CDS GROUP Incorporating R-O 2 Bio Coal Technology

CDS GROUP Incorporating R-O 2 Bio Coal Technology Presentation

Presentation Overview n Technology and Patents n Plant Flow, Schemes and Processes n Bio. Coal Characteristics n Bio. Coal Plant – Photos of Build n Co-Firing with Bio. Coal n Plant Design and EPC

52 International Patents

Unique Features n The R-O 2 torrefaction technology is a patented method that uses dry SHS as the heating medium, to perform the drying and torrefaction processing n The dry SHS medium is uniquely created from the water fraction contained in the wet feedstock and is used at virtual atmospheric pressure n The R-O 2 technology system operates on patented recirculation principles, and adopts proprietary thermal recuperative techniques, an off-gas processing system and a patented mano-metric density seal at the systems input and exit points

Temperature Profile

Technology Key Benefits n n n n n Faster initial drying times than conventional systems. High drying / operating efficiencies. Low supplementary energy input requirements. Containment and use of exhaust emissions. Low internal drying velocities to prevent ‘fly-away’ pickup of light fractions product. Low abrasion / friction to product. Energy recovery options. Sterile product and condensate from the process. Inert atmosphere drying & processing conditions, eliminating potential of product combustion.

Independent Verification Independent Studies by the bodies listed below, have demonstrated that R-O 2 Technology drying and processing technologies have demonstrated: ü drying time reductions of up to 80%. CERAM Research

Best Practice Programme - Study Energy Efficiency Best Practice Programme (UK) Future Practice Final Report 58 by ETSU, Harwell, Didcot, OX 11 0 RA, acting on behalf of the DETR. Found: ü R-O 2 drying offers energy consumption savings over industry survey averages of between 60% and 85%.

Block Flow Diagram Superheated steam at atmospheric pressure is created and re-circulated over an indirect heater and through the feedstock, to dry and torrefy the material

Torrefaction Process Thermal Oxidizer Vapor (+odour) Purified Flue Gases / Recoverable energy source Energy (pyrolysis gas) Bio. CO 2 al Energy (heat) Shredding Fine s Drying Bio. CO 2 al Plant Energy (heat) Solid Fuel Furnace Cooling

Process Flow Sheet

Drying Phase n The patented drying technology operates by creating super heat steam (SHS) for its drying medium. This SHS is generated solely from the evaporating moisture contained within the biomass feedstock as it is dried n The creation of SHS displaces air/oxygen from the process and creates the inert “low level oxygen” atmosphere for high temperature drying 150ºC

Torrefaction Phase n Directly from the drying process, the woodchip is transferred into a continuous rotary torrefaction processor via airtight sealed conveyors n A mild thermal pyrolysis in a SHS atmosphere (240 - 280°C) converts the wood chip/biomass into biocoal n The biocoal is then “cooled” to below 130°C before discharge to atmosphere n Biocoal is ready for grinding, pulverising or densification

Thermal Recuperation and Offgas n The off-gas from the torrefaction process is sent to a thermal oxidisation system for destruction and cleaning before being exhausted to atmosphere free from VOCs n The oxidiser operates at around 750 – 800°C and the torrefaction gases are exposed to this heat source for a minimum of two seconds to effect complete destruction of the VOC’s and other organic chemicals [12] n The energy recovered from thermal oxidation of VOC’s should be used as an additional thermal source in both drying and torrefaction processes, thus reducing fuel (natural gas/oil) required to indirectly heat the recirculating drying and torrefaction gases.

Key Criteria n Capital cost less important than Operational cost n Safety n Efficiency n Up-time n Speed of repair/replacement n Scaleable and modular

R-O 2 Design Advantages n Energy optimization important (cost) n Equipment selection ¨ ¨ ¨ Efficient - Safe (explosion hazard) - Scalable Robust - Reliable - Modular Bankable - Up time is high - Guarantees n Low energy requirement in combination with energy recovery potential n High thermal process efficiency n Using super heat steam, a big advantage n Louvre drum design is an ideal option for fast, consistent, efficient, safe drying & thermal processing n Able to process larger particle sizes

Airless. TM Louvre Drum n Different size options n Same equipment type useable for all processing steps n Experience with different drum design technologies n Adaptation for specific conditions/requirements possible

Thermal Oxidisation n Post torrefaction VOC‘s gas thermal treatment technology n Proprietary equipment design n Energy Recovery using air, water, thermal fluid etc n Energy re-use in drying and thermal processing n Bag house for elimination of particulate emission n Maximum energy recovery/re-use

Biomass Boiler n Heat recovery using thermal fluid n Fuelled primarily by Biomass fines n Bag house filter n Classical grate stove

Emissions Management n Emissions ¨ ¨ n Odour, wood gases, acids, dust emissions (ash, soot) No contaminated water Measures taken ¨ All off gases, combustible gases and vapours from drying and torrefaction are sent to Thermal Oxidiser for complete destruction/clean-up ¨ Bag houses in the effluents from Thermal Oxidiser and from boiler Emissions will observe Local Standards

Wood Reaction Characteristics Torrefaction of wood in an inert atmosphere: ò Up to 160°C wood mainly loses its water ò Between 180 and 270°C wood gives off additional moisture and begins to darken and brown, giving off cellulose, carbon dioxide and wood acids. Wood at this stage loses its hygroscopic properties and becomes more friable than untreated wood but less friable than charcoal ò Torrefaction occurs between 240 and 280°C and wood at this stage in the process acquires the properties that are specific to Bio. Coal

Bio. Coal Characteristics n Has heating value close to steam coal with LHV of 20 to 22 MJ/kg n Is CARBON NEUTRAL as it has no net release of CO 2 n Is consistent and homogenous. Different types of feedstocks have similar physical and chemical properties after torrefaction, which is important for process optimization and control n Can be pelletised / densified at costs much lower than even sawdust for distant shipments n Is densifiable to sub-bituminous coal level (16 -17 GJ/m 3) - higher than bio-pellets (~10 GJ/m 3) n Is friable and has greatly improved grinding properties, when compared to raw biomass or wood pellets Becomes hyrdophobic to atmosphere moisture re-absorbtion (ideal for external stock piling) n

Bio. Coal (Woodchips) Analysis Sample Ref: 21576 Lab Ref: Torrefied Wood TES Bretby Moisture % 2. 1 Fixed Carbon %* 21. 3 Sulphur % 0. 12 Volatile Matter % 73. 5 Gross Calorific Value k. J/kg 17945 Calorific Value k. J/kg (DAF)* 22350 Gross Calorific Value Btu/lb 9609 Ash % 0. 7 Volatile Matter % (DAF)* 76. 1 Test Results calculated to 'As Received' moisture basis. * calculated using determined values

Bio. Coal (Pellets) Analysis RWE 10/5/2008 Results Basis Method Reference Units Total As As Dry Received Analysed Dry Ash Free % 4. 0 - - - Free % 0. 89 - - - Inherent % - 3. 16 - - cal. P/01 Analysis % - 3. 15 - - cal. P/02 Ash % 0. 6 - Volatile Matter % 69. 8 70. 4 72. 7 73. 2 cal. P/26 Fixed Carbon % 25. 6 25. 8 26. 7 26. 8 cal. P/01 Total Sulphur % 0. 04 cal. P/06 Chlorine % <0. 01 Carbon % 54. 5 55. 0 56. 8 57. 1 Hydrogen % 4. 62 4. 66 4. 81 4. 84 cal. P/25 Hydrogen (calc. ) % 5. 31 5. 36 5. 53 5. 57 astm. D 5373 Nitrogen % 0. 04 Gross k. J/kg 21098 21290 21982 22117 Net(H calc. ) k. J/kg 19866 - - - Net(H det. ) k. J/kg 20013 - - - Energy MWh/t 5. 560 - - - cal. P/01 cpl. P/05 cal. P/03 cal. P/04 astm. D 5373 Moisture Proximate Ultimate cal. P/07 cal. P/25 Calorific Value cal. P/25 -

Bio. Coal Pellets n address the drawbacks encountered with the durability and biological degradation of biopellets (storage of biocoal pellets is therefore simplified) n can be applied to wide variety of biomass (sawdust, willow, larch, verge grass, wood, energy crops, straw etc) yielding similar qualities, thus increasing the feedstock range for pellet production n offer a solution to low volumetric energy density of torrefied biomass [2]

Bio. Coal Pellets vs Wood Pellets Properties p-Bio. Coal p-Wood Density (kg/m 3) 750 - 850 500 - 650 Net Calorific Value (MJ/kg) 22 17 Energy Density (GJ/m 3) 18. 5 10 Pellet Strength Very Good Hydroscopic Nature Hydrophobic Water up-take Biological Degradation Unlikely Very Likely

Bio. Coal Pellets Production Operational Benefits: n the energy consumption of the biocoal pelleting process is lower than the conventional pelletisation, due to lower energy consumption used for material sizing and pelletisation (despite increased energy consumption used for torrefaction) n the desired plant production capacity can be established with much smaller equipment [3] n The torrefaction gases can be recovered and used for drying, instead of using fossil fuel as utility fuel

Co-Firing with Bio. Coal

Co-Firing at Essent n 30 tonnes of torrefied Bio. Coal was manufactured using the R-O 2 technology and was test co-fired with coal at EPZ's 400 MWe PC-plant unit BS 12, located at Borssele, The Netherlands, operated by Essent Energie (for co-pulverization and co-firing testing) n At the plant, Bio. Coal was fed into a single coal pulverizer, a CE model with conical rollers and rotating classifier, with 100 MWe capacity n Biocoal was mixed with coal up to 9% (energy basis) and injected to the boilers

n There is a capacity for increasing the co-firing ratio, as the pulverizer’s limits were not reached [7] n That ‘the significance of torrefied biofuels is that it will allow a much wider slate of biomasses (both woody and otherwise) to be conditioned for direct co-pulverizing and cofiring’ [7] Essent Energie, Borssele, The Netherlands

Institute for Energy findings n By far the most economical option for co-firing of coal and biomass is to co-mix the fuel stocks prior to grinding and injection into the fuel combustors at maximum ratios n This avoids the need to retro-fit dedicated biomass injectors to the plant n By contrast, the tough, fibrous nature and higher MC of raw biomass means that the biomass proportion is limited, typically to <7% by weight Institute for Energy, Petten (the Netherlands)

Institute for Energy findings continued n Attempts to increase the Bio. Mass proportion beyond this limit typically lead to problems: ¨ insufficient throughput ¨ overheating and failure of the grinding mills ¨ clogging of pneumatic fuel transfer systems ¨ an unacceptable proportion of over-size particles reaching the injectors, and ¨ unpredictable thermal transients in the combustion chamber [1] Institute for Energy, Petten (the Netherlands)

Institute for Energy findings continued n Torreffied Biocoal however: ¨ destroys the fibrous structure of the raw biomass ¨ reduces the MC and ¨ provides a narrow range of calorific content thereby allowing a much greater biomass proportion to be combusted in existing installations [1] Institute for Energy, Petten (the Netherlands)

Torrefaction and Grindability n ‘…it is concluded that the grindability of raw biomass can be improved [using torrefaction] to the level of coal using the temperature range of 260 – 2800 C…’ Ref: Torrefaction for biomass co-firing in existing coal fired power stations ‘P. C. A. Bergman, et el July 2005

Plant Build

Proprietary Louvered Drum

Pre-Conditioner Build

Torrefier Build

Control System