Attachment Page 1/2

Wenatchee Potline 5 Wet LSFO Scrubber

Zach Hedgpeth, PE

Updated 8/28/2013

% multiplier Cost Note

Capital Costs

Purchased Equipment Costs

capital costs $ 38,728,612

CEMS $ 40,000 one SO2 CEM system

instrumentation 5% $ 1,938,431 scaled back from 10% CC Manual since basic inst is included in proposal

sales tax 8.20% $ 3,179,026 State 6.5% plus local 1.7%

freight 5% $ 1,938,431 CC Manual

PEC $ 45,824,499

Installation Costs

foundations 12% $ 5,498,940

erection 80% $ 36,659,600 Cost manual default is 40%.

electical 1% $ 458,245

piping 30% $ 13,747,350

inslulation 1% $ 458,245

field painting 1% $ 458,245

TIC $ 57,280,624

Indirect Costs

engineering 5% $ 2,291,225 Cost manual 10%, but bid includes some engineering expenses

construction 10% $ 4,582,450

contractor fees 5% $ 2,291,225

start-up 1% $ 458,245

performance test 1% $ 458,245

contingencies 3% $ 1,374,735

aquatic/environmental studies $ 235,000 Assumed similar to Intalco

PUD water connection fee $ 300,000 Assumed similar to Intalco

Total Indirect Cost $ 11,991,125

Total Capital Investment Cost (TCIC) $ 115,096,249

Capital Recovery

Interest rate 7%

Equipment lifetime 30

Capital cost recovery factor 0.0806 Calculated via Equation 1.34 in the EPA CC Manual

Annual Capital cost $ 9,275,193

Annual Costs

Direct Annual Costs

Operating labor

Operator $ 37.00 $ 324,120

Supervisor 15% $ 48,618

Water

Cost $ 0.00070 $/gal Assumed same as Intalco.

Quantity 157,067 Gal/day Scaled from Intalco based on volumetric flowrate.

Annual cost $ 40,131

Limestone usage, tons/yr 4,803.00

Limestone cost/ton $ 33.00

Annual Limestone cost $ 158,499

Compressed air

Plant cost $ 0.24 $/1000 scfm

Quantity 47.12 scfm Scaled from Intalco based on volumetric flowrate.

Annual cost $ 5,944

Gypsum disposal

Generation rate

 9,149 ton/yr

Cost disposal $/ton nonhazardous solid waste, including transportation

Annual cost $ -

Maintenance Labor $ 45.00 $ 211,701

Materials $ 409,316

Elctricity

Required 2,324.59 KWh/hr Scaled from Intalco based on volumetric flowrate.

Cost $ 0.05 $/kWh Assumed same as Intalco.

Total Cost $ 1,071,114

Total Direct Annual costs $ 2,269,442

Indirect Annual Costs

Overhead 60% $ 596,253 CC Manual, section 2.5.5.7

General and Administrative 2% $ 2,301,925 CC Manual, section 2.5.5.7

Property Tax 1% $ 1,150,962 CC Manual, section 2.5.5.7

Insurance 1% $ 1,150,962 CC Manual, section 2.5.5.7

Total Indirect Annual Costs $ 5,200,103

Total Annual O&M Costs $ 7,469,544

Total Annual Costs $ 16,744,737

SOX Reduction 1,955

$/ton of SOX $ 8,566

Cost manual 10%, but assumes scrubber vendor will oversee scrubber 

installation and include in capital of equipment

EPA Region 10 - High

Vendor #1 dual-absorber capital cost, scaled to single absorber cost based on 

Vendor #2, 20% increase for inflation between 2006-2013

Assuming 95% reduction of SO2 PTE scaled proportionally from Intalco based on 

volumetric flowrate.

Scaled from Intalco based on volumetric flowrate.

one full time operator, 3 shifts/day

Scaled from Intalco based on volumetric flowrate.
Attachment Page 2/2

% multiplier Cost Note

Capital Costs

Purchased Equipment Costs

capital costs $ 38,728,612

CEMS $ 40,000 one SO2 CEM system

instrumentation 5% $ 1,938,431 scaled back from 10% CC Manual since basic inst is included in proposal

sales tax 8.20% $ 3,179,026 State 6.5% plus local 1.7%

freight 5% $ 1,938,431 CC Manual

PEC $ 45,824,499

Installation Costs

foundations 12% $ 5,498,940

erection 40% $ 18,329,800 Cost manual default is 40%.

electical 1% $ 458,245

piping 30% $ 13,747,350

inslulation 1% $ 458,245

field painting 1% $ 458,245

TIC $ 38,950,825

Indirect Costs

engineering 5% $ 2,291,225 Cost manual 10%, but bid includes some engineering expenses

construction 10% $ 4,582,450

contractor fees 5% $ 2,291,225

start-up 1% $ 458,245

performance test 1% $ 458,245

contingencies 3% $ 1,374,735

aquatic/environmental studies $ 235,000 Assumed similar to Intalco

PUD water connection fee $ 300,000 Assumed similar to Intalco

Total Indirect Cost $ 11,991,125

Total Capital Investment Cost (TCIC) $ 96,766,449

Capital Recovery

Interest rate 7%

Equipment lifetime 30

Capital cost recovery factor 0.0806 Calculated via Equation 1.34 in the EPA CC Manual

Annual Capital cost $ 7,798,060

Annual Costs

Direct Annual Costs

Operating labor

Operator $ 37.00 $ 324,120

Supervisor 15% $ 48,618

Water

Cost $ 0.00070 $/gal Assumed same as Intalco.

Quantity 157,067 Gal/day Scaled from Intalco based on volumetric flowrate.

Annual cost $ 40,131

Limestone usage, tons/yr 4,803.00

Limestone cost/ton $ 33.00

Annual Limestone cost $ 158,499

Compressed air

Plant cost $ 0.24 $/1000 scfm

Quantity 47.12 scfm Scaled from Intalco based on volumetric flowrate.

Annual cost $ 5,944

Gypsum disposal

Generation rate

 9,149 ton/yr

Cost disposal $/ton nonhazardous solid waste, including transportation

Annual cost $ -

Maintenance Labor $ 45.00 $ 211,701

Materials $ 409,316

Elctricity

Required 2,324.59 KWh/hr Scaled from Intalco based on volumetric flowrate.

Cost $ 0.05 $/kWh Assumed same as Intalco.

Total Cost $ 1,071,114

Total Direct Annual costs $ 2,269,442

Indirect Annual Costs

Overhead 60% $ 596,253 CC Manual, section 2.5.5.7

General and Administrative 2% $ 1,935,329 CC Manual, section 2.5.5.7

Property Tax 1% $ 967,664 CC Manual, section 2.5.5.7

Insurance 1% $ 967,664 CC Manual, section 2.5.5.7

Total Indirect Annual Costs $ 4,466,911

Total Annual O&M Costs $ 6,736,352

Total Annual Costs $ 14,534,412

SOX Reduction 1,955

$/ton of SOX $ 7,436

EPA Region 10 - Low

Vendor #1 dual-absorber capital cost, scaled to single absorber cost based on Vendor #2, 

20% increase for inflation between 2006-2013

Cost manual 10%, but assumes scrubber vendor will oversee scrubber installation and 

include in capital of equipment

one full time operator, 3 shifts/day

Scaled from Intalco based on volumetric flowrate.

Assuming 95% reduction of SO2 PTE scaled proportionally from Intalco based on 

volumetric flowrate.

Scaled from Intalco based on volumetric flowrate.