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U.S. Chamber of CommerceEmerging Technologies Committee Meeting

Air Pollution Control

William H. SunFuel Tech, Inc.

Batavia, IL

Washington, D.C.

October, 11, 2007

Technology Company

Innovative Approaches to Enable Clean Efficient Energy

Air Pollution Reduction

Slag and Corrosion Reduction

Advanced Engineering

NASDAQ: FTEKNASDAQ: FTEK

Fuel Tech’s Global Activities

Office Locations: Batavia, IL; Stamford, CT; Milan, Italy; Beijing, China

Countries where Fuel Tech does business: USA, Belgium, Canada, China, Columbia, Czech Republic,Denmark, Dominican Republic, Ecuador, France, Germany, Italy, Jamaica, Mexico, Poland, Portugal, Puerto Rico,South Korea, Spain, Taiwan, Turkey, United Kingdom, Venezuela

Fuel Tech Business Segments

Specialty chemical business: FUEL CHEM® technologymarkets fuel treatment chemicals and processes that reduce slagformation, corrosion and opacity problems in boilers, furnaces andincinerators. Improves boiler operating efficiency, increased boileroutput.

APC business: NOxOUT® SNCR, Cascade - pollution controltechnologies to reduced NOx. Ultra process – safe urea toammonia conversion process for SCR.

APC Technologies:

NOx Reduction:SNCR = Selective Non-Catalytic ReductionCASCADE = SNCR + one layer of catalyst

ULTRA – safe urea to ammonia conversion process

Fuel Tech Technologies - Typical Power Plant

SO3, SO2, Hg, CO2???

Fuel Chem Technologies:

TIFI – Targeted In-furnace Injection of specialtychemicals for slagging, corrosion, opacitycontrol

DecompositionChamber

Furnace Before TIFI Treatment

Slag clinker that fell to the bottom of the boiler

Furnace After TIFI Treatment

With FUEL CHEM: 12 hours of off-line cleaningWithout FUEL CHEM: 6 days of off-line cleaning (i.e., explosive deslagging)

Initial Chemical Feed7/1/2004 9:30 a.m. 7/1/2004 5:30 p.m. 7/2/2004 9:30 a.m.

Upper Furnace Slag Removal

Heavy Blue Plume from Sulfuric Acid(H2SO4) Mist

Opacity Excursions

Acid Fallout

Air Preheater Fouled

SCR – SO3 “Blue Plume”

Nearly Invisible

Opacity Reduced

Clean Air Preheater

Efficiency Improved

Successful TIFI Application on PRB Coal-Fired Utility Boiler

Western Farmers Electrical Cooperative: HugoStation Unit (475 MW Wall-Fired Boiler)

Cleaning time reduced by 10+ days per year 20MW Recovery (Daily Average) Measured NOx Reduction Improvement in Overall Operating Efficiency Successful Burn of Higher Sodium, Lower-Grade Coals

FUEL CHEM Benefits

Slag Problem Reduction Eliminate outages and derates due to slag (5%

typical) Shorten planned outages (10+ days/yr.)

Efficiency Improvement (typically ~ 1-3%) Lower Fuel Costs/KWH Lower CO2 emissions/KWH Lower Emissions Overall/KWH

NOx Emission Reduction (5-10% if no SCR) SO3 Emission Reduction Enhance Mercury Reduction with Activated

Carbon Injection Maintenance Cost Reduction Accident ReductionTypical Annual ROI = 7:1

APC Technologies:








APC - NOx Reduction Technologies

If the utility does not need an SCR:

NOxOUT® SNCR ($5-20/KW) –25-40% Reduction

NOxOUT SNCR/RRI ($7-22/KW) –35-55% Reduction

NOxOUT CASCADE® ($30-60/KW) –65-80% Reduction

If the utility chooses an SCR ($250+/KWCapital Costs) – 85-90% Reduction

NOxOUT ULTRA® ($2-3 mil) –Safety & Environmental Benefits

Over 450 Installations Worldwide

APC Technologies:








Computational Fluid Dynamics Modeling

FUEL TECHTechnology for a renewed environment TM

TM

Urea

NH3 + HNCO

NH3 + OH NH2 + H2O

NH2 + CO HNCO + H

N2 + H2O NH2 + NO

HNCO + OH NCO + H2O

NCO + NO N2 + CO2

N2

NOxOUT Chemical Kinetics Model Models detailed chemical

reaction between urea andNOx

30 species and 90 reactions

Predicts NOx reduction andNH3 slip

Zone 1 InjectionZone 1 InjectionLow to Mid LoadLow to Mid Load

APC Technologies:








Bailly Unit 8

360 MW Coal Fired Boiler

1250 lb/hr NH3 Demand

Ultra Heating Options:

Solar Power

Biodiesel, ethanol, etc.

Flue gas

Preheated combustion air

APC Technologies:








Thank you!!!

300 TPD MSW,France

40 lb/hr NH3Demand

Bailly 7 175 MW Coal Fired Boiler

720 lb/hr NH3 Demand

Fuel Tech Advantages

Cost-Effective Patented Technologies

APC (Capital Projects) NOxOUT® Selective Non-Catalytic Reduction (SNCR) NOxOUT CASCADE®

NOxOUT ULTRA®

FUEL CHEM TIFI Targeted In-Furnace Injection Targeted Duct Injection (TDI) Targeted Corrosion Inhibition (TCI) Annuity Revenue Stream

High Performance Team 20% of Employees Hold Advanced Degrees Experienced Leadership Team

Market Acceptance/Momentum

Strong Balance Sheet

Huge Untapped Global Market Opportunity

SIP= State Implementation PlanCAIR= Clean Air Interstate Rule

Current & Future Air Regulatory DriversAir Regulation Expansion

Key International Markets (cont.)

China (APC & FUEL CHEM)

350,000 MWs Fossil

225,000 MWs New Coal by 2010

Major smog problem - Olympics

2 major contracts representing 6 units

India (APC & FUEL CHEM)

67,000 MWs of Coal (Sub-Lignite)

Major slag/smog problems

6,000 MWs of new coal by 2012

Initial meetings

Key International Markets (cont.)

India (FUEL CHEM & APC)

67,000 MWs of Coal (Sub-Lignite) Major slag/smog problems, but CO2 is immediate concern

6,000 MWs of new coal by 2012

Initial meetings held

Europe (APC & FUEL CHEM)

Electric Utilities

Municipal Solid Waste Incinerators

Cement kilns

Projects on over 100 units

Mexico (FUEL CHEM)

17,000 MWs of heavy fuel oil owned by the Mexican national utility, CFE

Opacity (SO3) Issues; Slag Formation

First Commercial Order on 3 units now in operation

Fuel Tech Advantages Cost-Effective Patented Technologies

NOx Reduction Technologies NOxOUT® Selective Non-Catalytic Reduction (SNCR) NOxOUT® SNCR/Rich Reagent Injection (RRI) NOxOUT CASCADE®

NOx Reduction at All Load Ranges NOxOUT ULTRA®

Safe Ammonia Supply for SCR

FUEL CHEM TIFI™ Targeted In-Furnace Injection™

Dramatic Reduction of Slag Related Issues Accidents More Use of Higher Slagging Coals Outages/Derates Clinker Grinder Maintenance

Dramatic Reduction of SO3 Problems Eliminates Blue Plume Reduces Air-Heater Fouling/Corrosion

Improves Efficiency Reduced Fuel Use & Emissions

High Performance Team 20% of Employees Hold Advanced Degrees Experienced Leadership Team

Strong Balance Sheet

We Stand Behind Our Work

DomesticCoal Used to generate greater than 50% of electricity

Powder River Basin (PRB) PRB comprises greater than 40% of the coal burned

PRB coal is typically higher in slag-forming constituents, e.g. sodium

PRB coal is currently significantly less expensive than higher-polluting and higher-BTU Eastern coals on an equalized basis

In excess of 400 US utility units burning Western coal

Illinois Basin Coal

High BTU; lower transportation costs

High sulfur with slag forming constituents e.g. iron

SO2 abatement installations (scrubbers) allow utilities to burn this coal

Other

Oil, Municipal Solid Waste, Pulp and Paper

Global High slag coal (e.g. India) High slag oil (e.g. Mexico)

FUEL CHEM Market Dynamics & Economics

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