Coal DesulfurizationCoal DesulfurizationHow to save $242 million over 15 years!How to save $242 million over 15 years!

Presented By: Greg SpittlePresented By: Greg Spittle

In The NewsIn The News North Carolina passes Clean Smokestack legislationNorth Carolina passes Clean Smokestack legislation

Progress Energy Carolinas forced to invest $813 million Progress Energy Carolinas forced to invest $813 million in desulfurization unitsin desulfurization units

Employment in British coal drops from 221,000 Employment in British coal drops from 221,000 employees to 24,000 employees over 10 yearsemployees to 24,000 employees over 10 years

Coal power plants in the UK run at 17% capacityCoal power plants in the UK run at 17% capacity

25% of market lost to natural gas in UK over past 10 25% of market lost to natural gas in UK over past 10 yearsyears

President George W. Bush signs bill to cut SOx President George W. Bush signs bill to cut SOx emissions by 75% by 2018emissions by 75% by 2018

What Does This Mean?What Does This Mean? Any market can change dramatically in a Any market can change dramatically in a

short period of timeshort period of time Changes like those in the UK can Changes like those in the UK can

devastate a companydevastate a company These changes These changes cancan be anticipated be anticipated

What does this really mean to What does this really mean to you?you?

It’s time to prepare your It’s time to prepare your company for the future!company for the future!

What Are Your Options?What Are Your Options?

Buy/Sell AllowancesBuy/Sell Allowances• A short term fix to a long term problemA short term fix to a long term problem

Switch FuelSwitch Fuel• Not always a possibilityNot always a possibility• Not always enoughNot always enough

Install a Flue Gas Desulfurization Unit Install a Flue Gas Desulfurization Unit (FGD)(FGD)

• The only guaranteed way to maintain a The only guaranteed way to maintain a competitive edgecompetitive edge

The Cost/Benefit of Trading

The Trading Outlook

Why Is Desulfurization The Best Choice? Desulfurization dramatically drops output of

SOx 8,000 tons versus 85,000 tons of SO2

Other fuels are not always available Depends on region of country and/or shipping

costs Other fuels don’t always provide low enough

emissions Only a 30% reduction in emissions ie 60,000 tons versus 85,000 tons of SO2

Coal Distribution

Coal Consumption(In Millions of Tons)

The Numbers Without Desulfurization Unit

(cost to buy 1 ton of sulfur = $200, $500) With Desulfurization Unit

Amount/Type of Coal Needed

Amount of Sulfur Released (tons)

Government Regulation Today (sulfur-tons)

Money Earned on Allowances ($ millions)

Government Regulation in 2010 (sulfur-tons)

Money Earned on Allowances ($ millions)

Government Regulation in 2018 (sulfur-tons)

Money Earned on Allowances ($ millions)

5.6 million tons

Med. Sulfur Content (1.5%)

8,418 under by

44,305 35,887

7.177 17.94

18,165 9,747

1.949 4.874

11,962 3,544

0.709 1.772

Low Sulfur Content (1.0%)

5,612 under by

44,305 38,693

7.739 19.35

18,165 12,553

2.511 6.277

11,962 6,350

1.270 3.175

(cost to sell 1 ton of sulfur = $200, $500)

Amount/Type of Coal Needed

Amount of Sulfur Released (tons)

Government Regulation Today (sulfur-tons)

Money Spent on Allowances ($ millions)

Government Regulation in 2010 (sulfur-tons)

Money Spent on Allowances ($ millions)

Government Regulation in 2018 (sulfur-tons)

Money Spent on Allowances ($ millions)

5.6 million tons

Med. Sulfur Content (1.5%)

84,180 over by

44,305 39,875

7.975 19.94

18,165 66,015

13.20 33.00

11,962 72,218

144.4 361.1

Low Sulfur Content (1.0%)

56,120 over by

44,305 11,815

2.363 5.907

18,165 37,955

7.591 18.98

11,962 44,158

8.832 22.08

More About The NumbersMore About The Numbers

• Desulfurization unit has a lifetime of 15 yrs– Savings/Earnings up to $5.1 billion over

lifetime of product

• That is approximately $1000 a year in savings/earnings per customer

Why Spittle Inc?Why Spittle Inc?

• We will provide an on sight demonstration with our portable equipment

• We will work with your company to design the most efficient and cost effective installation process

• We are the industry leaders for installing desulfurization units on coal fired power plants

RecapRecap

• The market is changing – In the next five years the market will be

remarkably different

• It is important to stay ahead of your competitors and regulators

• Reasonably earn/save $242 million over the next 20 years– Possible earnings/savings of up to $5.1 billion

over the next 20 years