Coal Desulfurization

How to save $242 million over 15 years!

Presented By: Greg Spittle
In The News
North Carolina passes Clean Smokestack legislation

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

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

Coal power plants in the UK run at 17% capacity

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

President George W. Bush signs bill to cut SOx
emissions by 75% by 2018
What Does This Mean?
Any market can change dramatically in a
short period of time
Changes like those in the UK can
devastate a company
These changes can be anticipated
What does this really mean to
you?
Its time to prepare your
company for the future!
What Are Your Options?
Buy/Sell Allowances
A short term fix to a long term problem
Switch Fuel
Not always a possibility
Not always enough
Install a Flue Gas Desulfurization Unit
(FGD)
The only guaranteed way to maintain a
competitive 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 SO
2

Other fuels are not always available
Depends on region of country and/or shipping
costs
Other fuels dont always provide low enough
emissions
Only a 30% reduction in emissions
ie 60,000 tons versus 85,000 tons of SO
2

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 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?
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

Recap
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