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Emissions Legislation Potential Impact of the Medium Combustion Plant Directive 1 SAACKE Presentation All rights reserved by SAACKE Combustion Services Ltd, UK and SAACKE GmbH, Bremen

The formation of NOx Acid rain During the combustion of hydrocarbon fuels, NOx Nitrogen oxides are formed due to the presence of nitrogen both within the combustion air and that organically bound within the fuel itself. NOx chemically NO (Nitric Oxide) + NO2 (Nitrogen Dioxide), with NO being by far the larger component is, along with SOx (Sulphur Oxides) - the main contributor to Acid Rain. For this reason the LCPD was introduced and legislation is now being extended to Medium Combustion Plant. Choice of fuel is of major consideration; the air requirements for combustion are approximately equal for all fuels but the natural or organically bound nitrogen in the fuel varies from virtually zero in Natural gas, to a very small amount in Gas Oil, up to relatively large amounts in Heavy Fuel Oil and Coal. Page 2

NOx formation Types of formation mechanisms We differentiate between three types of nitrogen oxides according to their source and their formation mechanism: Thermal NO Created by relatively high temperatures Fuel NO Nitrogen content bound in the fuel Prompt NO Hydrocarbon radicals - (NOx formation can exceed that produced from direct oxidation of nitrogen molecules associated with by low temps, fuel rich conditions with short residence times) Page 3

Medium Combustion Plant Directive (EU) 2015/2193 25 th November 2015 on the limitation of emissions of certain pollutants into the air from medium combustion plants Article 1 Subject matter This Directive lays down rules to control emissions of sulphur dioxide (SO2), nitrogen oxides (NO2) and dust into the air from medium combustion plants, and thereby reduce emissions to air and the potential risks to human health and the environment from such emissions. Article 2 Scope This Directive shall apply to combustion plants with a rated thermal input equal to or greater than 1 MW and less than 50 MW ( medium combustion plants ), irrespective of the type of fuel they use. Page 4

MCPD Background Background and Scope Proposal originally published by the EU Commission in December 2013; Forms part of new Clean Air Package and will help Member States to reduce their emissions and meet revised ceilings being negotiated under the NEC Directive; Plugs the gap between plants covered by the IED and smaller appliances covered by Eco-design; Emission Limit Values (ELV s) for NOx, SOx and dust; Must also measure and report CO, (currently no limit values set); Exemptions many listed including direct heating and drying, vehicles/ships/aircraft, offshore GT s and gas and diesel engines, crematoria, R&D and testing; Aggregation of new plant only; Low air quality zones. Page 5

MCPD Scope Estimated 30,000? plants in the UK to comply with ELVs; Estimated <75% in range 1-5MW; Types of plant: Boilers (80%) Engines and gas turbines 6

MCPD Timeline Directive key dates 17 Dec 2017 Transposition completed in Member States 20 Dec 2018 01/01/2024 New plant must be registered, test emissions and comply with Emission Limit Values (ELV s) Existing plant above 5MW must be registered and test emissions within four months of registration 01/01/2025 Existing plant above 5MW must comply with ELV s 01/01/2029 Existing plant 5MW and below must be registered and test emissions within four months of registration 01/01/2030 Existing plant 5MW and below must comply with ELV s 7

MCPD Emission Limit Values at a temperature of 273,15 K, a pressure of 101,3 kpa and at a standardised O2 content of 6 % for solid fuels, 3 % for plants other than engines and gas turbines using liquid and gaseous fuels, and 15 % for engines and gas turbines. ELVs differ for new and existing plant, different combinations of plant size, plant type and fuel type: Plant size Plant type Fuel type 1-5MW Engines Solid biomass 5-50MW Turbines Other solid fuels Other Gas Oil Some 5-20MW Other liquid fuels Natural gas Other gaseous fuels 8

MCPD Emission limit values Existing burner/boilers 1-5MW mg/nm 3 FUEL NOx SO 2 DUST NATURAL GAS 250 GAS OIL 200 OTHER GASES 250 200 400 for low cv coke ovens OTHER LIQUID FUELS 650 350 50 SOLID BIOMASS 650 200 300 for straw Does not apply for wood 50 OTHER SOLID FUELS 650 1100 50 9

MCPD Emission limit values Existing burner/boilers 5-50MW mg/nm 3 FUEL NOx SO 2 DUST NATURAL GAS 200 GAS OIL 200 OTHER GASES 250 35 400 for low cv coke ovens 200 for low cv blast furnaces 170 for biogas OTHER LIQUID FUELS 650 350 850 for HFO 5-20MW to 1/1/30 30 SOLID BIOMASS 650 200 300 for straw Does not apply for wood 30 OTHER SOLID FUELS 650 400 1100 for 5-20MW 30 50 for 5-20MW 10

MCPD Emission limit values Existing engines and turbines 1-50MW mg/nm 3 FUEL NOx SO 2 DUST NATURAL GAS ENGINES 190 380 if dual fuel in gas mode NATURAL GAS TURBINES ABOVE 70% LOAD 150 190 GAS OIL ENGINES GAS OIL TURBINES ABOVE 70% LOAD OTHER GASES IN ENGINES 250 for 1-5MW 1850 if built before 18/5/06 1850 if dual fuel in liquid mode 200 190 380 if dual fuel in gas mode 15 60 for biogas 130 for low cv coke ovens 65 for low cv blast furnaces OTHER GASES IN TURBINES ABOVE 70% LOAD OTHER LIQUID FUELS IN ENGINES OTHER LIQUID FUELS IN TURBINES ABOVE 70% LOAD 200 15 190 250 for 1-5MW 225 for 5-20MW 1850 if built before 18/5/06 1850 if dual fuel in liquid mode 120 200 120 10 20 for 1-20MW 10 20 for 1-20MW 11

MCPD Emission limit values New burners/boilers 1-50MW mg/nm 3 FUEL NOx SO 2 DUST NATURAL GAS 100 GAS OIL 200 OTHER GASES 200 OTHER LIQUID FUELS SOLID BIOMASS OTHER SOLID FUELS 300 See SIS/MIS exception 300 500 for 1-5MW 300 500 for 1-5MW 35 100 for biogas 400 for low cv coke ovens 200 for low cv blast furnaces 350 See SIS/MIS exception 200 Does not apply for wood 400 500 for 1-5MW 20 50 for 1-5MW 20 50 for 1-5MW 30 for 5-20MW 20 50 for 1-5MW 30 for 5-20MW 12

MCPD Emission limit values New engines and turbines 1-50MW mg/nm 3 FUEL NOx SO 2 DUST NATURAL GAS ENGINES NATURAL GAS TURBINES ABOVE 70% LOAD GAS OIL ENGINES GAS OIL TURBINES ABOVE 70% LOAD 95 190 if dual fuel in gas mode 50 190 225 if dual fuel in liquid mode OTHER GASES IN ENGINES 190 OTHER GASES IN TURBINES ABOVE 70% LOAD OTHER LIQUID FUELS IN ENGINES OTHER LIQUID FUELS IN TURBINES ABOVE 70% LOAD 75 75 190 225 for 1-20MW <1200rpm 225 if dual fuel in liquid mode 75 See SIS/MIS exception 15 40 for biogas 15 40 for biogas 120 See SIS/MIS exception 120 See SIS/MIS exception Note see special exemptions for low hours (500 1500) and SIS/MIS in all engine NOx figures. 10 20 for 1-20MW 10 20 for 1-20MW See SIS/MIS exception 13

MCPD Domestic legislation Current position Defra have transposed the Directive in England and Wales via changes to the Environmental Permitting Regulations (EPR) - The Environmental Permitting (England and Wales) (Amendment) Regulations 2018 (UK SI 2018/110) Scotland and Northern Ireland have confirmed that they will lay their own legislation Defra will work closely with the Devolved Administrations during transposition to promote consistency Page 14

MCPD Main obligations Plant Operators Register/ obtain permit for plant as required and update as required; Ensure plant meets ELV s and monitor regularly; Take measures to ensure non compliance kept to a minimum; Record information regarding operation of plant; Keep information proving the effective continuous operation of secondary abatement if fitted; Report changes or upgrades to plant which would affect applicable ELV s; Assist regulators during inspections to ensure compliance with the MCPD; Keep periods of start up or shut down periods as short as possible. 15

MCPD Main obligations Regulators Judge whether multiple plants on an installation should be aggregated. Manage system for registration and/or permitting (including updates). Deal effectively with non compliance. Make available to the public a register with information on combustion plant (including via the web). Report data to Defra as required and to enable meeting reporting requirements to the Commission. Assess need to apply stricter ELV s in zones or part of zones not compliant with AQ limits. Report MCPD emissions in 2021, 2026 and 2031. 16

MCPD Flexibilities for Member States Nomination of Competent Authority Establishing system for registration and/or permitting. How to apply optional exemptions/flexibilities in a pragmatic way. Data management: public information and reporting to the Commission. Establishing systems to ensure compliance. Dealing with non-compliance. Set requirements for emission monitoring. The following slides are thoughts discussed at stakeholder workshops. They do not currently represent Government policy. 17

MCPD Uncertainties 1. Member States are required to nominate the Competent Authority, responsible for enforcement - EA responsible for all enforcement 2. System for registration/permitting Possible approaches: Very simple procedure for registration of low risk plant and more involved for complex plant/installations. For plant already part of a permit, the conditions will simply be amended to reflect MCPD. Spreading out registration of existing plant to avoid very large number of registration and emissions monitoring at key deadlines. 18

MCPD Uncertainties 3. It is Government policy to apply optional exemptions and flexibilities but will need to assess their impacts. 4. Data management: public information and reporting - Directive requires the competent authority to establish a register of information about each plant. Possible approaches: Centralised database Access and updating Costs of administration 5. Member States are required to set up an effective system, based on either environmental inspections or other measures, to check compliance. Possible approaches: Risk based approach largely based around emission tests for low risk plant Supplemented with audits and inspections where necessary Financial incentives to promote early compliance 19

MCPD Uncertainties 6. Dealing with non-compliance: Rules are to be set for the type, frequency and format of noncompliance information to be provided by operators. Possible approaches: Reporting not required if compliance restored within certain deadline; after that need to report and agree plan with Competent Authority. Operators must report data to demonstrate compliance has been restored. 20

MCPD Uncertainties 7. Need to set requirements for monitoring, based on methods enabling reliable, representative and comparable results. Possible approaches: Suggestions for mandatory MCERTS accreditation but considering if there are alternatives that could reduce burden to operators risk based approach; Suggestion of an MCERTS-Light system allowing reputable service organisations to continue with routine testing (+ particulates); 8. Costs to Plant Operator: Annual administration charge One off permitting/registration charge *Minority of higher risk plants Message polluter pays! 21

MCPD Headline issues not yet resolved How are all owner/operators informed and all the plants found? Complexity of registration; Registering and reporting through a central portal; Challenges to implementing an effective reporting system; ELV s realistic or unworkable? Non-compliance and penalties? Exemptions and flexibilities (500 hour running etc.)? Definitions to be clarified (e.g. when is an existing plant a new plant?); Cold weather event; Aggregation rules; Mobile plant; Monitoring standards to be developed? Who produces test results is this MCERTS, or is that too expensive for the risks? 22

Recommendations Future proof your plant Review policy to burn high sulphur content liquid or solid fuels and plan to change to another fuel; Obtain frequent fuel specifications from your fuel provider; Obtain emission test data to determine if existing plant is likely to be compliant; Consider modernisation/optimisation of existing burner & controls and fit energy saving equipment; Consider emission optimisation and testing by combustion equipment manufacturer; Ensure all emission tests use approved calibrated instruments and retain records; Check accessibility of sampling points to comply with MCPD; Check MCPD compliance prior to ordering new burners, boilers, turbines or engines. Page 23

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