PLASMA ARC --- DIRECT CONVERSION of COAL to Marketable Products

AVAILABLE THROUGH:  ALLIED ENERGY SERVICES CORPORATION
THE UTILIZATION OF PLASMAFICATION SYSTEM TO REPLACE EXISTING AND NEW CONSTRUCTION OF COAL PREPARATION / SEPERATION PLANTS AT THE MINE SITE.
WHITE PAPER

MODIFIED BUSINESS PLAN FOR THE WAY INDUSTRY PROCESSES AND USES COAL
The ALLIED ENERGY SERVICES CORPORATION has developed a unique and forward method which is designed to eliminate conventional “float-sink” coal processing of “Steam Coal” by DIRECT CONVERSION of “RUN OF MINE” coal to Electricity, Clean Water, Motor Fuels and other products derived from coal, which is transportable to market by Wire, Truck or Rail.
Proprietary APGCC System:
The Allied Plasma Gasification Combined Cycle (APGCC) and/or Single Circuit Turbine with “off-gas” conversion to Pure (H2O) Water, Hydrogen, Elemental (SO4) Sulfur, Liquid Carbonic, Synthetic Motive Ready Diesel Fuel and other Hydrocarbon Products, Precious and Noble Metal Recovery, Carbon Black, other elements and compounds, in a unique process that uses a patented Plasmification technology for the conversion of low value fuels/feed stocks, such as run of mine coal, low btu coal, high sulfur coal, high moisture coal, coal waste, petroleum coke, automotive tires, bio-mass, and other carbon rich or cellulosic waste forms (including MSW), into a synthesis gas or “syngas” which is rich in carbon monoxide and hydrogen gases.
These gasses are then employed in two separate processes. One, as a primary fuel for a gas turbine with secondary recovery through a steam turbine in a process circuit similar to the GE-IGCC. Second, the APGCC can also be viewed as a two-stage processor with a portion of the opportunity “Syn-gas” being passed through a hybrid catalyst for direct synthesis of isoparaffin via Allied Modified Fisher-Tropsch (AMFT) system, with that gas stream being converted to various complex hydrocarbon chain outputs including but not limited to pure (H2O) water and synthetic motor fuel. The feedstock is first processed, ground, pulverized and sized to be fed by Archimedes Screw into a slightly negative pressure gasifier.
The gasification chamber utilizes mature technology developed from the iron foundry industry in the late 1800’s. The system does not allow for combustion because it does not permit natural atmosphere to enter. The gasses inside the vessel are highly controlled with regard to the Oxygen level, wherein this lack of (O) prevents combustion. Nitrogen, including atmospheric Nitrogen are not present in the gasification chamber, except for that (N) which may be present within the compounded elements of the feedstock. This process prevents accretion of NOX, a known environmental pollutant. The gas is then cleaned of particulate matter and a portion of the Hydrogen rich “syngas” is combusted in the gas turbine to produce electricity for the purposes of being co-gen and off the grid. If the Hydrogen is combined with Oxygen at this phase of the operation, it forms simple water as a byproduct. In a two stage operation, a portion of the syngas is passed through a catalytic cracking process and cooling tower in the reforming process to extract basic elements, metals and complex hydrocarbon chain derived products.

This APGCC system generally consists of five separate processes:
• Feedstock handling;
• Plasmafication ™;
• Proprietary “off-gas” handling for conversion to Water and Liquid Hydrocarbons;     
• Electrical Generation APGCC; and
• Cooling – precious and noble metals recovery and solids vitrification.

The APGCC system offers significant advantages over standard integrated gasification combined cycle (IGCC). By applying the AP technology for gasifying the feedstock, the plasma heating system provides an independent and extremely powerful heating source at negative atmospheric pressure allowing the Gasifier system to be (1) fuel flexible, (2) with a high availability for base load power, (3) achieve higher efficiency, (4) provides lower O&M costs and its emissions from any system source meets the US EPA standards.

The AMFT Technology:

The AMFT Reactor employs the “Syn-Gas” which is derived from plasma torches which are used to to heat the flexible feedstock to 7,000 – 10,000 Degrees Fahrenheit , at a slightly negative atmospheric pressure. At this operating temperature, in the AMFT process the hydrocarbon material is depolymerized (molecular bonds broken) into carbon and hydrogen molecules by the plasma generated heat. The heavy metals, inorganic or non-hydrocarbon based material in the feedstock are simultaneously vitrified into an inert glassy slag, suitable for use as construction materials which include: rock wool (air cooled spun insulation), high quality man-made obsidian, abrasives, aggregate, ceramic tile, bricks and many other uses.

A large plant requires a cryogenic oxygen generation system.

The syngas must be cleaned of acids and particulate before it can be used as a gas turbine fuel. The residency time in the patented “off-gas” system decomposes dioxins and furans.
This cooling and clean-up process typically involves the efficient removal of any sulfur compounds, chlorides, mercury, other volatile metals, acid gas, and any particulate matter in order to reduce air pollution and to meet the gas turbine fuel specifications.
In the APGCC process, harmful pollutants from the feedstock, are removed from the syngas stream (pre-combustion). This process is significantly different from a standard coal fired power plant where the flue gas (post-combustion) is scrubbed. The acid gas is neutralized by simple fluxing methods which is mature technology. Heavy metals and other pollutants are locked up in a vitrified product during the cooling process. This vitrified product passes the Sodium Sulfate Leach Testing NVN 7347 (1992), ISO/DIS 6961, (ISO 10993-10) and or other testing methods. The vitrified product exceeds the standards set forth by the EPA Report to Congress 1999, Toxicity Characteristic Leachate Process (TCLP).

Because the pollutants are much more concentrated at its origin in the significantly smaller volume of the syngas stream than those cooled, diluted and expanded gases in the exhaust flue gas, the APGCC clean-up process is more efficient and has a significantly lower cost than the post-combustion clean-up as employed in typical coal fired steam-boiler plants.

More importantly, because of the APGV reactor’s much higher operating temperature, partially combusted short hydrocarbon chains, which typically form precursors to SVOCs (Semi Volatile Organic Compounds) such as dioxins and furans, undergo complete depolymerization into their elemental compounds, rendering the APGCC process practically free from tar, soot, or SVOCs.

THE EQUIPMENT: General Electric (GE) “LCV” Gas Turbines or equivalent.

GE pioneered the use of standard IGCC almost three decades ago and has developed a broad dedicated IGCC product line of gas turbines and matching steam turbines ranging from 10 to 300 MW. GE special “LCV” gas turbines are proven products with a total of 34 GE IGCC units sold. Of these, 22 units have accumulated over 380,000 hours of operation on syngas similar to that produced in this APGCC system.

Gas turbines for syngas generated by gasification processes have basic technical and functional requirements that are different from those of a gas turbine powered by natural gas. Therefore, syngas turbines must be modified with features that allow for both efficient and reliable syngas service. These syngas specific features relate primarily to the combustion and fuel systems, but also include some special fire protection, packaging, and controls modifications.

General Electric developed the low pressure turbine technology to operate within parameters of a system that derives power from renewable sources, such as Plasma Arc Tehnology, Inc., Solena Clean Fuel Technology, COSKATA, SASOL and other syngas systems. This equipment design of gas turbines can be efficiently integrated into a gasifier system to generate “least cost” electricity while at the same time meeting strict environmental regulatory requirements for air emissions.

The core of GE “LCV” syngas turbine design is based on combustion system adaptation and thorough laboratory testing. Combustors must be designed for a wide range of operating conditions with primary syngas, backup fuel, and possible co-firing of both fuels. The multiple can-annular syngas combustor design of GE gas turbines results in excellent flame stability and mixing properties that produce very low emissions. This design also makes it possible for this patented design APGCC plants to burn multiple fuels, including distillate, naphtha, syngas, methane or natural gas. APGCC plants can be designed for island countries or semi-developed regions where the Power Grid will not sustain the high load demand for startup. In addition, if feedstock interruption or quality becomes an issue, the turbines can be fired as a standard power generation station until the feedstock supply stabilizes.

The multi-fuel design is an important feature for startup on an island country or in undeveloped areas where short term grid power is not sufficient. It also provides the system with extra capacity and flexibility for projects in a situation where feedstock quality or availability may become inconsistent. Therefore, each APGCC system must be optimized with the Allied Plasma Energy Company (APEC) licensed, co-hort design to meet specific fuel type, build site, and environmental conditions. Important considerations in project design include but are not limited to project life, feedstock quality and quantity, off-take agreements based on the by-products produced and other factors. APEC reserves the right to design the project and recommend equipment and technologies that are the best fit for the property location, access to the type of available transportation and other variables which our engineers determine to be the best project fit.

Based on GE’s knowledge and experience gained from successful operation of many syngas combined cycle turbine units, this group will work closely with GE Power Systems on all of its projects to integrate in a cost effective and efficient manner GE syngas turbines with these APGCC systems.

GE, with over 380,000 hours of experience in operating syngas turbines, has concluded that a syngas-fueled combined cycle plant can have the same RAM (Reliability-Availability-Maintenance) performance as a natural gas-fueled combined cycle plant. Under the operations with syngas, GE reports similar air emissions as natural gas, even if coal is the feedstock of the gasifier.  

Because Allied provides a warranty with its system, Allied Plasma Project Specifications require equipment which has a manufacturer warranty. A long term maintenance service contract is factored into the amortization schedule to assure system reliability.

REPLACING ANTIQUATED COAL PROCESSING TECHNOLOGY:
ALLIED ENERGY SERVICES CORPORATION, its joint ventures, strategic partners, engineers and subsidiaries have studied the existing problems which face the conventional methods of coal mining. In review of recent changes with legislation, more particularly, the Revocation of Mining Permits for West Virginia and other mine operations, the suspension of the Army Corps of Engineers Rule 21, as defined in footnote (1) below, have intended to prohibit the spoiling slate, rock and other mine refuse, in the headwaters of small streams in the Appalachian Region.

Building Modern Plasma Processing Systems On Existing and Newly Permitted Mine Sites:
ALLIED ENERGY SERVICES CORPORATION has determined that by utilizing the “Next Generation” of coal processing equipment, being the Allied Plasma Arc Coal Processing Plant, (APP) run of mine coal can be fed into the plant. The APP will replace conventional coal washing and drying plants which have been the backbone of coal cleaning for the past 60 years. By using the Allied Plasma Arc Coal Processing plant, there is no need to separate the rock, slate, bone or other ash producing material from the coal feedstock.
More importantly, there is no slate or coal refuse to spoil on a permitted mine refuse dump. Using direct conversion, the run-of-mine coal is converted into marketable products which include Pure (H2O) Drinking Water, various coal to liquids distillates , Synthetic Diesel fuel or other marketable products.
As a point of interest, it is a well known fact that 44,000 products can be produced from coal. (See the KOPPERS Coal Tree Hardcopy Attached) and at web link:   
                                                                          URL= http://www.ustorp.com/coaltree20100423.pdf
By custom designing the plant to fit local needs, desires and customer specifications, a portion of the Syn-Gas can be used to power General Electric Turbine Generators. The direct coal conversion plant can efficiently produce electricity for the (PJM) Power Grid.
Utilization of Synthesis Gas :
In addition to operating the plant on its own power, off the grid, the “syn gas” can be reformed into valuable commodities on the same property. The effect creates ancillary businesses which may include products which are made from styrene plastics, plastic automotive parts and consumable goods which are produced by injection molding, toner cartridges, automotive tires and synthetic rubber components, chemicals which include explosives and products which are marketable to the military. This shortlist is not intended to be all-inclusive. However, it can be extrapolated that the landowner and or mineral owner can provide ancillary jobs and other value added goods and services from coal. By utilizing coal in the manner defined herein, it can be understood that the coal feedstock reaches its best and highest use, as opposed to simply burning it is a coal fired steam-boiler power plant. Efficient use of resources is an underpinning premise guiding the “Invisible Hand” of basic Adam Smith economics.   

Coal Feedstock:
Material which would normally be considered reject product will be fed into the gasifier in a homogenous blend as it comes from the drift, shaft or pit of the mines. This homogeneous material can be obtained by simple processing through a “Feeder-Breaker” at the belt head point where the raw coal leaves the mine section.  Care will be taken by the section employees to limit the ash
material. In as much as it is impossible to prevent clay, dirt or other material, including riders, slate stringers, top rock and bottom material from being included in the normal production of the coal seam in the course of the natural operation of the hardhead, long wall shear or other modern mining equipment, this material which is not steam coal is still acceptable in the feedstock.
The Allied Plasma Arc Coal Processing Plant is designed to process coal feedstock at a rate between 300 tons per day and 6,000 tons per day. Pursuant to needs of the community, the transportation infrastructure and availability of feedstock, Allied will custom design, finance, build, train employees and operate a direct coal conversion plant in close proximity to your coal mines.

PERMITTING:
Our engineers have obtained permits in several states in the United States. In light of the fact that there is no “smoke stack”, the regulations for a direct conversion plant are simple to obtain. Surface Water Run Off is the most stringent regulation which requires compliance.

EFFICIENCY: 
Building a direct conversion plant at the mine site, increases profitability for the coal mine owner. The coal is converted to electricity and transported from the mine location across existing power lines, according to the terms of a power purchase agreement. This eliminates the need to transport the “run of mine” coal to a washing plant, which decreases costs. There is no need for a permitted refuse dump, because the ash is converted to a marketable aggregate or ceramic product which can be shipped via truck or rail to markets which are available through existing “off take” agreements.
Likewise, the coal to liquids products which are converted to synthetic motor fuels find a market through existing “off take” agreements. These liquids can be piped, shipped by tank truck or rail cars. The mine property therefore becomes a small electrical power plant and chemical plant.

COST of CONSTRUCTION, OPERATION, MAINTENANCE:
Allied Energy will perform a site visit and evaluate the cost effectiveness of building a Direct Conversion Plant at your location. Information we require includes, GPS Location, Meets and Bounds of the Proposed Property, Ownership - Chain of Title, Proven Reserves available for the project.  Based in the information we gather from the initial meeting, Allied Plasma Energy Services Division engineers will execute a Feasibility Study to determine the Cost of Off-Take, Availability of Transportation and Cost Benefit Analysis / Projections for the 30 year life of the project. Allied will then negotiate land control and feedstock agreements, lease/purchase agreements and other agreements as necessary, with the mine owner. At its cost, Allied will provide project financing, engineering, materials, construction and manpower for the construction and operation of the Direct Coal Conversion Plant. The mining company will be under a long term contract to provide the coal feedstock, at a fair market price.
If ALLIED determines that the feedstock is available for the project life and the cost of transportation is in line with the project parameters, ALLIED will obtain project financing and build a project at its cost and will assume the necessary risks to build-out and operate a project.

EDITORIAL:
What does this do for the mining industry? In short, it saves the well paying jobs and down stream benefits that the mining industry is accustomed to and the benefits that the tax base so desperately needs to preserve.
It benefits the environment. There is no more acid mine drainage from slate dumps. It prevents the scramble to comply with SECTION 404 of the Army Corps of Engineers, Clean Water Mandates.
The initial study for the Allied Plasma Energy Corporation was performed in 2007 and evaluated waste coal, municipal solid waste, automotive tires, gob coal, mine refuse piles, defunct and abandoned chemical plant dumps and abandoned slate dumps. By reutilizing existing waste, all of these environmental issues can be solved by moving the carbon footprint forward into new products. Recycling existing waste through the Allied Plasma system would further clean up the environment, however, after evaluating the attack on the mining industry by the United States Environmental Protection Agency, placing small gasifiers at strategic mine sites provides another solution to the world demand on oil, provides jobs, cleans the environment and is an efficient alternative to the outdated way the coal industry processes and burns steam coal.

Disclaimer :
Within this document are references to various sovereign corporations and entities including but not limited to General Electric Corporation, Koppers, COSKATA, PJM, the US-EPA and others. Full faith and credit is given to the work, copyright and ownership of the information published by these entities. The information is incorporated herein for purposes of reference  and clarity. Reliance upon any information contained herein is cautioned by the publisher hereof. It is strongly recommended that the use of the information contained herein is properly analyzed by your experts and advisors who are capable of making determinations as to whether the information contained herein can be applied to your benefit. This document is a forward looking and is not a solicitation of any sort as defined under the “Safe Harbor Act”.
FOOTNOTE #1: The first proposal is to modify NWP 21 to prohibit its use in the Appalachian region. In the absence of NWP 21, an applicant would be required to obtain an individual permit for surface coal mining projects. An individual permit includes increased public and agency involvement in the permit review process, including an opportunity for public comment on individual projects.
The second proposal is to suspend NWP 21 while the Corps evaluates the comments received during the 30-day comment period, and while the Corps completes the process to modify NWP 21. If NWP 21 is suspended during this interim period, an applicant would be required to obtain an individual permit for surface coal mining projects. 
The Corps’ decision to issue these proposals is a result of the interagency action plan agreed to on June 11, 2009, as part of a Memorandum of Understanding signed by the Corps, the U.S. Department of the Interior, and the U.S. Environmental Protection Agency. The agencies agreed to work together to reduce the adverse environmental impacts of surface coal mining activities in the Appalachian region. A copy of the MOU is available at: http://www.usace.army.mil/CECW/Pages/moumoas.aspx. 
Environmental Technical Services Co., 834 Castle Ridge Rd., Austin, TX 78746
Revised July 13, 1995 URL= http://www.wetlands.com//regs/sec404fc.htm

Property of: Allied Energy Services Corporation , 10 Locust Avenue, Fairmont, West Virginia 26554                                              

Paul “Mike” Muncy, Chairman of the Board                                  Copyright: 11/19/2010
Published at: URL= http://www.ustorp.com/coalwhitepaper.html              
Edited and Revised: 01/19/2011

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