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Robert E. Tang — CEFCO Global Clean Energy, LLC

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1 Robert E. Tang — CEFCO Global Clean Energy, LLC
Applying a Recognized HWC MACT Technology for CO2 Capture with Low Energy Consumption COAL-GEN ― 2011 Robert E. Tang — CEFCO Global Clean Energy, LLC Proprietary & Confidential

2 Outline of Presentation
Current U.S. EPA’s MACT Compliance Issues and Carbon Capture’s Energy Consumption Conventional BACT vs. CEFCO MACT Technologies How the CEFCO Process Works Current Status of CEFCO Technology & Summary Proprietary & Confidential

3 The Issue Current BACT Technologies for Carbon Capture
Need to achieve MACT standards to provide 10 ppm of SO2 and 5 ppm of NOX in Flue Gas for processing High Costs: Energy Penalty (33+% on Performance plus additional Parasitic Load) Current BACT users must combine multiple overlapping technologies to come close to meeting MACT requirements CEFCO’s modularized “segregated-capture Modules” customizable to retrofit Power Plants based on needs Current BACT technologies require the Flue Gas to be treated for Carbon Capture to be very clean before the Amine-Based Processes can work effectively EPA’s new Rules and Standards of MACT address Capture of Targeted Multi-Pollutants and PM2.5 in Utility Power Industries Level of Capture by Current BACT Technologies will need further enhancement to achieve MACT standards Current BACT Technologies require High Capital and Operating Costs Each competing technology has high operating costs and deterioration of efficiency issues and cannot maintain efficiencies for long Current BACT users must combine multiple overlapping technologies to come close to 99+% multi-pollutant capture HOWEVER, CEFCO’s modularized technology can adapt one or more segregated-capture Modules to retrofit Power Plants based on their individual compliance needs -- on a module-by-module basis [Presenter’s Discretionary Comments] Competitors combine RTO + ACI + FGD + SCR + Chilled Amine or Ammonia for CCS + ACC For reference Only: RTO = Regenerative Thermal Oxidizer ACI = Active Carbon Injection FGD = Flue Gas Desulfurizer SCR = Selective Catalytic Reduction CCS = Carbon Capture ACC = Air Cool Condenser Proprietary & Confidential

4 CEFCO’s Innovative U.S. MACT Solution
Use Ewan’s shockwave “free-jet collision scrubbing” to capture MACT multi-pollutants* Cooper Process to convert all “captured pollutants” into recovered, valuable End-Products for sale US Patent Office Issued on November 30, 2010 under: 7,842,264 CEFCO Users benefit from: 1) Complying with announced EPA’s MACT and HAP Requirements 2) Producing valuable End-Products – no longer “cost-center” + = [Presenter’s Discretionary Comments] We are re-introducing the long-established Ewan Technology to the Civilian Pollution Control Industry and combining it with the Cooper Process to create the new CEFCO Patent. “We use Ewan’s shockwave “free-jet collision scrubbing” (recognized by EPA/DOE/DOD for HWC MACT in 2002*) to capture MACT multi-pollutants…. PLUS the Cooper Process to convert… in to sellable products” Designed in 4 separate and distinct Modules for upgrading and retrofitting existing Power Plants to meet requirements Particulates and Metal Capture SOx Capture NOx Capture Carbon Capture Eliminate plant shutdowns due to non-compliance CEFCO users can avoid producing toxic sludge to be disposed at Landfills Not to worry about risky and expensive Hazardous Land Fills with liability exposures Captures over 99+% of all MACT pollutants and over 90% for CO2 Proprietary & Confidential

5 Recent Major Industry Publications:
Power Engineering International: “Ewan and Cooper Processes Unite in ‘Paradigm Shifting’ Patent” November 2010 issue Modern Power Systems: “Sending Shockwaves Through the Multi-Pollutant Control Business” October 2010 issue Power Engineering: “Patent Rights Will Soon be Available for Novel Emission Control Process” August 2009 “Supersonic Emissions Control” January 2009 [Presenter’s Discretionary Comments] Pointing out the articles of recent publications. In addition, CEFCO recently presented at: EURO-GEN in Milan, Italy on June 8 Also, CEFCO will be speaking at: POWER-GEN INTERNATIONAL in Las Vegas, Nevada in December 2011 Proprietary & Confidential

6 CEFCO Patent Title – Key Concepts
Title of the Patent: “Process and Apparatus for Carbon Capture and Elimination of Multi-Pollutants in Flue Gas from Hydrocarbon Fuel Sources and Recovery of Multiple By-Products” Key Concepts: Elimination of Multi-Pollutants (EPA’s MACT, or near “Zero Emissions”) Low “Energy Penalty” or “Parasitic Load” Recovery of Commercially-Pure Sellable Products Pollution Control becomes “profit-generator” instead of “cost-center” 4 Modules for separate capture of each of 4 major groups of Pollutants [Presenter’s Discretionary Comments] The title of the patent is rather long, but here are the key concepts: We are introducing the new “lessons” that: Aerospace science can be used to substitute for traditional thermodynamics and conventional input of heat and catalyst to produce chemical reactions Read the Key Concepts 4 major groups of pollutants: metals & particulates, SOX, NOX, and Carbon CEFCO’s modularized technology can adapt one or more segregated-capture Modules to retrofit Power Plants based on their individual compliance needs, on a module-by-module basis The Capture Mechanism, the Ewan Process, is known, proven and in use APPENDIX the EPA/DOE “Partial Listing” moved to END OF PRESENTATION Proprietary & Confidential

7 Comparison of Parasitic Load or Energy Penalty
100° t1 t2 tm X,000° 300° 200° Ambient Supersonic “Free Jet Collision” Shockwave Effect (Intense Pressure and Energy) Aerodynamic Recovery of ∆P and ∆T Subsonic “Free Jet” Effect Ewan’s Subatmospheric Reaction Zone (Adiabatic Conditions) (∆ T) (∆ P) Conventional Thermodynamics and Chemistry Reaction Zone for Target Capture/Conversion by Reagent Biggest differences between traditional BACT technologies and CEFCO’s MACT technology are the costs and energy penalty challenges. Explain the Y-Axis and the X-Axis: Along the bottom you will see Time in “seconds” under the effect of Shockwaves, versus Time in “minutes” in conventional thermodynamics and chemistry. The Y-axis shows change in temperature and pressure [CLICK] Conventional thermo-chemistry as used in current BACT technologies begins with the costly and time-consuming input and building up of temperature and pressure (often with the assistance of expensive catalyst)  from the bottom-left corner to achieve the desired reactions in the upper-right reaction zone  (See the  “Green Oval”  surrounding the curve). [CLICK] Here you see a dramatic drop in temperature and pressure within a split-second . . . •Chemical reactions come from the “opposite direction” ―  starting at the upper left corner, “shockwave-induced high energy and high pressure”, then plunging downward rapidly into the reaction zone (which you see as the “Green Oval”  inside the highlighted in “yellow  band” across the page.) •The curve uptick shows when temperature and pressure begin to recover • We use what the physicists  called the “Molecular Surface Chemistry” • Under the supersonic shockwave technology, there exists an intensive sub-atmospheric zone of rapid temperature and pressure drop • CEFCO uses this  aerospace  Physics  phenomenon which allows  rapid “endothermic-exothermic reactions” to enable the capture of our targeted-Pollutants. We consume significantly less time and energy to achieve MACT requirements. P = Pressure T = Temperature °F t = time in seconds tm = time in minutes Proprietary & Confidential

8 Seeing Shockwaves Being Formed
[Presenter’s Discretionary Comments] The next few slides will help to illustrate how we use shockwaves to our advantage… We make use of the intensity of the multiple shockwaves at high Mach speeds to enable reactions inside our reactors Image: Airplane beginning to cross sound barrier at Mach 1.0, showing first shockwave Image: Schlieren Photography – multiple shockwaves generated by shuttle craft at much higher Mach speeds Proprietary & Confidential

9 Free-Jet Reaction Zone
Image: Schlieren Photography of Free-Jet Collision Zone inside adiabatic reaction chamber under CEFCO Technology [Presenter’s Discretionary Comments] This image helps us to visualize the “free-jet collision” that enables our endothermic-then-exothermic reaction condition inside the CEFCO Reactor Chamber This shows an adiabatic or “sub-atmospheric” condition first witnessed by aerospace scientists Please keep this image in mind as we proceed further Proprietary & Confidential

10 Shockwave-Induced Intimate Mixing
Image: Schlieren Photography showing shockwave-induced intimate inter-mixing and re-combination of two gas-phase molecules Shockwave envelopment Inter-mixing Schlieren Photography showing shockwave-induced intimate inter-mixing and re-combination of two gas-phase molecules (in dark color) within split-seconds when attacked and energized by a Shockwave (in bright yellow-orange-red color) [Presenter’s Discretionary Comments] Please observe how the two dark bodies twist and twirl and inter-mix when attacked by the shockwave Under such intensive energy conditions, Inter-mixing and Re-combining is extremely rapid Re-combination Proprietary & Confidential

11 CEFCO Process Uses Supersonic Shockwaves
CFD image: Accelerating steam to form a Shockwave Conventional BACT Processes’ Speeds = 50 ft/sec to several hundred ft/sec FIRST EXPLAIN IMAGE Bluish-Green Color shows low speed and low energy used by Conventional BACT Processes – anywhere between 50 ft/sec to several hundred ft/sec Deep Reddish-Purple Color shows speed reaching 1,200 ft/sec forming the first Shockwave Mach 1.0) CEFCO propels Steam or any Compressible Fluid at Speeds of several Machs to generate strong Free-Jet Collision of gas molecules with select-reagent [Presenter’s Discretionary Comments] Current BACT technologies perform work in the very low end of subsonic region ― at the top of the image CEFCO’s MACT technology begins at much greater than Mach 1.0 speed and provides extremely high energy and pressure to enable reactions ― at the bottom of the image Reaching 1st Shockwave at Mach 1.0 ≥ 1,200 ft/sec Proprietary & Confidential

12 CEFCO’s Unique Reaction Mechanism
All flue gas must pass downward through Shockwaves  “no escape” from “free-jet collision” and capture effect Pollutants are first captured using Physics then converted into valuable end-products by using Chemistry FIRST EXPLAIN IMAGE This is an image of our CEFCO supersonic nozzle. [Presenter’s Discretionary Comments] Flue gas (moving straight down from the top in the ductwork) is forced by the Supersonic Energy and Pressure to exit the Subsonic Nozzle into the “free-jet collision” sub-atmospheric reaction zone of extreme adiabatic conditions Endothermic-then-Exothermic reactions are achieved inside the Reactor[Let us recall the image of the “Free-Jet Collision Zone” from Slide 12] Proprietary & Confidential

13 Technology Flow Diagram
[Presenter’s Discretionary Comments] Keep in mind: the CEFCO Process’ enabling mechanism (Ewan Process) has not only been tested by the EPA, but has also been approved and recognized as a Hazardous Waste Combustors (HWC) MACT solution for the elimination of air pollutants from Radioactive, Hazardous, and Acidic Waste Incineration at DOE and DOD facilities. [use pointer to highlight modules when referencing them] This flow diagram shows an overview of the CEFCO Process The 4 Reactor Modules are designed in specific sequence, and each one is connected to an aero-coalescer at the bottom to take out the captured product Our 4 Modules are sequenced this way because ― the Ewan technology has proven that Particulates are captured first and the Metals react the fastest in the First Module, then Sulfur compounds in the Second Module, then Nitrogen compounds, and finally Carbon Compounds Use very simple and inexpensive reagent chemicals All Metals (including Elemental Mercury), SO, NO, NO3, and CO will be oxidized, and then captured in sequence as mentioned Make sellable End-Products: Captured Metals, Fertilizers, pure CO2 MUCH SMALLER “FOOT-PRINT” THAN OTHER TEHNOLOGIES Proprietary & Confidential

14 SRS (SOX) Module for Sulfur Capture
MACT Compliance — capturing over 99% of SO2 by using KOH as reagent KOH = reagent to make Potassium Sulfate Fertilizer, a very desirable Fertilizer Sodium will work, but Sodium Sulfate is not a desirable by-product salt Hess’s Law: [TANG] DISCUSS NOTES BEFORE SLIDE BULLETS The next few slides show Chemical Reactions well-known to chemical engineers to consume time and energy input However, inside CEFCO’s reactors, they occur within a “split-second” and they just absorb the extant energy and pressure already generated by the shockwave Hess’s Law applies: the beginning state to the stable-end state happens within a split-second, almost instantaneously! Target + Reagent become Sellable Product Because these are all standard Chemical Reactions, we will run through these slides quickly in order to maximize Q & A Time DISCUSS NOTES BELOW BEFORE DESCRIBING 3 SLIDE BULLETS Proprietary & Confidential

15 SRS (SOX) Module – Continued
Reactions inside the Aerodynamic System (Effect of Hess’s Law): SO2 + 2 KOH (reagent) → K2SO H2O (Reaction Product) SO2 + H2O → H2SO3 (Intermediate-Transient Product) H2SO KOH (reagent) → K2SO H2O (Final Reaction Product) Conventional Oxidation Reactions Forming Final Stable Product: 2 K2SO3 + O2 (or + 2H2O2) → K2SO4 (or + 2H2O) (Reaction Product) → Let [DEGLING SPEAK] [DEGLING] Tang to use pointer to highlight where the reactions are on page Top Section equations = endothermic reactions Middle equations = transitional reactions Lower equations = exothermic reactions Potassium Carbonate in recycling-regeneration mode will become the “workhorse” to help capture Fertilizer Product and CO2 We will need to replace the Potassium ions consumed to make the Potassium-based Fertilizers by fresh input of KOH in an outside Reagent Mixing Tank Proprietary & Confidential

16 NRS (NO, NOX) Module for NOX Capture
MACT Compliance — capturing over 99% of NO2 by using KOH as reagent KOH = reagent to make Potassium Nitrate Fertilizer, which may become the replacement for Ammonium Nitrate Sodium will work, but Sodium Nitrate is not a desirable by-product salt Hess’s Law: [TANG – do not read slide, just read and describe below notes] These reactions are similar to those in Sulfur Module (SRS) Difference is production of Potassium Nitrate Fertilizer Proprietary & Confidential

17 NRS (NO, NOX) Module – Continued
Reactions inside the Aerodynamic System (Effect of Hess’s Law): 2 NO2 + H2O → HNO2 + HNO3 (Intermediate-Transient Product) 2 NO2 + H2O2 (reagent) → HNO3 (Intermediate-Transient Product) KOH (reagent) + HNO → KNO3 + H2O (Final Reaction Product) Transient Reactions: KOH (reagent) + HNO2 → KNO2 + H2O KOH (reagent) + HNO2 + ½ O2 → KNO3 + H2O (Final Reaction Product) See: “Oxidation” and “Exothermic” Reactions Conventional Oxidation Reactions after Forming Final Stable Product: KNO2 (if not fully-oxidized) + H2O2 (reagent) ( or + O2 ) → KNO3 + H2O (Reaction Product) → Let DEGLING SPEAK [DEGLING] Tang to use pointer to highlight where the reactions are on page These equations are similar to ones seen in Sulfur Module Potassium Nitrate Fertilizer is produced Potassium Carbonate in recycling-regeneration mode will become the “workhorse” to help capture Fertilizer Product and CO2 Indicates regeneration of Potassium Carbonate as a reagent We will need to replace the Potassium ions consumed to make the Potassium-based Fertilizers by fresh input of KOH in an outside Reagent Mixing Tank Proprietary & Confidential

18 CRS (CO2) Module for Carbon Capture
Reactions inside the Aerodynamic System (Effect of Hess’s Law): CO2 + KOH (reagent) → KHCO3 (Carbon Capture) CO2 + K2CO3 (reagent) + H2O → 2 KHCO3 (Carbon Capture) Transient Reactions (Effect of Hess’s Law): CO2 + H2O → H2CO3 KOH (reagent) + H2CO3 → KHCO3 + H2O (Carbon Capture) Conventional Decarbonation = Liberation of Carbon Dioxide Reaction: Heat + 2 KHCO3 → K2CO3 (regenerated) + CO2 (liberated gas) + H2O Note: K2CO3 re-generation process liberates CO2 as gas and produces supply of recovered water for many subsequent uses [TANG] Do not read the Slide. Say the Notes below. This Carbon Capture slide may be the one that will be of the most interest to Government Agencies The making of Bi-carbonate and Carbonate Chemistry is well-known to thermo-chemical engineers, but the conventional thermodynamic methods require great input of energy and “parasitic load” However, Ewan’s aerospace science capture mechanism overcomes the mass transfer barriers in thermo-chemistry [DEGLING] Tang to use pointer to highlight top/middle reactions Carbon Capture in the form of Potassium Bi-Carbonate can be achieved at high efficiency/low cost The issue is: what to do with the pure CO2 after it is captured. Another important point: CEFCO Process captures and generates a lot of Water Recovery of H2O ― we liberate and generate “pre-historic water long locked up in fossil-fuels” Proprietary & Confidential

19 Pilot Plant in Wichita Falls, Texas: Jan. 2011
Began Installation in Jan. 2011 Completed and currently operated by Peerless Manufacturing Co. The pilot plant is to prove system integration of both the Ewan and Cooper Processes [Presenter’s Discretionary Comments] If Question asking about Pilot or Demo Plant, [TANG] Yes, we do have a Pilot Plant in operations currently in Wichita Falls, Texas, being operated by Peerless Manufacturing Co. Peerless [Stock Symbol: PMFG] is the manufacturer of the CEFCO Equipment for the exclusive territory of the USA under our License Peerless will be proving the successful engineering integration of Ewan Technology with Cooper Process (that is: capture pollutants + making highly sellable products from the pollutants) Proprietary & Confidential

20 CEFCO Aerodynamic Reactors and Aero-Coalescers: Feb 2011
3-10 tons/hr in Mass of Flue Gas 1-3 MW equivalent of Coal-Fired Flue Gas 4 x Separate and Distinct Modules Pictured: Chairman Don Degling and President Robert Tang [Presenter’s Discretionary Comments] Shown in Photo are: Don Degling, the Chairman and Robert Tang, the President Proprietary & Confidential

21 EPA and DOE Reports on Ewan Technology (1974 to 1986)
[Presenter’s Discretionary Comments] These next few slides are a partial itemization of Reports stretching over 30 years in the evolution of the technology. This Slide is a sample of records between 1974 to 1986. [POINT by Infra-Red Device: ] The Dates in the left Column show how historic these EPA Test Reports are. The Second Column shows the EPA “Test Report Numbers” that can be searched in the EPA database published by the U.S. Government. The Middle Column shows the “Targeted Emissions” and the Right-Hand Column shows the “Performance Conclusions”. Proprietary & Confidential

22 EPA and DOE Reports on Ewan Technology (1986 to 1996)
[Presenter’s Discretionary Comments] This Slide is a sample of records between 1986 to 1996. Proprietary & Confidential

23 EPA and DOE Reports on Ewan Technology (1997 to 2002)
[Presenter’s Discretionary Comments] This Slide is a sample of records between 1997 to 2002, when the EPA officially recognized this technology and codified it in the Hazardous Waste Combustors (HWC) MACT. Ref: 40 CFR § , et al. Please notice that on May 22, 2002, The EPA published its “Guide to Phase I MACT Compliance” prominently listing the collision free-jet wet scrubbing technology. EPA published its “Guide to Phase I MACT Compliance” for Hazardous Waste Combustors MACT ― May 22, 2002 Ewan’s Technology was recognized and codified in 40 CFR § et al. Proprietary & Confidential

24 Technology Summary Transformative MACT technology for Multi-Pollutants and Carbon Capture Pollution Control as “profit-generator” instead of “cost-center” Low “Energy Penalty” or “Parasitic Load” Eliminate plant shutdowns and reduce toxic landfills Customizable Modular Design for retrofitting Power Plants according to true MACT Compliance Needs Environmental responsibility: near “Zero Emissions” MACT can be achieved [Presenter’s Discretionary Comments] In summary, by integrating the Ewan Technology with the Cooper Process, users of CEFCO’s transformative technology will be in full compliance with MACT standards We hope to eliminate fossil-fuel plant shutdowns by helping them become compliant and reduce toxic landfills, while making a profit We encourage environmental responsibility by showing that “near zero emissions” with low “energy penalty” can be achieved Proprietary & Confidential

25 Thank you very much for your attention.
Questions & Answers Thank you very much for your attention. Please Contact Us At: For Robert Tang: Website: [Leave the Image of this Slide on the Screen during the Q & A Period, until Questions on a Topic that requires a change of Slide.] [Presenter’s Discretionary Comments] Thank you. I appreciate your time and attention. I will be taking questions at this time If a question addresses a Topic within the EPA/DOE Historical References, turn to Slides 5, 6 and 7. Proprietary & Confidential

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