INNOVATIVE SOLUTIONS FOR DUKE ENERGY

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INNOVATIVE SOLUTIONS FOR DUKE ENERGY
INNOVATIVE SOLUTIONS FOR DUKE ENERGY

INNOVATIVE SOLUTIONS   Advanced Wall Technologies, LLC
INNOVATIVE SOLUTIONS FOR DUKE ENERGY
INNOVATIVE SOLUTIONS                                        Advanced Wall Technologies, LLC

 Background                                                           How it Could Work
 On Sunday, February 2, 2014, Duke Energy employees                   Based on the new laws and the desire of Duke to do things
 noticed coal ash waste was spilling from one of its coal ash         more sustainable and green oriented in the future, Duke has
 ponds into the Dan River near Eden, North Carolina. This             an opportunity with industry partners to be a leader
 spill trigged much debate on the proper handling of coal ash in      concerning coal ash management. A potential partner solution
 wet basins, both inactive and active facilities.                     would be to use the AWT system of encapsulation in every
                                                                      facet of the strategic solution.         Depending of physical
 Following the Dan River coal ash spill, revelations that coal        characteristics of each facility, Duke faces a myriad of
 ash pollution has contaminated rivers, lakes, streams and            choices, such as: to close ash ponds in place, relocate ash to
 drinking water resulted in an unprecedented public demand            another part of its property, convert the pond to dry storage, or
 for action. Duke Energy produces an estimated 1.2 million            ship ash out to a beneficial reuse project using different
 tons of coal ash a year in North Carolina. It has been reported      aspects of the AWT system. Compared to the solutions
 by media that all coal ash sites have groundwater                    pushed by some groups, the AWT system allows for coal ash
 contamination and nearly all are releasing contaminants into         re-use, which benefits the environment and provides Duke
 rivers, lakes or reservoirs.                                         tremendous economic relief. There is no reason to have any
                                                                      coal ash shipped out for straight disposal. Why use valuable
                                                                      landfill space with a product that has tremendous value as
 On August 20, 2014, the NC General Assembly passed S                 structural fill or re-use in everyday products, such as concrete
 729, the Coal Ash Management Act of 2014.                            and bricks.
                                                                      AWT believes that allowing engineering firms, material ash
 The bill requires Duke Energy to phase out wet ash handling.         management companies, and municipal or private landfill
 Duke’s method of disposing of coal ash in ponds next to              owners to try and piece together a solution is the wrong
 waterways has led to concerns over water contamination               approach. Duke needs to be in charge and should consider a
 across the state. With the passage of this bill, all coal ash will   global approach to manage the situation and deploy the
 be covered by North Carolina’s solid waste laws. Further,            proper technology and partners on a facility by facility basis to
 when coal ash is used as fill to build up land for large             reduce cost while balancing environmental needs.
 construction projects, measures like groundwater monitoring
 and liners will be required.

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INNOVATIVE SOLUTIONS FOR DUKE ENERGY
INNOVATIVE SOLUTIONS                                               Advanced Wall Technologies, LLC

 Duke Options                     (ranked by financial priority)        AWT Innovative Solution
 •   ONSITE:   Cap in Place
      –   Maintain proper hydrostatic barriers and create                    By utilizing the AWT technology, Duke
          structure stability                                                could use the coal ash “to fix itself”.

 •   ONSITE:   Wet Basin to Dry Disposal                                      By utilizing the AWT technology, Duke
               Conversion                                                     could use the coal ash to convert the
      –   Creating a dry, lined disposal facility                             wet basin to a dry disposal facility.

 •   ONSITE:   Creation of Dry Disposal                                       By utilizing the AWT technology, Duke
               Capacity                                                       could use the coal ash to create the dry
      –   Moving coal ash away from streams, rivers & wetlands                disposal facility.

 •   OFFSITE:  Utilize Large Scale                                            By utilizing the AWT technology, Duke
               Beneficial Use Fill Projects                                   could control the solution outside their
      –   Providing coal ash as a fill material to current and                facilities by “selling” their coal ash.
          future beneficial use projects

 •   OFFSITE:   Ship Offsite for Disposal                                     AWT does not support this option.

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INNOVATIVE SOLUTIONS FOR DUKE ENERGY
INNOVATIVE SOLUTIONS
                                                     Advanced Wall Technologies, LLC
                                                                  Use your coal ash “to fix itself”.
 Cap in Place                  SOLUTION

 By converting to dry storage and combining AWT’s
 encapsulated berm technology with standard capping
 geosynthetic solutions, Duke could utilize a “hybrid cap”. The
 hybrid cap will use the coal ash to construct a perimeter berm
 extending well below the ground surface, creating a
 hydrostatic barrier and natural buttress under the base of the
 AWT berm system. Each section of the Hybrid Cap system
 will extend to the middle of the basin, creating a pinwheel
 structure.

 •    Perimeter embankment can be replaced with an AWT
      ash-geosynthetic wall

 •    Can be located 50 to 75 feet inside of current CCR
      “waste” boundary to allow future GW control methods

 •    AWT wall is a Subtitle D lined approach that also                  © 2014 AWT IP, LLC – Copying or reproduction of this drawing in
                                                                         whole or part is strictly prohibited without prior permission of
      addresses future EPA changes to CCR regulation                     AWT, LLC.

 •    A geomembrane option (GCL or 30-mil FML) is the                    PATENT No. 8,376,657, PATENT No. 8,430,600, PATENT No.
                                                                         8,727,664, PATENT No. 8,784,008 & PATENTS PENDING – Some
      preferred long term remedy for areas with groundwater              or all of the technology illustrated in the drawing is covered by
      impacts.                                                           one or more of PATENT No. 8,376,657, PATENT No. 8,430,600,
                                                                         PATENT No. 8,727,664, PATENT No. 8,784,008, or pending US

 •    Innovative and Additional Cost Saving Option                       patent applications held or submitted by AWT IP, LLC.

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INNOVATIVE SOLUTIONS FOR DUKE ENERGY
INNOVATIVE SOLUTIONS
                                                             Advanced Wall Technologies, LLC

 Wet Basin to Dry                           SOLUTION                       Use your coal ash “to fix itself”.
 Disposal Conversion
 By using AWT’s encapsulated berm technology to convert the wet
 basins to dry lined storage facilities provides Duke a better
 environmental and cost effective solution. The creation of a lined
 disposal footprint, constructed in phases, could include ALL
 material at the facility. This would result in an ultimate “clean”
 closure and removal of potential source material from the basins. If
 clean closure is chosen, the amount of dirt needed to fill from
 below the ground water could be obtained from the dirt berms
 around the basins and therefore minimize cost and make the
 option more feasible to everyone. with standard capping
 geosynthetic solutions.

 •    Can allow basin to be converted to dry disposal while basin
      can function until transition complete.

 •    Maximize ash for use in the AWT berm construction to
      therefore shrink the overall footprint of the constructed landfill

 •    AWT berm or curtains constructed through basin.

 •    AWT berm constructed with removed ash around perimeter.                    © 2014 AWT IP, LLC – Copying or reproduction of this drawing in
                                                                                 whole or part is strictly prohibited without prior permission of
                                                                                 AWT, LLC.
 •    Composite liner installed using additional geogrid
      underlayment.                                                              PATENT No. 8,376,657, PATENT No. 8,430,600, PATENT No.
                                                                                 8,727,664, PATENT No. 8,784,008 & PATENTS PENDING – Some
 •    Innovative and Additional Cost Saving Option                               or all of the technology illustrated in the drawing is covered by
                                                                                 one or more of PATENT No. 8,376,657, PATENT No. 8,430,600,
                                                                                 PATENT No. 8,727,664, PATENT No. 8,784,008, or pending US
                                                                                 patent applications held or submitted by AWT IP, LLC.

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INNOVATIVE SOLUTIONS FOR DUKE ENERGY
INNOVATIVE SOLUTIONS
                                                            Advanced Wall Technologies, LLC
                                            Use your coal ash “to fix itself”.
 Creation of Dry Disposal Capacity SOLUTION
 By using AWT’s encapsulated berm technology to create dry
 lined storage facilities provides Duke a better environmental
 and cost effective solution while keeping liability onsite.

 •    Moves liability away from Dan River (in this example)

 •    Keeps liability onsite instead of trucking to multiple locations

 •    Maximizes Onsite Capacity

 •    Minimizes Permitting Timelines

 •    Minimizes Unit/Cost per Disposal Cubic Yard compared to
      trucking offsite

 •    Allows ash to be safely and reliably re-used in berms greatly
      reducing costs safely and effectively.

 •    Innovative and Additional Cost Saving Option

                                                                          © 2014 AWT IP, LLC – Copying or reproduction of this drawing in
                                                                          whole or part is strictly prohibited without prior permission of
                                                                          AWT, LLC.

                                                                          PATENT No. 8,376,657, PATENT No. 8,430,600, PATENT No.
                                                                          8,727,664, PATENT No. 8,784,008 & PATENTS PENDING – Some
                                                                          or all of the technology illustrated in the drawing is covered by
                                                                          one or more of PATENT No. 8,376,657, PATENT No. 8,430,600,
                                                                          PATENT No. 8,727,664, PATENT No. 8,784,008, or pending US
                                                                          patent applications held or submitted by AWT IP, LLC.

 August 2014                                                                                                                 Page     6
INNOVATIVE SOLUTIONS FOR DUKE ENERGY
INNOVATIVE SOLUTIONS
                                                             Advanced Wall Technologies, LLC
                                                                         Use your coal ash “to fix itself”.
Utilize Large Scale                                  SOLUTION
Beneficial Use Fill Projects
AWT’s technology/method allows for the beneficial reuse of
certain materials in the wall construction, dramatically
decreasing or eliminating the financial burden of the
construction. The delivery cost of Duke’s coal ash can be
negotiated downward by “sharing” in the overall construction
savings by the facility.

•     Significantly reduces project costs to the end-user.

•     Duke can “partner” with project end-user, participating in the
      cost savings.

•     Allows for established area landfills, capacity constrained, to
      take large volumes of beneficial reuse materials (ash).

•     Minimizes Unit/Cost per Disposal Cubic Yard compared to
      straight offsite disposal.

•     Allows ash to be safely and reliably re-used
      in berms greatly reducing costs safely and effectively.

•     Innovative and Additional Cost Saving Option

    August 2014                                                                                   Page   7
INNOVATIVE SOLUTIONS FOR DUKE ENERGY
INNOVATIVE SOLUTIONS
                                                         Advanced Wall Technologies, LLC

         How Does it Work?                                  Partial Encapsulation, PETERSBURG, VA
•   Utilize coal ash as a beneficial waste material in
    berm construction.
•   Encapsulation keeps water out.
•   Patented technology delivered in many forms.
                                                                                Waste
                                                                  S. Fill      Product

Full Encapsulation, CHESTER, VA

    AWT Patented Technology
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INNOVATIVE SOLUTIONS FOR DUKE ENERGY
INNOVATIVE SOLUTIONS
                           Advanced Wall Technologies, LLC

      The Inner Workings

                               AWT Patented Technology

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INNOVATIVE SOLUTIONS
                                                   Advanced Wall Technologies, LLC

 Unlike traditional MSE berms, the AWT MSE berm has an internal geomembrane envelope that
 completely encapsulates the fill material. Advantageously, this encapsulation enables the use of
 beneficial reuse material as fill material. It is also effective in limiting the risk of seismic events. This
 allows for utilities to increase dry disposal capacity at a cost generally less expensive than new facility
 construction.

 Besides the overwhelming financial advantages, the AWT MSE Berm System has environmental
 advantages also;
      –    The AWT system is a GREEN option. 99.7% of the AWT MSE Berm System is constructed with recycled fill
           materials These beneficial use materials such coal combustion products - CCP’s (fly ash, bottom ash,
           synthetic gypsum, boiler slag), Incinerator ash, Non-hazardous impacted soils of all types, foundry sands,
           properly de-watered and stabilized dredge material, crushed concrete, crushed glass, drill cuttings, and
           other reclassified waste materials. AWT supports recycling and RESPONSIBLE Re-Use.

      –    The AWT system is a SAFER option then a traditional MSE Berm. The main reason is that the
           encapsulated AWT MSE Berm System provides liquid/pore pressure management proactively by removing
           liquids via patented drainage system. No liquids = No liquefaction!

 AWT prides itself on the ability to configure the berm system (using its vast design portfolio) to meet
 certain facility constraints. For example, if the facility has soft base grades or streams, wetlands or
 marsh areas adjacent to MSE berm, a group of the AWT designs deal with this by extending the
 encapsulation well below the base grade providing a firm foundation, a natural buttress and a
 hydrostatic barrier.

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