# Reinhold Environmental Ltd.

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2009 NOx-Combustion Round

Table & Expo Presentation

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February 9 & 10, 2009, Cleveland, OHCodan Development LLC“Pre-SCR SBS Injection at DP&L’sKillen & Stuart Stations”8thAnnual NOx/PCUG ConferenceFebruary 9-12, 2009Cleveland, OhioCodanAgendazSBS InjectionTMTechnology Overviewz“Pre-SCR” Injection Concept & BenefitszSummary of R&D Program ResultszPre-SCR Applications at Killen & Stuart3⁄4System description & configuration3⁄4Performance testing results3⁄4Future operation & testing plansCodanSBS Technology DescriptionzPatented Technology3⁄4Owned by Codan Development, commercialized by URSzReagent Injected via Dual-Fluid Nozzles3⁄4Sodium-based solutions of soda ash or sodium sulfite3⁄4Droplets are flash driedto form a fine particulate3⁄4Particulate selectively reacts with SO3zHigh SO3Removal Efficiency3⁄4Injection lance & baffle design give full coverage across the duct3⁄4Optimum average particle size (5-7μ)zProduct Collected in ESP or Wet Scrubber3⁄4Neutral to positive impact on ESP performance3⁄499%+ removal efficiencies in wet scrubberzSimple & Reliable Equipment Operation3⁄4Routine preventative maintenance is essentialCodanCodanVertical InjectionLances in SCROutlet DuctCodanCommercial SBS InstallationsUtility Plant Location MWDesignSO3InjectionLocationReagentOperatingSeasonStartupDateFirstEnergyMansfield 1-3 Shippingport, PA 3x860 80Air HeaterInletSodium Sulfite Year-round March 2003TVAWidows Creek 7 Stevenson, AL 550 54Air HeaterInletSodium Sulfite Ozone April 2003NIPSCOBailly 8 Porter, IN 365 59Air HeaterOutletSodium CarbonateOzone April 2004VectrenCulley 3 Newburgh, IN 287 48 SCR Outlet Byproduct SBS Year-round July 2004PPLMontour 1-2 Washingtonville, PA 2x765 42Air HeaterOutletSodium CarbonateOzone Aug 2004Duke EnergyGibson 1-5 E. Mt. Carmel, IN 5x650 110Air HeaterOutletSodium CarbonateOzone May 2005DP&LKillen 2 Manchester, OH 635 34 / 36Econ OutletSCR OutletSodium CarbonateYear-round Oct 2007IP&LHarding St 7 Indianapolis, IN 465 58 SCR OutletSodium CarbonateYear-round Nov 2007NIPSCOBailly 7 Porter, IN 180 59 SCR OutletSodium CarbonateYear-round April 2008DP&LStuart 1-4 Aberdeen, OH 4x620 90 Econ OutletSodium CarbonateYear-round July 200812,500 MW Installed on 20 Boilers; ~ 3000 MW Planned12,500 MW Installed on 20 Boilers; ~ 3000 MW Planned12,500 MW Installed on 20 Boilers; ~ 3000 MW PlannedCodanGibson June 2004 – No TreatmentCodanGibson June 2005 – SBS InjectionCodanBenefits of SO3ControlzOpacity EliminationzCorrosion ReductionzCo-Removal of Hg, HCl & Se with Fly AshzEnhanced Heat Recovery with CO2ReductionzSCR/SNCR Operating Flexibility3⁄4Enhance NOxremoval3⁄4Extend catalyst life3⁄4Reduce the SCR Minimum Operating TemperatureCodanSBS Injection LocationsSCR OutletAir Heater OutletESP Outlet /Scrubber InletEconomizerOutlet / SCRInletCodanAgendazSBS InjectionTMTechnology Overviewz“Pre-SCR” Injection Concept & BenefitszSummary of R&D Program ResultszPre-SCR Applications at Killen & Stuart3⁄4System description & configuration3⁄4Performance testing results3⁄4Future operation & testing plansCodan“Pre-SCR” Injection BenefitszBenefit #1 - Increased Residence Time for SO3Removal3⁄4Increases SO3removal3⁄4Provides benefits associated with removing SO3upstream of AH if a suitable injection location is notavailable between the SCR & AHzBenefit #2 - Reduced Minimum OperatingTemperature (MOT) within the SCRCodanImpact of SO3on the SCR MOTzSO3Reacts with NH3to form ABS3⁄4NH3concentrations are highwithin the SCR reactor3⁄4ABS condenses at higher temperatures within thecatalyst pores due to capillary condensation3⁄4Prolonged operation with ABS formation will plug thecatalyst3⁄4Catalyst suppliers specify an MOT that avoids catalystdeactivationCodanImpact of SO3on the SCR MOTzMOT Management Strategies3⁄4Reduce or terminate ammonia flow3⁄4Raise the SCR temperature with economizer bypass,other economizer modifications or duct burners3⁄4Restrict lower-load operation3⁄4Fire lower-sulfur coals3⁄4“Burn off” condensed ABS3⁄4Remove SO3upstream of the SCRCodan5205405605806006206400 5 10 15 20 25 30 35SO3Concentration, ppm

Minimum Operating Temperature, °FMinimum Operating Temperature versus SO3Composite Range ofMOT InformationProvided by CatalystSuppliersCodanExample MOT Relationship5105205305405505605705805906006106201.0E-10 1.0E-09 1.0E-08Mole Fraction SO3x Mole Fraction NH3

Minimum Operating Temp, °F@ 3 ppm@ 12 ppm@ 30 ppmCodanExample: MOT-limited NOxRemoval versus Load0102030405060708090100200 250 300 350 400 450 500 550 600 650 700Unit Load, MW

Maximum NO x Removal, %1 ppm SO3 w/SBS2 ppm SO3 w/SBS3 ppm SO3 w/SBS5 ppm SO3 w/SBS12 ppm SO317 ppm SO3Target NOx Removal3 ppm12 ppmCodanMOT Impact on Cycling UnitUnit Load Profile01020304050607080901000 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100Percentage Operating Hours Less Than Stated Load

Unit Load (%)85% NOxRemoval0% NOxRemoval85% NOxRemovalCodanNet Impact on NOxEmissions$0$2$4$6$8$10$12High SO3; 85% Rem Low SO3;85% Rem Low SO3; 95% Rem

Annual NO x Emission Value ($M/yr)650 MW10,000 Btu/kW-hr75% Cap Factor0.45 lb/MMBtu NOx$2500/ton NOx Value0.19lb/MMBtu0.075lb/MMBtu0.025lb/MMBtuCodanAgendazSBS InjectionTMTechnology Overviewz“Pre-SCR” Injection Concept & BenefitszSummary of R&D Program ResultszPre-SCR Applications at Killen & Stuart3⁄4System description & configuration3⁄4Performance testing results3⁄4Future operation & testing plansCodan“Pre-SCR” Injection Development IssueszImpacts of Sodium Injection Ahead of the SCR3⁄4Impact on SCR catalyst performance?3⁄4Requirements to protect catalyst activity?3⁄4Removal of SO3generated by the SCR?3⁄4BOP impacts such as changes in mercury oxidationor chloride removal?CodanPre-SCR Research & Experience to DatezThree-Phase Research Effort3⁄4Phase I – Short term catalyst exposure3⁄4Phase II – Longer-term exposure (2,000 hours)3⁄4Phase III – Pilot testing at the MRC to identify BOPissuesCodan“Pre-SCR” Development ProgramzParticipating Utilities:3⁄4FirstEnergy3⁄4Ameren3⁄4Dayton Power & Light3⁄4Duke Energy3⁄4Reliant Energy3⁄4Southern CompanyzOther Participants:3⁄4Ceram, Cormetech, FERCoCodan“Pre-SCR” Research ConclusionszNo Sodium-Related Impacts3⁄4Normal SCR operation (2,000 Hours)3⁄4Under simulated lay-up conditionszMinimal Impacts of Ambient Air Exposure3⁄4Ambient air temperature heated by 15°FzSodium Accumulation Noted on Catalyst Surface3⁄4Critical to evaluate this at full-scale3⁄4Catalyst protection measures are recommendedzModest Removal of the SCR-Generated SO3zNo Other BOP Impacts were IdentifiedCodanPre-SCR Research & Experience to DatezCommercial Applications at Killen & Stuart3⁄4Killen – Low-dust SCR, two injection locations3⁄4Stuart – High-dust SCR, injection upstreamzCommercial Application at a Midwest Utility3⁄4Injection upstream of high-dust SCR3⁄4System currently in startupCodanAgendazSBS InjectionTMTechnology Overviewz“Pre-SCR” Injection Concept & BenefitszSummary of R&D Program ResultszPre-SCR Applications at Killen & Stuart3⁄4System description & configuration3⁄4Performance testing results3⁄4Future operation & testing plansCodanDP&L Killen Unit 2zNominal 635 MWzHot-Side ESPzLow-Dust SCRzRothmueller APH’szChiyoda FGDzEconomizer Bypass3⁄4Bypass flow is limitedzPlant will be Increasing Coal Sulfur LevelsCodanDP&L Killen Unit 2 – SBS DesignzMinimum Operating Temperature Constraints3⁄4NOxreduction limited at all loadszSBS Injection at Econ Outlet andSCR OutletzSBS in Operation through 2008 Ozone Season3⁄4Performance testing conducted in May 20083⁄4Continuous injection at the economizer outlet3⁄4Periodic injection at the SCR outletzSCR & SBS Systems in Continuous Operation3⁄4Working through “cold weather” issuesCodanInjection Location: Economizer OutletEconomizer BypassEconomizerOutletTo Hot-SideESPInjection LancesCodanCodanInjection Location: SCR OutletTo Primary AirHeaterTo Secondary AirHeaterSCR OutletInjection LocationSCR BypassCodanPerformance Testing - KillenzKey Results3⁄4Lower-load boiler SO2conversion higher thanexpected3⁄4Up to 75% SO3removal at SCR inlet (< 3 ppm)3⁄4AH inlet SO3concentrations below 4 ppm8Breen probe indicated no condensable compounds present8Continued operation possible with low cold-end temperatures8Other secondary benefits should be possibleCodanDP&L Stuart Units 1 - 4zFour Boilers (Nominal 621 MW Each)zFuel Sulfur Level will IncreasezHigh-Dust SCR3⁄4SCR operation impacted by MOT3⁄4Year-round SCR operationzEconomizer Bypass3⁄4Reliability is an issue3⁄4Currently open at all loads3⁄4Effectiveness is uncertainCodanDP&L Stuart Units 1 – 4: SBS DesignzPrimary Objectives3⁄4Retain ability to inject ammonia at lower loads3⁄4Allow use of higher-sulfur coal blendszInject SBS at Economizer Outlet3⁄4Treat both boiler- & SCR-generated SO3zSBS Start-Up Completed on All Four Units3⁄4Unit 4 operated ~3 weeks in September3⁄4SBS injection on all units in Nov/Dec 20083⁄4Performance enhancement demonstration in progressCodanInjection Location: Economizer OutletSCR First Catalyst LayerAmmonia Injection GridFlow Straightening DeviceSBS Injection LancesSCR Inlet FlowStraightening DeviceExisting VanesEconomizer Bypass DuctEconomizer OutletCodanInjection Location: Economizer OutletCodanPerformance Testing – StuartzKey Results3⁄4Constant percentage SO2conversion in boiler3⁄490% SO3removal at SCR inlet8SCR inlet SO3concentrations below 1 ppm8Elevated Na:SO3molar ratio promotes SO3removal8Allows compliance with Consent Decree NOxreductionrequirements over normal load range3⁄4AH inlet SO3concentrations below 6 ppm8Should improve AH performance relative to no SBSCodanFuture Operation & Planned TestingzStuart Performance Enhancement Demonstration3⁄4Pre-SCR strategy impacts all downstream equipment3⁄4Numerous operating variables including fuel sulfur,economizer bypass, SBS, Consent Decree, Wahlco,AH outlet temperature & ammonia slip3⁄4Demonstration objectives:8Identify optimum approach for SBS & other equipment8Demonstrate operating conditions that reduce costsCodanCatalyst Protection IssueszCatalyst Protection Measures UnderConsiderationzStrategies during Reactor Maintenance3⁄4Minimize ambient air intrusion into the reactor3⁄4Provide heating to slightly raise reactor temperaturezStrategies for SCR Start-Up3⁄4Increase the size of dilution air heaters to maintaincatalyst temperature above the flue gas water dewpointCodanCatalyst Protection IssueszCatalyst Sampling & Testing3⁄4Measure catalyst activity & sodium level3⁄4Testing to evaluate impact of exposure to humid air3⁄4Results of October catalyst sampling not yet available3⁄4In-situ catalyst activity measurementszNo Current SCR Operating Problems at EitherStationCodanSummaryzPre-SCR Experience is being Accumulated atKillen & Stuart through Operation and TestingzSO3Removals are Sufficient to Meet MOTObjectiveszPotential for Secondary Benefits will be Explored3⁄4Initial testing of elevated slip operation at Killen3⁄4Comprehensive demonstration testing at StuartCodanSummaryzCatalyst Protection Measures are beingDeveloped & Implemented at Both Plants3⁄4Catalyst testing results will help to quantify long-termcatalyst performance and to define outage and startuprequirements3⁄4No current SCR operating issueszPre-SCR Approach Beneficial for Other Plants3⁄4Conversion to higher-sulfur coals3⁄4MOT operating constraints at lower loads3⁄4Year-round operation with more cycling