Tilden Taconite Indurating Line #1

Wet Scrubber (Absorber after existing ESP) based on Tilden TCI - retrofit factor

Given/Assumed

Uncontrolled SO2 emissions (TPY) 1,153.20 Tilden 9/11/2009

Absorber + auxiliary equipment $ 21,793,329 calculated from Tilden 12/28/2006 Installed Capital Cost adjusted to eliminate 60% retrofit factor

Sales taxes 6.0% Tilden 9/11/2009

Retrofit factor 60% assumed Barr estimates 1.6

SO2 Control efficiency 80% Tilden 12/28/2006

Operating Hours per Year 7,680 Tilden 9/11/2009

Operating Hours per Shift 8 assumed +RC[-5]*60*Assume!R[-1]C[-8]*'Ann Cost '!RC[-3]/1000

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

Chemical cost ($/ton) $ 90.80 Tilden 9/11/2009

Chemical usage (lb/hr) 421 calculated from Tilden 9/11/2009 varies directly with assumed control efficiency

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

Wastewater disposal ($/kgal) $ 3.80 OAQPS Control Cost Manual example Tilden estimates $100/kgal for reverse osmosis.

Wastewater generation (gpm) 1,182 calculated from Tilden 9/11/2009 varies directly with assumed control efficiency

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
Tilden Taconite Indurating Line #1

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

Cost Item Factor Cost

Direct Costs

Purchased equipment costs

Absorber + auxiliary equipment, EC A

Instrumentation 0.10 A $0

Sales taxes 0.060 A $0

Freight 0.05 +RC[-5]*60*Assume! $0R[-1]C[-8]*'Ann Cost '!RC[-3]/1000

Purchased equipment cost, PEC B= 0.21 A $0

Direct installation costs

Foundations & supports 0.12 B $0

Handling & erection 0.40 B $0

Electrical 0.01 B $0

Piping 0.30 B $0

Insulation 0.01 B $0

Painting 0.01 B $0

Direct installation costs x 0.6 x 0.85 B $0

Site preparation As required, SP

Buildings As required, Bldg.

Total Direct Costs, DC 1.85 B+SP+Bldg $0

Indirect Costs (installation)

Engineering 0.10 B $0

Construction and field expenses 0.10 B $0

Contractor fees 0.10 B $0

Start-up 0.01 B $0

Performance test 0.01 B $0

Contingencies 0.03 B $0

Total Indirect Costs, IC 0.35 B $0

Total Capital Investment = DC + IC 2.20 B+SP+Bldg $23,000,126
Tilden Taconite Indurating Line #1

Annual Cost factors for Gas Absorbers--OAQPS Control Cost Manual, Table 1.4

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 1,459 gpm * $ 0.40 /kgal = $268,960

Chemicals 421 lb/hr * $ 90.80 /ton = $146,721

Wastewater Disposal 1,182 gal/min * 60 min/hr *

7,680 hr/yr * $ 3.80 /kgal = $2,070,430

Maintenance

Labor 0.5 hr/shift $40,800

Material 100.00% of maintenance $40,800

Electricity All electricity equal to:

$ 0.05 $/kwh, * 1,999 kW-hr * 7,680 hr/yr = $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 $460,003

Property tax 1% of Total Capital Investment $230,001

Insurance 1% of Total Capital Investment $230,001

Capital recovery 0.0944 * Total Capital Investment $2,171,049

Total IC $3,168,166

Total Annual Cost DC + IC $6,581,117
Tilden Taconite Indurating Line #1 SO2

Uncontrolled emissions (TPY) 1,153.2

Control efficiency (%) 80%

Emission reduction (TPY) 923

Controlled emissions (TPY) 231

Total annualized cost ($/yr) $6,581,117

Cost/ton removed ($/T) $7,134

+RC[-5]*60*Assume!R[-1]C[-8]*'Ann Cost '!RC[-3]/1000