# Wenatchee Works

Potline Scrubbing Scenario: Scaled Cost Estimate Sumamry

Scrubbing Scenario (# of Potlines) 

## 1 Quote Used: 

## Average Interest Rate: 

## 7.00% Period of Annualization (Years) 

## 15 Cost Effectiveness ($/ton) 33,100 $ $/ton SOx Capital Equipment Costs

Total Purchased Equipment Costs (PEC) $60,046,604 Total Direct Installation Costs (DIC) $75,058,254 Total Direct Capital Costs (DCC) $135,104,858 Total Indirect Capital Costs (ICC) $15,011,651
Total Capital Investment Costs (TCIC) [DCC+ICC] $150,116,509

O&M Costs Total Direct Annual Costs $7,283,440 Total Indirect Annual Costs $7,414,455 Total Annual Operating and Maintenance Costs $14,697,895

Single Scrubber, 1 Controlled Potline(s) - Cost Effectiveness Summary
SO x

### Reduction 941 tpy Direct capital costs (DCC) 135,104,858 $ Indirect capital costs (ICC) 15,011,651 $ Total capital costs 150,116,509

$ Interest rate 7% Period of annualization 15 years Capital recovery discount factor 0.1098 Annualized capital cost 16,482,000 $ Total Annual Operating and Maintenance Costs 14,698,000 $ Total annual cost estimate 31,180,000 $ Cost of Wet Scrubber Control Option per ton SO x 

### reduced: 33,100 $

This cost summary is based on 1 Potline(s) being controlled, using the Average vendor quote at an Interest Rate of 7% for 15 years.
Alternate Scenario Summary 3/27/2013

### 1 Enter the # of Lines 

### Average Pick from Drop Down List 

### 7.00% Enter the % interest 

### 15 years Enter the # of years

Scaling Equation Exponentn

Potlines Vendor

Quote #1 Average (p 1 ) Reagent feed system 10% 0.33 $6,500,000 $7,350,000 Limestone Comsumption SO 2removal system 35% 0.50 $22,750,000 $25,725,000 Flow Rate Flue gas system 30% 0.50 $19,500,000 $22,050,000 Flow Rate By-product handling system 10% 0.40 $6,500,000 $7,350,000 Gypsum General support equipment 15% 0.15 $9,750,000 $11,025,000 Gypsum

TOTAL $65,000,000 $73,500,000 Value Calculations are based on the Hatch Scaling Equation: p 2= p 1 x (Q 2/Q 1 ) n

Reagent feed system $5,694,677 SO 2removal system $15,998,223 Flue gas system $13,712,763 By-product handling system $5,455,896 Cost Scaling Variable Q1 Q2 General support equipment $9,859,290
Parameter Tennesse

Potlines Wenatchee

Potline (Line #5 GTC) Wenatchee 1

Line Scenario $50,720,849 Clean flue gas flow rate (acfm) 1,582,432 612,009 612,009 Limestone consumption (tpy) 10,407 4,803 4,803 Gypsum production (tpy) 19,272 9,149 9,149 Note 1 : Scenario calculations have been estimated on the each line being equal.

$50,720,849 

## Scenario Cost Effectiveness : $33,100 $/ton SOx LSFO Two Scrubber Average Cost Calculation : $28,700,000 $8,200,000 $12,300,000 $82,000,000

TOTAL $9,859,290 $50,720,849

Two Scrubber Average Bid Estimate 

### Quote Used: Interest Rate: Period of Annualization: Scaling of Capital Equipment Costs Based on Vendor Proposals

Wenatchee Works Malaga, Washington Potline Scrubbing Scenario LSFO Scrubbing

Fraction of Total Equipment Cost Scrubber Component Tennessee Potline Scrubber Equipment Costs

Note 2 : Intalco 3-line Gypsum production rate is from page 3 of Final HATCH Pre-feisibility report (November 7, 2007) = 27,130 tpy $24,600,000 Vendor Quote #2 $8,200,000 Basis for HATCH Scaling Value

Scenario Cost Calculations (Average Bid $$) - (JDJ)

Potline $5,694,677 $15,998,223 $13,712,763 $5,455,896 Wenatchee Scrubber Equipment Cost Estimates (

Average Bid Scaled )

Capital Equipment Costs Wenatchee Single Scrubber Cost Calculations 3/27/2013

### Potlines Wenatchee Works Malaga, Washington

Value Notes/References Capital Investment Costs Direct Capital Costs (DCC) Purchased Equipment Costs (PEC) Adsorber vessels with internals $50,720,849 The two vendor average of $73,500,000 was based on the average vendor quotations for Tennessee Alcoa smelter, adjusted for Intalco's scrubber exhaust gas flow rate, limestone consumption, and gypsum generation, per the pre-feasibility report (Hatch 2007); the Intalco estimates were then scaled using Wenatchee Line #5's air flow to yield an adsoprber cost estimate of $50720849. Pumps Included Limestone prep Included Dewatering systems Included Fans Included Inlet ductwork Included Stacks Included Continuous Emission Monitoring system $80,000 $80,000 was the estimate for two Intalco scrubbing systems. Subtotal (EC) $50,800,849 Instrumentation $2,540,042 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (5% of EC; adjusted from 10% since basic instrumentation is included in proposal) Sales tax $4,165,670 State sales tax rate for Washington adjusted to 8.2% Freight $2,540,042 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (5% of EC) Total Purchased Equipment Costs (PEC) $60,046,604 Direct Installation Costs (DIC) Foundations and supports $7,205,592 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (12% of PEC) Handling and erection $48,037,283 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (80% of PEC; adjusted from 40% to account for retrofit of existing plant and onsite fabrication) Electrical $600,466 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (1% of PEC) Piping $18,013,981 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (30% of PEC) Insulation $600,466 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (1% of PEC) Painting $600,466 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (1% of PEC) Total Direct Installation Costs (DIC) $75,058,254 Total Direct Capital Costs $135,104,858 Sum of PEC and DIC Indirect Capital Costs (ICC) Engineering $3,002,330 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (5% of PEC; adjusted from 10% since vendor proposal included an allowance for engineering) Construction and field expenses $6,004,660 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (10% of PEC) Contractor fees $3,002,330 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (5% of PEC; adjusted from 10% based on assumption that vendor will oversee scrubber installation) Start-up $600,466 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (1% of PEC) Performance test $600,466 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (1% of PEC) Contingencies $1,801,398 USEPA 2002, Section 5.2, Chapter 1, Table 1.3 (3% of PEC) Total Indirect Capital Costs $15,011,651 Total Capital Investment Costs (TCIC) $150,116,509 Sum of DCC and ICC
References: Hatch. 2007. SO 2 Scrubbing for the INTALCO Primary Aluminum Smelter: Pre-Feasibility Report . July 26. USEPA. 2002. EPA Air Pollution Control Cost Manual , Sixth Edition. EPA/452/B-02-001. January. 

### Captial Investment Cost Analysis for SO 2

### Control Using a Wet Scrubber

Capital Cost Calcs (Potline) Wenatchee Single Scrubber Cost Calculations 3/27/2013

### Potlines Wenatchee Works Malaga, Washington

Value Units Notes/References Annual Operation and Maintenance Costs Direct Annual Costs (DAC) Operating labor Operator $324,120 Assumes $37 per hour with one full-time operator, 3 shifts per day Supervisor $48,618 USEPA 2002, Section 5.2, Chapter 1, Table 1.4 (15% of operator costs) Water $32,617 Water usage 168,609 gal/day Scaled from Intalco Pre-feasability Report (Hatch 2007) Cost of water $0.00053 $/gal Assumed the same $/gallon water costs as reported for Intalco. Limestone $158,510 Limestone usage 4,803 tons/yr Scaled from Intalco Pre-feasability Report (Hatch 2007) Cost of limestone $33 $/ton Assumes $28/ton for 8 mesh size limestone plus $5/ton for shipping by barge Compressed air $6,307 Compressed air usage 50 scfm Presumed equal to two scrubbers in Intalco's Pre-feasability Report (Hatch 2007) Not Scaled! Cost of compressed air $0.24 $/1000 scf Average compressed air generation cost for industrial facilities (http://www1.eere.energy.gov/industry/bestpractices/pdfs/comp ressed_air1.pdf) Gypsum disposal $1,326,605 Gypsum generation rate 9,149 ton/yr Scaled from Intalco Pre-feasability Report (Hatch 2007) Cost of gypsum disposal $145 $/ton Assumes USEPA's "No Disposal Cost" & "Syn-gyp Reuse" presumption at Intalco. Maintenance

Labor $673,920 Assumes $45 per hour with 4 full-time maintenance personnel, one shift per day, 5 days per week and 1 maintenance personnel for all other shifts [ Reasonable per Ed Potter, Manager USPP Maintenance (3-21-13) ]
Material $1,303,000 Cost for low sulfur boiler system with 1.7 macfm inlet/1.5 macfm outlet, which is smaller than the potline system with 2.2 macfm inlet/2.0 macfm outlet (Sargent & Lundy LLC 2003) Electricity $3,409,742 Electricity usage 7,400 kWh/hr Presumed equal to two scrubbers in Intalco's Pre-feasability Report (Hatch 2007) Not Scaled! Electricity cost $0.0526 $/kWh Facility average power rate for 2007 (Intalco controller) Total Direct Annual Costs $7,283,440 Indirect Annual Costs (IAC)
Overhead $1,409,795 USEPA 2002, Section 5.2, Chapter 1, Table 1.4 (60% of total labor and maintenance material costs) General and administrative costs $3,002,330 USEPA 2002, Section 5.2, Chapter 1, Table 1.4 (2% of TCIC) Property tax $1,501,165 USEPA 2002, Section 5.2, Chapter 1, Table 1.4 (1% of TCIC) Insurance $1,501,165 USEPA 2002, Section 5.2, Chapter 1, Table 1.4 (1% of TCIC) Total Indirect Annual Costs $7,414,455 Sum of PEC and DIC Total Annual Operating and Maintenance Costs $14,697,895 Sum of DAC and IAC
References: Hatch. 2007. SO 2 Scrubbing for the INTALCO Primary Aluminum Smelter: Pre-Feasibility Report . July 26. Sargent & Lundy LLC. 2003. Wet Flue Gas Desulfurization Technology Evaluation . Prepared for National Lime Association. January. USEPA. 2002. EPA Air Pollution Control Cost Manual , Sixth Edition. EPA/452/B-02-001. January.



### Operation and Maintenance Cost Analysis for SO 2

### Control Using a Wet Scrubber

O&M Cost Calcs (Potlines) Alternative Single Scrubber Cost Calculations

### Installation of LSFO Wet Scrubber on Potline Exhaust Reference

Uncontrolled Potline SO x

### emission rate: 5,480 lb/day Total Potline SOx Emission rate for 1 operating potline(s) Primary potline control system uncontrolled SO x

### emission rate 5,427 lb/day Modeled SO 2

### Emission Rate leaving the GTC SO x

### control efficiency 95% Controlled SO x

### emission rate 271 lb/day Uncontrolled annual SO x

### emissions 990.4 tpy Controlled annual SO x

### emissions 49.5 tpy SO x

### reduction: 940.9 tpy Direct capital costs (DCC) 135,104,858 $ Indirect capital costs (ICC) 15,011,651 $ Total capital costs 150,116,509 $
Interest rate 7% USEPA 2002, Section 1, Chapter 2.4.2 Period of annualization 15 years USEPA Cost Control Manual, Section 5, Table 1.4 & USEPA Region 8 Directives Capital recovery discount factor 0.1098 USEPA 2002, Section 1, Chapter 2.4.4.4, Equation 2.8a Annualized capital cost 16,482,000 $ USEPA 2002, Section 1, Chapter 2.4.4.4, Equation 2.8 Operating labor costs 324,120 $ Supervisory labor costs 48,618 $ Maintenance labor costs 673,920 $ Maintenance material costs 1,303,000 $ Electricity costs 3,409,742 $ Water costs 32,617 $ Limestone costs 158,510 $ Compressed air costs 6,307 $ Gypsum disposal costs 1,326,605 $ Overhead 1,409,795 $ Property tax 1,501,165 $ Insurance 1,501,165 $ General and administrative costs 3,002,330 $ Total annual cost estimate 31,180,000 $ Cost of Wet Scrubber Control Option per ton SO x 

### reduced 33,100 $

Potline Scrubber Cost Summary 

### Alternative Single Scrubber Cost Calculations

# Wenatchee Works

Parameter Tennesse Potlines Intalco

Potlines Clean flue gas flow rate (acfm) 1,582,432 1,814,880 [Calcularted Value: Flow Based Scaling using Intalco Values] Limestone consumption (tpy) 10,407 12,921 [Callculated Value: Note Below] Gypsum production (tpy) 19,272 24,607 [Callculated Value: Note Below] Water Consumption (gal/day) 500,000 [Callculated Value: Note Below]
Number of Potlines 2 3 One Line Comparative flue gas flow rate (acfm) 791,216 604,960 [Calculated value: Total scrubber flow ÷# of potlines controlled]

Limestone Consumption 14,244 tons INTALCO 

### 1,814,880 acfm INTALCO 

### 612,009 acfm Wenatchee 

### Line #5 Gypsum Production 14,244 tons INTALCO 

### 27,130 tons INTALCO 

### 4,803 tons Wenatchee 

### X tons Wenatchee 

### Water Usage 500,000 Gallons INTALCO



### 1,814,880 acfm INTALCO 

### 612,009 acfm Wenatchee 

### Scaled

= X = 168,609 Wenatchee Potline 612,009 4,803 9,149

gallons/day Wenatchee 

### 168,609

= 4,803 tons / yr of limestone Wenatchee



### = = 9,149 tons/ yr of gypsum Wenatchee 

### = X 612,009 1

$$$ Scaling and Parameter Data

## Wenatchee Works

Potline GTC Flow, Velocity, and Emission Calculations

Velocity Calculation Formula Q = A * V (Q = m 3 /sec, A = m 2 , V = m/s) 

### V = Q / A Q

π x D 2 

### 4
Velocity Calculation

Stack Diameter = 4.27 meter Conversion Calculation Volumetric Flow = 1,039,810 m 3/hour 

### 35.3147 ft 3 

### /m 3 

### 288.84 m 3 /s 

### 1039810 m3/hr x 35.3147' ft3/m3' = 36,720,550 ft 3 

### /hr π = 3.14 60 min/hour A = 14.32 m 2 

### 612,009 ft 3

### /minute

Q π x D 2 

### 4

289 14.32

V = 20.17 m/sec [Modeled GTC velocity]

3.28 ft/m V = 66.17 ft/sec

Potline GTC SO 2

### Emission Rate GTC 28.49 grams/sec 0.28 grams/sec 60 sec/minute 60 sec/minute 60 min/hour 60 min/hour 102,564 grams/hour 1,008 grams/hour
453.59 grams/pound 453.59 grams/pound
226.11 pounds/hr 2.22 pounds/hr 5427 pounds/day 53 pounds/day 5,480 pounds/day 8,760 hrs/yr 8,760 hrs/yr 1,980,767 lbs/year 19,467 lbs/year 2,000,234 lbs/year
2000 lbs/ton 2000 lbs/ton

990.4 tons SO2

### / year 10 tons SO2

### / year 1,000 tons SO2

### / year V =

V =

V =

Roof Monitor Total

Flow and Emission Calcs 7/7 3/27/2013