Direct Costs Holcim MDNR

Purchased Equipment Costs

New Coal Mill ID Fan and associated equipment $2,000,000 $1,000,000 Holcim Estimate; Historical Fan Cost

Instrumentation (10% of EC) $200,000 $100,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012

Sales Tax (5% of EC) $100,000 $50,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012

Freight (5% of EC) $100,000 $50,000 0.05 A

Subtotal, Purchased Equipment Cost (PEC) $2,400,000 $1,200,000 B

Direct Installation Costs

Foundation (6% of PEC) $144,000 $72,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012

Supports (6% of PEC) $144,000 $72,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012

Handling and Erection (40% of PEC) $960,000 $480,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012

Electrical (1% of PEC) $24,000 $12,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012

Piping (30% of PEC) $720,000 $360,000 0.30 B CCM

Insulation for Ductwork (1% of PEC) $24,000 $12,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012

Painting (1% of PEC) $24,000 $12,000 0.01 B CCM

Subtotal, Direct Installation Cost $2,040,000 $1,020,000

Site Preparation N/A N/A

Buildings N/A N/A

Total Direct Cost $4,440,000 $2,220,000

Indirect Costs

Engineering (10% of PEC) $240,000 $120,000 CCM

Construction and Field Expense (10% of PEC) $240,000 $120,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012

Contractor Fees (10% of PEC) $240,000 $120,000 CCM

Start-up (1% of PEC) $24,000 $12,000 CCM

Performance Test (1% of PEC) $24,000 $12,000 CCM

Contingencies (3% of PEC) $72,000 $36,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012

Total Indirect Cost $840,000 $420,000

Total Capital Investment (TCI) $5,280,000 $2,640,000
Direct Annual Costs

Scaled up from 2007 annual average clinker production to 3-yr average clinker production

Increased Fuel Cost (calculated by scaling 2007 annual average fuel usage by the ratio of 3-year average clinker 2007 (1,035,283 tons clinker) Scaled to (3 yr average tons clinker)

production (1,169,667 tons) to 2007 actual clinker production (1,035,283 tons)

####### Reduction in coke usage (metric ton/yr) 181,802 Holcim Engineering Estimate 160,915 181,802

Heat Value (Gj / Mt) 32.510 Holcim Plant Data

Heat (Gj / yr) 5,910,397 Holcim Engineering Estimate

Cost ($/Gj) $1.74 Holcim Plant Data

Subtotal, reduction in coke cost -$10,284,091 -$10,284,091

####### Reduction in coal usage (metric ton/yr) 10,656 Holcim Engineering Estimate 9,432 10,656

Heat Value (Gj / Mt) 22.177 Holcim Plant Data

Heat (Gj / yr) 236,325 Holcim Engineering Estimate

Cost ($/Gj) $2.41 Holcim Plant Data

Subtotal, reduction in coal cost -$569,543 -$569,543

####### Increase in low sulfur coal usage - Amount Required (metric ton/yr) 198,736 Holcim Engineering Estimate 208,546 235,616

Heat Value (Gj / Mt) 25.818 Holcim Engineering Estimate

Heat (Gj / yr) 5,131,033 Holcim Engineering Estimate

Cost ($/Mt) or Cost ($/Gj) $72.76 $2.82 Holcim Marketing and Engineering Estimate

Subtotal, increase in Low Sulfur Coal cost $14,459,211 $14,460,031

Total Direct Annual Cost (increase) $3,605,577 $3,606,397
Indirect Annual Costs

Administrative (2% TCI) $105,600 $52,800 0.02 TCI

Property Tax (1% TCI) $52,800 $26,400 0.01 TCI

Insurance (1% TCI) $52,800 $26,400 0.01 TCI

Capital Recovery (15 year life, 7 percent interest) $579,716 $289,858

Total Indirect Annual Cost $790,916 $395,458

Conclusion

Total Annualized Cost $4,396,493 $4,001,855

Pollutant 

Emission 

Rate 

Prior to 

Scrubber 

(tons 

SO2/yr) 11,675 11,675 11675.1667 Average SO2 Emissions of 3 latest full production years

Pollutant Removed (tons SO2/yr) - 23% 3,152 3,152 27% Removal

Cost Per Ton of Pollutant Removed $1,395 $1,270

Pollutant Emitted after Control 8,523 8,523 tons/year

Maximum Actual Historical Clinker Production (tons) 1,169,667 1,169,667

Incremental Cost/ton clinker $ 4 $3.42

2007 baseline - Holcim Provided in BART Writeup

65% Sulfur Input from Fuel

35% Sulfur Input from Raw Materials

30-35% Sulfur Emitted from Stack

From permit

1169667 Average Production of 3 latest full production years 1611840 Maximum Clinker Production @ 184 TPH

13298 TPY SO2 @ 16.5 lb/ton

 6,432,296 Gj/yr Heat Input from Fuel at Maximum Clinker Production

Maximum Annual Clinker Scaled from 2007 Fuel Use (TPY) (TPY) Raw Material
Cost per Gj S% BTU/lb GJ/Mton $/Mton fuel $/ton fuel Ex/Repl Use GJ/yr Fuel S Baseline Fuel SO2 Unc Fuel SO2 SO2 Overall SO2

(MT) Input (TPY) (TPY) Cont (TPY) (TPY)

Existing Coal $2.41 3.45% 9534.49 22.177 $53.45 $48.49 10,656.31 236,325 9,706.55 19,394.93 7,757.97 11,682.67

Pet Coke $1.74 5.72% 13976.93 32.51 $56.57 $51.32 181,802 5,910,397 10,978.11 21,935.67 8,774.27 12,698.97

3%S Coal $2.81815 3.00% 11100 25.81833508 $72.76 $66.01 198,736 5,131,033 7,250.06 14,486.55 5,794.62 9,719.32 0.7309

Tires 1.83% 13432.5 31.24367441 24,705.02 771,875.48 498.35 995.77 597.46

PRB Coal $5.67 0.70% 11300.00 26.28353031 $149.03 $135.20 244,727 6,432,296 1,661.74 3,320.37 1,328.15 5,252.85 0.3950

Other 529,387.51

0.9478171 MMBTU/Gj 12,475.12 24,926.90 9,970.76 3,327.24

429.927 BTU/lb per Gj/MetricTon 5,660,420.15 [Max Heat Input] - 12% TDF

2.2046 lb/kg Baseline is All Fuel as Pet Coke

1000 kg/Metric Ton 60% Fuel SO2 Control (Coal/Coke)

40% Fuel SO2 Control (Tires)

Tires

26.865 MMBTU/short ton

13432.5 BTU/lb

1.83 %S TDF

Modeled 4889.375 lb SO2/hour 117345 lb SO2/day 12/2/2004 4069.382956 TPD Clinker 28.83606711 lb/ton clinker

3049.375 lb NOx/hour 73185 lb NOx/day 11/24/2007 3762.70105 TPD Clinker 19.45012347 lb/ton clinker

30-day Clinker 

MAX 30-day average 80529.88431 lb SO2/day 12/10/05 1/8/06 20.95549232 lb/ton clinker 104587.71 Metric Tons

52858.73258 lb NOx/day 10/29/07- 11/27/07 13.78776969 lb/ton clinker 104338.4 Metric Tons

2007 Ann Avg lb/ton SO2 17.31083175

2007 Ann Avg lb/ton Nox 10.05306488 Percentile SO2 UNC (lb/day) CON(lb/day) lb/30days Limits

Max 2415897 80529.9 58786.827 1763604.8 27% Control for SO2 from 30-day Maximum 

2006 Ann Avg lb/ton SO2 13.64712331 0.95 2239006 74633.53333 54482.47933

2006 Ann Avg lb/ton Nox 8.583653198 0.9 2043221 68107.36667 49718.37767

0.8 1824675 60822.5 44400.425

2005 Ann Avg lb/ton SO2 11.16488906 0.7 1666853 55561.76667 40560.08967

2005 Ann Avg lb/ton Nox 5.768385811 0.6 1509100 50303.33333 36721.43333

0.5 1344408 44813.6 32713.928

Percentile NOX UNC (lb/day) CON(lb/day) lb/30days

Max 1585762 52858.73333 42286.98667 1268609.6 20% Control for NOX from 30-day maximum

0.95 1251125 41704.16667 33363.33333

0.9 1089332 36311.06667 29048.85333

0.8 921089 30702.96667 24562.37333

0.7 855838 28527.93333 22822.34667

0.6 730787 24359.56667 19487.65333

0.5 629996 20999.86667 16799.89333
Direct Costs MDNR Alt

Purchased Equipment Costs

Wet Scrubber Unit including Limestone Prep System $10,524,352 $7,670,653

Based on Ash Grove Cement Company - Moapa Plant Cost 

Estimate from Enviro-chem quote (65% of installed price 

plus 25% possible increase). Scaled using ratio of airflows to 

the 0.6 power

Instrumentation (15% of EC) $1,578,653 $1,150,598

Holcim Regional Capital Expense Manager - 

Engineering Estimate for 2012

Sales Tax (5% of EC) $526,218 $383,533

Holcim Regional Capital Expense Manager - 

Engineering Estimate for 2012 

Freight (5% of EC) $526,218 $383,533 CCM

Subtotal, Purchased Equipment Cost (PEC) $13,155,441 $9,588,317 Moapa Airflow 311,360 acfm 0.41 Bypass Fraction

Clarksville Airflow - Permit Limit 828,969 acfm 489,092

acfm (scaled for 

bypass)

Direct Installation Costs

Foundation (10% of PEC) $1,315,544 $958,832

Holcim Regional Capital Expense Manager - 

Engineering Estimate for 2012

Supports (10% of PEC) $1,315,544 $958,832

Holcim Regional Capital Expense Manager - 

Engineering Estimate for 2012

Handling and Erection (50% of PEC) $6,577,720 $4,794,158

Holcim Regional Capital Expense Manager - 

Engineering Estimate for 2012

Electrical (10% of PEC) $1,315,544 $958,832

Holcim Regional Capital Expense Manager - 

Engineering Estimate for 2012

Piping (30% of PEC) $3,946,632 $2,876,495 CCM

Extending gas line 1/2 mile to plant $500,000 $500,000 Engineering Estimate

Insulation for Ductwork (5% of PEC) $657,772 $479,416

Holcim Regional Capital Expense Manager - 

Engineering Estimate for 2012

Painting (1% of PEC) $131,554 $95,883 CCM

Subtotal, Direct Installation Cost $15,760,311 $11,622,447

Buildings N/A N/A

Total Direct Cost $28,915,752 $21,210,764
Indirect Costs

Engineering (10% of PEC) $1,315,544 $958,832 CCM

Construction and Field Expense (15% of PEC) $1,973,316 $1,438,248

Holcim Regional Capital Expense Manager - 

Engineering Estimate for 2012

Contractor Fees (10% of PEC) $1,315,544 $958,832 CCM

Start-up (1% of PEC) $131,554 $95,883 CCM

Performance Test (1% of PEC) $131,554 $95,883 CCM

Contingencies (5% of PEC) $657,772 $479,416

Holcim Regional Capital Expense Manager - 

Engineering Estimate for 2012

Total Indirect Cost $5,525,285 $4,027,093

Total Capital Investment (TCI) $34,441,037 $25,237,857

Direct Annual Costs

Hours per Year (365 days per year, 24 hours per day), 90% Uptime 7,884 7,884

Operating Labor

Operator (8 men/yr, 2,080 hrs/yr, $64.50/hr) 4 men/yr $1,073,280 $1,073,280

Estimate - 8 man years, 2,080 hrs/yr *64.50. 

Holcim Durkee

Supervisor (15% of operator) $160,992 $160,992 CCM

Subtotal, Operating Labor $1,234,272 $1,234,272

Maintenance

Labor (6 men/yr, 2,080 hrs/yr, $64.50/hr) 3 men/yr $804,960 $804,960

Estimate - 6 man years, 2,080 hrs/yr *64.50. 

Holcim Durkee

Material (5% of Total Direct Cost) $ 1,445,788 $1,060,538 Holcim Lee Island PSD

Subtotal, Maintenance $2,250,748 $1,865,498

Utilities

Electricity

Pump (kW) 2,342 1,707

Scaled using Moapa data and ratio of airflows to 

the 0.6 power

Cost ($/kW-hr) $0.0410 $0.041 Clarksville Budget - 2011

Subtotal, Electricity $757,054 $551,617

Limestone for slurry 
Amount Required (ton/yr) 15,972 9,423

(1.6 tons CaCO3/ ton SO2 Removed. From NLA 

evaluation = 1.03/1.0 molar ratio.

Cost ($/ton) $3.00 $3

Subtotal, Lime $47,915 $28,270

Water

Amount Required (gpm) 122.0 89

Scaled using Moapa data and ratio of airflows to 

the 0.6 power

Cost ($/1000 gallons) $1.00 $1 Plant Estimate

Subtotal, Water $57,716 $42,054

Sludge Disposal

Amount Generated (tpy) 66,288 39,110

Scale to synthetic gypsum CaSO4-2H20 MW 

(170) / SO2 MW( 64) / 80 percent purity lime / 

50 percent moisture

Disposal Fee ($/ton) $36.00 $36 Bid from Area Disposal Services, Inc.

Monthly Rent for Trailer @ $120/month $1,440 $1,440 Bid from Area Disposal Services, Inc.

Cost for Box Transportation @ $220/load (assume 17 tons/trailer) $857,851 $506,132 Bid from Area Disposal Services, Inc.

Subtotal, Sludge $3,245,677 $1,915,540

Subtotal, Utilities $4,108,361 $2,537,480

Natural Gas Reheat (assuming a 210 deg F temp drop and reheat)

Gas Required (MMCF/yr) 1,074,722 634,135 See Calculations Below

Cost ($/MMBTU) $10.06 $10.06 Missouri Energy Bulletin - April 10 2008

Subtotal, Natural Gas $10,811,708 $6,379,395

Total Direct Annual Costs $18,405,089 $12,016,646

Indirect Annual Costs

Overhead (60% of sum of operating, supervisor, maintenance labor & materials) $2,091,012 $1,859,862

Administrative (2% TCI) $688,821 $504,757 0.02 TCI

Property Tax (1% TCI) $344,410 $252,379 0.01 TCI

Insurance (1% TCI) $344,410 $252,379 0.01 TCI

Capital Recovery (15 year life, 7 percent interest) $3,781,441 $2,770,981

Total Indirect Annual Cost $7,250,094 $5,640,357
Conclusion

Total Annualized Cost $25,655,183 $17,657,003

Pollutant Emission Rate Prior to Scrubber (tons SO2/yr) 11,675 11,675 11675.16667

Ave SO2 

Emissions of 3 

latest full prod 

yrs

Pollutant Removed (tons SO2/yr) - 90% Removal, 95% Uptime 9,982 5,890

90% removal, 95% uptime

MDNR bypass 

with reheat 

and 95% 

uptime 

(designed to 

get 50% SO2 

Control from 

Base)

Pollutant Generated - NOx tons/yr 72

Net Pollutant Removed - tons/yr 9,982 5,890

Cost Per Ton of Pollutant Removed $2,570 $2,998

Pollutant Emitted after Control 1,693 5,786 tons/year

Maximum Actual Historical Clinker Production (tons) 1,169,667 1,169,667 1169667

Average 

Production of 

3 latest full 

production 

years

Incremental Cost/ton clinker $ 22 $15.10
Standard temperature 68 68 F

Density of air 0.0026 0.0026 lb-mole/scf

Specific heat of exhaust gas 7.542 7.542 Btu/lb-mole F

Specific heat of steam 14.7 psia 220 - 600 deg F 8.46 8.46 Btu/lb-mole F

Exhaust gas percent water 35% 0.35 Percent

Specific heat of exhaust gas 7.86 7.8633 Btu/lb-mole F

Exhaust gas temperature after WLS 170 256

Deg. F Based on Holcim Durkee Scrubber 

Design. NW Email

Current ESP outlet gas temp 380 380 Deg F 

Heat input 3.60 1.868 Btu/acf

Exhaust gas flow rate - 367 828969 828,969 acfm

Exhaust gas flow rate - reduced temperature 631,404 717751.17

Unit natural gas cost $10.06 $10.06 Missouri Energy Bulletin - April 10 2008

Natural gas requirement - Based on 90% Plant Uptime, 95% Scrubber 

Uptime 1,074,722 634134.703 MMBTU/yr

Natural Gas Cost $10,811,708 $6,379,395.11 /yr

Additional NOx Generated 140 140

lbs/MMscf. AP-42 Section 1.4-1. 

*** LNB Control Included

Conversion 1050 1050 MMBTU / MMSCF. Approximate Value

Natural gas requirement in MMscf/yr 1023.5 603.94 MMSCF/yr

NOx generated - tons/yr 72 42.28 tons/year