**Tilden Taconite Indurating Line #1 Wet Scrubber (Absorber after existing ESP)**  **based on UTac Purchased Equipment Costs**

Flow rate (acfm) 1,148,000 Tilden 9/11/2009 726,000 UTac 9/7/2006 Table 6 Flue Gas Temperature (degrees F) 300 Tilden 12/28/2006 121 UTac 9/7/2006 Table 6 Uncontrolled SO2 emissions (TPY) 1,153.20 Tilden 9/11/2009 Absorber + auxiliary equipment 34,869,327 $ Tilden 12/28/2006 TCI (not used) 5,624,436 $ UTac 9/7/2006 Table 6 Retrofit factor 60% Tilden 12/28/2006 1 assumed SO2 Control efficiency 80% Tilden 12/28/2006 Operating Hours per Year 7,680 Tilden 9/11/2009 Operating Hours per Shift 8 assumed Operating Shifts per Year 960 calculated Utilization 100% Tilden 9/11/2009 Operating Labor Cost ($/hr) 85.00 $ Tilden 9/11/2009 Maintenance Labor Cost ($/hr) 85.00 $ Tilden 9/11/2009 Waste generation (gpm) 1,182 calculated from Tilden 9/11/2009 varies directly with assumed control efficiency Waste disposal cost ($/mgal) 3.80 $ OAQPS Control Cost Manual example Solvent usage (gpm) 1,459 calculated from Tilden 9/11/2009 varies directly with assumed control efficiency Solvent cost ($/kgal) 0.40 $ Tilden 9/11/2009 Chemical usage (lb/hr) 421 calculated from Tilden 9/11/2009 varies directly with assumed control efficiency Chemical cost ($/ton) 90.80 $ Tilden 9/11/2009 Electrical Cost ($/kWh) 0.05 $ Tilden 9/11/2009 Electrical Use (kW/hr) 1,999 Tilden 9/11/2009 Inflation Since 2009 1.06 CEPCI 2010/CEPCI 2009 Equipment Life (yr) 20 Tilden 9/11/2009 Interest Rate (%) 7.00% Tilden 9/11/2009 **Given/Assumed Tilden Taconite Indurating Line #1** 

**Capital Cost factors for Gas A bsorbers--OA** **QPS Control Cost Manual, Chap 5**

Cost Item Factor Cost Direct Costs Purchased equipment costs Absorber + auxiliary

equipment, EC A $7,814,277 based on 5,624,436 $ UTac 9/7/2006 Table 6 Instrumentation 0.10 A $781,428 Sales taxes 0.065A $507,928 Freight 0.05A $390,714 Purchased equipment cost, PEC B= 1.18 A $9,494,346

Direct installation costs Foundations & supports 0.12 B $1,139,322 Handling & erection 0.40 B $3,797,738 Electrical 0.01 B $94,943 Piping 0.30 B $2,848,304 Insulation 0.01 B $94,943 Painting 0.01 B $94,943 Direct installation costs x 1 x 0.85 B $8,070,194

Site preparation As required, SP Buildings As required, Bldg.

Total Direct Costs, DC 1.85 B+SP+Bldg $17,564,540

Indirect Costs (installation) Engineering 0.10 B $949,435 Construction and field expenses 0.10 B $949,435 Contractor fees 0.10 B $949,435 Start-up 0.01 B $94,943 Performance test 0.01 B $94,943 Contingencies 0.03 B $284,830

Total Indirect Costs, IC 0.35 B $3,323,021

Total Capital Investment = DC + IC 2.20 B+SP+Bldg $20,887,561

### Tilden Taconite Indurating Line #1

**Annual Cost factors for Gas Absorbers--OAQPS Control Cost Manual, Chap 5**

Cost Item Factor Cost Direct Annual Costs, DC Operating labor Operator 0.5 hr/shift $40,800 Supervisor 15% of operator $6,120 Operating materials Solvent 1459 gpm * 0.40 $ /kgal = $268,960 Chemicals 420.8 lb/hr * 90.80 $ /ton = $146,721 Wastewater Disposal 1182 Gal/min * 3.80 $ /mGal = 2,070,430 $ Maintenance Labor 0.5 hr/shift $40,800 Material 100.00% of maintenance $40,800 Electricity All electricity equal to: 1,999 kW/hr * 0.05 $ unit cost = $798,321 Total DC $3,412,951

Indirect Annual Costs, IC Overhead 60% of total labor and material costs $77,112 Administrative charges 2% of Total Capital Investment $417,751 Property tax 1% of Total Capital Investment $208,876 Insurance 1% of Total Capital Investment $208,876 Capital recovery 0.0944 * Total Capital Investment $1,971,638

Total IC $2,884,252

Total Annual Cost DC + IC $6,297,204

### Tilden Taconite Indurating Line #1 SO2 Uncontrolled emissions (TPY) 1,153.20 Control efficiency

(%) 80% Emission reduction (TPY) 923 Controlled emissions (TPY) 231 Total annualized cost ($/yr) $6,297,204 Cost/ton removed ($/T) $6,826