The call didn’t happen on Friday. I will let you know as soon as
we have another call scheduled.
From: Hunter Biden
[mailto:hbiden@rosemontseneca.com]
Sent: Friday, March 12, 2010 6:52 PM
To: Avi Goldberg
Subject: RE: Delaware City Opportunity
This call I assume is not
happening until Monday.
R. Hunter Biden
Rosemont Seneca Partners, LLC
1010 Wisconsin Av., NW
Suite 705
Washington, DC 20007
202-333-1880
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From: Avi Goldberg
[mailto:AGoldberg@GreatpointEnergy.com]
Sent: Friday, March 12, 2010 12:20 PM
To: Hunter Biden (hbiden@senecaga.com)
Cc: Avi Goldberg; Andrew Perlman
Subject: Delaware City Opportunity
Importance: High
Hunter,
As per our conversation yesterday, below is a short description
of the opportunity that we are looking at for the Delaware City Refinery. I’m still
waiting on call in information for the 1pm est call.
Best,
Avi
The existing gasification plant at the Delaware City refinery
uses petroleum coke generated by the refinery to produce syngas that fuels a
power plant (cogen). The plant was completed in 2000 and replaced coke-fired
boilers that were among the worst polluters on the East Coast. The new
cogen facility produced all of the refinery steam need and sold power to the
PJM power network. The plant was shutdown recently after operating for more
than ten years; coinciding with the shutdown of the refinery's coker. The
gasification plant operated quite well for several of those years, and
apparently not as well for others. This is not uncommon: gasification includes
operating aspects not common to other processes and requires dedicated training
and a learning curve. This is difficult in a plant that changed ownership – and
operating staffs - at least three times in that ten year period.
Our plan forward would be to acquire the existing gasification
plant – the gasification plant, the air separation unit that feeds oxygen to
the gasifiers and nitrogen to the turbines, and the two-turbine cogen
plant. The cogen plant could be divested to a power project developer
simultaneously or after our purchase. We would likely fold the existing
two-train gasification unit into one operating train, which would free up coke
feed and gas cleanup capacity for a GPE Bluegas demonstration unit. We
would operate the existing gasification train while we were fund raising for,
designing, and constructing, our demo unit, providing cash flow for our
company. Product gas would from both units would be sold to the cogen
plant owner/operator.
The plan is not without challenges, for example, the sulfur
recovery unit and most of the treatment of both intake and effluent water is
shared with the refinery. Arrangements to share or plans to construct -
and permit - these key plant pieces would have to be made to make the project
successful.