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Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

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Page 1: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Mirant Mid-AtlanticMWAQC Technical Advisory Committee BriefingJanuary 21, 2005

Page 2: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Discussion Topics

NOx Settlement Progress Report on Current Projects View on Multipollutant Legislation

Page 3: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

NOx Settlement

Page 4: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Key Elementsof Mid-Atlantic Global NOx Settlement

Control Technology to be Installed– Potomac River 3,4,5 – Low NOx Burners in 2004, SOFA in 2005– Morgantown 1,2 – SCRs in 2007, 2008

Declining NOx Tonnage Caps from 2004 through 2010– Ozone Season Caps – for Potomac River and System– Annual Caps – for System

Emissions Rate Limits– Ozone Season System limit of 0.150 lb/MBtu starting in 2008– Morgantown SCRs limit of 0.100 year-round, once installed

Penalty and Projects– Cash payment of $500,000– Supplemental Projects totaling $1.0 M to reduce dust and particulate matter

emissions at the site

Page 5: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Terms of SettlementNOx Caps & Trading Provisions

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2004 2005 2006 2007 2008 2009 2010

Year

Ozone Season Cap Annual Cap

Page 6: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Environmental ProjectsPROJECT Est. PM Reduction Ash Silo Vent Secondary Filters 30 tons Truck Wash Facility 13.7 tons Coal Pile Fencing 2.8 tons Coal Pile Binding Agent 800 lbs Ash Unloader Replacement 200 lbs Truck Loading Dust Suppression 200 lbs Railcar Unloading Dust Suppression 200 lbs Settled Dust Study Contribution to Clean Air Partners

TOTAL Cost = $1,000,000

Page 7: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Annual System NOx Reductions

Mid-Atlantic System Annual NOx Emissions

0

10000

20000

30000

40000

50000

60000

70000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

An

nu

al N

Ox

Em

issi

on

s

73% Reduction thru 2010

35% Reduction from 1999

Absolute NOx Limits

Page 8: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Summer NOx Reductions

Potomac River Summer NOx Emissions

1000

1500

2000

2500

3000

3500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

Ozo

ne

Se

as

on

NO

x

36% Reduction since 1999

55% Reduction thru 2010

Absolute NOx Limits

Page 9: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Benefits of Settlement

Resolves Potomac River NOV Achieves 0.15 lb/MBtu system NOx average by 2008 Year-round SCR operation will reduce PM2.5 emissions Emission caps ensure environmental benefit while

allowing flexibility over methods to reach compliance targets

When paired with future SO2 controls, significant Hg and additional PM2.5 reductions

Page 10: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Progress on NOx Projects

Page 11: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Current NOx Projects

Chalk Point Unit #2 SACR Morgantown #1 SCR Potomac River #3-5 SOFA

Page 12: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Chalk Point #2 SACR

SACR = Selective Auto-Catalytic Reduction Injects ammonia + natural gas in convection pass of

boiler Gas acts as catalyst for NOx reduction and consumes

excess ammonia Expecting ~50% reduction in NOx In final engineering / procurement phase Reagent switch from anhydrous ammonia to urea System in service late 2005 / early 2006

Page 13: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Morgantown #1 SCR

First SCR went out for bids in October 2004 Bid evaluation process underway Currently on schedule for May 2007 in-service date Urea selected as reagent

Page 14: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Potomac River #3-5 SOFA

Dampers, drives, ductwork being procured / fabricated All three units to be retrofitted this spring Low NOx burners installed on Units 3-5 last spring -

15% reduction Low NOx burners installed on Unit 1-2 last fall - 5-10%

reduction

Page 15: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Potomac River SOFA

Page 16: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Burner Corner

SOFA Port

Page 17: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

SOFA Ductwork

Page 18: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Multipollutant Legislation

Page 19: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Multipollutant Legislation Cap & Trade approach vs. Percent Reduction Realistic Timeline to Implement

– Technical: Time to engineer, procure, and install– Financial: Cost of NOx, SO2, & Hg controls simultaneously– Alignment with Federal programs

Mercury– Substantial Co-benefits from NOx & SO2 controls– No large scale / long term demonstrations yet– Continuous Hg monitors not commercially available

CO2– Few options for significant reduction on coal-fired units– Fuel switch / repowering to gas costly to customer and generator

Page 20: Mirant Mid-Atlantic MWAQC Technical Advisory Committee Briefing January 21, 2005

Questions