CDS GROUPIncorporating

R-O2 Bio Coal Technology

Technology Presentation

Presentation Overview

Technology and Patents

Plant Flow, Schemes and Processes

BioCoal Characteristics

BioCoal Plant – Photos of Build

Co-Firing with BioCoal

Plant Design and EPC

52 International Patents

Unique Features The R-O2 torrefaction technology is a patented method

that uses dry SHS as the heating medium, to perform the drying and torrefaction processing

The dry SHS medium is uniquely created from the water fraction contained in the wet feedstock and is used at virtual atmospheric pressure

The R-O2 technology system operates on patented recirculation principles, and adopts proprietary thermal recuperative techniques, an off-gas processing system and a patented mano-metric density seal at the systems input and exit points

Temperature Profile

Technology Key Benefits Faster initial drying times than conventional systems. High drying / operating efficiencies. Low supplementary energy input requirements. Containment and use of exhaust emissions. Low internal drying velocities to prevent ‘fly-away’ pick-up of

light fractions product. Low abrasion / friction to product. Energy recovery options. Sterile product and condensate from the process. Inert atmosphere drying & processing conditions, eliminating

potential of product combustion.

Independent Verification Independent Studies by the bodies listed below, have

demonstrated that R-O2 Technology drying and processing technologies have demonstrated:

drying time reductions of up to 80%.

CERAM Research

Best Practice Programme - Study Energy Efficiency Best Practice Programme (UK)

Future Practice Final Report 58 by ETSU, Harwell, Didcot, OX11 0RA, acting on behalf of the DETR. Found:

R-O2 drying offers energy consumption savings over industry survey averages of between 60% and 85%.

Block Flow Diagram

Superheated steam at atmospheric pressure is created and re-circulated over an indirect heater and through the feedstock, to dry and torrefy the material

Torrefaction Process

DryingDrying BioCOBioCO22al Plantal Plant CoolingCoolingShreddingShredding

EnergyEnergy(heat)(heat)

Vapor Vapor (+odour)(+odour)Energy Energy (pyrolysis gas)(pyrolysis gas)

EnergyEnergy(heat)(heat)

Thermal OxidizerThermal Oxidizer Purified Flue Gases / Purified Flue Gases / Recoverable energy sourceRecoverable energy source

Solid Fuel FurnaceSolid Fuel Furnace

FineFiness

EnergyEnergy(heat)(heat)

BioCOBioCO22aall

Process Flow Sheet

Drying Phase The patented drying

technology operates by creating super heat steam (SHS) for its drying medium. This SHS is generated solely from the evaporating moisture contained within the biomass feedstock as it is dried

The creation of SHS displaces air/oxygen from the process and creates the inert “low level oxygen” atmosphere for high temperature drying 150ºC

Torrefaction Phase Directly from the drying

process,the woodchip is transferred into a continuous rotary torrefaction processor via airtight sealed conveyors

A mild thermal pyrolysis in a SHS atmosphere (240 - 280°C) converts the wood chip/biomass into biocoal

The biocoal is then “cooled” to below 130°C before discharge to atmosphere

Biocoal is ready for grinding, pulverising or densification

Thermal Recuperation and Off-gas The off-gas from the torrefaction process is sent to a

thermal oxidisation system for destruction and cleaning before being exhausted to atmosphere free from VOCs

The oxidiser operates at around 750 – 800°C and the torrefaction gases are exposed to this heat source for a minimum of two seconds to effect complete destruction of the VOC’s and other organic chemicals [12]

The energy recovered from the thermal oxidation of VOC’s should be used as an additional thermal source in both drying and torrefaction processes, thus reducing fuel (natural gas/oil) required to indirectly heat the re-circulating drying and torrefaction gases.

Key Criteria Capital cost less important than Operational cost

Safety

Efficiency

Up-time

Speed of repair/replacement

Scaleable and modular

R-O2 Design Advantages Energy optimization important (cost)

Equipment selection Efficient - Safe (explosion hazard) - Scalable Robust - Reliable - Modular Bankable - Up time is high - Guarantees

Low energy requirement in combination with energy recovery potential

High thermal process efficiency

Using super heat steam, a big advantage

Louvre drum design is an ideal option for fast, consistent, efficient, safe drying & thermal processing

Able to process larger particle sizes

AirlessTM Louvre Drum Different size options

Same equipment type useable for all processing steps

Experience with different drum design technologies

Adaptation for specific conditions/requirements possible

Thermal Oxidisation Post torrefaction VOC‘s

gas thermal treatment technology

Proprietary equipment design

Energy Recovery using air,water, thermal fluid etc

Energy re-use in drying and thermal processing

Bag house for elimination of particulate emission

Maximum energy recovery/re-use

Biomass Boiler Heat recovery using thermal

fluid

Fuelled primarily by Biomass fines

Bag house filter

Classical grate stove

Emissions Management Emissions

Odour, wood gases, acids, dust emissions (ash, soot)

No contaminated water

Measures taken All off gases, combustible gases and vapours from drying and

torrefaction are sent to Thermal Oxidiser for complete destruction/clean-up

Bag houses in the effluents from Thermal Oxidiser and from boiler

Emissions will observe Local StandardsEmissions will observe Local Standards

Wood Reaction CharacteristicsTorrefaction of wood in an inert atmosphere:

Up to 160°C wood mainly loses its water

Between 180 and 270°C wood gives off additional moisture and begins to darken and brown, giving off cellulose, carbon dioxide and wood acids. Wood at this stage loses its hygroscopic properties and becomes more friable than untreated wood but less friable than charcoal

Torrefaction occurs between 240 and 280°C and wood at this stage in the process acquires the properties that are specific to BioCoal

BioCoal Characteristics Has heating value close to steam coal with LHV of 20 to 22 MJ/kg

Is CARBON NEUTRAL as it has no net release of CO2

Is consistent and homogenous. Different types of feedstocks have similar physical and chemical properties after torrefaction, which is important for process optimization and control

Can be pelletised / densified at costs much lower than even saw-dust for distant shipments

Is densifiable to sub-bituminous coal level (16-17 GJ/m3) - higher than bio-pellets (~10 GJ/m3)

Is friable and has greatly improved grinding properties, when compared to raw biomass or wood pellets

Becomes hyrdophobic to atmosphere moisture re-absorbtion (ideal for external stock piling)

BioCoal (Woodchips) AnalysisSample Ref: 21576 Torrefied Wood

Lab Ref: TES Bretby

Moisture % 2.1

Fixed Carbon %* 21.3

Sulphur % 0.12

Volatile Matter % 73.5

Gross Calorific Value kJ/kg 17945

Calorific Value kJ/kg (DAF)* 22350

Gross Calorific Value Btu/lb 9609

Ash % 0.7

Volatile Matter % (DAF)* 76.1

Test Results calculated to 'As Received' moisture basis. * calculated using determined values

BioCoal (Pellets) AnalysisRWE 10/5/2008 Results Basis

Method       As As   Dry

Reference     Units Received Analysed Dry Ash Free

calP/01

Moisture

Total % 4.0 - - -

cplP/05 Free % 0.89 - - -

calP/03 Inherent % - 3.16 - -

calP/01 Analysis % - 3.15 - -

calP/02

Proximate

Ash % 0.6 0.6 0.6 -

calP/04 Volatile Matter % 69.8 70.4 72.7 73.2

calP/26 Fixed Carbon % 25.6 25.8 26.7 26.8

calP/01

Ultimate

Total Sulphur % 0.04 0.04 0.04 0.04

calP/06 Chlorine % <0.01 <0.01 <0.01 <0.01

astmD5373 Carbon % 54.5 55.0 56.8 57.1

astmD5373 Hydrogen % 4.62 4.66 4.81 4.84

calP/25 Hydrogen (calc.) % 5.31 5.36 5.53 5.57

astmD5373 Nitrogen % 0.04 0.04 0.04 0.04

calP/07Calorific

Value

Gross kJ/kg 21098 21290 21982 22117

calP/25 Net(H calc.) kJ/kg 19866 - - -

calP/25 Net(H det.) kJ/kg 20013 - - -

-   Energy MWh/t 5.560 - - -

BioCoal Pellets address the drawbacks encountered with

the durability and biological degradation of biopellets (storage of biocoal pellets is therefore simplified)

can be applied to wide variety of biomass (sawdust, willow, larch, verge grass, wood, energy crops, straw etc) yielding similar qualities, thus increasing the feedstock range for pellet production

offer a solution to low volumetric energy

density of torrefied biomass [2]

BioCoal Pellets vs Wood PelletsProperties p-BioCoal p-Wood

Density (kg/m3) 750 - 850 500 - 650

Net Calorific Value (MJ/kg) 22 17

Energy Density (GJ/m3) 18.5 10

Pellet Strength Very Good Good

Hydroscopic Nature Hydrophobic Water up-take

Biological Degradation Unlikely Very Likely

BioCoal Pellets ProductionOperational Benefits:

the energy consumption of the biocoal pelleting process is lower than the conventional pelletisation, due to lower energy consumption used for material sizing and pelletisation (despite increased energy consumption used for torrefaction)

the desired plant production capacity can be established with much smaller equipment [3]

The torrefaction gases can be recovered and used for drying, instead of using fossil fuel as utility fuel

Co-Firing with BioCoal

Co-Firing at Essent 30 tonnes of torrefied BioCoal was manufactured

using the R-O2 technology and was test co-fired with coal at EPZ's 400 MWe PC-plant unit BS12, located at Borssele, The Netherlands, operated by Essent Energie (for co-pulverization and co-firing testing)

At the plant, BioCoal was fed into a single coal pulverizer, a CE model with conical rollers and rotating classifier, with 100 MWe capacity

Biocoal was mixed with coal up to 9% (energy basis) and injected to the boilers

There is a capacity for increasing the co-firing ratio, as the pulverizer’s limits were not reached [7]

That ‘the significance of torrefied biofuels is that it will allow a much wider slate of biomasses (both woody and otherwise) to be conditioned for direct co-pulverizing and co-firing’ [7]

Essent Energie, Borssele, The Netherlands

Institute for Energy findings By far the most economical option for co-firing

of coal and biomass is to co-mix the fuel stocks prior to grinding and injection into the fuel combustors at maximum ratios

This avoids the need to retro-fit dedicated biomass injectors to the plant

By contrast, the tough, fibrous nature and higher MC of raw biomass means that the biomass proportion is limited, typically to <7% by weight

Institute for Energy, Petten (the Netherlands)

Attempts to increase the BioMass proportion beyond this limit typically lead to problems:

insufficient throughput

overheating and failure of the grinding mills

clogging of pneumatic fuel transfer systems

an unacceptable proportion of over-size particles reaching the injectors, and

unpredictable thermal transients in the combustion chamber [1]Institute for Energy, Petten (the Netherlands)

Institute for Energy findings continued

Torreffied Biocoal however:

destroys the fibrous structure of the raw biomass

reduces the MC and

provides a narrow range of calorific content thereby allowing a much greater biomass

proportion to be combusted in existing installations [1]

Institute for Energy, Petten (the Netherlands)

Institute for Energy findings continued

Torrefaction and Grindability

‘…it is concluded that the grindability of raw biomass can be improved [using torrefaction] to the level of coal using the temperature range of 260 – 2800C…’

Ref: Torrefaction for biomass co-firing in existing coal fired power stations ‘P.C.A. Bergman, et el July 2005

Plant Build

Proprietary Louvered Drum

Pre-Conditioner Build

Torrefier Build

Control System