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OAR Box 1828 

Prepped by Ollie Stewart 

Document Number: 

318) IV-B-22 

Docket Number: 

A-83-27 

Printed 11/12/200811:12:59 AM Sheet 318 of 325 
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* RADIAN A-83-27 

^ CORPORATION IV-B-22 

MEMORANDUM 

To: Walt Stevenson, EPA/OAQPS/ESED . 

From: David White, Radian Corporation 

Date: May 15, 1987 

Subject: Estimation of CE Values for SO- Reductions from Utility Boilers 

This memo summarizes Radian's recent analysis of cost effectiveness (CE) 

associated with percent reduction over low-sulfur coal for reducing S0-

emissions from electric utility boilers. The objective was to develop utility 

CE values that are appropriate for comparison with those developed for 

industrial boilers. A model utility boiler in EPA Region V with an 

electrical output of 400 megawatt (roughly equal to 4,000 million Btu/hour 

heat input capacity) was used in the analysis. Compliance with a 1.2 lbs 

SOp/million Btu emission limit, a 90 percent reduction standard, and the 

existing Subpart Da standard (70-90 percent sliding scale) were examined. 

Table 1 summarizes the annualized cost (including both fuel and flue gas 

desulfurization) and SO- emissions for these three regulatory options and for 

four selected coals. CE values for each percent reduction option relative to 

low-sulfur coal are presented in the far right column of the table. All costs 

are on a pre-tax basis in constant 1985 dollars. Each of the inputs used in 

the analysis are discussed below. 

Coal Selection. Costing, and Emissions 

Four different coals were examined: low-sulfur bituminous (B-Bit), 

medium-sulfur bituminous (F-Bit), high-sulfur bituminous (H-Bit), and 

low-sulfur subituminous (B-Sub). Key characteristics of each coal are shown 

in Table 2. Except for delivered cost, these coal parameters are consistant 

with those used in recent industrial boiler CE analyses. Adjustments in 

delivered coal cost were made using factors provided by ICF to reflect economies of delivering larger tonnages of coal to utilities versus industrial 

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consumers. Annual fuel costs were calculated based on these adjusted coal 

costs, a 400 MW boiler, a steam cycle heat rate specific to each coal (see 

Progress Center/3200 E. Chapel Hill Rd./Nelson Hwy./P.O. Box 13000/Research Triangle Park, N.C. 27709/(919)541-9100 
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<"-

Table 2), and a capacity factor of 0.6. Sulfur dioxide emissions assume 100 

percent conversion of coal sulfur to SO- (i.e., no SO- retention in the ash). 

Emission Control Costs 

Emission control costs for sulfur dioxide and particulate matter (PM) 

were developed using the Integrated Air Pollution Costing System (IAPCS) 

computer code developed for the EPA Air and Energy Engineering Research 

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Laboratory (AEERL) by PEI Associates, Inc. Lime/limestone scrubbing (LLS) 

was used for SO- control; an electrostatic precipitator (ESP) was used for PM 

control. The LLS code in IAPCS is based on the Tennessee Valley Authority LLS 

computer model developed for AEERL. Parameter inputs to IAPCS are shown in 

Table 3. Target SO- removal efficiencies were set at two percent above the 

regulatory limit to account for variability in coal quality and FGD system 

performance. Compliance with the Subpart Da standard was modeled using the 

IAPCS flue gas bypass optimization routine. 

Conclusions 

For all of the cases examined, CE values ranged from about $1,450-1,850 

per ton of S0-. By comparison, for a 150 million Btu/hour heat input capacity 

industrial boiler in Region V, the cost of percent reduction (based on 90 

percent reduction and F-Bit coal) over low-sulfur coal (based on B-Bit) was 

about $1,800 per ton. 

References 

1. Memorandum for Martinez, J. A., and E. F. Aul, Radian Corporation, to 

Porter, F. L., and W. H. Stevenson, EPA/OAQPS/ESED, May 15, 1987. 

Assumptions and Procedures Used to Generate Model Industrial Boiler Cost 

and Cost Effectiveness Estimates. 

2. Memorandum from Ebert, C. D., ICF Incorporated, to Porter, F. L. and W. 

H. Stevenson, EPA/0AQPS/ESED, January 19, 1987. Incremental Costs to 

Supply'Very Low Sulfur Coals. 

3. Palmisano, P. J., and B. A. Laseke (PEI Associates, Inc.), User's Manual 

for the Integrated Air Pollution Control System Design and CostEstimating Model Version II. Prepared for .the U.S. Envrionmental 

Protection Agency, Research Triangle Park, N.C. EPA-600/8-86-031a. 
TABLE 1. COMPARISON OF S02 COST EFFECTIVENESS FOR UTILITY BOILERS 

SIZE REGION COAL UNC COAL COST REGULATORY — EMISSION CONTROLS— TOTAL -S02 EHISSIONSHH TYPE S02* $/HHBTU */YR REQUIREMENT TYPE I RED $/YRl $/YR TONS/YR l/TON 

BITUMINOUS COAL 

400 5 B-BIT 1.08 1.98 41073874 Subpart D (1.21) ESP 0 5952100 47025974 11261 

400 5 H-BIT 5.54 1.70 35687463 Subpart Da (90X) ESP+LLS 92 23137600 58825063 4641 1782 

400 5 F-BIT 2.86 1.92 40335557 901 Reduction ESP+LLS 92 21183100 61518657 2397 1635 

400 5 F-BIT 2.86 1.92 40335557 Subpart Da (0.61) ESP+LLS 81 16939100 57274657 5650 1827 

SUBITUHINOUS COAL 

400 5 B-SUB 0.95 1.59 34738544 Subpart D (1.2t) ESP 0 6163600 40902144 10396 

400 5 B-SUB 0.95 1.59 34738544 90X Reduction ESP+LLS 92 22398700 57137244 830 1697 

400 5 B-SUB 0.95 1.59 34738544 Subpart Da (0.6#) ESP+LLS 72 17072400 51810944 2893 1454 

f Uncontrolled S02 eaissions per ai1lion Btu heat input 
TABLE 2. COAL CHARACTERISTICS AND BOILER HEAT RATES 

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Coal Type 

Heating Value (Btu/lb) 

Sulfur Content (%) 

Ash Content (%) 

Moisture Content (%) 

Coal Cost ($/million Btu) 

Heat Rate (Btu/kilowatt-hour) 1 

B-Bit 

12,525 

0.68 

11.0 

10.0 

1.98 

9,867 

H-Bit 

11,660 

3.23 

11.0 

10.0 

1.92 

9,971 

F-Bit 

11,485 

1.64 

11.0 

10.0 

1.70 

9,994 

B-Sub 

8,825 

0.42 

7.0 

21.0 

1.59 

10,392 

1 Calculated by IAPCS. 

TABLE 3. IAPCS INPUTS 

Boiler Design and Operation 

Size 

Type 

Capacity Factor 

Air Heater Exit Gas Temperature 

Sulfur Retention in Ash 

SO- Removal Efficiency 

Economic Assumptions 

Economic Premises 

Boiler Life 

Discount Rate 

Tax Rate 

400 megawatts 

Wall-fired, dry-bottom, pulverized coal 

60 percent 

300°F 

None 

See Table 1 

EPRI (Electric Power Research Institute) 

30 years 

10 percent 

Zero (i.e., pre-tax)