Notes from Site Visit at Duke Energy’s Edwardsport IGCC Station on March 15, 2011

EPA conducted a site visit at Duke Energy’s Ed wardsport Integrated Gasification Combined Cycle (IGCC) Station (Edwardsport) located in Edwardsport, IN on Tuesday, March 15, 2011 to learn about the operations at the plant, specifically the IGCC unit. Table 1, located at the end of these notes, identifies the site visit participants. Th e presentation that th e Edwardsport personnel gave during the site visit is provide d as Attachment 1 to these notes.

These notes describe the informati on collected during the site visit.

Plant Overview

These notes focus on operations at the Edward sport IGCC Station. Attachment 1 contains process flow diagrams for the gasification proces s, including the syngas cleaning operations and the slag handling operations, overall water balanc e diagram for the IGCC plant, and process flow diagrams for the grey water treatment system. A ttachment 2 contains more detailed process flow diagrams for the grey water treatment system.

 Edwardsport retired the three coal-fired generating units located on the plant site on March 1, 2011. These units had a capacity of approximately 160 MW. [QUESTION FOR EDWARDSPOR T: Please confirm there were three coal-fired generating units.]

 Edwardsport is in the process of c onstructing the IGCC unit which will use
Illinois Basin coal as the fuel source. The unit will have a gross capacity of approximately 780 MW and a net capacity of 618 MW. The unit will have two combustion turbines with gross capacity of 230 MW each and one steam turbine with a gross capacity of 320 MW.

 The table below contains some general information for the IGCC generating unit.

Unit Installation
Date Gross Capacity

(MW) Unit Type Fuel Type 1 Currently in

progress (projected
commercial operation in Dec. 2012) 780 (618 MW net) Integrated Gasification Combined Cycle (IGCC) –
base load Syngas generated from
coal

[QUESTION FOR EDWARDSPORT: What will be the unit number associated with the IGCC unit? In addition, please update the projected commercial operat ion date, if appropriate.]

 The Edwardsport plant comprises over XXX acres and is expected to employ approximately 100 people once commercial operations begin. [QUESTION FOR EDWARDSPORT: How large is the plant?]

 The Edwardsport plant currently has approximately 2,500 construction workers
on site to install the IGCC unit.Page 2

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 Cooling water for the plant will be supplied by both the White River and groundwater. Plant personnel estimate that approximately 70% of the water will be pulled from the White River, while the other 30% will be pulled from groundwater.

 The raw intake water consisting of both river water and groundwater, approximately 10,000 gpm, will be softened and filtered prior to use. Additionally, 2,000 of the 10,000 gpm will be fu rther treated using demineralizers for use in the steam/water cycle.

Gasification Process Operations

 The gasification technology used at Edwardsport was designed by General Electric (GE).

 Edwardsport plans to use Illinois Basin coal as the fuel source for the gasifier. Plant personnel stated that the plant coul d use a blend of coal and petroleum coke or only petroleum coke; however, they plan to use coal for at least ten years
because of tax incentives.

 Plant personnel noted that the unit can operate on natural gas, but would not be able to reach the full 618 MW capacity b ecause there is no steam generated from the gasification process, via th e radiant syngas cooler (RSC).

 Edwardsport is building a grey water treatment system to handle the grey water generated by the plant. Plant personnel noted that the treatment system was designed based on estimated characteristics of the grey water and they do not yet know the actual characteristics. Plant pers onnel also stated that they do not know if the grey water characteristics would be different depending on whether coal or petroleum coke is used, but they do not believe that it would impact the grey
water treatment system or cau se any permit limit exceedances.

 Edwardsport will receive Illinois Basin co al from a mine approximately 50 miles away. The coal will be delivered via rail, but the plant will also have the capability to receive coal via truck.

 The coal will be stored on the coal pile, where Edwardsport plans to store approximately 30 to 45 days worth of coal. During the operation of the unit, Edwardsport plans to process approx imately 6,000 tons of coal per day.

 Edwardsport will transfer the coal from th e coal pile to the two coal bunkers, each with a capacity of 3,000 tons, which then feed to the grinding mill. Treated intake water is added to the grinding mill to crea te the coal slurry that is fed to the gasifier, which is approximately 60 percent solids.

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Gasification Wastewater Treatment

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Equipment Percent of Total Equipment Cost (%) [Confidential Business Info rmation has been removed from this section.] [Confidential Business Information
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Edwardsport Water Treatment

 As described above, the treated grey wate r will be transferred to the Southeast Pond, along with cooling tower blowdown, site storm water, water treatment concentrates, and treate d sanitary effluent.

 The overflow from the Southeast Pond will be transferred to the Final Settling Pond, which will also receive coal pile runoff pond effluent, runoff from the intermediate slag storage area, and leg acy station coal pile drainage. The overflow from the Final Settling Pond will be discharged to the White River via
Outfall 002.Page 5Table 1. Site Visit AttendeesNameOrganization (Representing)TelephoneE-mailJon ArboDuke Energy812-735-8579 jon.arbo@duke-energy.comRichard Baker Duke Energy 704-604-0116 richard.baker@duke-energy.comPhil Behme Duke Energy 812-735-8944 phil.behme@duke-energy.comRob Burch Duke Energy 317-838-2209 robert.burch@duke-energy.comNathan CraigDuke Energy704-315-8187 nathan.craig@duke-energy.comBill KennedyDuke Energy980-721-7626 william.kennedy@duke-energy.comHoward LewisDuke Energy317-838-1661 howard.lewis@duke-energy.comDebbie Nispel Duke Energy 317-838-7957 debbie.nispel@duke-energy.comMike DubayehGeneral Electric832-295-7847 michael.dubayeh@ge.comAdam Edwards HPD 815-609-2121 adam.edwards@veoliawater.comBill Murray HPD 815-609-2131 bill.murray@veoliawater.comRichard HamblinIDEM317-232-8696 rhamblin@idem.in.govRon Jordan EPA/Office of Water 202-566-1003 jordan.ronald@epa.govTJ Finseth ERG (Contractor to EPA) 703-633-1698 thomas.finseth@erg.com