**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 A bsorbers--OA** **QPS 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! R[-1]C[-8]*'Ann Cost '!RC[-3]/1000 $0 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