# Appendix Q

Holcim-Clarksville SO 2 

# Control Cost EvaluationDirect CostsHolcim MDNRPurchased Equipment CostsNew Coal Mill ID Fan and associated equipment$2,000,000$1,000,000 Holcim Estimate; Historical Fan CostInstrumentation (10% of EC) $200,000 $100,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012Sales Tax (5% of EC) $100,000 $50,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012Freight (5% of EC) $100,000 $50,000 0.05 ASubtotal, Purchased Equipment Cost (PEC) $2,400,000 $1,200,000 BDirect Installation CostsFoundation (6% of PEC) $144,000 $72,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012Supports (6% of PEC) $144,000 $72,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012Handling and Erection (40% of PEC) $960,000 $480,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012Electrical (1% of PEC) $24,000 $12,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012Piping (30% of PEC) $720,000 $360,000 0.30 B CCMInsulation for Ductwork (1% of PEC) $24,000 $12,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012Painting (1% of PEC) $24,000 $12,000 0.01 B CCMSubtotal, Direct Installation Cost $2,040,000 $1,020,000Site Preparation N/A N/ABuildings N/A N/ATotal Direct Cost $4,440,000 $2,220,000Indirect CostsEngineering (10% of PEC) $240,000 $120,000 CCMConstruction and Field Expense (10% of PEC) $240,000 $120,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012Contractor Fees (10% of PEC) $240,000 $120,000 CCMStart-up (1% of PEC) $24,000 $12,000 CCMPerformance Test (1% of PEC) $24,000 $12,000 CCMContingencies (3% of PEC) $72,000 $36,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012Total Indirect Cost $840,000 $420,000Total Capital Investment (TCI) $5,280,000 $2,640,000Direct Annual CostsScaled up from 2007 annual average clinker production to 3-yr average clinker productionIncreased Fuel Cost (calculated byscaling2007 annual average fuel usage bythe ratio of 3-year average clinker2007 (1,035,283 tonscScaled to (3 yr average tons clinker)production (1,169,667 tons) to 2007 actual clinker production (1,035,283 tons)####### Reduction in coke usage (metric ton/yr) 181,802Holcim Engineering Estim160,915181,802Heat Value (Gj / Mt) 32.510Holcim Plant DataHeat (Gj / yr) 5,910,397Holcim Engineering EstimateCost ($/Gj) $1.74 Holcim Plant DataSubtotal, reduction in coke cost -$10,284,091 -$10,284,091####### Reduction in coal usage (metric ton/yr) 10,656Holcim Engineering Estim9,43210,656Heat Value (Gj / Mt) 22.177Holcim Plant DataHeat (Gj / yr) 236,325Holcim Engineering EstimateCost ($/Gj) $2.41 Holcim Plant DataSubtotal, reduction in coal cost -$569,543 -$569,543####### Increase in low sulfur coal usage - Amount Requir198,736Holcim Engineering Estim208,546235,616Heat Value (Gj / Mt) 25.818 Holcim Engineering EstimateHeat (Gj / yr) 5,131,033 Holcim Engineering EstimateCost ($/Mt) or Cost ($/Gj) $72.76 $2.82 Holcim Marketing and Engineering EstimateSubtotal, increase in Low Sulfur Coal cost $14,459,211 $14,460,031Total Direct Annual Cost (increase) $3,605,577 $3,606,397Indirect Annual CostsAdministrative (2% TCI) $105,600 $52,800 0.02 TCIProperty Tax (1% TCI) $52,800 $26,400 0.01 TCIInsurance (1% TCI) $52,800 $26,400 0.01 TCICapital Re (15 year life, 7 percent interest) $579,716 $289,858Total Indirect Annual Cost $790,916 $395,458ConclusionTotal Annualized Cost $4,396,493 $4,001,855PollutantEmissionRatePrior toScrubber(tonsSO2/yr) 11,675 11,67511675.16667 Average SO2 Emissions of 3 latest full production yearsPollutant Removed (tons SO2/yr) - 23% 3,152 3,15227% RemovalCost Per Ton of Pollutant Removed$1,395 $1,270Pollutant Emitted after Control 8,523 8,523 tons/yearMaximum Actual Historical Clinker Production (to1,169,6671,169,667Incremental Cost/ton clinker4$ $3.422007 baseline - Holcim Provided in BART Writeup65% Sulfur Input from Fuel35% Sulfur Input from Raw Materials30-35% Sulfur Emitted from StackFrom permit1169667 Average Production of 3 latest full production years 1611840 Maximum Clinker Production @ 184 TPH13298 TPY SO2 @ 16.5 lb/ton6,432,296Gj/yr Heat Input from Fuel at Maximum Clinker ProductionMaximum Annual Clinker Scaled from 2007 Fuel Use (TPY) (TPY) Raw MaterialCost 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 10,656.31236,3259,706.5519,394.937,757.9711,682.67Pet Coke $1.74 5.72% 13976.93 32.51 $56.57 $51.32 181,8025,910,39710,978.1121,935.678,774.2712,698.973%S Coal $2.81815 3.00% 11100 25.81833508 $72.76 $66.01 198,7365,131,0337,250.0614,486.555,794.629,719.320.7309Tires 1.83% 13432.5 31.24367441 24,705.02771,875.48498.35995.77597.46PRB Coal $5.67 0.70% 11300.00 26.28353031 $149.03 $135.20 244,7276,432,2961,661.743,320.371,328.155,252.850.3950Other529,387.510.9478171 MMBTU/Gj12,475.12 24,926.909,970.763,327.24429.927 BTU/lb per Gj/MetricTon5,660,420.15[Max Heat Input] - 12% TDF2.2046 lb/kgBaseline is All Fuel as Pet Coke1000 kg/Metric Ton60% Fuel SO2 Control (Coal/Coke)40% Fuel SO2 Control (Tires)Tires26.865 MMBTU/short ton13432.5 BTU/lb1.83 %S TDFModeled 4889.375 lb SO2/hour 117345 lb SO2/day 12/2/2004 4069.382956 TPD Clinker 28.83606711lb/ton clinker3049.375 lb NOx/hour 73185 lb NOx/day 11/24/2007 3762.70105 TPD Clinker 19.45012347lb/ton clinker30-day ClinkerMAX 30-day average 80529.88431 lb SO2/day 12/10/05 1/8/06 20.95549232 lb/ton clinker104587.71 Metric Tons52858.73258 lb NOx/day 10/29/07- 11/27/07 13.78776969 lb/ton clinker104338.4 Metric Tons2007 Ann Avg lb/ton SO2 17.310831752007 Ann Avg lb/ton Nox 10.05306488Percentile SO2UNC (lb/day) CON(lb/day) lb/30daysLimitsMax 2415897 80529.9 58786.8271763604.8127% Control for SO2 from 30-day Maximum2006 Ann Avg lb/ton SO2 13.64712331 0.95 2239006 74633.53333 54482.479332006 Ann Avg lb/ton Nox 8.583653198 0.9 2043221 68107.36667 49718.377670.8 1824675 60822.5 44400.4252005 Ann Avg lb/ton SO2 11.16488906 0.7 1666853 55561.76667 40560.089672005 Ann Avg lb/ton Nox 5.768385811 0.6 1509100 50303.33333 36721.433330.5 1344408 44813.6 32713.928Percentile NOXUNC (lb/day) CON(lb/day) lb/30daysMax 1585762 52858.73333 42286.986671268609.620% Control for NOX from 30-day maximum0.95 1251125 41704.16667 33363.333330.9 1089332 36311.06667 29048.853330.8 921089 30702.96667 24562.373330.7 855838 28527.93333 22822.346670.6 730787 24359.56667 19487.653330.5 629996 20999.86667 16799.89333Direct CostsMDNR AltPurchased Equipment CostsWet Scrubber Unit including Limestone Prep System $10,524,352 $7,670,653Based on Ash Grove Cement Company - Moapa Plant CostEstimate from Enviro-chem quote (65% of installed price plus25% possible increase). Scaled using ratio of airflows to the0.6 powerInstrumentation (15% of EC) $1,578,653 $1,150,598Holcim Regional Capital Expense Manager -EngineeringEstimate for 2012Sales Tax (5% of EC) $526,218 $383,533Holcim Regional Capital Expense Manager -EngineeringEstimate for 2012Freight (5% of EC) $526,218 $383,533CCMSubtotal, Purchased Equipment Cost (PEC) $13,155,441 $9,588,317 Moapa Airflow311,360acfm 0.41Bypass FractionClarksville Airflow - Permit Limit828,969acfm 489,092acfm (scaled forbypass)Direct Installation CostsFoundation (10% of PEC) $1,315,544 $958,832Holcim Regional Capital Expense Manager -EngineeringEstimate for 2012Supports (10% of PEC) $1,315,544 $958,832Holcim Regional Capital Expense Manager -EngineeringEstimate for 2012Handling and Erection (50% of PEC) $6,577,720 $4,794,158Holcim Regional Capital Expense Manager -EngineeringEstimate for 2012Electrical (10% of PEC) $1,315,544 $958,832Holcim Regional Capital Expense Manager -EngineeringEstimate for 2012Piping (30% of PEC) $3,946,632 $2,876,495CCMExtending gas line 1/2 mile to plant $500,000 $500,000EngineeringEstimateInsulation for Ductwork (5% of PEC) $657,772 $479,416Holcim Regional Capital Expense Manager -EngineeringEstimate for 2012Painting (1% of PEC) $131,554 $95,883CCMSubtotal, Direct Installation Cost $15,760,311 $11,622,447Buildings N/A N/ATotal Direct Cost $28,915,752 $21,210,764Indirect CostsEngineering (10% of PEC) $1,315,544 $958,832CCMConstruction and Field Expense (15% of PEC) $1,973,316 $1,438,248Holcim Regional Capital Expense Manager -EngineeringEstimate for 2012Contractor Fees (10% of PEC) $1,315,544 $958,832CCMStart-up (1% of PEC) $131,554 $95,883CCMPerformance Test (1% of PEC) $131,554 $95,883CCMContingencies (5% of PEC) $657,772 $479,416Holcim Regional Capital Expense Manager -EngineeringEstimate for 2012Total Indirect Cost $5,525,285 $4,027,093Total Capital Investment (TCI) $34,441,037 $25,237,857Direct Annual CostsHours (365 days per year, 24 hours per day), 90% Uptime 7,884 7,884Operating LaborOperator (8 men/yr, 2,080 hrs/yr, $64.50/hr) 4 men/yr $1,073,280 $1,073,280Estimate - 8 man years, 2,080 hrs/yr *64.50.Holcim DurkeeSupervisor (15% of operator) $160,992 $160,992CCMSubtotal, Operating Labor $1,234,272 $1,234,272MaintenanceLabor (6 men/yr, 2,080 hrs/yr, $64.50/hr) 3 men/yr $804,960 $804,960Estimate - 6 man years, 2,080 hrs/yr *64.50.Holcim DurkeeMaterial (5% of Total Direct Cost) 1,445,788$ $1,060,538Holcim Lee Island PSDSubtotal, Maintenance $2,250,748 $1,865,498UtilitiesElectricityPump (kW) 2,342 1,707Scaled using Moapa data and ratio of airflows tothe 0.6powerCost ($/kW-hr) $0.0410 $0.041Clarksville Budget - 2011Subtotal, Electricity $757,054 $551,617Limestone for slurryAmount Required (ton/yr) 15,9729,423(1.6 tons CaCO3/ ton SO2 Removed. From NLAevaluation = 1.03/1.0 molar ratio.Cost ($/ton) $3.00 $3Subtotal, Lime $47,915 $28,270WaterAmount Required (gpm) 122.0 89Scaled using Moapa data and ratio of airflows tothe 0.6powerCost ($/1000 gallons) $1.00 $1Plant EstimateSubtotal, Water $57,716 $42,054Sludge DisposalAmount Generated (tpy) 66,28839,110Scale to synthetic gypsum CaSO4-2H20 MW(170) / SO2 MW( 64) / 80 percent purity lime /50percent moistureDisposal Fee ($/ton) $36.00 $36Bid from Area Disposal Services, Inc.Monthly Rent for Trailer @ $120/month $1,440 $1,440Bid from Area Disposal Services, Inc.Cost for Box Transportation @ $220/load (assume 17 tons/trailer) $857,851 $506,132Bid from Area Disposal Services, Inc.Subtotal, Sludge $3,245,677 $1,915,540Subtotal, Utilities $4,108,361 $2,537,480Natural Gas Reheat (assuming a 210 deg F temp drop and reheat)Gas Required (MMCF/yr) 1,074,722 634,135See Calculations BelowCost ($/MMBTU) $10.06 $10.06Missouri EnergyBulletin - April 10 2008Subtotal, Natural Gas $10,811,708 $6,379,395Total Direct Annual Costs $18,405,089 $12,016,646Indirect Annual CostsOverhead (60% of sum of operating, supervisor, maintenance labor & material$2,091,012 $1,859,862Administrative (2% TCI) $688,821 $504,7570.02 TCIProperty Tax (1% TCI) $344,410 $252,3790.01 TCIInsurance (1% TCI) $344,410 $252,3790.01 TCICapita(15 year life, 7 percent interest) $3,781,441 $2,770,981Total Indirect Annual Cost $7,250,094 $5,640,357ConclusionTotal Annualized Cost $25,655,183 $17,657,003Pollutant Emission Rate Prior to Scrubber (tons SO2/yr) 11,675 11,67511675.16667Ave SO2Emissions of 3latest full prodyrsPollutant Removed (tons SO2/yr) - 90% Removal, 95% Uptime 9,982 5,89090% removal, 95% uptimeMDNR bypasswith reheat and95% uptime(designed toget 50% SO2Control fromBase)Pollutant Generated - NOx tons/yr72Net Pollutant Removed - tons/yr 9,982 5,890Cost Per Ton of Pollutant Removed$2,570 $2,998Pollutant Emitted after Control 1,693 5,786tons/yearMaximum Actual Historical Clinker Production (tons) 1,169,6671,169,667 1169667AverageProduction of3 latest fullproductionyearsIncremental Cost/ton clinker22$ $15.10Standard temperature68 68FDensity of air0.0026 0.0026lb-mole/scfSpecific heat of exhaust gas7.542 7.542Btu/lb-mole FSpecific heat of steam 14.7 psia 220 - 600 deg F8.46 8.46Btu/lb-mole FExhaust gas percent water35% 0.35PercentSpecific heat of exhaust gas7.86 7.8633Btu/lb-mole FExhaust gas temperature after WLS170 256Deg. F Based on Holcim Durkee ScrubberDesign. NW EmailCurrent ESP outlet gas temp380 380DegFHeat input3.60 1.868Btu/acfExhaust gas flow rate - 367828969 828,969acfmExhaust gas flow rate - reduced temperature631,404717751.17Unit natural gas cost$10.06 $10.06Missouri EnergyBulletin - April 10 2008Natural gas requirement - Based on 90% Plant Uptime, 95% ScrubberUptime1,074,722 634134.703MMBTU/yrNatural Gas Cost$10,811,708 $6,379,395.11/yrAdditional NOx Generated 140 140lbs/MMscf. AP-42 Section 1.4-1.*** LNB Control IncludedConversion 1050 1050MMBTU / MMSCF. Approximate ValueNatural gas requirement in MMscf/yr1023.5 603.94MMSCF/yrNOx generated - tons/yr 72 42.28tons/year