Best Available RetrofitTechnologiesOverview of RetrofitTechnologies for #1Power Boiler & #2 CoalBoilerDomtar Industries Inc.Ashdown Mill10/09/062001 Pollutants10/09/062002 Pollutants10/09/062003 Pollutants10/09/06#1 Power Boiler NOx“ADEQ agrees to allow Domtar to use the presumptive BART limits as set forthin the July 6, 2005 Federal Register(FR 39131 – 39136) as BART controls.”– Mike Bates, Chief of AirDi i i#1 Power Boiler NOx0.4270.210.3900.050.10.150.20.250.30.350.40.451

LB/MMBTU#1 PB Current NOx LimitCurrent Average NOxEmissionsBART Presumptive10/09/06#2 Power Boiler NOx# 2 Power Boiler NOx0.70.4540.3900.10.20.30.40.50.60.70.81

LB/MMBTU#2 PB Current NOx LimitCurrent Average NOxEmissionsBART Presumptive10/09/06NOx on #2 PB-2000200400600800100012001400160000.20.40.60.811.2LB/M M BTU

H o u rsNOx 2001NOx 2002NOx 2003NOx 2004NOx 2005NOx 2006BART PresumptiveCurrent LimitHistogram for NOx on #2PB10/09/06#2 Power Boiler SO2#2 Power Boiler SO21.20.8287031210.1500.20.40.60.811.21.41

LB/MMBTUCurrent SO2 LimitCurrent Average SO2BART Presumptive Limit10/09/06Histogram for SO2 on #2PBSO2 for #2 PB-10001002003004005006007000 0.5 11.5 22.5LB/MMBTU

Hours2001 SO22002 SO22003 SO22004 SO22005 SO22006 SO2Current SO2 LimitBART Presumptive Limit10/09/06PM concerning BART“ ADEQ agrees Domtar may use the MACTcontrol as their BART control measure.”– Mike Bates,Chief of Air Division10/09/06BART Engineering AnalysisGuidelinesStep 1 – Identify all available retrofit controltechnologiesStep 2 – Eliminate technically infeasible optionsStep 3 – Evaluate control effectiveness of remainingcontrol technologiesStep 4 – Evaluate impacts and document resultsStep 5 – Evaluate visibility impacts10/09/06Step 1 - Available Control OptionsSNCRSCRLow NOx BurnersOver-fire Air / Flue Gas Recycle ComboMethane de-NOxNOxOut (Hybrid of SNCR & SCR)Fuel Switching / Blending10/09/06Step 2 - Technically FeasibleControl OptionsSNCRSCRLow NOx BurnersOver-fire Air / Flue Gas Recycle ComboMethane de-NOxNOxOut (Hybrid of SNCR & SCR)Fuel Switching / Blending10/09/06Steps 3, 4 & 5 - Trinity ModelingModelRun% ControlsAshdownPMspeciationADEQSpec.AP-42Spec.DaysoverBARTLimitDeltaDeciviewADEQrun#1 ê 1.671 #2#1321.63290% PM, SO2 on #1,Normal on #2#2 #1 29 1.51390% PM on #1,Normal on #2#1 & #233 1.63490% PM. SO2 on #1,Normal on #2#1 & #233 1.63590% PM, 50% NOxon #1 50% Nox on #2#1 & #221 1.09690% PM on #1,Normal on #2#1 ä 1.49790% PM, 50% NOXon #1, 50% on #2#1 Ù 0.94890% PM 50% NOx on#1, 70% NOx andBART SO2Presumptive#1  0.69a90% PM on #1, ZeroEmissions on #2#10 0.419bZero emissions on#1, Normal on #2#220 1.131090% PM 30% NOx on#1, 30% NOx on #2#1 Ý 1.1610/09/06Trinity Modeling(SO2 for #1 Power Boiler)Runs 3 & 433 33051015202530351 2No Change in SO2 Contribution

Days over BART LimitRuns 3 & 4ModelRun%ControlAshdownPMspeciationDaysoverBARTLimitDeltaDeciview390%PM on#1,Normalon #2#1 é 1.63490%PM &SO2on #1,Normalon #2#1 é 1.6310/09/06Trinity Modeling(NOx for #1 Power Boiler)Runs 6,10,7282117051015202530NOx at 0% 30% 50%

Days Over BART LimitRuns 6,10,7ModelRun%ControlADEQSpec.DaysoverBARTLimitDeltaDeciview690%PM on#1,Normalon #2#1 ä 1.49790%PM,50%NOXon #1,50% on#2#1 Ù 0.941090%PM30%NOx on#1,30%NOx on#2#1 Ý 1.1610/09/06Trinity Modeling(NOx for #2 Power Boiler)NOx on #2 PB run 11 & 1205101520253090% PM on #1, 30%NOx on #2 90% PM on #1, 50% NOx on #2Run #

Days over BART limitNOx on #2 PB run 11 & 1210/09/06#1 PB VariablesFor PM, WESP = MACT = BARTRuns 3 & 433330510152025303590% PM on #1, Normal on #2 90% PM. SO2 on #1, Normalon #2No Change in SO2 Contribution

Days over BART LimitRuns 6,10,72 82 11 7051 01 52 02 53 0C omposite NO xat 0%30% 50%

Days Over BART Limit10/09/06#2 PB VariablesFor PM, MACT = BARTFor SO2, Wet Scrubber = BACT = BARTNOx on #2 PB run 11 & 12242105101520253090% PM on #1, 30%NOx on#290% PM on #1, 50% NOx on#2Run Conditions

Days over BART limit10/09/06Trinity Modeling(Highest Control Scenario)Runs 6,7,828172051015202530NOx at normal50% NOx control on each boilerHeavy Controls

Days over BART LimitRuns 6,7,8ModelRun% ControlADEQSpec.DaysoverBARTLimitDeltaDeciview690% PMon #1,Normalon #2#1 ä 1.49790% PM,50% NOXon #1,50% on#2#1 Ù 0.94890% PM50% NOxon #1,70% NOxandBARTSO2Presumptive#1  0.610/09/06BART Determination Activities –(Presented to ADEQ on Oct 12th)Focus is on NOx for both Power BoilersNo. 1 PB SO2 emissions are low - no controlsare cost effectiveNo. 2 PB SO2 controls (i.e., wet scrubber) arecurrently BACTFor both Power Boilers PM, MACT = BART10/09/06BART Modeling ProtocolADEQ Modeling Protocol AvailabilityValidation of Model Assumptions (i.e. PMSpeciation)Defined Target for Visibility Improvement10/09/06Data Quality ConcernsValidity of vendor estimated % reduction ofvarious control optionsAsking $50 – 80K per boiler and time to perform detailedstudy of our processEmission data – variability of some data isunknown (stack test, AP-42 factor...)This then becomes a permitted limit we must meet10/09/06BART Reduction CreditFuel Mix OptimizationEnergy Conservation Efforts10/09/06Cost estimates for #1 PBDirectEquipmentCostIndirectCost *TotalInstalledCostOperating Cost(at max load forone hour)** ReductionCurrentNOx Vendor ResourcesMin MaxNOx TechnologiesLow Nox Burners $1,900,000 $2,850,000 $4,750,000 Same 30-50% 0.147 0.105Babcock & Wilcox, EvTownsend, 214-348-7509OFA/FGR Combination $850,000 $1,275,000 $2,125,000 335kWh 40-50% 0.126 0.105Energy SystemsAssociates, LarrySyzmanski, 412-429-Flue Gas RecycleEntropy Technology &EnvironmentalConsultants, SteveWood, 281-807-7007NOxOUT SNCR/SCR Hybrid $1,250,000 $1,875,000 $3,125,000 50-70% 0.105 0.063Fuel Tech, Inc.; TerryBrown; 770-371-5020$800,000 $1,200,000 $2,000,000 19%NH3 $11.50$800,000 $1,200,000 $2,000,000 50% Urea $14.25Methane DeNOx (8-10% heatinput from Natural Gas)$1,050,000 $1,575,000 $2,625,000 $375+335kWh 50-60% 0.105 0.084Energy SystemsAssociates,LarrySamanski, 412-429-3572PostTechnologyImplementation(LB/MMBTU).21LB/MMBTUNo.1 Power BoilerSNCR40-50% 0.126 0.105Energy SystemsAssociates, LarrySamanski, 412-429-10/09/06Cost Estimates for #2 PBDirectEquipmentCostIndirectCost *TotalInstalledCostOperating Cost(at max load forone hour)** ReductionCurrentNOx Vendor ResourcesMin MaxNOx TechnologiesLow Nox Burners $1,800,000 $2,700,000 $4,500,000 Same 30-50% 0.3178 0.227Babcock & Wilcox, EvTownsend, 214-348-7509OFA/FGR Combination $975,000 $1,462,500 $2,437,500 420kWh 40-50% 0.2724 0.227Energy SystemsAssociates,LarrySamanski, 412-429-3572Flue Gas RecycleN/AN/AN/A N/AEntropy Technology &EnvironmentalConsultants, SteveWood,281-807-7007NOxOUT SNCR/SCR Hybrid $1,250,000 $1,875,000 $3,125,000 50-70% 0.227 0.136Fuel Tech, Inc.; TerryBrown; 770-371-5020$900,000 $1,350,000 $2,250,000 19%NH3 $11.50$900,000 $1,350,000 $2,250,000 50% Urea $14.25Methane DeNOx (8-10% heatinput from Natural Gas)$1,200,000 $1,800,000 $3,000,000 $524+420kWh 50-60% 0.227 0.272Energy SystemsAssociates,LarrySamanski, 412-429-3572Energy SystemsAssociates,LarrySamanski, 412-429-SNCRNo.2 Power BoilerPostTechnologyImplementation(LB/MMBTU).454LB/MMBTU40-50% 0.2724 0.22710/09/06BART Determination SummaryNo. 1 PB PM = WESP (including visibilityreductions of Class I areasoutside Arkansas)SO2 = N/ANOx =No. 2 PB PM = Wet ScrubberSO2 = Wet ScrubberNOx =