What aRe Your Options as a Small Coal-Fired Power Generator? Anthony (Tony) J. Cirillo, P.E.

Outline: What aRe Your Options... • R YOU-Sidelined or shanghaied?

– Environmental – Tapped potential – US electric power generation

• R YOU at a turn in the road, a dead end, an overpass...? – The many Rs of coal’s use

• Coal vs Coal • Coal vs Gas

– Combo/Hybrid: Coal-to-Gas conversions • Closing Commentary

Can YOU be economically compliant?

Do all roads lead to gas-

fueled power generation?

Coal’s Ever-Increasing

Environmental Regulation

Horizontal Drilling & Fracking

Collapse of Nuclear

Renaissance

Co-existence?

YOU may be down, but not out...

Nuclear renaissance ...not ‘in’stalled • 25 years-essentially same risks • Cost- a single nuclear unit can readily consume

10-30% of a utility’s overall value • Schedule-7-10 years • COLA Scorecard:

– 7 suspended – 9 under review – 2 issued

• Horizontal drilling and fracking

• Booming production from deposits-Marcellus, Bakken, Antrim, Barnett Basins

Fracking...shale gas bonanza

Coal use...affected by shale gas?

Advent of large scale

fracking

Coal vs Gas ...price advantageous?

Fracking effect

$2/MMBtu window

Coal’s environmental challenges Environmental regulations...ever more stringent • Oldies but goodies

– SO2, NOx, Particulate – Fugitive dust – Mercury and Air Toxics (MATS) – Effluent limitations

• Newbies, emergent or unknown – Coal ash disposal – Greenhouse Gases (GHG)

Where does ‘king’ coal go from here?

Can YOU be economically compliant?

Coal unit typical options ....

Repower, Reuse, Replace, Retire

Refuel

Retrofit

Coal-Gas

Coal units-to span the divide ...

Coal-to-Gas

Coal Gas Refuel

• Wall, corner, roof-fired boiler units can be Refueled • Examine:

• NOx and CO emissions • Final steam and exit gas temperatures • FD fan capacity • Economics/heat rate

Closing note-coal ‘shang-lined’ • 5R’s: Consider Refueling before Retirement • Current challenges No-nuclear Yes-environmental Draw-gas

• Prognosis Gas to erode coal’s dominance ...volatility Renewables forced into coal dispatch stack

• Coal-to-Gas Refueling: Stop gap, time and money saving solution

Contact for Additional Information: URS Corporation Anthony (Tony) J. Cirillo, P.E., MBA Senior Project Director W: 609-720-4016 Tony.Cirillo@urs.com