Eilat - Eilot Conference November 2016 The Environmental, Economic and Energetic Advantages of Coal Substitutes Eilat - Eilot Conference November 2016 Sagiv Ben-Arie Business Development IEC

Mission “Greener” Electricity with Lower Economic / Environmental Costs

Coal Substitutes RDF = partial biomass, "greener " and cost-effective. Trimming = biomass and "greener ". Sludge = biomass and "greener ".

Original Context IEC initiative – examination and recommendation to promote co-firing of RDF in IEC coal power plants. Presentation of the professional report to decision makers. Recruiting support from Energy & Environmental protection Ministries. 15/1/12 The Ministry of Energy directs IEC to consider various alternatives for the use of coal substitutes up to the rate of 20%, dependent on coal price.

RDF - Blueprints IEC together with partners intends to initiate the erection and operation of a RDF plant. Incentive free. The RDF plant input will be unsorted MSW. Co-firing of the RDF with IEC’s typical coal basket. Thermal ratio of RDF / Coal – 5 / 95%. The actual rate will be derived from emission limitations.

RDF – Blueprints (cont.) IEC will be the Consumer as well as the Supplier / Investor. Daily average aggregate MSW in Israel is about 14,000 tons, the plant will utilize 1500 tons. The production potential of 1500 MSW tons daily ~ (750 tons RDF) ~ 50 MW generation capacity.

RDF – General RDF – Refused Derived Fuel is an environmental friendly proven technology of waste recovery. RDF is an outcome of industrial processes of waste separating and sorting: optional drying (SRF). The production processes involving various methods as well as utilizing size reduction equipment.

Recovery of Waste: Waste to Energy Based on RDF Global power stations: ~ 70 dedicated / stand alone and ~ 25 co-firing. RDF is considered to be green energy. In Israel the organic fractions are considered as renewables. This project has significant environmental value – landfilling reduction and renewable in some aspects.

RDF Project - Environmental Advantages Using two units in Rutenberg Power plant (capacity 1100MW) Implications of landfilling reduction of about 500,000 tons MSW annually : Soil contamination reduction. Water resources and ground water contamination reduction. Landfills: Green House Gas (GHG) emission reduction. Increased scale of land reserve. Trucks mileage reduction – with the inherent rate of air pollution.

RDF Project – Economic Advantages (cont.) Electricity generation cost reduction – payback to the customers of nearly 40 million NIS per year. Landfill associated cost reduction by 130 million NIS annually.

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IEC Plant– Flows (With Bio-Dry) ( from the input50% ) IEC Plant– Flows (With Bio-Dry) MSW Separating, sorting and recycling plant RDF 50% Recycled Metals 11% Humidity 29% Landfilled ~- 10%

RDF Test IEC imported 800 tons of RDF from Italy. The chosen supplier was the RDF supplier to ENEL, Fusina coal fired power plant (14 years of experience in co-firing). 3. The actual co-firing test was executed in May 2015. The process completed without any negative impact on boiler and unit performance.

RDF Test – Environmental Implications Emission concentrations were within the approved emission permit issued by the Ministry of Environmental Protection. Chloride based emissions: high concentration of Cl in the RDF requires better screening of RDF. No substantial change in fly ash quality and gypsum characters produced in the FGD during RDF co-firing.

Time Table – for the Plant Commencement of construction – 2019 Commissioning – 2020 Operation - 2021 Milestones: Regulators and government approvals – Q4 2017 Tender for partner – Q3 2018 Development – Q3 2019 Construction Q4 2020

Future Projects – Biomass Global Experience Global rich experience in various technologies of utilizing biomass in energy production. Example – DRAX power plant (England) – the largest in the world. Co-firing of coal with biomass pellets – in capacity of 400 MW with 20% bio mass.

Future Projects – Biomass Global Experience (cont.) Multiple plants in Belgium, Netherland, Germany and others. Biomass utilization facilitate CO2 emission reduction and economical waste recovery. IEC plans to be part of the success.

Future Projects: Trimmings Co-firing of tree stumps- citrus & avocado as coal substitutes. This type has government prioritizing as it is the raw material for the illegal charcoal production facilities which create significant air pollution. Presents 20% of the total trimming with potential production ~ 300,000 tons annually ~ 35 MW generation capacity. Alternative methods such as wood pellets and bio-coal are being scrutinized as well.

Future Projects: Trimmings (cont.) To sum-up: IEC can facilitate a solution for a severe environmental hazard. Full, continuous implementation is subject to positive test results and an appropriate business model and tariff arrangements.

Future Projects: Trimmings The Test Co-firing of 1000 tons of Tree Stumps- Citrus & Avocado in Orot Rabin Power Plant. Tentative schedule: Q2 /2018. Thermal ratio of 3% biomass - 97% coal. Dedicated pulverizers and feeding process– as in the anticipated commercial operation.

Future Projects: Trimmings The Test (cont.) Anticipated outcome 5% of the CO2 emissions reduction: as utilizing biomass considered as Zero Carbon. Anticipated outcome – no significant implications on other emissions – even slightly decrease in NOx & SO2. Approved appropriate business model – tariff arrangements.

Trimming Project – Unit 5 Orot Rabin Unit Boiler5 Turbine

Trimming Project – General Arrangement

Future Projects: Sludge IEC pre-examined co-firing of urban sludge from waste water treatment plants, as a coal substitute. Preliminary technical feasibility study has been approved. Drying process is required in order to produce solid rate of 80%-90%. Typical sludge containing heavy metals: Thermal ratio of Dried Sludge / Coal – 2% / 98%. The production potential: 115,000 tons annually ~ 20 MW generation capacity.

Future Projects: Sludge Small-scale energy generation - significant environmental advantages. Required a supportive business model. Assumption: cost of sludge treatment as coal substitute ~ 60 million NIS annually, VS cost of landfilling sludge ~ 120 million NIS annually, but nevertheless is higher than coal.

Sagiv Ben-Arie sagiv@iec.co.il 0523-995014