by Pam Zubeck
Colorado Springs, CO – February 19, 2016 - Neumann Systems Group, Inc. (NSG) today announced results of the first sulfur dioxide (SO2) removal testing of the NeuStream® desulfurization unit at the Colorado Springs Utilities’ (CSU) Martin Drake Power Plant, Unit 7. NSG CEO Dr. David K. Neumann said: “NeuStream® worked even better than expected. The very first test of the scrubber showed an ability to remove approximately 98.6% of the SO2.” As the figure below shows, the NeuStream® scrubber reduced the SO2 in the flue gas to a very small amount. Also shown on the graph is a line indicating the State of Colorado Air Quality monthly limit (.13lb/MMBTU) for SO2 emissions. As is obvious from the graph, performance of the NeuStream® Scrubber was significantly better than the air quality standard. The test data was recorded by the EPA certified and independently calibrated and maintained detection equipment mounted on the Martin Drake Unit 7 stack. Please note that the new State Air Quality limits for SO2 for Martin Drake Unit 6 and Unit 7 do not go into effect until the end of 2017. This initial test is being followed by several months of additional system start-up, load testing, parametric testing, performance optimization and full operational testing. Construction also continues on the Martin Drake Unit 6 NeuStream® scrubber with first scheduled operation during the Summer.
The first successful operation of the first NeuStream® desulfurization system is a result of the work of the dedicated and expert NSG team under the leadership and technical direction of Dr. J.P. Feve, Dr. Eric Klein and Mr. Nick Miller. Initial testing was conducted by a joint NSG/CSU team. During the past year CSU personnel have made significant contributions to bringing the system to the current point. Their contributions are in the areas of operating software development and testing, integration of equipment and software into Martin Drake, construction project management, maintenance of installed equipment and initial checkout and testing of equipment. CSU plant operators are currently being trained to take over full operation of the NeuStream® system.
Neumann Systems Group’s work for CSU is under a cost-plus-fee contract initiated in October 2011. Under NSG’s contract with CSU, a 3% fee is to be paid to CSU for NeuStream® system and service sales and a 5% fee for sales of each NeuStream system license. These fees are to be paid for a period of ten years after commencement of commercial operation of the Martin Drake NeuStream® system.
Marketing of the NeuStream® systems has been adversely affected by the cataclysmic changes in the energy and power generation industries. By the end of 2016 approximately 400 “unscrubbed” U.S. coal-burning units will be shut down. In part this is a result of the negative current administration’s policies relative to coal as a power source for the U.S. Another significant factor affecting the market for emissions control equipment is the relatively low cost and availability of natural gas. Natural gas is an alternative fuel with essentially no sulfur emissions and lower carbon dioxide emissions. Thus there is essentially no market in the U.S. for NeuStream® desulfurization systems. However, NSG is pursuing international market opportunities including ongoing negotiations with two Chinese companies for licensing and installation of the technology. The potential market as identified by one of the Chinese companies is several thousand small, coal-fired boiler systems used for power generation, heating and industrial applications. Natural gas is generally not available in China and when it is available it costs over five times the cost of coal. Therefore, no shift from coal use to natural gas use is expected in China for the foreseeable future. Additional NSG marketing and contracts for NeuStream® carbon capture equipment to several major US oil companies for use in Enhanced Oil Recovery (EOR) have been derailed by the oversupply and precipitous drop in the price of oil. NSG continues to seek other markets for the NeuStream® technology.
NeuStream® is a disruptive “platform” technology, meaning it has potential for revolutionary impact in a wide range of product areas important to the industrial and economic well-being of the United States and the rest of the World. NeuStream® technology enables cost effective capture of pollutants including greenhouse gases from a wide variety of emission sources. It also enables the cost effective use of these captured pollutants in the production of chemicals such as fertilizers and sulfuric and nitric acids; building materials such as gypsum; rare earth and strategic metals needed for energy efficiency, electric vehicle and wind and solar applications. Additionally, the NeuStream® technology has significant potential in other areas such as increasing the efficiency of production of bio-fuels, the cost effective production of pharmaceuticals such as the anti-malarial drug Artemisinin, and CO2 for enhanced oil recovery.