Review of Activated Carbon Injection Cost

August 6, 2010
Costs used to assess activated carbon injection (ACI) systems in the proposed NESHAP for portland 

cement manufacturing were developed using cost supplied by the New Jersey Department of 

Environmental Protection. They had prepared an analysis of ACI cost for utility boilers. Based on 

those cost and exhaust airflow information, costs were developed for portland cement kilns. Cost 

information on an ACI system that was being installed on a portland cement kiln was received. We 

compared our cost with those submitted by a vendor supplying the system. A comparison of the 

NJDEP costs and the vendor cost were compared. In addition, we updated our cost to 2005 as well as 

updating the cost for powdered activated carbon.
Comparison of PAC Capital and Annual Cost Estimates from NJ DEP and Industry (FL Smidth)

3/12/2010

• The capital and annual cost estimates from industry (prepared by FL Smidth) are substantially 

higher than those from EPA (prepared based on data from NJ DEP).

o NJ DEP: capital cost $1.69 - $2.79/ton clinker; annual cost $0.80 - $0.99/ton clinker

o Industry: capital cost $13.33/ton clinker; annual cost $5.81/ton clinker

• We attempted to determine the source of the differences in the costs by comparing the sources 

and algorithms for the NJ DEP and industry cost estimates.

• The capital costs from NJ DEP were derived from two sources:

o The capital costs for the PAC equipment ($3,000/MW) and polishing baghouse 

($24,000/MW) were derived from estimates provided by a source identified as “Serpil” 

(perhaps Serpil Guran of NJ DEP). The basis for these estimates is not known.

o The other capital costs (instrumentation, sales tax & freight, and direct/indirect 

installation costs) were derived from the fabric filter capital cost algorithms in the 

OAQPS Control Cost Manual.

• The capital costs from industry include the purchased equipment cost (PEC) and the 

direct/indirect installation costs, which were calculated based on the purchased equipment cost.

o The purchased equipment cost was based on a vendor quote, the components of which 

are unknown.

o Industry's algorithms for direct/indirect installation costs include smaller cost factors 

than NJ DEP's.

• Given that industry’s capital cost estimate includes smaller cost factors for direct/indirect 

installation than the NJ DEP estimate, it is clear that the difference in PEC estimates is the main 

reason for the difference in capital costs. See Table 1 for a more specific comparison of the 

capital cost estimates from NJ DEP and industry.

• The annual costs from NJ DEP are based on OAQPS Control Cost Manual cost equations, 

although I was unable to determine the exact equation used to calculate ash disposal. Industry 

used its own approach to estimating annual costs.

• The following bullets illustrate the differences between the annual cost estimates provided by 

NJ DEP and industry. See Table 2 for a more specific comparison.

o Industry's estimates of labor requirements and wage rates are lower than NJ DEP's, 

except for supervisory labor (20% vs. 15% of direct labor).

o Industry's estimate of PAC consumption is higher than NJ DEP's (3.15 lb/hr vs. 0.40 and 

1.41 lb/hr).
o Industry's estimate of PAC unit cost ($1.15/lb) is more in line with current online cost 

estimates , while NJ DEP's is considerably lower ($0.50/lb).

o Industry's estimate of PAC cost includes an extra factor of 57, the reason for which is 

unknown, which greatly increases the cost.

o Industry's estimate of maintenance materials cost is based on direct capital cost, while 

NJ DEP's is based on maintenance labor cost, which results in a much higher 

maintenance materials cost.

o Industry's estimate of electricity usage (kW) is considerably higher than NJ DEP's.

o Industry's estimate of ash disposal (lb/yr) is considerably higher than NJ DEP's, likely due 

to the higher PAC consumption estimate.

o Industry's estimate of ash disposal unit cost ($100/ton) is much higher than current 

landfill tipping fees; NJ DEP's estimate ($40/ton) is more in line with current fees.

o Industry's equation for overhead includes a smaller cost factor than NJ DEP's, but the 

factor is applied to a higher maintenance materials cost (based on direct capital cost

rather than maintenance labor).

o Industry's equations for indirect annual costs are similar to NJ DEP's (4% of TCI overall), 

but its cost estimates are much higher due to its higher TCI.

o Industry's estimate of capital recovery is based on 7% interest (consistent with current 

EPA guidance) and 10-year equipment life (20 years is more typical for fabric filter), 

resulting in a higher capital recovery factor than NJ DEP.

o NJ DEP's estimate of capital recovery is based on 9% interest (7% interest is current EPA 

guidance) and 20-year equipment life (typical for fabric filter), resulting in a lower 

capital recovery factor than industry.
Table 1. Comparison of PAC Capital Cost Estimates from NJ DEP and FL Smidth (3/12/2010)

NJ DEP NJ DEP-Vineland NJ DEP-BL England I FL Smidth FL Smidth

Parameters Equations $/yr $/ton $/yr $/ton Equations $/yr $/ton

Stack Flow Rate, acfm 132,600 132,600 470,000 470,000 262,614 262,614

Capacity

 MW 23 23 135 135

 Equiv/actual ton clinker/yr 438,068 438,068 1,552,731 1,552,731 936,225 936,225

Purchased equipment costs

 PAC equipment $3,000/MW $69,000 $0.16 $405,000 $0.26

 Polishing baghouse $24,000/MW $552,000 $1.26 $3,240,000 $2.09

 Total (A) PAC + Pol. BH $621,000 $1.42 $3,645,000 $2.35

 Instrumentation 0.1A included included

 Sales tax & freight 0.08A included included

Total PEC (B) sum of PECs $621,000 $1.42 $3,645,000 $2.35

vendor 

quote $7,370,200 $7.87

Direct installation costs

 Foundation & supports 0.04B $24,840 $0.06 $145,800 $0.09

 Handling & erection 0.50B included included

 Electrical 0.08B $49,680 $0.11 $291,600 $0.19

 Piping 0.01B included included

 Insulation for ductwork 0.07B $43,470 $0.10 $255,150 $0.16

 Painting 0.04B included included

Total DIC (C) 0.74B $117,990 $0.27 $692,550 $0.45 0.45B $3,316,590 $3.54

Indirect costs (installation)

 Engineering 0.10B included included

 Construction & field expense 0.20B included included

 Contractor fees 0.10B included included

 Start-up 0.01B included included

 Performance test 0.01B included included 0.03(B+C) $320,604 $0.34
 Contingencies 0.03B included included 0.20B $1,474,040 $1.57

Total indirect costs (D) 0.45B $0 $0 0.2435B $1,794,644 $1.92

Total capital investment (TCI) E = B + C + D $738,990 $1.69 $4,337,550 $2.79 E = B + C + D $12,481,434 $13.33

TCI (using 6/10 rule) $1,113,533 $2.54 $3,058,979 $1.97
Table 2. Comparison of PAC Annual Cost Estimates from NJ DEP and FL Smidth

NJ DEP NJ DEP-Vineland NJ DEP-BL England I FL Smidth FL Smidth

Parameters Equations $/yr $/ton $/yr $/ton Equations $/yr $/ton

Stack Flow Rate, acfm 132,600 132,600 470,000 470,000 262,614 262,614

Capacity

MW 23 23 135 135

Equiv/actual ton clinker/yr 438,068 438,068 1,552,731 1,552,731 936,225 936,225

Direct Capital Costs $738,990 $1.69 $4,337,550 $2.79 $10,686,790 $11.41

Total Capital Investment $738,990 $1.69 $4,337,550 $2.79 $12,481,434 $13.33

Direct Annual Costs

Operating labor

 Direct labor 2 hr/shift * 3 shifts/d * $30/hr * 360 d/yr $64,800 $0.15 $64,800 $0.04

1 man-yr at $60,000/yr * 0.25 

man-yrs $15,000 $0.02

 Supervisory labor 15% of direct labor $9,720 $0.02 $9,720 $0.01 20% of direct labor $3,000 $0.003

Operating materials

 PAC consumption 3 lb PAC/M acfm * stack flow rate / 1E6 0.40 1.41

12 lb PAC/M acfm * stack flow 

rate / 1E6 3.15

 PAC cost $0.50/lb PAC * lb/hr PAC * 8760 hr/yr $1,742 $0.004 $6,176 $0.004

$1.15/lb PAC * lb/hr PAC * 

8,760 hr/yr * 57? $1,809,569 $1.93

Maintenance

 Maintenance labor 1 hr/shift * 3 shifts/d * $30/hr * 360 d/yr $32,400 $0.07 $32,400 $0.02

1 man-yr at $60,500/yr * 0.25 

man-yrs $15,125 $0.02

 Maintenance materials 100% of maintenance labor $32,400 $0.07 $32,400 $0.02 5% of direct capital cost $534,340 $0.57

Utilities

 Electricity

0.000181 * stack flow rate * 5.15 in. H2O * 

8,640 hr/yr * $0.0671/kWh $71,658 $0.16 $253,992 $0.16

(25 + 925) kW * $0.0665/kWh 

* 8,760 hr/yr $553,413 $0.59

 Compressed air

1.5 scfm/1000 acfm * stack flow rate * 

$0.25/1000 scf * 8,640 hr/yr * 60 min/hr $25,777 $0.06 $91,368 $0.06 -- no cost no cost

 Ash disposal $40/ton ($0.02/lb) $2,142 $0.005 $22,882 $0.01

1,573,538 lb/yr * $0.05/lb 

($100/ton) $78,677 $0.08

Total DAC $240,640 $0.55 $513,738 $0.33 $3,009,123 $3.21

Indirect Annual Costs
Overhead 60% of labor & material $84,637 $0.19 $87,297 $0.06

30% of operating labor + 26% 

of total labor & maint. mat. $152,941 $0.16

Administrative charges 2% of TCI $14,780 $0.03 $86,751 $0.06 2% of TCI $249,629 $0.27

Property tax 1% of TCI no change no change no change no change 1% of TCI $124,814 $0.13

Insurance 2% of TCI $14,780 $0.03 $86,751 $0.06 1% of TCI $124,814 $0.13

Capital recovery 0.10955 * TCI (9%, 20 yrs) $80,956 $0.18 $475,179 $0.31 0.14238 * TCI (7%, 10 yrs) $1,777,075 $1.90

Total IAC $195,153 $0.45 $735,978 $0.47 $2,429,273 $2.59

Total Annual Cost $435,793 $0.99 $1,249,716 $0.80 $5,438,397 $5.81
Revised PAC Capital Cost Estimates from NJ DEP, April 2, 2010

NJ DEP NJ DEP-Vineland NJ DEP-BL England I

Parameters Equations $/yr $/ton $/yr $/ton

Stack Flow Rate, acfm 132,600 132,600 470,000 470,000

Capacity

 MW 23 23 135 135

 Equiv/actual ton clinker/yrrevised 

446,046 

 

446,046 

 

1,581,006 

 

1,581,006 

Purchased equipment costs

 PAC equipment 2005 $3,000/MW $80,423 $0.18 $472,046 $0.30

 Polishing baghouse 2005 $24,000/MW $643,382 $1.44 $3,776,370 $2.39

 Total (A)

PAC + Pol. 

BH $723,804 $1.62 $4,248,417 $2.69

 Instrumentation 0.1A included included

 Sales tax & freight 0.08A included included

Total PEC (B) sum of PECs $723,804 $1.62 $4,248,417 $2.69

Direct installation costs

 Foundation & supports 0.04B $28,952 $0.06 $169,937 $0.11

 Handling & erection 0.50B included included

 Electrical 0.08B $57,904 $0.13 $339,873 $0.21

 Piping 0.01B included included

 Insulation for ductwork 0.07B $50,666 $0.11 $297,389 $0.19

 Painting 0.04B included included

Total DIC (C) 0.74B $137,523 $0.31 $807,199 $0.51

Indirect costs (installation)

 Engineering 0.10B included included

 Construction & field expense 0.20B included included
 Contractor fees 0.10B included included

 Start-up 0.01B included included

 Performance test 0.01B included included

 Contingencies 0.03B included included

Total indirect costs (D) 0.45B $0 $0

Total capital investment (TCI) E = B + C + D $861,327 $1.93 $5,055,616 $3.20

Average TCI 2.56
Revised PAC Annual Cost Estimates from NJ DEP, April 2, 2010

NJ DEP NJ DEP-Vineland NJ DEP-BL England I

Parameters Equations $/yr $/ton $/yr $/ton

Stack Flow Rate, acfm 132,600 132,600 470,000 470,000

Capacity

MW 23 23 135 135

Equiv/actual ton clinker/yrrevised 

446,046 

 

446,046 

 

1,581,006 

 

1,581,006 

Direct Capital Costs $861,327 $1.93

$5,055,61

6 $3.20

Total Capital Investment $861,327 $1.93

$5,055,61

6 $3.20

Direct Annual Costs

Operating labor

 Direct labor 2 hr/shift * 3 shifts/d * $30/hr * 360 d/yr $64,800 $0.15 $64,800 $0.04

 Supervisory labor 15% of direct labor $9,720 $0.02 $9,720 $0.01

Operating materials

 PAC consumption 3 lb PAC/M acfm * stack flow rate / 1E6 0.40 1.41

 PAC cost, updated $1.15/lb PAC * lb/hr PAC * 8760 hr/yr $4,007 $0.009 $14,204 $0.009

Maintenance

 Maintenance labor 1 hr/shift * 3 shifts/d * $30/hr * 360 d/yr $32,400 $0.07 $32,400 $0.02

 Maintenance materials 100% of maintenance labor $32,400 $0.07 $32,400 $0.02

Utilities

 Electricity

0.000181 * stack flow rate * 5.15 in. H2O * 8,640 hr/yr * 

$0.0671/kWh $71,658 $0.16 $253,992 $0.16

 Compressed air

1.5 scfm/1000 acfm * stack flow rate * $0.25/1000 scf * 8,640 

hr/yr * 60 min/hr $25,777 $0.06 $91,368 $0.06

 Ash disposal $40/ton ($0.02/lb) $2,142 $0.005 $22,882 $0.01

Total DAC $242,905 $0.54 $521,766 $0.33
Indirect Annual Costs

Overhead 60% of labor & material $85,996 $0.19 $92,115 $0.06

Administrative charges 2% of TCI $17,227 $0.04 $101,112 $0.06

Property tax 1% of TCI no change

no 

change

no 

change

no 

change

Insurance 2% of TCI $17,227 $0.04 $101,112 $0.06

Capital recovery, revised 0.0944 * TCI (7%, 20 yrs) $81,309 $0.18 $477,250 $0.30

Total IAC $201,759 $0.45 $771,589 $0.49

Total Annual Cost $444,664 $1.00

$1,293,35

6 $0.82

Average cost/ton clinker ($1.00+$0.82)/2 0.91

Annual cost, excluding capital recovery $363,355 $0.81 $816,106 $0.52

Average cost/ton 

clinker(w/o CR) ($0.81+$0.52)/2 0.67
ACI Capital, Annual, and Annualized Capital Costs ($2005)

Total Cost ($)

Clinker Production 

(tpy) Cost/Ton Clinker

Avg $/Ton Clinker

VL 

plant BLE plant

VL 

plant BLE plant

VL 

plant

BLE 

plant

TCI 861,327 5,055,616 446,046 1,581,006 1.93 3.20 2.56

Annual Cost, excluding CR and carbon 359,348 801,902 446,046 1,581,006 0.81 0.51 0.66

Carbon ($/yr) 4,007 14,204 446,046 1,581,006 0.01 0.01 0.01

Capital Recovery (7%, 20yr) 81,309 477,250 446,046 1,581,006 0.18 0.30 0.24

Total Annualized Cost 444,664 1,293,356 446,046 1,581,006 1.00 0.82 0.91