Value to Utilities of Agronomic Uses for Gypsum

1
Value to Utilities of Agronomic Uses for Gypsum

• Lamar Larrimore
• Southern Company

September 13, 2006
2
Large Volume Applications

• Wallboard - established
• Cement - established
• Agronomic - potential
• Crop yield
• Soil erosion
• Poultry waste runoff

3
Estimated Gypsum Production and Demand

• U.S. Gypsum Production (M tons)
• 2004 2010 2020
• Mined 18.0
• Synthetic 12.0 25.0 40.0
• Import 10.4
• U.S. Gypsum Consumption (M tons)
• 2004 Future
• Total FGD Total
• Wallboard/Plaster 31.3 8.2 similar
• Cement 3.3 0.5 similar
• Agriculture
• Crop 0.7 0.15 ??
• Erosion Control 18.0
• Poultry Waste 4.0
• AL, FL, GA, MS only
• Sources USGS, USDA, ACAA

Conclusion Manufacturing markets cannot absorb
all FGD gypsum at peak production
4
Gypsum Quality Requirements

• Manufacturing applications have tighter
  restrictions for product performance needs
• moisture, purity, chlorides, ash, particle size
• Agriculture has fewer criteria
• moisture, chlorides, Ca/S

5
Environmental Questions

• Trace element content
• Potential volatilization of adsorbed emissions
• Plant tissue uptake

6
Possible Barriers

• Regulatory
• Environmental
• Agriculture
• Technical acceptance
• Utility interest / commitment
• Market composition
• Fragmented with scattered demand (good/bad)
• Marketers
• Few large regional / national players with
  agricultural experience
• Utilities not set up for agricultural marketing

7
Reasons for Utility Interest

• Low capital cost
• Applicable for all power plants
• Large potential market reduces storage needs
• Fewer quality criteria
• Broad needs
• Crops
• Soil types
• Industries

8
Actions

• Continue to develop additional technical
  performance and environmental information
• Develop demonstrations to lend credibility /
  publicity to lab results and presentations
• Clearance on environmental regulations
• Achieve comfort level so that additional permits,
  RD, case studies not needed for commercial use
• Encourage utilities or larger commercial
  participants to serve fragmented markets
• Involve U.S. and State Departments of Agriculture