Coal Pollution Control

Hanwei has developed FRP spray headers for flue gas desulphurization, or FGD, systems, which reduce sulphur dioxide emissions from coal-fired plants. FRP spray headers are used in FGD systems to saturate the gas emitted from coal-fired plants with a calcium slurry that reacts with sulphur dioxide gas to form a calcium-sulphur salt that precipitates out of the gas. The resulting "wet" gas has significantly less sulphur dioxide, but is highly corrosive due to increased water content combined with the remaining sulphur dioxide and other chemicals. Accordingly, the containment pipes (including the spray headers), containment vessels, outlet ducts and chimneys that come into contact with the wet gas need to be protected from corrosion. FRP is widely used in North America and Europe to construct and line all parts of FGD systems that come into contact with wet gas. However in China, titanium, which is more expensive than FRP, and composite tiles, which are less reliable than FRP, are currently used for this application, since many Chinese companies do not currently have the technology and know-how required to make these larger diameter FRP FGD products.

During 2006 the Company completed the design and testing of FRP FGD spray headers and in early 2007 the Company commenced commercial production and sales of FRP FGD spray headers. Hanwei plans to introduce a full line of FRP component products for FGD systems, such as larger diameter FRP chimney liners and outlet ducts. Hanwei is examining the most cost effective way to develop these products, including developing its own designs and production technology or cooperating with an existing manufacturer of FRP FGD products. In 2007, Hanwei entered into a letter of intent to form a joint venture with Ershigs, Inc. to produce FRP chimney liners. (see "Coal Power Industry")