Solving China’s Clean Energy Challenges:
·       Reducing Coal Consumption while increasing Power Plant Profitability
·       Reducing Air Pollution Emissions
 
 
A Report Prepared for
The Peoples Republic of China
 
Prepared by
 
     Alan Di Stefano
         President
Global Environmental Marketing, LLC
  P.O. Box 51960
Sparks, NV 89434 USA
 
1.   What are China’s National Energy and Climate Targets?
·         China has a long term target to reduce the carbon intensity of the economy by 40-45% from 2005 levels by 2020
·          China also has binding targets to reduce energy intensity by 16% from 2010 levels by 2015 and carbon intensity by 17% from 2010 levels by 2015
·         China has a target to reduce coal consumption as a percentage of primary energy to below 65% by 2017
Source: http://www.chinafaqs.org/library/chinafaqs-what-are-chinas-national-climate-and-energy-targets
2.   Our Proposed Solution to reduce coal consumption and decrease air pollution
·         Nano Fossil Fuels Technology, LLC, a U.S. corporation, sells a liquid Combustion Catalyst that can be used on coal as well as with diesel and gasoline fuels. When sprayed on coal, this product:
v  Increases the energy (BTU) output of the coal from 6-16%. This means that the amount of coal burned to generate electricity in a Power Plant can be reduced by 6-16% while maintaining the same energy output
v  Decreases air pollution emissions of:
-       Particulates
-       Sulfur Dioxide, by 40%
-       Oxides of Nitrogen (NO_X), by 18%
-       Carbon Monoxide, by 24%
-       Mercury, by 31-35%
·         For a single Power Plant that burns 5.5 million tons of coal per year, the amount of coal saved by using this product can be from 330,000 tons to as high as 1.19 million tons and the net amount of money saved per year on coal can be from US$5.2 million to US$60.8 million after accounting for the cost of the product. The savings depends on the exact use of the product, the efficiency of the Power Plant and the price of coal.
·         How the product is used: The Combustion Catalyst is sprayed on the coal as soon as it arrives at the Power Plant, typically on a conveyor belt that off-loads the coal from a train car or a barge. The coal is then stored for up to two days before being burned, giving the product time to react with the coal to remove moisture and improve the burning efficiency of the coal. There would be a one-time initial cost of less than US$25,000 to install the spraying equipment.
 
 
3.   How Does the Product Work
The Combustion Catalyst is sprayed on the coal as a mist. The ratio of the product used is one drum (208 liters) for 880 tons of coal. After spraying the treated coal must not be used for 30+ hours for best results to provide time for the product to react with the coal. The product works in several ways:
-      Water in the coal is stored as an emulsion. The Combustion Catalyst breaks down the emulsified water to a liquid. The liquid water is dissolved in solvents in the Combustion Catalyst. As the solvents in the Combustion Catalyst evaporate the water also evaporates. The BTU value of the coal, when burned, will increase when the water is removed.
-      Materials in the Combustion Catalyst will absorb oxygen from the air. The dissolved oxygen is now in very close contact with the coal and will cause the coal to burn hotter and more completely resulting in another increase in the BTU value of the coal
-      Because the coal is burned more completely, the amount of fly ash in the coal is also reduced (up to 15%), and the quality of the fly ash is improved so it can be sold to cement plants for a premium price.
-      Because up to 16% less coal is burned after the coal has been treated with the Combustion Catalyst, the amount of air pollution produced by the burning coal is also reduced. Also, since the coal is burned more completely due to the increased amount of oxygen available, it is burned at a hotter temperature. This increased burning efficiency reduces the amount of SO₂, NO_x and CO emitted into the air. The increased burning efficiency also reduces the amount, and the size, of the particulate matter emissions.
 
4.   Proof that the Combustion Catalyst works
 
Please refer to the original technical (dated March 29, 2014) and the Update to the original report (dated April 23, 2014) for detailed technical data.
 
The product has been used to improve the performance of vehicles using diesel and gasoline fuels since it was first developed in 1983. A extensive list of documentation can be found on the website: www.combustion-catalyst.com . The first test on coal was performed in 2010 in a report issued by Dr. R.B. King; this report is available on the web site. The tests were performed on a sample of U.S. sub-bituminous coal. The results were as follows:
 

Parameter	*Baseline Value	**Treated Coal	% Change
Coal heating value (BTU/pound)	8,683	9,896	+14 %
SO2, ppm	710	425	-40 %
NOX, ppm	331	272	-18 %
CO, ppm	8.5	6.4	-24 %
Mercury, ug/Nm3	18	12.5	-35 %

Note:      1. * Baseline Value is for the untreated coal
2. ** Treated Coal is the Baseline untreated coal that has been sprayed with the Combustion Catalyst
3.  For the Treated Coal sample, the Treated Coal was allowed to remain stored for 2 days after treatment with the Combustion Catalyst before any testing was performed
 
We were asked to repeat some of these tests with coal samples provided by China.
A.   First Coal sample is a mixture of Chinese Mongolian and Datong (only about 450 grams of sample was provided so only four test samples could be tested, Baseline and three different levels of Treated coal). For a complete Ultimate Analysis of this coal sample please see the lab report in Appendix D in the original test report. Sample 001 is the Baseline and Sample 002 is the Treated Coal at the recommended treatment ratio of the Combustion Catalyst and the Coal. Sample 003 uses twice the recommended amount of the Combustion Catalyst and Sample 002 and Sample 004 uses three times the recommended amount of the Combustion Catalyst. The purpose of Samples 003 and 004 were to see how much the BTU values improved with the use of higher amounts of the Combustion Catalyst.
 

Parameter	*Baseline Value	**Treated Coal	% Change
Coal heating value (Dry BTU)	11,664	12,268	+6 %
Dry Ash	14.29	12.88	-10 %
Dry Sulfur	0.38	0.31	-19 %

Note:  1. * Baseline Value is for the untreated coal
2. ** Treated Coal is the Baseline untreated coal that has been sprayed with the Combustion Catalyst
3.  For the Treated Coal sample, the coal was allowed to remain stored for only one hour after treatment with the Combustion Catalyst before any testing was performed
 
B.    Second Coal sample is Shanxi coal (about 27 kg of a different coal sample was provided so more extensive testing could be performed). For a complete analysis of this sample please see the lab reports in Appendix A-1 in the Updated test report. Because we were trying to get an increase in the BTU values similar to the Dr. King report of 2010, the Treated Coal sample was allowed to remain stored for 30 hours after treatment with the Combustion Catalyst before testing.
 

Parameter	*Baseline Value	**Treated Coal	% Change
Coal heating value (Dry BTU)	8,315	9,719	+16.88 %
Dry Ash	34.26	29.26	-14.6 %
Dry Sulfur	3.05	2.98	-2.3 %

Note:  1. * Baseline Value is for the untreated coal
2. ** Treated Coal is the Baseline untreated coal that has been sprayed with the Combustion Catalyst
3.  For the Treated Coal sample, the coal was allowed to remain stored for 30 hours after treatment with the Combustion Catalyst before any testing was performed
 
C.   Summary of Laboratory Test Data
The purpose of testing the two Chinese coal samples was to see if the original test results for the Dr. Kind test in 2010 could be reproduced with different types of Chinese coal. However, for the test on the first coal sample, the amount of time for the Combustion Catalyst to react with the coal was only one hour and the resulting BTU increase was only about 6%.
 
However, for the Second Coal sample, the amount of time for the Combustion Catalyst to react with the coal was 30 hours, much similar to that which was done with the original Dr. King test, and the resulting BTU increase was about 16%. The Dry Ash result was also better than the First Coal sample result. Since we were able to essentially reproduce the test values of the original Dr. King test with two different samples of Chinese coal, it can be assumed that all of the other test parameters of the original Dr. King test, such as the reduction in the emissions level of the four different pollutants, would be approximately the same.
 
5.   Conclusion
We were able to demonstrate, with two different Chinese coal samples, that we could reproduce the original 2010 tests by Dr. King. Therefore, the increase in the BTU value of the treated coal will allow up to a 16% reduction in the amount of coal used by a Power Plant and the air pollution emissions would be reduced by 18-40%. Therefore, use of the Nano Combustion Catalyst will allow China to meet its targets for reducing the amount of coal consumed while reducing pollution at the same time. It will also allow the Power Plants to decrease the usage of coal by 6-16% and save a net of up to US$60 million per year.

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