U.S. Chamber of Commerce Emerging Technologies Committee Meeting Air Pollution Control William H. Sun Fuel Tech, Inc. Batavia, IL Washington, D.C. October, 11, 2007
Technology Company Innovative Approaches to Enable Clean Efficient Energy Air Pollution Reduction Slag and Corrosion Reduction Advanced Engineering NASDAQ: FTEK
Fuel Tech s Global Activities Office Locations: Batavia, IL; Stamford, CT; Milan, Italy; Beijing, China Countries where Fuel Tech does business: USA, Belgium, Canada, China, Columbia, Czech Republic, Denmark, Dominican Republic, Ecuador, France, Germany, Italy, Jamaica, Mexico, Poland, Portugal, Puerto Rico, South Korea, Spain, Taiwan, Turkey, United Kingdom, Venezuela
Fuel Tech Business Segments Specialty chemical business: FUEL CHEM technology markets fuel treatment chemicals and processes that reduce slag formation, corrosion and opacity problems in boilers, furnaces and incinerators. Improves boiler operating efficiency, increased boiler output. APC business: NOxOUT SNCR, Cascade - pollution control technologies to reduced NOx. Ultra process safe urea to ammonia conversion process for SCR.
Fuel Tech Technologies - Typical Power Plant Decomposition Chamber SO3, SO2, Hg, CO2??? APC Technologies: NOx Reduction: SNCR = Selective Non-Catalytic Reduction CASCADE = SNCR + one layer of catalyst ULTRA safe urea to ammonia conversion process Fuel Chem Technologies: TIFI Targeted In-furnace Injection of specialty chemicals for slagging, corrosion, opacity control
Furnace Before TIFI Treatment Slag clinker that fell to the bottom of the boiler
Furnace After TIFI Treatment With FUEL CHEM: 12 hours of off-line cleaning Without FUEL CHEM: 6 days of off-line cleaning (i.e., explosive deslagging)
Upper Furnace Slag Removal Initial Chemical Feed 7/1/2004 9:30 a.m. 7/1/2004 5:30 p.m. 7/2/2004 9:30 a.m.
SCR SO3 Blue Plume Heavy Blue Plume from Sulfuric Acid (H2SO4) Mist Opacity Excursions Acid Fallout Air Preheater Fouled Nearly Invisible Opacity Reduced Clean Air Preheater Efficiency Improved
Successful TIFI Application on PRB CoalFired Utility Boiler Western Farmers Electrical Cooperative: Hugo Station Unit (475 MW Wall-Fired Boiler) Cleaning time reduced by 10+ days per year 20MW Recovery (Daily Average) Measured NOx Reduction Improvement in Overall Operating Efficiency Successful Burn of Higher Sodium, Lower-Grade Coals
FUEL CHEM Benefits Slag Problem Reduction Eliminate outages and derates due to slag (5% typical) Shorten planned outages (10+ days/yr.) Efficiency Improvement (typically ~ 1-3%) Lower Fuel Costs/KWH Lower CO2 emissions/kwh Lower Emissions Overall/KWH NOx Emission Reduction (5-10% if no SCR) SO3 Emission Reduction Enhance Mercury Reduction with Activated Carbon Injection Maintenance Cost Reduction Accident Reduction Typical Annual ROI = 7:1
Fuel Tech Technologies - Typical Power Plant Decomposition Chamber SO3, SO2, Hg, CO2??? APC Technologies: Fuel Chem Technologies: NOx Reduction: SNCR = Selective Non-Catalytic Reduction CASCADE = SNCR + one layer of catalyst ULTRA safe urea to ammonia conversion process TIFI Targeted In-furnace Injection of specialty chemicals for slagging, corrosion, opacity control
APC - NOx Reduction Technologies If the utility does not need an SCR: If the utility chooses an SCR ($250+/KW Capital Costs) 85-90% Reduction NOxOUT SNCR ($5-20/KW) 25-40% Reduction NOxOUT SNCR/RRI ($7-22/KW) 35-55% Reduction NOxOUT CASCADE ($30-60/KW) 65-80% Reduction NOxOUT ULTRA ($2-3 mil) Safety & Environmental Benefits Over 450 Installations Worldwide
Fuel Tech Technologies - Typical Power Plant Decomposition Chamber SO3, SO2, Hg, CO2??? APC Technologies: Fuel Chem Technologies: NOx Reduction: SNCR = Selective Non-Catalytic Reduction CASCADE = SNCR + one layer of catalyst ULTRA safe urea to ammonia conversion process TIFI Targeted In-furnace Injection of specialty chemicals for slagging, corrosion, opacity control
Computational Fluid Dynamics Modeling
NOxOUT Chemical Kinetics Model Models detailed chemical reaction between urea and NOx 30 species and 90 reactions Predicts NOx reduction and NH3 slip Urea NH3 + HNCO NH2 + CO HNCO + H HNCO + OH NCO + H2O NH3 + OH NH2 + H2O N2 + H2O NH2 + NO NCO + NO N2 + CO2 N2 FUEL TECH Technology for a renewed environment TM TM
Zone 1 Injection Low to Mid Load
Fuel Tech Technologies - Typical Power Plant Decomposition Chamber SO3, SO2, Hg, CO2??? APC Technologies: Fuel Chem Technologies: NOx Reduction: SNCR = Selective Non-Catalytic Reduction CASCADE = SNCR + one layer of catalyst ULTRA safe urea to ammonia conversion process TIFI Targeted In-furnace Injection of specialty chemicals for slagging, corrosion, opacity control
Bailly Unit 8 360 MW Coal Fired Boiler 1250 lb/hr NH3 Demand Ultra Heating Options: Solar Power Biodiesel, ethanol, etc. Flue gas Preheated combustion air
Fuel Tech Technologies - Typical Power Plant Decomposition Chamber SO3, SO2, Hg, CO2??? APC Technologies: Fuel Chem Technologies: NOx Reduction: SNCR = Selective Non-Catalytic Reduction CASCADE = SNCR + one layer of catalyst ULTRA safe urea to ammonia conversion process TIFI Targeted In-furnace Injection of specialty chemicals for slagging, corrosion, opacity control
Thank you!!!
Bailly 7 175 MW Coal Fired Boiler 720 lb/hr NH3 Demand 300 TPD MSW, France 40 lb/hr NH3 Demand
Fuel Tech Advantages Cost-Effective Patented Technologies APC (Capital Projects) NOxOUT Selective Non-Catalytic Reduction (SNCR) NOxOUT CASCADE NOxOUT ULTRA FUEL CHEM TIFI Targeted In-Furnace Injection Targeted Duct Injection (TDI) Targeted Corrosion Inhibition (TCI) Annuity Revenue Stream High Performance Team 20% of Employees Hold Advanced Degrees Experienced Leadership Team Market Acceptance/Momentum Strong Balance Sheet Huge Untapped Global Market Opportunity
Current & Future Air Regulatory Drivers Air Regulation Expansion SIP= State Implementation Plan CAIR= Clean Air Interstate Rule
Key International Markets (cont.) China (APC & FUEL CHEM) 350,000 MWs Fossil 225,000 MWs New Coal by 2010 Major smog problem - Olympics 2 major contracts representing 6 units India (APC & FUEL CHEM) 67,000 MWs of Coal (Sub-Lignite) Major slag/smog problems 6,000 MWs of new coal by 2012 Initial meetings
Key International Markets (cont.) India (FUEL CHEM & APC) Europe (APC & FUEL CHEM) 67,000 MWs of Coal (Sub-Lignite) Major slag/smog problems, but CO2 is immediate concern 6,000 MWs of new coal by 2012 Initial meetings held Electric Utilities Municipal Solid Waste Incinerators Cement kilns Projects on over 100 units Mexico (FUEL CHEM) 17,000 MWs of heavy fuel oil owned by the Mexican national utility, CFE Opacity (SO3) Issues; Slag Formation First Commercial Order on 3 units now in operation
Fuel Tech Advantages Cost-Effective Patented Technologies NOx Reduction Technologies FUEL CHEM TIFI Targeted In-Furnace Injection NOxOUT Selective Non-Catalytic Reduction (SNCR) NOxOUT SNCR/Rich Reagent Injection (RRI) NOxOUT CASCADE NOx Reduction at All Load Ranges NOxOUT ULTRA Safe Ammonia Supply for SCR Dramatic Reduction of Slag Related Issues Accidents More Use of Higher Slagging Coals Outages/Derates Clinker Grinder Maintenance Dramatic Reduction of SO3 Problems Eliminates Blue Plume Reduces Air-Heater Fouling/Corrosion Improves Efficiency Reduced Fuel Use & Emissions High Performance Team 20% of Employees Hold Advanced Degrees Experienced Leadership Team Strong Balance Sheet We Stand Behind Our Work
FUEL CHEM Market Dynamics & Economics Domestic Coal Used to generate greater than 50% of electricity Powder River Basin (PRB) PRB comprises greater than 40% of the coal burned PRB coal is typically higher in slag-forming constituents, e.g. sodium PRB coal is currently significantly less expensive than higher-polluting and higherbtu Eastern coals on an equalized basis In excess of 400 US utility units burning Western coal Illinois Basin Coal High BTU; lower transportation costs High sulfur with slag forming constituents e.g. iron SO2 abatement installations (scrubbers) allow utilities to burn this coal Other Oil, Municipal Solid Waste, Pulp and Paper Global High slag coal (e.g. India) High slag oil (e.g. Mexico)
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