(v J Coal Creek question 

\ -~ Dendy, Lewis H. to; Gail Fallon 05/23/2011 12:28 PM 

~ Cc: "Bachman, Tom A.", "Semerad. Jim L.", "dnelson@grenergy.com" 

1 attachment 

Et~ 

GRE CCS BART ....­AppxA-E pdf. pdf 

Gail, 

You are the first person to have raised this point and I agree with everything 

you say in your message below. The answer to your question is provided in the 

Great River Energy (GRE) BART Analysis on the Appendix A-14 page (attached) 

from the 2/27/07 version. The page documents the Cost of Flue Gas Re-Heating 

(Thermal Oxidizer) at $19,017,610. Unfortunately, that detailed page does not 

appear in the final (12/12/07) version of the GRE analysis. 

The $19,017,610 for flue gas reheating plus the $37,136,403 is $56,154,013, 

which matches the total cost we used from the SCR cost summary page in Table 

A-13. I apologize for any inconvenience the omission may have caused you. 

Please let us know if we can be of further assistance. 

Thanks, 

Lew Dendy 

Environmental Scientist 

ND Division of Air Quality 

918 E. Divide Ave., Bismarck, ND 58501-1947 

Ph 701.328.5188, Fax 701.328.5185 

http://www.ndhealth.gov/AQ/Airhomepage.htm 

-Original Message---­

From: Fallon.Gail@epamail.epa.gov [mailto:Fallon.Gail@epamail.epa.gov] 

Sent: Thursday, May 19, 2011 4:53 PM 

To: Bachman, Tom A. 

Subject: Coal Creek question 

Hi Tom, 

I am having trouble reconciling the total annualized cost for SCR in 

Appendix C.2 of the RH SIP for Coal Creek. In the company's December 

2007 BART report there is a summary table in Appendix A from which I 

believe you got the figures for the State's BART determination in 

Appendix B.2 of the RH SIP. All the numbers in the company's summary 

for other control technologies seem to match up with the subsequent 

tables that break down the cost analyses in their Appendix A except SCR. 

There are two annualized cost totals for SCR in Table A-13 21,379,562 

and 37,136,403 (includes lost fly ash sales). The figure reported in 

the summary is $56,150,000; can you help me figure out how to get to 

that figure? I may not be seeing an updated supplemental report or 

something along those lines. 

Thanks! 

Gail 

Gail Fallon 
44.923 

Great River Energy Coal Creek 

BART Emission Control Cost Analysis 

Table A·14: Cost of Flue Gas Re·Heating (Thermal Oxidizer) 

CAPITAL COSTS 

Direct Capital Costs 

Purchased Equipment (A) (1) 

Purchased Equipment COSIS (A) - Absorber + packing + auxiliary equipment, EC 

Instrumentation 

NO Sales Taxes 

Freight 

Purchased Equipment Total (8) 

Instaliation 


Foundations & supports 


Handling & erection 


Electrical 


Piping 


Insulation 


Painting 


Installalion Sublotal Standard Expenses 

Site Preparation, as required 

8uildings, as required 

Site SpecifIC - Other 

Total Site Specific Costs 


Installation Total 


Total Direct Capital Cost, DC 


Indirect Capital Costs 


Engineering, supervision 


Construction & field expenses 


Contractor fees 


Start-up 


Performance test 


Model Studies 


Contingencies 


Total Indirect Capital Costs, IC 


Total Capital Investment (TCI) .. DC + IC 

10% of control device cost (A) 

0.0% of control device cost (A) 

5% of control device cost (A) 

15% 

6% of purchased equip cost (8) 

14% of purchased equip COSI (8) 

4% of purchased equip cost (8) 

2% of purchased eqUip cost (8) 

1% of purchased equip cost (8) 

1 % of purchased equip cost (8) 

30% 

Site Specific 


Site Specific 


Site Specific 


10% of purchased equip cosl (8) 

5% of purchased equip cost (8) 

10% of purchased equip cost (8) 

2% of purchased equip cost (8) 

1% of purchased equip cost (8) 

of purchased equip cost (8) 

3% of purchased equip cost (8) 

31% of purchased equip cost (8) 

Adjusted TCI for Replacement Parts (Catalyst, Filter 8ags, .tc) for Capital Recov.ry CO$I 

OPERATING COSTS 

Direct Annual Operating Costs, DC 

Operating Labor 


Operator 


Supervisor 


Maintenance 

Maintenance labor 

Maintenance Mat&riats 

37.00 $IHr, 0 5 hrl8 hr shfft, 8586 hrlyr 

15% 15% of Operator Costs 

37.00 $IHr, 05 hrl8 hr shift, 8586 hrlyr 

100% of maintenance labor costs 

Utililiea, Suppllea, Replacements & Wa.te Management 

Electricity 

Natural Gas 

NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


T otat Annual Direct Operating Costs 

Indirect Operating Cost" 

Ovemead 

Admlnistrabon (2% total capital costs) 

Property tax (1 % lotal capital costs) 

Insurance (1% total capital costs) 

Capital Recovery 

Total Annual Indirect OP8rating Costs 

0.05 $Ikwh, 9,218 kW-hr. 8566 hrlyr, 100% utilization 

6.65 $Ikscf, 4.167 scfm, 6566 hrlyr, 100% utilizatlon 

NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


NA 


60% of total labor and malerial costs 


2% of lotal capital costs (Tel) 


1% of total capital costs (TCI) 


1 % of total capital ccsts (TCI) 


0.0637 for a 20- year equipment life and a 5.5% interest rate 

Sum indirect oper costs" capital recovery cost 

Total Annual Cost (Annualized Capital Cost + Operating Cost: 

Reheat - Rev. May 2006 

898,458 

69,846 

° 

1,033,227 

82,658 

144,652 

41.329 

20,665 

10,332 

10,332 

309,968 

NA 

NA 

NA 

NA 

309,968 

1,343,195 

103,323 

51.661 

103,323 

20,665 

10,332 

o 

30,997 

320,300 

1,663,495 

1,663,495 

19,655 

2.978 

19.655 

19,855 

4,006,731 

14,705,069 

18,774,344 

37.526 

33.270 

16,635 

16,635 

139,200 

243,266 

19,017,610