Slides from the Biomass workshop at the Eversheds event: Attracting and Maintaining Institutional Investment in Renewable Energy - 2nd July 2012

1. Biomass Risk Management
Darren Williams
Commercial Director
Eco2 Limited

2. Background
• Swalec
• Joined generation business in 1993
• Energy Power Resources – 2006
• Biomass and waste energy
• Ely Straw fired station project manager
• Largest biomass generator in UK
• Founding Director of Eco2 – 2002
• Wind – Dummuie, Betws, Hatton, Bogenlea
• Landfill Gas
• Tidal Energy Limited
• Biomass – Western BioEnergy, Sleaford, Brigg and a
further 8 biomass plants throughout UK and Europe
under development

3. Is Biomass Riskier than Wind?
• Both offer construction and fuel risk
• Proven technologies available
• Long term contracts achievable
• A biomass plant has a team on site to make
sure it runs 24 hours a day
• Lots of projects with good operating history;
but
• DEBT FUNDERS ARE NOT SURE!

4. Key Biomass Risks
Three Key Risks:
•Fuel
•Fuel
•Fuel
•Other Risks
• Construction/Technology Risk
• Offtake provisions
• Operating Risks

5. Fuel – Key Risks
•Is there enough?
•What will the price be in the
long term?
•How do you get it to the
plant at all times?
•Counter Party Risks?

6. Is there enough?
Sleaford

7. What will the price be in the long
term?
• In depth knowledge of the market
• Needs third party confirmation
• Long term fuel contracts
• Ability to utilise back up fuels

8. How do you get it to the plant?
• Need to fully explain the fuel logistics strategy
• A track record of managing fuel for a UK biomass
plant
• Appropriate contingency planning
• No substitute for having done it
before

9. Counter Party Risk
• Wide range of fuels with wide range of
suppliers
• Some large scale suppliers in the market
• Strength of counter part vs number of
contracts

10. Construction/Technology
• Proven track record of technology on the
chosen fuel
• Proven contractor within the biomass/waste
sectors
• Appropriate contract and guarantee
structures
• Liquidated Damages and Bonds
• Parent Company Guarantees
• Owner management of construction

11. Off-take Provisions
• Key off-take risk is the Power Purchase Agreement
• Bankable counter party
• Guarantee Structures
• Floor price or not?
• Change of law
• Ash and effluent provisions
• Grid Connection

12. Operating Risks
• Long term Operations and Maintenance Contract
• Operations and Maintenance Contractor – track
record
• General Plant Management
• Fuel and O&M contract interface
• PPA management
• Accounting function
• Really important to understand who is going to do
what and make sure it gets done

13. Is it all possible?
• Thankfully yes!

14. The UK biomass opportunity
Eversheds conference – July 2012

15. Agenda
Page
Section 1 The Ernst & Young Environmental Finance team 3
Section 2 The investment landscape for biomass 6
Section 3 The impact on financing of CfD 11
Section 4 The funding backdrop 13
Section 5 Summary 20
Ref: 1126192 Eversheds conference June 2012 2

16. Ernst & Young Energy Infrastructure Advisory team
We are a market leading renewable energy This announcement appears as a matter of record only. This announcement appears as a matter of record only.
This announcement appears as a matter of record only.
corporate finance team, with over 60
Eco2 Lincs Limited H elus Energy pl
i c SeaEnergy Plc
dedicated professionals advising on has raised £115 million of senior debt funding to
has disposed its offshore wind development subsidiary,
construct and operate the Lincolnshire based 38 MW
energy and environmental finance straw fired
has disposed of a
73M W f l
uly-consented SeaEnergy Renewables
Sleaford Renewable
We are currently advising on: bi ass si
om te Ltd
to
Energy Plant
► Over 5GW of renewable M&A The lending club consisted of NIBC Bank NV, The Royal for £28 million and 13%
Bank of Scotland, Siemens Bank GmbH and Unicredit carried-interest Repsol
transactions in Europe Bank AG
for £50 million
► Over £300m of project financing for Ernst & Young acted as financial advisor to the shareholders of Ernst & Young acted as advisor t o Helius Ernst & Young acted as lead financial advisor to SeaEnergy Plc.
renewable projects in Europe Eco2 Lincs Limited. Energy plc.
In the last 15 months, we have:
► Disposed of four consented onshore
wind farms in the UK
This announcement appears as a mat t er of record only. August 2011 This announcement appears as a mat t er of record only. November 2010 This announcement appears as a mat t er of record only. March 2011
► Secured c.£115m senior debt and a
PPA for Sleaford biomass plant RES UK & Ireland Lt d Part nerships for Eaga plc
Renewables Lt d UK Solar PV project financing
► Advised on PPAs for over 130MW of
has disposed of a majority has raised additional funding has provided accounting, tax
renewable energy capacity. stake of for its onshore wind and modelling services on
development portfolio through Eaga's £300m project financing
► Provided complex financial modelling Wadlow Energy Lt d the sale of a minority stake in of a portfolio of social housing
and structuring services to the largest to
the company to OPTrust rooftop solar PV installations
solar project finance facility in the UK for an undisclosed sum
(Eaga - £225m) Barclays Infrast ruct ure
Funds Ernst & Young acted as lead advisor to the
company and founder shareholders, HSBC
Since 2005, we have: Ernst & Young acted as financial advisor to Environmental Infrastructure Fund and Ernst & Young provided accounting, tax
RES UK & Ireland Ltd. Carbon Trust Enterprises Limited. and modelling services to Eaga plc.
► Raised project finance for over 785MW
of renewable energy assets
► Advised on PPAs for over 1.1GW of
renewable assets
Financial Adviser of the Year - Renewable Energy
 Financial Adviser of the Year – Power
 Financial Adviser of the Year - Social Infrastructure
Ref: 1126192 Eversheds conference June 2012 3

17. Ernst & Young Energy & Environmental Finance
Our EEIA team sits within the wider EMEIA
Infrastructure Advisory team, allowing us
to understand financing trends across a
broad range of asset classes.
Global infrastructure advisory mandates closed – 2011
► We have undertaken in excess of 800 Rank Financial adviser Deals Value ($m)
infrastructure transactions that involved 1 Ernst & Young 31 $16,290
complex structuring in the project 2 PwC 19 $7,834
finance market. 3 KPMG 18 $6,051
► We are lead advisor on a number of 4 HSBC 15 $16,469
ongoing high profile assignments 5 BNP Paribas 12 $19,495
► We are currently advising on £10 billion
of infrastructure project financings, Source: “Project Finance International” and “Infrastructure Journal” League Tables – 2011
including a number of high profile
assignments in the energy and
environment space
This announcement appears as a matter of record only.
► We are consistently ranked number 1 in This announcement appears as a matter of record only. This announcement appears as a matter of record only.
the project finance market
► Our awards is a reflection of our market
leading position in the infrastructure
financing space Ongoing Ongoing Ongoing
Financial Advisor on the structuring and financing of £1.5bn Smart meter funding and commercial strategy Structuring and financing advice on £1.5bn major
the £4bn Thames Tunnel project Financial Advisor infrastructure roll out
Financial Advisor
Ref: 1126192 Eversheds conference June 2012 4

18. Infrastructure Advisory– our awards
2011 Middle East Power Ernst & Young
Deal of the Year
2011 No.1 by Global
Sur IPP Mandates Won No.1 by Global PFI/PPP Deals
closed
2005, 2007 & 2009
2009 & 2011 2009 Renewable Energy
PPP Financial Advisor Advisor of Choice
of the Year
Ernst & Young
2011 Best Infrastructure Deal in CEE - Polish
Airports State Enterprise’s PLN700mn fund 2010 No.1 by Global
raising Mandates Won
No.1 by Global and
EMEA Mandates Won
2005 - 2009
2011 Best Project Finance Adviser in
2008 EMEA and CEE Best Advisory Firm –
2011 PPP Deal of the Year Financial Advisor of the Year – 2009 Best Project Finance House – Renewable Energy Europe
Suffolk Waste PFI Renewables Financial Advisor
European Transmission Deal of the Year - Robin Rigg
OFTO
Financial Adviser of the Year - Renewable Energy
Financial Adviser of the Year - Power
2011 Best PPP Deal in the Middle East Financial Adviser of the Year - Social Infrastructure Overall Project Finance Firm of the Year:
– Bahrain Housing UK
Partnerships Awards 2012 Partnerships Awards 2012 Partnerships Awards 2012 Partnerships Awards 2012
2011 Asia-Pacific PPP Deal Best Local Government Project Team Best Waste/Energy/Water Project Project Grand Prix
of the Year
Adelaide Hospital South West Devon Energy from Waste PFI South West Devon Energy from Waste PFI
Devon Waste Partnership Best Financial Adviser
Eversheds conference June 2012
5

19. Section 2
The investment landscape for
biomass
Ref: 1009231

20. EY’s assessment of UK energy investment requirements
Replacement Environmental
cycle targets Demand growth
UK energy investment requirements to 2020 (£199bn) Generation investment £136bn
Smart Other
Power and meters 14% Nuclear
gas 5% generation
distribution 27%
2% Renewables
generation
Onshore 63%
£136bn £85bn
power
Gas
transmission
generation
6% Generation 5%
68% Coal with
Offshore
power CCS
transmission 5%
5%
Ref: XX00000 Eversheds conference June 2012 7

21. Government is increasingly supportive of bio-energy
Charles Hendry MP – 28 June 2012
► Biomass could meet 40% of the Government’s 2020 renewables target and provide
‘sustainable, cost-effective and low-risk‘ energy generation as part of a balanced energy mix.
DECC April 2012 (launch of the bio-energy strategy)
► “[The] new biomass strategy targets a sector supporting 50,000 jobs and producing 11 per
cent of UK energy by 2020”
DECC RO Banding consultation (ongoing)
► 1.5 ROCs
► 0.5 ROC uplift for CHP maintained until April 2015
► Co-firing and coal conversion
Green Investment Bank
► Biomass waste a priority area
Renewable Heat Incentive
► First of its kind support for renewable heat generation
Ref: XX00000 Eversheds conference June 2012 8

22. What is the investment opportunity?
Large scale (greater than 20MW) biomass - consented
•Source: Department of Energy and Climate Change/ EY proprietary knowledge
Tansterne (25MW) - ► C.2GW ‘here and now’ investment opportunity
GB Bio (Straw)
Corpach (20MW) –
► Pipeline increases significantly for:
Peel Tees Renewable
Energy Plant ► Coal conversion
(295MW) – MGT
Billingham (45MW) – ► Co-firing upgrade
Gaia Stallingborough
(60MW) – RWE ► Pre-consent pipeline
Pollington (53MW)- - ► Sub 25MW CHP
Dalkia Brigg (40MW) –
Eco2 (Straw)
► Advanced Conversion Technology
Anglesey (299MW)
Stockton on Tees
(50 MW) - Bio
► Biomass boiler market
– Anglesey
Energy Investments
Aluminium ► Anaerobic digestion
Immingham (50MW)
Morgan Credit – Real Ventures ► Related supply chain upgrades (eg
(25MW)
upstream and midstream)
Immingham
Nevis (50MW) – (299MW) - Drax
Welsh Power
► Investment opportunity could be in excess of
Ridham CHP Plant
Port Talbot (300MW) (25MW) – Evonik c.£10bn
– Prenergy
Avonmouth
Sleaford (40MW) –
(100MW) – Helius
Bristol (150MW) – Eco 2 (Straw)
E.ON
Tilbury Green Power
(65MW) – Express
Energy
Ref: XX00000 Eversheds conference June 2012 9

23. What are the challenges?
Primary
► Regulatory support (RHI, ROCs, FITs, ECAs, CFDs, grandfathering………)
► Contract bankability
► fuel, fuel, fuel!!!!
► PPA, PPA, PPA!!!
► Accessing financing
Potentially
► Sustainability agenda
► Project returns
► Technology risk
► Construction risk
► Operating risk
Ref: XX00000 Eversheds conference June 2012 10

24. Section 3
The impact on financing of CfD
Ref: 1009231

25. The proposed FiT CfD
The key to achieving these objectives will be to bring forward the level of investment needed in
new low-carbon generation capacity and infrastructure at the required pace and through a
combination of measures.
Source: DECC
► Will investors be turned off by lack of power price ► Overlap of RO provides some continuity, but without
exposure? absolute certainty on revenue
► Will 15 year tenor attract investors seeking long term, low ► Gross margin indexation linkeage RO and FiT CFD –
risk returns? loss of natural hedge?
► Strike price mechanism? ► Competition against transport fuels (revenues linked to
► Guarantor between generator and supplier? oil price)
Ref: XX00000

26. Section 4
The funding backdrop
Ref: XX00000

27. Utility balance sheets remain constrained
Credit ratings trajectory – top 12
Traditional corporate finance not up to the task integrated utilities
► In 2001, 10 of the top 13 utilities in Europe were
rated AA+ to A+
► In 2012, one (EDF) is in that range
► Downgrade to BBB category increases the cost of
debt, and cost of doing business
► Management of their balance sheets and off-book
liabilities has become a key feature of Utility
finance (IFRS eg lease accounting)
► Utilities’ capacity to carry out renewable energy
ambitions of Europe is constrained 2001 2012
BB+ BBB BBB+ A- A A+ AA- AA
Ref: XX00000 Eversheds conference June 2012 14

28. Financing considerations – market backdrop
US, German and UK Government Greek, Spanish and Port uguese Government
Bond Yields Bond Yields
4.5 40.0
4.0 35.0
3.5 30.0
3.0
)
)
25.0
Yield (%
Yield (%
2.5
20.0
2.0
1.5 15.0
1.0 10.0
0.5 5.0
0.0 0.0
Mar -10
Mar -11
Mar -10
Mar -11
Mar -12
Mar -12
Nov-10
Nov-11
Nov-10
Nov-11
May-10
May-11
May-12
May-11
May-10
May-12
Jan-10
Sep-10
Jan-11
Sep-11
Jan-12
Sep-10
Jan-11
Sep-11
Jan-12
Jan-10
Jul-10
Jul-11
Jul-10
Jul-11
US Ger many UK Gr eece Spain Por tugal
Source: Bloomberg Source: Bloomberg
Key drivers Impacts
► Volatility in the financial ► Banks raising capital in a tough wholesale market or
markets shrinking their balance sheets
► The ongoing Eurozone ► Project finance loans will attract steep capital weightings
debt crisis ► Some banks may look to sell down their project finance
► Basel III portfolios to bolster ‘Tier 1’ capital
► Banks that are less well capitalised and/or lacking support
from Government with ready access to the capital markets
. have seen their cost of debt increase
Ref: XX00000 Eversheds conference June 2012 15

29. Project finance has become a less preferred choice
► Increasing trend towards: Global project f inance volume by f unding source
1. Club lending
350
2. Credit committee decision making driven by
300
relationships and geography
3. Mini-perm structures 250
Aggressive cash sweeps and restrictions on
US$ bn
4. 200
payments to equity
150
5. Rise in margins (although offset by recent fall in the
100
long-term swap rate)
► Major deals continue to be done (see graphic) 50 Source: Infrastructure Journal
► Role of ECAs and Multilaterals key for overall funding 0
strategy and market approach 2005 2006 2007 2008 2009 2010 2011
► Deals are being closed for biomass (Sleaford, Helius Equity Bonds Loans IFI Suppor t
Cord) and more are in the pipeline
Ref: XX00000 Eversheds conference June 2012 16

30. Biomass offers various business models for different
classes of funders
Institutional capital - >100MW / conversion Fund model <100MW
► Larger institutions/those with infrastructure experience ► The historic fund model of 20% carry and 2%
can participate through in house teams (eg Ontario management charge is under pressure
Pension Trust, Aviva)
► Smaller institutions/those without infrastructure
► Typically looking for investment tickets >£50m, and in experience may be more suited to providing debt or
some cases alongside another institution participating through such funds
► Looking for long term stable yields to balance 25-30
year index linked liabilities
► Challenges
► Equity investment currently provides exposure to
1. Availability of leverage
power price risk - a challenge for institutions seeking
stable revenues 2. Availability of ‘shovel ready’ projects
3. Investment scalability and flexibility
► Challenges
1. Perception of renewables as an infrastructure Other forms of capital
asset class
► Tax driven equity (EIS/VST) – sub 10MWs and RHI
2. Deal ticket size
► Project bonds - >50MW
3. Lack of residual asset value
► Non-utility corporates– all asset classes
4. Volatility in gross margin
5. Construction risk
Ref: XX00000 Eversheds conference June 2012 17

31. Section 5
Summary
Ref: XX00000

32. Summary
Biomass investment opportunity
► C.£10bn of investment opportunity over the next few years
► Many recent blockers have been removed
► There are still significant risks that need to be worked through (fuel, offtake)
Capital needs are huge
► Biomass competing against other large scale energy infrastructure funding requirements (nuclear,
offshore, CCGT, grid)
► The UK generally needs to compete for limited funds
New sources of capital are needed
► Utilities cannot do it all / banks cannot project finance it all
► Encouraging new sources of debt and equity is essential
New capital requires new structures
► Innovative structures are needed to access capital
► CfDs could help achieve UK energy objectives if carefully structured but challenges remain
Ref: 1126192 Eversheds conference June 2012 19

33. Ernst & Young LLP
Assurance | Tax | Transactions | Advisory
www.ey.com/uk
The UK firm Ernst & Young LLP is a limited liability
partnership registered in England and Wales
with registered number OC300001 and is a member firm
of Ernst & Young Global Limited.
Ernst & Young LLP, 1 More London Place, London SE1 2AF.
© Ernst & Young LLP 2012. Published in the UK.
All rights reserved.
This document has been prepared by Ernst & Young. The information and opinions contained in this document are derived from public
and private sources which we believe to be reliable and accurate but which, without further investigation, cannot be warranted as to their
accuracy, completeness or correctness. This information is supplied on the condition that Ernst & Young, and any partner or employee of
Ernst & Young, are not liable for any error or inaccuracy contained herein, whether negligently caused or otherwise, or for loss or damage
suffered by any person due to such error, omission or inaccuracy as a result of such supply. In particular any numbers, initial valuations
and schedules contained in this document are preliminary and are for discussion purposes only.
Ref: 1126192

34. Biomass Technology
Paul Noble
2nd July 2012
1

35. Context in today’s workshop
• Biomass Technology – Paul Noble
• Managing Project Risks – Darren Williams
• Financial Modelling and funding structures of
renewable projects – James Barrett-Miles

36. Contents
1. Biomass in the UK Energy Mix
2. Technology Review
3. Biomass Co-firing and Conversion
4. What is happening now?
5. What of the future?

37. UK Bioenergy Strategy, April 2012
“The potential scale of bioenergy deployment: although highly
uncertain, our analysis indicates that sustainably-sourced bioenergy
could contribute by 2020 around 8-11% to the UK’s total primary
energy demand and around 12% by 2050 (within a wide range of 8%-
21%)”
“Biomass in power generation currently accounts for less than 3% of
the total electricity generation in the UK. Going forward our analysis
indicates that biomass in power generation has an important
transitional role which can contribute to the cost effective delivery of
our renewable targets. The range of biomass in power generation to
2020, which are consistent with our principles, could be 20 to 40 TWh
of delivered energy in 2020, accounting for 5% to 11% of total power
generation”
4

38. National Grid View, 2011
5

39. Contents
1. Biomass in the UK Energy Mix
2. Technology Review
3. Biomass Co-firing and Conversion
4. What is happening now?

40. Technology Map
Infrastructure:
Electricity energy supply, services, land,
generation logistics
Coal
Biomass
CCGT
Wind
Energy from
Waste
Pyrolysis
Waste Gasification
Separation Chemicals
processes Reverse cracking Petrochemical processes
Anaerobic digestion
Biocatalysts
Fischer-Tropsch
Transesterification
Algae
Ethanol
Biotechnology fermentation
Enzymes
Biofuels

41. OVERALL CONTROL SYSTEM * - “PLANT” OR “STATION LEVEL” *
FGT ASH
STEAM* STG* E* HV *
BOILER GRID
EQUIPMENT EQUIPMENT EQUIPMENT
CONTROL CONTROL CONTROL
FUEL
CONVEYORS * STEAM *
FUEL * FUEL FW *
(NB - EFW-SINGLE STAGE) CON COOLING *
STORE 1 STORE 2 (BIOMASS – 4/5 STAGE)
(ACC)
EQUIPMENT EQUIPMENT
EQUIPMENT
CONTROL CONTROL
CONTROL
DEMIN*
WATER *
FIRE (IF WET COOLING)
FUEL DEMIN * EQUIPMENT PROTECTION*
CONTROL
EQUIPMENT
FUEL DELIVERY CONTROL
WATER
RAW WATER – SUPPLY AND DISTRIBUTION (S & D) PIPING *
COMPRESSED AIR - (S & D) *
LV ELECTRICAL (S & D) *
BUILDING SERVICES *

42. Biomass Technology for Power Generation
1) Fuel Preparation and Processing:
Separation, Drying, Pelletisation, Torrefaction
2) Combustion:
Grate Combustion – open flame
Fluidised Bed Combustion Groups
Pulverised Fuel
3) Low Oxygen Processing
Gasification or low oxygen processes including pyrolysis

43. Project Development Process
GATE 1 GATE 2 GATE 3
Design Basis
Concept Basic Design
Screening Concept Detailed
development Front End Design
Pre-Feasibility and finalisation Engineering
Assessment Design (FEED) Construction
Project
Cost Estimate Definition Cost Estimate
Cost Estimate -10% to +10%
-20% to +50%
-15 to +30%
Engineering work to Early Stages of Final Contractor team
Ranking of Options
Design. performs much of the
Select preferred finalise the project
For EPCM, the 3rd party engineering at this stage
option scope and engineer and the although for some items
implementation tenderers, through supply the 3rd party engineer
chain engagement, carry continues the
out enough engineering to engineering to ‘issued for
achieve +/- 10% capex construction’ stage

44. Fuel Processing and Storage
Fuel/Raw Material
‘Field of Origin’
Fuel/Raw Material Processing
Density and moisture
Storage
variation
11

45. Combustion
Typical Atmospheric (Bubbling)
Fluidised Bed Combustion Boiler
(AFBC)
Typical Stoker Fired
(Grate) Combustion Boiler
12

46. Combustion Fuel Compatibility
Existing Coal Boilers
- includes a range
Stoker / Bubbling Fluidised Circulating
Fuel of options such as
Grate Bed Fluidised Bed
co-milling and
direct injection
Straw Yes
MSW Yes
Wood Chip Yes Yes
Waste Wood Yes Yes Yes
Wood Pellets Yes Yes
Milled Wood
Yes
Pellets
13

47. Contents
1. Biomass in the UK Energy Mix
2. Technology Review
3. Biomass Co-firing and Conversion
4. What is happening now?

48. Typical Biomass Conversion Scope
NMI
Conveyors and
Boiler Day bin hoppers
Pellet
storage
Road/Rail/Ship
Milling receiving
Pulverized fuel
transport
Controls including process controls
Electrical, Civil, Structural, Mechanical, Fire Protection

49. Comparison of Biomass New Build and Conversion
New Build Biomass Biomass Conversion
Adjust Boiler to burn new fuel.
Consider new or modified
burners.
Combustion designed for required fuel Consider heat transfer surface
Characteristics variability modifications
Adjustments required following
Emissions designed for required fuel assessment of fuel composition
Treatment properties, and combustion characteristics
Technology
Guarantee straight forward Uncertain
Contracting
Approach EPC or multi-package EPC or multi-package

50. Biomass Conversion Example Risks (1)
Process Risks Mitigations
Fire systems / Fire/explosion caused by build up of Lessons learnt captured.
explosion dust Interface to be managed early on.
prevention Fire Office/Independent Certifier
Interface.
Electrical Insufficient expansion of Load study.
infrastructure infrastructure available on site.
Road reception Incorrect design and specification Design & specification
Rail reception Flow of pellets too slow or fast once Modify bunker to put extraction in.
feeders replaced. Too much dust
generated.
Drainage failure & contamination.
Storage / delivery Conveyor failure. Problems include Complete redundancy to be provided. Dual 100%
conveyors power, control system, motors. systems.
Storage Fire detection & storage design Design to meet code of practice.
interface failure. Design in movement and turning of stock to reduce risk.
Excessive CO2 levels, bacteria, fire Maintain relationship with silo providers as a fallback.
risk.
Reclaim conveyor Conveyor failure. Problems include Complete redundancy to be provided. Dual 100%
power, control system, motors. systems.

51. Biomass Conversion Example Risks (2)
Process Risks Mitigations
Milling towers Fire & explosion Dust Control Systems. Design in easy
access for cleaning floors, walls and
ceilings (removing flammable fuel build).
Milling equipment Power consumption excessive. Use equipment tested elsewhere.
Understand loads.
Reliability (particularly hammers). Use high quality equipment – assess
supply chain.
Pneumatic conveyor & Fire & explosion Dust Control Systems. interconnections
intermediate storage between equipment.
Furnace Exit Gas Poor Boiler Performance Detailed assessment. Internal Boiler
Temperature redesign
Boiler air systems Poor Boiler Performance Over fire air technology
Slagging Deposition Poor Boiler Performance Provision for Furnace Wall Blowers
Behaviour
Dust Control Systems Poor Boiler Performance Safety risks
Emissions Control Out of compliance with permit to operate Detailed assessment of Boiler System

52. What is the Current Situation?
Development /
Planning Construction Operating
New Build 2,010MW 175MW 275MW
Conversion
(including cofiring) 6,350MW 300MW 1200MW
19

53. What of the future?
Energy Policy
Power sector is characterised by large scale investments with long
lead times and 10-15+ year payback requiring 10-15+ year regulatory
clarity, stability and internal consistency
CCS plus Biomass – potential for negative emissions
Technological advancement in the supply chain
20