## A Babcock Power Company Inc.

Vogt Power International, Inc. 4000 Dupont Circle Louisville, Kentucky 40207 USA



## Vogt Power International, Inc. proposes to furnish to:

Barr Engineering Company Minneapolis, MN

For the Project:
Minnesota Steel

BACT Study Proposal Ref. Number: V75033

the equipment and services as described in the following pages.

Customer: Barr Engineering Company
Plant ID: Minnesota Steel
VPI Ref. No.: V75033 Project: BACT Study Date: October 28, 2005 Validity Date: November 28, 2005



### This document is protected Attorney Work Product requested by counsel in anticipation of litigation.
Do not disclose without consent of counsel. Item 8

## Table of Contents

1 INTRODUCTION................................................................................................................. ....1

2 RSCR TECHNOLOGY ............................................................................................................1

3 SCR PROCESS DESCRIPTION..............................................................................................2

3.1 D ESIGN B ASIS

............................................................................................................................... 3
3.2 R EGENERATIVE H EATER P ROCESS D ESCRIPTION ......................................................................... 3
3.3 A MMONIA I NJECTION C ONTROL ................................................................................................... 3
3.3.3 U TILITY C ONSUMPTION ............................................................................................................ 4
3.4 E LECTRICAL P OWER ..................................................................................................................... 4



### 4 SCOPE OF SUPPLY .............................................................................................................. ..5

4.1 G ENERAL S COPE TO BE P ROVIDED ................................................................................................ 5
4.2 S COPE T ABLE

............................................................................................................................... . 5
4.3 S YSTEM D ESIGN D ETAILS ............................................................................................................. 8
4.4 D OCUMENTS TO BE P ROVIDED FOR R EVIEW AND I NFORMATION ............................................... 10
4.5 P ROVIDED BY OTHERS :................................................................................................................ 11



### 5 RSCR PERFORMANCE GUARANTEES ............................................................................11

5.1 G UARANTEES .............................................................................................................................. 1 1
5.2 S YSTEM W ARRANTY ................................................................................................................... 11



### 6 COMMERCIAL................................................................................................................... ...12

6.1 P RICING B REAKDOWN ( INCLUDING OPTIONS ) ............................................................................ 12NOTICE: This document contains sensitive proprietary information, not intended for release to the general public and exempt from discl osure under applicable laws. Anyone in possession of the document other than the nam ed recipient should immediately destroy the document..

Vogt Power International Inc. - Louisville, Kentucky, USA
Document Title: RSCR Budget Estimate Vogt Power Ref. No.: V75033
Customer: Barr Engineering Company Page No.: 1

Proposal: BACT Study Date: October 28, 2005 

## 1 I NTRODUCTION
Vogt-Power International (VPI), a member of Babcock Power Inc. (BPI), an ISO 9001 certified, full service OEM for complete environmental systems and boiler technologies, is pleased to provide this Budget estimate to Barr Engineering Company for two RSCR systems.

BPI has supplied more than 48 operating SCR totaling over 61,000 MW, and over 100 operating FGD systems of all types totaling over 59,000 MW. This extensive experience and knowledge, developed over 25 years, has lead to the development of our RSCR technology. BPI has built two RSCR facilities and has proven that the technology exceeds the guaranteed performance for NOx reduction.

We believe our RSCR technology offers you the optimum solution for your facility. We provide:

• Emissions guarantee, either percent removal or fixed rate

• Low energy consumption (> 95% recovery)

• Self-contained tail-end unit

• Includes fans, controls, burners

• Install/Start up with minimum outage

• Bypass capabilities for maintenance

We look forward to working with Barr Engineering on this innovative project at your Client’s facility.



## 2 RSCR T ECHNOLOGY
Babcock Power Inc. has developed an innovative, advanced, high-efficiency NOx reduction technology that has been specifically designed to greatly reduce the NOx emissions from boilers and other gas sources at relatively low cost. The new technology is called Regenerative Selective Catalytic Reduction or “RSCR”. It is guaranteed to achieve NOx emissions required by the application. The system is a “tail-end” SCR, located after the particulate removal device, where the gas temperatures are ~300°F, which is below the operating temperatures for conventional SCR catalysts. It can easily be retrofit just before the existing stack, enabling the facility to continue operating with only a minimum outage for tie-in. A patent on this technology has been applied for meaning that once it is issued, the technology will exclusively be available from VPI as a Babcock Power Inc. subsidiary.

Based on the feedback we have received from a number of potential customers, the total cost of this system is less than the cost to install a conventional SCR system which is positioned downstream of the economizer or alternative tail-end SCR technologies.

Features of the system include:

• High NO X removal efficiency in compact design

• Minimal energy costs because of the unit’s high thermal efficiency

• Modular, standard design to minimize installation cost

• Self-contained tail-end unit

• Includes booster fan, controls

• Install/start up without prolonged outage

• Bypass capabilities for maintenanceNOTICE: This document contains sensitive proprietary information, not intended for release to the general public and exempt from discl osure under applicable laws. Anyone in possession of the document other than the nam ed recipient should immediately destroy the document..

Vogt Power International Inc. - Louisville, Kentucky, USA
Document Title: RSCR Budget Estimate Vogt Power Ref. No.: V75033
Customer: Barr Engineering Company Page No.: 2

Proposal: BACT Study Date: October 28, 2005 The RSCR is a system that removes NOx from flue gas using a catalytic reduction process. The process uses a reagent added to the flue gas stream to reduce NOx to harmless products, typically N 2 and H 2 O. The RSCR is designed to operate at the end of the plant before the flue gas is discharged to the stack. Because the gas is significantly below the temperature required for NOx SCR catalyst to operate, it is required to elevate the flue gas temperature for the system to perform. This takes place in the RSCR with >95% thermal efficiency which far exceeds other tail-end SCR technologies that use plate/tubular/rotary heat exchangers for energy recovery where only 50 -70% of the input energy is recoverable.



## 3 SCR P ROCESS 

## D ESCRIPTION
The Selective Catalytic Reduction process converts the NOx contained in the flue gas into nitrogen (N2) and water (H2O) with the use of ammonia (NH3) as the reduction agent. The basic reactions are the following:

4NO + 4NH 3 + O 2 ---> 4N 2 + 6H 2 O
2NO 2 + 4NH 3 + O 2 ---> 3N 2 + 6H 2 O

The following side reactions may occur on a small scale:

4NH 3 + 3O 2 ---> 2N 2 + 6H 2 O
4NH 3 + 5O 2 ---> 4NO + 6H 2 O

To achieve sufficient reaction rate between 570oF and 650oF, specially formulated catalysts have to be applied. The NOx reduction efficiency of the catalyst increases with rising temperature

Before the flue gas enters the SCR catalyst, ammonia is added and mixed in such a way that a homogeneous distribution of ammonia and flue gas is achieved. In addition, the gas temperature, and gas velocity are also made uniform. After mixing, the flue gas and ammonia mixture then flows through the catalyst where the NOx is converted in accordance with the reaction equations described above.

The operating temperature, catalyst volume and SCR NOx removal efficiency are carefully adjusted, and the mixing and distribution is designed appropriately, so that the non-reacted ammonia exiting the reactor, i.e., ammonia slip, is near zero. This is essential to high system performance.

Conventional “tail-end” SCR systems utilize heat exchangers to recover the heat present in the gas leaving the catalyst bed, transferring it to the incoming gas. A burner or other means of elevating the gas temperature is needed ahead of the catalyst to offset the inefficiencies in the heat exchanger. Plate, tubular, or regenerative (rotating basket type) heat exchangers have been utilized. The initial costs of these devices plus their inherent inefficiencies make them expensive to purchase and operate. The inefficiencies in the heat exchanger result in auxiliary fuel consumption that is at least three times that of the RSCR. On a unit of this size, that translates to a prohibitively high additional fuel costs for other tail end- units. Conventional systems are also physically very large and require significant structural steel to support them.

The concept of the RSCR is to combine the heat recovery, temperature control, and catalyst elements of the process into a single unit and to provide optimum NOx removal with the maximum heat recovery practical.NOTICE: This document contains sensitive proprietary information, not intended for release to the general public and exempt from discl osure under applicable laws. Anyone in possession of the document other than the nam ed recipient should immediately destroy the document..

Vogt Power International Inc. - Louisville, Kentucky, USA
Document Title: RSCR Budget Estimate Vogt Power Ref. No.: V75033
Customer: Barr Engineering Company Page No.: 3

Proposal: BACT Study Date: October 28, 2005 

### 3.1 Design Basis
The RSCR facility is to be designed to reduce nitrogen oxide (NOx) emissions from the flue gas generated from the combustion of biomass/ wood fuels. The basis of this offering is a single nine canister RSCR unit for the Induration Furnace Waste Gas and a single 7 canister RSCR unit for the DRI Reformer, taking flue gas from the existing duct and discharging the treated gas back to the existing stack.



### Table 3.1 Emissions Table

RSCR System

SV206 SV302 Flue Gas Flow, SCFM 290,562 161,216 Flue Gas Temperature, o F 284 495 NOx inlet, ppmvd 153 255 Particulate, grains/dscf max. inlet .02 .02 NOx outlet, ppmvd 47.43 79.05 NOx removal, % (basis of estimate) 69% 69%



### 3.2 Regenerative Heater Process Description

To achieve sufficient reaction rate the flue gas must be between 570oF and 650oF. The NO

x reduction efficiency of the catalyst increases with rising temperature. To bring the flue gas to this temperature, a regenerative heater (RH) is used. The RH utilizes beds of ceramic media to achieve a very high level of thermal efficiency. Flue gas passes through a preheated bed, picking up heat from it. The temperature rises from 325 oF to 570 oF before it passes through the catalyst. The gas then passes through the open chamber above the catalyst where burners raise the temperature to around 620oF. The heated gas then passes downward through an adjacent canister where the heat is absorbed, and then passes to the outlet duct at a temperature of about 15-20 oF higher than the inlet. Inlet and outlet flow is cycled between the canisters to alternately preheat
the media and recover heat from it.



### 3.3 Ammonia Injection Control

3.3.1 Ammonia Demand Signal

The goal of the ammonia control system in a RSCR installation is to accurately inject a correct stoichiometric amount of ammonia into the flue gas upstream of the catalyst, to achieve the desired NOx removal without exceeding the ammonia slip specification. To accomplish this, the existing CEMS NOx monitor in the stack is used to measure the concentrations of NOx out of the RSCR. The injection of ammonia is controlled by adjusting the speed of a variable speed injection pump in response to the NOx concentration in the stack. If the NOx concentration exceeds the set point, the pump speeds up to inject more ammonia and bring the NOx concentration down. Conversely, if the NOx concentration decreases, the injection pump slows down to inject
less ammonia.

3.3.2 Dual Fluid Nozzle Injection

A dual fluid nozzle uses the combination of fluid pressure drop and compressed air (atomizing air) to mechanically atomize the aqueous ammonia directly into the flue gas stream. This technology avoids the use Confidential information redacted by Barr to maintain Barr's confidentiality with their client for which the information was initially obtained.