How to make money with Alternative Fuels

1. How to make money with Alternative Fuels • Wim M.G.M. Heldens • CEO • IC&C B.V. • Independent Clinker & Cement Consultancy GFC Toronto IC&C

2. President Obama Announces Steps to Support Sustainable Energy Options May 5, 2009 • "If we are to be a leader in the 21st century global economy, then we must lead the world in clean energy technology. There is no way back!” • How Big Is Your Footprint? GFC Toronto IC&C

3. “Your footprint” World Clinker Production World cement production 2 billion tons / yr • CO2 production = 1,45 billion tons / yr • CO2 from raw materials = 780 million tons / yr • CO2 from fuels = 670 million tons / yr • A 1 MW windmill saves 2000 t CO2/yr. So 335.000 windmills out of fuels • NOx ~ 2 kg / tons clinker = 3,4 million tons / yr • SOx ~ 0,25 kg / tcl = 0,5 million tons / yr You can not escape to reduce your Footprint GFC Toronto IC&C

4. Mission IC&C: Make Money From Sustainability! Sustainable Development Max Alternativefuels / mat. Emissions Energy Profit Min Strategy IC&C GFC Toronto IC&C

5. Key performance data 2008 Best Practice Plant:Dutch Cement Maastricht (The roots of IC&C) • 95% alternative fuels • 50 % biomass • fuel price < 2 € / ton clinkernormally 12 € / ton clinker! • 700 kg CO2 / ton clinker normally 820 kg CO2 / ton (20% less CO2 achieved by biomass) • NOx reduction 50% by SNCR urea • SO2 reduction 80% GFC Toronto IC&C

6. The thread is an opportunity;Cement kilns have unique properties for co-processing • Unique properties of our burning process to destroy all substances of primary and alternative fuels: • Flame temperature > 2000 °C • Long residence time • Enough oxygen • Rich in active lime (binds hazardous elements) • No increase of most emissions due to input of alternative fuels • Ashes are incorporated in the clinker  no residues left GFC Toronto IC&C

7. Solutions realized: R = Q x A x M Result =QualityxAcceptancexManagement Chemistry and quality clinker under control Stable production and maintain production level Good flame formation Reliable dosing systems Acceptation by operators Licences: win-win deals Safety and health guaranteed Good working conditions 95% Alternative Fuels Smell problems under control Blockages under control Ring building under control Etc. Worlds Best Practice Plant: ENCI Maastricht GFC Toronto IC&C

8. Process: stable clinker production at rising AFR-rates!Cement plant: Maastricht 1200 120 1000 100 800 80 Clinker production 600 60 Alternative fuel % 400 40 200 20 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 GFC Toronto IC&C

9. Select AF’s that comply with the basic requirements (IC&C-criteria). Ensure supply of AF. Preferably negative priced. Ensure acceptation by government, neighbors etc. Control effects on process, emissions and clinker quality and production (IC&C) Ensure a correct burner and flame adaptation (IC&C) Ensure acceptation by operators, maintenance by correct design of installations “Operators have to like to work with AF’s” Key factor: How to implement AF’s successfully? GFC Toronto IC&C

10. PPDF Carpets-rests Cooling air Anode coke Bed/Fine-Coke Lignite Sewage sludge Animal meal Concrete IR-Flame detection Natural gas Swirl air Glycol bottom Axial air Example: IC&C experience within Dutch Plant • Multi fuel system for 10 fuels • Dosing of 5 powdery fuels via 1 tube to main burner • Secondary fuel injector on top of the burner for 4 different coarse fuels • Liquid installation for spent glycol • Natural gas for start up • NOx reduction by SNCR • Mercury issue “The use of AF installations is no item” GFC Toronto IC&C

11. Profit: Make money 1 • Fuel cost reduction With fossil fuels like pet coke: 12 € / ton clinker Dutch Cement with 95% AF: < 2 € / t cl At 1 million ton clinker: 10 million € / yr • Emission reduction CO2 from fuels 165.000 t / yr at 12 € / ton = 2 million € / yr NOx(US): 800 mg / Nm3 ~ 2 kg / t cl ~ 2.000 t / yr At 50% reduction 1.000 ton at 1200 € / t = 1.2 million € / yr GFC Toronto IC&C

12. Profit: Make money 2 • Investments • Keep it simple and sustainable • Investments are paid by part of the profit of AF’s (€ 13,2 Million yearly) • IC&C experience with a lot of sustainable projects shows: • Pay back time: average < 1 year • IRR: 35 - 80% Sustainable Development Max Alternativefuels / mat. Emissions Energy Profit Min Strategy IC&C GFC Toronto IC&C

13. How to make your implementation sustainable! • Learn from the experience of IC&C experts “Don’t do it alone” • Development Dutch cement took over 15 years and still develops “Take your advantage” GFC Toronto IC&C

14. Tools of IC&C • Alternative Fuels Assessment: the burning properties, flame formation and NOx building (IC&C database) • IC&C Assessment Model of the effects off Alternative fuels and raw materials (AFR) on production process, emissions, quality, costs, etc. (IC&C Kiln Expert Module) • IC&C Costs model for the effects on investments and profitability GFC Toronto IC&C

15. How can IC&C help you • Assessment existing situation and first proposal for stepwise improvements: quick scan • Definition of the goals of new situation: costs, sustainability • Inventarisation of all aspects; chemistry, fuels, materials, production, emissions, burner, existing equipment etc. • Selection from available existing Alternative Fuels according to the IC&C norms • Assessment of all aspects when introducing AF’s • Presentation results by IC&C • Prefeasibility study • Prediction of the effects on process, quality and emissions • Estimation of investments and profit • Support during feasibility study, tests and implementation GFC Toronto IC&C

16. It Must It Can and is Proven It Saves Money Questions? Think about YOUR profit Enjoy your lunch ! GFC Toronto IC&C