura, Japan -commissioned in 1995

1999PLASMA GASIFICATION OF MUNICIPAL SOLID WASTE (MSW)

Hitachi Metals; Yoshi, Japan - commissioned in 1999

2016ENERGY FROM WASTE FACILITIES, Tees Valley, UK –2,000tpd MSW to combined cycle power Under construction,commissioning dates: TV1 –2017 and TV2 – 2018

2014DEMONSTRATION FACILITY INTEGRATED WITH EXISTING INCINERATOR

Shanghai, China – operational in Q1, 2014; 30 tpd

2012BIOMASS FACILITY

Kaidi, China –operational Q4 2012

2012MARC-3 TORCHES

Guanchuan, China – delivery Q1, 2013

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TEES VALLEY IS THE LARGEST ADVANCED PLASMA

GASIFICATION FACILITY IN THE WORLD

Overview:• 2,000 tpd of MSW via 2 separate

facilities• 100MW (gross combined for

both facilities) electrical baseload production

• Facility uses combined cyclepower block (via Solar Turbines)

• Tees Valley 1 and 2 are theWorld’s first combined cycle EFWfacilities

WPC Gasifier and Auxiliary Modules installed at TV1

TV1

TV2

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TEES VALLEY FACILITIES AND REORGANIZATION OF AIR PRODUCTS

Reorganization

• Under new leadership, Air Products reorganized its business units in late 2015 to createbetter focus for its core business – industrial gases

• Consequently Air Products has been selling off non-core business units

• Air Products announced that both the Energy from Waste business and the Performance Materials business were “non-core”

• Air Products sold the Performance Materials business in May 2016

Tees Valley Facilities

• Tees Valley 1 has been completed.

• Tees Valley 2 is approximately 75% complete.

• Tees Valley 1 commissioned and has undergone several start-up and trial runs

• Through these start-ups deficiencies identified/corrective actions put in place/initiated

• None of identified deficiencies are critical flaws with plasma gasification technology

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TEES VALLEY FACILITY – LEARNINGS TO DATE

Following a sale/disposition of the Tees Valley facilities by AirProducts, the remaining items to be addressed are in thefollowing areas:

• Oxygen Blown Operation

• Preparation and delivery conveyance of municipal waste to the gasifier

• Variability of waste quality and its impact on downstream equipment

• Feed-handling

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LEARNINGS

• Basic Facts– Oxygen blown gasification can lead to excessive, localized heat release, exceeding

design temperatures of materials (this is not unique to plasma)

• Design must include adequate cooling to avoid localized effects

• Operating philosophy and temperature monitoring must be robust

– Waste handling is challenging.

• MSW is highly variable in shape/size and pre-processing is required to move MSW reliably to a gasifier

• Lumps, metal objects, ropes, fibers can all lead to mechanical hang-ups

– Waste quality affects downstream operations.

• Since MSW is unpredictable in composition, downstream design must be flexible and robust.

• This includes pressure control, corrosion control, and the addition of an auxiliary fuel to ride out variations.

• Issues arising from these basic facts are addressable with experience, design and operating philosophy.

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OTHER KEY OPERATIONS - HAZARDOUS WASTE

Commercial operations:• In India (since 2008).• In China (since 2013).

Flexible operations:• Processed over 600+ hazardous waste

streams since 2008.• Syngas can be utilized for steam, power or

process fuel.

We have a turnkey modular facility:• Can be co-located with industrial facility• Compact facility footprint: ~2,000 m2

• Reduces project construction time lines• Versus incineration technologies, our by-

product is slag – not ash.• Slag has commercial uses (construction

aggregate, rock wool insulation, etc.)• High temperature gasification process also

does not create furans or dioxins.

SHANGHAI, CHINA - MEDICAL WASTE & FLY ASH, 30 TPD

PUNE, INDIA - HAZARDOUS WASTE, 78 TPD

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THE WRAP UP

• Plasma gasification has processing capabilities ranging from 25 to 1,000 ton per day in a single reactor

• Due to tipping fees of some feedstocks, plasma gasification produces zero/negative cost syngas

• Plasma gasification is a reduction/diversion solution with an ability to divert up to 98% of processedwaste away from landfills

• Plasma gasification takes multiple waste streams to create syngas production that can be converted to“higher value” end products

• The Tees Valley facility will validate large scale commercial operation for plasma gasification solutions

(OR)

ELECTRICITY50 MW (gross)

base load production

LIQUID FUELS~365,000 Bbls/yr

SYNGAS~3.5 Million MMBtu/yr

WASTE350,000 tpy

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THANK YOU

460, 227 – 11 Avenue S.W.

Calgary, Alberta

Canada T2R 1R9

Phone: (403) 806-3875

Fax: (403) 806-3721

www.alternrg.com