(Waste) Gas Handling

QTI - Enclosed Flare System

Solutions to your burning Questions

Adrian R. Toader

January 2012

Introduction
Introducing G.I. Dynamics
G.I. Dynamics is a company with hands-on industrial experience, operating together with specialists and niche business partners in order to improve the performance and develop the sustainability for our clients business.
Introducing:

Global Network
\

G.I. Dynamics office Business Partners Support Network

Voorschoten, The Netherlands

Beijing, PR of China

G.I. Dynamics is backed up by an extended network of highly experienced senior executive, associated in the Institute for Independent Business

Double bay, Australia

8 February 2012

Portfolio: Technologies Provided

Bio-Refineries
Ethanol-to-Ethylene Bio-Ethanol & Bio-Diesel EO & MEG

Gas Processing
Cryogenic Nitrogen Rejection Oxygen Removal CO2 Removal/Sequestration Dehydration units Enhanced Oil Recovery Helium Recovery Cryogenic Expander Plants

Waste Water Treatment

Humid oxidization with Peroxide OHP Wet Air Oxidation Membrane technology

Caprolactam
U-Polish

Maleic Anhydride
MA Technology

(Waste) Gas Handling

QTI Enclosed Flare System

Contaminated Soil Remediation

PuriSoil

8 February 2012

GI Dynamics
Introduction Next Generation Flare system - New design Unique Technology
- Flexibility in operations

Environmental Friendly Supporting the markets - Oil & Gas Exploration and Mining
- Chemical and Petrochemical - Agricultural and Landfill

Scope of the supply Feasibility assessment Licensing , Engineering up to LS Turn Key Leasing/Rental option
QTI incinerators successfully operate in a broad spectrum of climates, temperatures and geography in a wide variety of process applications. Questor specializes in sweet and sour hydrocarbon waste gas incineration at well test sites and at facilities and works jointly with clients to design for their specific application and to ensure compliance with federal, state(provincial) and regional regulations. 8 February 2012 4

Waste Gas Incinerators

Exhaust gases from our Incinerators are combusted at 99.99% efficiency No particulate matter, poly-nuclear aromatic hydrocarbons (PAHs), or unburned hydrocarbons. There is no visible flame and no noise. Over 100% excess air is mixed naturally with waste gases in a proprietary burner system (at 1350o C internal combustion temperature). Unique design: high velocity exhaust vortex and high stack exit temperature create the most effective plume dispersion available. Saving our clients money through:
Reduced fuel gas consumption, Lower operating costs, Less maintenance Smaller lease sizes and Heat/power recovery

8 February 2012

Why Do We Flare?
Considered and adequate practice: - people assume high efficient Lack of infrastructure and markets for burned gases Perceived to be cost effective to flare Limited knowledge of alternatives

Flaring Nearly as Significant as Refinery Emissions PFC Energy - 2007

8 February 2012 6

Flare vs QTI-Enclosed Flare

Flaring
Difficult to measure efficiency and varies from site to site Heavily influenced by crosswinds allowing gases to escape unburned Difficulty burning rich gases often producing soot deposits and black smoke (BTEX, VOC, PAH) Entrained liquid droplets decrease combustion efficiency Visible Flame

QTI-Enclosed Flare
Measured independently at 99.99% consistently Combustion occurs in a closed chamber unaffected by winds High temperatures efficiently burn rich gas. Air pre-mixed with the waste gas prior to combustion Not effected by liquid droplet size No visible flame

8 February 2012

Combustion of hydrocarbons
99.99 % combustion requires the right mix of air and fuel

CH4

2 O2 =

heat

CO2

2 H2 O

Methane + Oxygen =

heat + carbon dioxide + water

Poor combustion results in the creation of :

Unburned hydrocarbons Carbon monoxide Volatile organic hydrocarbons or VOCs (benzene, toluene, styrene, xylenes etc.) Sulphur compounds besides SO2: H2S, carbonyl sulfide, carbonyl disulfide, mercaptans + over 250 other compounds identified in the research

8 February 2012

Greenhouse Gas (GHG) Emissions

The emissions are greater than the emissions focused under the Kyoto Protocol CDM (Clean Development Mechanism) The Global Warming Potential of methane is 21 times higher than that of CO2 and therefore inefficient combustion increases the greenhouse gases emitted For example : 19 mscf/day (~540 m3/day) of waste methane gas generates these daily CO2 emissions: T/day T/year Vented 65% combustion efficiency 80% combustion efficiency Incineration* (99.99%) 7.6 3.3 2.3 1.0 2775 1205 840 365

Incineration converts 99.99% of the methane to CO2 and H2O. * Incineration QTI Enclosed Flare System
8 February 2012 9

Incinerator Unique Design

Proprietary gas burner control creates a high velocity vortex Air is naturally drawn in Air and fuel is pre-mixed Refractory lined chamber 1200oC stack top temperature Optimal SO2 dispersion plume with velocity, temperature, and effective height 99.99% efficiency Low ground heat radiation

8 February 2012

10

Energy Recovery
Integrated Heat Recovery including power generation

Organic Rankine Cycle Waste Heat to Power unit

8 February 2012

11

Energy Recovery
Waste Water Vapourizing Process

8 February 2012

12

Features
Dependable and simple to operate Live pilots with constant spark igniters Stack top temperature monitoring Continuous Stack Emission Monitoring (CSEM) Reliable burner control system with backup Fiber refractory Light and thermal shock resistant Solar powered Air intake flash arrested for closer spacing enclosed burner

8 February 2012

13

Installation and application

Permanent Dehydration applications Acid gas & tail gas Solution gas Shale gas Waste water treatment In Situ operations FPSO

Portable (for temporary use) Coal bed methane Well testing and work overs Early production testing Pipeline blow downs Landfill waste gas

8 February 2012

14

Technology Assessment
Questor incinerators have been independently tested and verified that they combust waste gas streams at an efficiency rate of >99.99% thereby converting waste streams to less hazardous and manageable emissions, such as carbon dioxide, water vapour and sulfur dioxide. Questor incinerators are often deployed in areas where there is the potential for resident concerns. QTIs proprietary combustion technology safely and reliably addresses issues relating to visibility, odors, air quality and compliance.

Shell Canada
Tested at 2 rates : 2.5 and 4.8 MMscfd/day
Sour gas 11% H2S Questor 5000 incinerator 99.99% combustion efficiency - at both rates Naturally aspirated with up to 100% excess air No ground level violations of H2S and SO2

ExxonMobil
DESTRUCTION EFFICIENCIES Total Reduced Sulphur Compounds total in ppmv as Sulphur total out ppmv as Sulphur efficiency - % 10420 1.50 >99.99

Results:

8 February 2012

15

Key advantages
Leadership and expertise in combustion of H2S Close spacing Fuel Efficiency Applications
- Flue gas combustion - Shale gas - Well testing - FPSO

Models and sizes Customer Benefits

8 February 2012

16

H2S Specialists
Many of our clients including Shell, Vaquero, Dominion Exploration and others have demonstrated that our incineration units reach a true combustion efficiency of >99.9% when combusting H2S to SO2. Nexen Inc has employed several of our incinerator units for use within the City of Calgary on the 34% H2S wells with the acceptance and support of the surrounding community and the regulatory bodies

Dominion Exploration : 75% H2S and 25% CO2

- pipelines - well - Plant blowdown

Grimes Energy : 65 % H2S - Acid gas plant 80 ft stack Q50 Nexen Calgary : 34 % H2S - sour gas well workover Compton Clayhurst : 20% H2S / 60% CO2 - Acid gas Destruction Sinopec China : 18% H2S and 10% CO2 - well testing
8 February 2012 17

Close spacing
Questor incinerators are equipped with a number of safeguards that prevent any communication between the internal incinerator process and the environment external to the incinerator. It is these features that allow the incinerator to be placed immediately adjacent to the other process equipment. The continuous pilot is flash arrested with the same type used on reboilers or lineheaters, so that there is no possibility of igniting any combustible vapours outside of the incinerator. The waste gas stream is protected with a 3-inch ANSI rated flame arrestor which also prevents the possibility of any flash back on the waste stream extending outside of the incinerator.

Dominion Transmission West Virginia Benzene Destruction

Meet regulations Reduced footprint Smaller lease size Reduced piping 80% less fuel used Heat recovery Four month payout No condensed water handling problems

8 February 2012

18

Fuel efficiency/Carbon Credit

Compton Clayhurst Facility Acid Gas
250 mcf/d Incinerator Unit
20% H2S / 60% CO2 Reduced fuel usage from 1410 m3/d to 290 m3/d (50 mcf/d to 10 mcf/d) Payout in 4 months Reduced greenhouse gas emissions

80% less fuel than an open flare.

Q5000 Incinerator Unit : 225 MMBtu/hr

Tail gas destruction 99.99% efficiency SO2 ground level concentration of 383 micrograms per cubic meter CO2 emissions reduced by 73,000 tonnes per year Carbon credits : $0.5 MM to $1.1 MM ( $7 - $15 per CO2 tonne) Fuel gas reduced from 1.3 to 0.5 MMscfd $0.9 MM cost saving Total savings ~ $ 2 MM/y compared with open flare 19

8 February 2012

Flue Gas Combustion

OilSands In-Situ Flue gas Combustion Petrobank, Saskatchewan - Canada
<1% H2S, 99% CO2 and N2 Replacement of existing flares with incinerators Safe and efficient destruction of H2S in low heat content produced gas Significant cost savings with the reduced gas usage Improved air quality Significantly reduce noise levels

8 February 2012

20

Shale Gas
Antero, USA
No smoke, odor, flame Environmental integrity Regulatory compliance Landowner acceptance Reduced operating costs

Shell, USA
Strong community dialogue >99.99% efficiency Environmental compliance Measurable/auditable
results

, Germany

Community support Regulatory compliance Best available technology Low ground heat Minimal noise emission

8 February 2012

21

Well testing - Power

The QTI system utilizes natural air draw and therefore avoids potential downtime that is often associated with assisted air and waste intakes systems such as blowers and fans. When applicable, the incorporation of a solar panel power system ensures reliable and remote operation with the capability of stored power for seven (7) days without direct sunlight. Sinopec China, North-East Sichuan Province 20 MMscf/d of 18% H2S AND 10% CO2 Q3000 Incinerator Units

Over 100 well testing

8 February 2012 22

FPSO- solution to open flare

Current design ensures compatibility with a marine environment including coatings and corrosion resistant materials. Structural provisions are also incorporated to ensure that the incinerator will be adequately anchored and of sufficient strength to withstand the anticipated forces resulting from the offshore environment In order to ensure the incinerator package would be suitable for the marine environment, we have developed supplemental design solutions to mitigate corrosion on areas not adequately protected against marine conditions. With respect to corrosion mitigation, the following parameters have been included in Questor's incinerator design from a metallurgical perspective: The incinerator exterior shall be coated with thermal arc aluminum spray process. This technique will provide an extremely high level of corrosion mitigation. Components which cannot be coated as in the above shall: 1. be constructed from corrosion resistant material and/or coated with a marine paint, or 2. be constructed from titanium The incinerator shell interior shall be coated with mastic and then covered with a layer of refractory insulation. We have provided design proposals for five offshore applications in the Gulf of Mexico. Each application requires the safe and efficient combustion of waste gas streams of > 14 MM scf/d and with an H2S content of up to 21%. 8 February 2012 23

Incinerators: Model & Size

* Capacity is based on burning gases with a BTU content equivalent to methane.

Each System is Custom-Engineered application-specific solutions Integrated Heat Recovery including power generation

8 February 2012

24

Rental/Leasing

8 February 2012

25

Customer Benefits
Can meet tougher Environmental Regulations - measured combustion efficiency in excess of 99.9% Air quality improvement and Greenhouse gas reduction No odor, No soot, No smoke or No visible flame Contributes to sustainable development Builds strong community relationships Low Capital & Installed Cost Heat utilization and power generation opportunities Significant reduction in fuel and operating costs High productivity: optimal energy utilization Reliable and Easy to Operate Reduced footprint

Public Confidence

8 February 2012

26

Thank you

Adrian R. Toader
Business Development Manager M: +31 (0)6 125 766 02 E: ar.toader@gidynamics.nl

Chris van der Zande

Business Development Manager M: +31 (0)6 125 77 224 E: ccm.vanderzande@gidynamics.nl

Copyright & Disclaimer

Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in GI Dynamics BV and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any reproduction. Disclaimer This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for GI Dynamics BV and its (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as expects, believes, estimates or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for GI Dynamicss businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although GI Dynamics BV believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. GI Dynamics BV is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither GI Dynamics BV nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. GI Dynamics is used as the common brand or trade mark for most of these entities. In this presentation we may sometimes use GI Dynamics BV , GID, GI Dynamics, GI Dynamics Europe, we or us when we refer to GI Dynamics in general or where no useful purpose is served by identifying any particular GI Dynamics company.