United States Steel: Keewatin Taconite Company 9/6/2

BART Report - Attachment A: Emission Control Cost AnalysisTable A.1: Cost Summary

NOx Control Cost Summary 

Control Technology Control Eff % Controlled Emissions T/y Emission Reduction T/yr Installed Capital Cost $ Annualized Operating Cost $/yr Pollution Control Cost $/ton Incremen

Control C

$/ton

Selective Catalytic Reduction with Reheat (SCR)

80% 830.8 3323.2 $63,936,099 $31,615,514 $9,514 $9,952

Ported Kilns 5% 3946.3 207.7 $6,465,590 $610,306 $2,938 n/a

SO2 Control Cost Summary 

Control Technology Control Eff % Controlled Emissions T/y Emission Reduction T/yr Installed Capital Cost $ Annualized Operating Cost $/yr Pollution Control Cost $/ton Incremen

Control C

$/ton

Wet Walled Electrostatic Precipitator (WWESP)(after existing scrubber)

80% 190.1 760.4 $45,081,576 $11,531,318 $15,165 n/a

Secondary Wet Scrubber(after existing scrubber) 60% 380.2 570.3 $30,203,843 $5,058,352 $8,870 n/a

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control CostsCost Summary 
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost AnalysisTable A.2: Summary of Utility, Chemical and Supply Costs

Operating Unit: Indurating Furnace Study Year 2006

Emission Unit Number EU 030Stack/Vent Number SV051MItem Unit Cost Units Cost Year Data Source NotesOperating Labor 61 $/hr Per Kevin Pylka e-mail 07-31-06

Maintenance Labor 61 $/hr Per Kevin Pylka e-mail 07-31-06

Electricity 0.051 $/kwh 2006

Expected annual average industrial price of electricity in the West North Central Division for 2007 - DOE http://tonto.eia.doe.gov/steo_query/

Natural Gas 9.2575 $/mscf 2005

Energy Information Administration. Average US Industrial Natural Gas Prices. July '05 to June '06. http://tonto.eia.doe.gov/dnav/ng/his

Water 0.28 $/mgal 0.20 1995

EPA Air Pollution Control Cost Manual, 6th Ed 2002, Section 5 Ch 1, page 1-40

Annual Costs for Packed Tower Abadjusted for 3% inflation.

Cooling Water 0.28 $/mgal 0.23 1999

EPA Air Pollution Control Cost Manual, 6th ed. Section 3.1 Ch 1

Ch 1 Carbon Absorbers, 1999 $0.13% inflation

Compressed Air 0.32 $/mscf 0.25 1998

EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 1 

Example problem; Dried & Filtered, inflation

Wastewater Disposal Neutralization 1.69 $/mgal 1.50 2002

EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 2 Chapter 2.5.5.5

Section 2 lists $1- $2/1000 gal. Co3 lists $1.30 - $2.15/1,000 gal

SCR Catalyst 141.00 $/ft3 Cormetech, Inc.

Chemicals & SuppliesLime 91.62 $/ton 91.62 2006 Estimate from Cutler-Magney Company.

Oxygen 40.00 $/ton 2006 BOC estimate.

Ammonia (29% aqua.) 0.12 $/lb 0.101 2000

EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 5 Chapter 2, page 2-50

Annual costs for a retrofit SCR systadjusted for 3% inflation.

Caustic 305.96 $/ton 280 2003 Hawkins Chemical 50% solution (50 Deg Be); includes 

OtherSales Tax 6.5% %Interest Rate 7.00% %

EPA Air Pollution Control Cost Manual Introduction, Chapter 2, section 2.4.2. Social (discount) rate used as a def

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control CostsUtility Chem$ Data 
Operating Information

Annual Op. Hrs 8400 HoursUtilization Rate 93%Equipment Life 20 yrs Engineering Estimate

Standardized Flow RateSV051M 704,757 scfm @ 32o F Calculated.

TemperatureSV051M 132 Deg F BART spreadsheet.

Moisture ContentSV051M 16.5% Per Kevin Pylka e-mail 07-31-06Actual Flow RateSV051M 848,000 acfm BART spreadsheet.

Standardized Flow RateSV051M 756,324 scfm @ 68o F Calculated.

Dry Std Flow RateSV051M 631,531 dscfm @ 68o F Calculated.

Max Emis1 Projected Future lb/hr ton/year

Pollutant Lb/Hr Actuals4 (tpy) ppmv ppmv

Nitrous Oxides (NOx)SV051M 1397.0 4,154.0 309 209.4with 100% coal2 466.0

with 100% natural gas3 1270.0

Enter percent coal burned 40%Enter percent natural gas burned 60%1) Based on Oct '05 stack test with 10% factor added.2) Based on Jun 2006 stack test3) Based on Oct 2005 stack test4) Based on percent of each type of fuel burned, and max lb/hr emissions in cells C122 and C123.

Max Emis1 Projected Future

Sulfur Dioxides (SO2) Lb/Hr Actuals2 (tpy)

SV051M 400.0 950.5 63 34.41) Max emissions based on recent stack test data, but assumed to use a coal with 1% Sulfur instead of 0.47%2) Projected future actuals are based on the permit limit of 217 lb/hr.

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control CostsUtility Chem$ Data 
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3: NOx Control - Selective Catalytic Reduction with Reheat

Operating Unit: Indurating Furnace

Emission Unit Number EU 030 Stack/Vent Number SV051M

Design Capacity 350 mmbtu/hr Standardized Flow Rate 704,757 scfm @ 32o F

Expected Utilization Rate 93% Temperature 132 Deg F

Expected Annual Hours of Operation 8,400 Hours Moisture Content 16.5%

Annual Interest Rate 7.0% Actual Flow Rate 848,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 756,324 scfm @ 68o F

Dry Std Flow Rate 631,531 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs EPRI Correlation

 Purchased Equipment 25,614,464

 Purchased Equipment Total SCR Only 27,279,404

SCR + Reheat 28,192,467

Total Capital Investment (TCI) = DC + IC SCR + Reheat 63,936,099

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 23,952,985

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 7,687,489

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 31,615,514

Emission Control Cost Calculation

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 1,397.0 4,154.0 80% 830.8 3,323.2 9,514 

Notes & Assumptions

1 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2.

2 For Calculation purposes, duty reflects increased flow rate, not actual duty.

3 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

4 Capital Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.43

5 Reagent Use per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.35

6 SCR Catalyst Volume per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.18 - 2.24

7 SCR Reactor Size per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31

8 SCR Catalyst Replacement per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.50 - 2.53

9 SCR Electrical Demand per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.48

10 SCR Maintenance Costs EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46

11 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control Costs

EU030 SCR EU030 SCR 4 of 17
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3: NOx Control - Selective Catalytic Reduction with Reheat

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (1)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 25,614,464

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 1,664,940

Freight 5% of control device cost (A) NA

Purchased Equipment Total 27,279,404

Indirect Installation

General Facilities 0% of purchased equip cost (A) 0

Engineering & Home Office 0% of purchased equip cost (A) 0

Process Contingency 0% of purchased equip cost (A) 0

Site Specific-Other 10% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 10% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 4,488,495

Total Plant Cost (D) A + B + C 34,411,798

Allowance for Funds During Construction (E) 0 for SCR 0

Royalty Allowance (F) 0 for SCR 0

Pre Production Costs (G) 2% of (D+E)) 688,236

Inventory Capital Reagent Vol * $/gal 66,258

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 35,166,291

Retrofit factor (11) 60% of TCI 21,099,775

Site preparation 1,400,000

Structural Steel 4,800,000

Total Capital Investment Retrofit Installed 62,466,066

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 8400 hr/yr 128,100

Supervisor 15% 15% of Operator Costs 19,215

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 527,494

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 1,640 kW-hr, 8400 hr/yr, 93% utilization 653,432

SCR Catalyst 64.71 Catalyst Replacement 507,499

Ammonia 0.12 $/lb, 1,952 lb/hr, 8400 hr/yr, 93% utilization 1,839,424

Total Annual Direct Operating Costs 3,675,165

Indirect Operating Costs

Overhead 60% of total labor and material costs 101,433

Administration (2% total capital costs) 2% of total capital costs (TCI) 703,326

Property tax (1% total capital costs) 1% of total capital costs (TCI) 351,663

Insurance (1% total capital costs) 1% of total capital costs (TCI) 351,663

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 5,896,355 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 7,404,440

Total Annual Cost (Annualized Capital Cost + Operating Cost) 11,079,604

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control Costs

EU030 SCR EU030 SCR 5 of 17
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3: NOx Control - Selective Catalytic Reduction with Reheat

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catayst Estimate amount of catalyst required 

Equipment Life 24,000 hours Vol. #1 2708 ft3

Cormetech, Inc.

FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc.

Rep part cost per unit $141 Flow #2 756,324 scfm

Vol #2 11571.3 ft3

Amount Required 11,571 ft3

Catalyst Cost 1,631,558

Y catalyst life factor 3 Years

Annualized Cost 507,499

Equivalent Duty 4,119 Plant Cap kW A 422,471

Est power platn eff 35% Unc Nox lb/mmBtu B 0.35 D=75*(300,000)*((B/1.5)^0.05*(C/100)^0.04)A)^0.35

Watt per Btu/hr 0.29307 Nox Red. Eff. C 80% E=D*A*0.0066

Equivalent power plant kW 422,471 Capital Cost $/kW D $60.63 $25,614,463.64 Total SCR Equipment

Uncontrolled Nox t/y 1,397.0 Fixed O&M E $169,055.46

Annual Operating Hrs 8000 Variable O&M F $719,855.06

Uncontrolled Nox lb/mmBtu 0.354 Ann Cap Factor G 0.82

Heat Input mmBtu/hr H 6,000

SCR Capital Cost

Electrical Use

Duty 4,119 MMBtu/hr kW

NOx Cont Eff 80% Power 1,640.1

NOx in 0.35 lb/MMBtu

n catalyst layers 4 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 1640.1

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

566 lb/hr Neat 260.8 gal/hr

29% solution Volume 14 day inventory 87,637 gal $66,258 Inventory Cost

1952 lb/hr

Design Basis Max Emis Control Eff (%)

lb/MMBtu 80%

Nitrous Oxides (NOx) 0.354

Actual 108,262 dscf/MMBtu

Method 19 Factor 9,200 dscf/MMBtu

Adjusted Duty 4,119 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 8,400

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 61.00 $/Hr 2.0 hr/8 hr shift 2,100 128,100 $/Hr, 2.0 hr/8 hr shift, 8400 hr/yr

Supervisor 15% of Op. NA 19,215 15% of Operator Costs

Maintenance

Maintenance Total 1.5 % of Total Capital Investment 527,494 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 1640.1 kW-hr 12,812,399 653,432 $/kwh, 1,640 kW-hr, 8400 hr/yr, 93% utilization

SCR Catalyst 141 $/ft3 507,499 Catalyst Replacement

Ammonia 0.12 $/lb 1952 lb/hr 15,252,365 1,839,424 $/lb, 1,952 lb/hr, 8400 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control Costs

EU030 SCR EU030 SCR 6 of 17
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3: NOx

 Control - Cost to Reheat Flue Gas (Thermal Oxidizer)

Operating Unit: Indurating Furnace

Emission Unit Number EU 030 Stack/Vent Number SV051M Chemical Engineering

Standardized Flow Rate 704,757 scfm @ 32o F Chemical Plant Cost Index

Expected Utilization Rate 93% Temperature 132 Deg F 1998/1999 390

Expected Annual Hours of Operation 8,400 Hours Moisture Content 16.5% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 848,000 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 756,324 scfm @ 68o F

Dry Std Flow Rate 631,531 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 751,493

 Purchased Equipment Total (B) 22% of control device cost (A) 913,064

 Installation - Standard Costs 30% of purchased equip cost (B) 273,919

 Installation - Site Specific Costs NA

 Installation Total 273,919

 Total Direct Capital Cost, DC 1,186,983

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 283,050

Total Capital Investment (TCI) = DC + IC 1,470,033

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 20,277,820

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 258,089

Total Annual Cost (Annualized Capital Cost + Operating Cost) 20,535,909

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control Costs

EU030 Reheat EU030 Reheat 7 of 17
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3: NOx Control - Cost to Reheat Flue Gas (Thermal Oxidizer)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 751,493

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 75,149

MN Sales Taxes 6.5% of control device cost (A) 48,847

Freight 5% of control device cost (A) 37,575

Purchased Equipment Total (B) 22% 913,064

Installation

Foundations & supports 8% of purchased equip cost (B) 73,045

Handling & erection 14% of purchased equip cost (B) 127,829

Electrical 4% of purchased equip cost (B) 36,523

Piping 2% of purchased equip cost (B) 18,261

Insulation 1% of purchased equip cost (B) 9,131

Painting 1% of purchased equip cost (B) 9,131

Installation Subtotal Standard Expenses 30% 273,919

Site Preparation, as required Site Specific NA

Buildings, as required Site Specific NA

Site Specific - Other Site Specific NA

Total Site Specific Costs NA

Installation Total 273,919

Total Direct Capital Cost, DC 1,186,983

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 91,306

Construction & field expenses 5% of purchased equip cost (B) 45,653

Contractor fees 10% of purchased equip cost (B) 91,306

Start-up 2% of purchased equip cost (B) 18,261

Performance test 1% of purchased equip cost (B) 9,131

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 27,392

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 283,050

Total Capital Investment (TCI) = DC + IC 1,470,033

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 1,470,033

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 61.00 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr 32,025

Supervisor 15% 15% of Operator Costs 4,804

Maintenance

Maintenance Labor 61.00 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr 32,025

Maintenance Materials 100% of maintenance labor costs 32,025

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 3,142 kW-hr, 8400 hr/yr, 93% utilization 1,251,747

Natural Gas 9.26 $/mscf, 4,361 scfm, 8400 hr/yr, 93% utilization 18,925,194

Total Annual Direct Operating Costs 20,277,820

Indirect Operating Costs

Overhead 60% of total labor and material costs 60,527

Administration (2% total capital costs) 2% of total capital costs (TCI) 29,401

Property tax (1% total capital costs) 1% of total capital costs (TCI) 14,700

Insurance (1% total capital costs) 1% of total capital costs (TCI) 14,700

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 138,761 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 258,089

Total Annual Cost (Annualized Capital Cost + Operating Cost) 20,535,909

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control Costs

EU030 Reheat EU030 Reheat 8 of 17
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3: NOx Control - Cost to Reheat Flue Gas (Thermal Oxidizer)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst: Catalyst

Equipment Life 3 years

CRF 0.3811

Rep part cost per unit 0 $/ft3

Amount Required 39 ft3

Catalyst Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQPS list replacement times from 5 - 20 min per bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Thermal 848,000 19 0.6 3,141.8 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 848,000 23 0.6 3,803.3 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 3141.8

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 8,400

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 525 32,025 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr

Supervisor 15% of Op. NA 4,804 15% of Operator Costs

Maintenance

Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 525 32,025 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 32,025 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 3141.8 kW-hr 24,544,054 1,251,747 $/kwh, 3,142 kW-hr, 8400 hr/yr, 93% utilization

Natural Gas 9.26 $/mscf 4,361 scfm 2,044,309 18,925,194 $/mscf, 4,361 scfm, 8400 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control Costs

EU030 Reheat EU030 Reheat 9 of 17
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3: NOx Control - Cost to Reheat Flue Gas (Thermal Oxidizer)

Flue Gas Re-Heat Equipment Cost Estimate Basis Thermal Oxidizer with 70% Heat Recovery

Auxiliary Fuel Use Equation 3.19 

Twi 132 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 565 Deg F - Temperature of waste gas out of heat recovery

Tfo 317 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 756,324 scfm - Flow of waste gas 

Qaf 4,361 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 760,686 scfm Flue Gas Cost in 1989 $'s $630,284

Current Cost Using CHE Plant Cost Index $751,493

Heat Rec % A B

0 10,294 0.2355 Exponents per equation 3.24

0.3 13,149 0.2609 Exponents per equation 3.25

0.5 17,056 0.2502 Exponents per equation 3.26

0.7 21,342 0.2500 Exponents per equation 3.27

Indurator Flue Gas Heat Capacity - Basis Typical Composition

100 scfm 359 scf/lbmole

Gas Composition lb/hr f wt % Cp Gas Cp Flue

28 mw CO 0 v % 0

44 mw CO2 15 v % 184 22.0% 0.24 0.0528

18 mw H2O 10 v % 50 6.0% 0.46 0.0276

28 mw N2 60 v % 468 56.0% 0.27 0.1512

32 mw O2 15 v % 134 16.0% 0.23 0.0368

Cp Flue Gas 100 v % 836 100.0% 0.2684

Reference: OAQPS Control Cost Manual 5th Ed Feb 1996 - Chapter 3 Thermal & Catalytic Incinerators

 (EPA 453/B-96-001)

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control Costs

EU030 Reheat EU030 Reheat 10 of 17
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4: NOx Control - Ported Kilns

Operating Unit: Indurating Furnace

Emission Unit Number EU 030 Stack/Vent Number SV051M

Design Capacity 350 mmbtu/hr Standardized Flow Rate 704,757 scfm @ 32o F

Expected Utilization Rate 93% Temperature 132 Deg F

Expected Annual Hours of Operation 8,400 Hours Moisture Content 16.5%

Annual Interest Rate 7.0% Actual Flow Rate 848,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 756,324 scfm @ 68o F

Dry Std Flow Rate 631,531 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs(1)

Minntac Line 4/5 Budget Estimate = 5,000,000 $ 

Total Capital Investment (TCI) = DC + IC 6,465,590

Minntac Line 4/5 volumetric flow = 650,000 acfm

Operating Costs(2) Keetac volumetric flow = 848,000 acfm

Total Annual Cost (Annualized Capital Cost) 610,306

Use "6/10 Rule" to calculate Keetac Cost = 6,465,590 $ 

Capital Recovery Factor

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Capital Recovery Cost 610,306

Emission Control Cost Calculation

Max Emis Annual Cont Eff(3) Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 1,397.0 4,154.0 5% 3946.3 207.7 2,938 

Notes & Assumptions

1 Capital costs based on Minntac Line 4/5 Budget Estimate and scaled using stack flow rate.

2 Total annualized cost is equal to the annualized capital cost.

3 Control efficiency based on report, "NOX Emissions Analysis Pre and Post Installation of Air Injection Ports on Line 7 at USS/Minntac."
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5: SO2 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Indurating Furnace

Emission Unit Number EU 030 Stack/Vent Number SV051M

Standardized Flow Rate 704,757 scfm @ 32o F

Expected Utilization Rate 93% Temperature 132 Deg F

Expected Annual Hours of Operation 8,400 Hours Moisture Content 16.5%

Annual Interest Rate 7.0% Actual Flow Rate 848,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 756,324 scfm @ 68o F

Dry Std Flow Rate 631,531 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 8,928,933

 Purchased Equipment Total (B) 22% of control device cost (A) 10,848,654

 Installation - Standard Costs 67% of purchased equip cost (B) 7,268,598

 Installation - Site Specific Costs 6,200,000

 Installation Total 7,268,598

 Total Direct Capital Cost, DC 18,117,252

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 6,183,733

Total Capital Investment (TCI) = DC + IC 45,081,576

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 6,152,007

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 5,379,312

Total Annual Cost (Annualized Capital Cost + Operating Cost) 11,531,318

Actual

Emission Control Cost Calculation Emis

Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 1,397.0 4,154.0 0% 4154.0 - NA

Sulfur Dioxide (SO2) 950.5 400.0 80% 190.1 760.4 15,165 

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm

3 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control Costs

EU030 WWESP 9/7/2006 Page 12 of 17
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 8,928,933

Instrumentation 10% of control device cost (A) 892,893

MN Sales Taxes 6.5% of control device cost (A) 580,381

Freight 5% of control device cost (A) 446,447

Purchased Equipment Total (B) 22% 10,848,654

Installation

Foundations & supports 4% of purchased equip cost (B) 433,946

Handling & erection 50% of purchased equip cost (B) 5,424,327

Electrical 8% of purchased equip cost (B) 867,892

Piping 1% of purchased equip cost (B) 108,487

Insulation 2% of purchased equip cost (B) 216,973

Painting 2% of purchased equip cost (B) 216,973

Installation Subtotal Standard Expenses 67% 7,268,598

Total Direct Capital Cost, DC 18,117,252

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 2,169,731

Construction & field expenses 20% of purchased equip cost (B) 2,169,731

Contractor fees 10% of purchased equip cost (B) 1,084,865

Start-up 1% of purchased equip cost (B) 108,487

Performance test 1% of purchased equip cost (B) 108,487

Model Studies 2% of purchased equip cost (B) 216,973

Contingencies 3% of purchased equip cost (B) 325,460

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 6,183,733

Total Capital Investment (TCI) = DC + IC 24,300,985

Retrofit multiplier3

60% of TCI 14,580,591

Site preparation Site Specific 1,400,000

Structural Steel Site Specific 4,800,000

Site Specific - Other Site Specific NA

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 45,081,576

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 61.00 $/Hr, 2.0 hr/8 hr shift, 8400 hr/yr 128,100

Supervisor 15% 15% of Operator Costs 19,215

Maintenance

Maintenance Labor 61.00 $/Hr, 15.0 hr/wk, 8400 hr/yr 16,546

Maintenance Materials 1.00 % of Maintenance Labor 89,289

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 2,004 kW-hr, 8400 hr/yr, 93% utilization 798,356

Water 0.28 $/mgal, 4,240 gpm, 8400 hr/yr, 93% utilization 550,198

WW Treat Neutralization 1.69 $/mgal, 4,240 gpm, 8400 hr/yr, 93% utilization 3,355,208

Reagent 305.96 $/ton, 1,000 lb/hr, 8400 hr/yr, 93% utilization 1,195,094

Total Annual Direct Operating Costs 6,152,007

Indirect Operating Costs

Overhead 60% of total labor and material costs 151,890

Administration (2% total capital costs) 2% of total capital costs (TCI) 486,020

Property tax (1% total capital costs) 1% of total capital costs (TCI) 243,010

Insurance (1% total capital costs) 1% of total capital costs (TCI) 243,010

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 4,255,382 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 5,379,312

Total Annual Cost (Annualized Capital Cost + Operating Cost) 11,531,318

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control Costs

EU030 WWESP 9/7/2006 Page 13 of 17
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5: SO2 Control - Wet Walled Electrostatic Precipitator

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit

Amount Required 0

Total Rep Parts Cost 0

Installation Labor 0

Total Installed Cost 0

Annualized Cost 0

Electrical Use

Flow acfm D P in H2O kW

Fan Power 848,000 10 1,534.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 79.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 200,562 389.1 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 2,003.8

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 4240.00 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 1000.00 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 8,400

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 61 $/Hr 2.0 hr/8 hr shift 2,100 128,100 $/Hr, 2.0 hr/8 hr shift, 8400 hr/yr

Supervisor 15% of Op. NA 19,215 15% of Operator Costs

Maintenance

Maint Labor 61.00 $/Hr 15.0 hr/wk 660 16,546 $/Hr, 15.0 hr/wk, 8400 hr/yr

Maint Mtls 1 % of Purchase Cost NA 89,289 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 2003.8 kW-hr 15,654,040 798,356 $/kwh, 2,004 kW-hr, 8400 hr/yr, 93% utilization

Water 0.28 $/mgal 4,240.0 gpm 1,987,373 550,198 $/mgal, 4,240 gpm, 8400 hr/yr, 93% utilization

WW Treat Neutralization 1.69 $/mgal 4,240.0 gpm 1,987,373 3,355,208 $/mgal, 4,240 gpm, 8400 hr/yr, 93% utilization

Reagent 305.96 $/ton 1,000.0 lb/hr 3,906 1,195,094 $/ton, 1,000 lb/hr, 8400 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Keetac\Keetac Control Costs

EU030 WWESP 9/7/2006 Page 14 of 17
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.6: SO2

 Control - Wet Scrubber

Operating Unit: Indurating Furnace

Emission Unit Number EU 030 Stack/Vent Number SV051M

Standardized Flow Rate 704,757 scfm @ 32o F

Expected Utilization Rate 93% Temperature 132 Deg F

Expected Annual Hours of Operation 8,400 Hours Moisture Content 16.5%

Annual Interest Rate 7.0% Actual Flow Rate 848,000 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 756,324 scfm @ 68o F

Dry Std Flow Rate 631,531 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 6,173,828

 Purchased Equipment Total (B) 22% of control device cost (A) 7,501,201

 Installation - Standard Costs 85% of purchased equip cost (B) 6,376,021

 Installation - Site Specific Costs 6,200,000

 Installation Total 6,376,021

 Total Direct Capital Cost, DC 13,877,222

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 1,125,180

Total Capital Investment (TCI) = DC + IC 30,203,843

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 1,546,699

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,511,652

Total Annual Cost (Annualized Capital Cost + Operating Cost) 5,058,352

Actual

Emission Control Cost Calculation Emis

Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 1,397.0 4,154.0 0% 4154.0 - NA

Sulfur Dioxide (SO2) 950.5 400.0 60% 380.2 570.3 8,870 

Notes & Assumptions

1 Original estimate from STS Consultants. Use 0.6 Power law factor to adjust price to stack flow rate from bid basis of 500,000 acfm. 

2 Liquid/Gas ratio = 38 L/G = Gal/1,000 acf

3 Water Makeup Rate/Wastewater Discharge = 2.0% of circulating water rate

4 Evaporation rate calculated from steam table in Basic Principles and Calculations in Chemical Engineering Third Edition.

5 CUECost Workbook Version 1.0, USEPA Document Page 2

EU030 Wet Scrubber
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.6: SO2 Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 6,173,828

Instrumentation 10% of control device cost (A) 617,383

MN Sales Taxes 7% of control device cost (A) 401,299

Freight 5% of control device cost (A) 308,691

Purchased Equipment Total (B) 22% 7,501,201

Installation

Foundations & supports 12% of purchased equip cost (B) 900,144

Handling & erection 40% of purchased equip cost (B) 3,000,480

Electrical 1% of purchased equip cost (B) 75,012

Piping 30% of purchased equip cost (B) 2,250,360

Insulation 1% of purchased equip cost (B) 75,012

Painting 1% of purchased equip cost (B) 75,012

Installation Subtotal Standard Expenses 85% 6,376,021

Total Direct Capital Cost, DC 13,877,222

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 375,060

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 375,060

Start-up 1% of purchased equip cost (B) 75,012

Performance test 1% of purchased equip cost (B) 75,012

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 225,036

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 1,125,180

Total Capital Investment (TCI) = DC + IC 15,002,402

9,001,441

Retrofit multiplier5

60% of TCI

Site preparation Site Specific 1,400,000

Structural Steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 30,203,843

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr 32,025

Supervisor 15% 15% of Operator Costs 4,804

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr 32,025

Maintenance Materials 100% of maintenance labor costs 32,025

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 1,744 kW-hr, 8400 hr/yr, 93% utilization 694,798

Water 0.28 $/kgal, 796 gpm, 8400 hr/yr, 93% utilization 103,252

WW Treat Neutralization 1.69 $/kgal, 644 gpm, 8400 hr/yr, 93% utilization 509,992

Lime 91.62 $/ton, 385 lb/hr, 8400 hr/yr, 93% utilization 137,779

Total Annual Direct Operating Costs 1,546,699

Indirect Operating Costs

Overhead 60% of total labor and material costs 60,527

Administration (2% total capital costs) 2% of total capital costs (TCI) 300,048

Property tax (1% total capital costs) 1% of total capital costs (TCI) 150,024

Insurance (1% total capital costs) 1% of total capital costs (TCI) 150,024

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,851,029 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,511,652

Total Annual Cost (Annualized Capital Cost + Operating Cost) 5,058,352

See Summary page for notes and assumptions

EU030 Wet Scrubber
United States Steel: Keewatin Taconite Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.6: SO2 Control - Wet Scrubber

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst:

Equipment Life 20 years

CRF 0.0000

Rep part cost per unit 0 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0.00 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 10 min per bag (13 hr total) Labor at $29.65/hr OAQPS list replacement times from 5 - 20 min per bag.

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Scrubber 848,000 8.55 0.7 - 1,211.9 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.48

Flow Liquid SPGR ∆ P ft H2O Efficiency Hp kW

Circ Pump 32,224 gpm 1 60 0.7 - 519.2 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 796 gpm 1 60 0.7 - 12.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 1743.9

Reagent Use & Other Operating Costs

Caustic Use 400.00 lb/hr SO2 2.50 lb NaOH/lb SO2 1000.00 lb/hr Caustic

Lime Use 400.00 lb/hr SO2 0.96 lb Lime/lb SO2 385.00 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate2

32,224 gpm

Water Makeup Rate/WW Disch3

 = 2.0% of circulating water rate + evap. loss = 796 gpm

Evaporation Loss4

 = 151.21 gpm

Operating Cost Calculations Annual hours of operation: 8,400

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 61.00 $/Hr 0.5 hr/8 hr shift 525 32,025 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr

Supervisor 15% of Op. NA 4,804 15% of Operator Costs

Maintenance

Maint Labor 61.00 $/Hr 0.5 hr/8 hr shift 525 32,025 $/Hr, 0.5 hr/8 hr shift, 8400 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 32,025 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 1743.9 kW-hr 13,623,492 694,798 $/kwh, 1,744 kW-hr, 8400 hr/yr, 93% utilization

Water 0.28 $/kgal 795.7 gpm 372,956 103,252 $/kgal, 796 gpm, 8400 hr/yr, 93% utilization

WW Treat Neutralization 1.69 $/kgal 644.5 gpm 302,081 509,992 $/kgal, 644 gpm, 8400 hr/yr, 93% utilization

Lime 91.6 $/ton 385.0 lb/hr 1,504 137,779 $/ton, 385 lb/hr, 8400 hr/yr, 93% utilization

*annual use rate is in same units of measurement as the unit cost factor

See Summary page for notes and assumptions

EU030 Wet Scrubber