DEMONSTRATION OF BLACK LIQUOR GASIFICATION AT BIG ISLAND

This Technical Progress Report provides an account of the status of the project for the demonstration of Black Liquor Gasification at Georgia-Pacific Corporation's Big Island, VA facility. The report also includes budget information and a milestone schedule. The project to be conducted by G-P is a comprehensive, complete commercial-scale demonstration that is divided into two phases. Phase I is the validation of the project scope and cost estimate. Phase II is project execution, data acquisition and reporting, and consists of procurement of major equipment, construction and start-up of the new system. Phase II also includes operation of the system for a period of time to demonstrate the safe operation and full integration of the energy and chemical recovery systems in a commercial environment. The objective of Phase I is to validate the process design and to engineer viable solutions to any technology gaps. This phase includes engineering and planning for the integration of the full-scale MTCI/StoneChem PulseEnhanced{trademark} black liquor steam-reformer chemical recovery system into G-P's operating pulp and paper mill at Big Island, Virginia. During this phase, the scope and cost estimate will be finalized to confirm the cost of the project and its integration into the existing system at the mill. The objective of Phase II of the project is the successful and safe completion of the engineering, construction and functional operation of the fully integrated full-scale steam reformer process system. This phase includes installation of all associated support systems and equipment required for the enhanced recovery of both energy and chemicals from all of the black liquor generated from the pulping process at the Big Island Mill. The objective also includes operation of the steam reformer system to demonstrate the ability of the system to operate reliably and achieve designed levels of energy and chemical recovery while maintaining environmental emissions at or below the limits set by the environmental permits