quality assurance presentation

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1 Expertise. Reliability. Compliance. Reliable Quality ADA-CS is in control of all pieces of the supply-chain Custom erInve ntory Managed Measured Feedback Delive ry On-Time In-Full Transp ort Dedicated Equipment Trained Personnel Custom er Servic e Dedicated Contacts Robust Systems Finish ed Invent ory Product Integrity Cross- Contamina tion Preventio n Final QC Produc t Finish ing Surface Modificat ion Product Sizing WIP Produc t Inventory Planning Quality Control Proces s Design and Contro l Activatio n Condition s Automatio n and Control QA Testing and Process Feedback Raw Materi als Coal Sourcing Coal Extractio n and Handling Mercury control technology PAC producers vary in terms of their control over the key elements of their supply chain. In some cases, suppliers rely 100% on toll manufacturing and licensed technology. In others, PAC is imported from overseas and finished or treated domestically. In the case of ADA-CS, we control everything from the selective mining of coal through processing all the way to the transportation assets used to deliver carbon. We control it all and therefore can ensure quality, consistency and reliability.

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1Expertise. Reliability. Compliance.

Reliable Quality

ADA-CS is in control of all pieces of the supply-chain

CustomerInventory

•Managed•Measured•Feedback

Delivery

•On-Time•In-Full

Transport

•Dedicated Equipment

•Trained Personnel

Customer Service

•Dedicated Contacts

•Robust Systems

Finished Inventory

•Product Integrity

•Cross-Contamination Prevention

•Final QC

Product Finishing

•Surface Modification

•Product Sizing

WIP Product

•Inventory Planning

•Quality Control

Process Design

and Control

•Activation Conditions

•Automation and Control

•QA Testing and Process Feedback

Raw Materials

•Coal Sourcing

•Coal Extraction and Handling

Mercury control technology PAC producers vary in terms of their control over the key elements of their supply chain. In some cases, suppliers rely 100% on toll manufacturing and licensed technology. In others, PAC is imported from overseas and finished or treated domestically. In

the case of ADA-CS, we control everything from the selective mining of coal through processing all the way to the transportation assets used to deliver carbon. We control it all and

therefore can ensure quality, consistency and reliability.

2Expertise. Reliability. Compliance.

QA/QC Policy and Approach

1. It starts with a selective and precise approach to mining coal as a feedstock as opposed to a fuel.

2. Our laser focus on flue gas mercury control means that we can optimize our processing conditions with one purpose in mind…..and then automate it to ensure consistency.

3. We have developed meaningful QC tests that correlate directly to dynamic in-flight capture in a flue gas application.

4. We control every aspect of physical material control including transportation assets to ensure against product contamination.

4 Key Steps to Ensuring Reliability and Consistency

3Expertise. Reliability. Compliance.

Step 1: Consistent Raw Materials

• We made a strategic investment in Five Forks Mine

– 100% of the coal is mined with our specific purpose in mind

– This mine operates in a very different way than a typical coal mine

– We are very selective about the coal that we produce and deliver to the plant

– 20+ year supply of coal reserves under lease

– Close proximity to our plant• Operated by a subsidiary of the

North American Coal Corporation• Full integration within our

operations team

Quality Control Processes Produce Coal as a Critical Raw Material for PAC as Opposed to a Fuel

4Expertise. Reliability. Compliance.

Step 2: Constant Process = Constant Quality

• Red River represents the most automated, most efficient and environmentally friendly PAC plant in North America.

– 6000 points of automation – Over 15 sampling locations checking in-process quality

• Our focus on Mercury Control means that we ONLY make one furnace product

– Allows us to optimize performance for one application– Set process operations and automation capability

ensure consistency

• We invest in our people – Our investment in training is 12% of our labor cost– Highly trained, highly engaged workforce– Quality is a culture that permeates everything we do

“Quality is not an act. It is a habit.”.... Aristotle

5Expertise. Reliability. Compliance.

Step 3: Specifications and Measurements that Matter

We Measure What Matters in Mercury Control

Have you ever wondered…..”what does iodine number or surface area mean in terms of performance in mercury capture??”Don’t worry…..so have we. So we studied it.

Surface area is not a reliable predictor of in flight mercury captureThe same can be said for other traditional measures of quality like ash, moisture, methylene blue etc.

Our approach is to combine meaningful applications testing with analytical testing.

ADA Carbon Solutions Dynamic Mercury Index (DMI)• Over 3 years ADA Carbon Solutions developed a

bench scale test that mimics in flight mercury capture

• Demonstrated repeatability and reproducibility• Demonstrated strong correlation to in field results

6Expertise. Reliability. Compliance.

• Dedicated trailers and railcars

• Trained drivers

• Operate 4 commercial transload stations today; more in the future as usage increases

• Efficient, safe and clean delivery

• Close coordination with your plant and ACI equipment vendors to ensure effective PAC delivery into the duct

• Run contemporary S&OP process internally

• Focused on Power industry and sensitive to reliability requirements

Reliability Delivered to Your Door

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Step 4: Control Over Transportation Assets

7Expertise. Reliability. Compliance.

Summary • We are 100% focused on power plant mercury control.

• As a result everything we do is done with the concerns of the power industry in mind.

• “Quality is not what happens when what you do matches your intentions. It is what happens when what you do matches your customers’ expectations.” Control over raw materials

Control over processing conditions

Deployment of meaningful QC testing that correlates to mercury capture performance

Control over delivery assets to limit opportunities for contamination

If Quality and Consistency are important and concerning to you, let us explain in further detail our approach to quality assurance. As a supplier that is 100% focused on the

energy industry, we are keenly aware of the importance of reliable performance. This presentation offers a highlight of our approach but there is much more detail behind the story. We would be very happy to visit and explain our full and unwavering commitment

to quality.