Industrial Gasification Implementation for Biomass Presentation to Mosaic Company 22 May 2006.

Industrial Gasification

Implementation for Biomass

Presentation to Mosaic Company

22 May 2006

Presentation Objectives

• Industrial Gasification – Wellman Galusha (commercial industrial gasifier reference )

• HMI Background– MIFGA Project Capital Steam Plant Study (USDOE)

• HMI/ARI Collaboration– MIFGA Project HMI/ARI Heads of Agreement, 1998

• Coal gasification to MN Peat & Faggio wood gasification

• Vision 21 Proposal Recap– HMI/ARI/CPM/Coen/EPRI

Desired Outcome

• Mosaic commit to Industrial Biomass Gasification for drying processes (displacing high cost natural gas)

• Define Objectives and begin Site specific Feasibility Study – June 2006

• Develop Hot-Raw Wood Gasification plant to be on-line in early 2007 fueling Mosaic’s dryers

Industrial Gasification

• Wellman Galusha gasifier reference• HMI personnel have 50+ years of industrial

operational experience with W-G gasifier• W-G gasifier operated worldwide commercially

from 1930’s to 1960’s (principally gasifying coals)

• MIFGA project (1981-85) quantified gasifier performance, efficiency & gas cleaning

Justification for Small Industrial Gasifiers

• Cost and availability of waste wood in Florida

• Cost of HMI wood Gasification system applied to industrial dryers & other thermal processes

• Clean utilization of industrial waste (will further enhance the economics)

MIFGA Project1981-1984

• ScopeDriven by the energy economics and gas curtailments in the mid 70’s and early 80’s, industry and the US DOE needed to demonstrate the gasification performance of US coals in a proven industrial gasifier (single-stage fixed bed gasifier)

MIFGA ProjectProcess Flow Schematic

MIFGA ProjectCoals Gasified

MIFGA ProjectOperations

• Continuous 10-day runs (minimum) for each fuel gasified

• Continuous process monitoring and raw fuel gas sampling

• Process operations limits quantified throughout each test

• 203 days of continuous gasifier operation on 15 different coals/fuels

MIFGA ProjectContinuous Gas Sampling

MIFGA ProjectTar Droplet Size Distribution

MIFGA ProjectTar/Oil Yield Correlation

MIFGA ProjectTar/Oil Quality (HHV)

MIFGA ProjectBarrel Quantities of Tar

• Enlarged tar removal and collection system was designed and operated to recover gallon-quantities of tar and oil

• Tar/oil collection efficiency greater than 99.99%

• Established foundation for complete gas cleanup system with 99.99% removal efficiency

MIFGA ProjectSingle Stage Gasifier Schematic

MIFGA ProjectImpact on Capital Steam Plant Study

• KY coal gasification performance quantified

• Product gas quality known• Coal liquids quantified• System performance & economics

quantified• Environmental impact known• O&M known

Capital Steam PlantHMI Gasification Economics

Gasifier Island$18.8 million

Net Power 40.3 MWe

Gasifier Island installed @ $466/KW

MIFGA ProjectARI selected HMI Gasifier

• Gasifier design and performance demonstrated (fuel flexible)

• High gasification conversion efficiency (80-85%, gas+liquids)

• Simple and reliable gasifier operation • Flexible fuel experience and knowledge• HMI O&M capabilities desired by ARI• HMI gas cleaning technology & experience

Ansaldo RicercheContracts/Collaboration

• Early 1998

ARI began evaluating mild gasification technologies worldwide

• Late 1998

ARI selected HMI, Inc. as technical partner

• December 1998

Signed HEADS of the AGREEMENT

Ansaldo RicercheContracts/Collaboration

• Q1 2000 HMI, Inc. Biomass Gasifier design completed

• Q2 2001 HMI/ARI gasifier fabrication and installation

completed

• July/August 2001 HMI commissioned 1.3m HMI/ARI gasifier– Started on coke– Initial biomass faggio (beech wood) chips– Commissioning complete success

HMI/ARI Gasifier

Performance:

• 1.3 Meter Diameter• Coal throughput: 0.7-1.0 T/hr• Clean gas: 14-16 MM/BTU/hr• Electrical output: 0.7-1.0 MWe

HMI/ARI Gasifier

R&D Activities:• Flexible fuel pellet development

• Automatic bed level and fuel feed

• Automate grate drive and ash management

• Process control via continuous gas analysis

• Gas cleaning for both fuel cell & gas engine implementation

HMI/ARI GasifierFaggio Woodchip Feed

MN Peat pellets (MIFGA)

• Excellent gasification performance

• Hot-raw gas yields 92% conversion efficiency ( 60 MMBtu/hr/10-ft dia unit)

• Mosaic/HMI will establish integration and utilization of Hot-raw gases in dryers

• Degree of gasifier automation will be jointly defined by HMI & Mosaic

MN Peat Pellets Proximate & Ultimate Analyses

Proximate Analysis (%) Ultimate Analysis (%) Volatile Matter 42.20 Carbon 34.30Fixed Carbon 16.10 Hydrogen 3.50Ash 7.30 Nitrogen 1.60Moisture 34.40 Sulfur 0.20Sulfur 0.20 Oxygen 18.70

Ash 7.30Moisture 34.40

MN Peat Pellets Proximate & Ultimate Analyses

Heating Value: 6,092 BTU/lbAsh Fusion Temperatures (Deg F)

Oxidizing ReducingInitial deformation 2135 2050Softening 2155 2085Hemispherical 2205 2100Fluid 2220 2135

Free Swelling Index (FSI): 0

MIFGA ProjectMN Peat pellets Product Gas

Dry Gas Composition (Mol %)Hydrogen 17.20Carbon Monoxide 28.40Methane 1.46Ethane 0.10Ethylene 0.087Propane 0.024Propylene 0.04Carbon Dioxide 7.97Nitrogen & Argon 44.3

Dry Gas HHV 168 Dry Gas LHV 158

MIFGA ProjectMN Peat pellets Design Performance

MN Peat gasification throughput (120 lb/hr/sq-ft grate)Air/Peat 1.29 lb/lbSteam/Peat 0.19 lb/lbSaturation Temperature 139 ºFGas Offtake Temp 251 ºFGas Dewpoint 153 ºFTar Yield 7.9 lb/100 lb-peatTar HHV (dry) 15,552 Btu/lbTar Pour point 110 ºFTar Specific gravity (60/60 ºF) 1.0491

Vision 21

Overall US DOE Goal:

Effectively eliminate, at competitive costs, environmental concerns associated with the use of fossil fuels.

Vision 21 Goals

• Efficiency – Electrical generation 60% for coal-based systems

• Environmental – <0.01 lb/MMBtu sulfur & NOx

<0.005 lb/MMBtu particulate<50% emission rates organic compounds<1 lb/trillion Btu, Hg

50% reduction in CO2 via efficiency gains

• Costs – Must be cost competitive• Timing – Major improvements by 2007

Vision 21 Proposal Objectives

• Demonstrate fuel flexibility (coal & biomass)• Demonstrate nominal $0.00 cost for industrial fuel

pellets• Utilize air blown fixed-bed industrial gasifier• Clean gas for fuel cell or gas engine operation• Gas used for various power generation systems

(0.5 – 10MWe)• Demonstrate 50+% efficiency using fuel cells for

power generation

Vision 21 ProposalIndustrial Gasification Economic Objectives

• Coal/Biomass pellets cost < $0.00

• Industrial gasifier island installed for

< $500/KW

• Operational costs at industrial site

< $50/Kwyr

• Clean fuel gas cost < $3.00/MMBTU

Vision 21 ProposalThree Phase Project

• Phase I Coal/Biomass pellet development

• Phase II Demonstrate gasification performance of best

commercial pellets

• Phase III Demonstrate gas cleaning & fuel cell performance/efficiency

Vision 21 ProposalHMI/CPM Pellet Development

• Car fluff and coal pellet development

Action Plan(HMI & Mosaic)

• Scope & Begin Feasibility Study for waste wood by 12 June 2006 and complete by mid August 2006 (8 weeks)

• Begin Permitting Process by First of September 2006

• Deliver Hot-raw Gas to Mosaic’s dryer by end of August 2007