### Process Engineering, Equipment and Systems

SOUTH ATLANTIC REGIONAL OFFICE • 6174 KISSENGEN SPRINGS COURT, JACKSONVILLE, FLORIDA 32258-5136 • TEL: (904) 268-4829 SOUTH REGIONAL OFFICE • P.O. BOX 7266, MONROE, LOUISIANA, 71211-7266 • TEL: (318) 361-0165 MIDWEST REGIONAL OFFICE • 406 SAGEBRUSH ROAD, NAPERVILLE, ILLINOIS 60565-4132 • TEL: (630) 355-5120 NORTHEAST REGIONAL OFFICE • 139 MILL ROCK ROAD E, OLD SAYBROOK, CONNECTICUT 06475-4217 • TEL: (860) 510-0470 EUROPEAN OFFICE • JOAQUIN ARELLANO, 8 • 48930 GETXO • SPAIN • TEL +34 94/480-0242 P3870612.512 June 22, 2012 Reference: P-125387

Domtar Industries, Inc. 285 Highway 71 S Ashdown, AR 71822-8356

Attention: Ms. Andrea Dieterle
Subject: Emission Controls for Power Boiler No. 2

Dear Ms. Dieterle:
The Geoenergy Division of A. H. Lundberg Associates, Inc. is pleased to submit the following budget proposal for the supply of a wet ESP emission control syst em for the No. 2 power boiler at the Ashdown Mill.
In summary, the proposal is to supply an add-on spray scrubber/wet ESP to operate downstream of the existing venturi scrubbers. The spray sc rubber will utilize sodium hydroxide to absorb SO 2 and the wet ESP will collect particulate matter.
We offer the following commen ts for your consideration.



### D ESIGN 

### G OAL
The goal for this proposed equipment is to 1) meet the anticipated MACT standards for particulate matter and 2) provide 90% SO 2 reduction to comply w ith BART requirements.
To meet the anticipated MACT standards we have designed for an outlet particulate emission rate of less than 0.015 lb/MM BTU. As you know, th e re-considered MACT requirement proposed by the EPA is presently 0.029 lb/MM BTU. However, as of this date a fi nal requirement has not been issued by the EPA. If the final require ment is significantly different than 0.029 lb/MM BTU the wet ESP can probably be re-sized without a major impact on the scope of the project.
With regard to the BART regulation, as di scussed, there has been no guidance from the regulatory authorities. Given this, we have selected 90% SO 2 reduction as a common-sense approach to the situation. As in the case of the MACT require ments discussed above, if higher removal rates are required the equipment offered can probably be re-designed without a major impact on the project. P.O. Box 597 Bellevue, Washington 98009

13201 Bel-Red Road Bellevue, Washington 98005 tel: 425.283.5070
fax: 425.283.5081Domtar Industries, Inc. P-125387 Mr. Andrea Dieterle Page 2

P3870612.512 

### P ROCESS 

### C ONSIDERATIONS
An add-on spray scrubber/wet ESP is a logical choice because the gas stream is already being treated with a wet scrubber. Unlike the previo us wet ESP project at the Ashdown Mill no new upstream water recycle equipment would be required. Also, there would be no additional process water requirement because spent water from the sp ray scrubber/wet ESP c ould “feed forward” to the scrubber system as make-up. A process flow diagram showing this sche me is included in the appendix of the proposal.
Another advantage of add-on equipment would be that installation could be completed off line with final tie-in to be accomplished in a very shor t period of time. In contrast a modification to the existing scrubbe r to increase pressure dr op to enhance efficiency would require substantial down time and, in all likelihood a new boiler fan. The new wet ESP could use the existing fan for the necessary forced draft requirement. In sim ilar installations we have actually reduced the pressure drop on the upstream scrubber to more than make up for any additional pressure drop across the wet ESP.
If you have any questions about the proposal, pl ease feel free to me a call at 425/283-5070.
Thank you for the opportunity to pr esent this proposal. We look forward to working with you on this project.
Sincerely,

G EOENERGY D IVISION /A.H. L UNDBERG A SSOCIATES , I NC

.

Steven A. Jaasund, P.E. Manager

enc: Proposal
copy: Mr. Rudi Miksa, A.H. Lundberg Associates/Monroe, LA

### A.H. L UNDBERG 

### A SSOCIATES 

### , I NC



### . P-125387 June 25, 2012



### B UDGET 

### P ROPOSAL



### S PRAY 

### S CRUBBER 

### / W ET 

### ESP S YSTEM



### F OR



### D OMTAR 

### I NDUSTRIES 

### , I NC



### .
A SHDOWN 

### , A RKANSAS

Our Representative in Your Area: Mr. Rudi Miksa A. H. Lundberg Associates, Inc. Monroe, LA 318/361-0165P3870612.512 

### T ABLE OF 

### C ONTENTS



### I NTRODUCTION 

### ................................................................................................................. 1

P ROCESS 

### D ESCRIPTION 

### .................................................................................................... 1

D ESIGN 

### B ASE 

### ..................................................................................................................... 2

P ROPOSED 

### S UPPLY 

### ............................................................................................................ 3

E NERGY 

### R EQUIREMENTS 

### ................................................................................................. 4

C OMMERCIAL TERMS AND 

### C ONDITIONS 

### ......................................................................... 5

C LARIFICATIONS AND 

### W ORK BY 

### O THERS 

### ...................................................................... 5

P RICES



### .............................................................................................................................. . 5

T ERMS OF 

### P AYMENT 

### ......................................................................................................... 6

P ERFORMANCE 

### W ARRANTY 

### ............................................................................................. 7P-125387

1 P3870612.512 

### I NTRODUCTION The Geoenergy ® Division of A.H. Lundberg Associates, Inc. (AHLA) proposes to supply an addon spray scrubber/wet ESP system for the control of SO 2 and particulate emissions from the No. 2 power boiler at the Domtar Industries Pulp Mill in Ashdown, Arkansas.
The proposal includes two identical gas cleaning trains each including a spray scrubber followed be an E-Tube ® Wet Electrostatic Precipitator.



### P ROCESS 

### D ESCRIPTION The spray scrubber/wet ESP trains will be installed downstream of the existing venturi scrubbers and will utilize the main boiler fan on a forced draft basi s. We anticipate a maximum of 3 inches w.c. will be necessary to overcome the added resistance of the a dd-on equipment. If this additional pressure is not available from the existing fan, the capacity can be gained by reducing the pressure drop through your existing scrubber an appropriate am ount. This pressure drop reduction will not have a significant effect on the si ze requirements of the new wet ESP. The spray scrubbers will be a downflow design utilizing upward facing spray headers to maximize liquid to gas contact. The unit will operate at a liq uid to gas ratio of 20 gal/1000 acf and will utilize a pH adjusted scrubbing solution to affect a minimum of 90% SO 2 absorption. Sodium hydroxide will be used to maintain pH at the required level. After exiting the spray scrubbers, the gas streams will enter the bottom of the two wet ESP units. Directional baffles in the bottom of each unit will evenly distribute the gas as it turns upward. The gas will then pass through a perforated pl ate for gas distribution prior to entering the electrostatic zone of the wet ESP. The electrostatic zone of the wet ESP is compri sed of two parallel collection sections. Each section is made up of the collection tubes with discharge electrodes supp orted from above. As the gas passes upward through thes e collection tubes, the entraine d particles are charged by high voltage and collected on the inner surface of the tubes.
To promote condensation and wetting of the tube walls, ambient air is blown across the wet ESP tube bundle in the manner of a cross-flow air-to-air heat exchanger. This air is then directly discharged to the atmosphere. The resultant re duction in the emission stream temperature below the saturation temperature (wet bulb temperature) will cause c ondensation. This condensation forms on the internal tube walls thus maintaining wet collection walls, which allows for easy removal of the collected particul ate through automatic flush cycles.
After exiting the tubes, the cleaned gas passes through the power grid housing, then the outlet plenum at the top of the wet ESP unit. The gase s from the unit be discharged through individual 30-foot stacks mounted on top of each unit. Heated purge air is provided to each of the insulators supporting the power grid. The heating of the purge air is required to maintain the cleanline ss of the insulators. Th e purge air is heated by passing ambient air through the outs ide of the wet ESP tube bundle. This method of heating the purge air also results in condensation forming on the inside wall of the collection tubes for improved wetting. Each collection section is periodi cally and independently flushed w ith clean water to remove the collected particulate matter. The flush water cas cades from the collection tubes to flush the inlet perforated air distribution plate. It then falls down through the inlet plenum to be collected in the sump at the bottom of each unit. The water in this sump will then be pumped upstream to act as make-up water for the upstream scrubber.P-125387

2 P3870612.512 A process flow diagram and a general arrang ement drawings for the system proposed are included in the appendix of this proposal. Also included is a su mmary of the features of the ETube Wet Electrostatic Precipitators.



### D ESIGN 

### B ASE
The following process information will be used for the design of the spray scrubber/wet ESP system.



## No. 2 Power Boiler Design Conditions

Fuel Coal, bark, natural gas, TDF, (planning on fuel oil in future)

Boiler Type Stoker

Volumetric Gas Flow (scfm dry) 142,737

Scrubber Exit Gas Temp. (°F) 136

Exit Moisture (% wt) 12.3

PM Loading (lb/hr) 44.6

SO 2 Concentration (ppmv) 235.9

The

The spray scrubber/wet ESP equipment offe red will be designed to reduce the SO 2 concentration by 90% and the particulate matter to le ss than 0.015 lb/MM BTU at the outlet.P-125387

3 P3870612.512 

### P ROPOSED 

### S UPPLY
The following list summarizes the major components of the systems offered to treat the emissions from the power boiler.

Item Quantity Description

1 One (1) lot System Engineering, including process flow diagrams, process and instrument diagrams, general arrangement drawings, functional narrative of the l ogic, assembly drawings, instrument specifications, pump specifications, and operation and maintenance manual complete with spare parts lists
2 Two (2) only Spray scrubbers; T-316 L SS, downflow design with recycle pump, tank and piping
3 Two (2) only Model 1010-378 E-Tube ® Wet ESP units; T-316L SS wetted parts, tubular type upflow with rigid mast discharge electrodes

4 Four (4) only High Voltage Power S upplies, IGBT forced air cooled, 480 volt/3 phase/60 Hz
5 Two (2) only Purge Air System, includi ng fan with 5 hp motor, inlet filter and ductwork
6 Two (2) only Flush System, including flush tank and piping system in carbon steel and pump in ductile ir on with stainless steel trim
7 Two (2) lots Suppor t and access steel
8 Two (2) lots Field instrumentation
9 One (1) lot Commi ssioning, start-up and training
10 One (1) lot Local wiring of all electrical elements
11 One (1) lot Complete mechanical installationP-125387

4 P3870612.512 

### E NERGY 

### R EQUIREMENTS The following table shows the expected energy dema nds of the wet ESP system described in this proposal.



## Spray Scrubber/Wet ESP Energy Requirements

Scrubber pumps (kW) 108

High voltage power supplies (kW) 266

Insulator purge air fans (kW) 2.2

Insulator heaters (kW)* 48

Tube cooling fans (kW) 140

Flange to flange pressure drop (in. w.c.) 3

*Note: Insulator electric heat ers only operate during start up.P-125387

5 P3870612.512 

### C OMMERCIAL TERMS AND 

### C ONDITIONS



### C LARIFICATIONS AND 

### W ORK BY 

### O THERS

1. Ducting from the existing scrubbe r to the inlet flange of the spray scrubbers is not included

2. The cost of a crane to lift the equipment offere d to the top of the No. 2 boiler building is not included

3. Structural steel to the bottom of the wet ESPs is not included. Structural and access steel above this level is included.

4. Civil work or improvements to existing stru ctures is not included. AHLA will provide foundation-loading information.

5. Performance testing is not included

6. The performance guarantee includes a flus h cycle averaged into the results.

7. AHLA will require access to mill drawings and records required to design the proposed system.
8. The client is responsible for obtaining all ne cessary building/environm ental permits, taxes and professional engineering fees.

9. The client is to provide a lay down area close to the work site, as well as field fabrication area for piping, etc.

10. The client is to supply steam and process water as required by the erection crew free of charge. Also parking area, trailer space(s) , and access to phone lines. Phone line hookup will be by AHLA. AHLA is to supply electrical power for construction.

11. Construction crews may be union or non-union.

12. The client is responsible for th e removal, handling, disposal, or replacement of all asbestos materials, lead paint, or contamin ated soils that may be encountered.

13. The client is to provide an on-si te location for construction debris.

14. Any required demolition work is not included in our bid.



### P RICES
The budget price for the spray scrubber /wet ESP system, Items 1-11, is:
Five million two hundred seventy thousand dollars
$5,270,000.00

These prices are FOB mill site. Prices do not incl ude applicable taxes. All prices are in U.S. dollars.
The purchaser assumes liability for payment to the state of any Sales or Use tax if he uses or consumes the property herein purchased in such a way as to render the sale subject to tax.P-125387

6 P3870612.512 

### T ERMS OF 

### P AYMENT
The terms of payment shall be:
5% with purchase order. 10% with submittal of approval drawings (p rocess flow sheets, equipment drawings and g eneral arran g ements 25% with order placed for major equipment (WESP) 10% on delivery of 10 ′′ diameter collection electrodes to the shop

5% on construction mobilizatio n 15% on delivery of WESP to the mill; partial shipment allowed 25% on monthly percent completion of construction

5% on satisfaction of performance warranty on each unit, not to exceed six (6) months from shipment. This may be secured by a letter of credit at AHLA’s option, and due at shipment.

Payment will be due thirty (30) days after date of invoice.



### E RECTION 

### A DVISOR
If the Buyer elects to be responsible for the installation of the wet ESP equipment the services of a qualified erection advisor can be made av ailable at a rate of $1350.00 per man day (man day being ten (10) hours) plus expenses. Charges after te n (10) hours will be $170.00 per hour. Expenses are to include fi rst class food and lodging, economy travel to and from plant site to lodging, and travel to and from pr oject from the normal domic ile of the engineer.



### T RAINING 

### S ERVICES
Training is included as a part of the equipment package. The additional services of a trainer can be made available at a rate of $1,500.00 per ma n day (man day being eight (8) hours) plus expenses. Charges after eight (8) hours w ill be $210.00 per hour. Expenses are to include first class food and lodging, economy travel to a nd from plant site to lodging, and travel to and from project from the norma l domicile of the engineer.



### S TART 

### -U P 

### S ERVICES
Start-up services are included as a part of the equipment package. The additional services of an engineer can be made avai lable at a rate of $1350.00 per ma n day (man day being ten (10) hours), plus expenses. Charges after ten (10) hours will be $170.00 per hour. Expenses are to include first class food and lodging, economy trav el to and from plant site to lodging, and travel to and from project from the no rmal domicile of the engineer.



### S HIPMENT
Shipment will be made twenty-six (26) weeks after receipt of order. Shipment schedule requires that approval drawings, when submitted, will be returned within two (2) weeks. The time to complete erection is very dependent on site c onditions. Normally equipment of this size can be installed in less than 8 weeks.P-125387

7 P3870612.512 

### C ANCELLATION
Should Purchaser place an order for the equi pment proposed and later find it necessary to cancel, Purchaser shall pay the fu ll amount for any equipment, porti ons thereof, or orders for which Vendor is liable, plus char ges for engineering work complete d at that time, plus fifteen (15) percent of the total costs incurred.



### P ERFORMANCE 

### W ARRANTY A.H. Lundberg Associates, Inc. (AHLA) will pr ovide the equipment and process engineering as specified in this proposal for a complete and operable system and guarantee that 1) the inlet SO 2 concentration will be reduced by 90% but no lower than 20 ppmv and, 2) the particulate emissions at the outlet of the two wet ESP trains will be less than 0.015 pounds/million BTU. These guarantees are in effect when the system is operated in and supplied with the service conditions in general accordance with the Design Base of this proposal.
US EPA Method 1, 2, 3, 4, and 6 sh all be used to quantify the SO 2 concentration at the outlet of the equipment.
US EPA Methods 1, 2, 3, 4 and 5 shall be used to quantify the particulate emissions at the outlet of the wet ESP units. The basis for conve rsion of measured PM emission concentration values to lb/MMBtu units shall be per EPA Method 19. Acceptance tests must be performed within th ree (3) months after in itial start-up of the equipment, not to exceed six (6) months after fi nal shipment. The testing shall be performed by an independent third party that is acceptable to both Buyer and Seller. The warranty shall be fully satisfied and AHLA discharged there from upon the earlier of: (a) obtaining guaranteed performance by the testing described above, (b) th e expiration of three (3) months from initial start-up with no testing being made, (c) the expiration of six (6) months from final shipment without a test being made. If the guaranteed performance is not obtaine d, then AHLA shall have the right, and if required by the Owners, the obliga tion, to visit the installation to determine the cause of such failure. It is a condition of this guarantee th at the Owner will cooperate with AHLA in the making of further tests and make available n ecessary personnel, feed and operating conditions to enable AHLA to conduct such tests. The tests will be paid for by the purchaser. If failure to obtain guaranteed performance on the above is due to defect in AHLA-supplied equipment, design, or engineering, then AHLA w ill, at its expense, supply the equipment or process engineering it deems necessary until su ch performance is met, up to a limit of the contract price. Any remedy includes an equivale nt scope of installation as outlined elsewhere in this proposal. If failure to obtain guaranteed pe rformance is due to the Purchaser’s fault in operation, or in not providing proper feed or other specified operating conditions, the Owner shall pay the living and traveling expenses of AHLA personne l visiting the installation. In addition, the Owner shall pay the sum of $1,300.00 per man-day or fraction thereof fo r such personnel. Nevertheless, such personnel will, on request, wo rk with the Owner at the Owner's expense in making necessary corrections to a ccommodate the changed conditions.P-125387

8 P3870612.512 

### M ATERIAL AND 

### W ORKMANSHIP
We guarantee every part of the apparatus delive red in accordance with this proposal will be of proper material and workmanship, and agree to repair any part or parts which may prove defective in material or workmanship within twelve months from start up of equipment but not to exceed eighteen months from date of ship ment on each unit, it being agreed that such replacement is the full extent of our liability in this connection. Corrosion or wear from abrasion shall not be considered as defective ma terials. The best engineering practice will always be followed and materials used will be cl early specified. We shall not be held liable or responsible for work done or expense incurr ed in connection with repairs, replacements, alterations, or additions made, except on our written authority.



### V ENDOR 

### ’ S 

### R ESPONSIBILITY
In the course of design of processes and/or equipment where the Vendor provides process flow diagrams, layouts, and installation diagra ms, it is anticipated that Vendor furnished design will be followed. Cha nges in design without writte n approval of the Vendor will relieve the Vendor of responsibility for performance of the supplied equipment.



### D RAWINGS 

### L IMITATION
All Vendor drawings supplied to the customer or his engineer under an order re sulting from this proposal will remain the property of the Vendor and are conditionally loaned with the understanding that they will not be copied or us ed except as authorized by us. Reuse of the designs as shown on the drawings for anot her project is speci fically prohibited.



### C ONFIDENTIALITY OF 

### P ROPOSAL 

### I NFORMATION
This proposal contains confidential informati on and remains the property of A.H. Lundberg Associates, Inc., and is conditiona lly loaned. The information contained herein is not to be shared with any party except those within th e Buyer’s company who are involved in its evaluation or outside consultant s who are assisting the Buyer w ith this specific project. Specifically prohibited is the di stribution of such information to any individual or business deemed to be a competitor by AHLA



### S ECURITY 

### I NTEREST
AHLA reserves the right to request a security in terest in the materials provided as a part of this proposal, and Buyer agrees to provide in formation needed to assist AHLA in obtaining a security interest and to execute such doc uments AHLA reasonably requests to create a security interest. Secu rity interest language is available on request.P-125387

9 P3870612.512 We appreciate the opportunity to present this proposal and l ook forward to your favorable consideration.
Sincerely,

G EOENERGY D IVISION /A.H. L UNDBERG A SSOCIATES , I NC

. 

# V

Steven A. Jaasund, P.E.
Attachments: General Arrangement Drawings Process Flow Diagram Wet ESP Features

# A TTACHMENTSP-125387

1 P3870612.512 

### W ET 

### ESP F EATURES

The E-Tube ® wet ESP design is an extremely efficient and cost effective device for the removal of particulate from a solid fuel fired boiler. Be low is a discussion of th e various design elements of the E-Tube contributing to this performance.
Upflow
Due to the benign nature of the particulate being collected in this application, the upflow arrangement provides certain benefits. In the upf low configuration, the inlet plenum acts as a quiescent zone, allowing entrained water droplets to fall out of the gas stream. As the inlet plenum is at the bottom of the wet ESP, the water does not fall into the tube collection section as it would in a downflow arrangement. Thus, there is no need for an inlet droplet separator. (With the downflow configurat ion, these water droplets raining into the collection section advers ely affect the performa nce of the system and need to be removed prior to entering the wet ES P. A cyclone separator is most commonly used for this service. The cyclone adds capital cost to the project and more importantly, additional operating costs due to its pressure drop.)

Tube Cooling
The wet ESP systems offered will include an innovative tube cooling feature to further enhance performance and operabilit y. The tube cooling feature works like this.
The gas stream leaving th e existing scrubbers and entering the wet ESP collection sections is saturated with water vapor . This saturated gas stream has small water droplets entrained in it. In the up-flow mode, the wet ESP preferentially removes the water droplets prior to removing the smaller sub micron particle s. This occurs in the lower portion of the tube bundle. In order to wet the entire length of the co llection tube, ambient air is pulled across the tu be bundle in the manner of a shell and tube, air-to-air heat exchanger. The axial fans and ho ods shown on the right side of this illustration ensure pr oper air distribution.P-125387

2 P3870612.512 Star II Electrode

Extensive research culminated with the development of the Star II discharge electrode

. The high performance discs increase the corona discharge to maximize the particle charging capacity. This ability to discharge more current at voltage results in less required collection surface. This greater discharging capac ity is coupled with ability to deliver more power to the Star II discharge electrode. The high frequency, high voltage power supply, discussed further below, delivers significantly more power to the discharge probes.

Round Tubes

The collection electrodes are round tubes . The discrete, round-tube construction offers a distinct advantage in corrosive applications (see comparison to hex-tube arrangement below). Per the diagram, both systems experience general corrosion

. On the hex tube design, it occurs on both sides of the collection plate, whereas on the round tube it occurs only on the inside surface that is in contact with the process. Due to the difficulties in manufacturing the hex bundle, the plate material is similar thickness to the round tube, resulting in a shorter life.
Additional corrosion mechanisms occurring in th e hex bundle, but not on the round tube include crevice and stress corrosion . These are set up with the construc tion of the hex bundle, including bending the metal in some corners (stress) and sk ip welding where other corners come together (crevice).
Finally, the round tube also has the most uniform electrical fiel d for the highest efficiency.P-125387

3 P3870612.512 High Frequency Power Supply

The efficiency of the wet ESP is dependent on the migration velocity of a particle and the amount of collection area. The migration velocity is a function of the square of the voltage applied. Thus, more area can be provided or a higher voltage can be applied. The transformer/rectifiers on a Geoenergy ® E-Tube ® wet ESP are high frequency, high voltage units . The high frequency units maximize the voltage to the system, providing the highest voltage and highest e fficiency for a given design and collection area. General Corrosion C

r e v i c e C

o r r o s i o n

S

t r e s s C

o r r o s i o n General Corrosion

General Corrosion C

r e v i c e C

o r r o s i o n

S

t r e s s C

o r r o s i o n General Corrosion

Corrosion Mechanisms in Tubes Hex RoundP-125387

4 P3870612.512 Innovative Purge Air System
Heated purge air is provided to each of the insulators supporting the power grid. The heating of the purge air is required to maintain the dryness and cleanliness of the insulators. The purge air is heated by passing ambient air through the outside of the wet ESP tube bundle. An auxiliary electric heater is also included for start-up. We have significant experience with the design of the compartments holding the insulators. They are outboard of the wet ESP units, designed to avoid any aspirating of dirty gas back into the compartment to provide long life on the insulators.



### S UMMARY OF 

### B ENEFITS

The E-Tube ® wet ESP technology provides for a smaller, more efficient system relative to dry ESP technology.

• The wet system eliminates the fire potential present in dry systems.

• Upflow configuration eliminat es the need for an inlet water droplet separation device, removing both the initial cap ital and the ongoing operationa l costs due to increased pressure drops.

• Tube cooling insures collecting surf ace cleanliness and maximum voltage

• The Star II discharge probes maximize the corona discharge and thus the particle charging capacity of the system.

• Round tubes for the collection surface provi de the best performance and longevity.

• High frequency, high voltage pow er supply provides the highes t voltage to the system to maximize the efficiency.

• The heat from the process gases supplies th e heating of the insulator purge air; the energy requirement from outside sources is minimized.
In total, the E-Tube wet ESP provides the highest performance possible to maximize collection efficiency.