A n I n t r o d u c t I o n t o T h e r m o C h e m R e c o v e r y I n t e r n a t i o n a l, I n c. Biomass and Spent liquor Gasification The Foundation of the Forest Biorefinery Presented by: Eric Connor Sr. Vice President Auburn University Alternative Fuels Conference October 23-24

Integrated Forest Biorefinery (IFB) The IFB is a Strategic Paradigm Shift  Currently we think of ourselves as Pulp and Paper or Wood Products Manufacturers Commodity production Consolidating industry Shifting capacity overseas  But if we recognize that we are the Worlds Best Processors of Biomass Uniquely positioned to capitalize on the nation’s focus on renewable energy Create a strategic and sustainable business

 Overview of Gasification How it works Commercial demonstrations  Biorefineries and Pulp and Paper Mills Why biomass Why gasify biomass An implementation strategy Compelling reasons for change For Today’s Discussion

What is Steam Reforming Gasification?  Gasification used by TRI is based on its proprietary indirectly- heated steam reforming process at medium temperature and low pressure  Superheated steam reacts endothermically (consumes heat) with the carbonaceous components of the biomass to produce hydrogen and carbon monoxide fuel gases: H 2 O + C + Heat → H 2 + CO (steam reforming reaction)  Water-gas shift reactions also occur simultaneously with the steam reforming reactions to yield additional hydrogen and carbon dioxide: H 2 O + CO → H 2 + CO 2 (water-gas shift reaction)

TRI’s Technology TRI’s PulseEnhanced TM steam reformer is a patented technology that: Produces a medium Btu syngas Can customize the composition of the syngas to meet the needs of the downstream process Can process a wide spectrum of carbonaceous feedstocks in a fluidized bed environment Energy self sufficient - utilizes a portion of the syngas produced as fuel for the proprietary PulseEnhanced TM heat exchangers Is inherently stable and safe Fluidizing Steam Bed Solids H 2 rich Syngas Biomass/ Black Liquor Clean Flue Gas Fuel

Pulse Combustor- How It Works Combustion Chamber HX Tubes Decoupler Aerovalves

Norampac - Trenton, Ontario  500 tpd corrugating medium mill  System design capacity 115 tonnes/day bls  Started up Sept 2003  Meeting all of the mill’s liquor processing needs  System optimization well underway

A Strategic Initiative Elements of the Initiative  Sources of Biomass  Why Gasify Biomass  Integrated Biorefinery Concept  Phased Approach to Implementation The Integrated Forest Biorefinery

 Biomass is a solar energy storage system  Biomass in pulp and paper is  Logs and Wood Chips  Spent Pulping liquor  Waste Wood and Bark  Biomass also is  Forest Residuals  Wood Products Residuals  Agricultural Field Residuals  Agricultural Processing Residuals  Waste Sludges  Energy Crops Sources of Biomass

Production of Biofuels and Biochemicals

Optionality - Syngas to Biofuels / Biochemicals

Current Pulp and Paper Mill - Base Building Products (Boards, Paneling, Engineered Wood, etc.) Saw Mill Thinnings Logs Chips Forest Pulp MillPaper Mill Paper Products (Board, Printing & Writing, Tissue, etc. Chip Mill Soap & Turpentine

Integrated Forest Biorefinery - Phase I Building Products (Boards, Paneling, Engineered Wood, etc.) Saw Mill Thinnings Logs Chips Forest Pulp MillPaper Mill Paper Products (Board, Printing & Writing, Tissue, etc. Chip Mill Soap & Turpentine 491,000 dry TPY 648,000 bbl/yr 18 MW 200,000 PPH 45 MM Btu/hr Sawdust & Bark Forest Residuals Gen Steam Agricultural Residuals Exhaust Gas Steam Turbine Process Steam Tail Gas Agricultural Primary Crops Biomass Prep & Drying Heat Recovery Steam Reformer Fischer Tropsch (Bio-crude) Biofuels Electricity Kiln Power Boiler Steam

Integrated Forest Biorefinery - Phase I THERMAL EFFICIENCY 44 Btu 100 Btu Building Products (Boards, Paneling, Engineered Wood, etc.) Saw Mill Thinnings Logs Chips Forest Pulp MillPaper Mill Paper Products (Board, Printing & Writing, Tissue, etc. Chip Mill Soap & Turpentine Sawdust & Bark Forest Residuals Gen Steam Agricultural Residuals Exhaust Gas Steam Turbine Process Steam Tail Gas Agricultural Primary Crops Biomass Prep & Drying Heat Recovery Steam Reformer Fischer Tropsch (Bio-crude) Biofuels Electricity Kiln Power Boiler 491,000 dry TPY 648,000 bbl/yr 18 MW 200,000 PPH 45 MM Btu/hr 37 Btu % Steam

Integrated Forest Biorefinery - Phase II 700,000 PPH 37 MW Heat Recovery Fischer Tropsch (Bio-crude) Biofuels Steam Turbine Gen Process Steam Steam Tail Gas Electricity Kiln Pulp Mill Steam Reformer Recovered Chemicals 1350TPD Black Liquor 1,500,000 bbl/yr 45 MM Btu/hr 851,000 dry TPY Biomass Prep & Drying Power Boiler Forest Residuals Agricultural Residuals Exhaust Gas Building Products (Boards, Paneling, Engineered Wood, etc.) Saw Mill Thinnings Logs Chips Forest Paper Mill Paper Products (Board, Printing & Writing, Tissue, etc. Chip Mill Soap & Turpentine Agricultural Primary Crops Sawdust & Bark Steam

Integrated Forest Biorefinery – Phase III Gen Forest Residuals Agricultural Residuals Sawdust & Bark Exhaust Gas Steam Turbine Gen Process Steam Steam Recovered Chemicals Tail Gas Building Products (Boards, Paneling, Engineered Wood, etc.) Saw Mill Thinnings Logs Chips Forest Pulp MillPaper Mill Paper Products (Board, Printing & Writing, Tissue, etc. Chip Mill Soap & Turpentine Agricultural Primary Crops Biomass Prep & Drying Heat Recovery Steam Reformer Fischer Tropsch (Bio-crude) Biofuels Electricity Kiln Power Boiler 1350TPD Black Liquor XXX bbl/yr XXX dry TPY 700,000 PPH 37 MW XXX MW 45 MM Btu/hr Electricity To Grid Gas T/G

So What! The Integrated Forest Biorefinery

This Strategic Investment will Provide  Increased Revenue by at least 50 Percent Through High Value Bio-based Products and a New Customer Base  Fossil Fuel and Purchased Electricity Independence  Renewable Electricity Export to the Grid  Up to 20 Percent Pulp Yield Improvement  A Strong Balance Sheet  New Manufacturing and Support/Service Jobs  Healthy and Stable Regional Economies  A Revitalized Key North American Renewable Resource Industry The Integrated Forest Biorefinery

To move forward  We need to change how we think  This is a Strategic Initiative !!  Identify new sources of biomass  Involve the community, province and industry partners  Start now – it takes time to develop The Integrated Forest Biorefinery

Presented By Eric Connor, Sr Vice President, ThermoChem Recovery International The Integrated Forest Biorefinery The Opportunity