Families Against Cancer & Toxics

At 11:50 AM -0700 1/14/05, Hamilton, L.H. wrote:
>Terry,
>
>I have been out of the office for a couple of days so I hope you got
>Brenda's voice mail/message.
>
>GER did meet the deadline for their initial response. I had told you I
>found their response to be not altogether satisfactory and gave them an
>appropriate amount of time to clarify their position and provide
>additional data. They chose not to. This response has been forwarded
>to the county administrator, chair of the Rate Review and Advisory Board
>and to Mr. Basner.
>
>L H Hamilton
>
>-----Original Message-----
>From: McGuire, Paul (GE Energy) [mailto:paul.mcguire@ps.ge.com]
>Sent: Thursday, December 23, 2004 3:59 PM
>To: Hamilton, L.H.
>Subject: Few Changes
>
>LH,
>
>
>I changed 8 and 9 to include an option to incorporate the issues in the
>final agreement. I also added to 21 the fact that Dr.Kazanchain was a
>victim of identity theft.
>
> <>
>
>GE Energy
>__________________________________________
>
>Paul McGuire
>520-850-3240



Cochise County Waste To Energy Project

• Question #1- Does GERI have a comprehensive project description for this facility?

It has been recognized that it would be advantageous to devise a method that reduces emissions and is highly efficient while converting solid waste into energy. The present process is directed toward such a method. The method includes the steps of preprocessing a solid waste feedstock for reduction of particle size and moisture content to obtain a substantially dry-micronized feedstock. An additional step comprises heating the substantially dry-micronized feedstock through a pyrolysis or gasification system to generate a reaction to convert the substantially dry-micronized feedstock to synethic gases and char solids. The resultant char solids manifest a higher carbon content than the original feedstock. In a successive step, the char solids are introduced to a plasma arc system where the char solids are converted to a usable syngas and inert slag. The syngas is further cleaned to remove chlorine, halogens, tars and furans and processed into energy or commercially viable products.
The present process is also directed towards a system for implementing a highly efficient solid waste conversion method coupled with reduced emissions. The system utilizes several stations and chambers to provide a high efficiency and low emissions system. The system of the present invention includes a preprocessing station to pulverize and dehydrate the solid waste feedstock to reduce the particle size and moisture content in order to obtain a substantially dry-micronized feedstock. In addition, a reaction chamber for receiving and heating the substantially dry-micronized feedstock to generate a reaction that produces syngases and char solids is provided. The chamber is coupled with a plasma arc reaction chamber for receiving and processing the char solids through a plasma arc process. An energy converter can be coupled to the plasma reaction chamber for processing the syngases for further energy production. Furthermore, the system can include a product processing station to recover commercially viable products. "Plasma Gasification" is not the same process as incineration. The plasma gasification system does not” burn" the waste. Incineration is the burning of carbon based (organic) material in an oxygen-rich environment, much the same as burning wood in a wood stove. Organic matter contains energy. The burning process requires a large amount of oxygen (O2). The carbon contained in the organic matter reacts with the oxygen to form carbon dioxide (CO2) and water (H2O). The combustion is highly exothermic and releases the energy in the organic material in the form of heat. The combustion of the carbon-based material is incomplete, leaving ash, tar and char that contain heavy metals and toxic substances requiring it to be sent to a special landfill. Non-carbon based (inorganic) materials such as metal, glass, soil, concrete, silica, etc. are not affected by the burning process and become part of the ash. The total unburned material left over can be as high as 30% by weight. Incineration results in high levels of tars, furans, NOx, dioxins and sulfur dioxide, which are expensive to clean from the exhaust.
Plasma Gasification is not incineration and it does not burn the waste. It is the transformation of carbon-based material in an oxygen-starved environment using an external high heat source (plasma) to produce a fuel gas (also called a syngas) that can be used in other applications. Even though the temperatures are much higher than with incineration, the organic material does not burn because there is not enough oxygen. The process controls the amount of oxygen and allows only enough oxygen to form carbon monoxide. The organic matter is transformed to a fuel gas composed of carbon monoxide (CO) and hydrogen (H2). Only a small amount of energy is released when the carbon and oxygen molecules combine. The carbon monoxide still contains substantial chemical energy and can be used in a variety of ways. The high temperatures of the Plasma Gasification process melt metals, glass, silica, soil, etc., which flow out of the bottom of the reactor. The metals are recycled and the other inorganic materials become vitrified (molten) glass. Because of the high temperatures and lack of oxygen there are no tars, dioxins or furans and NOx and Sox are much lower. The net result is that all the waste is converted to salable products.
See diagram below.

• Question #2: Specifically, what technology does the company propose to use?

This facility has to be engineered and then when the specifications for the equipment are complete we will prepare a RFQ and obtain bids. The process will consist of material separation and preparation, pyrolysis, plasma, gas cleanup system, generators and a biodiesel plant.

• Question #3: As there are no commercial plasma arc facilities for solid waste in the United States? What facilities does GERI model this project on?

Most of the commercial facilities are outside the US because there has been more activity in Japan and Europe because landfills are no longer an option.. These plants are based on Westinghouse plasma system. Westinghouse has a demonstration plant in Madison, Pa, which can be visited. The GERI system is model after Thermoselect system where both low temperature and high temperature sections are utilized. The difference is how this is achieved. GERI uses separate devices to achieve the low and high temperature sections. The facility would have no emissions except those emissions from the generators. We have reviewed the generator emissions with ADEQ and we could install up to 11 MW of generation and be within the AZ limits. The limits are 100 tons/year. We would use an oxidation catalyst to reduce CO by 70%.
The emissions are as follows for 1x724 KW unit:

bhp 1027.6
kWel 742
0
NOx mg/m3 175
g/bhp.hr 0.42
ppm (15%O2) 32.2
lbs/hr 1.358898
tons/yr 5.953556
0
CO mg/m3 700
g/bhp.hr 1.75
ppm (15%O2) 252
lbs/hr 5.662076
tons/yr 24.80648
0
NMHC mg/m3 136.5
g/bhp.hr 0.301
ppm (15%O2) 37.8
0
NMNEHC mg/m3 80.5
g/bhp.hr 0.175
ppm (15%O2) 14.7
0
PM10 mg/m3 2.66
g/bhp.hr 0.007
lbs/hr 0.022648

Question #4: Is there any other technical data the company can provide now to backup their claim of no hazardous emissions?

In order to use the syngas produced in a GE Jenbacher engine the gas has to meet specific quality requirements. The syngas cleanup system used at the Thermoselect facilities in Italy and Japan using MSW as feedstock has successfully cleaned the gas to the engine specification.
If the synthesis gas from a THERMOSELECT facility is used for the synthesis of chemical products or is passed on to a power station, the THERMOSELECT process works with zero emissions. If own power production is integrated in a THERMOSELECT facility, the emission values are far below the most stringent European limiting values. Combining high temperature gasification, direct fusion and shock cooling, not only the formation of organic substances such as dioxins and furans is prevented, but the harmful substances contained in the waste are also completely destroyed.
The emission concentrations of the THERMOSELECT facility in Karlsruhe equipped with a steam turbine power station lie at least a factor of 5 below the statutory values. For the current emission values of the Karlsruhe facility: www.thermoselect-karlsruhe.de


Question #5: Without a project description, how can a contract be signed between the county and GERI before such information is presented and properly evaluated in a full public review and permit process?

GERI is asking the county to sign a letter of intent whereby, the county can identify those issues like permitting, involvement in the design review, no radioactive waste, etc. that they wish to have incorporated into the LOI or the operating agreement. Based on the LOI, the parameters of this project are defined. Per ADEQ there is no requirement for a public hearing. GERI will have to submit a certified gas analysis to ADEQ prior to a permit being issued for this project.

Question #6: What financial obligations are being discussed between the county and company? What type of contract might be signed, including the
length of the contract and financial obligations and liabilities for
the county and other local jurisdictions.

There are no financial obligations for the county or any local jurisdiction. The only requirement is to supply the MSW.


Question #7: The Interstate Commerce Clause states that a government entity such as a county cannot dictate to a privately owned business such as the owner of a plasma converter regarding whether they get their "product" such as waste from the local area or out-of-state. Cochise County does not want Global Energy Resources to import waste from other counties and states. Global Energy Resources will make more profit if they do import waste. What agreements will you make to prevent the importation of waste from outside Cochise County?

The facility will be designed to handle waste from Cochise County and there is no intent to go outside the state. This can be made part of the LOI.

Question #8: Will Global Energy Resources accept hazardous waste at this plasma converter?

GERI does not plan on processing hazardous waste. Hazardous waste processing requires a special permit. Make this part of the LOI or include in the final agreement.

Question #9: Will Global Energy Resources accept low-level radioactive waste at this plasma converter?

GERI will not process low-level radioactive materials. Make it part of the LOI or include in the final agreement..

Question #10: Global Energy Resources is asking Cochise County to agree to
guarantee a waste stream of 100,000 tons of municipal solid waste per
year for twenty years. Cochise County currently produces 79,000 tons
per year. Mr. LH Hamilton told Terry Nordbrock of FACT that three
years ago Cochise County produced 73,000 tons. At this rate Cochise
County will produce 100,000 tons of MSW in 2012. The plasma generator
is expected to take 18 months to build, which could be in place as
early as 2006. Will you accept a contract with a minimum guaranteed
waste stream of 70,000 tons of municipal solid waste per year?

GERI wants a commitment from Cochise County that they will send all of the county’s MSW to the processing facility. We want to make the facility open to all waste in the county.

Question #11: Global Energy Resources is asking Cochise County to agree to
guarantee a waste stream of 100,000 tires per year for twenty years.
Cochise County does not produce 100,000 tires per year. Will you accept a contract with a guaranteed waste stream of tires that is based on the actual current amount?

See the answer to question 10. This would also apply to tires.

Question #12: The Department of Defense will announce in Spring 2005 its decision on the Base Realignment and Closures (BRAC). It is anticipated that Fort Huachuca will stay open, and grow as it absorbs missions from other bases selected for closure. However, it is within the realm of possibility that the BRAC committee will choose to close Fort Huachuca. This would mean that the current level of municipal solid waste would decrease significantly. Will Global Energy Resources agree to wait until Spring 2005 to have their 20-year memorandum of understanding signed?

GERI does not see any reason to wait until the spring. Our design effort will require months before any large financial investment is required.

Question #13: Companies that build facilities that could be harmful to the local environment are often required to fund a financial assurance bond. A
financial assurance bond is money set aside to be used in the event that environmental remediation or demolition of a facility becomes necessary. How much money is Global Energy Resources setting aside in a financial assurance bond?

This facility will not be harmful to the environment and our initial review with ADEQ shows that the emissions from the generators (the only source of emissions) will be within ADEQ’s limits. ADEQ does not require any financial assurance bond. GERI will comply with all federal, state and local requirements in the design, construction and operation of the facility.

Question #14: What contingency plans do you have if the plasma converter does not perform as advertised?

The process, which is used to design this facility, focuses on the commercially available products on the market. As such, the vendors that we select will guarantee performance and warranty their products. This is our plan to prevent the need for any contingency.

Question #15: How much would local jurisdictions be liable for?

Cochise County is only liable to secure and transport the waste to the facility.

Question #16: Who would pay for environmental remediation if they are needed?

GERI will be the permit holder and as such will be liable for any remediation.

Question #17: How many years has Global Energy Resources been in business?

GERI has been in business since May 2004.

Question #18: How much capital does Global Energy Resources have available? Who is providing the capital?

GERI is a privately held company. The owners provide capital for the company. Financing for the projects comes from typical funding sources.

Question #19: How much insurance does Global Energy have?

Each facility will be insured to cover their present value.

Question #20: We saw on the California Attorney General's website information
that suggests the CEO of Global Energy Resources was indicted for fraud. Is that true? If so, what is the current status of that indictment?

After full review of the situation, all charges were dismissed because Arem Kazanchain was a victim of identity theft.

Question #21: What is the name and contact information for a person in your company who can answer technical or scientific questions?

John Cummings, President of GERI, should be contacted to answer any technical questions.

Question #21: Mr. Hamilton has said that the first step would be to have an
engineering firm do an analysis of the local waste stream prior to
any commitment being made, but Global Energy wants an LOI or MOU signed soon...and as Global Energy says in their material that LOI or MOU would "enable us to start the engineering." This indicates that the county before the feasibility would make a legally binding commitment or safety of the project is known. Is this true?

GERI will not invest in any project where the party providing the feedstock is not committed. There is a definite benefit to the county by eliminating the landfill (ordors, leeching into ground water and eliminating the need for a flare at the landfill) and reducing their cost. This facility will be designed to code to ensure its insurability.

Question #22: Please provide all emissions data from the eight gasification
facilities Global Energy says Energy Products of Idaho has in
California. Where are they, how long have they been in operation, are they commercial facilities, what is their waste stream and what kind of emissions testing and monitoring exists for each of these?

Please visit their website at: www.energyproducts.com and click on “energy Systems” and then click on “ California”. You would have to contact the owners for any emissions data. EPI systems gasify the waste and then operate a boiler with the gas. GERI will make syngas and operate a reciprocating gas engine generator, which is more efficient and cleaner.

Question #23: Please provide the "several references to facilities operating throughout Europe and Southeast Asia" that Global Energy apparently provided the county via GE PowerPoint presentation.

Please refer to: www.thermoselect.com and click on “Facilities”