SynCoal Partners LLC

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reduces emissions while
increasing net generation, by converting your
coal to the fuel you prefer!
Ray W. Sheldon, PE President CEO June 9,
2009
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SynCoal Overview

• SynCoals Proven Technology Converts Your Coal To
  The Fuel You Prefer
• Recovers heat from your plant efficiently with a
  non-fluidized tower, converting 2 x 0 coal into
  consistent bituminous fuel
• Removes natural mineral matter that can be safely
  landfilled, reducing emissions
• Provides continual coal market advantage
• SynCoal Reduces Emissions
• Improves combustion, reducing NOx and CO
  formation
• Reduces sulfur, mercury and particulate emissions
  with precombustion removal
• SynCoal Increases Production
• Reduces slagging, increases boiler capacity
  availability
• Reduces auxiliary power for mills fans
• Increases efficiency, reducing CO2 emissions
• Applications include coal-fired power
  generation, coal gasification, cement and steel
  production facilities

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SynCoal Converts Low Rank Coal to Engineered
Bituminous Fuel

• Recovers heat from the host to remove moisture
  but not VOCs from the coal with minimum energy
  use and without fluid beds or selective coal
  sizing

• Selectively liberates mineral impurities
• Efficiently sorts clean coal from mineral
  impurities
• Eliminates customers dust and stability concerns
  with enclosed process
• Provides customer with fuel and transportation
  options they can arbitrage throughout the plants
  life.

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SynCoal History

• SynCoal was formed in 2005 to commercialize
  SynCoal
• SynCoal is the successor to a joint venture
  between the US Department of Energy (DOE),
  Montana Power and Northern States Power and was
  formed in 1990
• 105 million was invested in the Joint Venture
  over 11 years
• The Western SynCoal plant produced and sold 2
  million tons of SynCoal to a variety of
  industrial and utility users
• After Montana Power sold Western SynCoal in 2001,
  management re-acquired the technology (2003),
  re-engineered the process, expanded the
  development team (2005), secured seed funding
  (2006), completed engineering and market studies
  (2007) and improved the IP position
• SynCoal has developed the lowest cost upgrading
  system for producing a consistent quality,
  engineered bituminous fuel at the customers site.

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Development

• Corporate Experience
• Successor to Northern States, Montana Power, DOE
  Partnership that invested 105 million
• Commercial Experience
• 27 years development
• 9 years operations
• 2 million tons sold
• 8 previous commercial customers
• 2 years supplemental firing
• Advanced Engineering
• Significant Cost Reductions
• Additional Patents Pending

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Example SynCoal UpgradeColstrip, Montana
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ExperienceCenter, North Dakota

• Processed North Dakota lignite
• 85 moisture reduction, 48 SO2 reduction, 27
  ash reduction
• Cyclone test burn in a 250MW unit
• Cyclones visually showed better combustion,
  brighter hotter flame
• Melted slag out better than fuel oil Klinker
  Killer
• Improved slag tapping Jurassic Castor Oil
• Total boiler gas flow reduced by 13 - reduced
  load on FD / ID Fans
• Boiler efficiency improved from 82.2 to 86.3
• Klinker Killer Tests verified previous
  results and
• Significantly increased temperature in slagging
  zones
• Co-firing demonstrated ability to remove slag
  deposits
• Increased heat absorption in cyclones, reducing
  FEGT

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ExperienceColstrip Unit 2, Montana

• 11 Month operation at Colstrip Unit 1 with PRB
  Coal
• versus Colstrip Unit 2 with 15.7 SynCoal
• Generation comparison
• Gross generation increased 309 to 317 MW 8
  MWg ?
• Auxiliary load decreased 26 to 24 MW -
  2 MWa ?
• Net generation increased 283 to 293 MW 10
  MWn ?
• Btu for Btu 29 net generation increase
• Efficiency comparison
• Heat rate improved by 85 Btu/kWh
• Btu for Btu 8.8 efficiency improvement
• Emissions comparison
• SO2 stack emissions reduced by 8
• NOx stack emissions reduced by 19
• Btu for Btu 49 SO2 emission reduction

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ExperienceIllinois Coal Test

• SynCoal Laboratory Simulation on Illinois
  Bituminous Coal
• Conventional Gen2 Process
• Product Moisture Content 13.0
  2.0
• Energy Yield 86.4
  87.5
•  
• Btu/lb HHV 10,900 12,350
• Btu/lb LHV 10,350 11,900
• Sulfur, SO2/Mbtu 6.6
  6.3
• Ash, / MBtu 12.9 11.9

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Engineered Coal Benefits
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Model For Mongolian Coal Resource Development

• U.S. Coal-Fired Generators Decreased Emissions By
  Over 77 Since 1970
• Addition of Particulate Control Technologies
• Switch to Naturally Cleaner Coals Powder River
  Basin
• Increased Efficiency Through Technology
  Advancements
• Improved Combustion Controls
• Addition of Post-Combustion Controls
• Engineered Coal Technology Can Enhance
  Development Opportunities
• Reduce New Project Capital and Operating Costs
• Increase Thermal and System Efficiency
• Prepare For Future Technology Opportunities
• Engineered Coal Technology Is Ready to Deploy Now

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SynCoal

• SynCoal Converts Your Coal Into The Fuel You
  Prefer
• Reduces Capital Requirements
• Increases Net Generation
• Reduces Emissions

Ray W. Sheldon President CEO 406.855.5008 ray.s
heldon_at_syncoalsolutions.com SynCoal Solutions,
Inc. 8000 S. Chester Street, Suite
375 Centennial, CO 80112-3514 www.syncoalsolution
s.com