Domtar Ashdown Mill- Power Boiler No. 2

LNB Capital and O&M Cost Estimate

Summary of EPA's revisions to Domtar's LNB cost estimate: Domtar's estimate is based on 2006 dollars. In this spreadsheet we have revised the cost 

estimate by escalating to 2013 dollars using the Chemical Engineering Plant Cost Index (CEPCI).

Domtar's Cost Estimates EPA Revised Cost Estimates

Capital Costs

Direct Capital (DC) Costs $2,700,000 $2,700,000

 Purchased Equipment Costs $1,800,000 $1,800,000

 Direct Installation Costs $900,000 $900,000

Indirect Capital (IC) Costs $2,700,000 $2,700,000

Total Capital Investment (TCI) (2006 Dollars) TCI= DC + IC $5,400,000 $5,400,000

Total Capital Investment (TCI) (2013 Dollars) N/A $6,131,745

CEPCI 2006 N/A 499.6

CEPCI 2013 N/A 567.3

Capital Recovery Factor (CRF) 

CRF= [I x (1+i)^a]/ [(1+i)^a-1], 

where I=interest rate, a=equipment 

life, 30-yr life, 7% interest 0.129504575 0.080586403

Operating Costs

CEPCI 2006 N/A 499.6

CEPCI 2013 N/A 567.3

Direct Operating Costs (DOC) (2013 Dolllars) N/A $194,557

Direct Operating Costs (DOC) (2006 Dolllars) $171,339 $171,339

 Operating Labor $9,022 $9,022

 Operating Labor Supervision 15% of Operator Pay $1,353 $1,353

 Maintenance Labor $9,922 $9,922

 Maintenance Materials $9,922 $9,922

 Utilities- Electricity $141,120 $141,120

 Utilities- Water $0 $0

 Waste Treatment and Disposal $0 $0

CEPCI 2006 N/A 499.6

CEPCI 2013 N/A 567.3

Indirect Operating Costs (IOC) (2013 Dollars) N/A $265,858

Indirect Operating Costs (IOC) (2006 Dollars) $234,131 $234,131

 Overhead 60% of Labor and Material $18,131 $18,131

 Property Tax 1% of TCI $54,000 $54,000

 Insurance 1% of TCI $54,000 $54,000

 Administration 2% of TCI $108,000 $108,000

Annual Costs

Direct Operating Costs (DOC) $171,339 $171,339

Indirect Operating Costs (IOC) $234,131 $234,131

Annualized Capital Cost (Capital Recovery) CFR*TCI $699,324.71 $494,135.30

Total Annual Costs (TAC) TAC= DOC + IOC $1,104,795 $899,605

Baseline Emissions (Uncontrolled NOx Emissions) 2514 1,536

Control Efficiency 30% 30%

Anuual Emissions Reductions (NOx tpy) 754 461

Average Cost-effectiveness of Controls ($/ton removed) $1,465 $1,951

1: Based on Domtar's cost analysis, the Direct Inatallation Costs consist of foundation and support, handling and erection, electrical, piping, insulation, and painting. 
 Explanation of EPA Cost Estimate Revisions

TCI escalated from 2006 to 2013 dollars

Domtar assumed a 10-yr equipment life and 5% interest, but a 30-yr equipment life can be expected for LNB with 7% interest; We have revised the CRF to reflect this

DOC escalated from 2006 to 2013 dollars

 IOC esclated from 2006 to 2013 dollars

Annualized Capital Cost revised to reflect revision to the Total Capital Investment and to the Capital Recovery Factor. 

Total Annual Cost revised to reflect revision to the Annualized Capital Cost. 

In the 2006 cost analysis, Domtar used the maximum 24-hour emission rate to calculate the baseline emissions to be used in the cost-effectiveness calculations. We are using th

Revision to the Annual Emissions Reductions reflects the new baseline emissions. 
the CRF to reflect this

calculations. We are using the actual emissions from 2001-2003 as our baseline emissions.