Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis<Table 1 >: Cost Summary

NOx Control Cost Summary 

Control Technology Control Eff % Controlled Emissions T/y Emission Reduction T/yr Installed Capital Cost $ Total Annual Cost $/yr Pollution Co

Cost $/to

Selective Catal

ytic Reduction (SCR) + Reheat

Line 1 Pellet Induration 80% 399.7 1751.5 $44,591,38

4 $22,183,231 $12,66

Line 2 Pellet Induration 80% 35.0 1598.3 $70,838,846 $33,856,89

4 $21,18

Line 2 Pellet Induration NG 80% 188.7 7975.8 $72,298,312 $36,202,33

4 $4,539 

SO2 Control Cost Summary 

Control Technology Control Eff % Controlled Emissions T/y Emission Reduction T/yr Installed Capital Cost $ Total Annual Cost $/yr Pollution Co

Cost $/to

Wet Walled Electrostatic Precipitator (WWESP)Line 1 Pellet Induration 80% 2.8 11.1 $29,805,809 $27,741,768 $2,501,9

Line 2 Pellet Induration 80% 549.9 2199.7 $41,621,612 $70,537,972 $32,06Wet Scrubber (Additional)Line 1 Pellet Induration 60% 5.5 8.3 $19,419,261 $6,120,650 $736,00Line 2 Pellet Induration 60% 1099.9 1649.8 $55,586,576 $16,148,88

4 $9,788

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Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis<Table 2>: - Summary of Utility, Chemical and Supply Costs

Operating Unit: Line 1 Pellet Induration Study Year 2006

Emission Unit Number EU 040Stack/Vent Number SV 046

Operating Unit: Line 2 Pellet Induration

Emission Unit Number EU 042Stack/Vent Number SV 048 & 049Line 1 furnace mmbtu 190Line 2 furnace mmbtu 400

Reference

Item Unit Cost Units Cost Year Data Source No

Operating Labor 45.31 $/hr 2006 Site Specific - United Taconite.

Maintenance Labor 47.22 $/hr 2006 Site Specific - United Taconite. Construction Labor Rate.

Electricity 0.04 $/kwh 2006 Site Specific - United Taconite. Purchased Cost.

Natural Gas 12.81 $/mscf 2006 Site Specific - United Taconite. $12.02/MMBtu @ 1066 Btu/scf.

Water 2.07 $/mgal 2006 Site Specific - United Taconite. Purchased Cost.

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.

Water Treatment-nanofiltration 33.00 $/mgal 2007 Site Specific - United Taconite. Cost to install and operate reverse 

Chemicals & SuppliesLime 88.98 $/ton 88.98 2006Ammonia (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 484.56 $/ton 280 2003 United Taconite 2006 costSCR Catalyst 141.00 $/ft3 Cormetech, Inc.

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

Operating InformationAnnual Op. Hrs EU040 6599 Hours BART spreadsheet. Maximum hours of operation 2004-

Annual Op. Hrs EU042 8688 Hours BART spreadsheet. Maximum hours of operation 2004-

Utilization Rate 93%Equipment Life 20 yrsStandardized Flow RateSV 046 308,345 scfm @ 32o F Calculated.SV 048 & 049 615,086 scfm @ 32o F Calculated.

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Reference

Item Unit Cost Units Cost Year Data Source No

TemperatureSV 046 129 Deg F BART spreadsheet.SV 048 & 049 121 Deg F BART spreadsheet. Weighted average.Moisture ContentSV 046 13.8% 2005

Y:\23\69\948 United Taconite Post EERP Testing\Data\Waste Gas Stack. Average from test results in : Line 1 

SV 048 & 049 13.8% 2005 Y:\23\69\872 United Tac\Data. Weighted average from test results 

Y:\23\69\872 United Tac\Data\SV04

Actual Flow RateSV 046 369,137 acfm BART spreadsheet.SV 048 & 049 726,000 acfm BART spreadsheet.Standardized Flow RateSV 046 330,907 scfm @ 68o F Calculated.SV 048 & 049 660,092 scfm @ 68o F Calculated.Dry Std Flow RateSV 046 285,110 dscfm @ 68o F Calculated.SV 048 & 049 568,896 dscfm @ 68o F Calculated.

Max Emis Actual Emissions lb/hr ton/year

Pollutant Lb/Hr Ton/year ('04&'05 Max) ppmv ppmv lb/mmbtuNitrous Oxides (NOx)SV 046 651.3 2,151.2 319 240.2 3.428070175 2005 plus 10%SV 048 & 049 375.2 1,633.3 92 91.4 8.279997057 2004 plus 10%SV 048 & 049 with NG only 2021.0 8,164.5 495 457.0Sulfur Dioxides (SO2)SV 046 4.2 13.9 1 1.1 2004 plus 10%SV 048 & 049 632.2 2,749.7 111 110.5 2004 plus 10%

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Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis<Table 6>: SOx Control - Wet Scrubber

Operating Unit: Line 2 Pellet Induration

Emission Unit Number EU 042 Stack/Vent Number SV 048 & 049

Standardized Flow Rate 615,086 scfm @ 32o F

Expected Utilization Rate 93% Temperature 121 Deg FExpected Annual Hours of Operation 8,688 Hours Moisture Content 13.8%Annual Interest Rate 7.0% Actual Flow Rate 726,000 acfmExpected Equipment Life 20 yrs Standardized Flow Rate 660,092 scfm @ 68o F

Dry Std Flow Rate 568,896 dscfm @ 68o F

CONTROL EQUIPMENT COSTSCapital Costs Direct Capital Costs (1) Purchased Equipment (A) 5,101,881 Purchased Equipment Total (B) 22% of control device cost (A) 6,198,786 Installation - Standard Costs 85% of purchased equip cost (B) 5,268,968 Installation - Site Specific Costs 33,072,587 Installation Total 5,268,968 Total Direct Capital Cost, DC 11,467,753 Total Indirect Capital Costs, IC 42% of purchased equip cost (B) 2,603,490

Total Capital Investment (TCI) = DC + IC 55,586,576Operating Costs Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 10,291,311 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 5,857,573Total Annual Cost (Annualized Capital Cost + Operating Cost) 16,148,884

Actual

Emission Control Cost Calculation Emissions

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

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

Nitrous Oxides (NOx) 375.2 1,633.3 0% 1633.3 - NA

Sulfur Dioxide (SO2) 2,749.7 632.2 60% 1099.9 1,649.8 9,788

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.

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Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis<Table 6>: SOx Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 5,101,881Instrumentation 10% of control device cost (A) 510,188MN Sales Taxes 7% of control device cost (A) 331,622Freight 5% of control device cost (A) 255,094

Purchased Equipment Total (B) 22% 6,198,786

Installation

Foundations & supports 12% of purchased equip cost (B) 743,854Handling & erection 40% of purchased equip cost (B) 2,479,514Electrical 1% of purchased equip cost (B) 61,988Piping 30% of purchased equip cost (B) 1,859,636Insulation 1% of purchased equip cost (B) 61,988Painting 1% of purchased equip cost (B) 61,988

Installation Subtotal Standard Expenses 85% 5,268,968

Total Direct Capital Cost, DC 11,467,753Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 309,939Construction & field expenses 0% of purchased equip cost (B) 0Contractor fees 5% of purchased equip cost (B) 309,939Start-up 1% of purchased equip cost (B) 61,988Performance test 1% of purchased equip cost (B) 61,988

Model Studies NA of purchased equip cost (B) NAContingencies 30% of purchased equip cost (B) 1,859,636

Total Indirect Capital Costs, IC 42% of purchased equip cost (B) 2,603,490

Total Capital Investment (TCI) = DC + IC 14,071,243

Retrofit multiplier5 60% of TCI 8,442,746

Sitework and foundations Site Specific 1,400,000Structural steel Site Specific 4,800,000Site Specific - Other-Production Downtime Downtime for construction tie-ins for 8 weeks; $479,868/day 26,872,587

Total Site Specific Costs 33,072,587

Total Capital Investment (TCI) Retrofit Installed 55,586,576

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Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis<Table 6>: SOx Control - Wet Scrubber

OPERATING COSTS

Direct Annual Operating Costs, DC Annual Cost % of Annual Cost

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours 24,603 0%Supervisor 15% 15% of Operator Costs 3,690 0%

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours 25,640 0%Maintenance Materials 100% of maintenance labor costs 25,640 0%

Utilities, Supplies, Replacements & Waste Management

Electricity 0.04 $/kwh, 1,493 kW-hr, annual operating hours, 93% utilization 482,525 3%Water 2.07 $/kgal, 681 gpm, annual operating hours, 93% utilization 683,595 4%WW Treat Neutralization 33.00 $/kgal, 552 gpm, annual operating hours, 93% utilization 8,826,899 55%Lime 88.98 $/ton, 608 lb/hr, annual operating hours, 93% utilization 218,719 1%

Total Annual Direct Operating Costs 10,291,311 64%

Indirect Operating Costs

Overhead 60% of total labor and material costs 47,744 0%

Administration (2% total capital costs) 2% of total capital costs (TCI) 281,425 2%Property tax (1% total capital costs) 1% of total capital costs (TCI) 140,712 1%Insurance (1% total capital costs) 1% of total capital costs (TCI) 140,712 1%Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 5,246,980 32%

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 5,857,573 36%

Total Annual Cost (Annualized Capital Cost + Operating Cost) 16,148,884 100%See Summary page for notes and assumptions

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Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis<Table 6>: SOx Control - Wet Scrubber

Capital Recovery FactorsPrimary InstallationInterest Rate 7.00%Equipment Life 20 yearsCRF 0.0944Replacement Catalyst:Equipment Life 20 yearsCRF 0.0000Rep part cost per unit 0 $/ft3Amount Required 0 ft3Packing Cost 0 Cost adjusted for freight & sales taxInstallation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)Total Installed Cost 0 Zero out if no replacement parts neededAnnualized Cost 0Replacement Parts & Equipment:Equipment Life 3CRF 0.3811Rep part cost per unit 0.00 $ eachAmount Required 0 NumberTotal Rep Parts Cost 0 Cost adjusted for freight & sales taxInstallation 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 neededAnnualized Cost 0Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Scrubber 726,000 8.55 0.7 - 1,037.5 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 27,588 gpm 1 60 0.7 - 444.5 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 681 gpm 1 60 0.7 - 11.0 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other Total 1493.0

Reagent Use & Other Operating CostsCaustic Use 632.17 lb/hr SO2 2.50 lb NaOH/lb SO2 1580.42 lb/hr Caustic

Lime Use 632.17 lb/hr SO2 0.96 lb Lime/lb SO2 608.46 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio Liquid/Gas ratio2 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate 27,588 gpmWater Makeup Rate/WW Disch3 = 2.0% of circulating water rate + evap. loss = 681 gpm

Evaporation Loss4 = 129 gpm

Blowdown = makeup - evap 552 gpm

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Cleveland Cliffs Incorporated: United Taconite

BART Report - <Appendix A> Emission Control Cost Analysis<Table 6>: SOx Control - Wet Scrubber

Operating Cost Calculations Annual hours of operation: 8,688

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* CostOperating LaborOp Labor 45.31 $/Hr 0.5 hr/8 hr shift 543 24,603 $/Hr, 0.5 hr/8 hr shift, Annual Operating Hours Supervisor 15% of Op. NA 3,690 15% of Operator Costs

MaintenanceMaint Labor 47.22 $/Hr 0.5 hr/8 hr shift 543 25,640 $/Hr, 0.5 hr/8 hr shift, Annual Operating HoursMaint Mtls 100 % of Maintenance Labor NA 25,640 100% of Maintenance LaborUtilities, Supplies, Replacements & Waste ManagementElectricity 0.040 $/kwh 1493.0 kW-hr 12,063,123 482,525 $/kwh, 1,493 kW-hr, annual operating hours, 93% utilizationWater 2.07 $/kgal 681.2 gpm 330,239 683,595 $/kgal, 681 gpm, annual operating hours, 93% utilizationWW Treat Neutralization 33.00 $/kgal 551.8 gpm 267,482 8,826,899 $/kgal, 552 gpm, annual operating hours, 93% utilization

Lime 89.0 $/ton 608.5 lb/hr 2,458 218,719 $/ton, 608 lb/hr, annual operating hours, 93% utilization

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

See Summary page for notes and assumptions

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