# ~HATCH~ United States Steel- Minntac Iron Ore Pelletizing Operation NOx Reduction Analysis



# Appendix A Indurating Process Flow Diagram

ISO 9001 PR332002-0t US Steel Minntac- Nox Reduction Technology Report.Doc "7"V WorkingTogether V SAFELY , Rev. 0, Page 17

e Hatch 2006/03 X

# n
Dryer D1



# G) Waste Gas Stack

Gas Side Analysis Waste Gas Fan

1. Gas Flow Rates:

- actual: (acfm 2. Mass Flow Rates:

- dry gases: (lbs/min)

- water vapor: (lbs/min 3. Gas Temp.: (deQ F) 4. Gas Densl_ty:_(lbs/ft3) 5. Static Pressure: ("wg) Pellet Analysis

6. Pellet Temp* (deg F) • estimated pellet temperature Dryer D2

Scrubber System


# G) Waste Gas Stack 550,000 32,000 2,600

120 0.063

0.5 Dryer D1 100 Preheat



# 0 Preheat Air (1A& 18) 550,000 19,003

148 600 0.035 -15.2 Dryer D2 650 Exhaust Fan 1A& 1B



# 0 Recoup

Flow 412,468

7,619

143 1,630 0.018 -0.6 Preheat

1100 

# @ CoolerVent Stack 270,580

7,580

100 930 0.027

0.3 Rotary/Kiln 2450 

# @ CoolerVent Stack Inputs: 

# I/':;'\

-Biomass 

## \11

- Natural Gas

- Fuel Oil
Cooler Zone 1

Exhaust Fan 3A



# ® Cooler Zone2



# 0 Cooler lndraftAir Zone 1 Zone 2/3 (FAN 3A) (FAN 38) 167,470 199,220 12,378 14,724

129 154 69 69 0.072 0.072 -2.1 -2.1 Cooler 1 Cooler2/3 800 250 Exhaust Fan 38 Cooler Zone3

US Steel Minntac
- Line 5 Hatch Project No. 332002 SK1
- Process Flow Diag.

# ~HATCH~

ISO 9001 PR332002-0l US Steel Minnlac- Nox Reduction Technology Report.Doc United States Steel- Minntac Iron Ore Pelletizing Operation NOx Reduction Analysis



## Appendix B Line 5 Operating Data

"'V'f:: WorkingTogether V SAFElY 1 Rev. 0, Page 18

oHatch 2006/03 X**""~** c: " 

## ..,_**~m** .l::;: U;:;:**"'~** c: .. c: .. 0 "' ""-E " 0 1tiii1**~U;** 

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0**-~-----::**....\- :......:..;:;,..**\~- --~7:-ii:.;;,..._;;,**  9/15/2007 Date

# ~HATCH'" United States Steel
- Minntac Iron Ore Pelletizing Operation NOx Reduction Analysis



# Appendix C Budgetary Specifications and Vendor Proposals

ISO 9001 PR332002-01 US Steel Minntac- Nox Reduction Technology Report.Doc**~** WorkingTogether V SAFElY , Rev. 0, Page 19

o Hatch 2006/03 XUSS Minnesota Ore Operation NOx Reduction Technologies lngulrv: H·332002·M·01
NOX EMISSION CONTROL SYSTEM INDURATING FURNACE OPERATION US STEEL MINNTAC -IRON PELLETIZING PLANT MT.IRON, MN 

### 1. Background Information SPECIFICATION Section 00 1119 Summary ofWork Rev. 0. Page 1

US Steel operates an iron ore pelletizing plant at their Minnesota Ore Operation (Minntac) facility, including five pelletizing lines designated as Nos. 3, 4, 5, 6 and 7. US Steel is currently investigating the feasibility of reducing NOx emissions from the indurating process dedicated to the pelletizing operations, focusing initially on Line No.5. NOx emission controls would be installed on the other lines once the technology proves to be effective. As part ofthis investigation, US Steel is requesting budgetary proposals covering applicable NOx reduction technology for the indurating process. If applicable, US Steel would also like to consider conducting CFD modeling and/or pilot testing of any/all promising NOx reduction technologies. Bidder shall utilize the existing emission control system to the extent possible to be utilized in conjunction with the proposed NOx reduction technology and equipment. 

### 2. Applicable Codes and Standards All work shall be carried out in accordance with the latest edition of all applicable standards and codes initiated and issued by the following organizations

AIST ANSI ASCE ASME ASTM AWS OSHA SMACNA SSPC Association of Iron and Steel Technology American National Standards Institute American Society of Civil Engineers American Society of Mechanical Engineers American Society ofTesting and Materials American Welding Society Occupational Safety and Health Administration Sheet Metal and Air Conditioning Contractors National Association, Inc. Society of Protective Coatings 

### 3. Line No. 5 Indurating Process Operations The indurating process at Line No.5 is a "grate-kiln" type system, which employs a traveling grate, a rotary kiln and an annular cooler. The green pellets are dried and heated in an oxidizing atmosphere at an incipient fusion temperature of approx. 2400-2600 deg F depending on the type of pellet. Acid pellets are generally heated to the lower end of the temperature range, while flux pellets are heated to the higher end ofthe temperature range.

# ~HATCH~
USS Minnesota Ore Operation NOx Reduction Technologies lnguirv: H·332002·M·01 SPECIFICATION Section 00 11 19 Summary ofWork Rev. 0. Page 2

• Drying ofthe green pellets and partial induration occurs at the grate, while final induration is finished in the rotary kiln. The pellets are cooled in an annular cooler that is designed to operate with counter-current cooling air flow. Refer to attached SK1 • Process Flow Diagram for typical indurating process concept and operating parameters. Emissions generated from the indurating process include solid particulates, mercury, S02, as well as combustion products such as CO, C02, and NO.. The existing emission control system includes wet scrubber system for particulate removal. Line No.5 -Indurating Process Design Basis: (typical flux pellets) 1. Indurating Grate Feed Rate:

2.

3.

4. Average Rate Maximum Rate Iron Pellets Produced: Average Rate Maximum Rate Fuel Input: (average) Natural Gas Biomass Fuel Total Fuel NO,Emissions: (typical) Average Rate Maximum Rate 450 tonnes/hr 530 tonnes/hr

370 tonnes/hr 440 tonnes/hr

170 x 1 06 Btu/hr 120 x 1 06 Btu/hr 290 x 1 06 Btu/hr

470 lbs/hr 1,230 lbs/hr Note that all production rates quoted in tonnes per hour are long tons
. 

### 4. Scope ofWork The Bidder shall provide budgetary proposal covering the design, fabrication and supply the NO, emission control system as specified herein. Bidder shall identify the overall efficiency of their proposed system in reducing the NOx emissions outlined above. The equipment furnished shall be capable of meeting the indicated performance requirements and where possible, shall be the Equipment supplier's standardized design. Bidder shall utilize the existing emission control system to the extent possible, minimizing equipment modifications and downtime to install the additional NOx control system equipment. US Steel is also interested in developing and/or validating the proposed NOx reduction system technology via computational fluid dynamic (CFD) modeling or by installing a pilot unit. Bidder shall include an optional price to provide the either or both ofthese services.

# ~HATCH~
USS Minnesota Ore Operation NOx Reduction Technologies Inquiry: H-332002-M-01 SPECIFICATION Section 00 1119 Summary ofWork Rev. 0. Page 3
4.1 Bidder shall identify the expected NOx emissions from their proposed system. 4.2 Bidder shall identify whether this NOx reduction system technology has been previously installed in this type of pellet plant, and shall provide NOx emission data, ifavailable. 4.3 Bidder shall identify how the NOx reduction system will be monitored and controlled, including adjustments required based on varying process parameters and NOx emissions rates. 4.4 Bidder shall offer as an option the engineering services required to provide a CFD model to develop the proposed NOx reduction system technology prior to full-scale installation. 4.5 Bidder shall offer as an option a pilot type unit capable of validating the proposed NOx reduction system technology priorto full-scale installation. 4.6 Bidder shall identify the proposed NOx reduction technology, including all key operating design parameters, operating costs, utility consumption, injection chemical usage, NOx reduction efficiency, etc. 4.7 Bidder shall identify whether the technology is expected to be capable of reducing any other emissions typical ofthis application such as SOx, mercury, or carbon monoxide. 4.8 Bidder shall provide a preliminary project schedule for completing the NOx emission system upgrades, including any and all CFD modeling and pilot system installation. 4.9 Bidder shall provide budgetary costs covering the proposed NOx emission control system, including proposed CFD modeling and/or pilot testing.Dryer D1



# (!) Waste Gas Stack

Gas Flow Rates: Waste Gas Fan

- actual: (acfm Mass Flow Rates:

- drygases: (lbs/min

- water vapor: (lbs/min Gas Temperature: (deg F) Gas Density: (lbs/ft3) Static Pressure: ("wg) Dryer D2

Scrubber System



# (!) Waste Gas Stack 550,000 32,000 2,600

120 0.063 0.50 

# 0 Preheat Air (1A& 18) 550,000 19,003

148 600 0.035 -15.2 Exhaust Fan 1A& 16



# 0 Recoup

Flow 412,468

7,619

143 1,630 0.018 -0.55 

# 0 CoolerVent Stack 270,580

7,580

100 930 0.027 0.26 ,Inputs:

.. Biomass

- Natural Gas

- Fuel Oil
Cooler Zone1

Exhaust Fan 3A 

# ® 

# 0

Cooler Zone2



# 0


# 0 Cooler lndraftAir Zone 1 Zone 2/3 (FAN 3A) (FAN 38) 167,470 199,220 12,378 14,724

129 154 69 69 0.072 0.072 -2.1 -2.1 

# 0 Cooler Vent Stack

Cooler Zone3

Exhaust Fan 36

US Steel Minntac- Line 5 Hatch Project No. 332002 SK1
- Process Flow Diag.

# ~HATCH~

USS MINNESOTA ORE OPERATIONS NOx REDUCTION TECHNOLOGIES INQUIRY: H-332002-M-01 

### 1. Technical Questionnaire Name of Bidder/Proposal No.: Date ofProposal: Contact's Name: Contact's Phone Number Contact's E-Mail Address Type of NOx emission reduction technology proposed. Expected NOx reduction efficiency(%). Preliminary list ofcapital equipment included in proposal. Preliminary cost ofcapital equipment included in proposal. Estimate ofequipment installation cost included with proposal. Estimate ofoperating cost, incl. chemicals included in proposal. Annual maintenance cost included with proposal. Operational improvements resulting from the installation ofNOx emission reduction equipmentdetailed in the proposal. Reduction ofotheremissions resulting from the installation of NOx emissions reduction equipmeint. -SOx -CO -Mercury

- Other (specify) Should low NOx burners be consided in addition to NOx emissions reduction equipment? Details ofproposed pilot system included in proposal. Details ofproposed CFD modeling outlined in proposal. Preliminary Project Schedule included with proposal offering.

1509001 US Sleel Minnlac · Seclion 00 43 40 10Technical Ouastion.Doc '1\7::,1 Wo!klngTogelher**~** SAFUY Yes Yes Yes Yes Yes
Yes

Yes Yes Yes Yes 

### Specification SECTION: 00 43 40.10 TECHNICAL QUESTIONNAIRE REV. 0, PAGE: 1

% No No No No No
No

% % % %
No No No No

©Hatch 2006/03 XUS Steel Minntac Hatch Project No.332002 November2, 2008

Urea Usage Requirements:

Urea Usage: 2NOx + (NH2J,CO + %02 = 2N2 + 2H2 0 + C02

470 lbs NOxlhr 7805 hrs/yr 3,668,350 lbs NOxlyr 1834 Ions NOxlyr

60 lbs urea/lb mole urea 31.6 lbs NOxllb mole NOx 2 lb moles NOxllb mole urea

Urea; 470 lbs NOxlhr I (31.61bs NOxl mole NOx) I (2 moles NOxl mole urea) • 60 lbs urea/ mole urea
Urea Solution:

NOx Removal:

NOx Removal Costs: ; 446.2 lbs urea/hr

50 % urea solution (by weight) 1.14 specificgravity 9.5 lbs total/gal 4.8 lbs urea/gal
93.9 gal/hr

1.6 gal/min 732,595 gal/yr

50% NOx removal efficiency (expected) 470 lbs NOx/hr (average level) 235 lbs NOxlhr removed 917 lons/yrremoved

$1.25 per gal urea (50% solution) $915,744 peryear $999 per ion NOx removed

### NALCO

### Mobotec~ U.S. SteelMinnesota Ore Operations MinntacIron PelletizingPlant Mt. Iron, Minnesota Nalco MobotecProposal08-0437 PreliminmyBudgetary 

# NALCO

# Mobotec~ November21, 2008



# U.S. SteelMinnesota Ore Operations MinntacIronPelletizingPlant Mt. Iron,Minnesota

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 

# ProposalNo. 08-0437 

# Nalco MobotecSystemTM For NOxReduction November 21,2008 PRELIMINARYBUDGETARY

Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 1 of 19

..

Confidential &Proprietary Information

.. Mailing Address: Post Office Box2025 Orinda, California 94563

This information is proprietaryand confidential and shall notbe copied, disclosed orshared with parties other than those addressed without specificwritten authorization by Nalco Mobotec. All state and federal laws governing such information, copywrites, and trademarks shall apply.All rights reserved.

### NALCO

### Mobotec~ US. SteelMinnesota Ore Operations MinntacIron PelletizingPlant MI. Iron, Minnesota Nalco MobotecProposal 08-0437 

### TheNalco Mobotec SolutionPreliminaryBudgetmy November21, 2008



### Nalco Mobotec is currently preparing to perform a CFD modeling study of the Minntac pelletizing line #5. This preliminary budgetary proposal outlines the mostly likely solutions for optimum NOx reduction for the pelletizing line. Testing or modeling of the unit has yet to begin. Without performing the initial HVT testing as a minimum, the solutions outlined in this proposal are extremelypreliminary and subjectto change after testing and modeling. This proposal outlines the likely Nalco Mobotec Systems required to meet the NOx reduction goals at Minntac. Include are briefdescriptions ofthe Rotamix System and ROFA System, as well as expectedperformance. Apreliminary general arrangement oftheNalco Mobotec System is included as Exhibit 1. 

### A proposal for a mercury capture demonstration test using MerControl and a combination ofMerControl and Activate Carbon Injection (ACI) is included in Exhibit2. 

### TheNalco Mobotec Rotamix Description The Rotamix System for NOx reduction consists ofa reagent delivery system including a liquid concentrate urea storage tank, urea transfer pump skid, urea dilution (batch mixing) tank, urea metering pump skid, and delivery lines. The delivery lines traverse the kiln up to the Rotamix injection lances. The dilution water and reagent are mixed inside the Rotamix urea dilution tank, and the dilutedurea is delivered to the injection lances through the urea meteringpump skid. All urea tanks and piping shall be heat traced and insulated. The Rotamix injectors consist of delivery air, cooling air, humidification water, and dilutedreagentmixture. Through automation and on-site tuning, the Rotamix System preferentially introduces reducing chemicals where the temperature is most favorable for pollution reduction. This considerably reduces chemical consumption and lowers chemical slippage by increasing the efficiency of reactivity through mixing. Relative to other SNCR systems, Rotamix can decrease recurring chemical costs by up to 50%. The Rotamix System is sufficiently flexible to utilize ammonia and/orurea for NOx control. The Nalco Mobotec Rotamix (SNCR) System is designed to run year around. Minor maintenance maybe required, such as keeping the injection lance nozzles clean, but shut downs will not be necessary to keep the system operational. Some ofour customers that operate our Rotamix System year round schedule their major unit outages once every eight years. Annual maintenance cost is expected to be minimal.

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 2 of 19 ••Confidential &Proprietary Information** Mailing Address: Post Office Box 2025 Orinda, California 94563

This Information Is proprietaryand confidential and shall not be copied, disclosed or shared with parties otherthanthoseaddressed without specificwritten authorization by Nalco Mobotec.All stale and federal lawsgoverning such information, copywrites, and trademarks shall apply.All rights reserved.

### NALCO**Mobotec~** U.S. SteelMinnesota Ore Operations MinntacIron PelletizingPlant Mt. Iron, Minnesota Nalco Mobotec Proposal 08-0437 PreliminaryBudgetary November21, 2008 

### The major equipment for the urea concentratedreagentfeed, metering, dilution, distribution, and kiln injection system are: Rotamix Fan

- The Rotamix fan is sized to use a small amount of ambient air to deliver the reagent into the furnace and requires a small motor. The Rotamix fan shallbe approximately 15 HP. Urea Injection Devices

- The urea injection lances are used to inject urea and water into the preheater. Location ofthe lances is determined by CFD modeling. Urea Tank- The urea storage tankwouldbe an open vented tank ofFRP construction. UreaDilution Tank- The dilution tank wouldbe an openvented tank ofFRP construction. Urea Transfer Pumps

- The urea pumps are multi-stage centrifugal pumps for transfer the urea from the urea storage tank to theurea dilutiontank. Urea Metering Pumps

- The urea pumps are multi-stage centrifugal pumps for transfer the urea from the urea storage tankto the urea dilution tank. Urea and WaterFilters- The filter elements are polypropylene with a I micronrating. The filter housing is constructed ofstainless steel. Water Pumps -There are two multi-stage centrifugal pumps on each skid for dilution and humidification water. The utility requirements are:

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 

### • Air: 80-100 psig supplypressure (clean, dty, oil free) • Electrical (typical): o FanMotor, 480 V, 3phase, 60Hz o Pump Motors, 480 V, 3phase, 60 Hz o Pump Motors, 230/460 V, 3phase, 60 Hz o DamperMotors, 120 V, Single phase, 60 Hz o Instrument, 110 V, Single Phase, 60Hz o Heattracing, 110 V, Single Phase, 60 Hz o Enclosures: NEMA4 Physical Address: 2540 Camino Diablo, Suile 200 Walnut Creek, California 94597-3933 Page 3 of 19 ••eonfidenUal &ProprietaryInformation** Mailing Address: Post Office Box 2025 Orinda, California 94563

This information is proprietaryand confidential and shall not be copied, disclosed orshared with parties otherthan those addressedwithoutspecificwritten authorization by Nalco Mobotec.All slate and federal lawsgoverning such information, copywrites, and trademarks shall apply.All rights reserved.

## NALCO**Mobotec~** U.S. SteelMinnesota Ore Operations MinnlacIron PelletizingPlant Mt. Iron, Minnesota Nalco Mobotec Proposal 08-0437



### • Urea: PreliminmyBudge/my



### o 40%-50% (wt) Urea o 2.5-4gpm • Demineralizedwater for dilution • Service waterfor humidification 

### Nalco Mobotec ROFA System November21, 2008



### Rotating Opposed Fired Air, or ROFA, is a state-of-the-art furnace staging and NOx reduction system. The bulk flow upward through the furnace is set in rotation with custom-designed strategically placed airnozzles. The overall effect is increased turbulent mixing andbulkrotation in the entire furnace. This improves gas temperature distribution, species distribution, heat absorption, CO oxidation, andparticle burnout in the upper furnace. Mixing and rotation prevents bulk laminar flow and enables the whole volume ofthe furnace to be used more effectively for the combustion process, as well as the sorbent mixing process. The ROFA swirl reduces maximum reaction temperature, reduces NOx formation, bums out carbon more efficiently, and increases convective heat absorption, which in combination may improve the overall kiln efficiency. By mixing the combustion air more effectively, ROFA also reduces the need for surplus excess air. This results in less cooling of the furnace due to unused combustion air, further increasing heat absorption efficiency. The ROFA boxes are strategically placed along the furnace walls to optimize NOx reduction and combustion intensity. Ultimately, the performance and functionality ofROFA System works in conjunction with and is dependant on the overall furnace geometry and operation. The ROFA air is thereby injected in a manner which creates a rotational flow in the combustion zone. The ROFA Systemresults inthe following combustion improvements: 1> Reduced oxygen availability in theprimmy combustion zone, reducing the opportunityfor NOx formation. 

### 1> Turbulent mixing in middle and upperfirrnace region allowing completion ofthe combustion process in this secondaryzone, reducingLOIandCO levels 

### 1> More uniform temperature profile and heat distribution in the middle and upperfirrnace, reducingthermalstress andimproving kiln efficiency. 

### 1> Evening offirel-air distribution reducingpockets oflow 02 andhigh CO/combustibles, allowing the unit to be operatedat/owerlevels of excess 02 for improvedefficiency.

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, Caiirornia 94597-3933 Page 4 of 19 uconfidential &Proprietary lnformationu Mailing Address: PostOffice Box2025 Orinda, California 94563

This information is proprietaryand confidential and shall nol be copied, disdosed orshared with parties otherthan thoseaddressedwithout specificwritten authorization by Nalco Mobotec. All state and federal laws governing such information, copywrites, and trademarks shall apply.All rights reserved.

# ~~6£~c~ U.S. SteelMinnesota Ore Operations MinntacIron PelletizingPlant Mt. Iron, Minnesota Nalco Mobotec Proposal 08-0437 PreliminmyBudgetary November21, 2008
ROFA Fan- 

### the ROFA fan(s) are sized to deliver the approximate equivalent of 10% ofthe total air flow. The ambient air supply to the ROFA fan is controlled by an inlet vane or louver damper, and the air to the burners will be subsequently reduced via the control system to ensure that equivalent total air flow remains constant. The ROFA design may entail mounting ofthe fans onthe kiln. ROFANozzles The ROFA nozzles are designed and engineered by Nalco Mobotec. The boxes are designed to minimizepressure drop throughout the dueling system, and deliverhigh velocity air into the kiln. The ROFA boxes are located on the kiln based on furnace geometry and CFD modeling. Nalco Mobotec expects approximately 4-8 ROFAnozzles. The utilityrequirements are:
• Electrical (typical): o FanMotors, 480 V, 3phase, 60 Hz 

### Nalco MobotecBurner Modifications Nalco Mobotec shall investigate the potential for modifying the existing burners for further NOx reduction through staging. This will be studied during the CFD modeling stage. Burner modifications are not included in the cutTen! performance and pricing; however, the expectation wouldbeto achieve another 10%NOxreduction with minimal cost (in comparison to the overall project costs). 

### Nalco Mobotec System Expected Performance Nalco Mobotec expects to reduce NOx emissions significantly. The numbers below represent our expectedperformance, subject to change during testing andmodeling.

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 

### Nalco Mobotec System Expected % Reduction Rotamix System 35-55% ROFA System 10-20% Additional

Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 5 of 19 '*Confidential &Proprietary Information*" Mailing Address: Post Office Box2025 Orinda, California 94563

This Information is proprietaryand confidential and shall notbe copied, disclosed orshared with parties otherthan thoseaddressed withoutspecificwritten authorization by Nalco Mobofec. All slate and federal lawsgoverning such information, copywrites, and trademarks shall apply. All rights reserved.

### NALCO**Mobote-c~** US. SteelMinnesota Ore Operations MinntacIron PelletizingPlant MI. Iron, Minnesota Nalco MobotecProposal08-0437 PreliminaryBudgetary 

### Nalco Mobotec SystemExpected Schedule November 21, 2008



### The functional activities listed below maybe performed concurrently in many cases. Overall project length is expected to take 8-12 months upon completion ofCFD modeling. Engineering and Design

- Equipment Supply

- Installation

- Commission/Start-up Tuning & 

### Optimization 20-26weeks 26-30weeks 4-8weeks 2-4weeks 4-6weeks 

### Nalco Mobotec System Costs Nalco Mobotec offers the following pricing for the engineering, equipment, controls, guarantee, and startnp ofthe Nalco Mobotec System. Equipment installation is not included in the Nalco Mobotec scope ofsupply. Nalco Mobotec pricing is subject to all terms listed in the "Proposal Notes" section that follows this proposal. All 

### pricingisperunit.

Nalco Mobotec Rotamix System Mechanical Installation, budgetary

Nalco Mobotec ROFA/Rotamix System Mechanical Installation, budgetary

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 6 of 19 ••eonfidenUal &Proprietary Information*" 

### Cost $1,327,620 $ 325,350 Cost $2,227,332 $ 599,850

Mailing Address: Post Office Box2025 Orinda, California 94563

This information Is proprietaryand conftdential and shall notbe copied, disclosed orshared with parties otherthan those addressed withoutspecificwritten authorization by Nalco Mobolec. AU state and federal laws governing such information, copywrites, and trademarks shall apply.All rights reserved.

## NALCO**Mobotec~** U.S. SteelMinnesota Ore Operations MinntacIronPelletizingPlant MI. Iron, Minnesota Nalco Mobotec Proposal 08-0437 PreliminaryBudgetary November 21, 2008 

## Exhibit 1: GeneralArrangement ofNalco Mobotec System

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 7 of 19 *'Confidential &Proprietary Information** Mailing Address: Post Office Box 2025 Orinda, California 94563

This Information is proprietaryand confidential and shall not becopied, disdosed or shared with parties otherthan those addressed withoutspecificwritten authorization by Nalco Mobotec. All state and federal lawsgoverning such information, copywrites, and trademarks shall apply. All rights reserved.

## (Preliminary)

Rotamix 

### Urea Transfer Pump Skid**~otamix** 

### Damper
-------- Diluted Urea Tank

Rotamix 

### Fan Pump Skid

Rotamix Ports (x24, 3 walls)

lAFan

Waste Gas 

# r ;: Ustack ROFA NOZZLES (x8)



### 18 Fan ROFA FAN (x2) 

### Kiln Mounted

Cooler Zone 1 I Cooler Zone 2 I Cooler Zone 3

### NALCO**Mobotec~** US. SteelMinnesota Ore Operations MinntacIron PelletizingPlant MI. Iron, Minnesota Nalco MobotecProposal 08-0437 PreliminaryBudgetary November 21, 2008 

## Exhibit2: Nalco Mobotec MerControl/ACI Demonstration Test Nalco Mobotec proposes the demonstration of two mercury capture technologies, MerControl and MerControll ACI, to determine the optimum combination for achieving a high level of mercury capture at U.S. Steel Minntac. MerControl Technologv 

### MerControl is a method ofcapturing mercmy, which includes injecting a molecular halogen or thermolabile molecular halogen precursor, such as calcium hypochlorite or calcium bromide, able to decompose to form molecular halogen at flue gas temperature. The molecular halogen converts elemental mercury to mercuric halide, which is absorbable by alkaline solids such as sub bituminous or lignite coal ash, alkali fused bituminous coal ash, and dry flue gas desulphurization solids, capturable in whole or part by electrostatic precipitators (ESPs), baghouses (BHs), and fabric filters (FFs), with orwithout subsequent adsorption by a liquid such as a flue gas desulphurization scrubbing liquor. In essence MerControl is a patented technology (exclusively licensed to Nalco Mobotec) that covers the injection ofan oxidizer into the furnace to aid mercmy oxidation, increasing formation ofparticulate mercury and subsequent capture rates across the existing ESP. ActivatedCarbon Injection 

### The U.S. Environmental Protection Agency recognizes Activated Carbon Injection as the most widely used andwidely studied method ofcapturing mercury. Powdered Activated Carbon is injected into the correct temperature zone prior to the gas reaching the backend particulate collection device. The carbon binds with the mercury in the gas in the duct and in the particulate collection device. Used in combination with MerControl, Nalco Mobotec expects to achieve a high level ofmercury capture atU.S. Steel Minntac. 

### Description ofProposedDemonstration The mercmy capture demonstration will be separated into three distinct testing phases, with each test lasting two weeks in duration. The first test will establish the baseline mercmy capture. After the baseline testing, the equipment required for the MerControl and ACI injection systems shall be installed. In order to minimize the costs for this demonstration test, Nalco Mobotec proposes to utilize our temporary test equipment for the storage, transfer and injection ofthe MerControl and ACI into the kiln. 

### This temporary equipment will be removed upon the completion ofthe test program. The halogen that will 

### be used for testing is calcium bromide. The system would be
Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 9 of 19 uconfidentlal &Proprietary lnformationH Mailing Address: Post Office Box 2025 Orinda, California 94563

This Information is proprietaryand confidential and shall not be copied, disclosed or shared with parties otherthan thoseaddressed without specificwritten authorization by Nalco Mobolec. All state and federal laws governing such information, copywrites, and trademarks shall apply.All rights reserved.

# ~~~£~c~ U.S. SteelMinnesota Ore Operations MinntacIron PelletizingPlant Mt. Iron, Minnesota Nalco MobotecProposal 08-0437 PreliminaryBudgetary November21, 2008 commissioned, tuned, evaluated and tested over a demonstration period of four weeks, two weeks for MerControl andtwo weeks for MerControl and ACL 

### Demonstration Test Goals 1. DemonstrateMercuty Capture The mercury emission level will be determined by EPA Method 30B carbon trap sampling during the test period and the analysis will be performed by Nalco Mobotec. The input mercury level will be determined by the coal mercury content in ppmw as determined by an independent laboratmy combined with the calculated fuel input and the mass & energy balances for the unit obtainedfrom plant data. 2. Kiln Operation Demonstrate no adverse effects on current kiln operations due to MerControl and ACI injection into the furnace. 

### Nalco Mobotec Demonstration Tasks The following list of tasks is intended to provide a snapshot look at the major tasks to be accomplished byNalco Mobotec andU.S. Steel during themercury capture demonstration. A.Two weeks ofbaseline mercury capture testing. B.Furnish the temporary equipmentfor halogen storage, transfer and injection. C. Install ACI device in ductprior to the scmbber. D. Furnish the temporary equipment for Activated Carbon (AC) storage, transfer, and injection. E. Furnish and deliver the halogento the site. F. Furnish and deliverACto site. G. Perform system start-up, tuning and optimization. H. Conductmercury capturetesting for two weeks ofMerControl. I. Conductmercury captme testing for two weeks ofMerControl/ACI. J. Submit a technical report ofthe results. 

### Nalco Mobotec Demonstration Schedule Nalco Mobotec is preparedto begin the demonstrationproject immediately. The first step is the baseline testing at the plant, which will be schedule as soon as practical afternotice to proceed. BaselineTesting Engineering
Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 2 weeks 4weeks Physical Address: 2540 Camino Diablo, Suile 200 Walnul Creek, California 94597-3933 Page 10of19 **Confidential &Proprietary Information•• Mailing Address: Post Office Box 2025 Orinda, California 94563

This information is proprietaryand confidential and shall notbe copied, disclosed orshared with parties otherthan those addressed without specific written authorization by Nalco Mobotec.All state and federal laws governing such information, copywrites, and trademarks shall apply.All rights reserved.

# ~t~~t~c~ U.S. SteelMinnesota Ore Operations Minntac IronPelletizingPlant MI. Iron, Minnesota Na/coMobotecProposal08-0437 Prelimina/yBudgela/y Installation (mechanical and electrical) CommissionMerControl MerControlTesting CommissionACI MerControl/ACI Testing Report and Technical Presentation 1-2 weeks 1 week 2 weeks 1 week 2 weeks 4 weeks 

### Scope ofSupply andDivision ofResponsibility November21, 2008

The following list ofdeliverables is intended to convey the scope ofsupply that is included in the pricing for the mercmy capture demonstration.

Item Description Engineering P&ID Temporary equipment arrangement drawings Temporary equipment electrical requirements Prepare and submit a technical report upon completion ofdemonstration Mobotec-furnished equipment Temporary set oftest equipment that includes: Temporary halogen (Ca8r2) storage tank Temporary halogen (Ca8r 2) metering pumps and piping Halogen (Ca8r2) forthe defined demonstration period Temporary AC storage silo TemporaryAC feed and injection system AC for the defined demonstration period Field instrumentation Onsite support Job trailer onsite Demonstration test manager onsite Equipment functional testing System tuning and optimization On site mercury measurement via EPA 308 carbon trap sampling On site mercury analysis during baseline, tuning and optimization of system Coal and ash analysis sample collection for mercury content during baseline, tuning and ootimization Items furnished by others 

### I Halogen unloading from truck to tank
Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 11 of 19 uConfidential &Proprietary lnformaUon*" Furnished by Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec Nalco Mobotec
US Steel Minntac Mailing Address: Post Office Box 2025 Orinda, California 94563

This information Is proprietaryand confidential and shall not be copied, disclosed orsharedwith parties otherthan those addressed without specificwritten authorization by Nalco Mobo!ec. All slate and federal laws governing such Information, copywrites, and trademarks shall apply. All rights reserved.

### NALCO 

# Moootec**~** U.S. SteelMinnesota Ore Operations MinntacIron PelletizingPlant Mt. Iron, Minnesota Nalco MobotecProposal08-0437 PreliminaryBudgetary

Item Description AC unloading to storage silo Coal and ash analysis for mercury content during demonstration testing On site mercury measurementvia EPA 308 carbon trap sampling during performance testino Mercury continuous emission monitor (if elected) Mechanical installation oftemporary piping Electrical installation oftemporary injection system equipment Electrical equipment and service (MCC, starters, disconnects, wire, conduit, etc.·) Modifications to power system ifrequired to accommodate new motors Refractory Configuration and programming ofexisting DCS ifrequired Provide site area for equipment receiving and storage prior to installation Coal and ash sample collection during demonstration testing Plant historical data for demonstration period November 21, 2008
Furnished by US Steel Minntac US Steel Minntac US Steel Minnlac US Steel Minntac US Steel Minntac US Steel Minntac US Steel Minntac US Steel Minntac US Steel Minntac US Steel Minntac US Steel Minntac US Steel Minntac US Steel Minntac 1. 

### Nalco Mobotec will furnish and deliver to the U.S. Steel Minntac the defined predetermined supply ofhalogenrequired for the full length ofthe demonstration. 2. Nalco Mobotec will furnish and deliver to the U.S. Steel Minntac the defined predetermined supply ofAC required for the full length ofthe demonstration. 3. During the baseline testing, systemtuning and optimization, and demonstration testing Nalco Mobotec will provide EPA Method 30B carbon trap sampling and analysis to measure mercury levels. During the initial weeks ofthe demonstration, the carbon trap analyzer will be setup on site to allow prompt feedback ofresults during tuning and optimization ofthe system. Once the system is optimized, carbon trap samples will be taken periodically on the stack at a location similar to that ofa mercury analyzer. These traps will be analyzed on site byNalco Mobotec. 4. The performance goals for this demonstration test are based on the percentage ofmercury capture from the input levels ofthe fuel-bound mercury. Thus whenever carbon traps are being taken it will also be necessary to capture coal and ash samples representative ofthe current operating conditions. These coal and ash samples will be sent out to an independent laboratory to analyze their mercury content. If U.S. Steel wishes to include continuous mercury monitoring during the demonstration, Nalco Mobotec will assist in processing the data collected by the CEMS. We caution, however, that the available CEMS technology

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suile 200 Walnut Creek, California 94597-3933 Page 12of 19 **Confidential &Proprietary Information*' Mailing Address: Post Office Box 2025 Orinda, Calirornia 94563

This Information Is proprietary and confidential and shall notbe copied, disclosed orshared with parties other than thoseaddressed without specificwritten authorization by Nalco Mobotec.All state and federal laws governing such Information, copywrites, and trademarks shall apply. All rights reserved.

## NALCO**Mobotec~** U.S. SteelMinnesota Ore Operations MinntacIron PelletizingPlant Mt. Iron, Minnesota NalcoMobotecProposal 08-0437 PreliminaryBudgetary November21, 2008 requires a high-level ofattention to assure proper functionality. A trained CEMS technician would need to be assigned virtually full time for such data to be useful for perfonnance evaluation. Even ifa mercury-CEMS is inplace during the demonstration, evaluation ofthe halogen system performance for testing confirmationpurposes willbebased onthe data from the carbontrap analysis and corresponding coal sample analysis. 

### Nalco Mobotec System Costs Nalco Mobotec pricing is subject to all terms listed in the "ProposalNotes" section that follows this proposal. Cost Nalco Mobotec MercmyCapture Demonstration $298,679
Note: Final installation ofthe MerControl System shall require a licensing agreement between U.S. Steel andNalco Mobotec.

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 13of 19 uconfidentlal &Proprietary Information** Mailing Address: Post Office Box2025 Orinda, California 94563

This Information Is proprietaryand confidential and shall not be copied, disclosed orsharedwith parties otherthan those addressed without specificwritten authorization by Nalco Mobotec. All stale and federal laws governing such Information, copywrites, and trademarks shall apply. AU rights reserved.

# ~~~~t~c~ U.S. SteelMinnesota Ore Operations MinntacIron PelletizingPlant Mt. Iron, Minnesota Nalco Mobotec Proposal08-0437 

### Proposal

### Notes Pre/iminmyBudgetary November 2I, 2008


### 1. All prices quoted are in USD, and do not include sales tax nor any special or extraordinary taxes, permits, fees, or applicable duties. 2. All pricing terms of this proposal shall remain valid for 60 days from the date of this proposal. Nalco Mobotec reserves the right to include escalation costs ifincmTed during this time period. Any breakdown of pricing following this proposal shall be for accounting purposes only and not for line-item sale. 3. Nalco Mobotec System pricing is subject to escalation, utilizing 50% via Producer Price Index 3312, Steel Product Manufactured From Purchased Steel, and 50% via Producer Price Index 54133, Engineering Services. The start ofescalation will be determined based on the project schedule. The base index will consist ofthe three month average beginning in the month the escalation starts. Escalation will continue until the month in which the last piece ofmajor equipment is purchased for the project. The ending index will consist ofthe three month average ending with the month in which the escalation ends. The contract price will be adjustedusing the simple percentage method: Original ContractValue for Nalco Mobotec System x (Ending Index/Base Index). The index will be not be adjusted seasonally. The index adjustment shall use the latest version ofthe PPI data published as of the date the escalation ends. The price adjustment to account for escalation shall be made following the 181 h 

### day ofthe month preceding the end ofescalation. Index data shall be as per the Bureau of Labor Statistics PPI indexes noted herein, and as published on the BLS website (www.bls.gov/ppilhomelhtm). In the rare case that the index drops, pricing shall remain unchanged. Escalation will be invoiced net 30 days, after the final escalation cost is determined. 4. Perf01mance guarantees and pricing are based on stated and available information as described herein. Nalco Mobotec reserves the right to adjust guaranteed and expected performance prior to commencement ofequipment procurement and installation and prior to completion ofmodeling and preliminary engineering analysis. 5. U.S. Steel Minntac shall provide all temporary trailer power and power sources for use at site. 6. U.S. Steel Minntac shall supply office space and temporary toilets for Nalco Mobotec on-site personnel. 7. Designand specification ofNalcoMobotec System shall be byNalco Mobotec. 8. Nalco Mobotec does not recommend operating equipment, existing or new, above the manufacturer's nameplate rating. The Nalco Mobotec technology is designed to operate within acceptable designparameters. 9. Nalco Mobotec System installation may block some walkways. Walkways will be relocated wherereasonably feasible. Additional platforms are not included in this proposal.

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 14 of 19 **Confidential &Proprietary lnformatlonH Mailing Address: Post Office Box 2025 Ortnda, California 94563

This information is proprietaryand confidential and shall notbe copied, disclosed or shared with parties otherthan those addressedwithout specificwritten authorization by Nalco Mobotec. All state and federal laws governing such information, copywrites, and trademarks shall apply. All rights reserved.

# ~~~~~c~ US. SteelMinnesota Ore Operations MinntacIron PelletizingPlant Mt. Iron, Minnesota Nalco MobotecProposal 08-0437 PreliminaryBudgetary November21, 2008 

### 10. Kiln outer casing cutouts will be limited to no more than one foot outside the line ofRotamix box installation. 11. All foundations assume a 3-foot re-enforced slab foundation. 12. IfNalco Mobotec furnishes a process control system to control the Nalco Mobotec Systems, Nalco Mobotec's scope ofsupply includes the control systemhardware, software, application programming and wiring diagrams. Installation and wiring ofthe control system is excluded. 13. The Nalco Mobotec-furnished process control system (PCS) (if selected) will require interface to existing kiln control system. The PCS can be interfaced via hardwired signals or a Modbus data communication link. Nalco Mobotec to provide all necessary infmmation for integration with existing control system and equipment. Owner to make available the required signals and perform any necessary integration I 

### tie-in work with existing plant controls and instrumentation. Typical signals required include kiln steam flow as a load index, combustion air flows, wind box pressure, 02 and unit-specific emissions data (CO, NOx, S02,PM, and opacity). 14. Control and instrumentation devices needed shall be as identified and furnished by Nalco Mobotec. 15. Electrical: Nalco Mobotec's proposal does not include electrical engineering, design, equipment and installation. Nalco Mobotec will furnish electrical requirements and details for all Nalco Mobotec-furnished equipment, and will provide technical assistance to U.S. Steel Minntac for electrical design and installation issues. 16. Hazardous materials handling, removal or abatement and paint removal to be provided by others. 17. Duct supports to be tie rods with strategically located sway bracing. Flexible fabric and metal expansionjoints and /or spring hangers will be used where determined necessary by Nalco Mobotec and as detailed byNalco Mobotec. 18. Nalco Mobotec will perform duct layout and routing. All routings will be done in the most efficient manner possible over the shortest distance possible to avoid significant pressure loss. Although Nalco Mobotec will endeavor to avoid interferences, obstructions or conflicts may occur. Design and re-location ofinterferences is not included in this proposal and shall bebyothers. 19. Nalco Mobotec has not included new access platforms or modifications to existing access platforms as part ofthis proposal. 20. Structural members and ductwork provided by Nalco Mobotec shall be furnished painted. Equipment skids 

### I equipment to be furnished with standard factory finish. Touch up paint, including ductfield weld areas, is excluded. 21. Nalco Mobotec has not included Rotamix manual valves, fittings, tubing, and piping. Rotamixmanual valves, fittings, tubing, and piping shall be field run and provided by others.

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo. Suile 200 Walnut Creek, California 94597-3933 Page 15 of 19 uconfidential &Proprietary Information*' Mailing Address: Post Office Box2025 Orinda, California 94563

This Information is proprietary and confidential and shall not be copied, disclosed orshared with parties otherthan those addressed without specificwritten authorization by Nalco Mobotec. All state and federal laws governing such information, copywrites, and trademarks shall apply. All rights reseiVed.

## NALCO**Mobotec~** U.S. SteelMinnesota Ore Operations MinntacIronPelletizingPlant Mt. Iron Minnesota Nalco Mobotec Proposal08-0437 PreliminaryBudgetary November 21, 2008 22. All existing kiln systems and equipment are assumed by Nalco Mobotec to be in proper operating order. Nalco Mobotec shall notberesponsible for equipment not supplied byNalco Mobotec. 23. Nalco Mobotec will require a shutdown for a minimum duration of3 weeks for kiln tie-in work. 24. Nalco Mobotec system tuning will require operation at various loading conditions over short time durations. Tuning will require estimated three to six week duration perkiln. Additional tuning time beyond six weeks duration due to schedule impacts, delays or changes caused by others will be chargedto U.S. SteelMinntac at an additional $16501 technician day. 25. In the event that one or more U.S. Steel Minntac kiln systems are not performing in accordance with manufacturers recommendations Nalco Mobotec System testing and completion for retention acceptance shall be performed at the most reasonable 

### I stable 

### I recordable operating level. Upon completion oftesting, retention monies shall be paid as if all work is complete. Work remaining for tuning at other loads, if still necessary, will be rescheduled in accordance with contractte1ms. 26. Nalco Mobotec will establish the testing protocol for performance acceptance testing. U.S. Steel Minntac to provide testing services to confirm final results and performance. Nalco Mobotec and U.S. Steel Minntac tojointly review and approve all fuel to be used for testing purposes. 27. Should Nalco Mobotec not meet guarantees during the performance test, Nalco Mobotec reserves the right to correct any shortfalls discovered during testing and re-mn the test. One re-test will bepermittedwithoutpenalty. 28. Changes to kiln operation (02 curve, bruner flows, mill biasing, etc) shall not be made between baseline and Nalco Mobotec Systems "ON" without input from Nalco Mobotec personnel. 29. In the event that other U.S. Steel Minntac system changes 

### I revisions are implemented concurrent with Nalco MobotecSystem improvements the following conditions shall apply: Unstable orincorrect unit operation necessitating additional Nalco Mobotec tuning time shall be compensated in accordance with the terms identified. Unstable or incorrect unit operation extendingbeyondNalco Mobotec's identified tuningperiod shallvoid all penalty te1ms. 

### 30. U.S. Steel Minntac is to review all Nalco Mobotec drawings for acceptance. 31. CEMS S02, NO., CO meters and kiln 0 2 analyzer are required to be operational during unit tuning. This equipment or further additional emissions monitoring equipment is not included in this proposal.

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 16 of 19 '*Confidential &Proprietary Information** Mailing Address: Post Office Box2025 Orinda, California 94563

This information is proprietaryand confidential and shall notbecopied, disclosed orshared with parties otherthan those addressed withoutspecificwritten authorization by Nalco Mobolec.All slate and federal lawsgoverning such Information, copywrites, and trademarks shall apply. All rights reserved.

### NALCO

### Mobotec~ U.S. SteelMinnesota Ore Operations MinntacIron PelletizingPlant Mt. Iron, Minnesota Nalco MobotecProposal 08-0437 PreliminaryBudgetary 

### General Terms and Conditions

Nalco Mobotec, Inc. ("Contractor") November21, 2008

I. THE PROGRAM: Contractor shallbe responsible for reasonable diligence and care in providing its services ( 11Services") and equipment, materials, products, parts, components and other items (11Equipment") setforth in the Agreement. Customeracknowledges thattheultimate success ofthe Services setforth in the Agreement is dependentuponthe Customerfulfilling its obligations under theAgreementandin accordance with Contractor's instructions. Contractorshallnot be liable for anyfailure to fulfill Contractor's obligations including anywarranties and/orperformanceguarantees causedby Customer's lack ofdiligence orfailure to follow Contractorinstructions. 2. ACCEPTANCE: Customeraccepts all oftheterms and conditions set forth in this Agreement, andagrees that any additional or different terms or conditions contained in Customer's purchase orders or other documents shall not modify this Agreement, notwithstanding any acknowledgmentor acceptance ofsuch documentsby Contractor. 3. PRICEAND PAYMENT: (a) ifpricingisnot set forth elsewhere in this Agreement, then the price for anyorder shall be theprice in effecton the date ofacceptance ofthe orderby Contractor. (b) Payment te1ms shallbenet 30 days unless specificallychanged elsewhere in this Agreement, andpayment shall be inlawfulmoneyoftheUnited States, withoutdeduction oroffset. Past due invoices are subject to a late fee equal to the lesserofone andone-halfpercentpermonth or thehighestratepermitted bylaw. 4. FREIGHT.TITLE AND TAXES: Unless othenvise specified in this Agreement, Equipment shall be shipped F.O.B. Customer's facility, and title andriskofloss ordamage shall pass to Customer uponContractor's tenderof the Equipment at Customer's facility. Shipping and delivery dates are approximate and subject to confirmation. Prices exclude and Customer shallpay any applicable sales, use, excise, VAT, GST, export and import taxes, assessments and similar fees. Customer shall make anynecessary arrangements for importationofthe Equipment into a count1y other than the United States. 6. FORCEMAJEURE AND SHORTAGES: Neitherparty shallbeliable for anyfailure ordelay in performance (other than payment) which is due, in wholeor inpart, to anycause ofany nature beyond the reasonablecontrolof the partyaffected. Ifthere areEquipment shortages for anyreason, Contractormay allocate the available supply of Equipmentamong itself, its affiliates andits customers onwhateverbasis it deems practical. 7. WARRANTIES AND LIMITATION ONLIABILITY: (a) Contractor warrants that equipment manufactured by Contractor and supplied hereunder shall be free from material defects in workmanship and materials for a period equal to the lesser of 15 months from the date of shipment or 12 months from the date of installation. Contractor's liability under this warranty is limited to repair orreplacement ofitems proven to be defective. Equipment, which is notmanufactured by Contractor, is subject to the original manufacturer's warranty. (b) Contractor warrants that Services provided will be performed in a good and workmanlike mmmer. Contractor will perform such Services in accordance with sound generally accepted practices in effect at the time of performance. (c) Contractor warrants that the Equipment and Services itselfdoes not, at the time ofdelivery, infringe any patent ofthe United States. Customer shall give Contractor prompt written notice ofany patent infringement suit or claim, Contractorshall control the defense orsettlement ofsame, and Customer shall cooperate in such defense. Contractor's liability under this warranty is limited to such defense, and, if sale or use ofthe Equipment or Services is enjoined, refund ofthe price paid by Customer for such Equipment or Services (less a reasonable charge for use, damage and obsolescence). Contractor makes no warranty against patent infringement arising out ofCustomer's particular use ofthe Equipment, alone or in**combinat~on** with other materials; any equipment resulting from such use; any equipment or product manufactured for Customer according to Customer's specifications; or any equipment (including components and ingredients) manufactured by other than Contractor. Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek. California 94597-3933 Page 17 of 19

..Confidential &Proprietary Information•• Mailing Address: Post Office Box 2025 Orinda, California 94563

This information Is proprietaryand confidential and shall not be copied, disclosed orshared with parties otherthan thoseaddressed withoutspecificwritten authorization by Nalco Mobotec.All state and federal laws governing such information, copywrites, and trademarks shall apply. All rights reserved.

# ~~G;t~c~ US. SteelMinnesota Ore Operations MinntacIronPelletizingPlant Mt. Iron, Minnesota Nalco MobotecProposal08-0437 PreliminaryBudgetary November 21, 2008 (d) Because many factors affectEquipment application andperformance andquality ofServices, Contractor will be relying on information provided by Customer concerning its facility, operations and systems to provide Services. Customer shall be responsible for the accuracy of the information provided to Contractor, and Contractor assumes no liability or obligation for any technical advice, services or products provided by Contractorbased on inconect information from Customer. Customer is responsible for designating appropriate places inits facilities andprocesses for delivery, storing and installing Equipmentand conductingrelated testing activities. (e) Contractor shall not be liablefor any incidental, consequential, indirect or specialdamages, including, but not limited to, lostprofits and lost production, whether arising under breach ofwarranty or contract, negligence, strictliability or other tort, indemnity or any othe1· the01y of liability. In any event, Contractor's liabilityfor any andallclaims, damages andcauses of action arisingout of thesale, use, storage, delive1y or non-delive1y of any Equipment,performance of any Services or any warranty shall be limited to theprice (includingfreight charges 

### if paidby Customer)paid to Contractorfor such Equipment orServices. In no eventshall Contracto1·'s liability for anyliquidateddamages exceed10% of theprice undertheAgreement. (f) EXCEPTFOR THE TITLE WARRANTY, THE FOREGOING WARRANTIESARE EXCLUSIVEAND CONTRACTOR MAKES NO OTHER WRITTEN, ORAL, EXPRESS OR IMPLIED WARRANTIES. CONTRACTOR SPECIFICALLY DISCLAIMS THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CUSTOMER'S REMEDIES FOR BREACH OF ANY WARRANTYSHALLBELIMITED TO THOSEREMEDIESDESCRIBEDABOVE. 8. CONFIDENTIALITY: Customershallnot: (a) disclose to any third party and shallpreventthirdparties from obtainingorbecomingaware ofthe composition, design, operationorapplication oftheEquipment orany Services and the contents ofthis Agreement (collectively, the "ProprietaryInformation") without in each instance securing the priorwritten consentofContractor; or(b) use the Proprietary Information for anypurposeother than the purpose for which Contractorprovidedthe ProprietaryInformation to Customer. Customer shallnotbe liable for the use or disclosure ofinformationthat: (a) is alreadyin thepublic domain atthetime ofthe use ordisclosure; (b) becomes part ofthepublic domain through no fault ofCUSTOMER; (c) is disclosed to Customerby a third partyhaving the right to make such disclosure; or(d) is in the possessionofCustomerat the time ofdisclosurebyContractor. 9. INDEMNIFICATION: Contractor shall indemnify and holdharmless Customerfor all losses, liabilities, costs (including,butnot limited to, reasonable attorneys' fees), expenses and claims forpersonal injuryordeath, or tangibleproperty damage (collectively, the "Claims"), to the extentproximatelycaused by the negligence orwillful misconduct ofContractor. Customer shall indemnify and holdharmless Contractorfor all Claims to the extent proximately causedbythe negligence orwillful misconduct ofCustomer. In the event ofa Claim arising outofthe jointnegligence orwillful misconductofCustomer and Contractor, Customerand Contractor shallbeliable to each otherandto any damagedthirdparty in proportion to theirrelative degree offault. 10. INSURANCE: (a) Contractor agrees to procure and at all times maintain, for the duration ofthe contract, policies ofinsurance of the types and in theminimum amounts as follows: I. Statutory Workers' Compensation orits equivalent and Employers Liabilitywith minimum limits of $2,000,000 U.S. infull compliancewithall federal, province, state and/orlocal laws. 2. Occmrencebased Commercial General Liability Insurance with a minimumlimit of$2,000,000 U.S. Coverage shall includebroad form property damage, product/completed operations, independent contractors liability, blanketcontractual liability, personalinjury and employees as additionalinsured. 3. AutomobileLiability Insurance covering owned, non-owned and hired vehicles with a minimum limit of$2,000,000 U.S.

Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physlcal Address: 2540 Camino Diablo, Suite 200 Walnut Creek, California 94597-3933 Page 18 of 19 uConfidential &Proprietary lnformationu Mailing Address: ' Post Office Box 2025 Orinda, California 94563

This Information Is proprietaryand confidential and shall norbecopied, disclosed or sharedwith parties otherthan those addressed withoutspecificwritten authorization by Nalco Mobotec. All state and federal laws governing such information, copywrites, and trademarks shall apply.All rights reserved.

# ~~~~~c~ U.S. SteelMinnesota Ore Operations MinntacIron PelletizingPlant Mt. Iron, Minnesota NalcoMobotecProposal 08-0437 PreliminaryBudget my November21, 2008 (b) Uponrequest, Contractor shall provide Customerwith a certificate ofinsurance confirming the insurance coverage described above. All such Contractorcertificates ofinsurance shallbe submittedto Customerpriorto the start ofthe Services at the Customer's site. Eachcertificate shall contain a statement that suchpolicies will notbemateriallychangedor canceled without at least thirty (30) days priorwritten notice to Customer. (c) Should Contractor subcontract any work, Contractoris obligated to ensme that each subcontractor, at a minimum, meets the above insurance requirements. 11. COMPLIANCE WITH LAWS: Contractor shall comply with all applicable national and state laws and regulations, and all amendments thereto, including, where applicable, the Fair Labor Standards Act of 1938. Customer shall not resell Equipment without Contractor's prior written consent, and shall not resell, divert, transship, export or re-export the Equipment to any country, except in accordance with applicable national, state and United States laws and regulations. Customer is responsible for compliance with all environmental, health and safety regulations regarding its facility, operations, and equipment, including any registrations applicable to use of storage tanks at its facilities. 12. TERMINATION: Eitherparty may terminate this Agreement if(a) the other party fails to perform ormeet a material obligationunder this Agreement and (b) such default is not cured within45 days after written notice ofthe failure. Each delivery under this Agreement shall be considered a separate and independent contract. IfCustomer fails to make a payment when due or Customer's financial condition becomes unsatisfactory to Contractor, then Contractor, at its option, may (a) withhold future performance until Customer cures the default or improves its financial condition to Contractor's satisfaction; (b) requirepayment in advance; or (c) terminate this Agreement. As a conditionoftermination ofthis Agreement for anyreason Customer shallpay Contractorthe applicable amount set forth in the Termination Schedule in the Agreement. 13. MISCELLANEOUS: (a) This Agreement shall be governed by the Uniform Commercial Code and other laws ofIllinois, and not by the UnitedNations Convention for the International Sale ofGoods. Customer agrees that the com1s in the State of Illinois have exclusivejurisdiction for the resolution ofdisputes with respect to this Agreement. (b) Customer shall inform Contractor ofany special or unusual safety precautions that should be taken because of conditions in Customer'splant orprocess. (c) Failure by eitherparty to require strict compliance with any provision hereofshall notbe construed as a waiver ofthatprovision or any otherprovision. Ifanycompetent authorityholds that anyprovisionhereofis wholly or partially void or unenforceable, this Agreement shall be deemed modified to conform to applicable law and shall continue to be valid. (d) All prior and contemporaneous proposals, negotiations and agreements, written and oral, with respect to the transactions contemplated herein are merged into this Agreement, which constitutes the entire agreement between Customer and Contractor with respect to such transactions. This Agreement may not be altered, modified or amended except pursuant to a writing signed by both Customer and a senior executive of Contractor. (e) Contractor shall be an independent contractor with respect to the services to be performed under this Agreement. Contractor, its subcontractors and their respective employees shall not be deemed to be the servants, employees or agents ofCustomer. (f) Contractor shall be entitled to subcontractportions ofthe work to be performed underthis Agreement provided that the subcontractor shallbe acceptable to the Customer. (g) Customer consents to casual references that may identify Customer on Contractor's website or promotional materials, provided that Customer's participation will be sought before formal disclosures such as press releases which identify Customerare issued. (h) The Agreementmay notbe assigned without the express written consentofthe otherparty.
Nalco Mobotec Ph: 925.935.2500 Fax: 925.935.2583 Physical Address: 2540 Camino Diablo, Suite 200 Walnut Creek. California 94597-3933 Page 19of19 '*Confidential &Proprietary lnformationu Mailing Address: Post Office Box2025 Orinda, California 94563

This Information Is proprietaryand confidentialand shall notbe copied, disclosed orsharedwith parties otherthan thoseaddressed without specificwritten authorization by Nalco Mobotec.All stateand federal laws governing such Information, copywrites, and trademarks shall apply.All rights reserved.

# ( E 

# J A) Energy Systems Associates

Proposal to Supply NOx Emission Controls for USS Minnesota Ore Operations Line No.5

INQUIRY H-332002-M-01

Submitted to: 

### HATCH, Ltd. Pittsburgh, Pennsylvania

Submitted by:


### ENERGY SYSTEMS ASSOCIATES Pittsburgh, Pennsylvania ESA Proposal No. ESA 

### 08-2017

October 

### 2008

One Veterans Way, Suite 204, Pittsburgh, PA 15106 (412) 429·2713TABLE OF CONTENTS



### 1.0 INTRODUCTION

.......................................................................................1 1.1 Background on ESA

...............................................................................1 2.0 TECHNOLOGY OVERVIEW

......................................................................3 2.1 Low NOx Combustion Modifications

.......................................................3 2.2 SNCR Technology

..................................................................................4 2.3 SCR Technology

....................................................................................6 2.4 NOx Oxidation/Wet Scrubbing

................................................................6 2.5 ESA's Technical Recommendation

........................................................7 3.0 SCOPE OF WORK/SUPPLY

.....................................................................8 3.1 Task 1: Baseline Testing/Evaluation

......................................................8 3.2 Task 2: SNCR Demonstration Test

.......................................................9 3.3 Task 3: System Design with CFD Modeling

........................................ 10 3.4 Task 4: Low NOx Combustion System Supply

..................................... 14 3.5 Task 5: SNCR System Supply

.............................................................15 4.0 SCHEDULE

.............................................................................................20 5.0 COST ESTIMATE

....................................................................................21 5.1 Estimated Installation Cost

...................................................................21

ESAOS-2017

### 1.0 INTRODUCTION
US Steel operates an iron ore pelletizing plant at their Minnesota Ore Operation (Minntac) facility that includes five pelletizing lines. US Steel is currently investigating the feasibility of reducing nitric oxide (NOx) emission from the indurating process Line No. 5. Line 5 is a "grate-kiln" type system that employs a traveling grate, a rotary kiln and annular cooler. Line No. 5 averages approximately 290 million Btu's per hour of heat input consisting ofabout 60% natural gas and 40% biomass fuel. The average NOx emission rate is about 470 pounds per hour. This is equivalent to about 1.6 lbs of NOx per million Btu offuel fired. This is a very high NOx emission rate in comparison to steam boiler combustion systems which typically have uncontrolled NOx emission rates in the range of0.4 to 0.8 lbs/MMBtu. Energy Systems Associates (ESA) of Pittsburgh, Pennsylvania is pleased to provide the following budgetary proposal for the design, fabrication and supply ofa nitric oxide (NOx) emission control system for Line No. 5 at the US Steel Minnesota Ore Operation Facility in Mt. Iron, Minnesota.


### 1.1 Background on ESA Energy Systems Associates (ESA) is an engineering and consulting firm giving special emphasis to helping industry with energy and environmental related problems including combustion engineering, air pollution control technology, and energy conservation and utilization. The company was founded in 1981 and is headquartered in Pittsburgh, Pennsylvania.
Members of the professional staff of ESA have manyyears of consulting engineering experience with a variety oforganizations. Examples oftheir collective experience include:



### 1 ESAOB-2017• Boiler and emissions testing. • Computational Fluid Dynamics Modeling • Design and implementation ofover fired air systems • Design and implementation offlue gas recirculation systems • Low 

### NOx burner design and implementation • Gas reburn system design and implementation • Selective non-catalytic 

### NOx reduction system design and installation • Evaluating and recommending modifications for fuel switching. • Developing new technologies for 

### NOx reduction. • Utilizing renewable energy sources. • Utilizing opportunityfuels • Experimentally investigating combustion processes. • Developing emission monitoring programs. ESA's broad capabilities extend from providing consulting and testing services to performing detailed engineering, design, procurement, construction management, and start up services for projects. These projects have included retrofit and facilities design, newconstruction, and detailed design and installation ofequipment for plant additions or modifications. Many ofthese projects include working with combustion technologies from their birth as a research concept, development at pilot scale, implementation atfull scale, and optimization through several generations of installation at multiple locations.



### 2 ESAOB-2017

### 2.0 TECHNOLOGY OVERVIEW
There are a variety of technical approaches that would be capable of reducing NOx emissions from the combustion system at the US Steel Minntac facility. As with NOx technology selection in other applications, the optimum control approach will depend primarily on the targeted NOx emission rate and the capital and operating expenditure. Table 1 provides a general overview ofthe suitable NOx control options for USS Minntac along with the expected NOx removal efficiency and the relative capital and operating cost of each technology.


### Table 1. NOx Option Summary NOx Reduction Cost Technology (%) 

### Capital Operating Combustion modifications 20% to 30% 

### $ $ SNCR 25% to40% 

### $$ $$ SCR 75% to 90% 

### $$$ $$$ NOx oxidation/wet scrubbing >90% possible 

### $$$$ $$$$
2.1 Low NOx Combustion Modifications
Combustion related modifications such as reduced excess oxygen operation, staged combustion, low NOx burners, overfire air and/or flue gas recirculation are proven techniques for reducing NOx emissions by 20% to 50% from most combustion systems. These combustion related modifications usually require relatively low capital cost investment and have very low operating costs. For this reason, some form ofcombustion related control is usually the "front line" in almost all NOx emissions control strategies.
The indurating process combustor at USS Minntac is not ideally suited to off-the-shelf retrofit low NOx burners for several reasons. First, the indurating


### 3 ESAOS-2017process requires large volumes ofairfor drying which makes reduced excess oxygen operation impractical and off-stoichiometric combustion staging more difficult to achieve. Second, the use of both natural gas and biomass fuel presents certain combustion and NOx related challenges to most commercial low NOx burners. ESA engineers are not aware of any low NOx burners currently available for taconite kilns. Despite these constraints, ESA is confident that some low NOx features can be incorporated into the existing combustion system design that will result in NOx emission reductions of 25% or more from current levels. ESA's approach to redesigning the existing burner system to achieve lower NOxformation characteristics will be through the use ofcomputational fluid dynamic modeling (CFD) validated by on-site baseline testing. This approach is discussed in Section 3.3 ofthis proposal. The expected control cost associated with low NOx combustion modifications, expressed in dollars per ton of NOx removed, would typically be about $500 per ton of NOx removed or less. Based on the very high baseline NOx level at USS Minntac, the effective control cost would likely be much lower.


### 2.2 SNCR Technology
The next option for reducing NOx emissions would be through the use of selective non-catalytic reduction (SNCR) technology. This technology is typically capable of reducing NOx emissions by 20% to 50% depending on the flue gas temperature and residence time characteristics and the final unreacted ammonia (ammonia slip) level. SNCR technology is typically used in conjunction with low NOx combustion modifications resulting in overall NOx emission reductions of 50% to 70% from uncontrolled baseline levels.
The SNCR process is a well-proven technology for reducing NOx emission from fossil fired systems through the injection of ammonia or urea into the



### 4 ESAOS-2017combustion effluents. The technology was invented and patented in the United States in the 1970s. The technology came into commercial use on oil and gas fired power plants in Japan in the middle ofthe 1970s. In Western Europe, SNCR systems have been used commercially on coal-fired power plants since the end ofthe 1980s. In the US, SNCR systems have been used commercially on gas and oil-fired units since the 1980s and on coal-fired power plants since the early 1990s.
In SNCR systems, a reagent is injected into the flue gas in the furnace within an appropriate temperature window. The NOx and reagent (ammonia or urea) react to form nitrogen and water. A typical SNCR consists of reagent storage, reagent injection equipment and associated control instrumentation.
The temperature window for efficient SNCR operation typically occurs between 1650 

### oF and 2000 

### oF depending on the reagent and condition ofSNCR operation. When the reaction temperature increases over 1800 °F, the NOx removal rate decreases due to thermal decomposition of ammonia. On the other hand, the NOx reduction rate decreases below 1800 

### oF and ammonia slip may increase. The longerthe reagent is in the optimum temperature window, the better the NOx reduction. Residence times in excess of 1 second yield optimum NOx reductions. However, minimum residence time of0.30 second is desirable to achieve moderate SNCR effectiveness.
Ammonia slip from SNCR systems occurs either from injection at temperatures too lowfor effective reaction with NOx orfrom over-injection of reagent leading to uneven distribution. Controlling ammonia slip in SNCR systems is sometimes difficult since there is no effective feedback to control reagent injection. The reagent injection system must be able to place the reagent where it is most effective within the boiler because NOx distribution varies within the cross section.



### 5 ESAOB-2017The control cost for SNCR technology would be 

### in the range of$1000 to $2000 per ton of NOx removed. Generally the capital cost ofthe SNCR process are relatively low and the primary operating cost is the purchase of ammonia or urea.


### 2.3 SCR Technology
Selective Catalytic Reduction (SCR) is a catalyst-based NOx control technology that can reduce NOx in the oxygen-rich exhaust from combustion processes. Like SNCR technology, SCR technology employs the use ofa reductant such as ammonia to facilitate the catalytic NOx reduction process. However, unlike SNCR technology which depends on furnace gas temperature characteristics to support the kinetic NOx destroying reactions, SCR employs a catalytic reactor containing a vanadium based catalyst to support the reaction kinetics. As a result, the SCR process is capable ofachieving very high levels of NOx removal depending on the volume of catalyst provided. Typically SCR's will achieve NOx reductions of 75% to 90%. Where possible, low NOx combustion systems are typically used to reduce the SCR inlet NOx concentration thereby reducing catalyst volume and chemical reagent requirements. SCRtechnology is much more expensive to install and to operate than SNCR technology but achieves much higher levels of NOx control. On large utility units where SCR technology is most prevalent, the operating costs are around $3,000 perton of NOx removed based on the reagent and catalyst replacement cost. On relatively small units such as the USS Minntac indurating furnaces, the combined capital and operating cost of SCR technology would be very high.


### 2.4 NOx Oxidation/Wet Scrubbing
Several companies have developed technologies for reducing NOx emissions that involve the oxidation of NO to form water soluble compounds that can be removed from the flue gas by wet scrubbing. The oxidizing chemicals



### 6 ESAOB-2017include ozone (generated on-site from pure oxygen), hydrogen peroxide and other more complicated techniques to form oxidizing compounds. Some ofthese process also require a catalytic reactor.
In general, these technologies are capable ofvery high levels of NOx reduction and other pollutants as well. ESA participated in one ofthe first pilot scale demonstrations of a technology that involves NO oxidation using ozone. While the technology proved technically capable (at a pilot scale) ofachieving almost 100% NOx removal, the process was not commercially viable or remotely cost effective in comparison to the other option presented here. In general, it is ESA's belief that such processes have a niche after low NOx combustion modifications and perhaps SNCR technology have already been implemented but additional levels of NOx reduction are still needed.


### 2.5 ESA's Technical Recommendation
Based on ESA's detailed understanding and experience with the technical solutions to NOx control, as well as our current understanding of US Steel's needs, ESA recommends a NOx control strategy incorporating the following components:
1. Low NOx combustion modifications to the existing burner system. 2. SNCR Technology.
It is ESA's beliefthat combination ofthese techniques can reduce the NOx emissions by 50% or more from baseline levels while maintaining emission control cost-effectiveness that is comparable to other industries.



### 7 ESAOB-2017

### 3.0 SCOPE OF WORKISUPPLY
ESA proposes to design, fabricate, supply, startup and test a low NOx combustion system for Line No. 5 at USS Minntac. ESA scope ofwork and supply shall include the following tasks: 

### 3.1 Task 1: Baseline Testing/Evaluation
ESA proposes to perform a brief test project on the unit. The objective of the baseline testing will be to document existing operating and emissions characteristics of Line No. 5 in order to develop the understanding and data necessary to design a NOx control system. ESA desires to obtain performance and emission data while firing gas and biomass fuel. ESAwill provide personnel and test equipment to fully document the temperature, flow and emission levels as various locations within the grate-kiln system. In addition, ESA's engineers would like to obtain a first hand understanding of the process and the NOx characteristics as a function ofvarious operating adjustments.
The burners employed in US Steel's kilns have multiple passages for introducing atomizing and cooling or biomass conveyance air streams, as well as an adjustable gas tip. This allows for various possible operating conditions that may effect NOx emissions. During the baseline testing, systematic variation of each air stream will be conducted and the NOx emission measured. This will develop a parametric set of NOx measurements that determine a NOx emissions envelope for the current burner design
The baseline test information serves two important purposes: (1) it provides necessary data for construction and validation ofa computational fluid dynamic model and (2) it acquaints ESA engineers with the normal operating and emission characteristics ofthe unit. The spatial data on NOx, CO, 02, and temperatures leaving the kiln are critical to developing an accurate CFD model. Balance of plant issues can be directly observed during the testing.


### 8 ESAOB-2017ESA will supply testing equipment consisting ofa mobile emissions laboratory for analyzing the flue gas for NOx, 02, and CO species, water-cooled probes for collecting flue gas temperatures and gaseous species.


### 3.2 Task 2: SNCR Demonstration Test

After completing the baseline testing as described above, ESA recommends the performance of a short-term (3 day) SNCR demonstration test. The objective of this demonstration would be evaluate the effectiveness ofthe SNCR process at reducing NOx emissions from Line 5 using available observation ortest ports. The demonstration would serve to provide a rough idea ofthe effectiveness ofthe technology at reducing NOx, identify any potential negative impacts and provide a bettertechnical basis for designing a permanent system. ESA scope ofwork for this project would include the following:

• ESAwill supply and setup an SNCR test system consisting ofall pumps, transmitters, valves, hoses, spray lances or other components necessaryto convey and inject about 1 to 2 gallons per minute of urea solution. • ESA will supply and operate an extractive ammonia sampling system at the stack orother process location for determination ofammonia slip levels. The ammonia sampling procedure shall conform to the EPA Condition Test Method 27. • ESAwill supply all labor necessaryto operate, test and optimize the SNCR system over a thee (3) daytest period during normal work hours. Most testing will occur underfull load operating conditions for the unit. The objective ofthe effort will be to evaluate the potential for a somewhat simplified SNCR system to achieve cost-effective NOx reductions. • ESA be responsible for supply a urea batch tank and procurement of urea necessary for the test. • ESAwill prepare a brief report documenting the SNCR system performance as a function of urea utilization including NOx emissions reductions and ammonia slip levels. The report will include recommendations for a more permanent system as well as anticipated performance.

9 ESA08-2017

### 3.3 Task 3: System Design with CFD Modeling
The objective ofTask 3 is to develop a CFD model ofthe unit to aide in the design of low NOx combustion modifications and the SNCR system. The CFD modeling would encompass two parts: a model ofthe kiln for design of modifications to the burner system, and a model ofthe preheat section to assist in the design ofthe SNCR system.
ESA engineers recently employed CFD modeling to evaluate the gas burnerfor US Steel's Minntac Line 3 kiln. Sample output is shown below, which compares the peaktemperature produced by the gas kiln burner at two different combustion air settings. This model will be used as the starting point for simulating changes to the kiln burner. 

### Peak T(F) 2000. 2375. 2750. 3125. 3500.

ESA proposes to extend the existing CFD model of Minntac line 3 kiln to line 5 to provide detailed analysis of NOx production and the potential for reduction by altering the combustion process. By extending the CFD model to NOx predictions, detailed information about how the current combustion processes inside the kiln generate NOx can be determined. This information can be employed to quantify improvements in NOx generation that might be expected from changes to the kiln burner.


### 10 ESA08-2017ESA's NOx subroutines employ reduced chemical kinetics to predict NOx generation from the reaction of atmospheric nitrogen (thermal NOx routes), and combustion offuel bound nitrogen (fuel NOx routes). Fuel nitrogen routines include fuel bound nitrogen in the form of HCN (predominant in coal) and NH 3 (predominant in biomass). The reduced chemical kinetic set is integrated with the turbulent mixing and combustion ofthe CFD model to ensure accurate prediction of NOx emission. The model will be compared to test data to ensure accuracy of the NOx predictions and then will develop a comprehensive set of baseline NOx predictions.


## CH4 .1.00 0.75 0.50
0.25
0.00

An example ofthe CFD model ofone ofthe burners employed in US Steel's kilns is shown above. It has been constructed with multiple inlets for introducing atomizing and cooling (or conveyance) air streams, to allow it to simulate the various possible operating conditions. The kiln model will be run using the fuel and air conditions measured during baseline testing and NOx emissions will be predicted. The NOx model predictions will be compared to the baseline testing measurements to ensure that the model is accurately representing current NOx emissions.



### 11 ESAOB-2017After simulation ofthe normal operation, variation ofeach air stream (atomizing and cooling) will be conducted to match the baseline testing matrix. The graphic visualization produced by the CFD model will allow the development of an understanding ofwhere and why 

### NOx emissions are produced by the current burner design. Some parameters of interestto 

### NOx formation are expected to be:
1. Because both cooling and atomizing are ambient air streams, the effect on 

### NOx formation ofthe total amount ofambient air used in the burnerwill be determined. 2. Some effect ofthe central, atomizing air on flame shaping has been observed in the previous CFD modeling; the baseline modeling will determine ifthis has any effect on 

### NOx formation. 3. The effect of biomass combustion on extending the flame and possibly limiting the formation of 

### NOx will be calculated. To address these and other issues, the formation of 

### NOx from each baseline run will be plotted to allow determination of how and where 

### NOx is generated by the burner, and how it responds to changes in the air supplied through atomizing or cooling regions.
After completion ofthe baseline modeling, design changes to the burner for reducing 

### NOx emissions will be discussed with US Steel engineers and tested in the CFD model. These alterations will be based on the relation of 

### NOx to operating parameters developed in the baseline modeling, and will likely include replicating some combination ofthe usual components of a traditional low 

### NOx burner. In general, a low 

### NOx burner includes the some combination ofthe following elements to control 

### NOx formation:

• Multiple fuel streams, to allow controlled introduction ofthe fuel to the combustion zone. • Multiple air streams, to control the mixing of air into the fuel streams, allowing further control ofthe combustion zone. • Swirl on the air streams, to entrain furnace gases to reduce the oxygen concentration and improve flame holding ofthe extended flame.



### 12 ESAOB-2017• Forced flue gas recirculation, to reduce the local oxygen content in the combustion zone. In a low NOx burner, these functions are achieved through the use ofswirl vanes, blockages, splitters, or otherfabricated parts. Each ofthese features will be replicated in the CFD model to test their function in reducing NOx. Because of the high temperatures and high 

### 02 process air present in the indurating air, and into which the kiln burner fires, some ofthese low NOx burner elements may not be possible or may not function to reduce NO,. The design modeling will provide information about the extent to which that occurs, allowing assessment ofwhich design features successfully reduce NOx.
To assistwith the design of SNCR, ESA will construct and validate a CFD model ofthe preheat section ofthe processing line to provide an additional tool for the design ofa permanent SNCR system. Values of0 2, NH3, and NOxwill be extracted from the model and compared to test measurements from the field trial. Ifthe multiple point comparisons ofthe CFD model match the test measurements, it can reasonably be assumed that the modeled conditions are the same as the real preheat furnace.
The validated model provides two important benefits for the design ofa permanent SNCR. The first benefit is a visual indication ofwhere the combination oftemperature, 

### 02, and NOx is suitable for SNCR reagent application, and howthat region moves under different operating conditions. The second benefit is that reagent distribution from all possible injector locations can be simulated, notjust the limited set of locations available to the field trial. Combined, these two benefits provide the knowledge ofwhere the best location of SNCR reagent application is, and how to target itwith injectors. Using the CFD modeling, a process design will be developed for a permanent SNCR system, which determines the number and location of

13 ESAOB-2017chemical injection nozzles, the amount ofchemical use and the spray distribution required from each nozzle.


### 3.4 Task 4: Low 

### NOx Combustion System Supply
ESA proposes to supply the required equipment and services to convert the existing burnerto low NOx operation. To a large extentthe precise nature of the equipment to be supplied will depend upon the results ofthe CFD modeling conducted in Task 3, therefore, this list a best estimate ofthe components required


### 3.4.1 Equipment Supply QTY 1 Modified BurnerTip 

### It is expected that some combination ofswirl vanes and/or splitter vanes will be retrofit to the existing burner to achieve lower NOx. The precise nature ofthe modification parts will result from the CFD modeling task. Since ESA's intention is to modify the current burner rather than completely replace it, ESA's preliminary expectation is to combine the required splitter/swirl vanes into a modified tip that can be retrofit onto the current burner. 

### 3.4.2 Engineering Services ESAwill perform the following engineering services to complete the scope ofwork:

• Field verification of existing burner dimensions and design • Conversion of CFD conceptual design to detailed design drawings for fabrication of replacement tip components. • Installation Drawings for replacement components • On-site installation support



### 14 ESAOS-2017• Burner commissioning and Startup • Operatortraining • Burner optimization testing


### 3.4.3 Scope ofWork by Others
• Removal ofcurrent burner. • Installation of ESA supplied modified tip onto current burner. • Reinstallation of burner.


### 3.5 Task 5: SNCR System Supply
ESA proposes to supply the following process equipment and services. In general, ESA's scope will include all equipment such as tank, process skids, transmitters, pumps, valves, flex hoses and PLC control system. Excluded from process equipment supply is interconnecting piping, electrical conduit, electrical cable, access platforms or stairs (if necessary).


### 3.5.1 

### QTY1 SNCR Equipment Supply
15.000 Gallon Insulated FRP Urea Storage Tank
The FRP tank will be filament wound, flat bottom, vertical side, and closed dome tanks. The tank will be rated for atmospheric pressure conditions. The tank will consist of premium grade Derakane 441-400 vinyl ester resin in the corrosion barrier and isophthalic polyester resin in the structural layers. The tank will be insulated with 2" polyfoam insulation and over wrapped with FRP and coated with an UV inhibitor barrier. The tank will include two manholes for tank entry with a safety ladder and cage for accessing the top manhole. The tank will also have thermostatically controlled heating panels to maintain 75° F. along with the necessaryfittings
15 ESAOS-2017QTY1 and connections for pump suction lines, recirculation and fill lines with down tubes, ventilation, level and temperature indication, and tank drains. The tanks will be constructed to an 80 MPH wind load and Seismic Zone 0 rating with the appropriate snow load. The urea usage for the proposed system is estimated at 1500 gallons per day. The 15,000 gallon tank will provide approximately 10 days ofstorage capacity.
Urea Circulation System and Outdoor Equipment Enclosure
One urea circulation system will be used to deliver pressurized urea from the urea storage tank location to the SNCR process flow control skid.
The urea circulation system will contain redundant centrifugal pumps for the circulation loop between the urea storage tank and the SNCR process skid located inside the plant. The urea circulation system will include an in-line heater and heat traced and insulated stainless steel piping to prevent the urea from crystallizing. The circulation heaterwill be a 20 kW electric heater with 304 SS wetted parts. The electric heater controls will be housed in a NEMA4 rated box and will require 480V/3 Ph/60 Hz. The circulation pumps, in-line heater, strainer, valves, and instrumentation will be skid mounted and installed within an outdoor enclosure building. All skid piping will be Sch. 40 304 SS, all valves will be 316 SS, and instrumentation will have wetted 316 SS parts. The enclosure will be constructed offiberglass reinforced isophthalic plastic resin with a laminate composite, UV inhibitors, and flame retardant additives. The heated enclosure with have a polyurethane closed cell foam core in the walls and roof. The enclosure will house the electrical breaker panels with circuits and

16 ESAOB-2017QTY1

QTY4 transformers designed for the tank heaters, containment area lighting, circulation loop in-line heater, circulation equipment and instrumentation, pipe heat tracing, and the enclosure lights, outlets, and heater. The enclosure will be mounted on a concrete pad. The enclosure will be rated for 150 MPH wind load and 40 lb per square foot snow load.
SNCR Process Flow Control Skid
ESA is proposing to build one SNCR process flow control skid. The urea/dilution water flow control skid will contain the equipment required to monitor and maintain the proper urea injection rates for the SNCR systems on each unit independently. The skid mounted equipment will include a vertical stage centrifugal pump for controlling dilution water supply pressure, pressure and flow transmitters for urea and water supply, urea flow control valves, water pressure control valves, urea and water automatic isolation valves, multiple purge/fill connections, strainers, and a NEMA4X junction box for power and control wiring connections. The skid will consist of304 SS piping and fittings with a stainless steel dip pan. Piping and valve connections will be ANSI150# RF flanges.
SNCR Injection Lances and Insertion/RetractAssemblies
The unit will utilize four (4) injection assemblies and two (2) independent injection zones. The SNCR injection assemblies will include an injection lance and nozzle, manual and automatic isolation valves, a dual acting limit switch, flexible braided steel hose, and a dual acting pneumatic actuator. All wetted parts will be 304 SS or 316 SS. The automatic insertion/retract mechanisms can be operated remotely through the control system or locally



### 17 ESAOB-2017QTY1 through a field mounted junction box with insertion and retraction switches.
SNCR PLC System
The SNCR system will be controlled by an Allen Bradley PLC system. Each skid will contain a dedicated controller and 1/0 cards to monitor and control the operation ofthe skid mounted equipment and anyfield installed equipment located nearthe skid. The PLC equipmentwill be mounted in NEMA4 or4Xjunction boxes and will include power supply filters, voltage transformers, and climate control systems. The skid mounted PLCs will be connected by Ethernet cables and linked to an operator interface located in the boiler control room.


### 3.5.2 Engineering 

### Services
ESAwill perform the following engineering services to complete the scope ofwork described in this proposal:

• Equipment Specifications • P&ID Drawings • General Arrangement Drawings • Tank Foundation Drawing • Skid Arrangements Drawings • Electrical Schematic Drawings • Electrical Interconnection Drawings • Single Line Power Distribution Drawing • PLC Software Programming • On-Site Installation Support- 

### 15 man days ofon-site support services during equipment installation.


### 18 ESAOB-2017• Equipment Commissioning and Startup Services- Manpower as necessary. • OperatorTraining • Operation and Maintenance Manuals - 3 printed copies plus electronic. • SNCR Process Optimization Testing. The SNCR optimization testing will require about 1 weeks per unitto complete. ESAwill supply all personnel and test equipment to tune the system the system and measure ammonia slip levels. The results ofthe testing, together with inputfrom the station, will be used to establish the operating set points for the system. 

### 3.5.3 Scope ofWork 

### by Others
• Installation of ESA supplied equipment. • Foundation for Urea Tank and Transfer System/Outdoor Enclosure. • Interconnecting piping and instrument air. • Interconnecting Cat-5 Ethernet cabling between the PLC control system and remote Flex 1/0. • Interconnecting electrical cabling. • 480 power supply to process skids. • Filterwater supply
- 10 gpm. • Supply of Nalco water hardness suppression chemical -should be about 30 to 60 gallons per month depending on water hardness and , operating hours. • Instrument air. • Installation ofstairs, platforms, handrails, interior/exterior lighting, eyewash stations or safety shower.



### 19 ESAOB-20173.5.4 SNCR System Operating and Maintenance Cost
The primary operating cost ofan SNCR system is the cost to purchase urea (or ammonia). The system will require periodic replacement ofspray nozzles and repairs or replacements to pumps, flex hoses or other equipment but these cost are relatively insignificant in comparison to the reagent cost. The system will use about 1 to 3 gallons per minute offiltered station water for dilution.
Urea at 50% by weight is a commodity that current costs about $1.00 to $1.25 per gallon delivered. The expected flow rate for Line No.5 is about 60 gallons per hour. The anticipated NOx reduction is about 150 lbs per hour or greater. Therefore, the operating cost would be in the range of $800 to $1000 per ton of NOx removed.
4.0 SCHEDULE
The proposed project could be completed within about 6 to 8 months. The baseline testing and SNCR demonstration test would only require about 1 - 2 weeks to complete but completion ofthe CFD model and low NOx burner design will require about 12 weeks.
Tasks 

### 3 and 

### 4 would be performed in parallel requiring about 

### 3 to 5 months to complete after Task 1 iffinished.

20 ESAOB-2017

### 5.0 COST ESTIMATE
The budgetary prices to develop and supply a low NOx combustion system for USS Minntac, Line 5 is detailed below according to the described scope ofwork.

Task Work Task Price 1 Baseline testing $30,000 2 Optional SNCR shortterm demonstration test $45,000 3 CFD modeling and low NOx system design $50,000 4 Engineer, fabricate, supply and test low NOx $175,000 combustion modification 5 Engineer, fabricate, supply and test SNCR $550,000 System TOTAL $850,000


### 5.1 Estimated Installation Cost
The estimated installation cost ofthe proposed low NOx combustion system including burner modification and SNCR system installation is detailed below by labor scope.


### Work Scope Installation Cost Civil -Tankfoundation/containment $75,000 Pipe fitting/ tank erection/ mechanical $125,000 Electrical $60,000 Insulation 

### I refractory $15,000 Burner modification installation $15,000 TOTAL $290,000

21 ESAOS-2017

# I BACT PROCESS SYSTEMS, INC. 3345 N. ARLINGTON HEIGHTS RD. SUITE E ARLINGTON HEIGHTS, IL 60004-1900 (847) 577-0950 FAX: (847) 577-6355 E-MAIL: bact_process@sbcglobal.net

November 18, 2008

To: Attn: From: Re:

cc: HATCH Chester Dietrick N. Balakrislman, BACTPROCESS SYSTEMS, INC. NOx Emission Control System for U.S. Steel BACT File No. 0870 Ron Tomcik Chester, ourrecommendationis for you to consider a selective non-catalyst (SNCR) process for reduction ofNOx for this application. Based on ourexperience with cement plants, a system could be designed to inject urea solution to the gas stream. The ideal temperature is 900 degree C to II00 degree C. We are attaching technical information on the SNCR system. The injunction nozzles couldbe installed down stream ofthe rotary kiln. The injunction nozzles could bedesigned after CFD to assure a uniform mixing ofgas and reagents. Typically, you could get 60%removal efficiency. Based on470 lbs/lu·NOx the urea usage will be 262 PI-L Compressed air usage: 1200 SCFM @75 psig. I. BACT will design, furnish and supplyone SNCRdenox system for this project. 2. Denox shall be based on urea. 3. We assume that the spacerequirement for atomization ofthereagents is very limited. I. Our scope ofsupply is as follows:

- CFD modeling

BESTAVAILABLE CONTROL TECHNOLOGY

### -2-

2. Equipment: (a) Urea Storage: One 15,000 gallon FRP tank complete with inlet flange, outlet flange, level probeflange and DeltaT temperature maintenance system with insulation. The tankhas a dimension of 14'-0"dia x 28'-0"height. The tank is capable ofreceiving 50% urea solution. (b) Pump Skid: To pumpurea solutionfrom the storagetank tothe day complete with pump, TEFC motor, pump spared and valved for manual switchover. (c) Urea daytank, 5000 gallon capacity- polyethylene (d) Watertank- polyethylene- 5000 gallon (e) Two (2) pump skids withnecessary valves andinstruments for water and area solutionto the atomizing nozzles. Pumps are spared. Four installed with one warehouse spare. (f) Ureainjunction nozzles and lances completewith control valves. Pressure transmitter ineachnozzle. (g) Material suitable for high temperature. Barrier air system is included. (h) A control panel, NEMA 12 with Allen Bradleymicro-processor and touch screen andNOx monitor. (i) All required pipingto inter-collllect the pump skid with the nozzles. Compressor: Byothers Field installation: By others

### -3-

SELL PRICE: Budgetprice for engineering, equipment and start-up: Field installation (inter-connectingpiping and electrical wiring): Cost for CFD modeling: Delivery: 6 months after receipt oforder 

### $850,000
Later 

### $80,000

Chester, the information presented here is very preliminary. Wehave already sent you a users list from our licensing partner. We would like to meet with you to discuss our approach at yourconvenience. Ifyou have any questions please do not hesitate to contact us. Kind regards,
N. S. Balakrislman, President

# • • 

# • •• 

## • 

# • 0 I ' 

# • 

# - • 

# • BACTPROCESS SYSTEMS, INC. 3345 N. Arlington Heights Rd

.. Suite E Arlington Heights, Illinois 60004-1900 1'-847/577-0950 F-847/577-6355Applications SCR-system NO.reduction in flue gases from: With the SCR method the • cement industry • oil, gas and coal combustion • waste incineration plants • gas/diesel engines • gas turbines • wood incineration plants General description For NOx reduction in flue gases usuallytwo Industrial procedures are used: • selective catalytic reduction SCR • selectivenon-catalyticreduction SNCR Both procedures convert the nitrogen oxides harmful to the environment Into nitrogen and water by adding a reducing agent. As a reducing agent ammonia orurea solutioncan be used, as they react selectively with NO•. nitrogen oxides are reduced to molecular nitrogen using a catalyst. The reducing agent is Injected at temperatures from 

## 2oo•c to 

## 45o•c. In order to guarantee a homogeneous distribution In the flue gas a static mixeris mostlyforeseen afterthe injection. Very important for a successful operation is the atomislng technology. CALDYN has more than 1 0years of experience in this field and provides the necessaryatomising lances as well as the respective engineering. CALDYN guarantees the complete evaporation ofthe Injected liquid before the gas reaches the catalyst resp. the static mixer. Thus extremelyshort evaporation distances are achievedwhile smallest channels can be used. SNCR-system With the SNCR method the reducing agent Is directly injected into the hot flue gases at temperatures from 900 

# ·c to 1100

## •c. Thewaterinthe solution Is evaporated and the reducing agent reacts with NO to water and nitrogen. At temperatures exceeding 1100

## •ctheadded NH3 is increasingly oxidized. At temperatures below 900 

## •c the reduction velocity decreases leading to an increased ammonia slip. As no static mixers can be used due to the high temperatures a homogeneous distribution ofthe reducing agent in the flue gas Is necessary. In order to observe the legal limits an optimum dimensioning and regulation of the system Is essential. For this method CALDYN provides the complete atomlsing technology with engineering aswell as the pump and regulating station including the programmable control. Advantages oftheSNCRsystem • low capital investment • no additional apparatus in the

flue gas system (direct spraying into the boiler, reheating chamber,

...) • no pre-dedusting • quick retrofitting • no catalyst necessary It depends on the spraying

### I



# ... I**·~**

# -~-~~

Fig.2 Working principle ofthe CALDYN nozzle CSL Nozzle CSL was developed by CALDYN and has been proven as a very robust and economical spraying technology overthe past years. Liquid and gas are mixed at low velocities in a mixing chamber and accelerated to the sonic velocity of the two phase mixture. The atomlsatlon is achieved bythe pressurejump at the outlet ofthe nozzle when the mixture Is expanded In a gas atmosphere (see Fig. 2 and resp. Technical information CSL 9801 CALDYN nozzles). The atomising system is the most Important component of the SNCR system. Especially the evaporating distances and thejet throw of the nozzles have to be considered when dimensioning the SNCR system. The nozzles have to penetrate the flue gas without causing lump formations and damage due to incomplete evaporation. Our engineers use a CALDYN dimensioning software for optimum results. Characteristics CALDYN nozzles CSL generate adefined and narrowdroplet size distribution. A variation ofthe jet throw and the droplet size distribution can be achieved by changing the liquid flow rate and the gas pressure. The liquid flow rate can be regulated from zero to maximum design flow rates (see Fig. 3 Jet velocity profile of a CALDYN nozzle). Especially for the NO, reduction CALDYN developed a nozzlewith a flat jet throw called CSL_flat providing awide spread spraying. The combination of single nozzles in a cluster or several nozzles In line allows an optimum adaptation to different duct or tower diameters. Regulation Depending on the contents of NO,in the clean gas the spraying system is automatically and continuously adjusted to the varying parameters. For changingtemperatures in the flue gas several levels ofnozzles are installed. For each range of temperature the respective level is used. Thus operating costs and ammonia slip are reduced.

0 0.15 

# s: 

# ' 0**~·** 

### :;;,

..(),15 0 0,1 0.2 0.3 0.4 0.5 Fig.4 CALDYN lance with 3 nozzle tips CSL (SCR)

### --------------------~ Design The lances are made of heat resistant stainless steel. An additional cooling system is usually not required. When needed the lances can be operated with protection tube and barrier air.

[mls} 5 10 15 20 25 30

0.6 0.7 0.8 0.9 distance from nozzle outlet [m) _. 

# I**~** Fig.3 Calculated jet velocity profile of aCALDYN-nozzle CSL 

# I

____ _......... .......**~=_...~_.._....,. "~"""""-·----'** Advantages ofthe CALDYN system: • low energy consumption • no additional lance cooling • efficient use of reducing agent • little maintenance required • wide range of regulation • long wearing and plugging-free nozzles • steam can be used instead of pressure air • easy installation 

### I retrofitting Scope ofSupply The CALDYN scopeofsupply Includesthe engineering, deliveryoflanceswith nozzles CSL, atomising systems with special design on customer's request for DeNOx-systems as well as complete plants. Detailed information is availableforfurther applications ofthe CALDYN nozzle CSL (quenching systems, spray absorber, evaporation ofwaste water, aerosolenlargement, etc.). References CALDYN delivered atomislng systems or DeNOx-systems to: 

# @) Clments Calcia I!J!cerrer.li G:o:.1p 

# "-- . 

### . . ll•KOCH-GLITSCII



### LLAFARGE 

# HWH

' ' I o_ 

### SIEMENS·

0 ";:. >**-~** \ r '' 

## STEl"LlER AJ\I.IQf'APUtt. GmhH .\Co, KG



### BACT PROCESS SYSTEMS, INC. 3345 N. Arlington Heights Rd., Suite E Arlington Heights, Illinois 60004-1900 P·847/577·0950 F-847/577·6355
- I

........ I V**L..o~"lll 1~""'11**  Tel. ++49-7243/5403-0 Fax ++49-7243/5403-99 

### E-mail: info@caldyn.de/Internet: http://www.CALDYN.de

# ~WJM Apparatebau GmbH Dok: Referenzliste DeNOx Stand 2008 

## List ofCompanies using CALDYN CSL System for NOx-Reduction in SNCR & 

## SCR plants Company Conntry NOx-target (mg/Nm') Mliquld (kg/h) Temp. Gas FlowRate (° C) (Nm'lh)

SNCR-Systerns in cementplants Cirnents Calcia SNCR France < 800 240 950-1100 48.000 Lafarge SNCR Germany <500 80 1050-1150 24.000 Lafarge SNCR Germany < 500 200 1050-1150 78.000 Lafarge SNCR Getmany < 500 125 900-1050 51.000 Lafarge SNCR Austria <500 800 900-1050 180.000 ZKWOtterbein SNCR Germany <500 70 950-1050 96.000

SNCR-Systemsin otherindustries As exclusive contractor we madefor NalcoFuelTech, Essen lances/nozzles for >70 SNCR plants for example: Plant Vojany Plant MV A Hamm Plant MVAFrankfurt Plants Standardkessel Slovaky Germany Germany Germany James Robinson SNCR Germany 5.000

4 950-1050 950-1050 950-1050 900-1100 900 500.000

2.800SCR-Systems Deutsche Babcock, Germany 890 Knifeld SCR Siemens AG, Redwitz Germany 5-440 > 300 plants SCR (nowArgillon) Steinmiiller SCR Germany 1.600 2.600 H+H Umwelttechnik Germany 5-250 > 300plants SCR Steuler Germany 5-950 > 30plants SCR Integral Austria 5-200 > 20 plants SCR Envirgy Austria up to 330 > 10 plants SCR MAGUINSCR France

Conversion factors: I ° C 

### = I,8°F; I Nm'/h

### =0,59 scfin SCR= Selective catalytic reduction SNCR = Selective non catalytic reduction 100

# ~WIM Apparatebau GmbH

400-160 7.200
430-240

280-170 26.000 280-190 52.000 450-250
430-250 up to 227.000
350-250 up to 160.000
315-280 up to 4.500
260-300 65.000SCHEME Urea solution injection system SNCR-plant**·------------------------------~** I

# .-----------------~: : I

# r---------~ I I 1 I I 1 I I 1 I ..L. 1 I I**~-----------------------~** 

### ' 

### ' ' 

### ' 1 I I I I r::J<J---l><l I I I 

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### :~ .. 'l 

### ' ' 

### ' ' 

# . 5,5borg 1 II

LS Water tank 

## " Urea tank 1 I I I II I I I -------, I I I r----- r---

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# y 4 lanceswith nOZZles CSL 

### ' 

### ' ' 

### ' Section •e•**··::~;~~;~~(~**

flue gas

"Inl : 4 X 

## l

_______________________

Scheme SNCR-system Injection of ta'ea sollltion for NOx-Reducticn**~** I SNCR02E.DCD-02-2HOOO

, ••**~q ~d!** 

# Hatch
BUDGET PROPOSAL FOR 

# LowNOx Burner System for USS Minntac

OG**,DRAFT

November 18, 2008

20 Stirling Street Thebarton SA 5031 AUSTRALIA Tel: +61 8 8352 9999 Fax: +61 8 8352 9988 FCT,Inc. Draft Checked Approved

5 GreatValley Parkway Malvem PA 19355 USA Tel: +1 

### 610 725 8840 Fax: +1 

### 610 725 8846 www.fctintemational.com SD

### TABLE OFCONTENTS

I. INTRODUCTION
............................................................................................................................................... 2 2. BACKGROUND ONFCT
.................................................................................................................................. 3 3. SCOPEOFSUPPLY
........................................................................................................................................... 3 3.1 PHASE 1: BURNERREPLACEMENT WiTH LOWNOXDESIGN
.................................................................................3 3.2 PHASE2: PILOTPLANTTESTINGTO OPTIMIZENOX REDUCTION
.........................................................................4 4. BUDGETPRICES
...............................................................................................................................................5 4.1 SiTE SERVICES
......................................................................................................................................................5 5. TERMSAND CONDITIONS
.............................................................................................................................5 6. SPECIALCONDITIONS OFSALE
.................................................................................................................5 6.1 PRICEBASIS
..........................................................................................................................................................5 6.2 VALIDITY

.............................................................................................................................................................. 6 6.3 DELIVERY

............................................................................................................................................................. 6 7. TERMS OFPAYMENT
..................................................................................................................................... 6 8. LIMITATIONS OFLIABILITYAND CONSEQUENTIALLOSSES
..........................................................6 9. EXCLUSIONS
..................................................................................................................................................... 6 10. OWNERSHIPOF INTELLECTUAL PROPERTYCREATED IN PROJECT
...........................................7 11. INSURANCES
.....................................................................................................................................................7 APPENDIX 1: FCTGYROTHERMBURNERS
........................................................................................................8 APPENDIX 2: FCT PILOTBURNERSYSTEMS
................................................................................................... 11

Contact: Sanjiv Dhanja1 Cell: +I (484) 919-2029 - 1 - OG** DRAFT, Nov. 20, 2008

### 1. INTRODUCTION US Steel operates an iron ore pelletizing plant at their Minnesota Ore Operation (Minntac) facility. They have fives pelletizing lines, numbered 3-7, and are investigating the feasibility ofreducing NOx from the induratingprocess. Focus is initially online 5. Line 

### 5 consists ofa travelling grate dryer/preheater, rotary kiln and annular cooler. Pertinent data for line 5 is tabulated below.
Indurating FeedRate IronPelletProduction Fuel Input J> Natural Gas J> Biomas Fuel J> Total NOxEmissions Units Tonnes/hr Tonnes/hr

Btulhr

lblhr Ave. 

### 450 370 170 120 290 

### 470 Max. 530 

### 440

1,230 FCT is ideally suitedthis project. FCT specializes in design and supply ofrotary kiln burners, having worked on hundreds of kilns tluoughout the world. Through proprietary designs and modeling techniques, FCT is able to match the rotary kiln flame to the process. In this case FCT proposes the Gyrotherm bumer. Gyrotherm has been shown to reduce NOx emissions in rotary kilns. While not used in an iron pellet kiln, FCT is undertaking extensive pilot scale tests to verify its NOx reducing capability in such kilns. FCT therefore has a clear understanding of Minntac's requirements and the critical elements of such an iron pellet plant, i.e. NOx, productionrate andproduct quality. Ourproposed approach comprises the following phases: l. Replacement ofthe burner with a Gyrotherm lowNOxdual fuel bU'mer. A NOxreductions of 30% ormore is expected, at currentproduction. 2. Pilotplantwork, to optimize wood chip injection and fuel mixing, and aerodynamic modeling to optimizekilnhood design. Ourexperiencein these types ofkilnhas shown that aerodynamics can impact significantly oncombustionperformance. 3. Shoulditbenecessary, post treatment with SCRor SNCRto removeNOx atthe endofthe process canbeinvestigated. As this is a costly exercise, a decision onhow to proceedwill depend on the outcomes from Phases l and 2.

Contact: SanjivDhanjal Cell: +1 (484) 919-2029 -2- OG** DRAFT, Nov. 20, 2008

### 2. BACKGROUND ON FCT FCT is a combustion and process specialist company operating mainly within avariety ofindustries including such as pulp andpaper, cement, limestone and alumina. The group consists ofFCTCombustion andFCT-ACTech. FCT Combustionuses its broadrange ofexperience inthe design, operationandmaintenance of plants to deliverbenefits to its customers through optimizing the equipment itprovides from a total plantperspective. For example, combustionmodeling is akey part ofthe FCTburner designprocess, giving some predictability ofoutcomes and reduction inriskto projects. FCT-ACTechis an on-line analysis and control company. The company offers an on-lineXRD analyzer, COSMA, which provides a continuous mineral phase analysis ofa material stream as it passes through the analyzer. The information from the analyzer allows operators to see the quality of the product inreal time, rather than a few hours later, thereby allowing them to make process changes in the most timelymanner for plant andproduct control purposes. With over 50 kilnburner installations, FCT has vast experience in designing robust equipment that requires minimum maintenance. 

### 3. SCOPE OF SUPPLY 3.1 Phase 1: Burner Replacement with LowNOx Design In

### Phase 1FCTwill provide a new lowNOx GyroTherm burner to USS Minntac for the rotary kiln in line 5. Includedinthe scope are all technical services to ensure thatthe design is suitable, such as site survey, physical modeling, mechanical design and auxiliary equipment. The scope consists of: 

### 3.1.1 CombustionDesign using Physical Modeling Theprocess will include a visitto the plant site bytwo FCTengineers for approximately one weekto collect data, take plantmeasurements with FCT site equipment and gather drawings required to produce a scale model ofthe kiln. It

### is anticipatedthat a site engineerwill assisttheprocess for the FCT engineers to gather all necessaty information. The data gathered from site will be used to prepare a basic mass and energy balance and gain further insight into the process. It 

### will also be used to design, manufacture and test ofa scale model ofthe kiln and hood in our laboratories in Adelaide. The model will investigate the combustion performance using acid/alkali techniques. Once the combustion and flame characteristics have been determined, FCT will attempt altered operating conditions and burner designs and positions to improve kiln conditions. Themodellingprovides the critical design parameters for the newburner. Contact: SanjivDhanjal Cell: +1 (484) 919-2029 -3- OG** DRAFT, Nov. 20, 2008

### 3.1.2 MechanicalDesign and Supply ofDualFuelNaturalGas andBiomass GyroThermBurner FCTwill design, manufacture and supply a new kilnburner. The burnerwill be rated at 85MW (290 MMBtu/h) and consist of: 

## >- Central gas pipe with GyroThetm gas nozzle 

## >- Annular channel for Biomass 

## >- Air cooled annular channel for auxiliary guidepipes 

## >- Guide pipe for pilotburner 

## >- Guide pipe for main flame scanner 

## >- Additional axial gas nozzles, ifneeded 

## >- Outer channel for axial cooling air 

## >- Points for overhead suspension or floor mounted support A burner ofthis size is likelyto have a 600mm (24") NB outerpipe. 3.1.3 MainFlame Scanner UV Mainflame scanner for mounting onrear ofhood 3.1.4 Automatic PilotIgnition System FCT will design and supply our sparkignition system. The systemwillberated at 90 MW(300,000 Btu/h) liberation. It

### will include: 

## >- Pilot gas burner 

## >- Pilot valve train and controlboxfor safe and automatic ignition. 

## >- HTignitionboxwith 1Oftofcable 

## >- Flame amplifierrelay to indicate flame presencewith 10 ft cable 3.1.5 Installation, Commissioning,Evaluating andTraining FCT offers installation and startup assistance at ournormal dailyrates. The level ofassistance is site dependant on site requirements, but is expectedto be 10-15 days. Included is training for plant personnel on operation and maintenance ofthe new burner and auxiliary equipment. In addition, FCT engineers will conduct detailedprocess testing and fine tuning to ensure the NOx levels are minimized andproduction and quality are optimized. This exercise is expectedto be 2-4 weeks.
3.2 Phase2: PilotPlantTestingto OptimizeNOx Reduction
Contact: SanjivDhanjal Cell: +I (484) 919-2029 -4- OG** DRAFT, Nov. 20, 2008Hatch for forLowNOx 

### FCT offers to further investigate the operation ofthepelletizingkilnusing apilot scaleplant. The pilot scale plant is rated at 1MW(3 MMBtu/hr) and is located at ourhead office. Theplant is operated inconjunctionwith the University ofAdelaide. The work will include assessment offlames and emissions using actual fuels to be used at USS Minntac. While the details ofthis phase willbe somewhat dependant onthe outcomes ofPhase 1, pilot scale trials include the following scope
• Pilotplantburners design and manufacture: • Design andmanufacture ofcurrentand alternativehood: • Operatingpilot plantincluding sourcing fuels andreporting ofresults: 4. BUDGET PRICES ItemNumber Description Number BUDGETPrice 3.1 New Gyrotherm Kiln 1 US$200,000 burner 3.2 PilotPlantTrials 1 US$200,000 4.1 Site Services A daily rate ofUS1,300/day for each engineer would apply to site services. All costs such as airtravel (business class air travel from Australia to Canada), cost of hire car, accommodation and living expenses, and out ofpocket expenses would be charged to the customer at costplus 10% for supply of above site services. However these costs aren't applicable ifthe customer chooses to provide these to FCT during site services. 5. TERMS AND CONDITIONS This quotation and any ensuing contract is subject to the standardFCT, Inc. terms and conditions of contractunless otherwise agreed in writing exceptfor the terms and conditions outlined in Section 6 ofthis quotation. NOTE: All prices are based onthe current exchange rates. Should this change significantly from this by the time an order is placed, FCTreserves the right to adjust the final price.
6. SPECIAL CONDITIONS OF SALE 6.1 PriceBasis

Contact: SanjivDhanjal Cell: +I (484) 919-2029 - 5- OG** DRAFT, Nov. 20, 2008

### Prices are in US Dollars ex-works and exclude all applicable taxes and duties. 6.2 Validity This quotation is for BUDGETpurposes 6.3 Delivery Typical butnerdelivery is 26 working weeks. Should this proposal be successful, thenFCTwill develop aprojectschedule based onthe installation date required. All deliveryperiods are conditionalupon receiptbyFCT offull and complete information allowing design and engineering to proceed, andtimelypayment ofprogress payments.
7. TERMS OF PAYMENT All payments to be made net 14 days from invoice date bycheckor electronic transferto FCTInc. PaymentSchedule forItem 3.1 l> 

### 30% onplacement ofpurchase order l> 

### 60% ondelivery ofequipment l> 

### 10% on commissioning PaymentSchedule forItem 3.2 l> 

### 30% ofcontractvalue onplacement oforder l> 

### 30% ofcontractvalue on completion ofintermediatepilotplant trials and modeling l> 

### 40% ofcontractvalue onprovision offinal report. 8. LIMITATIONS OFLIABILITYAND CONSEQUENTIALLOSSES FCT's limitation ofliability shall not exceed the total contract value. FCT will not accept any claims for consequential losses howsoever arising. 9. EXCLUSIONS The following items and services are excluded from the scope of supply ofmain kiln butner in this quotation: l> 

### Any design, engineering, equipment supply or site installation services not specifically mentioned inthis quotation. l> 

### Site installation work. l> 

### General plumbing or electrical equipment installation is to be done by others. l> 

### No allowance has been made for any local duties andtaxes whichwillbeto customer's account. Contact: SanjivDhanjal Cell: +1 (484) 919-2029 -6- OG** DRAFT, Nov. 20, 2008

### > Allnecessary licences and approvals for installationwouldbe obtainedbythe customer. 

### > Delivery is ex-works, delivery, off-loading at site, civil works, site installation and electrical wiring areby others. 

### 10. OWNERSHIP OF INTELLECTUAL PROPERTY CREATED IN PROJECT Any Intellectual Property created during the Projectwillbe ownedbyFCT. FCTwillprovide to the Customer anin-evocable, royalty free, licence inperpetuity for the use ofthe BackgroundIntellectualProperty and the Created Intellectual Propertyby the customer for the application the subject ofthis proposal.


### 11. INSURANCES FCTwill obtain andmaintain insurances which it considers to be adequate for the Project, forthe duration oftheProject only (aperiod ofone month after the successful installation ofthe equipment or completion ofsupply ofthe service).

Contact: SanjivDhanjal Cell: +I (484) 919-2029 -7- OG** DRAFT, Nov. 20, 2008

### APPENDIX 1: FCT GYROTHERMBURNERS The economic performance of a rotary kiln is significantly influenced by the performance of its burner. This burner will influence the fuel consumption, production rate, product quality, refractory life and gaseous emissions for that plant. It 

### is often surprising to calculate the extent to which the return on investment ofthe whole plant can be affected by such a relatively minor and low cost item such as the kilnburner. The most effective design ofa kiln burner has to account for the aerodynamics ofthe environment in which the burner will operate, in addition to mechanical considerations to convey the fuel and ensure the burner withstands the harsh kiln environment. Another key factor is that the burner must operate within the range ofkiln operation. A kiln flame and its heat transfer characteristics are directly dependant on the mixing process for air and fuel, and this in tum depends equally on the airflow patterns around the burner as much as the burner design itself. Most burners utilize the phenomenon ofturbulentjetdiffusion to ensure efficient fuel and air mixing. This includes axial and swirl flows, mechanisms that are public domain knowledge. FCT also offers "precessing jet" flow, where gas exits in a stirring type (precessing) action. This creates a naturally staged flame, which has enhanced flame emissivity. FigureI: Cross SectionDiagram ofPrecessingJetNozzle

The FCT Gyro Thetmburner incorporates a precessingjetto create an efficient burner, with high heat transfer and low emissions. To allow for maximum control the Gyro Therm burner also includes a number ofstandard axial gas nozzles. These help to make the flame narrow and long. By adjusting the ratio of gas through the precessing nozzles and axial nozzles, the flame can be made longer or shorter. This means flame adjustment canbe carried out with little change in primary air.

Contact: Sanjiv Dhanjal Cell: +1 (484) 919-2029 - 8- OG** DRAFT,Nov. 20, 2008

### In some cases flame modeling is utilized. FCT utilizes various types of modeling to design an optimumburner. Some ofthese teclmiques are shownbelow.

Contact: SanjivDhanjal Cell:+I (484) 919-2029 -9- Figure2. Flame Modeling Techniques employed byFCT

Figure 3: Multi Fuel Gyro-Therm rotary kiln burner design

OG** DRAFT, Nov. 20, 2008for USS Minntac- forLowNOxBurner



### Swan Portland NOx Emissions

## ~ 400**~"'** 300**~0** 

## u,.**E~** 200**0.~** .sS 100**~** 

# ... • • 

# • • • 

# • • • 

# •• 

# ••• • 

# • +Swan Swirl •Gyro-Therm 0 0 z 950 1000 1050 1100 Burning Zone Temperature (° C)

Stack NOxemissions Type II clinker, Tyres, Oil and Gas 1200 

### • 37% Reduction

- 1000 

### • E a. Eo 

# s

... 0**~** @)**~** 0 z BOO 600 400 200 

### •

0 

# ' ' I
10-Jul- 11-Jul- 12-Jul- 13-Jul- 14-Jul- 15-Jul- 16-Jul- 6-5ep- 7-5ep- 8-5ep-

% % % % % % % % % % Date " Gyro-lhenn • Old bumer


### Figure4 and 5: Benefits Achieved with GyroTherm Burners

Contact: SanjivDhanjal Cell: +I (484) 919-2029 - 10- OG** DRAFT, Nov. 20, 2008

### APPENDIX2: FCTPILOTBURNERSYSTEMS

Contact: SanjivDhanjal Cell: +1 (484) 919-2029 

### Figure 6: FCTPilotBurnerFrontEnd

Figure7: Example ofPilot ControlStation

- 11- OG** DRAFT,Nov. 20, 2008

# ~HATCH~

ISO 9001 PR332002-01 US Steel Minntac- Nox Reduction Technology Report Doc United States Steel
- Minntac Iron Ore Pelletizing Operation NOx Reduction Analysis



# Appendix D Cost Summary**~** WorkingTogether Q SAFElY , Rev. 0, Page 20

e Hatch 2006/03 XUS Steel Minntac Iron Ore Pelletizing Plant
- NOx Reduction Hatch Project No. 332002 Cost Estimate(+/- 50% Order of Magnitude)
Energy Systems Associates 1. Burner Upgrades/Process Changes Scope ofServices Installed Costs

a. CFD Modeling Testing incl. below b. Pilot Plant Trials Demonstration Test incl. below c. Bumer Replacement Modified Bumer Tip 300,000 d. Combustion Air Upgrades - - e. Misc. Field Testing $30,000 f. Estimated NOx Reduction(%) 25% NOx Reduction 2. Selective Non-Catalytic Reduction (SNCR)

a. CFD Modeling CFD Modeling $50,000 b. Pilot Plant Trials Demonstration Testing $45,000 c. SNCR Upgrades SNCR Upgrades $900,000 d. Misc. e. Estimated NOx Reduction(%) 35% NOx Reduction 3. Selective Catalytic Reduction (SCR)

a. SNCR Upgrades notviable $4000/ton NOx b. Estimated NOx Reduction(%) 80% NOx Reduction 4. Low Temperature Oxidation (lo-TOx)

a. Lo-TOx Equipment Upgrades not viable $5000/ton NOx b. Estimated NOx Reduction(%) 90% NOx Reduction Nalco Mobotec BACT Process Systems FCT, Inc. Scope ofServices Installed Costs Scope ofServices Installed Costs Scope of Services Installed Costs Testing incl. below - - Pilot Plant Trials (lab) $200,000

- - - -



## - - - GyrotherTI'I Bumer $400,000 ROFA $2,000,000
- - N/A N/A

- - - Field Testing $50,000 15% NOx Reduction - 30% NOx Reduction

CFD Modeling submitted to USS Testing/CFD Modeling $80,000 not included not included - Rotamix (SNCR) $2,000,000 SNCR Upgrades $1,700,000 45% NOx Reduction 60% NOx Reduction

- -



## -

- -



## -Gateway View Plaza, 1600 West Carson Street, Suite 1 Pittsburgh, PA, USA 15219 1031 Tel (412) 497 2000 • Fax (412) 497 2212