AAPCA 2016 Spring Meeting Panel: NOx Controls Updates Columbia Marriott Columbia, South Carolina April 28-29, 2016 Timothy L. Matz Corporate Director of Environmental Affairs Lehigh Hanson, Inc. 2011 Environmental Conference

Lehigh Hanson Overview 2016

Company history Lehigh Cement Company Hanson, plc Founded in 1897 by several prominent businessmen from Allentown, Pennsylvania. In 1977, Lehigh was acquired by HeidelbergCement and is now a top supplier of cement and related materials in the U.S. and Canada Hanson, plc Hanson, mainly an aggregates company was acquired by the HeidelbergCement in August 2007. Lehigh Cement and Hanson, PLC were integrated in 2008 Today, the Lehigh Cement Company and the Hanson business in North America are collectively known as Lehigh Hanson, Inc. Lehigh Hanson Overview 2016

Our business lines Cementitious Gray cement White cement Cement distribution terminals Ground granulated blast furnace slag (GGBS) Aggregates and asphalt Crushed rock, sand & gravel Hot-mix asphalt and construction operations Recycling operations Various other materials Concrete Ready mixed concrete Concrete block, precast concrete pipe (Canada) and other products Lehigh Hanson Overview 2016

Core Business: Cement Manufacturing

NOx Control Updates in the Cement Industry Hierarchy of Controls: Selective Catalytic Reduction (SCR) Selective Non-catalytic Reduction (SNCR) Low NOx Calciner (Minox system) Low NOx Burner Staged combustion (mid-kiln firing/tires) Oxygen enrichment Smart logic controls (kiln burning/process controls)

SNCR in the Cement Industry

SNCR Chemical Reaction 2 NH3 + NO2 + 1/2 O2  3/2 N2 + 3 H2O CO(NH2)2 + 2 NO + 1/2O2  2 N2 + CO2 + 2 H2O Key to success is Temperature

Additional SNCR Installation Tank installation Pump and Control skid installation Piping tie ins to kiln Commissioning System

SNCR Equipment Required – Reagent tank – Distribution system – Control system – CEMS for NOx & ammonia required to determine optimum ammonia injection rate to maximum NOx control & minimize ammonia slip – If urea used, water treatment system & heat traced storage & piping required

SNCR SNCR Results in Reduction in NOx -Typically between 35% and 65% Higher Control Efficiencies Generally Associated with Higher Molar Ratios Ammonia Slip & Detached Plumes May Result from High Molar Ratios

SNCR Lessons Learned 1. SO2 emissions can impact detached plume formation when using SNCR –One plant with high SO2 emissions produces a detached plume when operating SNCR 2. Long dry kilns and wet kilns with SNCR will require additional maintenance on the rotary coupling –One plant replaces coupling at least one time per year 3. Know your ammonia emissions before establishing or accepting a ammonia limit with SNCR –One facility has 24 hour average ammonia emissions from 20 to 150 ppm from their limestone –Accepted a limit of 10 ppm over the 24 hour average ammonia emission at one facility.

SCR in the Cement Industry Plants with SCR worldwide Solnhofen, Germany, High-Dust, started 2001, shut down 2005 Cementeria di Monselice, Italy, High-Dust, operating since 2006 Cementeria di Sarche, Italy, Semi-Dust, operating since 2007 Schwenk Mergelstetten, Germany, High-Dust, operating since 2010 Rohtdorf Zement, Germany, Tail-End, operating since 2011 Mannersdorf, Austria, Semi-Dust, operating since 2012 Joppa, IL USA, Lafarge, Semi-Dust operating since 2013

EPA Air Pollution Control Cost Manual Chapter 1 – Selective Noncatalytic Reduction (SNCR) Chapter 2 – Selective Catalytic Reduction (SCR) Portland Cement Association (PCA) submitted comments last September to EPA on their cost manual Provided additional information on the application of SNCR and SCR as they relate to the cement sector. Clarified differences and challenges experienced by cement industry when compared to utilities and large industrial boilers Currently 2 cement plants have SCR: one in operation, one under construction. Lafarge: Joppa, IL. Installed (long dry kiln w/hot ESP/no re-heat) Holcim: Midlothian, TX under construction

SNCR reaction takes place between 850-1050°C (1550-1900) SNCR vs. SCR Recap Both utilize ammonia to reduce NOx but SCR has a catalysts with a life expectancy Temperature SNCR reaction takes place between 850-1050°C (1550-1900) SCR reaction takes place between 260-400°C (260-370) Three types of SCR High dust Semi dust Low dust (Tail-End) Availability SNCR -100% SCR –90-96% (Europe)

PCA’s Comments on EPA’s cost manual: SNCR Control Efficiencies are higher than earlier predictions SNCR is in use on many kilns in US PCA survey indicated 67% of those kilns responding (representing ~70% of US kilns) had or will have SNCR by 2017 SNCR capital costs are correct SNCR has high availability Conclusion: SNCR provides reliable, continuous control of NOx that approaches the control efficiency achieved with SCR

PCA’s Comments on EPA’s cost manual: SCR Cement kiln application of SCR is more complicated than that for boilers Actual capital costs for SCR in cement are much higher 2.5-4.3 times higher than shown by EPA (European data)($20-30M) Costs reported by EPA were outdated estimates not actual costs. US cement kilns more challenging than European kilns for SCR implementation due to: Sulfur and other constituents of raw materials Kiln type, size, age Dust loading Cost calculation methodology/examples are not appropriate for cement applications

US vs. European Kilns Unlike Europe, raw materials are more variable across the US and in many areas contain sulfur/pyrites and other catalyst poisons The presence of sulfur prohibits low temperature catalysts (ABS formation) Availability of control is a concern SCR has not been installed in long dry kilns

Kilns vs. Boilers Dust loading is substantially higher Boilers 10-20 g/Nm3 Preheater kilns 80-100 g/Nm3 Precalciner kilns up to 180 g/Nm3 Dust cleaning is more aggressive Boiler use sonic horns and soot blowers periodically to remove dust from catalyst Cement kilns utilize heated, dry compressed air systems that operating nearly continuously Additional or upgraded ID fans needed Catalyst life remains unknown and therefore catalyst costs cannot be predicted

PCA’s Comments on EPA’s cost manual: SCR Conclusions: SCR has not been established as a feasible control technology in the US. Actual capital costs for cement kiln SCRs are much higher than EPA’s examples The variability of kiln types, ages, sizes and raw material constituents in the US makes SCR design and operation more challenging than boilers or kilns in Europe EPA’s cost methodology is not appropriate for cement kilns Higher than predicted SNCR control efficiencies and high availability make SNCR comparable to the lower end of SCR control efficiency

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