"In a permit as all-encompassing and detailed as this, there's bound to be an area of disagreement, and we're pleased there's only one aspect we are appealing," said Hyperion Vice President Preston Phillips.

Hyperion's appeal is based solely on the numeric emission limit achievable through the application of Best Available Control Technology (BACT) for emissions of carbon monoxide from large process heaters. Hyperion and DENR are in full agreement as to the technology to be applied.

The South Dakota Department of Environment and Natural Resources (DENR) drafted the air permit to require Hyperion to meet a BACT limit of 0.007 pounds of carbon monoxide per million BTU heat input. While there are currently technologies available that will reduce CO emissions to small amounts, none are available that will consistently meet the 0.007 mark, said Colin Campbell of RTP Environmental. Campbell is one of the nation's leading air quality experts and was brought on by Hyperion to lead its air permit efforts.

"We are willing to accept all the other restrictions imposed by the board, except this one, and even on CO limits we agree with the Board's intent of minimizing emissions," Phillips said. "It's not a matter of desire, it's simply the case that there is no evidence this level can be achieved 24 -7 every day of the year. Importantly, the CO controls we proposed would be the most stringent in the country."

Monday was the deadline for filing what's termed the "Statement of Issues on Appeal" to the South Dakota Sixth Judicial District Circuit Court. Phillips said he's aware that opponents also filed a Statement of Issues on Appeal, but Hyperion has not had a chance to thoroughly review the statement, and therefore can't comment on it.

Despite the one area that Hyperion appealed, Phillips said the State did an excellent and thorough job on the air permit. The 93-page document was drafted by experts at DENR, and that draft was refined and approved by the Board, which included numerous requirements and stipulations Hyperion must meet. The process included public comment and more than 10 days of technical hearings.

Campbell, of RTP Environmental, said that in addition to the BACT for carbon monoxide from process heaters, there are several other cutting-edge technologies that regulators and Hyperion do agree will bring effective environmental controls. Among those that will be utilized by the Hyperion refinery that collectively separate it from existing facilities in the United States are:

Highly efficient removal and recovery of sulfur from:

• petroleum intermediates,
• transportation fuels
• fuel gas burned in the refinery's process heaters
• Ultra-low-NOX burners for control of nitrogen oxide emissions from all process heaters

• A wastewater treatment plant designed to incorporate both steam stripping and activated sludge biological treatment for highly effective removal of benzene and other hazardous air pollutants from water before it is discharged.
• Designing the facility to allow for the elimination of a fluidized catalytic cracking unit, which nearly all other refineries contain. These units are typically the single largest sources of emissions at a refinery.

In addition, Hyperion agreed last week to the requirement in the air permit that the company employ the use of thermal oxidizers on its hydrocarbon storage tanks, making it the first refinery in the country to do so.

The Energy Center will also use a hydrogen-producing, integrated gasification combined cycle (IGCC) power plant to provide electricity for the facility. This IGCC plant will include a patented syngas cleanup process that provides highly efficient removal of sulfur and other contaminants and also includes activated carbon for control of mercury emissions. Campbell said no existing IGCC power plant has such effective emissions controls.

"The key," said Campbell, "is that under the permit authored by DENR and authorized by the Board, the air is protected and so are residents in South Dakota and throughout Siouxland."