2004 ANNUAL REPORT TO SHAREHOLDERS 13 Coal, water and  oxygen are fed into a  high-pressure gasifier,  where the coal is  partially combusted  and converted into  synthetic gas (“syngas”). The ash in the  coal is converted to  inert, glassy slag. The syngas pro- duced in the gasifier  is cooled and cleaned  of particles. The slag and  other inert material  may be used to pro- duce other products  or may be safely man- aged in a landfill. Next, the syngas  passes through a bed of activated charcoal,  which captures the  mercury. Steam produced  in the HRSG, along  with additional  steam that has been  generated throughout  the gasification pro- cess, drives a steam  turbine, which also  produces electricity. The steam  exhausted from the  steam turbine cools  and then condenses  back into water,  which is then pumped  back into the steam  generation cycle. The sulfur is  removed from the  syngas and converted  to either elemental  sulfur or sulfuric  acid for sale to  chemical companies  or fertilizer com- panies. The syngas can  either be burned in a  combustion turbine  or used as a feedstock  for other marketable  chemical products. The syngas is  fired in a combustion  turbine that produces  electricity. The hot exhaust  from the gas turbine  passes to a Heat  Recovery Steam  Generator (HRSG). 1 Solids & Co-Products Sulfur Other Chemical  Products Sulfur Removal Exhaust Stack Steam Water Electricity Condenser Cooling Water Heated Water H e a t R e c o v e r y S t m G e n a t o r Clean Syngas Electricity 2 3 4 6 5 7 8 9 10 11