Company Overview

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CD DERIVED BIOMASS ENERGY FACILITIES
DEVELOPMENT OPERATIONAL ISSUES PRESENTED
BY Dammon M. Frecker Vice President, Energy
Industrial Services ESS Group, Inc. Wellesley,
MA 781.489.1146 dfrecker_at_essgroup.com

www.essgroup.com
October 28, 2008
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OVERVIEW

• Project Concepts
• Motivators Incentives
• Licensing Requirements
• Project Developments Operating Concerns
• Existing Proposed Projects

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PROJECT CONCEPTS

• PROJECT SIZE
• Typically 15 40 MW
• Balance revenue, fuel risk, technology and
  impact considerations.
• 15 30 acres
• Power island, fuel receiving and storage, water
  treatment, ash handling, administration
• FUEL REQUIREMENTS
• 20 MW Plant gt 600 TPD (200,000 TPY)
• Clean/unadulterated wood?
• Limits on CD Wood fraction?

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PROJECT CPROJECT PPPROJECT CONCEPTS
FLUIDIZED BED COMBUSTOR
http//www.energyproducts.com/fluidized_bed_boiler
s.htm
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PROJECT CONCEPTS

• IMPACT MITIGATION
• Enclosed wood storage and conveyors
• Pollution Control Train
• SNCR (SCR?) for NOx Control
• ESP, Fabric Filter (Baghouse) for PM Control
• Scrubbers (?) for acid gas control
• Carbon Injection (?) for metals control
• Enclosed ash handling
• Enclosed wood grinding
• Dry Cooling?
• Zero Liquid Discharge?
• Rail Access?
• LOCATION, LOCATION, LOCATION

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MOTIVATORS INCENTIVES

• MassDEP Waste Ban
• Increased wood supply?
• Renewable Energy Requirements
• Programs in place in MA, CT and NY
• Provide added revenue stream
• Lower Cost Fuel Supply
• Increasing costs of oil and gas
• Opportunity for CD wood tipping fee?

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MOTIVATORS INCENTIVES

• Climate Change/Greenhouse Gas Initiatives
• Biomass combustion considered carbon neutral
• Opportunity for offsets?
• Production Tax Credits
• Open-Loop Biomass approved (0.015/kW-hr)

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MOTIVATORS INCENTIVES

• Fuel Diversity
• Increased reliance on natural gas
• Concerns with gas supply and oil costs
• Energy Demand
• ISO-NE forecasted potential shortfalls in 07 and
  beyond
• Motivate financial markets
• Ability to feed load pockets?

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LICENSING REQUIREMENTS

• Environmental Impact Assessment (e.g. MEPA)
• Potential triggers
• Energy facility gt 25 MW (ENF, EIR if required by
  Secretary)
• Major Source of Air Emissions (ENF, EIR if
  required by Secretary)
• Solid waste processing, combustion, etc. gt 150
  TPD (ENF EIR)
• Land Alterationgt 25 acres
• Rare species, hist/arch, ACEC things to watch
  out for
• Other agencies cannot issue permits until MEPA is
  complete
• May take 6-12 months depending on Sectarys
  requirements and availability of information.
• Solid Waste Site Assignment/Permitting
• Not required if
• No processing
• Valid air permit
• BUD

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LICENSING REQUIREMENTS

• Air Permitting
• Major CPA Nonattainment Review (MassDEP)
• PSD Review (EPA in MA and NY)
• BACT, LAER, Emissions Offsets
• Up to 190 day application review period
• Air Toxics Impacts
• Boiler MACT
• Local Land Use Zoning
• Stacks (height, visual impacts, visible plumes)
• Odors?
• Traffic (30-40 trucks per day _at_ 20 MW
  employees, other)
• Water Supply Discharge
• 500-800K GPD Consumption (wet cooling)

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OTHER ENVIRONMENTAL CONCERNS

• Is it Incineration?
• Moratorium
• New Source Performance Standards (Sub CCCC -
  CISWI)
• Is it Solid Waste?
• Mass probably no, other states probably yes
• Is it Hazardous Waste?
• Qualified Renewable or Legislated Illegal?
• Is the wood clean (enough)?

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DEVELOPMENT CONCERNS

• Securing Land
• Time for Permitting
• Purchase Power Agreements
• Long Term REC Agreements
• Supply and price uncertainty
• Regulatory uncertainty
• Securing the fuel supply
• Financing! (40-80 MM)

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OPERATIONAL CONCERNS

• Maintaining Fuel Quality
• Boiler fouling
• Emissions
• Ash Quality
• Dispatch Order
• Frequency of startup and shutdown
• Wood pile management

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EXISTING FACILITIES

• BioEnergy, Hopkinton, NH
• 12.5 MW plant
• Granted permit for CD in 1984
• Significant local opposition, but demonstrated
  compliance
• No Advisory Ruling or SOQ
• Boralex, Stratton Energy Energy, ME
• 45 MW plant
• Re-tooling Advisory Ruling June, 2004
• 25 CD
• Greenville Steam Company, ME
• Re-tooling (BFB) with Advisory Ruling SOQ

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PROPOSED FACILITIES

• GenPower Hinsdale, NH Uxbridge, MA
• Two different Advisory Rulings
• Emissions not specified
• Projects announced with some opposition
• Russel Biomass, Massachusetts
• 50 MW BFB
• Clean wood waste e.g. construction demolition
  wood waste
• Emissions not specified
• EcoPower, Massachusetts
• 20 MW plant
• Advisory Ruling including emissions