A1258690236frpEl

1
Four Corners Air Quality Task Force August 9,
2006
Desert Rock Energy Project
2
Sithe Global Representatives

• Dirk Straussfeld, Executive VP,
• Sithe Global Power, LLC
• Nathan Plagens, Director,
• Sithe Global Power, LLC
• Gus Eghneim, VP-Environment, Health, Safety,
• Wood Group Power Operations
• Sithe Global Power is a privately held
  independent power development company developing
  power generation projects worldwide

3
Scope of Presentation

• Project Summary
• Air Permitting Process
• Pollution Control Technologies
• Air Quality Impacts
• Refer to http//www.epa.gov/region9/air/permit/des
  ertrock/index.html

4
Desert Rock Summary

• An up to 1,500 MW coal fired electric power plant
• Combined Power Plant and Coal Mine Located in
  Nenahnezad and Burnham Chapter Areas of the
  Navajo Nation, San Juan County, New Mexico
• Fuel Navajo Coal, from adjacent BHP Mine
• Estimated cost 2.8 Billion
• Construction to begin in 2007 with an online date
  in 2011
• Power sales through long-term (25-year) power
  sales agreements with regional utilities
• Prices are fixed for a long term
• Desert Rock will not trade electricity on the
  market

5
Desert Rock - Steps to Air Permit
Status today
Final Air Permit Winter 2006
Draft Air Permit July 2006
Start of development of the Air permit September
2003
Air Permit Application February 2004
Public Comment Period
2007
2006
2005
2004
2003
6
Air Permit

• Strategy Submit an application with the lowest
  emission rates for any pulverized coal fired
  power plant in the US to minimize impacts to the
  environment
• Permit Application Submitted February 2004
• 98 Removal of SO2
• 99 Removal of Particulate Matter
• 80 Removal of Mercury
• 90 Removal of NOx
• Application Deemed Complete in May 2004
• Extensive Modeling Completed per EPA, NN EPA, and
  DOE (NPS and FS) Requirements

7
Air Permit - Mitigation

• Desert Rock plans to accept the following
  mitigation measures
• Permanently reduce SO2 emissions from existing
  area sources by 3,850 tons or
• Acquire regional SO2 allowances in the amount of
  7,000 tons per year
• Contribute to regional environmental
  initiatives

8
Air Permit - Status

• Draft Air Permit posted on EPA Region 9 website
  (http//www.epa.gov/Region9/air/permit/desertrock/
  index.html)
• EPA will post dates by August 15, 2006 for
• Public Workshop
• Public Hearing

9
Pollution Control TechnologyMajor Equipment

• NOx Lox NOx Burners and Selective Catalytic
  Reduction (SCR)
• SO2 Wet Limestone Flue Gas Desulfurisation and
  Low Sulfur Western Coal
• CO Good Combustion Practice (High Efficiency
  Supercritical Boilers)
• VOC Good Combustion Practice
• PM Fabric Filters
• H2SO4 Mist Hydrated Lime Injection
• HF Hydrated Lime Injection
• PB Fabric Filters

10
Air Quality Impacts

• Summary
• EPAs initial assessment is .. that the
  proposed project will not violate any NAAQS of
  PSD increment.. (Ambient Air Quality Impact
  Report, NSR 4-1-3, AZP 04-01, Section VII, pg 35)

11
Air Quality Impacts (2)

• NOx CO well below the significant impact
  level
• SO2 PM10 The cumulative impact analysis
  Sithe submitted, however, demonstrated that the
  proposed Facility will not cause or contribute to
  an exceedance of the SO2 and PM10 NAAQS or PSD
  increments
• Lead The proposed facility will not exceed
  NAAQS
• Finally, the proposed Facility will not have a
  significant impact on acid deposition at any
  Class I area, or on the aid neutralizing capacity
  of sensitive lakes.

12
Desert Rock The Next Step To Near-Zero
EmissionsFrom Coal-Fired Generating Plants
Emissions from Coal-Fired Generating Plants
0.94
0.39
0.34
0.26
0.182
0.16
0.17
0.10
0.12
0.06
0.07
0.06
0.08
0.06
0.06
0.03
Near-Zero
U.S. Average 2004
Clean Air Interstate Rule 2010
New Midwest Mine-mouth
Clean Air Interstate Rule 2015
FutureGen Goals
IGCC Projection
Existing IGCC (Permit Level)
New PRB Plant
DREP 2004 Air Permit Application
Estimate Source EPAs Clean Air Markets
database EIA 2004 Annual Energy Outlook GE
Energy SFA Pacific. Estimate Inserted by DPA
for discussion purposes only in showing
relationship of Desert Rock estimated emissions.
13
SO 2 Emission will continue to decrease even with
Desert Rock