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INDUSTRY NEWS

NEW PLANT CONSTRUCTION NEWS

TECHNOLOGY/NEW PRODUCT NEWS

Many projects are detailed in monthly updates under Industry Analysis in this Report’s Chapters. Click on the links below to view information on these projects.

The market for pumps, valves, filters and chemicals for use in desalination will increase at near double digit rates from a 2012 level of $4.2 billion. This is the conclusion reached by the McIlvaine Company in aggregating forecasts in a number of its reports.

Treatment chemical cost averages 0.03 $/m³ of capacity in seawater, reverse osmosis (RO) systems and 0.02/ $/m³ in thermal systems. There is substantial use of scale inhibitors in thermal systems. Acids and antifoams are used in MSF systems. Cleaning chemicals are a substantial investment where RO is employed. The present desalination market is 70 million m³/day with a projection of 100 million m³/day by 2015. The present water chemicals market is $638 million per year rising to $912 million in 2015.

The amount of water being pumped in desalination systems is presently only about one percent of the amount being pumped for all the world’s drinking supplies. On the other hand, the high pressure pumps needed for reverse osmosis are an order of magnitude more expensive than those used for drinking water transport. So, of the $6 billion 2012 market for pumps for drinking water, $450 million is attributable to desalination. Of the $3.4 billion market for valves for drinking water, $250 million is attributable to desalination. This does not include the valves used for thermal treatment which add another $70 million.

Prefiltration for the reverse osmosis systems and initial purification of water which will be evaporated in thermal systems is accomplished with liquid macrofiltration and cartridges. Automatic back wash filters and sand filters are frequently used. Liquid wastes are dewatered in filter presses.

Cartridges are used to remove particles which are too small to be captured in liquid macrofiltration equipment but too large and plentiful to be handled by cross-flow membranes. There has been a high replacement frequency on cartridges.

An alternative to liquid macrofiltration is sedimentation. Clarifiers and dissolved air flotation systems are selected for a number of systems. The desalting takes place in either thermal systems where the water is evaporated or by separation with cross-flow membranes. Reverse osmosis does the final separation. Macro or ultrafilters are often used to pre-filter and protect the RO membranes. Source: McIlvaine Company

NanoH2O, Inc., manufacturer of the most efficient and cost effective reverse osmosis (RO) membranes for seawater desalination, today announced that it has closed a $40 million equity round and $20.5 million in credit facilities. NanoH2O's patented thin-film nanocomposite membrane technology can purify water from a broad range of sources, yielding higher productivity, better water quality or reduced energy consumption over traditional membranes.

BASF Venture Capital GmbH, Total Energy Ventures International and Keytone Ventures co-led the $40 million equity financing that included all of NanoH2O's existing investors including Khosla Ventures, Oak Investment Partners, CalPERS Clean Energy & Technology Fund represented by Capital Dynamics and PCG Clean Energy & Technology Fund. The $20.5 million in growth capital, working capital and equipment financing credit facilities were provided by Comerica Bank and Lighthouse Capital Partners, with the working capital line backed by the Export-Import Bank of the United States. The $40 million investment brings NanoH2O's total equity funding to $75 million, and total debt and equity funding to over $100 million, making the Company one of the most highly funded water technology companies in the industry. Proceeds from the equity offering will enable the Company to accelerate its growth, expand its manufacturing capabilities and broaden its product offerings. Source: Business Wire

Desalitech, Ltd., a provider of advanced water treatment solutions and technology, announced today that it has secured an equity investment led by Liberation Capital, LLC. The total investment round of $6.25M will be used for expanding Desalitech's business and working capital. Liberation will also be supporting Desalitech with considerable project finance capital.

Desalitech is commercializing next-generation Reverse Osmosis (RO) water treatment solutions. Its proprietary Closed Circuit Desalination (CCD(TM)) technology reduces cost by 20 percent or more. This is achieved by reducing energy consumption, reducing capital costs, improving process reliability and flexibility, and greatly reducing the emission of brine waste by raising recovery. The CCD process is uniquely capable of achieving high recoveries, even in problematic water sources, and this can change the economics of a water treatment project dramatically. These proven advantages make Desalitech's solutions superior alternatives for industrial and municipal water treatment and wastewater reuse applications, and for brackish and sea water desalination.

Desalitech has productized CCD technology as packaged-plant solutions for industrial and municipal water supply and wastewater treatment applications. Plants are available as capital equipment sales or as outsourced water treatment solutions. Comprised of industry-standard reverse osmosis membranes and equipment, the technology can be readily retrofitted into existing RO facilities. Desalitech also partners with leading suppliers of water treatment systems to deploy its CCD solutions. Source: Business Wire

The global residential water treatment (RWT) market is very dynamic; it generated revenues of over $9.0 billion in 2011. The RWT market varies by country and region. North America and Western Europe are mature markets, while Asia, Latin America and Eastern Europe are fast growing markets.

In 2011, some of the largest markets were Japan, U.S., China, Russia, India, Germany, France and South Korea. Most of these markets are dominated with local market participants and are very fragmented.

The South Korean market is expected to grow at a compound annual growth rate (CAGR) of over 6 percent through the forecast period. Several companies sell as well as rent out water treatment systems in South Korea. Several multinational companies are looking to enter the South Korean residential water treatment market. LG entered the market in 2009 and has already established a significant presence in the marketplace. Several companies use the direct selling method to sell water treatment systems and sell door to door. Some of the leading companies in South Korea include Woongjing Coway, Chungho Nais, Tong Yang Magic, and Kyowon L&C, among others. Point-of-use systems are highly popular in South Korea.

The Chinese residential water treatment market is expected to show tremendous growth with no signs of slowing down. Poor water quality, rising incomes and improved consumer awareness is driving the market in China. In 2011, the Chinese RWT market garnered revenues of over $1.5 billion. The market is expected to show a double digit growth rate through the forecast period. Some of the key players in the Chinese market include Midea Group, Pentair, Ecowater, Shenzhen ChengDeLai, Ningbo Qinyuan, Shenzhen Angel Drinking Water Industrial Group Corporation, Paragon Water Systems, Inc, and Litree. The sales of water treatment systems were the highest in Beijing, Shanghai, Guangzhou, and Suzhou. The Chinese residential water treatment market is getting highly competitive with several international companies entering the market. Most companies offer a diverse product line, like point-of entry, point-of-use and pitcher systems. Some of the key international players include AO Smith, Pentair, Ecowater, Culligan, BWT, Panasonic and 3M. Several new entrants are likely to enter the market through the forecast period.

The Indian residential water treatment market is also expected to show a double-digit growth rate through the forecast period. Historically, UV technology has been popular in India. However, with several new entrants, the market dynamics seem to be changing. Reverse osmosis technology has been gaining traction. Some of the dominant companies in India include Eureka Forbes, Kent, Hindustan Unilever, Ion Exchange, Whirlpool, Usha Brita and Alfaa. Most companies have started selling a diverse product portfolio catering to middle as well as low end consumers. Large multinationals, like LG and Panasonic, have also entered the Indian market and several new entrants are expected to enter the market through the forecast period.

The Russian market generated revenues of over $300 million in 2011. The Russian residential water treatment market is dominated by local participants. The popular technologies used for under the sink segment include carbon/multistage filtration, reverse osmosis and ultraviolet. Reverse osmosis is the dominant technology for under the sink systems in Russia. An estimated 50-60 percent of under the sink systems sold in 2011 were based on reverse osmosis technology. In counter top systems, carbon filtration is the popular technology in Russia. Key companies that play in the Russian market include Aquaphor Corporation, Mettem Technologies Ltd, The Geyser Company and Novaya Voda, among others.

The Brazilian market was the largest market in Latin America with estimated revenues of over $200 million in 2011. The Brazilian market is dominated with local companies like Lorenzetti S.A., Impac, Europa, and Hoken.

The Western European market was hit by the economic recession and showed slow growth. Point of entry systems and pitchers are highly popular in Western Europe. Key players in Western Europe include Brita and BWT, among others. Source: Market Watch

GE will display its advanced technologies, products and services that solve tough-to-treat water challenges at the world-leading IFAT ENTSORGA 2012 conference, May 7-11, 2012 in Munich, Germany. During the trade show, GE will showcase its broad portfolio leveraging equipment, chemistries and services to help commercial and industrial customers address their pressing water resource needs.

GE’s ZeeWeed hollow-fiber membrane technology for ultrafiltration offers low life-cycle costs for water filtration, wastewater treatment and reuse. Ideally suited for municipal and industrial drinking water, tertiary and water reuse applications; ZeeWeed technology extends the life of reverse osmosis (RO) systems, significantly reduces biological fouling and decreases cleaning intervals and system power consumption.

Membrane Bioreactor (MBR) – MBR is for virtually all wastewater treatment applications. MBR systems offer extremely compact footprints, simplified operation and consistently higher quality effluent than conventional wastewater treatment systems.

GE’s LEAPmbr product line, GE’s next-generation MBR wastewater treatment technology, addresses water quality and operational cost issues faced by owners of municipal, industrial and residential wastewater treatment facilities worldwide. LEAPmbr technology offers the lowest life-cycle costs available from any MBR technology, yet is cost-competitive with conventional water treatment alternatives.

Electrodeionization (EDI) – Reliable, low-cost ultrapure water (up to 18MOhm-cm resistivity) for multiple applications, such as power generation (boiler feed and NOx control), semiconductors, microelectronics, etc.

GE has the world’s largest and most capable fleet of mobile water systems. With a mobile trailer on-site at the fairgrounds atrium A2/A3-B2/B3, GE will showcase its mobile water capabilities, which offer 24-hour dispatch of water treatment equipment and the ability to react quickly to certain situations to prevent production losses, avoid capital investment and to meet regulatory requirements.

General Motors is pioneering several environmental practices in its construction of a new engine plant in Joinville in southern Brazil. These sustainable features are expected to accredit the plant for Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council.

The sustainable initiatives include the first solar energy system in the Brazilian automotive industry. The facility will be the first to introduce a water recycling process using reverse osmosis and employ a new way of treating sewage and wastewater by a wetland process. It will also be the first GM landfill-free plant in the country.

"We are one of the first companies in Brazil to push environmental innovation into the manufacturing space," said Grace Lieblein, president of GM do Brasil. "Sustainability is in the DNA of our company, and we are incorporating environmental features into our facilities from the ground up."

Sustainable features include:

• Solar energy to power the plant’s lighting on the manufacturing floors and administrative offices – an amount equal to the energy consumption of 285 Brazilian homes. It will avoid 10 tons of CO₂ emissions annually.
• Solar energy to heat 15,000 liters of water per year – equal to the consumption of 750 people. The system will reduce natural gas costs and avoid 17.6 tons of CO₂ emissions annually.
• Reverse osmosis, a membrane technology filtration system, to produce purified water for drinking and industrial purposes – enough to supply all the tap water used in the plant, saving 22 million liters of water per year.
• Sewage treatment with filtering gardens instead of chemicals, saving electricity and avoiding 3.6 tons of CO₂ per year. The gardens are integrated into the landscape and use vegetation adapted to the site.
• Water conservation through use of rainwater to flush toilets and installing low-flow, sensor-based faucets.
• Waste reduction through use of local materials, certified wood and recycled content in the construction of the facility. The site will recycle and compost food waste.
• Biodiversity through the planting of 720 native trees on the property.

If successful in securing LEED status, it will join GM’s Lansing Delta Township assembly plant in Michigan and its China Headquarters in Shanghai in earning the distinction.

The engine plant will be operating by the end of 2012. GM also is building a transmission plant with similar green innovations in the same industrial complex slated for production in 2014. GM is investing more than 1 billion BRL ($513 million) in the construction of the two plants.

The New South Wales state government in Australia accepted on 10 May 2012 a binding offer for refinancing the Sydney Desalination Plant (SDP) from a consortium of Ontario Teachers' Pension Plan (OTPP) and Hastings Funds Management.

The successful bid values the 250,000 m³/d seawater reverse-osmosis plant at US$2.3 billion over 50 years. As Sydney Water owes US$2 billion for the plant's construction by a Veolia-led consortium, it will only receive US$300,000.

OTTP Infrastructure Group currently manages an international portfolio of approximately US$ 11 billion, including water and wastewater, electricity distribution, airports, power generation, high-speed rail, port facilities and timberland.

The Hastings input comes from two managed infrastructure equity funds: Utilities Trust of Australia (UTA) and The Infrastructure Fund (TIF). UTA has investments in South East Water in the UK and TIF in Ballarat Water in Victoria, Australia.

"SDP is a high-quality infrastructure asset ideally suited to our investment criteria and will help to pay benefits to our members for decades," said Stephen Dowd, OTTP's senior vice-president, infrastructure and timberland. SDP would provide stable inflation-protected returns through its fair and transparent regulatory regime and contractual framework, he said.

Hastings pronounced itself pleased to have secured the asset given its attractive yield and low-risk investment characteristics.

"SDP is a core infrastructure investment and represents exactly the type of quality asset we are seeking to add to our investment portfolios. The investment is expected to provide strong, inflation-linked earnings and operates in a secure, regulated environment with strong contractual protections," said Hastings CEO Andrew Day.

"This was a high priority transaction for our funds, UTA and TIF, and we expect the acquisition will enhance the balance sheets of both funds' portfolios while generating solid returns with low volatility. SDP is a quality investment that will have long-term benefits for our investors," Day said. UTA and TIF have committed a combined US$374.2 million to the transaction.

Patong Municipality has announced a plan to build a 300-million-baht reverse-osmosis (RO) water treatment plant to increase municipal water supply and cut down on the volume of wastewater released into Patong Bay, on Phuket’s west coast.

Although still in the initial study stages, a decision to provide Bangkok-based firm ITR Water Solution Co Ltd with 800sqm of municipal land to construct the plant was agreed to at the last Patong Municipality budget meeting held earlier this month.

The land, behind the existing wastewater treatment plant on Rat-U-Thit 200 Pi Road, will be consigned to ITR under the terms of a 30-year "build-operate-transfer" agreement if the project gains final approval.

The land, as well as the plant, would revert back to municipal ownership after the 30-year agreement expires.

The plant would treat wastewater to the same quality standards as that supplied by the Provincial Water Authority (PWA). The company would then sell the treated water to the municipality at an agreed rate, one lower than that that charged by the PWA.

Mayor Pian said the project was a "win-win" proposal because the plant would increase municipal supplies while reducing the amount of wastewater discharging into Patong Bay.

Citing Interior Ministry regulations issued in 2000, he said the municipality was authorized to approve such a "public benefit" project without an open bidding process.

He assured fellow council members that ITR had all the funding and technical expertise and experience needed to build and operate the plant.

"However, the project is still just in the first step, it needs to be studied further by a technical consultant," Mayor Pian said.

When completed, the plant would be able to produce 15,000 to 20,000 cubic meters of "high-quality" water for the municipality, he said.

NanoH2O Inc has launched the Qfx SW 400 R and Qfx SW 400 SR, part of its QuantumFlux line of reverse osmosis (RO) membranes, which feature 99.85 percent stabilised salt rejection and NSF Standard 61 Certification, enabling operators to meet stringent water quality standards.

In tests, the elements produced improved permeate quality when compared to competitive membranes with the same flux. When used in combination with NanoH2O’s highest flux Qfx SW 400 ES membrane, the new Qfx SW 400 SR and Qfx SW 400 R high-rejection membranes allow users to run at higher system flux without increasing feed pressure or fouling potential, while still delivering improved permeate quality.

The company has been pilot testing a combination of the Qfx high rejection R and SR elements, in 365 ft2 configurations, within a single pressure vessel for almost 180 days. The Qfx membranes have produced almost 50 percent more water with lower total dissolved solids (TDS), at the same operating pressure, than other membranes currently installed in the skid.

"This improvement in salt rejection over existing membranes typically provides a 25 percent improvement in permeate quality versus competing membranes under the same operating conditions," said Jeff Green, chief executive officer of NanoH2O, Inc.

Atlantium Technologies Ltd. today announced that data from a long-term field study confirms that water - after being dechlorinated by its UV (Ultra Violet) light system - prevents Reverse-Osmosis Membranes from aging.

Atlantium scientists farmed data from one of their UV systems, set up in a pharmaceutical plant water line for dechlorination purposes, to evaluate the effect of UV-dechlorinated water on RO membrane performance.

Daily recorded electronic data over a period of 320 days confirmed the findings of earlier lab trials: the membranes functioned as well on day 320 as they did on day 1, showing that Atlantium-treated water did not cause degeneration of RO Membranes.

Long-term results show that dechlorinating water with Atlantium UV protects RO membranes, with the probable potential of reducing membrane cleaning frequency and replacement due to the dual effect and benefits of high level disinfection that happens at the same time," said Ori Demb, who heads Atlantium’s Bio-Pharma segment. "Atlantium will continue to invest in resources that help our clients achieve their objectives while reducing maintenance burdens and operating costs."

These results provide additional incentive to switch from chemical dechlorination to UV dechlorination. Chemical dechlorination typically allows membrane-fouling-microbes to proliferate, whereas UV light provides high-level disinfection at the same time as dechlorination, and therefore inactivates all microorganisms that bio-foul RO membranes. Source: Atlantium Technologies Ltd.

Kamalesh Sirkar, a New Jersey Institute of Technology (N.J.I.T.) distinguished professor of chemical engineering, says he has devised a direct-contact membrane distillation (DCMD) system that can efficiently wring drinking water out of up to 20 percent-salt-concentrated brine. (After about 25 percent, salt precipitates out of the solution in the membrane distillation system and could damage the membranes, pumps, lines and other components, Sirkar says.)

Normal seawater has a salt concentration of about 3.5 percent, which means the new system can reprocess the same seawater several times. "More water can be recovered with less residue", Sirkar says.

In Sirkar's system, heated seawater flows across a membrane strung with a series of hollow tubes made of a porous, yet hydrophobic, fiber—meaning only water vapor can be osmotically transferred. Cold distillate water runs through each of the tubes in a direction perpendicular to that of the seawater. The temperature difference between the heated seawater and cold distillate water causes vapor to form on the tubes. This vapor diffuses through the pores and condenses again inside the tubes, joining the flow of cold distillate water. The salt cannot penetrate the tubes and is carried away; with each cycle, more fresh water is drawn off, leaving more highly concentrated brine behind.

Sirkar's recently patented system can deliver about 80 liters of drinking water per 100 liters of seawater, he says. A comparable reverse-osmosis system—which relies on pressure to force seawater through a salt-filtering membrane—would reclaim 41 liters from that same amount of saltwater, according to Sirkar.

Membrane distillation's advantages include its ability to produce drinking water with very low salinity. In addition, seawater can be distilled at a range of temperatures—from 30 to 100 degrees Celsius—reducing the amount of heat typically needed for desalination, an energy savings, Sirkar says. Prolonged use may decrease a typical membrane's efficiency, but Sirkar says his system adds an ultrathin layer of a highly porous silicone–fluoropolymer coating to extend membrane lifetime. Fluoropolymer—a polymer that contains fluorine atoms—has a high resistance to the solvents, acids and bases found in ocean water. As for the environmental impact of desalination, Sirkar says dumping concentrated brine back into the sea creates a "minimal" disturbance to sea life. He adds, "Seawater is a very large volume with enough turbulence to dilute [the brine] very quickly."

That's not to say membrane distillation is without problems. It requires a steady, inexpensive source of heat to prevent the temperatures of the water on either side of the membrane from equalizing, which would impede the vaporization/condensation process. For DCMD to be practical it needs to be easier to use, more cost-effective and able to take advantage of available heat sources, including waste heat produced by places such as shore-based factories and offshore drilling operations, Sirkar says.

Scientists at Yale University have recently published an analysis of a novel process for generating power in the American Chemical Society’s journal Environmental Science and Technology. They suggest that it could provide power for half a billion people just by taking advantage of the mixing of fresh river water as it flows into the salty sea at the river’s mouth.

To understand this new energy source, you’ll need to recall high school science lessons on osmosis: if two solutions are divided by a semi-permeable membrane, the less concentrated liquid will move into the more concentrated liquid until the two form an equilibrium. This is how plants draw water from the soil, and why potatoes shrink when they are boiled in salt water.

The same process occurs when freshwater from rivers empties into salty oceans. The river water is evenly distributed into the sea. If a semi-permeable membrane could be situated amidst the mixing, however, the energy associated with that exchange could be harnessed. And unlike with solar and wind power, which are intermittent sources, the power would flow all day and all night.

Researchers first struck upon this hypothesis in the 1970s, but their ideas exceeded the technological capacities of the time; a membrane the size of a college campus would be needed to harness energy of any value. In past years, technological advances allowed labs and companies to begin designing economically viable membranes with a greater energy-harnessing efficiency, reigniting the field.

"If you have freshwater on one side and salty seawater on the other side with a membrane in between, because of the chemical potential between them, the water will flow from the fresh to the sea water side," said Menachem Elimelech, a professor of environmental and chemical engineering at Yale University who co-authored the paper. "We convert osmosis into mechanical work to create energy," he said.

Pressure-retarded osmosis relies upon pressure from the osmotic flow to push the river water through specially designed membranes that spin a turbine generator and produces electricity. The system can be thought of as a reverse of the way water desalination plants work, since the energy of mixing is equivalent to that of separation.

In 2009, Norway built the first prototype pressure-retarded osmosis power station. Norway’s plant demonstrated that the system could produce electricity, and since then the membrane technology has improved to become more economical and efficient. "In our lab, we produce small scale membranes," Elimelech said. "In principle, someone can upscale the membranes into a larger system relatively easily." He predicts a marketable system will be available in two or three years.

Because rivers flow continuously into the ocean, pressure-retarded osmosis would yield a constant source of electricity. The researchers calculated that about 157 gigawatts of renewable power could be harnessed by channeling only a tenth of the world’s river water discharge, taking into account losses and inefficiencies. That figure is the equivalent electrical consumption of 520 million people based on the average global electricity use of about 300 watts per capita, according to the study. Producing the same amount of electricity through coal-fired power plants would release over a billion metric tons of greenhouse gases each year. And unlike, renewables that are located far from population areas, large cities are often situated around rivers mouths such as the Mississippi and Hudson rivers.

Many challenges remain, such as designing a system that prevents membranes from becoming clogged with dissolved organic material contained in the river water. Environmental factors must also be taken into account. Engineers would need to locate plants away from sensitive areas, like estuaries, and take into account potential disruption of the water’s natural flow. With proper environmental assessments and planning, though, Elimelech thinks the system can be a viable source of alternative power.

The best way to overcome our water deficit, make some of that undrinkable H20 drinkable. The conventional methods for extracting the salt from seawater—evaporation ponds (like those above) and reverse osmosis plants—are both time-consuming and energy-intensive. These technologies were eclipsed last year when a Stanford Research team discovered it could cycle salt and fresh water through an electrochemical cell. And if you run the same system in reverse—that is, pumping electricity in rather than out—you can extract semi-fresh water at a fraction of the cost of conventional means

The Stanford Study discovered that the salinity difference between seawater and river water can be leveraged as a huge, renewable source of energy—if they can efficiently extract that potential energy. To do so, the team devised and fabricated a "mixing entropy battery."

Here we demonstrate a device called "mixing entropy battery", which can extract [the potential energy] and store it as useful electrochemical energy. The battery, containing a Na2−xMn5O10 nanorod electrode, was shown to extract energy from real seawater and river water and can be applied to a variety of salt waters. We demonstrated energy extraction efficiencies of up to 74 percent. Considering the flow rate of river water into oceans as the limiting factor, the renewable energy production could potentially reach 2 TW, or 13 percent of the current world energy consumption.

Basically, you take an electrochemical cell with a cathode made of silver and an anode made of manganese oxide nanorods. If you add some salt water to the cell and apply a current, that will attract and trap chlorine ions to the cathode and sodium ions (salt) to the anode. The desalinated water is then flushed from the system, more salt water is pumped in, and the current is stopped so that the chlorine and sodium ions slough off the electrodes, into the new batch water. This super-salty water is then disposed of as waste—presumably into the ocean—and the system is reset for the next round of desalinization.

Sionix Corporation, a designer of patented water treatment systems, announced today the update on the deployment of their Mobile Water Treatment System that has been customized for McFall Inc., for the treatment of drilling fluids from E&P operations in the Williston Basin of North Dakota. Jim Currier, Sionix Chief Executive Officer, commented, "We have been assigned a drilling rig by McFall, and we are waiting for a drilling site to become available to us. During this time, we have located our equipment at a staging area, where the treatment configuration has been completely wet tested, and is available to deploy as soon as we receive McFall's notification."

Treatment operations are expected to commence within 24 - 48 hours after deployment. As soon as the MWTS has been deployed to a drilling site, Sionix will make another announcement.

Indiana Gasification today welcomes the decision by the Indiana Department of Environmental Management (IDEM) to file a proposed permit for our company's state-of-the-art plant with the U.S. Environmental Protection Agency (EPA).

"For Indiana, its energy future is now. The IDEM proposed permit demonstrates that our gasification facility will be the cleanest coal plant ever permitted in the United States and among the cleanest in the world," said Bill Rosenberg, a partner in Indiana Gasification and former Assistant Administrator for Air for EPA. "Our facility will create more than 3,000 jobs (including about 1,000 plant construction jobs, 2,000 jobs to construct an interstate CO₂ pipeline, and 500 on-going jobs from plant operation and mining), enhance the nation's energy security, and reduce this nation's carbon footprint. Equally important, this facility demonstrates that clean coal remains an integral part of the 'all-of-the-above' approach to domestic energy production endorsed earlier this year by President Obama and numerous energy experts," Rosenberg added.

The IG plant will not burn coal. Rather, the gasification process will convert approximately 10,000 tons per day of coal into substitute natural gas (SNG) and liquefied carbon dioxide (CO₂). About 80 percent of the plant's SNG output will be sold to the Indiana Finance Authority under an agreement that guarantees Indiana ratepayers savings of at least $100 million over 30 years. The 38 million mmBtu of SNG sold to the IFA is about 17 percent of the gas used by Indiana gas consumers and will be an effective buffer against the historic price volatility of the natural gas market.

CO₂ generated by the production process will be compressed, sold and shipped from Indiana to the Gulf Coast and injected into depleted oil wells for enhanced oil production. This enhanced oil recovery effort will produce from 10 to 20 million barrels of oil annually. At $100 per barrel of oil, the domestic oil production created by our facility in Indiana will reduce our imports of foreign oil, including oil from the Middle East and from unstable countries such as Venezuela, by up to $2 billion a year.

The facility has been strongly supported by parties looking out for the long-term energy and environmental future of the state, which is served by producing stable, long-term, clean energy in Indiana with local workforce and resources. The partners in IG believe that coal can and must be part of our energy future. The United States has 28 percent of the world's coal reserves, just 2 percent of the oil reserves and only 4 percent of natural gas. The IG facility is proof that clean coal is feasible, available and affordable.

Moreover, the permitted emissions limits for the IG facility prove that such a project is safe and protective of Indiana air quality. For example, Vectren, a southern Indiana utility, operates three coal-burning plants that in 2009 and 2010 used roughly the same amount of coal that will be refined by IG. Vectren's plants released 9,400 tons of SO₂ a year. IG's limit is 100 tons of SO₂ annually. The permit proposed by IDEM today is an important step toward the future of advanced technology, energy independence, and local job creation.

"The IG facility will increase the use of our domestic resources, and we look forward to moving forward with a project that is good for Indiana--and the nation," Rosenberg said.

Construction on this state-of-the-art facility will not begin until after IDEM approves the environmental permits. If all goes as planned, construction will begin in 2013.

To view IDEM's proposed permit, please visit: http://permits.air.idem.in.gov/30464p.pdf

Indiana Gasification LLC FACT SHEET: INDIANA GASIFICATION, LLC Detailed Highlights from the Air and Water Permit Applications May 2012

Feedstock - At design, annual usage of approx. 3.85 million tons of Illinois Basin coal, with the possibility of substituting a portion of this with petroleum coke.

Annual Substitute Natural Gas (SNG) Production - Approximately 47 million MMBtu (about 38 million MMBtu will be sold to the Indiana Finance Authority, equivalent to approximately 17 percent of the amount used by residential and commercial customers in Indiana)

Annual Liquefied Carbon Dioxide (CO₂) Production - approximately 5.5 million tons, will be sold for use in enhanced oil recovery operations in the Gulf Coast Region (estimated to help produce 10,000,000 to 20,000,000 barrels per year of additional domestic oil).[1]

Emissions Performance Highlights - As a result of using gasification technology and state-of-the-art controls, permitted emissions will be extremely low (in tons per year):

• NO_x 127
• CO 634
• VOC 16
• SO₂ 100
• PM 1067
• HAPs 19

In contrast, a typical coal-fired power plant will emit at significantly higher rates. For example, the Vectren coal electric fleet of three facilities in this region burned an amount of coal in 2009 and 2010 equal to approximately 80 percent annually of the amount of coal that will be processed by Indiana Gasification. Vectren's plants released 9,400 tons of SO₂ annually. Indiana Gasification has requested a permit limit of approximately 100 tons of SO₂ annually.

The Indiana Gasification facility will also emit significantly less amounts of lead and mercury than comparable facilities. The proposed permit for the Indiana Gasification facility allows for approximately ten times less lead emissions than nearby traditional coal-fired power plants and half as much lead emissions than comparable IGCC facilities on a per ton of coal basis. As for mercury, the proposed permit for the Indiana Gasification facility allows for approximately seventy times less mercury emissions than nearby traditional coal-fired power plants and three times less mercury emissions than comparable IGCC facilities on a per ton of coal basis. This means that less than 4 lbs./year of mercury will be emitted from the facility.

The Indiana Department of Environmental Management (IDEM) has submitted a proposed permit to the U.S. Environmental Protection Agency ("EPA") for review, including IDEM's response to the comments received from the EPA and the public on IDEM's draft Clean Air Act construction and operating permit. IDEM previously published the draft permit for public comment, and held a public meeting and hearing on January 25, 2012.

The water permit application provides for water to come from the Ohio River. Average usage equates to approximately 0.2 percent of river flow at low flow conditions. No water will come from area aquifers.

The facility will collect stormwater that falls on various areas of the plant for use in the process, which will result in both reducing water usage from the Ohio River and reducing the potential for discharge of coal contaminated stormwater.

The facility will filter and reuse the majority of the wastewater coming from the gasification process, with the residual evaporated. There will be no discharge of gasification process wastewaters.

Water discharges will include stormwater and non-process waters from the cooling towers, boiler, and reverse osmosis systems. Discharges will meet effluent requirements of wastewater discharge regulations.

Sulfur in the feedstock will be processed into sulfuric acid, which Indiana Gasification will sell into the industrial market.

Heat generated during the gasification process will be used to produce steam for steam turbines that can produce approximately 300 MW to meet essentially all on-site power needs, with utility interconnection for minor power balancing.

Aqua-Chem, Inc., the leader in global water solutions, has designed, manufactured, and sold its newest pharmaceutical vapor compression distillation unit capable of producing 6,000 gallons per hour for water-for-injection.

Aqua-Chem equipment has produced high-quality water for pharmaceutical and biotech applications, and the new Vapor Compression Distillation unit "PR 6000" is the largest in the family of Vapor Compression units offered by Aqua-Chem, which also includes the PR 600 and PR 2500 Vapor Compression units. "We continually strive to innovate and advance our technology, and the development of the PR 6000, which is capable of producing 6000 gallons of pure water per hour, is consistent with our efforts to deliver high-quality custom applications for our clients that suits their needs," said Aqua-Chem President and CEO David Gensterblum.

Aqua-Chem has already supplied several units for operation in the international pharmaceutical and bioscience market place. Additionally, we have two more units that have been sold to another major international biotech company and are in the process of being installed. "We have been very pleased with the demand for the new VC unit. Our clients find that this unit offers a new solution to their pure water needs at the volume that can handle their capacity," added Gensterblum.

The PR 6000 Vapor Compression Unit produces large volumes of high purity water that is consistent and reliable for water-for-injection for parenteral solutions, cell culture growth, vaccines and other critical applications. The patented Spray-Film evaporator design provides a variety of qualities that make it unique and reliable, such as the dual and single compressor design and the direct drive low speed compressor. In addition, the PR-6000 has built-in on-line cleaning that reduces maintenance costs and increases operating life. The design is improved to enhance safety and provides easy access from the floor level with the compressor pumps located at the edge of the skid for easy serviceability.

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