United Taconite Indurating Line #2

Given/Assumed

Flow rate (acfm) 797,316 adjusted from 568,896 dscfm @ 68 F UTac 10/25/07 BART update

Flue Gas Temperature (degrees F) 280 6/18/12 USS email to EPA

Uncontrolled SO2 emissions (TPY) 2749.7 UTac 10/25/07

SO2 molar weight 64

GSA and Baghouse (@ 910,000 acfm) $ 11,500,000 calculated from EPA cost info for 910,000 acfm @ 280 F at USS 6/18/12 USS email to EPA

Freight $ 1,074,758 EPA

Sales taxes 6.5% UTac 10/25/07

Retrofit factor 1.0 assumed

SO2 Control efficiency 95% PETC report

Operating Hours per Year 8,688 UTac 10/25/07

Operating Hours per Shift 8 assumed

Operating Shifts per Year 1,086 calculated

Utilization 93% UTac 10/25/07

Operating Labor Cost ($/hr) $ 45.31 UTac 10/25/07

Maintenance Labor Cost ($/hr) $ 47.22 UTac 10/25/07

Lime molar weight 56

Chemical usage molar ratio 1.4 PETC report

Chemical cost ($/ton) $ 125.00 EPA

Solvent usage (gal/kacfm) 2.9 calculated from ESSAR Steel PSD application updated 5/09/11

Solvent cost ($/kgal) $ 0.93 from ESSAR Steel PSD application updated 5/09/11

CaSO4 molar weight 172 dihydrate

Waste disposal ($/ton) $ 33.00 from ESSAR Steel PSD application updated 5/09/11

Gas Cleanaing System Electricity Cost $ 175,234 calculated from EPA cost info of $ 200,000 /yr for 910,000 acfm at USS

ID Fan Power $ 985,693 calculated from EPA cost info of $ 1,125,000 /yr for 910,000 acfm at USS USS 7/19/12

Equipment Life (yr) 20 UTac 10/25/07

Interest Rate (%) 7.00% UTac 10/25/07
United Taconite Indurating Line #2

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 $10,623,103 six-tenths power law

Instrumentation 0.10 A $1,062,310

Sales taxes 0.065 A $690,502

Freight A $1,074,758

Purchased equipment cost, PEC B= 1.18 A $13,450,674

Direct installation costs

Foundations & supports 0.12 B $1,614,081

Handling & erection 0.40 B $5,380,269

Electrical 0.01 B $134,507

Piping 0.30 B $4,035,202

Insulation 0.01 B $134,507

Painting 0.01 B $134,507

Direct installation costs x 1 x 0.85 B $11,433,073

Site preparation As required, SP

Buildings As required, Bldg.

Total Direct Costs, DC 1.85 B+SP+Bldg $24,883,746

Indirect Costs (installation)

Engineering 0.10 B $1,345,067

Construction and field expenses 0.10 B $1,345,067

Contractor fees 0.10 B $1,345,067

Start-up 0.01 B $134,507

Performance test 0.01 B $134,507

Contingencies 0.03 B $403,520

Total Indirect Costs, IC 0.35 B $4,707,736

Total Capital Investment = DC + IC 2.20 B+SP+Bldg $29,591,482
United Taconite Indurating Line #2

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

Cost Item Cost

Direct Annual Costs, DC

Operating labor

Operator 0.5 hr/shift $ 24,603

Supervisor 15% of operator $ 3,690

Operating materials

Solvent 2.9 gal/kacfm * 797,316 acfm = 2,272 gpm = $ 1,101,614

Chemicals 1.4 lb-mole CaO/lb-mole SO2 * 85,928 lb-moles SO2/yr = 117,912 lb-mole CaO/yr

 117,912 lb-mole CaO/yr * 56 lb/lb-mole = 6,603,099 lb CaO/yr

 6,603,099 lb CaO/yr/ 2,000 lb/ton * $ 125.00 / ton = $ 412,694

Waste Disposal 2,612 ton SO2 removed/yr = 81,632 mole SO2 removed/yr = 81,632 mole CaSO4-2H2O produced/yr =

 81,632 mole CaSO4-2H2O produced/yr * 172 lb/lb-mole = 7,020 tpy CaSO4-2H2O

 7,020 tpy CaSO4-2H2O * $ 33.00 /ton = $ 231,671

27% of CaO is wasted = 896 tpy * $ 33.00 /ton = $ 29,554

Maintenance

Labor 0.5 hr/shift $ 25,640

Material 100.00% of maintenance $ 25,640

Electricity Gas Cleanaing System Electricity Cost $ 175,234

ID Fan Power $ 985,693

Total DC $ 3,016,035

Indirect Annual Costs, IC

Overhead 60% of total labor and material costs $ 47,745

Administrative charges 2% of Total Capital Investment $ 591,830

Property tax exempt in MN $ -

Insurance 1% of Total Capital Investment $ 295,915

Capital recovery 0.0944 * Total Capital Investment $ 2,793,227

Total IC $ 3,728,716

Total Annual Cost DC + IC $ 6,744,751
United Taconite Indurating Line #2 SO2

Uncontrolled emissions (TPY) 2,749.7

Control efficiency (%) 95%

Emission reduction (TPY) 2,612

Controlled emissions (TPY) 137

Total annualized cost ($/yr) $6,744,751

Cost/ton removed ($/T) $2,582