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Hyperion Reduces Refinery Emissions
October 14, 2010

14 October 2010
For Immediate Release

ELK POINT, S.D.—Emissions from the Hyperion Energy Center will be even less than what was approved in the initial air quality permit, Hyperion Refining Vice President Preston Phillips said today. The reductions are the result of modifications made while the company’s expert consultants were preparing the request for an extension to that air permit.

“At every step, we ask the questions, ‘What can we do to reduce emissions? What can we do to make the Energy Center more environmentally sound? What can we do to reduce our footprint?” Phillips said. “That mandate produces results.”

The reductions are primarily in two areas:

·         A ratcheting down of the CO2 emissions from the combustion turbines, reflecting the use of low- carbon fuel gas as primary fuel, because the air permit contains enforceable terms restricting the use of diesel to occasional use as backup fuel. The revisions reduced estimated emissions by 400,000 tons of CO2 per year.

·         A reconfiguration of the way the sulfur recovery plant operates. The plant lowers the amount of sulfur in the end products—ultra-low sulfur gasoline, diesel and jet fuel. That reconfiguration will reduce CO2 emissions by more than 200,000 tons annually, and SO2 emissions by nearly 500 tons per year.

Details of those improvements are included in a 52-page document titled “Best Available Control Technology Review for Greenhouse Gas Emissions.” It was submitted today to the South Dakota Department of Environment and Natural Resources, which had requested the information as part of Hyperion’s permit extension application. The document, prepared by RTP Environmental of Raleigh, N.C., was a follow-up to an earlier BACT analysis RTP conducted for the Contested Case Hearing that was part of the lengthy air permit process.

“We’re also constantly working to stay ahead of any regulatory changes,” Phillips said. “The experts at RTP have kept us ahead of the curve, especially in terms of the coming greenhouse gas regulations. That’s why we submitted the initial BACT analysis for the Contested Case Hearing, even though it wasn’t required then.”

The initial permit, drafted by DENR and approved by the Board of Minerals and the Environment, called for the construction to begin by next February. Hyperion asked that the permit be extended to allow for the construction to begin after that date.

Construction on the Energy Center is expected to begin in the second half of 2011, with startup in 2015. An average of 4,500 jobs will be created over the four-year construction phase, with the Energy Center bringing more than 1,800 permanent jobs to the Siouxland region.

The Hyperion Energy Center is permitted for 400,000 barrel-per-day refinery producing ultra low-sulfur gasoline and diesel and an IGCC (Integrated Gasification Combined Cycle) power plant. The center will incorporate green principles in its every day functions and integrate only the most advanced commercially feasible emission control technologies in its operation, as spelled out in the company’s Green Charter.

Contact: Eric Williams
                 Gallatin Public Affairs
                 509-624-7655