1. Oilheat Air Emissions and the Advantages of Low Sulfur Fuel A Presentation to NYS Dept of Environmental Conservation Presented by: John E. Batey, PE, President Energy Research Center, Inc. May 30, 2003

2. Topics for Presentation: n Overview of Home Oil Burner Air Emissions n Results of Low Sulfur Oil Studies u Brookhaven National Laboratory u NYSERDA - Buhrmaster Energy u Summary of Advantages n New Technologies u Biodiesel /Low S Fuel Blends u New oilheat Applications

3. Overview of Home Oil Burner Air Emissions n Comparison of Air Emission Rates n Lower PM Emissions n Nitrogen Oxide Emissions n Sulfur Oxide Emissions

5. Key Points : Air Emission Rates u Oil burner emissions of PM, Carbon Monoxide, Hydrocarbons, NOx, and Sulfur Oxides are much lower than the average combustion source in the US. u Emission rates range from 1/2 (SOx) to 1/123 rd (Hydrocarbons) of the average combustion source in the US. u Low sulfur (0.05%) fuel oil that is now available lowers SOx emissions by 80%. u Total Air Pollutant Emissions from #2 oil range from only 0.04% to 0.69% of the US total each year.

6. Ref: USEPA and BNL Report 52249

7. Key Points : Oil PM Emissions u Over the past three decades, PM (smoke and soot) have dropped by a factor of 20 or 95%. (Ref: BNL and USEPA) u Improved oil burner designs (flame retention) and higher air pressure produce more complete combustion, more stable flames, and lower PM. u Tests at BNL measured PM emission rates for modern burners of only 0.003 #/MMBTU of fuel. u This is similar to natural gas burners (ref: AP-42) u Home oil produces only 0.12% of the total PM emissions in the US each year

9. Key Points : Oil NOx Emissions

11. Ref: USEPA Publication AP-42 n

12. Key Points: Oil SOx Emissions u Home heating oil and natural gas both emit low levels of sulfur oxides u Low sulfur fuel oil (0.05%) produces small amounts of sulfur oxides u Electric heat pumps emit 8 to 32 times more SOx than home oil burners u Electric heat emits 16 to 64 times more SOx than home oil burners u Ultralow S oil (15 ppm) emits the lowest levels of SO 2.

13. Results of Low Sulfur Oil Studies: Advantages of Low Sulfur Oil u Brookhaven National Laboratory u NYSERDA - Buhrmaster Energy Group u Summary of Advantages

15. Effect of Fuel Sulfur on PM Emissions Ref: CETC

17. NYSERDA - Buhrmaster Energy Group Low Sulfur Demonstration n Demonstrate the advantages of reduced sulfur fuel oil through field testing in 1000 homes n Evaluate actual changes in heating equipment performance with the lower sulfur fuel -measure differences in heating unit deposits, stack temperature, and other measures. n Investigate and evaluate reductions in service costs by using low sulfur oil – through increased service intervals n This field study program can help to overcome obstacles to widespread use of low sulfur heating oil by quantifying the benefits including changes in service requirements.

18. NYSERDA - Buhrmaster Field Study

19. Cost Savings with Low S Oil

20. Economic Benefit of low S Oil (Reduced Vacuum Cleaning Costs)

21. Reduction in NOx Emissions Low Sulfur Fuel Oil

22. Emissions Reduction - NYS n SO 2 emissions in NYS are reduced 67,620,000 pounds or 33,800 tons per year by using fuel oil with 0.05% sulfur oil. n “Environmental cost” savings for New York State by using low sulfur fuel oil are $5.6 million a year by applying emission cost factors. n Savings by improved heater efficiency for NYS is estimated to be $11.5 million a year by reduced fouling of heat exchanger surfaces. n Homeowners can save approximately $65 million a year through lower service costs

24. Advantages of Low S Oil n Lower Service Costs - $200 MM/Yr (nationwide) n Service Savings > Added Fuel Cost n Lower SOx Emissions ~80% n Lower PM and NOx emissions n Extended vacuum cleaning intervals n Improved Environmental Impact for Oil (equivalent to Nat gas) n Emission Reduction Credit Potential

25. New Technologies n Biodiesel /Low S Fuel Blends u SO2 reduced 83% or more u Good Combustion u NOx lowered 20% n New oilheat Applications u Condensing Furnaces/Boilers u Reduced Firing Rates u New generation of appliance (similar to nat gas equipment)

26. Summary n Home oil burners now produce low levels of air emissions: PM, NOx, SOx, CO, HC n Low sulfur oil lowers air emissions substantially: SOx, PM, NOx n Many Economic Advantages of Low Sulfur home heating oil n Biodiesel / Low S Blends reduce emissions even further n Lower sulfur oil permits new technologies: condensing furnaces