United Taconite Indurating Line #1

Given/Assumed

Flow rate (acfm) 399,586 adjusted from 285,110 dscfm @ 68 F UTac 10/25/07 BART update

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

Uncontrolled SO2 emissions (TPY) 1,293 EPA

SO2 molar weight 64

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

Freight $ 1,074,758 EPA

Sales taxes 6.5% UTac 10/25/07

Retrofit factor 1.0 assumed

SO2 Control efficiency 95% PETC report

Operating Hours per Year 6,599 UTac 10/25/07

Operating Hours per Shift 8 assumed

Operating Shifts per Year 825 calculated

Utilization 93% UTac 10/25/07

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

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

Lime molar weight 56

Chemical usage molar ratio 1.4 PETC report

Chemical cost ($/ton) $ 125.00 EPA

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

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

CaSO4 molar weight 172 dihydrate

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

Gas Cleanaing System Electricity Cost $ 87,821 calculated from EPA cost info of $ 200,000 /yr for 910,000 acfm at USS

ID Fan Power $ 493,994 calculated from EPA cost info of $ 1,125,000 /yr for 910,000 acfm at USS USS 7/19/12

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

Interest Rate (%) 7.00% UTac 10/25/07
United Taconite Indurating Line #1

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

Cost Item Factor Cost

Direct Costs

Purchased equipment costs

Absorber + auxiliary equipment, EC A $7,018,417 six-tenths power law

Instrumentation 0.10 A $701,842

Sales taxes 0.065 A $456,197

Freight A $1,074,758

Purchased equipment cost, PEC B= 1.18 A $9,251,214

Direct installation costs

Foundations & supports 0.12 B $1,110,146

Handling & erection 0.40 B $3,700,485

Electrical 0.01 B $92,512

Piping 0.30 B $2,775,364

Insulation 0.01 B $92,512

Painting 0.01 B $92,512

Direct installation costs x 1 x 0.85 B $7,863,531

Site preparation As required, SP

Buildings As required, Bldg.

Total Direct Costs, DC 1.85 B+SP+Bldg $17,114,745

Indirect Costs (installation)

Engineering 0.10 B $925,121

Construction and field expenses 0.10 B $925,121

Contractor fees 0.10 B $925,121

Start-up 0.01 B $92,512

Performance test 0.01 B $92,512

Contingencies 0.03 B $277,536

Total Indirect Costs, IC 0.35 B $3,237,925

Total Capital Investment = DC + IC 2.20 B+SP+Bldg $20,352,670
United Taconite Indurating Line #1

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

Cost Item Cost

Direct Annual Costs, DC

Operating labor

Operator 0.5 hr/shift $ 18,688

Supervisor 15% of operator $ 2,803

Operating materials

Solvent 2.9 gal/kacfm * 399,586 acfm = 1,139 gpm = $ 419,341

Chemicals 1.4 lb-mole CaO/lb-mole SO2 * 40,406 lb-moles SO2/yr = 55,446 lb-mole CaO/yr

 55,446 lb-mole CaO/yr * 56 lb/lb-mole = 3,104,996 lb CaO/yr

 3,104,996 lb CaO/yr/ 2,000 lb/ton * $ 125.00 / ton = $ 194,062

Waste Disposal 1,228 ton SO2 removed/yr = 38,386 mole SO2 removed/yr = 38,386 mole CaSO4-2H2O produced/yr =

 38,386 mole CaSO4-2H2O produced/yr * 172 lb/lb-mole = 3,301 tpy CaSO4-2H2O

 3,301 tpy CaSO4-2H2O * $ 33.00 /ton = $ 108,939

27% of CaO is wasted = 421 tpy * $ 33.00 /ton = $ 13,897

Maintenance

Labor 0.5 hr/shift $ 19,475

Material 100.00% of maintenance $ 19,475

Electricity Gas Cleanaing System Electricity Cost $ 87,821

ID Fan Power $ 493,994

Total DC $ 1,378,496

Indirect Annual Costs, IC "Ann Cost" tab

Overhead 60% of total labor and material costs $ 36,265

Administrative charges 2% of Total Capital Investment $ 407,053

Property tax exempt in MN $ -

Insurance 1% of Total Capital Investment $ 203,527

Capital recovery 0.0944 * Total Capital Investment $ 1,921,148

Total IC $ 2,567,993

Total Annual Cost DC + IC $ 3,946,489
United Taconite Indurating Line #1 SO2

Uncontrolled emissions (TPY) 1,293.0

Control efficiency (%) 95%

Emission reduction (TPY) 1,228

Controlled emissions (TPY) 65

Total annualized cost ($/yr) $3,946,489

Cost/ton removed ($/T) $3,213

95%

Chemical usage molar ratio

Solvent usage (gal/kacfm))