SEPTEMBER 2013

™

A GLOBAL OUTLOOKTECHNOLOGY | REVIEW | UPDATE

Tees Valley Project 1 Update

Tees Valley Project 2 Update

Westinghouse Plasma Torch Applications

SPOTLIGHT ON:GTS Shanghai Facility, China

Westinghouse Plasma Gasifier Auxiliary Equipment and Control Modules

Cover Photo: Auxiliary Equipment and Control Modules for the Tees Valley 1 Project (TV1), UKContent & Design: Alter NRG Corp. - Corporate Development Team

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Alter NRG Corp. is a registered trademark. All other company and product names may be trademarks of their respective owners. The information contained herein cannot be reproduced in any format without legal permission from Alter NRG Corp., and is subject to change without notice. Copyright © 2013. All rights reserved.

8th Edition

CONTENTS

Tees Valley Project 1 ______3-5Photos and Updates for the Auxiliary

Equipment and Control Modules

Tees Valley Project 2 ________ 6Update on Planning Permission and Power

Purchase Agreement

SPOTliGhT ON GTS Shanghai _______________ 7Medical Waste / Incinerator Fly Ash

Demonstration Facility

Open house _______________8-9Hosted by Alter NRG, June 2013

Plasma Torch Applications ___________ 10-14Foundry and Iron Making

Conference Updates _______ 15

www.AltErnrG.ComISSUE | SEPTEMBER 20132

Bearing witness at the Tees Valley (TV1) Site

From ideas to designs, designs to manufacturing through construction, the Alter

NRG team has always believed but there is something to be said about seeing

what you believe in.

Recently, some of the management team took just this

kind of opportunity and toured the TV1 site in Northern

England. Our team was joined by representatives from

Millhouse Capital Services and hosted by the Air

Products Plant Manager, who gave a comprehensive

overview of the progress to date and upcoming

scheduled events.

Danny Hay, CFO of Alter NRG shared that “We all know that

the Alter NRG technology is at the heart of this $400MM

breakthrough facility expected to begin commissioning in

early, 2014. It is rewarding to see this large scale 50 MW power

facility which is significant enough to garner the attention from

any large industrial company.”

(l-r: Alter nrG) Alex Gorodetsky, Kevin willerton, Danny Hay, walter Howard, Kent Hicks and

mHC’s Stephen Harris, Gennady Sukhanov and Percy Hayball. 3 nrg Focus | by ALTER NRG

Alter NRG’s breakthrough technology – the Westinghouse Plasma gasification technology - is showcased in the world’s largest plasma gasifier reactor which was manufactured under our auspices in Malaysia and arrived at TV1 in May 2013. Construction of the auxiliary modules is almost finished as shown in photos 1 through 3. The facility, scheduled to enter commercial operation in 2014, is expected to produce 50MW of electricity capable of powering 50,000 homes safely and reliably.

1

3

TV1 Project Update

Tory Government Minister for Business and Energy, Michael Fallon

stated that “It has been very encouraging to witness first-hand

the economic progress within Tees Valley and how companies

in the area are at the forefront of emerging technologies and

markets,” he added, “What I have seen is a clear sign that when

Government and business work in partnership, Tees Valley firms

have the ambition, talent and ability to succeed.”

ISSUE | SEPTEMBER 20134

2

Engineering and construction of the auxiliary

modules for the first Tees Valley project in their

finishing stages.

Tees Valley project under construction in Teesside, UK

5 nrg Focus | by ALTER NRG

Plans are underway for a second advanced energy from

waste project using the Westinghouse Plasma Gasification

Technology.

In July, 2013, Air products received planning permission and approval notice for the TV2 project situated adjacent to TV1. This project is

consistent with the UK’s vision to encourage renewable sources of energy. Air Products has plans for up to 5 advanced gasification

facilities using plasma gasification technology which would result in over £1 billion of potential new investment. To enhance the

economics of the project, the UK government and Air Products signed a new 20 year Power Purchase Agreement that is, according to the

UK government’s web site, “expected to deliver £84 million in savings over the life of the contract through an innovative fixed price

agreement that will provide stability in what the public sector pays for energy”. With regulatory approval and a long-term off-take

agreement, the TV2 facility has achieved two significant milestones.

The TV2 project will be a replica of TV1

TV2

Tees Valley 2 (TV2) Project Update

Blowout: Westinghouse

Plasma Gasifier at TV1

TV1

ISSUE | SEPTEMBER 20136

GTS Demonstration Facility

Alter NRG delivered the gasifier

design and plasma torches for a

demonstration facility currently

being constructed in Shanghai,

China and is expected to start up

in Q3 2013.

The facility will process a combination of medical waste

and incinerator fly ash and is focused on the effective

and efficient disposal management of medical waste and

its potential environmental hazards and public health

risks. As incinerator fly ash is an increasing disposal

issue in China, it has become a high priority

environmental concern for the Chinese Government.

The facility is being constructed by GTS Shanghai and is

located at the Shanghai Chengtou (Shanghai

Environmental) Hazardous waste facility in Jiangding. The

facility is built to integrate with existing incinerators to

process medical waste, incinerator ash and other

difficult, hazardous feedstocks. The facility will produce

steam for use throughout the balance of the process

facility. The integrated system is flexible and will engage

in several waste control, treatment and disposal methods

such as reuse, recycling, sterilization and land filling to

minimize the environmental and health impacts of waste.

IMPACT for Alter NRG - yet another reference facility with long term strategic benefits. This facility opens new markets by highlighting the Westinghouse Plasma gasification technology’s ability to complement existing incinerator plants.

THE WIN for all of us - more hazardous incinerator ash is going to be turned into environmentally neutral slag instead of being land-filled.

SPOTLIGHT

7 nrg Focus | by ALTER NRG

Alter NRG: Open House 2013Alter nrG held its 5th open House in Pittsburgh, PA on June 11, 2013. the purpose of the open house was to gather industry experts

who share technological developments and discuss their project developments. Alter nrG welcomed 71 guests including project

developers, EPC partners and financial institutions who visited our world class demonstration facility in madison, PA for this unique

networking event. A site tour and live torch demonstration were enjoyed by all guests.

ISSUE | SEPTEMBER 20138

Walter Howard, CEO, addressing guests at the Alter NRG’s 5th Open House event held on June 11, 2013.

9 nrg Focus | by ALTER NRG

Westinghouse Plasma TorchesDriving production efficiency in steel making

Westinghouse Plasma Corporation’s (WPC) plasma technology has been developed for over 30 years with an estimated $100 million invested in research and development. The WPC technology was initially developed in collaboration with NASA for use in the Apollo space program to simulate space vehicle re-entry conditions. Alter NRG acquired WPC in 2007 and has further developed the plasma torches.

WPC torches provide a clean source of heat that can improve efficiencies and improve environmental performance in many different industrial applications.

Since 1980, WPC torches have been commercially deployed in over 34 different industrial applications for a wide variety of uses such as metals recycling, catalyst re-forming, heating of cupolas, and cleaning industrial gases. With rising costs of foundry coke and fuel oil, the WPC torch can effectively reduce energy consumption and cost by precisely managing heat input to the furnace.

Furnace applicationsAs early as the 1980’s, WPC plasma torches have been deployed in

industrial furnaces in various metals applications. Our customers

include General Motors, SKF Steel, ALCAN, China Steel Co., Picklands-

Mather Co., Cockerill Steel and Eldorado Resources Ltd. The largest,

and longest running application was the GM cupola in Defiance, Ohio,

which successfully utilized six (6) MARC-11 plasma torches in a plasma

assisted foundry cupola to make steel from scrap material for engine

block castings. The plasma assisted cupola ran successfully for 22 years

using the same plasma torches that were originally installed. This

makes the WPC plasma torch and torch system the most industrially

rugged and commercially acceptable offering on the market.

The integration of our plasma torches in furnace applications have allowed

our customers to benefit from higher blast temperatures lower coke

utilization rates, higher furnace productivity, higher alternative fuel utilization

and better control over furnace temperature and process chemistry.

Plasma Melting Furnace, General Motors (GM), Defiance, Ohio, USAThe unit was installed in 1989 at the General Motors’ Powertrain car plant in Ohio, USA as part of the foundry operation for the production of grey iron for the manufacture of engine blocks and other automotive castings. This was the first commercial scale plasma cupola built in the world, employing 6 MARC 11 WPC plasma torch systems, operating at 1,750 kW each. The plasma cupola processed a feed charge that consisted of sprue, steel turnings, iron borings and fragmented steel scrap.

Plasma Melting Furnace, Aluminum Canada Ltd. (ALCAN), Jonquière, CanadaThe plant was built in 1992 as an aluminium dross recovery furnace at ALCAN’s plant at Jonquière, Canada. It uses 2 MARC 11 plasma torch systems each operating at 850 kW. As an alternative to the conventional Rotary Salt Furnace (RSF) dross processing technology, the plasma dross processing technique reported an increase in material quality, reduced waste for disposal and excellent electrode life.

GM reported that “... over ten years of operating

experience demonstrated that the plasma

technology is economically suitable for Iron

melting. No major changes of traditional industry

practices are required to operate plasma cupola

systems. The plasma equipment can be operated

and maintained by routine plant personnel”

Source: Juniper Consulting Services Ltd.

Commercial deployment of Westinghouse Plasma Torches in Metals Applications

● SKF Steel used MARC 11 – Plasma torches for commercial sponge iron

production (1980)

● Cockerill Steel Co. used MARC 3A – Plasma torches for superheating of blast

air to reduce coke consumption (1981)

● Pickands-Mather Co. used MARC 11 - Torches for iron reduction and

steelmaking (1984)

● General Motors Corporation – MARC 11 - Torches for the production of cast

iron in a commercial cupola (1989)

● ALCAN – MARC 11 – Aluminum dross recovery (research furnace) (1990)

● ALCAN - MARC 11 – Aluminum dross recovery (commercial furnace) (1992)

● China Steel Co. – MARC 3A – Metals production research lab (1992)

● Undisclosed Metals Recycler – MARC 11H – Metals melting (2010)

● Beijing Huanyu Guanchuan Plasma Technology Ltd. – Steel and iron ore

industry (2013)

ISSUE | SEPTEMBER 201310

Plasma Torch Ratings

High efficiency - low maintenance design

Westinghouse plasma torches

The WPC MARC 3A or MARC 11 plasma torches operate over electrical ranges based on the configurations below.

marc 3a plasma torchWPC’s standard MARC 3A configuration operates in a range

from 80kW to approximately 300kW. The current to the field

coils in the MARC 3A is in series with the arc current. The

MARC 3A does not feature independent control of the field

coil current and arc current.

marc 11 plasma torchThe MARC 11 torch power is controlled by changing either

the arc current, field current or the process gas flow. Torch

connections include quick disconnects for the air supply,

cooling water and electrical connections to facilitate torch

removal for inspection and maintenance. WPC has two

standard MARC 11 configurations, a low power torch, the

MARC 11L and a high power torch, MARC 11H. The low

power MARC 11L plasma torch operates in the range from

approximately 350 kW to approximately 800 kW.

The high power torch operates in the range from

approximately 860 kW to 2400 kW. The maximum arc

current of the MARC 11 plasma torch is 2000A. The MARC

11 torch uses two separate power supplies: one for the field

coil and one for the arc. The arc current and the field coil

current can be independently controlled.

Model Diameter Typical Length Weightinches mm inches mm Pounds

MARC 3A 3.5 89 32.5 826 45

MARC 11 18 457 35 889 450

Torch Type MARC 3A MARC 11L MARC 11HRated Min Power (kW) 80 350 860Rated Max Power (kW) 300 800 2400

Air Flow (scfm) 20 95 200

Air Flow (kg/hr) 42 197 415Thermal Efficiency 70% 85% 85%

Maximum Operating

Current400 ADC 1000 ADC 2000 ADC

Maximum Operating

Arc Voltage860 VDC 950 VDC 1200 VDC

MARC 11 Plasma Torch

“WPC is a proven leader in its field in

plasma gasification and the plasma torch

system. Their systems have been proven

commercially and represent significant

market potential for the industrial furnace

retrofits in China. China is the world’s

largest steel producer and this application

of Westinghouse Plasma torches will be

used to reduce the overall emissions profile

and operating costs in the steel facilities.”

- Mr. Huang Geng,

Chief Technology Officer,

Guanchuan

11 nrg Focus | by ALTER NRG

plasma tuyere injection With plasma torches located at the tuyeres, the refractory lining of the blast main is not a limiting

factor for increased wind temperature, allowing the operator to precisely control and increase

the temperature of the furnace by several hundred degrees centigrade. This enables the

raceway to reach higher productivity while improving the utilization of coal, natural gas or other

alternate fuels. Pulverized coal injection rates can be increased by as much as 100 kg per tonne

of hot metal, offsetting almost an equivalent amount of foundry coke and furnace productivity

improvements of 4% or more can be realized.

Benefits

● Enables rapid conversion of pulverized coal within the limited

raceway volume

● Pulverized coal injected blast furnaces can be further optimized by

offsetting an additional 100 kg/THM of coke with pulverized coal

● Productivity increases of 4% or more can be realized

● 2 to 5 year payback is typical

hot Blast superheatingHot blast superheating can occur at the stove outlet where hot blast (wind) is sent to the

tuyeres. With wind superheating, the hot blast is superheated in the hot blast main through

mixing with high temperature plasma-heated air. This method increases wind temperature

without shortening stove life or requiring the rebuilding of stoves to operate at higher

temperature. The increased hot blast temperature decreases the foundry coke consumption of

the facility.

Benefits

● 50°C - 200°C increase in blast temperature can be achieved

● Coke rate reduction: 10 to 40 kg/ tonne of hot metal, more than

offsetting the operating cost of the plasma torches

● Consistent control over blast temperature allowing further

optimization of the blast furnace

● 2 to 5 year payback is typical

WESTINGHOUSEPLASMA TORCH

COAL INJECTION

WESTINGHOUSEPLASMA TORCHES

WESTINGHOUSEPLASMA TORCHES

BLOW PIPE

PLASMAHOT

BLAST

STOVES

PLASMATUYERE

INJECTION

WESTINGHOUSEPLASMA TORCH

COAL INJECTION

WESTINGHOUSEPLASMA TORCHES

WESTINGHOUSEPLASMA TORCHES

BLOW PIPE

Blast Furnace

Furnace Integration of Plasma Torches

Robust returns from increased furnace capacity and reduced coke usage

Using the blast furnace as an example, WPC plasma torches can improve the profitability of the facility in two physical areas of the process scheme.

ISSUE | SEPTEMBER 201312

Redefining the Economics of Steel Making

hot Blast superheatingOriginal Design Plasma-Heated Blast

Production Rate 4000 t/day 4050 t/day

Temperature 1100˚C 1150˚C

Plasma Torch Power N/A 5 MW

Coke Usage 491 kg/THM 485 kg/THM

Typical Payback 1-3 Years

plasma tuyere injectionOriginal Design Plasma-Tuyere

Production Rate 4000 t/day 4150 t/day

Temperature 1225˚C 1450˚C

Plasma Torch Power N/A 18 MW

Coke Usage 378 kg/THM 265 kg/THM

Coal Usage 100 kg/THM 200 kg/THM

Typical Payback 1-2 Years

13 nrg Focus | by ALTER NRG

Plasma Torch ExperienceCommercially proven applications

Date Customer Application Plasma Torch Systems

2013 Beijing Huanyu Guanchuan Plasma Technology Ltd. (GuanChuan) Industrial Furnace Applications related to Steel and Iron Industry MARC 3A

2010 Undisclosed Metals Recycler – Metals Melting MARC 11H

2010 SMS Infrastructure, Ltd. Commercial Vitrification of Common Hazardous Waste MARC 3A

2009 SMS Infrastructure, Ltd. Commercial Vitrification of Common Hazardous Waste MARC 3A

2005 Georgia Institute of Technology Laboratory Application MARC 3A

2002 Hitachi Metals Ltd. Commercial Gasification of MSW & Waste Water Sludge MARC 3A

2001 Hitachi Metals Ltd. Waste to Energy Facility Gasification of Auto Shredder Residue & Refuse Derived Fuel MARC 3A

2000 Undisclosed Client MARC 3A

1999 Hitachi Metals Ltd. Commercial Gasification of MSW MARC 3A

1995 Geneva Steel Corporation Commercial Production of Molten Iron for Steel Making MARC 11

1994 DuPont Corporation Materials Synthesis Development MARC 3A

1995 Ishkawajima-Harima Heavy Industries Co. (IHI) Commercial Vitrification of MSW Incinerator Ash MARC 3A

1993 Ishikawajima-Harima Heavy Industries Co. (IHI) Research Lab for Vitrification of Incinerator Ash MARC 3A

1992 China Steel Co. Research Lab for Metals Production MARC 3A

1992 ALCAN (Aluminum Canada Ltd.) Commercial Aluminum Dross Recovery Furnaces MARC 11H

1990 ALCAN (Aluminum Canada Ltd.), Research Lab. For Aluminum Dross Recovery MARC 11H

1989 General Motors Corporation Commercial Cast Iron Production MARC 11H

1988 Consarc Corp. Research Center for Refining of Refractory Metals MARC 3A

1987 Eldorado Resources Ltd. Extraction of Uranium from Magnesium Fluoride Research Center MARC 3A

1986 Pyrolysis Systems Inc. Mobile Trailer for Liquid Toxic Waste Destruction MARC 3A

1985 Intermountain Power Co. Commercial Ignition of a Pulverized Coal Boiler MARC 3A

1985 Owens-Corning Fiberglass Research Lab. MARC 3A

1985 Studsvik Energiteknik Thermal Simulation of a Nuclear Reactor Core Meltdown MARC 11

1984 Pickands -Mather Co. Metal Project Development of Plasma Iron Reduction and Steelmaking MARC11

1983 Westinghouse Research and Development Lab. MARC 11, MARC 3A

1981 Cockerill Steel Co. Commercial super-heating of blast furnace air to reduce coke usage MARC 3A

1980 SKF Steel Co. Commercial Sponge Iron Production MARC 11

1977 Westinghouse Research Jet Propulsion Lab. NASA Production of Solar Grade Silicon MARC 11

1975 Westinghouse Research Arc Heater Project MARC 11

1973 International Minerals & Chemicals Corp. Phosphate Defluorination Process MARC 11

1971 Dow Chemical Corp. Hydrocarbon Process Research MARC 11

ISSUE | SEPTEMBER 201314

Conference Updates

ALTER NRG AND GENERAL ELECTRIC

(GE) CO-HOSTED THE GASIFICATION

TECHNOLOGIES COUNCIL (GTC) INDIA

TRADE MISSION

The GTC, working with the US India Business Council, hosted a successful gasification trade mission to India September 7-12, 2013. Mission leaders, Alter NRG and GE, were joined by other GTC member companies in meeting with key Indian government officials, bureaucrats from the US Embassy, and representatives of various Indian oil, gas, chemical, power and fertilizer companies. The purpose of the mission was for industry leaders to share knowledge related to how gasification can help India meet its fast- growing energy needs.

Walter Howard (CEO) of Alter NRG, conducting a presentation at the GTC India Trade Mission in September 2013

Alter NRG attended and presented at the following conferences as well:

April 16-18: EfW Expo – Sustainability Live, Birmingham, UK ● Meeting with over 300 leading suppliers of products for advanced thermal treatment processes.

April 21-25: 9th European Congress of Chemical Engineering – The Hague, Netherlands

● Theme: Shaping a sustainable future: A Partnership of Academia, Industry and Society.

May 8-9: Waste to Energy City Summit – London, UK ● A gathering of policy-makers, project developers, technology companies and investors from throughout Europe to discuss the opportunities and challenges in developing advanced waste-to-energy facilities in today’s cities and industrial parks.

July 23-26: 13th China International Environmental Protection Exhibition & Conference – Beijing China

● Richard Fish, President, Alter NRG, co-presented with GTS on the integration of our technology at the current hazardous waste facility of Shanghai Chengtou.

September 19: EKOS Plus Conference E+ (Efficiency+Ecology+Energetics) - Bratislava, Slovakia

● Kevin Willerton, VP, Business Development and Strategic Alliances, Alter NRG, presented three projects incorporating Westinghouse Plasma gasification technology which are under construction.

15 nrg Focus | by ALTER NRG

www.AltErnrG.Com

Alter NRG provides clean energy

solutions that are economically viable

and environmentally sustainable.

Westinghouse Plasma is the industry leading plasma gasification

technology that provides clean and renewable energy solutions by

converting all types of waste and biomass into high value energy - like

electricity, ethanol or syngas. With plasma systems in operation for 20

years and converting waste into energy since 2002, the technology is

commercially proven and produces lower emissions than other

conventional energy technologies.

westinghouse Plasma gasifier auxiliary equipment and

control modules for the world’s largest plasma gasifier