p. 1 

# OAR Box 1828 Prepped by Ollie Stewart



### Document

Number: 

# 315 ) IV-B-1 9 Docket Number: 

# A-83-2 7

Printed 11/12/2008 11:12:59 AM Sheet 315of 325P. 2



## . r-l 

# A-83-2 7

CORPORATIO N IV-B-1 9 MEMORANDU

M DATE : Apri l 29 , 198 7 TO : FredPorter , EPA/SD B FROM : Jef f Shumake r an dTo m Waddell , Radia nCorporatio n SUBJECT : Us e o f a Generi c Cos t Algorith m t o Represen t th e Cost s o f Industria l Flu e Ga s Desulfurizatio n(FGD ) System s 1. 0 INTRODUCTION Ne w sourc e performanc e standard s wer e propose drecentl y whic hrequir e 9 0 percen t SO - reductio nfo r al l new coal - an

doil-fire dindustrial commercia l -institutiona l boiler s o f greate r tha n10 0 millio nBt u(MMBtu ) pe r hou r hea t inpu t (5 1 Federa l Registe r 22385 , Jun e 19 , 1986) . Cos t analyse s performe dinsuppor t o f th e propose dstandard s use dth e sodiu m scrubbin g cos t algorith

m a s a "generic " cos t algorith m t o represen t th e cost s o f industria l FGDsystem s ingeneral . Durin g th e publi c review period , comment s wer e receive dquestionin g th e us e o f th e sodiu

m scrubbin g cos t algorith m a s a generi c cos t algorithm . Consequently , th e cost s predicte db y cos t algorithm s fo r severa l sulfu r dioxid e contro l option s wer e reviewe dt o determin e i f a cos t algorith m othe r tha nth e on e fo r sodiu m scrubbin g woul dbette r serv e a s a "generic " FGDcos t algorithm . Cos t algorithm s fo r sodiu m scrubbing , dua l alkali , Um e spray drying , an

dfluidize dbe dcombustio n(FBC ) wer e availabl e fo r thi s assessment . Th e cos t algorithm s fo r sodiu m scrubbing , dua l alkali , an dUm e 2 spray dryin g ar e outline dan ddiscusse dinth e 198 4 S0 gCos t Repor t an d Radian' s recen t memorandu m examinin g th e impac t o f new fue l price s on 3 annualize dboile r costs . Th e cos t algorith m fo r FB C unit s i s outline dan d 4 discusse dinth e 198 4 FB C report . Fue l price s use dinthi s analysi s ar e 3 show ninTabl e 1 ; thes e price s reflec t th e revise denergy scenarios . Th e

Progres s Center/320 0 E . Chape l Hil l Rd./Nelso n Hwy./P.O . Bo x13000/Researc h Triangl e Park . N.C . 27709/(919)541-9100P. 3

analysi s i s base do

nmode l 15 0 MMBtu/h r hea t inpu t capacit y boiler s firin g eithe r coa l (fo r Regio nV an dVIII ) o r oi l (Regio nV only) . 2. 0 DISCUSSIO N Annualize dcost s wer e calculate dfo r bot hcoal-fire dan doil-fire d stea m generatin g units . Previou s analyse s hav e generall y show ntha t in respons e t o standard s requirin g a percen t reductio ni nSO - emissions , stea m generatin g unit s findi t mor e economica l t o fir e high-sulfu r fuel s tha n low-sulfu r fuels . Consequently , th e annualize dcost s fo r stea m generatin g unit s firing high-sulfu r coa l an dhigh-sulfu r oi l wer e examined . Fo r coal-fire dstea

m generatin g unit s locate dinRegio nVIII , however , high-sulfu r coa l i s generall y no t availabl e an

dcost s wer e examine dfo r stea m generatin g unit s firin g medium-sulfu r coal . Th e result s ar e summarize di nTabl e 2 an dFigure s 1 an

d2 . A s shown , ther e i s littl e differenc e inth e tota l annualize dcost s o f th e stea m generatin g uni t an

dFG Dsystem

regardles s o f whic hcos t algorith m i s use dt o estimat e th e annualize dcost s o f th e FG Dsystem . I nfact , th e differenc e i n cost s i s les s tha n7 percen t inal l case s fo r coal-fire dstea m generatin g unit s an dles s tha n9 percen t fo r oil-fire dstea m generatin g units . Fro m thi s poin t o f view , therefore , i t make s littl e differenc e whic hcos t algorith m i s use dt o represen t th e cost s o f FG Dsystem s fo r industria l stea m generatin g units . Close r examinatio no f thes e two figures , however , indicate s tha t th e cos t algorith

m fo r sodiu

m scrubbin g generall y

yield s th e lowes t costs , wherea s th e cos t algorith m fo r dua l alkal i scrubbin g yield s th e highes t costs . Also , th e variatio nincost s i s see nt o b e considerabl y highe r i f on e focuse s onth e cost s o f th e FG Dsystem alone . Fo r example , th e annualize dcost s o f th e FGDsystem fo r a coal-fire dstea m generatin g uni t canvar y b y abou t 3 0 percent , depending o nwhethe r th e cos t algorith m fo r sodiu m scrubbin g o r tha t fo r dua l alkal i scrubbin g i s used . I t appears , therefore , tha t th e us e o f th e cos t algorith m fo r sodiu

m scrubbin g a s a "generic " cos t algorith m fo r industria l FG Dsystem s i sP. 4

probabl y no t th e mos t appropriat e choice . Base donthi s assessment , a bette r choic e woul db e th e cos t algorith m fo r lime spray

drying . Th e cost s generate dusin g thi s cos t algorith m see m t o fal l abou t midwa y betwee nth e cost s generate db

y usin g th e cos t algorith m fo r sodiu

m scrubbin g an

dtha t fo r dua l alkal i scrubbing . Thi s assessment , however , doe s no t examin e th e ful l rang e o f stea m generatin g uni t sizes , capacit y factors , an

dfuels . Fo r othe r combination s o f thes e factors , th e relativ e cost s generate db y thes e cos t algorithm s ma y change , an

dth e cost s generate db y usin g th e cos t algorith m fo r lime spray dryin g woul dprobabl y no t fal l midwa y

betwee nth e cost s generate db y usin g th e cos t algorithm s fo r sodiu m scrubbin g an

ddua l alkal i scrubbing . Probabl y th e bes t approac ht o estimat e th e cost s associate dwit ha "generic " industria l FG Dsystem woul db e t o estimat e th e cost s fo r eac h stea m generatin g uni t usin g eac ho f th e cos t algorithm s fo r eac hspecifi c case . Th e highes t an dlowes t cos t estimate s coul dthe nbe average dt o yiel d a cos t estimat e representin g th e cost s fo r a "generic " industria l FG D system .P. 5

REFEREMCE S 1 . U . S . Environmenta l Protectio nAgency , Summar y o f Regulator y

Analysi s fo r New Sourc e Performanc e Standards : Industrial-Commercial Institutiona l Steam

Generatin g Unit s o f Greate r tha n10 0 millio nBtu/h r Hea t Input . EPA-450/3-85-005 . Jun e 1986 . 2 . Laughlin , J . H . e t al . (Radia nCorporation) . Industria l Boile r SO Cos t Report . Prepare dfo r th e U . S . Environmenta l Protectio nAgency , Researc hTriangl e Park , NC . Novembe r 1984 . 3 . Memorandu

m from'Aul , E . an

dStackhouse , B. , Radia nCorporation , t o Byrne , D. , EPA/SDB , Apri l 15 , 1987 . Impact s o f New Fue l Price s on Cost s an dCos t Effectivenes s Value s fo r Industria l Coa l an dOil-Fire d Mode l Steam

Generatin g Units . 4 . Aul , E . F. , e t al . (Radia nCorporation) . Fluidize dBedCombustion : Effectivenes s a s a

nSO - Contro l Technolog y fo r Industria l Boilers . Prepare dfo r th e U . S . Environmenta l Protectio nAgency , Researc h Triangl e Park , NC . Septembe r 1984 .< • ,
TABLE 1 . FUE

L PRICE S AN

DCHARACTERISTICS 3

Regio n 

### V

VII I Fue l Type

H-B1t . Coa l Residua l 01 1 Natura l Ga s D-Subb1t . Coa l Natura l Ga s 

### (l

b Fue l Sulfu

r Nomina l S0 2 /MMBtu ) 

### 6. 0 3. 0

- 

### 2. 5

- * Content



### (l b Actua l S0 2 /MMBtu ) 

### 5. 5 3. 0

- 1.4 4

- Heatin g Valu e (Btu/lb ) 11,66 0 18,50 0

- 8,62 0

- Ash

Conten t (wt . %) 12. 0 

### 0. 1

- 

### 6. 9

- Fue l

Pric e ($/MMBtu ) 2.2 4 2.90/4.15 b 3.77/4.82 b ' c 1.3 3 3.14/3.72 b ' c Source : Referenc e 3 . 'Lo w oi l pric e scenario/hig hoi l pric e scenario . 'Non-carriage , rigi

dprice .TABL E 2 . ANNUALIZE DCOST S FORBOILER S WIT HSQ 2 CONTRO L (a,b )

0 1 Fue l Fue l Sulfu rConten t Boile rCost s Sodiu a Scrubbe rDua l Alkal i Spra yDrye rFB C Typ e (lb s S02/HHBtu ) Fue l Non-fue l FG D Tota l F6 D Tota l FS

D Tota l Non-fue l Tota l Regio n V : Coa l 6. 0 1,77 0 3,B4 0 B7 0 6,48 0 1,14 0 6,75 0 97 0 6,59 0 4,e3 0 6,60 0 Oi l 3. 0 2,95 0 1,17 0 58 0 4,70 0 84 0 4,96 0 - , (hig hprice ) Oi l 3. 0 2,06 0 1,16 0 59 0 3,81 0 85 0 4,07 0 - (lo w price ) RegionVIII : Coa l 2. 5 1,05 0 4,07 0 49 0 5,61 0 B3 0 5,95 0 65 0 5,77 0 4.51 0 5,56 0
la ! Al l cost s inJun e 198 5 *1000/yr . (b ) 15 0 HMBtu/h r boile r operatin ga t 6 0 percen t of capacit y for oi l firingan

d5 5 percen t of capacit y for oi l firing .

# FIGUR E 1 . COAL-FIRE D MODE L BOILER S

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# FIGUR E 2 . OiL-FiRE D MODE L BOILE R

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