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Environmental Leadership The Pursuit of Cleaner Air

A Presentation to the

DENR/DAQ Mercury and CO2 Workshop

Ben White

April 20, 2004

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Agenda

• Overview of Progress Energy

• Progress Energy’s Innovative Solutions for NOx Reduction

• Progress Energy’s activities pursuant to the Clean Smokestacks Act

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Progress Energy at a Glance

• Super-regional energy company with over 23,000 megawatts of generation capacity

• Among the nation’s top ten utilities when ranked by generation capacity

• Employees: approximately 16,000

• Customers: 2.8 million electric customers in North and South Carolina and Florida

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Progress Energy at a Glance

2002 Generation Capability (MWs)

38 plant sites

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NOXNOXVOCVOC

SO4SO4NOXNOX

NOXNOXVOCVOC

VOCVOCO3O3

NOXNOX

NO3NO3

Air Pollutant FormationAir Pollutant Formation

SO2SO2

NH3NH3VOCVOC

OCOCOCOC

PM2.5PM2.5

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2000 Triangle Area NOx Emissions2007 Triangle Area NOx Emissions

(Projected)

Mobile38%

Point50%

Nonroad10%

Biogenic1%

Area1%

2000 total NOx, Triangle area:474.25 tons per dayAverage summer weekday

Point20%

Nonroad21%

Area3%

Biogenic1%

Mobile55%

2007 total NOx, Triangle area:216.14 tons per dayAverage summer weekday

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Evolution of PGN NOx Control Technology Installations

• 1993 – 1999 Traditional approach (LNB/OFA)

• 1997 - 1999 WIR installations

• 1999 - 2000 1st ROFA installation

• 1999 - 2000 AEFLGR installation

• 2000 - 2001 1st ROFA/Rotamix installation

• 1999 - 2001 1st SCR installation

• 2002 - 2006 5 additional SCR’s in service

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Progress EnergyNOx Reduction Leadership

• Searched worldwide for emissions reduction technologies– Sweden – ROFA technology. Reduced NOx emissions by more than

50% at Cape Fear Plant.– Eastern Europe – WIR technology. Reduced NOx emissions by 35

to 40 percent at Weatherspoon and Lee plants.– First utility in the world to apply these controls

• Selective Catalytic Reduction (SCR)– First SCR in North Carolina - Roxboro Unit 4 – Three SCR’s in-service in Person County on May 1, 2003 - one year

ahead of compliance requirements

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NC Annual and Ozone SeasonNOX Emissions

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

NC Annual NC Ozone Season

Actual Projected

77% reductionby 2007

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Clean Smokestacks Act

On June 20, 2002, North Carolina Senate Bill 1078, also known as the “Clean Smokestacks Act,” was signed into effect. This law, which was a landmark, cooperative effort between utilities, regulators, and environmental groups, requires significant reductions in the emissions of nitrogen oxides (NOx) and sulfur dioxide (SO2) from utility owned coal-fired power plants located in North Carolina. This act is serving as a model that other states are following.

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Progress EnergyEmissions Reduction Leadership

• Clean Smokestacks– Broad coalition (DENR, Governor, General Assembly, Advocates,

Utilities)– Technologies will be installed by 2013– First scrubber operational in 2005 at Asheville plant– Rates frozen until 2007– Investing more than $800 million to comply with Act’s

requirements– Investment in addition to the $370 million the company has spent

to reduce NOx emissions in the ozone season– Technologies projected to reduce SO2 emissions by 74 percent

and NOx emissions by 56 percent from 2001 levels– EPA Clean Air Excellence Award to state and its partners

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• Progress Energy owns and operates 18 coal-fired boilers at seven plants in North Carolina, with over 5000 MWe generating capacity.

• On June 20, 2002 Governor Easley signed into law SB1078 which caps emissions of nitrogen oxides (NOx) and sulfur dioxide (SO2) from utility owned coal-fired power plants located in North Carolina. Progress Energy emissions caps for NC are:

Tonnage Caps*

NOx (2007) 25,000

SO2 (2009) 100,000

(2013) 50,000

*Cumulative for all Progress Energy NC units

Progress Energy’s Clean Smokestacks Act Plan Supplement

April 1, 2004

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Locations of Progress Energy’s Coal-Fired Power Plants

in North Carolina

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Progress Energy NOX Emissions (Annual Emissions in Tons)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Actual Reductions SIP Call Clean Smokestacks

Actual SIP Call

Clean Smokestacks

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How Does an SO2 Scrubber Work?

A slurry of finely ground limestone (CaC03) is sprayed into a reaction tower, which has flue-gas flowing counter-current to the spray. The SO2 in the gas reacts with the limestone, removing 95% of the S02 and making CaS04 (gypsum).

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FGD Overview B&W Absorber Module

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Progress Energy SO2 Emissions(Annual Emissions in Tons)

0

50,000

100,000

150,000

200,000

250,000

Actual Emissions Clean Smokestacks

Actual

Clean Smokestacks