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Introduction ENVIRONMENTAL SYSTEMS, INC. Innovative Air Pollution Control Solutions Air Pollution Abatement Technologies for the Oil and Natural Gas Processing Industries. Jeff Kudronowicz / Application Engineering Manager / Anguil Presentation Outline Oxidation Overview, Industry Applicability & Operating Cost Comparison Technology Review & Design Considerations Case Studies Background Founded in 1978 Family owned and operated Headquartered in Milwaukee, WI with additional offices across the world Committed to quality and application-driven engineering Largest Supplier of Thermal Oxidizers to the Gas Industry Members of the Gas Processors Supplier Association (GPSA) Deb,Gene and Chris Anguil www.anguil.com/industries-served/petroleum-natural-gas.aspx 1

What is Oxidation? Definition: C n H 2m + (n + m/2) O 2 n CO 2 + mh 2 O + heat Temperature: Based on the VOCs that need to be destroyed there is a temperature at which the compounds can be oxidized. Time: Relates to how long a compound needs to be at a certain temperature in order for it to be oxidized. Turbulence: A fixed condition built into the equipment design that ensures a proper mixture of VOCs and oxygen for combustion. Specific compounds and desired destruction rate efficiency determine temperature and residence time. Oxidizer Technology Overview: Regenerative Thermal Oxidizers (RTO) Direct-Fired Thermal Oxidizers Concentrators Thermal Recuperative Oxidizers Catalytic Recuperative Oxidizers Green Completions in Natural Gas Development www.epa.gov/airquality/oilandgas/pdfs/20120417summarywellsites.pdf 2

Suitable Technologies for Gas Producers: Direct-Fired Thermal Oxidizers / Flares Industry Standard for Gas Plants Regenerative Thermal Oxidizer (RTO) Emerging, Energy-Efficient Alternative Catalytic Recuperative Oxidizers Not Recommended for Gas Plants Thermal Recuperative Oxidizer Not Recommended for Gas Plants Concentrators: Zeolite and Carbon Unsuitable for Gas Plants Pollutants Addressed by the Oil and Natural Gas Sector NSPS and NESHAP 60 Why Technology Changes Are Coming Operating Cost Comparison Operating Cost ($/hr.) 50 40 30 20 10 RTO DFTO / Flare 0 0 6 15 Assumptions: VOC Loading (BTU/ft 3 ) 1. 5,000 SCFM Process Exhaust Flows 2. 21,000 btu/lb. VOC heat of combustion 3. Auxiliary Fuel Cost of $4/mmbtu 4. 90% Thermal Energy Recovery on RTO 5. No Thermal Energy Recovery on DFTO/Flare 3

Why Technology Changes Are Coming CO 2 Emission from from Different Control Equipment 1800 1600 1400 CO2 Emission (lbs/hr) 1200 1000 800 600 400 CO2-Natural Gas Emission CO2-Solvent Combustion Process Assumptions: -5,000 SCFM -6 BTU/ft3 in Process Gas -Primarily Methane Emissions 200 0 Direct Fired Thermal Thermal Recuperative Catalytic Recuperative Regenerative Thermal Oxidizer (Flare) Oxidizer Oxidizer Oxidizer Emission Control Technology Regenerative Thermal Oxidizer Typical Applications: Oil and Gas, Chemical, Composites, Metal Decorating, Expanded Polystyrene, Painting, Pharmaceutical, Wood Finishing, Coating, Printing Air Flow Range: 2,500-70,000scfm / Single Unit 70,000-500,000scfm / Multiple Units Concentration Range: 0%-25% LEL True 95%+ Thermal Energy Recovery 99% plus Rate Efficiency (DRE) RTO Mode of Operation 4

Types of Valves: Valves Poppet Valves (Horizontal and Vertical) Butterfly Valves Rotating (Single) Valves Modes of Operation Pneumatic Hydraulic Why Vertical Poppet Valves? Maintenance Design Cost Poppet Valve Operation Types of RTO Heat Recovery Media Random Packing Typically 1 or 1½ ½ 3 Available Extruded Honeycomb Monolith Variety of cell sizes and wall widths Typical block size: 150 x 150 x 300 Multi-Layered Media Style and Size Options 5

Sour Streams & the Presence of Sulfur H 2 S + O 2 SO 2 / SO 3 SO 2 + H 2 O H 2 SO 3 SO 3 + H 2 O H 2 SO 4 Condensation of H 2 SO 4 (sulfuric acid) should raise corrosion concerns. Acid Dew Point Considerations If the acid dewpoint is reached in the oxidizer the acid will condense and possibly cause corrosion. Will the addition of fresh, dilution air cause condensing? Fresh air may need to be heated. High RTO thermal efficiency leads to low outlet temperatures. Check acid dewpoint temperatures and select appropriate materials of construction. Corrosion Protection Strategy Pre-heat the inlet air stream above the acid dewpoint Upgrade materials of critical items to protect against potential corrosion from acids Corrosion resistant outer reactor shell to protect against dew point corrosion Vinyl Ester coating Certain amine processes require metals be upgraded to specialty alloys! 6

Media: Proper Design Operating Scenario: 8,100 SCFM 2.2 BTU/ft3 RTO Thermal Efficiency RTO Fuel Usage 95% Thermal Efficiency 40,000 BTU/Hr 93% Thermal Efficiency 310,300 BTU/Hr 91% Thermal Efficiency 702,000 BTU/Hr 89% Thermal Efficiency 1,100,000 BTU/Hr 87% Thermal Efficiency 1,480,000 BTU/Hr A difference of 1,440,000 BTU/Hr 24/7 operation and $4/MMBTU = $50,000 per year Hot Side Bypass Allows unit to handle high VOC loads Damper position controlled by PLC and driven with pneumatic actuator with positioner Internally lined bypass duct to plenum of grade Duct and plenum are internally insulated Dilution Air Will the addition of fresh, dilution air cause condensing? Preheating fresh air prevents condensation and subsequent corrosion Steam coil, electric heater or burner are typically used 7

Coating Application Process: Surface and insulation pins should be sandblasted to near white and inspected by a third party inspector First coat is applied to surface and insulation pins First coating application should be inspected by a third party inspector Final coat is applied Final coating application should be inspected by a third party inspector To make sure there are no hot spots present on the shell infrared images should be taken during start-up Amine Tail Gas RTO -5,000 SCFM -Sour gas system w/ H2S present -Fresh air is heated to 340 o F with slip stream from hot side bypass -316L SS media support and poppet valves -Vinyl Ester Coating Amine Tail Gas RTO -15,000 SCFM -Sour gas system w/ H2S present -Fresh air is heated to 340 o F with slip stream from hot side bypass -316L SS media support and poppet valves -Vinyl Ester Coating 8

Thank You! ENVIRONMENTAL SYSTEMS, INC. 8855 N. 55 th Street Milwaukee, Wisconsin 53223 Phone : 414-365-6400 Fax : 414-365-6410 www.anguil.com More Information on Gas & Oil Abatement Technologies: www.anguil.com/industries-served/petroleum-natural-gas.aspx 9