1. Alternative Energy Overview and Cofiring Biomass at Cogen Cogen Neighbor Meeting April 28, 2010

2. Agenda Introduction Overview of Climate Action Plan (CAP) and Alternative Energy Study Woody Biomass Test Burn Schedule Question and Answers

3. Climate Action Plan www.climate.unc.edu

4. Climate Action Plan UNC became an early signatory to the American Colleges and Universities Presidents Climate Commitment (ACUPCC) in 2007 and began development of its Climate Action Plan Overall goal = zero net greenhouse gas emissions by 2050 The plan addressed all sources of greenhouse gas (GHG) emissions in UNC’s inventory: – On-site fossil fuel combustion (Scope 1 emissions) – Purchased electricity (Scope 2 emissions) – Transportation and other indirect sources (Scope 3 emissions) The plan includes measures affecting both energy demand and energy supply

5. Alternative Energy Study In 2008, in support of the Climate Action Plan, UNC initiated a study of several alternative energy technologies for potential implementation at UNC Involved a diverse team of experts, including UNC Energy Services staff, consultants, contractors, and technology suppliers Publicly-available and proprietary studies were reviewed, suppliers were interviewed, and plant trips were made to examine operational examples of the alternative energy technologies under consideration

6. Alternative Energy Study The alternative energy technologies included: – Biomass Gasification – Co-firing Biomass – Landfill Gas – Poultry Litter – Solar PV – Solar Thermal – Anaerobic Digestion of Animal Waste – Wind Power – Geothermal – Ocean/Tidal Energy – Algae – Carbon Sequestration – Modular Nuclear – Municipal Solid Waste (MSW) Plasma Gasification – Fuel Cells

7. Near-term Alternatives – Carbon Reduction

8. 50% Natural Gas 50% Coal Substitute 100% Coal Substitute Large Scale BiomassPlasma Gasification Near-Term PortfolioLong-Term Common Long-Term Alternative LFG Banked Offsets Additional Projects

9. Alternative Energy Study 20 Percent Coal Substitute – Dried Wood Pellets – Currently Available Locally harvested virgin lumber from sustainably managed forests Chipped and dried to reduce moisture in the wood Pelletized and shipped – Torrefied Wood – Available Fall 2010 Locally harvested virgin lumber from sustainably managed forests Chipped and heated, end result similar to charcoal Can be left in chipped or pellet forms

10. Biomass Test Burn Challenges – Fuel Supply Chain and Cost – Front End Fuel Handling Storage Feed Systems – Impact on Combustion and Heat Transfer Surface – Baghouse Impacts – Ash Disposal Impacts – Amount of Carbon Reduction

11. Biomass Test Burn Emissions – All Emissions below regulatory thresholds – Decreases in SO 2 and No x – Increases in a number of organics (non-torrefied biomass), but all substantially below regulatory thresholds.

12. Biomass Test Burn Tests (each fuel) – Feed Tests Approximately 20 tons (1/4 rail car) Confirm ability to feed through existing bunkers, feeders, and mills – Sustained Co-fire Tests Up to 500 tons Co-fire at 5%, 10%, 15%, 20% levels Confirm Boiler operation and performance with co-fire

13. Biomass Test Burn Tentative Schedule – Test Protocols – Spring 2010 – NC Dept. of Air Quality Permit – Spring 2010 – Dried Wood Pellets Tests – Spring to Summer 2010 – Torrefied Wood Tests – Fall to Winter 2010/2011 – Evaluation and Implementation Plan Development – 2010/2011 – Burn 2012 - ? (Fuel Supply Chain and Extent of Required Modifications)