Ashland Advanced Materials

WORKING TOWARD ENERGY SUSTAINABILITY ENVIRONMENTALLY

RESPONSIBLE

Public Participation Process • Required under NYSDEC permitting

process; Environmental Justice Process• Seek community input on the

environmental permit review process• Public meetings: Oct. 20 and Nov. 3 • We have received and continue to

accept written comments up to November 7th

• Complete and submit Final Report on November 14th

Who we are

• We are a family owned carbon and graphite products company with operations in Ohio and New York

• Primary owners are Lee Reineke and Matt Reineke, father and son with over 65 years of combined experience in carbon and graphite manufacturing

• We currently have 85 people working with us and supporting their families and we are looking to grow this to over 150

• Our company is involved and contributes in the communities we live and work in

What we do

• Create sustainable competitive advantages to support long term employment opportunies

• Treat all of our people, our customers, our vendors, our competitors, our neighbors, and our local community with integrity and respect

• EXPORT PRODUCTS – NOT JOBS

What we make

• Advanced carbon and graphite products focusing our growth on applications in emerging technologies for green and renewable energy

Specialty Graphite Powders Carbon fiber products

What are our products used for

OUR PRIMARY PRODUCT AND FUTURE GROWTH FOCUSES ON EMERGING TECHNOLOGIES FOR GREEN AND

RENEWABLE ENERGIES WHERE CARBON AND GRAPHITE ARE A KEY COMPONENT.

Solar Power

Production of silicon for use in solar panels for power generation

Li-Ion batteries

High purity powders for Anode applications in Advanced Batteries for Hybrid and Electric vehicles

Fuel Cells

Membrane electrodes and separator plates for stationary fuel cell generators

Wind Power

Future products to include carbon fiber products for wind turbine blade manufacturing

Where are our customers?• USA• China• Taiwan• Europe• Canada• Japan• Korea

• We expect over 50% of our products and services to be exported – Exporting Products and Bring Jobs back to America

What did SGL make?

Steel Production

Ashland Advanced Materials compared to SGL Carbon • Estimated 8,000 tons of electrodes

and bulk graphite produced yearly

• Acheson graphitizing, pit furnace baking – antiquated equipment with grandfathered air emission standards

• Over 800,000 square feet of antiquated manufacturing space on 75 acres

• Focused on products for the steel industry

• German based, multinational company public company

• Planned Production of 200 tons of carbon fiber products and heat treating of 300 tons of carbon powders.

• State-of-the-art ultra low emission carbon baking and ultra-high temperature heat-treating equipment new permits applied for meeting current emission standards

• 75,000 square feet of newer

manufacturing space on 15.5 acres

• Focused on green and renewable energy products

• Family owned, private USA based company

SGL Carbon Ashland Advanced Materials

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PM SO2 NOx CO VOC HAP

SGL Carbon (1998)

Ashland AdvancedMaterials

DEC Major Air Source Thresholds

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Emissions Chart

Why 6100 Niagara?

• Existing infrastructure located in Niagara engineered and constructed in 1998 by SGL for a new product line fits our needs providing low capital cost of entry into our markets

• Hydro power provides low cost, clean energy

• Talented labor pool readily available• State and local support for tax

incentives, grants and training programs

Our Plans

• Propose manufacturing facility at 6100 Niagara Falls Blvd. at former SGL Carbon plant

• Invest $19.2 million over the next five years to modernize existing site

• Produce 75 new full-time jobs over next three years

• Clean up and improve the existing industrial site

Ashland Advanced Materials• Air Emissions• Odor• Noise• Traffic• Storage of Raw Materials• Fire prevention and safety

Permits

• Air State Facility Permit

• SPDES – Stormwater Discharge

• Industrial Discharge Permit (Sanitary Discharge)

How do we make our products

Primary Processes• Carbonization (Carbon Sager Can Baking)

o Processing of materials in a controlled atmosphere inside of stainless steel containers to temperatures up to 1100C

• Convert raw materials to carbon• Convert binder materials to carbon

• Graphitizationo Processing of carbon materials in the absence of

oxygen to temperatures up to 3,000 C• Convert carbon materials to a graphitic structure

Carbon Sager Baking furnace

• State of the art gas fired box kiln•Over $3.5Million Replacement cost •High efficiency heating system •PLC automation controls for all operations•Completely Rebuilt and retrofit in 1998 and shut down in 2000•99% efficiency thermal oxidation system for emissions

•PLC controlled and automated•Operation chart recorded and kept on record for the DEC•Automated Alarm and shut down for system malfunction

Thermal Oxidizer 99% efficiency in reduction of emissions

PLC controls for furnace and thermal oxidation system – new in 1998

Air Emissions

• Emissions from the main sager furnace will be treated via a thermal oxidizer prior to release to the atmosphere

• Thermal oxidizer will destroy over 99% of the volatile emissions.

• A second thermal oxidizer will control emissions from electric induction furnaces

• Emissions will be a fraction of those previously discharged by SGL at this site and will comply with all applicable ambient air quality standards

Graphitization furnaces

• State of the art Induction heated furnaces• Everything installed NEW 2008• Closed system design with inert gas purge to

reduce and/or eliminate CO2 emissions• Primary products heat treated have negligible

volatile release (no emissions)• 99% efficiency thermal oxidizer installed for use

on special production requiring emission reduction control

• System designed and operated to meet current emission standards set by EPA and DEC

Air Emissions

• Stack emissions will not be visible with the exception of a thermal (vapor in cold weather) discharge

• We anticipate that the NYSDEC will classify the facility as a synthetic minor facility requiring a State Facility Air Permit

• Ashland will be in compliance with all applicable air quality standards (protective of human health)

• No visible particulate emissions• Particulate emissions within the buildings will be

captured and filtered for potential reuse of the particulates

Odor

• Raw materials used in the process release minimal odors

• All materials processing will be performed inside the buildings to minimize the potential for odor release

• Thermal oxidizers are designed to remove 99% of odor generated from air emissions

• You won’t even know we are there

Noise

• Process involves minimal use of mechanical equipment so process related noise generation will be limited

• All processing will be performed inside the buildings to mitigate noise generation

• Site-related noise levels will be limited to traffic noise attributable to trucks and vehicles accessing the site, and will not be noticeable given the large volume of traffic and related noise already present on Niagara Falls Boulevard

Traffic

• NYSDOT traffic volume reports for Niagara Falls Boulevard indicate that the annual average daily trips (AADT) near the proposed Ashland location was approximately 27,405 in 2006 and 27,040 in 2007

• The anticipated average traffic volume associated with the proposed Ashland facility is approximately five truck deliveries (10 trips) and 75 employees (150 trips) per day, which equates to an insignificant increase of approximately 0.6% on the overall traffic volume on Niagara Falls Boulevard

• Truck traffic to the site will be on and off the I-190, which limits the travel distance on Niagara Falls Blvd.

Storage of Raw Materials

• All raw materials will be stored inside our facilities in accordance with all applicable requirements

Fire prevention and safety

• The facility has been designed and is being prepared to be compliant with all applicable building and fire codes

• We are working with fire safety consultants and we plan to meet with the local fire company to familiarize them with the facility and to discuss appropriate contacts and actions in the event of an emergency

Strategic importance of our project for Niagara Falls and for the state of NY

• We will be providing good paying, long term jobs for the area.

• Start of a nucleus for green and renewable energy related product companies

• Tax revenue from payroll and operations

Strategic Importance for the USA

• Energy Independence is crucial for America to remain a world leader

• Reduction of greenhouse gases crucial to combat global warming

Current Facts and Figures• America imports 70% of its oil and uses 75% percent of this

for transportation purposes• Coal accounts for 50% of the electric generation in America ,

Nuclear power 20% percent, natural gas 26% with the remaining 4% split between hydroelectric, wind, solar and other renewable sources.

• Electric generation is responsible for 41% of U.S. manmade carbon dioxide emissions and the majority of the SO2 emissions.

• Total global production of oil is currently approximately 85 million barrels of oil per day, Total estimated demand is at 87 million barrels of oil per day with India and China increasing this every day

• A 1,500 MW coal plant will emit on average 122,000 tons of SO2 per year into the atmosphere

Green facts and figures• There is enough wind world wide to satisfy global electricity

demands seven times over based on a 20% capture rate• Forty six states have sufficient winds to produce commercial

wind power• North Dakota alone could supply 1/3 of the nations electricity

needs with wind power.• Denmark has 21.6% of its power generated by wind• There is enough solar energy available every day to generate

5,000 times the world’s demand for energy• Silicon (same as used in solar panels) is the seventh most

abundant element in the universe and the second most abundant in the earth’s crust

• Stationary Fuel cell generators use natural gas to create energy at 80% efficiency with the only by product being pure water.

• LI-Batteries have six times the power density of lead acid batteries (KW per KG of weight) and make long range electric vehicles viable

Estimated Environmental & Energy Independence Benefit of Ashland’s operations

2009 - 2013

SOLAR PRODUCTS PROJECTED TO BE PRODUCED AT ASHLAND ADVANCED MATERIALSEstimated Yearly Estimated

Year MW's SO2 Reduction (tons) Cummulative Tons2009 2,976 239,372 239,3722010 4,464 359,059 598,4312011 5,580 448,823 1,047,2542012 7,440 598,431 1,645,6852013 8,928 718,117 2,363,802

29,388 2,363,802 5,655,173FUEL CELL PRODUCTS PROJECTED TO BE PRODUCED AT ASHLAND ADVANCED MATERIALS

Estimated Yearly EstimatedYear MW's SO2 Reduction (tons) Cummulative Tons2009 19.2 1,544 1,5442010 48 3,861 5,4052011 96 7,722 13,1272012 192 15,443 28,5702013 240 19,304 47,874

595.2 47,874 94,977

BATTERY PRODUCTS PROJECT TO BE PRODUCED AT ASHLAND ADVANCED MATERIALS# of cars equal to Estimated

Year reduction of emissions Cumulative Total2009 13,091 13,0912010 26,182 39,2732011 98,182 137,4552012 196,364 333,8182013 261,818 595,636

1,106,182

Information on the project is available at:

Department of Community Development1002 Main Street

Earl Brydges Public Library1425 Main Street

Niagara Falls Housing Authority Resource Center3001 Ninth Street

You may also call or write us for information:

Ashland Advanced Materials, LLC6100 Niagara Falls Blvd.Niagara Falls, NY 14304(716) 283-6853

Written comments should be submitted to:

Ashland Advanced Materials, LLCAttn: President6100 Niagara Falls Blvd.Niagara Falls, NY 14304

Final Report

• Steps taken to implement public participation plan

• Identify substantive concerns and comments and outstanding issues

• Include certification that Ashland complied with public participation plan

• Attachments

Final Report

• Attachments: Public Participation Plan, List of Stakeholders, Project Fact Sheet, Environmental Justice Analyses, Public Meeting Notices, Public Meeting Advertisements, Newspaper Articles

• Submit Final Report and Certification to NYSDEC

Thank You