2
Global leader in
production of:
SULFONE
POLYMERS
Cell Phone Components
Aviation
PlumbingKidney Dialysis
Filter Media
Water Filtration
Media
Medical
Solvay Specialty Polymers USA, LLC
Company Overview
3
Solvay Specialty Polymers USA, LLC
Marietta, OH Site Information
• 309 full-time employees
• 24/7 operation
• Former UC industrial complex
• Process heating – steam/hot oil
• Lost steam supply in 2010 (AMP Ohio
Gorsuch Plant)
• Electricity supply reliability issues
• Two polymers units – both continue to
expand – strong customer demand
Marietta, OH
The Power & Industrial group is a leading developer of energy-related projects in North
America for energy-intensive industrial, commercial and institutional customers.
• Revenue $2.2 Billion
• Net Income $95 Million
• Assets $0.9 Billion
• Employees ~700
• U.S. Presence 66 Projects in 17 States
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Power & Industrial Key Facts
Power & Industrial Headquarters
414 South Main St.
Ann Arbor, MI
DTE Energy Key Facts
DTE Energy Co. (NYSE: DTE) is a diversified energy company involved in the
development and management of energy-related businesses and services nationwide.
• Revenue $10.3 Billion
• Net Income $863 Million
• Assets $29 Billion
• Credit Rating BBB
• Employees 10,000
DTE Energy Company Overview
5
DTE P&I Project Sites
Providing fully integrated, comprehensive energy solutions
Power and Industrial Business
6
On-Site Energy projects create value for
customers by:
• Reducing operating and maintenance
costs by operating utility systems
efficiently and reliably
• Reducing labor costs
• Reducing fuel costs through fuel
switching or efficiency gains
• Reducing retail power costs through
self generation or efficiency
improvement
• Reducing or eliminating capital spend
on existing infrastructure
• Improving emissions footprint
associated with utility systems
• Offering commodity management
services to manage fuel purchases and
energy purchases/sales
• Allowing customers to focus on their
core business
[Applicable to Solvay / DTE Marietta project]
DTE P&I Third Party
On-Site Energy Value Proposition
7
Solvay drivers for CHP• Reasons for CHP – control of energy reliability, reduction of energy costs
• Reasons for third party – focus on core business, eliminate capital spend on utilities
Solvay initial development activities• RFP process – initial screen, phone interviews, short list, selection
• Technical solution – collaboration with DTEES
• Commercial structure – third party DBOOM, open-book design/procurement
• Partner with AEP to explore opportunities
Solvay/DTEES development activities• Site selection – interconnections, elevation, access, public roadways
• Risk allocation – EPC, operations, performance, commodity
• Utility interconnections – natural gas, electricity, city water
• Regulatory issues – air permitting, regulated utility triggers
EPC activities• Contractor selection
• Schedule considerations with Solvay process and temporary boiler operations
• Start-up / transition to operations
Facility Development Approach
Sizing the CHP Solution
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•Steam and power requirements
•Other sizing considerations:
–Redundancy
–Size to thermal, size to electrical, import/export thermal, import/export electrical
0
2000
4000
6000
8000
10000
Po
we
r (k
W)
Power Required and Power Supplied
Purchased from AEP Purchased from DTEES
0
20000
40000
60000
80000
100000
120000
140000
0
40
80
120
160
200Natural Gas Required and Steam Supplied
Gas Turbine NG Usage Duct Burner NG Usage Steam Demand
MM
Btu
/hr
Ste
am U
sage
(lb
/hr)
9
• Solar Taurus 70 GT
• 150 k-lb/hr HRSG
• 2 x 80 k-lb/hr package boilers
Water Treatment Make-up Water
Condensate Return
HRSGDuct
BurnerAir
8MW Gas Turbine
Natural Gas
Deaerator & Feedwater
Solvay
80kpph boiler
80kpph boiler
Power to Solvay
Facility Combined Heat and Power Configuration
• Water treatment
• Black start generation
• 1.75 miles of interconnects
CHP Development Schedule
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7/11 1/12 7/12 1/13 7/13 1/14 7/14 1/15
FCODSCOD
Request for
Qualifications
Site #1
Air Permit
App
Site #2
Air Permit
AppRaise
Site
Site #3
Air Permit
App ConstructionSelection
Proposal
London Olympics Sochi Olympics Brady Hoke’s
Last Game
Brady Hoke’s
First Game
7/11 1/12 7/12 1/13 7/13 1/14 7/14 1/15
COD
Request for
Qualifications
Air Permit
App ConstructionSelection
Proposal
Proposed
Actual
Be ready for development challenges
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AMP Ohio
Eramet
Energizer
Solvay
AmericasStyrenics
#1
#2
#3
A
B
C
D
Actual
Final
LocationE
12
Facility Construction Progress
Construction
Site on June 3, 2014
Groundbreaking
on May 14, 2014
Offloading HRSG
on June 6, 2014
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Facility Construction Progress
Project sign
on July 9, 2014
Back-up boilers
on June 17, 2014
Gas turbine
on July 10, 2014
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Facility Construction Progress
Rack supports
on August 14, 2014
Building steel
on July 29, 2014
Building
on October 2, 2014
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Solvay
• Estimated ~$6MM utility savings over life of supply agreement – varies with markets
• Enlisted assistance from AEP in 2013 – Energy Efficiency Program
Significant incentives helped with overall plant/project justification
• Utilities largely provide by CHP
100% of Solvay steam and 97% of Solvay electrical requirements provided by CHP
Continue to provide steam to Americas Styrenics
• Platform to evaluate new opportunities including efficiency improvements, expansion,
additional systems
DTE P&I
• $35 million installation over 18 months
• 10 full-time O&M jobs, 100+ construction jobs
• 20-yr supply agreement (CHP property leased to DTE Marietta)
• Coordination committee (w/ Solvay for key O&M decisions)
• Similar DTE P&I facilities:Cincinnati, OH industrial complex CHP
Ashtabula, OH industrial complex CHP
• New regional CHP opportunities in OH, WV, MI, and KY
What does CHP mean to Solvay and DTE P&I
today?
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DTE Marietta constructed, owns, and operates a natural gas-
fired cogeneration system to supply steam and electricity to
Solvay Specialty Polymers USA in Marietta, OH under a long-
term energy services agreement.
• Experienced team
• Collaboration of
parties
• Transparency of
costs, as necessary
• Aligning interests of
parties
• Life cycle
perspective
• Risk analysis and
allocation
Characteristics of a Successful Third
Party CHP Project
COD on February 1, 2015
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1. Drivers for outsourcing – modernizing infrastructure, right-sizing infrastructure,
fuel switch, conservation of internal resources
2. Counterparty details – rated entity, creditworthiness
3. Term expectation – minimum/maximum
4. Commercial operation date expectation – drivers, absolute deadline
5. Decision process/milestones
6. Power requirement – voltage and expected MW with as much granularity as
possible (hourly, daily, monthly, seasonally, annually, etc.) – demand side review
7. Steam requirement – pressure, temperature, and expected flow with as much
granularity as possible (hourly, daily, monthly, seasonally, annually, etc.) –
demand side review
8. Condensate return requirement – temperature and expected flow with as much
granularity as possible (hourly, daily, monthly, seasonally, annually, etc.) –
demand side review
9. Fuel purchase obligations – pass-through actual
10. Land availability – greenfield/brownfield
11. Land ownership – lease/purchase/site license
CHP Project Considerations
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12. Land condition – environment issues, indemnities
13. Current steam/power configuration – electric utility, natural gas utility, other fuels,
existing equipment
14. Industrial interconnections responsibility – install/own/maintain
15. Utility interconnections responsibility – natural gas, electric
16. Existing infrastructure/site services – available back-up equipment, water
treatment, waste water, potable water, fire water, compressed air
17. Capital cost treatment expectation – open book, closed book
18. Permit expectations – air, water intake, water discharge, separate permits,
combined with existing
19. Operations approach – labor, routine maintenance, major maintenance, etc.
20. End of term expectation – seller own, buyer own, seller purchase at fair
market value, remove, abandon in place
21. Termination event expectation – Buyer events, Seller events, extended
force majeure, change in law, cure periods, termination payments,
ownership
22. Incentives – federal, state, and local
23. Draft term sheets or pro forma agreements
CHP Project Considerations
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Mike Larson
Director, Business Development
DTE Energy Services
(o) 734-302-8925
(c) 734-353-0537
Thank You