CDS(Combustion & Energy) Technology IM(Information Memorandum)

2017. 05

This document is security data that can not be leaked to third parties without permission of CDS SE. Civilian problems may arise when leaking.

Providing differentiated solutions for the energy and environment sector

Centrifugal & Divided Space Saves Earth

Overview

CDS SE is the company who produce high efficiency industrial combustion system with

CDS own technology and supply clean energy with ultra high temperature combustor.

Company Name : CDS SE

CEO & Established : Dr. Jaeou Chae, June 16, 2014

Business : Production of combustor, Heat, steam and power generation by waste materials.

☞ Spin-off from CDS Global for small and medium capacity combustor

1 100% Korean original technology

3 Provides low production costs as well as low maintenance costs while minimizing air pollution

2

Provides ultra high temperature combustion with all kinds of flammable materials by controlling only air flow without any other fuel or auxiliary devices

Key value of CDS Combustion Technology

Company overview

1/12

1970 ~2000 Developed unique CDS combustion technology by the brother of Jiwon Kim and Jiwan Kim.

2000. 11 Applied Patent for “Centrifugal & Divided Space combustion method” and produce a prototype

2001. 7 Established CDS Global Co., Ltd

2002. 2 Obtained Patent on “Combustion Method for all combustible materials with high temperature and high speed air”

2004. 4 Obtained Foreign patents(USA, Japan, China, Australia, Russia, HongKong, NewZealand, etc.

2007.5-2012.5 Launched Commercial size combustor to Korean market (BYC plant, Daesang, Korea Pulp,

CJ Incheon, Chunil Paper)

2008. 3 Obtained patents in European countries(UK, France, Germany, Swiss)

2012. 3 Completed development of 4th generation CDS Combustion Technology

eliminating “Clinker” automatically in the chamber

2013. 2 Launched the first commercial scale (steam 1.5T/h) with the 4th generation CDS technology

2014. 6 CDS SE incorporated aiming for small and medium capacity combustor/incinerator

2014.12 CDS technology briefing to the Korea President Park Geun-hye

@POSCO creative economy center

2015.1 Contract with POSCO for business joint development and business

tie-up

History

2/12

Intellectual property of CDS Global Co., Ltd

Since 2002, in response to the continuous technological development, CDS Global

obtained local and international patents for core technologies.

Registration of over 10 domestic patents and designs

Patented in 12 countries (USA, Japan, China, Europe, etc.)

3/12

Internal combustion temp. and flow CDS combustor 3-D model Temp. distribution Flows in combustor

Air Inlet : flow of combustion air into a double cylindrical structure of the

combustor via strong rotation.

The air flowing from top to bottom along the inner wall forms an Air-Curtain which prevents from direct contact of high temperature combustion gas on the wall.

Air preheating & combustion : The air in the lower sector is preheated to 500℃.

Combustion temperature above 2,000℃

Complete combustion of retardant wastes and minimizing air pollutants

Remove Ash & Prevent forming “clinker : By strong rotation of air,

The bottom/fly ash move to the wall and release out automatically to the ash bucket.

Prevent forming “Clinker”

※ Video of computerized simulation evaluation ( 1’ 9” )

Principles of CDS Combustion technology

4/12

Principle of CDS Combustion technology(Video)

5/12

Analysis of Combustion Flow of CDS Combustor

Click here

Principles of CDS Combustion Technology

6/12

Above 2,000 ℃ Ultra high temperature through 2 times preheating upto 500 ℃ in the CDS combustion chamber.

① Temp. of combusting air(Preheating temp.) 200℃

② Temp. of combusting air(Preheating temp.) 300℃

③ Temp. of combusting air(Preheating temp.) 400℃

④ Temp. of combusting air(Preheating temp.) 500℃

⑤ Temp. of combusting air(Preheating temp.) 600℃

Theoretical background of Ultra high Temperature Combustion.

Air volume(equivalence ratio)

Adia

batic fra

me te

mpera

ture

①

②

③

⑤

④ CDS preheating state

Preheating

temperature

Max

Ultra

high

temp.

flame

7/12

Comparison with existing technology (1)

Ultra-high temperature combustor fueled by waste materials for 30 years

Completed the development of high efficiency, low pollutants, ultra-high temperature combustor ( 15 ton/hr ) on September 2013

스토커 방식

Rotary kiln 방식

유동상 방식

CDS 선회식 연소기

100% independent tech.

Below 1/3 compare the same level

Simple structure and small size

Low O&M cost

Foreign sources

Short lifespan and frequent breakdowns

Larger compare to incineration quantity

Complex and larger structure

High operation & maintenance cost

Installation cost

Lifespan

Size

Original Technology

O&M

Plasma 열분해 용융방식

CDS Ultra-high temperature state-of-the-art combustor

(No auxiliary fuel and automatic operation)

Guarantee over 20 years lifespan (continuous operation for long time)

8/12

Ideal technology for waste-to-energy

item

Types Clinker

Combustion

Temperature

(℃)

Complete

combustion

(CO,ppm)

Starting

hour

(hr)

Shut down

hour

(hr)

Cooling

hour

(hr)

Sizenote1) Remarks

CDS type × 2,000 〈 10 〈 0.1~0.2 0.5~1 2 1 CDS SE

Stoker-type ○ 1,000 〈 50 〈 3~10 5~10 24 4 Germany, Korea

Fluidized bed

type ○ 1,000 〈 50 〈 1~3 2~5 24 4 Ebara

Rotary kiln ○ 1,200 〈 50 〈 1~2 2~3 12 3 Worldwide

Pyrolysis × 1,400 〈 50 〈 1~3 3~5 24 3 Worldwide

Plasma ○ 1,400 〈 30 〈 0.5~1 2~3 24 3 Russia, Korea

Cyclone ○ 1,200 〈 50 〈 0.5~1 1~2 24 2 Worldwide

note1) Relative size displayed when the size of CDS combustion chamber is 1

High temperature combustion with good efficiency

Durability highly increased by prevention of clinker occurrences

Comparison with existing technology (2)

Detailed comparison with traditional technologies

9/12

Technical Key features of the CDS Combustion technology

Refractory brick wall is not necessary

Air cooling system

Forming air curtain in the chamber

1

5

2

3

4

Environmental friendly combustion

Complete combustion of various fuels

Minimization of hazardous gases such as dioxin

High temperature combustion over 2,000 ℃

Fundamentally prevention of clinker

Protected by patents

Unique structure of the furnace

Automatic removal ash and dust

Ultra-high temperature combustion

Above 2,000℃ temperature combustion(high-calorie, high-efficiency)

Miniaturization

Compact size with same performance comparing other systems

10/12

Application field of CDS Combustion Technology

※ Production quantity of Petro-cokes : 120million ton/year

Waste tire : 209million/year (USA)

cokes

Waste tire

coal

Fuel CDS Combustor

1500℃

2000℃

500℃

1000℃

Application

Thermal power

generation

Steel industry

Cement industry

Steam supply/power generation

District heating

Coal gasification/ IGCC

SRF production

11/12

Construct of power generation plant fueled by waste tire

Construction of Energy recovery plant of RPF, RDF, waste tire, waste SRF and ASR.

Energy producing plant by organic sludge treatment

Development of special smelting furnace for valuable metal recovery

Supply in larger number of small size incinerator

12/12

CDS new technology based

Main project status

Appendix 1. 1.Result of POSCO’s Internal review on CDS combustion technology (1)

Summary Review supervision : New biz dept ( Mr. Park/team leader) / RIST ( Dr. Na )

Review period : 2013.6 ~ 2014.3(9months)

Review content : Possibility of new tech. business and verification on core technology of ultra-high temp. / direct combustion.

Review method : Simulation evaluation

Review result

Verified the new ultra-high temp. combustion tech. based on computer simulation of CDS combustion tech. (2013.9)

Cost reduction by new tech. of iron ore smelting using cheaper coal

High business value on the incineration of POSCO’s waste and enter to the World Environmental/Energy Market

Selected task for analysis of new tech.

• Confirm flow pattern in CDS combustor

- Combustion flow field Evaluation of Lab Scale burner

- Combustion flow field Evaluation of CDS combustor(10 Ton/HR steam, real scale)

- Combustion flow field evaluation as per change of air flow and top/bottom flow air ratio

• Performance evaluation of combustor as per fuel volume and flow volume

• Evaluation of ASH movements

Evaluation method of new tech.

• Flow of combustor inside is normal condition turbulent flow

• Combustion model is simple model as Instantaneous(1step)

• Radiation model is SnDOM model

• Analysis solver : CFD-ACE+

• Grid : CFD-VisCART

# 1/5

Appendix 1. 1.Result of POSCO’s Internal review on CDS combustion technology(2)

Flowed-in Air from upper nozzle is not reaching to floor surface(fuel) in case the flow ratio is 1:1, and is reaching to around the fuel in case the flow ratio is 4:1

In case the Flowed-in air from upper nozzle descend enough(flow ratio 4:1), surrounding temperature of solid fuel is over 600℃

Air descent quantity flowed in from upper air

(a) Flow ratio 1:1 (b) Flow ratio 4:1

Temperature inside combustor

Shape and Result of conditional simulation on CDS Combustor(Lab Scale)

(a) Flow ratio 1:1 (b) Flow ratio 4:1

# 2/5

Appendix 1. 1.Result of POSCO’s Internal review on CDS combustion technology(3)

V-velocity compare according to outlet diameter change

V v

elo

city

direct

ion

100m/s

100m/s

160m/s

40m/s

(c) Max. temp. and average temp. of outlet/1st chamber

Shape and Result of conditional simulation on CDS Combustor(Lab Scale)

Flow filed change as top and bottom air ratio change in Air nozzle

It is higher temp. on 2nd chamber with the Air ratio 4:1 than 1:1

Combustion flow field prediction according to outlet diameter change of 1st chamber

No back flow in case the outlet diameter is below 1100mm

(a) Flow ratio 1:1 (b) Flow ratio 4:1 # 3/5

Appendix 1.Result of POSCO’s Internal review on CDS combustion technology(4)

Flow change around ash bucket (gap part) : underbody gap

Air ratio 1:1 : flow into 1st chamber on underbody gab

Air ratio 4:1 : flow into ash bucket on side surface of underbody gap and outflow of gas from ash inlet of floor surface to 1st chamber

Radial speed come into the Ash room

(c) Pic. of Ash room

(a) Flow ratio 1:1 (b) Flow ratio 4:1

(a) Flow ratio 1:1 (b) Flow ratio 4:1

# 4/5

Appendix 2. Component analysis of exhaust gas

# 5/5

Unit RPF quality basis Analysis result

Object waste

․ combustible waste

(except designated,

infections )

․ waste plastic content : over

60%

․ combustible waste

(except designated,

infections )

․ waste plastic content :

over 60%

Shape/Size

․ fixed shape

(circle cross section

conversion)

․ Dia. : 〉 50 mm

․ Length : 〉100 mm

․ Cylinder shape

․ Dia. : 18 mm

․ Length : 56 mm

Lower caloric value

〈 6,000 kcal/kg 7,240 kcal/kg

Moisture content 10 % 1.54 %

Ash content 〉20 % 8.90 %

chlorine content 〉2.0 % 0.60 %

Sulfur content 〉0.6 % 0.01 %

Etc.

mercury 〉1.20 ppm 0.5 ppm

Lead 〉9.0 ppm 4.3 ppm

cadmium 〉200.0 ppm 44.9 ppm

Arsenic 〉13.0 ppm ND

Unit condition

input 0.94 ~ 1.36 ton/hr

Outlet temp. of 2nd combustion chamber

800 ~ 1,100℃

Supply quantity of combustion air

16,000 ~ 22,000 sm3/hr

Unit 1 2 3 기준

Fuel inlet(ton/hr) 0.94 1.26 1.39 -

Inlet combustion air(sm3/hr)

16,884 21,488 20,328 -

emission gas(sm3/hr)

21,598 26,045 28,208 -

2nd combustion chamber(℃)

890 1,052 1,078 850이상

CO(ppm) 0 4 0 200

CO2(%) 3.60 5.40 7.50 -

NOx(ppm) 26 57 60 100

SOx(ppm) 5 2 7 50

O2(%) 14.40 11.30 10.80 -

Test report of Waste plastics(RPF) combustion

Satisfy the required condition on the mass waste material incineration, over 1 ton/hour.