Ispat Inland Mining Company 9/6/2006

BART Report - Attachment A: Emission Control Cost AnalysisTable A.1: Cost Summary

NOx Control Cost Summary 

Control Technology Control Eff % Controlled Emissions T/y Emission Reduction T/yr Installed Capital Cost $ Annualized Operating Cost $/yr Pollution Control Cost $/ton

SV 014 80% 104.0 416.0 $33,429,177 $9,776,865 $23,504

SV 015 80% 133.8 535.2 $33,531,232 $9,928,660 $18,552SV 016 80% 206.2 824.9 $33,713,372 $10,288,957 $12,473SV 017 80% 283.8 1135.4 $33,855,392 $10,668,091 $9,396

SO2 Control Cost Summary 

Control Technology Control Eff % Controlled Emissions T/y Emission Reduction T/yr Installed Capital Cost $ Annualized Operating Cost $/yr Pollution Control Cost $/ton

SV 014 80% 9.0 35.8 $22,809,844 $4,184,373 $116,801

SV 015 80% 9.0 35.8 $22,809,844 $4,184,373 $116,801SV 016 80% 9.0 35.8 $22,809,844 $4,184,373 $116,801SV 017 80% 9.0 35.8 $22,809,844 $4,184,373 $116,801SV 014 60% 17.9 26.9 $16,454,216 $2,229,797 $82,989SV 015 60% 17.9 26.9 $16,454,216 $2,229,797 $82,989SV 016 60% 17.9 26.9 $16,454,216 $2,229,797 $82,989SV 017 60% 17.9 26.9 $16,454,216 $2,229,797 $82,989Wet Walled Electrostatic Precipitator (WWESP)(after existing scrubber)Secondary Wet Scrubber(after existing scrubber)Selective Catalytic Reduction with Reheat

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control CostsCost Summary 
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost AnalysisTable A.2: Summary of Utility, Chemical and Supply Costs

Operating Unit: Indurating Furnace Study Year 2006

Emission Unit Number EU 026Stack/Vent Number SV 014

Operating Unit: Indurating Furnace

Emission Unit Number EU 026Stack/Vent Number SV 015

Operating Unit: Indurating Furnace

Emission Unit Number EU 026Stack/Vent Number SV 016

Operating Unit: Indurating Furnace

Emission Unit Number EU 026Stack/Vent Number SV 017

Reference

Item Unit Cost Units Cost Year Data Source NotesOperating Labor 32 $/hr

Average union labor rate for MN mining industry

Maintenance Labor 32 $/hr

Average union labor rate for MN mining industry

Electricity 0.051 $/kwh 2006

Energy Information Administration. Expected annual average industrial price of electricity in the West North Central Division for 2007 - DOE http://tonto.eia.doe.gov/steo_query/app/elecpage

Natural Gas 9.2575 $/mscf 2005

Energy Information Administration. Average US Industrial Natural Gas Prices. July '05 to June '06. http://tonto.eia.doe.gov/dnav/ng/hist/n3035us3m.

Water 0.28 $/mgal 0.20 1995

EPA Air Pollution Control Cost Manual, 6th Ed 2002, Section 5 Ch 1, page 1-40

Annual Costs for Packed Tower Absorber Exampadjusted for 3% inflation.

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 $0.15 - $0.30 Avg 

3% 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, Ch 1.6 '98 coinflation

Wastewater Disposal Neutralization 1.69 $/mgal 1.50 2002

EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 2 Chapter 2.5.5.5

Section 2 lists $1- $2/1000 gal. Cost adjusted for 3 lists $1.30 - $2.15/1,000 gal

Chemicals & SuppliesLime 90.80 $/ton 90.80 2006 Estimate from Cutler-Magney Company.Oxygen 40.00 $/ton 2006 BOC estimate.

Ammonia (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 system example padjusted for 3% inflation.

Caustic 305.96 $/ton 280 2003 Hawkins Chemical 50% solution (50 Deg Be); includes delivery. '03 c

SCR 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 default.

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control CostsUtility Chem$ Data 
Operating Information

Annual Op. Hrs 7946 Hours Engineering Estimate

Utilization Rate 93%Equipment Life 20 yrs Engineering EstimateStandardized Flow RateSV 014 173,108 scfm @ 32o F Calculated.

SV 015 173,108 scfm @ 32o F Calculated.

SV 016 173,108 scfm @ 32o F Calculated.

SV 017 173,108 scfm @ 32o F Calculated.

TemperatureSV 014 124 Deg F BART spreadsheet.SV 015 124 Deg F BART spreadsheet.SV 016 124 Deg F BART spreadsheet.SV 017 124 Deg F BART spreadsheet.Moisture ContentSV 014 10.5% Assumed value.

SV 015 10.5% Assumed value.

SV 016 10.5% Assumed value.

SV 017 10.5% Assumed value.

Actual Flow RateSV 014 205,478 acfm BART spreadsheet.

SV 015 205,478 acfm BART spreadsheet.

SV 016 205,478 acfm BART spreadsheet.

SV 017 205,478 acfm BART spreadsheet.

Standardized Flow RateSV 014 185,775 scfm @ 68o F Calculated.

SV 015 185,775 scfm @ 68o F Calculated.

SV 016 185,775 scfm @ 68o F Calculated.

SV 017 185,775 scfm @ 68o F Calculated.

Dry Std Flow RateSV 014 166,268 dscfm @ 68o F Calculated.

SV 015 166,268 dscfm @ 68o F Calculated.

SV 016 166,268 dscfm @ 68o F Calculated.

SV 017 166,268 dscfm @ 68o F Calculated.

Max Emis Future Actual Emis. lb/hr ton/year

Pollutant Lb/Hr tpy ppmv ppmvNitrous Oxides (NOx)SV 014 155.4 520.0 130 99.6SV 015 200.0 669.0 168 128.1SV 016 308.3 1,031.1 259 197.5SV 017 424.3 1,419.2 356 271.8Sulfur Dioxides (SO2)SV 014 125.0 44.8 75 6.2SV 015 125.0 44.8 75 6.2SV 016 125.0 44.8 75 6.2SV 017 125.0 44.8 75 6.2

Max emissions are based on the permit limit and distributed to each stack based on 2005 stack test data. Future actual emissions based on 2005 stack tesMax emissions are based on emissions as reported in the BART questionairre

Future actual emissions based on AP-42 factors 

factor.

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control CostsUtility Chem$ Data 
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.a: NOx Control - Selective Catalytic Reduction with Reheat

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 014

Design Capacity 39 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs EPRI Correlation

 Purchased Equipment 10,607,954

 Purchased Equipment Total SCR Only 11,297,471

SCR + Reheat 11,940,272

Total Capital Investment (TCI) = DC + IC SCR + Reheat 33,429,177

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 5,853,091

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 3,953,922

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 9,776,865

Emission Control Cost Calculation

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

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

Nitrous Oxides (NOx) 155.4 520.0 80% 104.0 416.0 23,504 

Notes & Assumptions

1 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2.

2 For Calculation purposes, duty reflects increased flow rate, not actual duty.

3 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

4 Capital Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.43

5 Reagent Use per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.35

6 SCR Catalyst Volume per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.18 - 2.24

7 SCR Reactor Size per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31

8 SCR Catalyst Replacement per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.50 - 2.53

9 SCR Electrical Demand per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.48

10 SCR Maintenance Costs EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46

11 CUECost Workbook Version 1.0, USEPA Document Page 2

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BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.a: NOx Control - Selective Catalytic Reduction with Reheat

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (1)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 10,607,954

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 689,517

Freight 5% of control device cost (A) NA

Purchased Equipment Total 11,297,471

Indirect Installation

General Facilities 0% of purchased equip cost (A) 0

Engineering & Home Office 0% of purchased equip cost (A) 0

Process Contingency 0% of purchased equip cost (A) 0

Site Specific-Other 23% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 23% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 2,091,205

Total Plant Cost (D) A + B + C 16,032,575

Allowance for Funds During Construction (E) 0 for SCR 0

Royalty Allowance (F) 0 for SCR 0

Pre Production Costs (G) 2% of (D+E)) 320,652

Inventory Capital Reagent Vol * $/gal 18,190

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 16,371,417

Retrofit factor(11) 60% of TCI 9,822,850

Sitework and Foundations 1,400,000

Structural Steel 4,800,000

Total Capital Investment Retrofit Installed 32,394,267

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568

Supervisor 15% 15% of Operator Costs 9,535

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 245,571

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 414 kW-hr, 7946 hr/yr, 93% utilization 156,002

SCR Catalyst 64.71 Catalyst Replacement 124,656

Ammonia (29% aqua.) 0.12 $/lb, 536 lb/hr, 7946 hr/yr, 93% utilization 477,700

Total Annual Direct Operating Costs 1,077,032

Indirect Operating Costs

Overhead 60% of total labor and material costs 42,007

Administration (2% total capital costs) 2% of total capital costs (TCI) 327,428

Property tax (1% total capital costs) 1% of total capital costs (TCI) 163,714

Insurance (1% total capital costs) 1% of total capital costs (TCI) 163,714

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 3,057,790 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,754,654

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,831,686

See Summary page for notes and assumptions

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BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.a: NOx Control - Selective Catalytic Reduction with Reheat

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catayst Estimate amount of catalyst required 

Equipment Life 24,000 hours Vol. #1 2708 ft3

Cormetech, Inc.

FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc.

Rep part cost per unit $141 Flow #2 185,775 scfm

Vol #2 2842.2 ft3

Amount Required 2,842 ft3

Catalyst Cost 400,757

Y catalyst life factor 3 Years

Annualized Cost 124,656

Equivalent Duty 1,084 Plant Cap kW A 111,228

Est power platn eff 35% Unc Nox lb/mmBtu B 0.16 D=75*(300,000)*((B/1.5)^0.05*(C/100)^0.04)A)^0.35

Watt per Btu/hr 0.29307 Nox Red. Eff. C 80% E=D*A*0.0066

Equivalent power plant kW 111,228 Capital Cost $/kW D $95.37 $10,607,954.15 Total SCR Equipment

Uncontrolled Nox t/y 155.4 Fixed O&M E $70,012.50

Annual Operating Hrs 8000 Variable O&M F $219,032.81

Uncontrolled Nox lb/mmBtu 0.158 Ann Cap Factor G 0.82

Heat Input mmBtu/hr H 6,000

Electrical Use

Duty 1,084 MMBtu/hr kW

NOx Cont Eff 80% Power 413.9

NOx in 0.16 lb/MMBtu

n catalyst layers 4 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 413.9

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

155 lb/hr Neat 71.6 gal/hr

29% solution Volume 14 day inventory 24,060 gal $18,190 Inventory Cost

536 lb/hr

Design Basis Max Emis Control Eff (%)

lb/MMBtu 80%

Nitrous Oxides (NOx) 0.158

Actual 258,612 dscf/MMBtu

Method 19 Factor 9,200 dscf/MMBtu

Adjusted Duty 1,084 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 9,535 15% of Operator Costs

Maintenance

Maintenance Total 1.5 % of Total Capital Investment 245,571 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 413.9 kW-hr 3,058,863 156,002 $/kwh, 414 kW-hr, 7946 hr/yr, 93% utilization

SCR Catalyst 141 $/ft3 124,656 Catalyst Replacement

Ammonia (29% aqua.) 0.12 $/lb 536 lb/hr 3,961,050 477,700 $/lb, 536 lb/hr, 7946 hr/yr, 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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SV014 SCR SV014 SCR 6 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.a: NOx

 Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 014 Chemical Engineering

Design Capacity 39 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Chemical Plant Cost Index

Expected Utilization Rate 93% Temperature 124 Deg F 1998/1999 390

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 529,054

 Purchased Equipment Total (B) 22% of control device cost (A) 642,801

 Installation - Standard Costs 30% of purchased equip cost (B) 192,840

 Installation - Site Specific Costs NA

 Installation Total 192,840

 Total Direct Capital Cost, DC 835,641

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 4,776,058

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,945,179

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 

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SV014 Reheat SV014 Reheat 7 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.a: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 529,054

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 52,905

MN Sales Taxes 6.5% of control device cost (A) 34,389

Freight 5% of control device cost (A) 26,453

Purchased Equipment Total (B) 22% 642,801

Installation

Foundations & supports 8% of purchased equip cost (B) 51,424

Handling & erection 14% of purchased equip cost (B) 89,992

Electrical 4% of purchased equip cost (B) 25,712

Piping 2% of purchased equip cost (B) 12,856

Insulation 1% of purchased equip cost (B) 6,428

Painting 1% of purchased equip cost (B) 6,428

Installation Subtotal Standard Expenses 30% 192,840

Site Preparation, as required Site Specific NA

Buildings, as required Site Specific NA

Site Specific - Other Site Specific NA

Total Site Specific Costs NA

Installation Total 192,840

Total Direct Capital Cost, DC 835,641

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 64,280

Construction & field expenses 5% of purchased equip cost (B) 32,140

Contractor fees 10% of purchased equip cost (B) 64,280

Start-up 2% of purchased equip cost (B) 12,856

Performance test 1% of purchased equip cost (B) 6,428

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 19,284

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 1,034,910

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Supervisor 15% 15% of Operator Costs 2,384

Maintenance

Maintenance Labor 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Maintenance Materials 100% of maintenance labor costs 15,892

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization 286,916

Natural Gas 9.26 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization 4,439,082

Total Annual Direct Operating Costs 4,776,058

Indirect Operating Costs

Overhead 60% of total labor and material costs 30,036

Administration (2% total capital costs) 2% of total capital costs (TCI) 20,698

Property tax (1% total capital costs) 1% of total capital costs (TCI) 10,349

Insurance (1% total capital costs) 1% of total capital costs (TCI) 10,349

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 97,688 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,945,179

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

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Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.a: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst: Catalyst

Equipment Life 3 years

CRF 0.3811

Rep part cost per unit 0 $/ft3

Amount Required 39 ft3

Catalyst Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation 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 needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Thermal 205,478 19 0.6 761.3 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 205,478 23 0.6 921.6 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 761.3

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 2,384 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 761.3 kW-hr 5,625,810 286,916 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization

Natural Gas 9.26 $/mscf 1,081 scfm 479,512 4,439,082 $/mscf, 1,081 scfm, 7946 hr/yr, 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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BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.a: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Flue Gas Re-Heat Equipment Cost Estimate Basis Thermal Oxidizer with 70% Heat Recovery

Auxiliary Fuel Use Equation 3.19 

Twi 124 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 562 Deg F - Temperature of waste gas out of heat recovery

Tfo 312 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 185,775 scfm - Flow of waste gas 

Qaf 1,081 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 186,856 scfm Flue Gas Cost in 1989 $'s $443,723

Current Cost Using CHE Plant Cost Index $529,054

Heat Rec % A B

0 10,294 0.2355 Exponents per equation 3.24

0.3 13,149 0.2609 Exponents per equation 3.25

0.5 17,056 0.2502 Exponents per equation 3.26

0.7 21,342 0.2500 Exponents per equation 3.27

Indurator Flue Gas Heat Capacity - Basis Typical Composition

100 scfm 359 scf/lbmole

Gas Composition lb/hr f wt % Cp Gas Cp Flue

28 mw CO 0 v % 0

44 mw CO2 15 v % 184 22.0% 0.24 0.0528

18 mw H2O 10 v % 50 6.0% 0.46 0.0276

28 mw N2 60 v % 468 56.0% 0.27 0.1512

32 mw O2 15 v % 134 16.0% 0.23 0.0368

Cp Flue Gas 100 v % 836 100.0% 0.2684

Reference: OAQPS Control Cost Manual 5th Ed Feb 1996 - Chapter 3 Thermal & Catalytic Incinerators

 (EPA 453/B-96-001)

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BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.b: NOx Control - Selective Catalytic Reduction with Reheat

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 015

Design Capacity 50 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs EPRI Correlation

 Purchased Equipment 10,654,839

 Purchased Equipment Total SCR Only 11,347,404

SCR + Reheat 11,990,205

Total Capital Investment (TCI) = DC + IC SCR + Reheat 33,531,232

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 5,992,515

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 3,966,292

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 9,928,660

Emission Control Cost Calculation

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

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

Nitrous Oxides (NOx) 200.0 669.0 80% 133.8 535.2 18,552 

Notes & Assumptions

1 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2.

2 For Calculation purposes, duty reflects increased flow rate, not actual duty.

3 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

4 Capital Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.43

5 Reagent Use per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.35

6 SCR Catalyst Volume per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.18 - 2.24

7 SCR Reactor Size per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31

8 SCR Catalyst Replacement per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.50 - 2.53

9 SCR Electrical Demand per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.48

10 SCR Maintenance Costs EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46

11 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV015 SCR SV015 SCR 11 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.b: NOx Control - Selective Catalytic Reduction with Reheat

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (1)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 10,654,839

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 692,565

Freight 5% of control device cost (A) NA

Purchased Equipment Total 11,347,404

Indirect Installation

General Facilities 0% of purchased equip cost (A) 0

Engineering & Home Office 0% of purchased equip cost (A) 0

Process Contingency 0% of purchased equip cost (A) 0

Site Specific-Other 23% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 23% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 2,098,695

Total Plant Cost (D) A + B + C 16,089,998

Allowance for Funds During Construction (E) 0 for SCR 0

Royalty Allowance (F) 0 for SCR 0

Pre Production Costs (G) 2% of (D+E)) 321,800

Inventory Capital Reagent Vol * $/gal 23,404

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 16,435,201

Retrofit factor(11) 60% of TCI 9,861,121

Sitework and Foundations 1,400,000

Structural Steel 4,800,000

Total Capital Investment Retrofit Installed 32,496,322

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568

Supervisor 15% 15% of Operator Costs 9,535

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 246,528

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 418 kW-hr, 7946 hr/yr, 93% utilization 157,561

SCR Catalyst 64.71 Catalyst Replacement 124,656

Ammonia (29% aqua.) 0.12 $/lb, 690 lb/hr, 7946 hr/yr, 93% utilization 614,609

Total Annual Direct Operating Costs 1,216,457

Indirect Operating Costs

Overhead 60% of total labor and material costs 42,193

Administration (2% total capital costs) 2% of total capital costs (TCI) 328,704

Property tax (1% total capital costs) 1% of total capital costs (TCI) 164,352

Insurance (1% total capital costs) 1% of total capital costs (TCI) 164,352

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 3,067,423 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,767,024

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,983,481

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV015 SCR SV015 SCR 12 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.b: NOx Control - Selective Catalytic Reduction with Reheat

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catayst Estimate amount of catalyst required 

Equipment Life 24,000 hours Vol. #1 2708 ft3

Cormetech, Inc.

FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc.

Rep part cost per unit $141 Flow #2 185,775 scfm

Vol #2 2842.2 ft3

Amount Required 2,842 ft3

Catalyst Cost 400,757

Y catalyst life factor 3 Years

Annualized Cost 124,656

Equivalent Duty 1,084 Plant Cap kW A 111,228

Est power platn eff 35% Unc Nox lb/mmBtu B 0.20 D=75*(300,000)*((B/1.5)^0.05*(C/100)^0.04)A)^0.35

Watt per Btu/hr 0.29307 Nox Red. Eff. C 80% E=D*A*0.0066

Equivalent power plant kW 111,228 Capital Cost $/kW D $95.79 $10,654,839.28 Total SCR Equipment

Uncontrolled Nox t/y 200.0 Fixed O&M E $70,321.94

Annual Operating Hrs 8000 Variable O&M F $221,135.84

Uncontrolled Nox lb/mmBtu 0.203 Ann Cap Factor G 0.82

Heat Input mmBtu/hr H 6,000

Electrical Use

Duty 1,084 MMBtu/hr kW

NOx Cont Eff 80% Power 418.1

NOx in 0.20 lb/MMBtu

n catalyst layers 4 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 418.1

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

200 lb/hr Neat 92.1 gal/hr

29% solution Volume 14 day inventory 30,955 gal $23,404 Inventory Cost

690 lb/hr

Design Basis Max Emis Control Eff (%)

lb/MMBtu 80%

Nitrous Oxides (NOx) 0.203

Actual 201,004 dscf/MMBtu

Method 19 Factor 9,200 dscf/MMBtu

Adjusted Duty 1,084 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 9,535 15% of Operator Costs

Maintenance

Maintenance Total 1.5 % of Total Capital Investment 246,528 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 418.1 kW-hr 3,089,427 157,561 $/kwh, 418 kW-hr, 7946 hr/yr, 93% utilization

SCR Catalyst 141 $/ft3 124,656 Catalyst Replacement

Ammonia (29% aqua.) 0.12 $/lb 690 lb/hr 5,096,292 614,609 $/lb, 690 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV015 SCR SV015 SCR 13 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.b: NOx

 Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 015 Chemical Engineering

Design Capacity 50 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Chemical Plant Cost Index

Expected Utilization Rate 93% Temperature 124 Deg F 1998/1999 390

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 529,054

 Purchased Equipment Total (B) 22% of control device cost (A) 642,801

 Installation - Standard Costs 30% of purchased equip cost (B) 192,840

 Installation - Site Specific Costs NA

 Installation Total 192,840

 Total Direct Capital Cost, DC 835,641

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 4,776,058

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,945,179

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV015 Reheat SV015 Reheat 14 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.b: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 529,054

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 52,905

MN Sales Taxes 6.5% of control device cost (A) 34,389

Freight 5% of control device cost (A) 26,453

Purchased Equipment Total (B) 22% 642,801

Installation

Foundations & supports 8% of purchased equip cost (B) 51,424

Handling & erection 14% of purchased equip cost (B) 89,992

Electrical 4% of purchased equip cost (B) 25,712

Piping 2% of purchased equip cost (B) 12,856

Insulation 1% of purchased equip cost (B) 6,428

Painting 1% of purchased equip cost (B) 6,428

Installation Subtotal Standard Expenses 30% 192,840

Site Preparation, as required Site Specific NA

Buildings, as required Site Specific NA

Site Specific - Other Site Specific NA

Total Site Specific Costs NA

Installation Total 192,840

Total Direct Capital Cost, DC 835,641

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 64,280

Construction & field expenses 5% of purchased equip cost (B) 32,140

Contractor fees 10% of purchased equip cost (B) 64,280

Start-up 2% of purchased equip cost (B) 12,856

Performance test 1% of purchased equip cost (B) 6,428

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 19,284

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 1,034,910

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Supervisor 15% 15% of Operator Costs 2,384

Maintenance

Maintenance Labor 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Maintenance Materials 100% of maintenance labor costs 15,892

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization 286,916

Natural Gas 9.26 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization 4,439,082

Total Annual Direct Operating Costs 4,776,058

Indirect Operating Costs

Overhead 60% of total labor and material costs 30,036

Administration (2% total capital costs) 2% of total capital costs (TCI) 20,698

Property tax (1% total capital costs) 1% of total capital costs (TCI) 10,349

Insurance (1% total capital costs) 1% of total capital costs (TCI) 10,349

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 97,688 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,945,179

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV015 Reheat SV015 Reheat 15 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.b: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst: Catalyst

Equipment Life 3 years

CRF 0.3811

Rep part cost per unit 0 $/ft3

Amount Required 39 ft3

Catalyst Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation 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 needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Thermal 205,478 19 0.6 761.3 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 205,478 23 0.6 921.6 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 761.3

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 2,384 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 761.3 kW-hr 5,625,810 286,916 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization

Natural Gas 9.26 $/mscf 1,081 scfm 479,512 4,439,082 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV015 Reheat SV015 Reheat 16 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.b: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Flue Gas Re-Heat Equipment Cost Estimate Basis Thermal Oxidizer with 70% Heat Recovery

Auxiliary Fuel Use Equation 3.19 

Twi 124 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 562 Deg F - Temperature of waste gas out of heat recovery

Tfo 312 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 185,775 scfm - Flow of waste gas 

Qaf 1,081 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 186,856 scfm Flue Gas Cost in 1989 $'s $443,723

Current Cost Using CHE Plant Cost Index $529,054

Heat Rec % A B

0 10,294 0.2355 Exponents per equation 3.24

0.3 13,149 0.2609 Exponents per equation 3.25

0.5 17,056 0.2502 Exponents per equation 3.26

0.7 21,342 0.2500 Exponents per equation 3.27

Indurator Flue Gas Heat Capacity - Basis Typical Composition

100 scfm 359 scf/lbmole

Gas Composition lb/hr f wt % Cp Gas Cp Flue

28 mw CO 0 v % 0

44 mw CO2 15 v % 184 22.0% 0.24 0.0528

18 mw H2O 10 v % 50 6.0% 0.46 0.0276

28 mw N2 60 v % 468 56.0% 0.27 0.1512

32 mw O2 15 v % 134 16.0% 0.23 0.0368

Cp Flue Gas 100 v % 836 100.0% 0.2684

Reference: OAQPS Control Cost Manual 5th Ed Feb 1996 - Chapter 3 Thermal & Catalytic Incinerators

 (EPA 453/B-96-001)

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV015 Reheat SV015 Reheat 17 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.c: NOx Control - Selective Catalytic Reduction with Reheat

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 016

Design Capacity 77 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs EPRI Correlation

 Purchased Equipment 10,735,822

 Purchased Equipment Total SCR Only 11,433,650

SCR + Reheat #REF!

Total Capital Investment (TCI) = DC + IC SCR + Reheat 33,713,372

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 6,330,746

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 3,958,211

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 10,288,957

Emission Control Cost Calculation

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

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

Nitrous Oxides (NOx) 308.3 1,031.1 80% 206.2 824.9 12,473 

Notes & Assumptions

1 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2.

2 For Calculation purposes, duty reflects increased flow rate, not actual duty.

3 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

4 Capital Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.43

5 Reagent Use per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.35

6 SCR Catalyst Volume per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.18 - 2.24

7 SCR Reactor Size per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31

8 SCR Catalyst Replacement per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.50 - 2.53

9 SCR Electrical Demand per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.48

10 SCR Maintenance Costs EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46

11 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV016 SCR SV016 SCR 18 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.c: NOx Control - Selective Catalytic Reduction with Reheat

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (1)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 10,735,822

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 697,828

Freight 5% of control device cost (A) NA

Purchased Equipment Total 11,433,650

Indirect Installation

General Facilities 0% of purchased equip cost (A) 0

Engineering & Home Office 0% of purchased equip cost (A) 0

Process Contingency 0% of purchased equip cost (A) 0

Site Specific-Other 23% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 23% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 2,111,632

Total Plant Cost (D) A + B + C 16,189,181

Allowance for Funds During Construction (E) 0 for SCR 0

Royalty Allowance (F) 0 for SCR 0

Pre Production Costs (G) 2% of (D+E)) 323,784

Inventory Capital Reagent Vol * $/gal 36,074

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 16,549,039

Retrofit factor(11) 60% of TCI 9,929,423

Sitework and Foundations 1,400,000

Structural Steel 4,800,000

Total Capital Investment Retrofit Installed 32,678,462

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568

Supervisor 15% 15% of Operator Costs 9,535

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 248,236

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 428 kW-hr, 7946 hr/yr, 93% utilization 161,349

SCR Catalyst 64.71 Catalyst Replacement 124,656

Ammonia (29% aqua.) 0.12 $/lb, 1,063 lb/hr, 7946 hr/yr, 93% utilization 947,344

Total Annual Direct Operating Costs 1,554,687

Indirect Operating Costs

Overhead 60% of total labor and material costs 42,514

Administration (2% total capital costs) 2% of total capital costs (TCI) 330,981

Property tax (1% total capital costs) 1% of total capital costs (TCI) 165,490

Insurance (1% total capital costs) 1% of total capital costs (TCI) 165,490

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 3,084,616 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,789,091

Total Annual Cost (Annualized Capital Cost + Operating Cost) 5,343,779

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV016 SCR SV016 SCR 19 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.c: NOx Control - Selective Catalytic Reduction with Reheat

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catayst Estimate amount of catalyst required 

Equipment Life 24,000 hours Vol. #1 2708 ft3

Cormetech, Inc.

FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc.

Rep part cost per unit $141 Flow #2 185,775 scfm

Vol #2 2842.2 ft3

Amount Required 2,842 ft3

Catalyst Cost 400,757

Y catalyst life factor 3 Years

Annualized Cost 124,656

Equivalent Duty 1,084 Plant Cap kW A 111,228

Est power platn eff 35% Unc Nox lb/mmBtu B 0.31 D=75*(300,000)*((B/1.5)^0.05*(C/100)^0.04)A)^0.35

Watt per Btu/hr 0.29307 Nox Red. Eff. C 80% E=D*A*0.0066

Equivalent power plant kW 111,228 Capital Cost $/kW D $96.52 $10,735,821.98 Total SCR Equipment

Uncontrolled Nox t/y 308.3 Fixed O&M E $70,856.43

Annual Operating Hrs 8000 Variable O&M F $225,270.93

Uncontrolled Nox lb/mmBtu 0.313 Ann Cap Factor G 0.82

Heat Input mmBtu/hr H 6,000

Electrical Use

Duty 1,084 MMBtu/hr kW

NOx Cont Eff 80% Power 428.1

NOx in 0.31 lb/MMBtu

n catalyst layers 4 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 428.1

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

308 lb/hr Neat 142.0 gal/hr

29% solution Volume 14 day inventory 47,714 gal $36,074 Inventory Cost

1063 lb/hr

Design Basis Max Emis Control Eff (%)

lb/MMBtu 80%

Nitrous Oxides (NOx) 0.313

Actual 130,406 dscf/MMBtu

Method 19 Factor 9,200 dscf/MMBtu

Adjusted Duty 1,084 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 9,535 15% of Operator Costs

Maintenance

Maintenance Total 1.5 % of Total Capital Investment 248,236 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 428.1 kW-hr 3,163,707 161,349 $/kwh, 428 kW-hr, 7946 hr/yr, 93% utilization

SCR Catalyst 141 $/ft3 124,656 Catalyst Replacement

Ammonia (29% aqua.) 0.12 $/lb 1063 lb/hr 7,855,300 947,344 $/lb, 1,063 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV016 SCR SV016 SCR 20 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.c: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 016 Chemical Engineering

Design Capacity 77 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Chemical Plant Cost Index

Expected Utilization Rate 93% Temperature 124 Deg F 1998/1999 390

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 529,054

 Purchased Equipment Total (B) 22% of control device cost (A) 642,801

 Installation - Standard Costs 30% of purchased equip cost (B) 192,840

 Installation - Site Specific Costs NA

 Installation Total 192,840

 Total Direct Capital Cost, DC 835,641

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 4,776,058

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,945,179

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 

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Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.c: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 529,054

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 52,905

MN Sales Taxes 6.5% of control device cost (A) 34,389

Freight 5% of control device cost (A) 26,453

Purchased Equipment Total (B) 22% 642,801

Installation

Foundations & supports 8% of purchased equip cost (B) 51,424

Handling & erection 14% of purchased equip cost (B) 89,992

Electrical 4% of purchased equip cost (B) 25,712

Piping 2% of purchased equip cost (B) 12,856

Insulation 1% of purchased equip cost (B) 6,428

Painting 1% of purchased equip cost (B) 6,428

Installation Subtotal Standard Expenses 30% 192,840

Site Preparation, as required Site Specific NA

Buildings, as required Site Specific NA

Site Specific - Other Site Specific NA

Total Site Specific Costs NA

Installation Total 192,840

Total Direct Capital Cost, DC 835,641

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 64,280

Construction & field expenses 5% of purchased equip cost (B) 32,140

Contractor fees 10% of purchased equip cost (B) 64,280

Start-up 2% of purchased equip cost (B) 12,856

Performance test 1% of purchased equip cost (B) 6,428

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 19,284

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 1,034,910

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Supervisor 15% 15% of Operator Costs 2,384

Maintenance

Maintenance Labor 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Maintenance Materials 100% of maintenance labor costs 15,892

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization 286,916

Natural Gas 9.26 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization 4,439,082

Total Annual Direct Operating Costs 4,776,058

Indirect Operating Costs

Overhead 60% of total labor and material costs 30,036

Administration (2% total capital costs) 2% of total capital costs (TCI) 20,698

Property tax (1% total capital costs) 1% of total capital costs (TCI) 10,349

Insurance (1% total capital costs) 1% of total capital costs (TCI) 10,349

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 97,688 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,945,179

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

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Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.c: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst: Catalyst

Equipment Life 3 years

CRF 0.3811

Rep part cost per unit 0 $/ft3

Amount Required 39 ft3

Catalyst Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0.00 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation 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 needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Thermal 205,478 19 0.6 761.3 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 205,478 23 0.6 921.6 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 761.3

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 2,384 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 761.3 kW-hr 5,625,810 286,916 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization

Natural Gas 9.26 $/mscf 1,081 scfm 479,512 4,439,082 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

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Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.c: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Flue Gas Re-Heat Equipment Cost Estimate Basis Thermal Oxidizer with 70% Heat Recovery

Auxiliary Fuel Use Equation 3.19 

Twi 124 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 562 Deg F - Temperature of waste gas out of heat recovery

Tfo 312 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 185,775 scfm - Flow of waste gas 

Qaf 1,081 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 186,856 scfm Flue Gas Cost in 1989 $'s $443,723

Current Cost Using CHE Plant Cost Index $529,054

Heat Rec % A B

0 10,294 0.2355 Exponents per equation 3.24

0.3 13,149 0.2609 Exponents per equation 3.25

0.5 17,056 0.2502 Exponents per equation 3.26

0.7 21,342 0.2500 Exponents per equation 3.27

Indurator Flue Gas Heat Capacity - Basis Typical Composition

100 scfm 359 scf/lbmole

Gas Composition lb/hr f wt % Cp Gas Cp Flue

28 mw CO 0 v % 0

44 mw CO2 15 v % 184 22.0% 0.24 0.0528

18 mw H2O 10 v % 50 6.0% 0.46 0.0276

28 mw N2 60 v % 468 56.0% 0.27 0.1512

32 mw O2 15 v % 134 16.0% 0.23 0.0368

Cp Flue Gas 100 v % 836 100.0% 0.2684

Reference: OAQPS Control Cost Manual 5th Ed Feb 1996 - Chapter 3 Thermal & Catalytic Incinerators

 (EPA 453/B-96-001)

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Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.d: NOx Control - Selective Catalytic Reduction with Reheat

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 017

Design Capacity 105 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs EPRI Correlation

 Purchased Equipment 10,796,007

 Purchased Equipment Total SCR Only 11,497,747

SCR + Reheat 12,140,548

Total Capital Investment (TCI) = DC + IC SCR + Reheat 33,855,392

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. SCR + Reheat 6,692,685

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost SCR + Reheat 4,005,554

Total Annual Cost (Annualized Capital Cost + Operating Cost) SCR + Reheat 10,668,091

Emission Control Cost Calculation

Max Emis Annual Cont Eff Cont Emis Reduction Cont Cost

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

Nitrous Oxides (NOx) 424.3 1,419.2 80% 283.8 1,135.4 9,396 

Notes & Assumptions

1 Estimated Equipment Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2.

2 For Calculation purposes, duty reflects increased flow rate, not actual duty.

3 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2

4 Capital Cost per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.36 -2.43

5 Reagent Use per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.32 - 2.35

6 SCR Catalyst Volume per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.18 - 2.24

7 SCR Reactor Size per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.25 - 2.31

8 SCR Catalyst Replacement per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.50 - 2.53

9 SCR Electrical Demand per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.48

10 SCR Maintenance Costs EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 4.2 Chapter 2 Eq 2.46

11 CUECost Workbook Version 1.0, USEPA Document Page 2

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SV017 SCR SV017 SCR 25 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.d: NOx Control - Selective Catalytic Reduction with Reheat

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (1)

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 10,796,007

Instrumentation 10% of control device cost (A) NA

MN Sales Taxes 6.5% of control device cost (A) 701,740

Freight 5% of control device cost (A) NA

Purchased Equipment Total 11,497,747

Indirect Installation

General Facilities 0% of purchased equip cost (A) 0

Engineering & Home Office 0% of purchased equip cost (A) 0

Process Contingency 0% of purchased equip cost (A) 0

Site Specific-Other 23% Replacement Power, two weeks 2,643,899

Total Indirect Installation Costs (B) 23% of purchased equip cost (A) 2,643,899

Project Contingeny (C) 15% of (A + B) 2,121,247

Total Plant Cost (D) A + B + C 16,262,893

Allowance for Funds During Construction (E) 0 for SCR 0

Royalty Allowance (F) 0 for SCR 0

Pre Production Costs (G) 2% of (D+E)) 325,258

Inventory Capital Reagent Vol * $/gal 49,651

Total Capital Investment (TCI) = DC + IC D + E + F + G +H + I 16,637,801

Retrofit factor(11) 60% of TCI 9,982,681

Sitework and Foundations 1,400,000

Structural Steel 4,800,000

Total Capital Investment Retrofit Installed 32,820,482

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568

Supervisor 15% 15% of Operator Costs 9,535

Maintenance

Maintenance Total 1.50 % of Total Capital Investment 249,567

Maintenance Materials NA % of Maintenance Labor - 

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 439 kW-hr, 7946 hr/yr, 93% utilization 165,408

SCR Catalyst 64.71 Catalyst Replacement 124,656

Ammonia (29% aqua.) 0.12 $/lb, 1,463 lb/hr, 7946 hr/yr, 93% utilization 1,303,892

Total Annual Direct Operating Costs 1,916,627

Indirect Operating Costs

Overhead 60% of total labor and material costs 42,752

Administration (2% total capital costs) 2% of total capital costs (TCI) 332,756

Property tax (1% total capital costs) 1% of total capital costs (TCI) 166,378

Insurance (1% total capital costs) 1% of total capital costs (TCI) 166,378

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 3,098,021 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 3,806,286

Total Annual Cost (Annualized Capital Cost + Operating Cost) 5,722,912

See Summary page for notes and assumptions

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Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.d: NOx Control - Selective Catalytic Reduction with Reheat

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catayst Estimate amount of catalyst required 

Equipment Life 24,000 hours Vol. #1 2708 ft3

Cormetech, Inc.

FCW 0.3111 Flow #1 177,000 scfm Cormetech, Inc.

Rep part cost per unit $141 Flow #2 185,775 scfm

Vol #2 2842.2 ft3

Amount Required 2,842 ft3

Catalyst Cost 400,757

Y catalyst life factor 3 Years

Annualized Cost 124,656

Equivalent Duty 1,084 Plant Cap kW A 111,228

Est power platn eff 35% Unc Nox lb/mmBtu B 0.43 D=75*(300,000)*((B/1.5)^0.05*(C/100)^0.04)A)^0.35

Watt per Btu/hr 0.29307 Nox Red. Eff. C 80% E=D*A*0.0066

Equivalent power plant kW 111,228 Capital Cost $/kW D $97.06 $10,796,006.80 Total SCR Equipment

Uncontrolled Nox t/y 424.3 Fixed O&M E $71,253.64

Annual Operating Hrs 8000 Variable O&M F $228,901.35

Uncontrolled Nox lb/mmBtu 0.431 Ann Cap Factor G 0.82

Heat Input mmBtu/hr H 6,000

Electrical Use

Duty 1,084 MMBtu/hr kW

NOx Cont Eff 80% Power 438.9

NOx in 0.43 lb/MMBtu

n catalyst layers 4 layers

Press drop catalyst 1 in H2O per layer

Press drop duct 3 in H2O 

Total 438.9

Reagent Use & Other Operating Costs

Ammonia Use 56.0 lb/ft3 Density

424 lb/hr Neat 195.5 gal/hr

29% solution Volume 14 day inventory 65,671 gal $49,651 Inventory Cost

1463 lb/hr

Design Basis Max Emis Control Eff (%)

lb/MMBtu 80%

Nitrous Oxides (NOx) 0.431

Actual 94,746 dscf/MMBtu

Method 19 Factor 9,200 dscf/MMBtu

Adjusted Duty 1,084 MMBtu/hr

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 9,535 15% of Operator Costs

Maintenance

Maintenance Total 1.5 % of Total Capital Investment 249,567 % of Total Capital Investment

Maint Mtls 0 % of Maintenance Labor NA 0 0% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 438.9 kW-hr 3,243,304 165,408 $/kwh, 439 kW-hr, 7946 hr/yr, 93% utilization

SCR Catalyst 141 $/ft3 124,656 Catalyst Replacement

Ammonia (29% aqua.) 0.12 $/lb 1463 lb/hr 10,811,773 1,303,892 $/lb, 1,463 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV017 SCR SV017 SCR 27 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.d: NOx

 Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 017 Chemical Engineering

Design Capacity 105 mmbtu/hr Standardized Flow Rate 173,108 scfm @ 32o F Chemical Plant Cost Index

Expected Utilization Rate 93% Temperature 124 Deg F 1998/1999 390

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5% 2005 465

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm Inflation Adj 1.19

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 529,054

 Purchased Equipment Total (B) 22% of control device cost (A) 642,801

 Installation - Standard Costs 30% of purchased equip cost (B) 192,840

 Installation - Site Specific Costs NA

 Installation Total 192,840

 Total Direct Capital Cost, DC 835,641

 Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 4,776,058

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,945,179

Notes & Assumptions

1 Equipment cost estimate EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2.5.1 

2 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 3.2 Chapter 2 

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Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.d: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1) 529,054

Purchased Equipment Costs (A) - Absorber + packing + auxillary equipment, EC 

Instrumentation 10% of control device cost (A) 52,905

MN Sales Taxes 6.5% of control device cost (A) 34,389

Freight 5% of control device cost (A) 26,453

Purchased Equipment Total (B) 22% 642,801

Installation

Foundations & supports 8% of purchased equip cost (B) 51,424

Handling & erection 14% of purchased equip cost (B) 89,992

Electrical 4% of purchased equip cost (B) 25,712

Piping 2% of purchased equip cost (B) 12,856

Insulation 1% of purchased equip cost (B) 6,428

Painting 1% of purchased equip cost (B) 6,428

Installation Subtotal Standard Expenses 30% 192,840

Site Preparation, as required Site Specific NA

Buildings, as required Site Specific NA

Site Specific - Other Site Specific NA

Total Site Specific Costs NA

Installation Total 192,840

Total Direct Capital Cost, DC 835,641

Indirect Capital Costs

Engineering, supervision 10% of purchased equip cost (B) 64,280

Construction & field expenses 5% of purchased equip cost (B) 32,140

Contractor fees 10% of purchased equip cost (B) 64,280

Start-up 2% of purchased equip cost (B) 12,856

Performance test 1% of purchased equip cost (B) 6,428

Model Studies of purchased equip cost (B) 0

Contingencies 3% of purchased equip cost (B) 19,284

Total Indirect Capital Costs, IC 31% of purchased equip cost (B) 199,268

Total Capital Investment (TCI) = DC + IC 1,034,910

Adjusted TCI for Replacement Parts (Catalyst, Filter Bags, etc) for Capital Recovery Cost 1,034,910

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Supervisor 15% 15% of Operator Costs 2,384

Maintenance

Maintenance Labor 32.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Maintenance Materials 100% of maintenance labor costs 15,892

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization 286,916

Natural Gas 9.26 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization 4,439,082

Total Annual Direct Operating Costs 4,776,058

Indirect Operating Costs

Overhead 60% of total labor and material costs 30,036

Administration (2% total capital costs) 2% of total capital costs (TCI) 20,698

Property tax (1% total capital costs) 1% of total capital costs (TCI) 10,349

Insurance (1% total capital costs) 1% of total capital costs (TCI) 10,349

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 97,688 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 169,120

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,945,179

See Summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

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Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.d: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst: Catalyst

Equipment Life 3 years

CRF 0.3811

Rep part cost per unit 0 $/ft3

Amount Required 39 ft3

Catalyst Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation 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 needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Thermal 205,478 19 0.6 761.3 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Blower, Catalytic 205,478 23 0.6 921.6 EPA Cost Cont Manual 6th ed - Oxidizders Chapter 2.5.2.1

Oxidizer Type thermal (catalytic or thermal) 761.3

Reagent Use & Other Operating Costs Oxidizers - NA

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 2,384 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 761.3 kW-hr 5,625,810 286,916 $/kwh, 761 kW-hr, 7946 hr/yr, 93% utilization

Natural Gas 9.26 $/mscf 1,081 scfm 479,512 4,439,082 $/mscf, 1,081 scfm, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

Note: Select reagent, catayst and repacement parts by entering number in coluND U. Unhide Col U to enter choice.

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV017 Reheat SV017 Reheat 30 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.3.d: NOx Control - Cost of Flue Gas Reheat (Thermal Oxidizer)

Flue Gas Re-Heat Equipment Cost Estimate Basis Thermal Oxidizer with 70% Heat Recovery

Auxiliary Fuel Use Equation 3.19 

Twi 124 Deg F - Temperature of waste gas into heat recovery

Tfi 750 Deg F - Temperature of Flue gas into of heat recovery

Tref 77 Deg F - Reference temperature for fuel combustion calculations

FER 70% Factional Heat Recovery % Heat recovery section efficiency

Two 562 Deg F - Temperature of waste gas out of heat recovery

Tfo 312 Deg F - Temperature of flue gas into of heat recovery 

-hcaf 21502 Btu/lb Heat of combustion auxiliary fuel (methane)

-hwg 0 Btu/lb Heat of combustion waste gas

Cp wg 0.2684 Btu/lb - Deg F Heat Capacity of waste gas (air)

p wg 0.0739 lb/scf - Density of waste gas (air) at 77 Deg F

p af 0.0408 lb/scf - Density of auxiliary fuel (methane) at 77 Deg F

Qwg 185,775 scfm - Flow of waste gas 

Qaf 1,081 scfm - Flow of auxiliary fuel

Year 2005 Inflation Rate 3.0%

Cost Calculations 186,856 scfm Flue Gas Cost in 1989 $'s $443,723

Current Cost Using CHE Plant Cost Index $529,054

Heat Rec % A B

0 10,294 0.2355 Exponents per equation 3.24

0.3 13,149 0.2609 Exponents per equation 3.25

0.5 17,056 0.2502 Exponents per equation 3.26

0.7 21,342 0.2500 Exponents per equation 3.27

Indurator Flue Gas Heat Capacity - Basis Typical Composition

100 scfm 359 scf/lbmole

Gas Composition lb/hr f wt % Cp Gas Cp Flue

28 mw CO 0 v % 0

44 mw CO2 15 v % 184 22.0% 0.24 0.0528

18 mw H2O 10 v % 50 6.0% 0.46 0.0276

28 mw N2 60 v % 468 56.0% 0.27 0.1512

32 mw O2 15 v % 134 16.0% 0.23 0.0368

Cp Flue Gas 100 v % 836 100.0% 0.2684

Reference: OAQPS Control Cost Manual 5th Ed Feb 1996 - Chapter 3 Thermal & Catalytic Incinerators

 (EPA 453/B-96-001)

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV017 Reheat SV017 Reheat 31 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.a: SO2 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 014

Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 3,814,356

 Purchased Equipment Total (B) 22% of control device cost (A) 4,634,443

 Installation - Standard Costs 67% of purchased equip cost (B) 3,105,077

 Installation - Site Specific Costs 6,200,000

 Installation Total 3,105,077

 Total Direct Capital Cost, DC 7,739,520

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632

Total Capital Investment (TCI) = DC + IC 22,809,844

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 1,546,816

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,184,373

Actual

Emission Control Cost Calculation Emis

Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 155.4 520.0 0% 520.0 - NA

Sulfur Dioxide (SO2) 44.8 125.0 80% 9.0 35.8 116,801 

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm

3 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV014 WWESP 9/7/2006 Page 32 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.a: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 3,814,356

Instrumentation 10% of control device cost (A) 381,436

MN Sales Taxes 6.5% of control device cost (A) 247,933

Freight 5% of control device cost (A) 190,718

Purchased Equipment Total (B) 22% 4,634,443

Installation

Foundations & supports 4% of purchased equip cost (B) 185,378

Handling & erection 50% of purchased equip cost (B) 2,317,221

Electrical 8% of purchased equip cost (B) 370,755

Piping 1% of purchased equip cost (B) 46,344

Insulation 2% of purchased equip cost (B) 92,689

Painting 2% of purchased equip cost (B) 92,689

Installation Subtotal Standard Expenses 67% 3,105,077

Total Direct Capital Cost, DC 7,739,520

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 926,889

Construction & field expenses 20% of purchased equip cost (B) 926,889

Contractor fees 10% of purchased equip cost (B) 463,444

Start-up 1% of purchased equip cost (B) 46,344

Performance test 1% of purchased equip cost (B) 46,344

Model Studies 2% of purchased equip cost (B) 92,689

Contingencies 3% of purchased equip cost (B) 139,033

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632

Total Capital Investment (TCI) = DC + IC 10,381,152

Retrofit multiplier3

60% of TCI 6,228,691

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific NA

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 22,809,844

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568

Supervisor 15% 15% of Operator Costs 9,535

Maintenance

Maintenance Labor 32.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 4,125

Maintenance Materials 1.00 % of Maintenance Labor 38,144

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization 182,993

Water 0.28 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 126,112

WW Treat Neutralization 1.69 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 769,057

Caustic 305.96 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization 353,282

Total Annual Direct Operating Costs 1,546,816

Indirect Operating Costs

Overhead 60% of total labor and material costs 69,223

Administration (2% total capital costs) 2% of total capital costs (TCI) 207,623

Property tax (1% total capital costs) 1% of total capital costs (TCI) 103,812

Insurance (1% total capital costs) 1% of total capital costs (TCI) 103,812

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,153,088 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,184,373

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV014 WWESP 9/7/2006 Page 33 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.a: SO2 Control - Wet Walled Electrostatic Precipitator

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit

Amount Required 0

Total Rep Parts Cost 0

Installation Labor 0

Total Installed Cost 0

Annualized Cost 0

Electrical Use

Flow acfm D P in H2O kW

Fan Power 205,478 10 371.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 19.4 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 48,598 94.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 485.5

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 1027.39 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 312.50 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 9,535 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 15.0 hr/wk 660 4,125 $/Hr, 15.0 hr/wk, 7946 hr/yr

Maint Mtls 1 % of Purchase Cost NA 38,144 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 485.5 kW-hr 3,588,105 182,993 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization

Water 0.28 $/mgal 1,027.4 gpm 455,531 126,112 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization

WW Treat Neutralization 1.69 $/mgal 1,027.4 gpm 455,531 769,057 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization

Caustic 305.96 $/ton 312.5 lb/hr 1,155 353,282 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization

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

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV014 WWESP 9/7/2006 Page 34 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.b: SO2 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 015

Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 3,814,356

 Purchased Equipment Total (B) 22% of control device cost (A) 4,634,443

 Installation - Standard Costs 67% of purchased equip cost (B) 3,105,077

 Installation - Site Specific Costs 6,200,000

 Installation Total 3,105,077

 Total Direct Capital Cost, DC 7,739,520

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632

Total Capital Investment (TCI) = DC + IC 22,809,844

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 1,546,816

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,184,373

Actual

Emission Control Cost Calculation Emis

Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 200.0 669.0 0% 669.0 - NA

Sulfur Dioxide (SO2) 44.8 125.0 80% 9.0 35.8 116,801 

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm

3 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV015 WWESP 9/7/2006 Page 35 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.b: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 3,814,356

Instrumentation 10% of control device cost (A) 381,436

MN Sales Taxes 6.5% of control device cost (A) 247,933

Freight 5% of control device cost (A) 190,718

Purchased Equipment Total (B) 22% 4,634,443

Installation

Foundations & supports 4% of purchased equip cost (B) 185,378

Handling & erection 50% of purchased equip cost (B) 2,317,221

Electrical 8% of purchased equip cost (B) 370,755

Piping 1% of purchased equip cost (B) 46,344

Insulation 2% of purchased equip cost (B) 92,689

Painting 2% of purchased equip cost (B) 92,689

Installation Subtotal Standard Expenses 67% 3,105,077

Total Direct Capital Cost, DC 7,739,520

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 926,889

Construction & field expenses 20% of purchased equip cost (B) 926,889

Contractor fees 10% of purchased equip cost (B) 463,444

Start-up 1% of purchased equip cost (B) 46,344

Performance test 1% of purchased equip cost (B) 46,344

Model Studies 2% of purchased equip cost (B) 92,689

Contingencies 3% of purchased equip cost (B) 139,033

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632

Total Capital Investment (TCI) = DC + IC 10,381,152

Retrofit multiplier3

60% of TCI 6,228,691

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific NA

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 22,809,844

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568

Supervisor 15% 15% of Operator Costs 9,535

Maintenance

Maintenance Labor 32.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 4,125

Maintenance Materials 1.00 % of Maintenance Labor 38,144

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization 182,993

Water 0.28 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 126,112

WW Treat Neutralization 1.69 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 769,057

Caustic 305.96 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization 353,282

Total Annual Direct Operating Costs 1,546,816

Indirect Operating Costs

Overhead 60% of total labor and material costs 69,223

Administration (2% total capital costs) 2% of total capital costs (TCI) 207,623

Property tax (1% total capital costs) 1% of total capital costs (TCI) 103,812

Insurance (1% total capital costs) 1% of total capital costs (TCI) 103,812

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,153,088 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,184,373

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV015 WWESP 9/7/2006 Page 36 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.b: SO2 Control - Wet Walled Electrostatic Precipitator

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit

Amount Required 0

Total Rep Parts Cost 0

Installation Labor 0

Total Installed Cost 0

Annualized Cost 0

Electrical Use

Flow acfm D P in H2O kW

Fan Power 205,478 10 371.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 19.4 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 48,598 94.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 485.5

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 1027.39 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 312.50 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 9,535 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 15.0 hr/wk 660 4,125 $/Hr, 15.0 hr/wk, 7946 hr/yr

Maint Mtls 1 % of Purchase Cost NA 38,144 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 485.5 kW-hr 3,588,105 182,993 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization

Water 0.28 $/mgal 1,027.4 gpm 455,531 126,112 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization

WW Treat Neutralization 1.69 $/mgal 1,027.4 gpm 455,531 769,057 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization

Caustic 305.96 $/ton 312.5 lb/hr 1,155 353,282 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization

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

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV015 WWESP 9/7/2006 Page 37 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.c: SO2 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 016

Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 3,814,356

 Purchased Equipment Total (B) 22% of control device cost (A) 4,634,443

 Installation - Standard Costs 67% of purchased equip cost (B) 3,105,077

 Installation - Site Specific Costs 6,200,000

 Installation Total 3,105,077

 Total Direct Capital Cost, DC 7,739,520

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632

Total Capital Investment (TCI) = DC + IC 22,809,844

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 1,546,816

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,184,373

Actual

Emission Control Cost Calculation Emis

Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 308.3 1,031.1 0% 1031.1 - NA

Sulfur Dioxide (SO2) 44.8 125.0 80% 9.0 35.8 116,801 

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm

3 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV016 WWESP 9/7/2006 Page 38 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.c: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 3,814,356

Instrumentation 10% of control device cost (A) 381,436

MN Sales Taxes 6.5% of control device cost (A) 247,933

Freight 5% of control device cost (A) 190,718

Purchased Equipment Total (B) 22% 4,634,443

Installation

Foundations & supports 4% of purchased equip cost (B) 185,378

Handling & erection 50% of purchased equip cost (B) 2,317,221

Electrical 8% of purchased equip cost (B) 370,755

Piping 1% of purchased equip cost (B) 46,344

Insulation 2% of purchased equip cost (B) 92,689

Painting 2% of purchased equip cost (B) 92,689

Installation Subtotal Standard Expenses 67% 3,105,077

Total Direct Capital Cost, DC 7,739,520

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 926,889

Construction & field expenses 20% of purchased equip cost (B) 926,889

Contractor fees 10% of purchased equip cost (B) 463,444

Start-up 1% of purchased equip cost (B) 46,344

Performance test 1% of purchased equip cost (B) 46,344

Model Studies 2% of purchased equip cost (B) 92,689

Contingencies 3% of purchased equip cost (B) 139,033

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632

Total Capital Investment (TCI) = DC + IC 10,381,152

Retrofit multiplier3

60% of TCI 6,228,691

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific NA

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 22,809,844

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568

Supervisor 15% 15% of Operator Costs 9,535

Maintenance

Maintenance Labor 32.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 4,125

Maintenance Materials 1.00 % of Maintenance Labor 38,144

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization 182,993

Water 0.28 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 126,112

WW Treat Neutralization 1.69 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 769,057

Caustic 305.96 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization 353,282

Total Annual Direct Operating Costs 1,546,816

Indirect Operating Costs

Overhead 60% of total labor and material costs 69,223

Administration (2% total capital costs) 2% of total capital costs (TCI) 207,623

Property tax (1% total capital costs) 1% of total capital costs (TCI) 103,812

Insurance (1% total capital costs) 1% of total capital costs (TCI) 103,812

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,153,088 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,184,373

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV016 WWESP 9/7/2006 Page 39 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.c: SO2 Control - Wet Walled Electrostatic Precipitator

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit

Amount Required 0

Total Rep Parts Cost 0

Installation Labor 0

Total Installed Cost 0

Annualized Cost 0

Electrical Use

Flow acfm D P in H2O kW

Fan Power 205,478 10 371.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 19.4 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 48,598 94.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 485.5

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 1027.39 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 312.50 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 9,535 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 15.0 hr/wk 660 4,125 $/Hr, 15.0 hr/wk, 7946 hr/yr

Maint Mtls 1 % of Purchase Cost NA 38,144 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 485.5 kW-hr 3,588,105 182,993 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization

Water 0.28 $/mgal 1,027.4 gpm 455,531 126,112 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization

WW Treat Neutralization 1.69 $/mgal 1,027.4 gpm 455,531 769,057 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization

Caustic 305.96 $/ton 312.5 lb/hr 1,155 353,282 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization

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

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV016 WWESP 9/7/2006 Page 40 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.d: SO2 Control - Wet Walled Electrostatic Precipitator

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 017

Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs

 Purchased Equipment (A) 3,814,356

 Purchased Equipment Total (B) 22% of control device cost (A) 4,634,443

 Installation - Standard Costs 67% of purchased equip cost (B) 3,105,077

 Installation - Site Specific Costs 6,200,000

 Installation Total 3,105,077

 Total Direct Capital Cost, DC 7,739,520

 Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632

Total Capital Investment (TCI) = DC + IC 22,809,844

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 1,546,816

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,184,373

Actual

Emission Control Cost Calculation Emis

Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 424.3 1,419.2 0% 1419.2 - NA

Sulfur Dioxide (SO2) 44.8 125.0 80% 9.0 35.8 116,801 

Notes & Assumptions

1 Calculations per EPA Air Pollution Control Cost Manual 6th Ed 2002, Section 6 Chapter 3.

2 Original estimate from Durr. Used 0.6 power law factor to adjust price to stack flow rate acfm from bid basis of 291,000 acfm

3 CUECost Workbook Version 1.0, USEPA Document Page 2

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV017 WWESP 9/7/2006 Page 41 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.d: SO2 Control - Wet Walled Electrostatic Precipitator

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A)1

Purchased Equipment Costs (A)2 - ESP + auxiliary equipment 3,814,356

Instrumentation 10% of control device cost (A) 381,436

MN Sales Taxes 6.5% of control device cost (A) 247,933

Freight 5% of control device cost (A) 190,718

Purchased Equipment Total (B) 22% 4,634,443

Installation

Foundations & supports 4% of purchased equip cost (B) 185,378

Handling & erection 50% of purchased equip cost (B) 2,317,221

Electrical 8% of purchased equip cost (B) 370,755

Piping 1% of purchased equip cost (B) 46,344

Insulation 2% of purchased equip cost (B) 92,689

Painting 2% of purchased equip cost (B) 92,689

Installation Subtotal Standard Expenses 67% 3,105,077

Total Direct Capital Cost, DC 7,739,520

Indirect Capital Costs

Engineering, supervision 20% of purchased equip cost (B) 926,889

Construction & field expenses 20% of purchased equip cost (B) 926,889

Contractor fees 10% of purchased equip cost (B) 463,444

Start-up 1% of purchased equip cost (B) 46,344

Performance test 1% of purchased equip cost (B) 46,344

Model Studies 2% of purchased equip cost (B) 92,689

Contingencies 3% of purchased equip cost (B) 139,033

Total Indirect Capital Costs, IC 57% of purchased equip cost (B) 2,641,632

Total Capital Investment (TCI) = DC + IC 10,381,152

Retrofit multiplier3

60% of TCI 6,228,691

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific NA

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 22,809,844

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 32.00 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr 63,568

Supervisor 15% 15% of Operator Costs 9,535

Maintenance

Maintenance Labor 32.00 $/Hr, 15.0 hr/wk, 7946 hr/yr 4,125

Maintenance Materials 1.00 % of Maintenance Labor 38,144

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization 182,993

Water 0.28 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 126,112

WW Treat Neutralization 1.69 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization 769,057

Caustic 305.96 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization 353,282

Total Annual Direct Operating Costs 1,546,816

Indirect Operating Costs

Overhead 60% of total labor and material costs 69,223

Administration (2% total capital costs) 2% of total capital costs (TCI) 207,623

Property tax (1% total capital costs) 1% of total capital costs (TCI) 103,812

Insurance (1% total capital costs) 1% of total capital costs (TCI) 103,812

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 2,153,088 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 2,637,557

Total Annual Cost (Annualized Capital Cost + Operating Cost) 4,184,373

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV017 WWESP 9/7/2006 Page 42 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.4.d: SO2 Control - Wet Walled Electrostatic Precipitator

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit

Amount Required 0

Total Rep Parts Cost 0

Installation Labor 0

Total Installed Cost 0

Annualized Cost 0

Electrical Use

Flow acfm D P in H2O kW

Fan Power 205,478 10 371.9 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.46

Fluid Head (ft) Pump Eff.

Pump Power 60 60% 19.4 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.47

Plate Area

ESP Power 48,598 94.3 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3 Eq 3.48

Total 485.5

Reagent Use & Other Operating Costs

gpm

Water 5.00 gal/min-kacfm 1027.39 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.6

lb/hr

Reagent Use 2.50 lb NaOH/lb SO2 312.50 lb/hr caustic

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93.0%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32 $/Hr 2.0 hr/8 hr shift 1,987 63,568 $/Hr, 2.0 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 9,535 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 15.0 hr/wk 660 4,125 $/Hr, 15.0 hr/wk, 7946 hr/yr

Maint Mtls 1 % of Purchase Cost NA 38,144 EPA Cont Cost Manual 6th ed - Sec 6 Ch 3.4.1.1

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 485.5 kW-hr 3,588,105 182,993 $/kwh, 486 kW-hr, 7946 hr/yr, 93% utilization

Water 0.28 $/mgal 1,027.4 gpm 455,531 126,112 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization

WW Treat Neutralization 1.69 $/mgal 1,027.4 gpm 455,531 769,057 $/mgal, 1,027 gpm, 7946 hr/yr, 93% utilization

Caustic 305.96 $/ton 312.5 lb/hr 1,155 353,282 $/ton, 313 lb/hr, 7946 hr/yr, 93% utilization

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

See summary page for notes and assumptions

Y:\23\00 MN Taconite BART (2006)\Facility Control Cost Spreadsheets\Ispat\Ispat Inland Control Costs

SV017 WWESP 9/7/2006 Page 43 of 55
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.a: SO2

 Control - Wet Scrubber

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 014

Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 2,637,401

 Purchased Equipment Total (B) 22% of control device cost (A) 3,204,443

 Installation - Standard Costs 85% of purchased equip cost (B) 2,723,776

 Installation - Site Specific Costs 6,200,000

 Installation Total 2,723,776

 Total Direct Capital Cost, DC 5,928,219

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666

Total Capital Investment (TCI) = DC + IC 16,454,216

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 390,244

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,229,797

Actual

Emission Control Cost Calculation Emis

Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 155.4 520.0 0% 520.0 - NA

Sulfur Dioxide (SO2) 44.8 125.0 60% 17.9 26.9 82,989 

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

SV014 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.a: SO2 Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment1 (A)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 2,637,401

Instrumentation 10% of control device cost (A) 263,740

MN Sales Taxes 7% of control device cost (A) 171,431

Freight 5% of control device cost (A) 131,870

Purchased Equipment Total (B) 22% 3,204,443

Installation

Foundations & supports 12% of purchased equip cost (B) 384,533

Handling & erection 40% of purchased equip cost (B) 1,281,777

Electrical 1% of purchased equip cost (B) 32,044

Piping 30% of purchased equip cost (B) 961,333

Insulation 1% of purchased equip cost (B) 32,044

Painting 1% of purchased equip cost (B) 32,044

Installation Subtotal Standard Expenses 85% 2,723,776

Total Direct Capital Cost, DC 5,928,219

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 160,222

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 160,222

Start-up 1% of purchased equip cost (B) 32,044

Performance test 1% of purchased equip cost (B) 32,044

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 96,133

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666

Total Capital Investment (TCI) = DC + IC 6,408,885

Retrofit multiplier560% of TCI 3,845,331

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 16,454,216

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Supervisor 15% 15% of Operator Costs 2,384

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Maintenance Materials 100% of maintenance labor costs 15,892

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization 159,257

Water 0.28 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization 23,667

WW Treat Neutralization 1.69 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization 116,897

Lime 90.80 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization 40,364

Total Annual Direct Operating Costs 390,244

Indirect Operating Costs

Overhead 60% of total labor and material costs 30,036

Administration (2% total capital costs) 2% of total capital costs (TCI) 128,178

Property tax (1% total capital costs) 1% of total capital costs (TCI) 64,089

Insurance (1% total capital costs) 1% of total capital costs (TCI) 64,089

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,553,162 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,229,797

See Summary page for notes and assumptions

SV014 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.a: SO2 Control - Wet Scrubber

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst:

Equipment Life 20 years

CRF 0.0000

Rep part cost per unit 0 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0.00 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation 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 needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Scrubber 205,478 8.55 0.7 - 293.6 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 7,808 gpm 1 60 0.7 - 125.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 193 gpm 1 60 0.7 - 3.1 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 422.6

Reagent Use & Other Operating Costs

Caustic Use 125.00 lb/hr SO2 2.50 lb NaOH/lb SO2 312.50 lb/hr Caustic

Lime Use 125.00 lb/hr SO2 0.96 lb Lime/lb SO2 120.31 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate2

7,808 gpm

Water Makeup Rate/WW Disch3 = 2.0% of circulating water rate + evap. loss = 193 gpm

Evaporation Loss4

 = 36.64 gpm

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 2,384 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 422.6 kW-hr 3,122,678 159,257 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization

Water 0.28 $/kgal 192.8 gpm 85,486 23,667 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization

WW Treat Neutralization 1.69 $/kgal 156.2 gpm 69,241 116,897 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization

Lime 90.8 $/ton 120.3 lb/hr 445 40,364 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

SV014 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.a: SO2

 Control - Wet Scrubber

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 015

Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 2,637,401

 Purchased Equipment Total (B) 22% of control device cost (A) 3,204,443

 Installation - Standard Costs 85% of purchased equip cost (B) 2,723,776

 Installation - Site Specific Costs 6,200,000

 Installation Total 2,723,776

 Total Direct Capital Cost, DC 5,928,219

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666

Total Capital Investment (TCI) = DC + IC 16,454,216

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 390,244

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,229,797

Actual

Emission Control Cost Calculation Emis

Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 200.0 669.0 0% 669.0 - NA

Sulfur Dioxide (SO2) 44.8 125.0 60% 17.9 26.9 82,989 

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

SV015 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.a: SO2 Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 2,637,401

Instrumentation 10% of control device cost (A) 263,740

MN Sales Taxes 7% of control device cost (A) 171,431

Freight 5% of control device cost (A) 131,870

Purchased Equipment Total (B) 22% 3,204,443

Installation

Foundations & supports 12% of purchased equip cost (B) 384,533

Handling & erection 40% of purchased equip cost (B) 1,281,777

Electrical 1% of purchased equip cost (B) 32,044

Piping 30% of purchased equip cost (B) 961,333

Insulation 1% of purchased equip cost (B) 32,044

Painting 1% of purchased equip cost (B) 32,044

Installation Subtotal Standard Expenses 85% 2,723,776

Total Direct Capital Cost, DC 5,928,219

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 160,222

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 160,222

Start-up 1% of purchased equip cost (B) 32,044

Performance test 1% of purchased equip cost (B) 32,044

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 96,133

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666

Total Capital Investment (TCI) = DC + IC 6,408,885

Retrofit multiplier560% of TCI 3,845,331

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 16,454,216

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Supervisor 15% 15% of Operator Costs 2,384

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Maintenance Materials 100% of maintenance labor costs 15,892

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization 159,257

Water 0.28 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization 23,667

WW Treat Neutralization 1.69 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization 116,897

Lime 90.80 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization 40,364

Total Annual Direct Operating Costs 390,244

Indirect Operating Costs

Overhead 60% of total labor and material costs 30,036

Administration (2% total capital costs) 2% of total capital costs (TCI) 128,178

Property tax (1% total capital costs) 1% of total capital costs (TCI) 64,089

Insurance (1% total capital costs) 1% of total capital costs (TCI) 64,089

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,553,162 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,229,797

See Summary page for notes and assumptions

SV015 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.a: SO2 Control - Wet Scrubber

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst:

Equipment Life 20 years

CRF 0.0000

Rep part cost per unit 0 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0.00 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation 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 needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Scrubber 205,478 8.55 0.7 - 293.6 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 7,808 gpm 1 60 0.7 - 125.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 193 gpm 1 60 0.7 - 3.1 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 422.6

Reagent Use & Other Operating Costs

Caustic Use 125.00 lb/hr SO2 2.50 lb NaOH/lb SO2 312.50 lb/hr Caustic

Lime Use 125.00 lb/hr SO2 0.96 lb Lime/lb SO2 120.31 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate2

7,808 gpm

Water Makeup Rate/WW Disch3

 = 2.0% of circulating water rate + evap. loss = 193 gpm

Evaporation Loss4

 = 36.64 gpm

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 2,384 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 422.6 kW-hr 3,122,678 159,257 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization

Water 0.28 $/kgal 192.8 gpm 85,486 23,667 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization

WW Treat Neutralization 1.69 $/kgal 156.2 gpm 69,241 116,897 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization

Lime 90.8 $/ton 120.3 lb/hr 445 40,364 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

SV015 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.c: SO2 Control - Wet Scrubber

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 016

Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 2,637,401

 Purchased Equipment Total (B) 22% of control device cost (A) 3,204,443

 Installation - Standard Costs 85% of purchased equip cost (B) 2,723,776

 Installation - Site Specific Costs 6,200,000

 Installation Total 2,723,776

 Total Direct Capital Cost, DC 5,928,219

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666

Total Capital Investment (TCI) = DC + IC 16,454,216

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 390,244

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,229,797

Actual

Emission Control Cost Calculation Emis

Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 308.3 1,031.1 0% 1031.1 - NA

Sulfur Dioxide (SO2) 44.8 125.0 60% 17.9 26.9 82,989 

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

SV016 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.c: SO2 Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 2,637,401

Instrumentation 10% of control device cost (A) 263,740

MN Sales Taxes 7% of control device cost (A) 171,431

Freight 5% of control device cost (A) 131,870

Purchased Equipment Total (B) 22% 3,204,443

Installation

Foundations & supports 12% of purchased equip cost (B) 384,533

Handling & erection 40% of purchased equip cost (B) 1,281,777

Electrical 1% of purchased equip cost (B) 32,044

Piping 30% of purchased equip cost (B) 961,333

Insulation 1% of purchased equip cost (B) 32,044

Painting 1% of purchased equip cost (B) 32,044

Installation Subtotal Standard Expenses 85% 2,723,776

Total Direct Capital Cost, DC 5,928,219

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 160,222

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 160,222

Start-up 1% of purchased equip cost (B) 32,044

Performance test 1% of purchased equip cost (B) 32,044

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 96,133

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666

Total Capital Investment (TCI) = DC + IC 6,408,885

Retrofit multiplier560% of TCI 3,845,331

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 16,454,216

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Supervisor 15% 15% of Operator Costs 2,384

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Maintenance Materials 100% of maintenance labor costs 15,892

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization 159,257

Water 0.28 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization 23,667

WW Treat Neutralization 1.69 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization 116,897

Lime 90.80 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization 40,364

Total Annual Direct Operating Costs 390,244

Indirect Operating Costs

Overhead 60% of total labor and material costs 30,036

Administration (2% total capital costs) 2% of total capital costs (TCI) 128,178

Property tax (1% total capital costs) 1% of total capital costs (TCI) 64,089

Insurance (1% total capital costs) 1% of total capital costs (TCI) 64,089

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,553,162 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,229,797

See Summary page for notes and assumptions

SV016 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.c: SO2 Control - Wet Scrubber

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst:

Equipment Life 20 years

CRF 0.0000

Rep part cost per unit 0 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0.00 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation 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 needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Scrubber 205,478 8.55 0.7 - 293.6 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 7,808 gpm 1 60 0.7 - 125.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 193 gpm 1 60 0.7 - 3.1 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 422.6

Reagent Use & Other Operating Costs

Caustic Use 125.00 lb/hr SO2 2.50 lb NaOH/lb SO2 312.50 lb/hr Caustic

Lime Use 125.00 lb/hr SO2 0.96 lb Lime/lb SO2 120.31 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate2

7,808 gpm

Water Makeup Rate/WW Disch3 = 2.0% of circulating water rate + evap. loss = 193 gpm

Evaporation Loss4 = 36.64 gpm

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 2,384 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 422.6 kW-hr 3,122,678 159,257 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization

Water 0.28 $/kgal 192.8 gpm 85,486 23,667 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization

WW Treat Neutralization 1.69 $/kgal 156.2 gpm 69,241 116,897 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization

Lime 90.8 $/ton 120.3 lb/hr 445 40,364 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

SV016 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.d: SO2 Control - Wet Scrubber

Operating Unit: Indurating Furnace

Emission Unit Number EU 026 Stack/Vent Number SV 017

Standardized Flow Rate 173,108 scfm @ 32o F

Expected Utilization Rate 93% Temperature 124 Deg F

Expected Annual Hours of Operation 7,946 Hours Moisture Content 10.5%

Annual Interest Rate 7.0% Actual Flow Rate 205,478 acfm

Expected Equipment Life 20 yrs Standardized Flow Rate 185,775 scfm @ 68o F

Dry Std Flow Rate 166,268 dscfm @ 68o F

CONTROL EQUIPMENT COSTS

Capital Costs

 Direct Capital Costs (1)

 Purchased Equipment (A) 2,637,401

 Purchased Equipment Total (B) 22% of control device cost (A) 3,204,443

 Installation - Standard Costs 85% of purchased equip cost (B) 2,723,776

 Installation - Site Specific Costs 6,200,000

 Installation Total 2,723,776

 Total Direct Capital Cost, DC 5,928,219

 Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666

Total Capital Investment (TCI) = DC + IC 16,454,216

Operating Costs

 Total Annual Direct Operating Costs Labor, supervision, materials, replacement parts, utilities, etc. 390,244

 Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,229,797

Actual

Emission Control Cost Calculation Emis

Max Emis Annual Cont Eff Exit Conc. Cont Emis Reduction Cont Cost

Pollutant Lb/Hr T/Yr % Conc. Units T/yr T/yr $/Ton Rem

Nitrous Oxides (NOx) 424.3 1,419.2 0% 1419.2 - NA

Sulfur Dioxide (SO2) 44.8 125.0 60% 17.9 26.9 82,989 

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

SV017 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.d: SO2 Control - Wet Scrubber

CAPITAL COSTS

Direct Capital Costs

Purchased Equipment (A) (1)

Purchased Equipment Costs (A) - Absorber + packing + auxiliary equipment, EC 2,637,401

Instrumentation 10% of control device cost (A) 263,740

MN Sales Taxes 7% of control device cost (A) 171,431

Freight 5% of control device cost (A) 131,870

Purchased Equipment Total (B) 22% 3,204,443

Installation

Foundations & supports 12% of purchased equip cost (B) 384,533

Handling & erection 40% of purchased equip cost (B) 1,281,777

Electrical 1% of purchased equip cost (B) 32,044

Piping 30% of purchased equip cost (B) 961,333

Insulation 1% of purchased equip cost (B) 32,044

Painting 1% of purchased equip cost (B) 32,044

Installation Subtotal Standard Expenses 85% 2,723,776

Total Direct Capital Cost, DC 5,928,219

Indirect Capital Costs

Engineering, supervision 5% of purchased equip cost (B) 160,222

Construction & field expenses 0% of purchased equip cost (B) 0

Contractor fees 5% of purchased equip cost (B) 160,222

Start-up 1% of purchased equip cost (B) 32,044

Performance test 1% of purchased equip cost (B) 32,044

Model Studies NA of purchased equip cost (B) NA

Contingencies 3% of purchased equip cost (B) 96,133

Total Indirect Capital Costs, IC 15% of purchased equip cost (B) 480,666

Total Capital Investment (TCI) = DC + IC 6,408,885

Retrofit multiplier560% of TCI 3,845,331

Sitework and foundations Site Specific 1,400,000

Structural steel Site Specific 4,800,000

Site Specific - Other Site Specific 0

Total Site Specific Costs 6,200,000

Total Capital Investment (TCI) Retrofit Installed 16,454,216

OPERATING COSTS

Direct Annual Operating Costs, DC

Operating Labor

Operator 37.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Supervisor 15% 15% of Operator Costs 2,384

Maintenance

Maintenance Labor 40.00 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr 15,892

Maintenance Materials 100% of maintenance labor costs 15,892

Utilities, Supplies, Replacements & Waste Management

Electricity 0.05 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization 159,257

Water 0.28 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization 23,667

WW Treat Neutralization 1.69 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization 116,897

Lime 90.80 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization 40,364

Total Annual Direct Operating Costs 390,244

Indirect Operating Costs

Overhead 60% of total labor and material costs 30,036

Administration (2% total capital costs) 2% of total capital costs (TCI) 128,178

Property tax (1% total capital costs) 1% of total capital costs (TCI) 64,089

Insurance (1% total capital costs) 1% of total capital costs (TCI) 64,089

Capital Recovery 0.0944 for a 20- year equipment life and a 7% interest rate 1,553,162 

Total Annual Indirect Operating Costs Sum indirect oper costs + capital recovery cost 1,839,553

Total Annual Cost (Annualized Capital Cost + Operating Cost) 2,229,797

See Summary page for notes and assumptions

SV017 Wet Scrubber
Ispat Inland Mining Company

BART Report - Attachment A: Emission Control Cost Analysis

Table A.5.d: SO2 Control - Wet Scrubber

Capital Recovery Factors

Primary Installation

Interest Rate 7.00%

Equipment Life 20 years

CRF 0.0944

Replacement Catalyst:

Equipment Life 20 years

CRF 0.0000

Rep part cost per unit 0 $/ft3

Amount Required 0 ft3

Packing Cost 0 Cost adjusted for freight & sales tax

Installation Labor 0 Assume Labor = 15% of catalyst cost (basis labor for baghouse replacement)

Total Installed Cost 0 Zero out if no replacement parts needed

Annualized Cost 0

Replacement Parts & Equipment:

Equipment Life 3

CRF 0.3811

Rep part cost per unit 0.00 $ each

Amount Required 0 Number

Total Rep Parts Cost 0 Cost adjusted for freight & sales tax

Installation 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 needed

Annualized Cost 0

Electrical Use

Flow acfm ∆ P in H2O Efficiency Hp kW

Blower, Scrubber 205,478 8.55 0.7 - 293.6 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 7,808 gpm 1 60 0.7 - 125.8 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

H2O WW Disch 193 gpm 1 60 0.7 - 3.1 EPA Cost Cont Manual 6th ed Section 5.2 Chapter 1 Eq 1.49

Other 

Total 422.6

Reagent Use & Other Operating Costs

Caustic Use 125.00 lb/hr SO2 2.50 lb NaOH/lb SO2 312.50 lb/hr Caustic

Lime Use 125.00 lb/hr SO2 0.96 lb Lime/lb SO2 120.31 lb/hr lime, lime addition at 1.1 times the stoichiometric ratio 

Liquid/Gas ratio 38.0 * L/G = Gal/1,000 acf

Circulating Water Rate2

7,808 gpm

Water Makeup Rate/WW Disch3 = 2.0% of circulating water rate + evap. loss = 193 gpm

Evaporation Loss4 = 36.64 gpm

Operating Cost Calculations Annual hours of operation: 7,946

Utilization Rate: 93%

Unit Unit of Use Unit of Annual Annual Comments

Item Cost $ Measure Rate Measure Use* Cost

Operating Labor

Op Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Supervisor 15% of Op. NA 2,384 15% of Operator Costs

Maintenance

Maint Labor 32.00 $/Hr 0.5 hr/8 hr shift 497 15,892 $/Hr, 0.5 hr/8 hr shift, 7946 hr/yr

Maint Mtls 100 % of Maintenance Labor NA 15,892 100% of Maintenance Labor

Utilities, Supplies, Replacements & Waste Management

Electricity 0.051 $/kwh 422.6 kW-hr 3,122,678 159,257 $/kwh, 423 kW-hr, 7946 hr/yr, 93% utilization

Water 0.28 $/kgal 192.8 gpm 85,486 23,667 $/kgal, 193 gpm, 7946 hr/yr, 93% utilization

WW Treat Neutralization 1.69 $/kgal 156.2 gpm 69,241 116,897 $/kgal, 156 gpm, 7946 hr/yr, 93% utilization

Lime 90.8 $/ton 120.3 lb/hr 445 40,364 $/ton, 120 lb/hr, 7946 hr/yr, 93% utilization

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

See Summary page for notes and assumptions

SV017 Wet Scrubber