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Chem-Mod Technology Shown to Dramatically Reduce Mercury Emissions at Coal-Fired Power Plants Up to 98%

Posted on: Wednesday, 8 February 2006, 09:00 CST

STOW, Ohio, Feb. 8 /PRNewswire/ -- Chem-Mod LLC, a privately owned environmental services company, today announced that it has developed an innovative, cost-effective and environmentally-safe technology that dramatically reduces mercury, sulfur and other emissions at coal-fired power plants.

The Chem-Mod(TM) Solution, Chem-Mod's new emissions reduction technology, uses a dual injection sorbent system that is implemented in connection with the coal combustion process to reduce baseline mercury emissions by as much as 98%, baseline sulfur dioxide emissions by as much as 75%, and other toxic emissions including arsenic, other heavy metals, and chloride. Utilities that implement The Chem-Mod(TM) Solution will immediately be able to achieve equal or better results than are mandated by the Environmental Protection Agency's (EPA) Clean Air Mercury Rule (CAMR) standards set for 2010 and 2018.

"The utility industry has been searching for an affordable and effective way to reduce mercury and other toxic emissions for years," explained Spencer Abraham, Former U.S. Secretary of Energy, and senior adviser to and indirect equity holder of Chem-Mod LLC. "We believe this technology has the potential to revolutionize the industry by making it possible for coal-fired power plants to exceed the proposed EPA Clean Air Mercury Rules today and in a cost- effective way for utilities."

"We are excited to introduce The Chem-Mod(TM) Solution to the public at a time when it is so critical for us to reduce harmful emissions from the air," said Doug Comrie, Vice President of Chem-Mod and principal inventor of The Chem-Mod(TM) Solution. "We have done full-scale testing at three separate commercial coal-fired power plants in three different parts of the country using various grades of coal. The results at every facility have met and exceeded our pilot test expectations for reducing mercury, sulfur dioxide and other toxic emissions."

The Chem-Mod(TM) Solution was pilot tested at the Energy & Environmental Research Center (EERC), an independent research lab affiliated with the University of North Dakota that is recognized as a national center of excellence for clean-coal technology.

Chem-Mod's first full-scale commercial test was conducted from October 23- 31, 2005. Results measured on site by EERC showed that baseline mercury emissions were reduced by up to 98% and baseline sulfur emissions were reduced by as much as 40%. Chem-Mod's results were measured in relation to baseline emissions levels present at the beginning of each test to differentiate between emissions reductions that were directly attributable to The Chem- Mod(TM) Solution versus those that naturally occur during the combustion process.

The second full-scale commercial test took place November 13-19, 2005. Baseline mercury emissions were reduced by as much as 90% and baseline sulfur emissions were reduced by as much as 75%.

The third full-scale commercial test was completed December 11-17, 2005. Baseline mercury emissions were reduced as much as 86% and baseline sulfur emissions were reduced as much as 45%.

"Chem-Mod's test results show that significant mercury emission reductions at coal-fired power plants are achievable," said Thomas Erickson, Associate Director for Research at the EERC. "We were extremely pleased to have provided our world-class mercury testing and research capabilities to assist Chem-Mod in this endeavor."

"Results from the limited testing we have done with the Chem-Mod process at our Corette power plant in Montana were promising. We are working with Chem-Mod on plans for more extensive testing at a PPL generating facility," said Paul T. Champagne, President of PPL EnergyPlus, the energy sales and marketing affiliate of PPL Corporation. PPL, a participant in Chem-Mod's commercial testing phase, owns 4,500 megawatts of coal-burning generation in Pennsylvania and Montana, and 12,000 megawatts of generating capacity overall in seven states.

Chem-Mod's system is the most affordable technology available today for controlling polluting emissions. The Chem-Mod(TM) Solution is easy to implement and can be operational at a coal-fired power plant within 30 days after minimal equipment has been installed. The equipment required to begin using The Chem-Mod(TM) Solution costs significantly less than the cost of current sulfur and mercury reduction technologies. Chem-Mod's technology costs approximately $2-8 million for a 200-megawatt plant based on the size and complexity of the facility, whereas the average cost of installing wet scrubber technology at a 200-megawatt facility could be as much as ten times the cost of Chem-Mod's technology, or approximately $60-80 million.

Additional financial and environmental benefits provided by The Chem- Mod(TM) Solution include:

* Increased furnace efficiency through reduced slagging of the coal-fired plant's boiler tubes. Tests conducted showed approximately 6% furnace efficiency gains. * The creation of high quality, environmental-friendly fly ash that can be sold as a bulk ingredient in the production of concrete as a partial replacement to Portland cement. Currently, many utilities pay to dispose of their fly ash in landfills due to its low quality. Fly ash created using Chem-Mod's system can be used productively and converts a former power plant expense into a new revenue stream. * Reduced carbon dioxide emissions, which contribute significantly to global warming, through the use of fly ash in place of Portland cement in concrete production. The production of approximately one ton of Portland cement emits one ton of carbon dioxide into the air. The Chem-Mod(TM) Solution dramatically decreases the production of carbon dioxide by reducing the amount of Portland cement used in concrete.

HSBC Securities (USA) Inc. is advising Chem-Mod LLC as to its strategic alternatives, including a possible sale of the company.

About Chem-Mod LLC

Chem-Mod LLC, based in Stow, Ohio, is a private environmental services company and the developer of The Chem-Mod(TM) Solution, a new technology that dramatically reduces mercury, sulfur and other toxic emissions produced by coal-fired power plants. Chem-Mod's dual-injection sorbent system is a patent pending technology and process that is exclusively licensed in the U.S. and Canada to Chem-Mod and exclusively licensed for the rest of the world to Chem-Mod International LLC. For more information about Chem-Mod LLC or The Chem-Mod(TM) Solution, please go to: http://www.chem-mod.com/.

Chem-Mod LLC Carolyn Kelly, President Chem-Mod LLC Tel: 866-846-4789 E-mail: Carolyn.Kelly@chem-mod.com Media Inquiries New York Washington, DC Cindy Leggett-Flynn/Catherine Jones Chuck Young Brunswick Group Brunswick Group Tel: 212-333-3810 Tel: 202-393-7337 E-mail: chem-mod@brunswickgroup.com E-mail: chem-mod@brunswickgroup.com

Chem-Mod LLC

CONTACT: Carolyn Kelly, President of Chem-Mod LLC, +1-866-846-4789,Carolyn.Kelly@chem-mod.com; or New York, Cindy Leggett-Flynn or CatherineJones, +1-212-333-3810, or Washington, DC, Chuck Young, +1-202-393-7337, allof Brunswick Group for Chem-Mod LLC, chem-mod@brunswickgroup.com

Web site: http://www.chem-mod.com/

Source: PRNewswire

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