p. 1 

# OAR Box 

# 1828 Prepped by Ollie Stewart



## Document

Number: 

# 136 ) ll-K-(B)-13 5 Docket Number: 

# A-83-2 7

Printed 11/12/2008 11:12:53 AM Sheet 136 of 325P. 2



## ENERG YAN D ENVIRONMENTA L ANALYSIS , INC . Apri l 4 , 198 4

Mr . Rober t Shor t Economi c Analysi s Branc h U.S . Environmenta l Protectio n Agenc y Mai l Drop-1 2 Researc h Triangl e Park , N C 2771 1 Subject : Revise d Bee t Suga r Industr yUpdat e fo r Industria l Boile r NSP S EP A#68-02-3536 , Wor k Assignmen t #3 4 Dea r Mr . Short : Enclose d i s an updat e o f phon e conversation s whic h Joa n McGover n mad e t o bee t suga r companie s i n 1982 . Call s wer e mad e t o determin e i f an yi n the industr

yhad reevaluate d thei r 198 2 positio n o n ne wboile r investments . Thi s mos t recen t surveywa s adde d t o the sheet s whic h Joa n prepare d o r additiona l sheet s wer e supplemente d i f needed . Compan y name s ar e delete d s o tha t thes e summarie s ar e treate d a s confidential . Th e followu

p conversation s indicate d tha t tw o companie s wh o wer e no t planning t o replac e boiler s i n 198 2 had nowdecide d t o g o ahead wit h coa l conversions . Theycite d the long-rang e benefi t o f burning the cheape r fue l i.e. , coa l rathe r than gas/oil . Othe r companie s wh o have- * considere d coa l conversion s hav e stil l no t mad e an yplan s t o convert , citin g high capita l investmen t cost s a s thei r majo r constraint . On e compan yrecentl yacquire d b ya ne wowne r i s planning t o expan d facilitie s i n 198 7 an

d wil l ad

d on e o r two coa l high pressur e boiler s t o it s existin g facilities . O f al l the companie s planning investment s i n ne wboilers , th e preferenc e i s t o bur n coal . I f yo u hav e an

yquestions , pleas e call . Sincerely , Patric k Ryan PR/c e Enclosur e cc : A l Weh e

Economic s / Engineerin gP. 3

Compan y# 1 EEAContact : Joa n McGover n Dat e o f Conversation : May17 , 198 2 Summaryo f point s discussed :
• Th e compan

yha s si x plants : five ar e coal-fired , on e (a t Hills
boro , ND ) i s oil-fired .
• Refining seaso n ha s average d 18 0 day s ove r a five-yea r period .
• I n 1979 , the compan yhad plan s t o replac e it s 3
- 100,00 0 pph , oil-fire d boiler s a t th e Hillsbor o plant , wit h 2
- 175,00 0 pp h coal-fire d units . I t ha s sinc e "shelved " thos e plan s becaus e interes t rate s ar e hig h an d suga r price s low . ESP' s woul d hav e bee n installe d fo r PM control .
• ESP' s ar e use d fo r PM contro l a t al l five coal-fire d plants . Ha d previousl yinstalle d multitub e cyclone s bu t theywer e no t effective . Thes e plant s fal l belo wthe thre e l b SO - SIP .
• Instead o f replacing wit h newboilers , the compan yha s recentl y mad e efficienc yimprovements . I t ha s installe d a computerize d boile r contro l syste mt o reduc e fue l oi l intake . 198 4 Update : EEAContact : Patric k Rya n Dat e o f Conversation : Marc h 13 , 198 4 Summaryo f point s discussed :

• Compan

yi s lookin

g t o replac e 3
- 100,00 0 pph , oil-fire d boiler s wit h 2
- 150,00 0 pph coal-fire d boiler s pending authorizatio n fro m Board o f Director s i n June , 1984 . Thei r concern i s the lon g rang e economic s o f fue l use . Coa l i s see n a s the bes t investmen t despit e moderatio n o f oi l prices . Th e instabilit yo f oi l price s i n th e pas t i s a majo r reaso n fo r the switch .
• Contro l method s hav e no t bee n considere d an d ar e no t a facto r i n th e company' s decisio n t o replac e the boilers . Th e benefi t o f coa l ove r shadow s an ycontro l consideration .P. 4

Compan y# 2 EEAContact : Joa n McGover n Dat e o f Conversation : May13 , 198 2 Summaryo f point s discussed :

• Th e compan

yha s fiv e plants ; however , i t i s i n the proces s o f closing on e o f it s plants . Th e are a surrounding the plan t graduall yturne d residentia l an

d i t had t o contrac t wit h grower s outsid e the are a i n th e proces s incurring transportatio n costs . Th e compan ydecide d t o ceas e bee t suga r operation s an d instead wil l probabl yus e the plan t fo r some othe r operation .
• Refining seaso n last s nin e months . Boiler s ar e ru n a t ful l loa

d during refining season .
• Al l plant s ar e natura l gas/oil-fired : Plan t A2 natura l gas/oi l boiler s eac h rate d a t 110,00 0 pph . Buil t i n 1968 . Plan t B 2 natura l gas/oi l boiler s eac h rate d a t 110,00 0 pph . Buil t i n 1965 . Plan t C 3 natura l gas/oi l boiler s eac h rate d a t 75,00 0 pph . Buil t i n 1950 . Plan t D 1 natura l gas/oi l boile r a t 220,00 0 pph . Buil t i n 1963 .
• Th e compan

yplan s n o boile r investment s fo r th e nea r future . Initia l capita l cost s ar e to o high . Th e compan yplan s instead t o mak e effi
ciencyimprovements ., *• ' » "* *

t Compan y# 2 198 4 Update : EEAContact : Patric k Ryan Dat e o f Conversation : Marc h 13 , 198 4 Summar yo f point s discussed :

• Th e compan

yi s no t planning t o replac e o r instal l an yboiler s becaus e o f the capita l investmen t involve d whic h the yfee l out weigh s an

ysaving s i n fue l price s b yburning coal . Thei r effort s ar e mor e concerne d wit h the proces s aspec t o f suga r making than wit h building steam . P. 5P. 6

Compan y#3 . EE AContact : Joa n McGover n Dat e o f Conversation : May25 , 198 4 Summar yo f point s discussed :

• Compan

yha s 1 3 plants , thre e o f whic h ar e temporaril yno t operating .
• Refining seaso n average s 12 0 days . During the season , boiler s ar e ru n a t 8 0 percen t load .
• Plant s represen t a rang e o f boile r sizes : Operating Plant s # 1 3 natura l ga s boilers , eac h rate d ^100,00 0 pp h # 2 1 natura l ga s boile r a t 150,00 0 pph # 3 3 natura l ga s boilers , ranging fro m60,000
- 100,00 0 pph # 4 1 natura l ga s a t 100,00 0 pph ; 3 coa l a t 100,00 0

pph # 5 2 coal , eac h a t 150,00 0 pph # 6 2 coal , eac h a t 150,00 0 pph # 7 2 coal , eac h a t 150,00 0 pph # 8 6 coal , eac h a t 20,00 0 pph (ol d boilers , c . 1915 ) # 9 6 coal , eac h a t 20,00 0 pph (ol d boilers , c . 1915 ) #1 0 2 coal , on e a t -\*150,00 0 pph an d a t ^50,00 0 pph Non-operating Plant s #1 1 7 natura l gas , eac h a t ^20,00 0 pph #1 2 7 coal , eac h a t ^20,00 0 pph #1 3 2 coal , eac h a t 'vlOO.OO O pph ; 1 natura l ga s a t 100,00 0 pp h

• Presentl yhav e Ventur i scrubber s o n coal-fire d plant s requiring control .
• Th e compan

yi s no t planning boile r replacement s bu t i f i t di d re plac e boilers , the

ywoul d ten

d t o b e coal-fire d betwee n 100,00 0 an d 200,00 0 pph controlle d wit h baghouses , no t the Ventur i scrub
ber s tha t theycurrentl yhav e i n use .P. 7

Compan y# 3 198 4 Update : EE AContact ; Patric k Rya n Dat e o f Conversation : Marc h 14 , 198 4 Summar yo f point s discussed :

• Compan

yha s n o plan s t o replac e an yboiler s althoug

h the y hav e explore d the optio n o f coa l conversio n severa l times . Eve n thoug

h theyfee l coa l woul d b e cheape r i n the long-ru n theyar e no t willing t o mak e the initia l investment . Th e instabilit yo f the industr ywa s cite d a s the majo r facto r holding bac k an

yconversio n fro

mga s t o coal . Th e compan y i s keeping awar e o f the implication s o f coa l conversion , an d i f condition s ar e favorabl e the ywil l conside r it .P. 8

Compan y# 4 EEAContact : Joa n McGover n Dat e o f Conversation : May12 , 198 2 Summar yo f point s discussed :

• Compan

yha s seve n plants .
• Refining seaso n average s 12 0 day s durin g seaso n boile r load , i s approximatel y7 7 percent .
• A t a "typica l plant " ther e ar e thre e natura l gas/oil-fire d boilers , eac h rate d 150,00 0 pph . (Presentl yfirin g # 6 oil. ) On e o f thes e boiler s i s a standb yunit .
• Woul d rathe r mak e boile r efficiencyimprovement s tha n purchas e ne w boiler s a t the presen t time .
• Employ s approximatel y40 0 during refinin g seaso n an

d 50-10 0 i n the off-season .P. 9

Compan y# 4 EEAContact : Joa n McGover n Dat e o f Conversation : Ma y25 , 198 2 (Clarification s t o earlier , May12 , 198 2 conversation ) Summaryo f point s discussed :

• Al l seve n plant s ar e oil/gas-fired .
• Th e compan

yi s considering replacing wit h coal-fire d boilers . Woul d ten

d t o purchas e on e coal-fire d boile r o f 175,00 0 - 200,00 0 pp h an

d no t hav e an

ystandb

yboilers . Th e compan yi s no t sur e o f the contro l devic e t o install , bu t i t i s tending toward s baghouses . 198 4 Update : EEAContact : Patric k Rya n Dat e o f Conversation : Marc h 19 , 198 4 Summaryo f point s discussed :

• Compan

yi s presentl yundergoing a majo r conversio n fro mga s bac k t o coal . On e plan t wil l hav e replce d four boiler s an d anothe r plan t tw

o boiler s b

yfall , 1984 . The firs t plan t wil l instal l baghouse s whil e the othe r plan t wil l us e we t scrubber s fo r control . Conversion s o f thei r othe r plant s ar e planne d an

d wil l begi n sometime following completio n o f th e tw o plant s mentioned .P.1 0

Compan y# 5 EE AContact : Joa n McGover n Dat e o f Conversation : May13 , 198 2 Summaryo f point s discussed :

• Th e compan

yoperate s four plants .
• Refining seaso n average s four an d one-hal f months . During tha t time , boiler s ru n a t ful l load .
• Compan

yemploy s 1,00 0 during the seaso n an d 35 0 full-time .
• Thre e o f th e plant s ar e coal-fired , the fourt h i s oil/gas
fired : # 1 (slice s 1,80 0 ton s beets/day) . Tw o coal-fire d boiler s rate d a t ^60,00 0 pph . Bt u conten t o f coa l use d a t al l plant s i s 13,00 0 Btu / lb . Plan t als o ha s on e 90,00 0 pp h oil/ga s packag e boile r whic h i s no t i n use . # 2 (slice s 3,50 0 ton s beets/day) . Tw o coal-fire d boiler s a t -^60,00 0 pph . On e standb

yoil/ga s packag e boile r a t 90,00 0 pph , fire d a t 60,00 0 pp h load . # 3 (slice s 2,80 0 ton s beets/day) . Tw o coal-fire d boiler s a t 60,00 0 + pph . On e standb

yoil/ga s packag e boile r a t 90,00 0 pp h an d fired a t a 30,00 0 pp h load . # 4 on e oil/gas-fire d boile r a t 120,00 0 pph .
• Particulate s ar e controlle d wit h mechanica l dus t collectors . The boiler s ar e fire d wit h lo wsulfu r coal .
• Sugu r yiel d i s 240-25 0 lb s suga r pe r ton o f beet s sliced .
• Th e compan

yha s n o plan s t o replac e boilers . I n fact , i t mayclos e th e oil/gas-fire d plan t instead o f replacing i t wit h coal-fire d boilers .p.1 1

Compan y# 5 198 4 Update : EEAContact : Patric k Rya n Dat e o f Conversation : Marc h 13 , 198 4 Summaryo f point s discussed :

• Operation s ar e the sam e a s the

ywer e i n 1982 . Theynowhav e n o plan s t o clos e the oil/gas-fire d plan t an d n o plan s t o replac e o r instal l onl yboilers .P.1 2

Compan y# 6 EEAContact : Joa n McGover n Dat e o f Conversation : May17 , 198 2 Summar yo f point s discussed :

• Th e cooperativ e operate s on e plant .
• Refining seaso n average s 180-20 0 days .
• Employ s 25 0 during refining seaso n an d 15 0 during the off-season .
• I n 1977 , th e compan yreplace d 3
- 100,00 0 pph oil-fire d boiler s wit h 2
- 175,00 0 pp h lignite-fire d units . Th e contro l typ e use d i s a we t scrubber . Two boiler s ar e operate d a t a combine d loa d o f 280,00 0 pph during refining season . 198 4 Update : EEAContact : Patric k Rya n Dat e o f Conversation : Marc h 13 , 198 4 Summar yo f point s discussed :

• Th e plan t i s stil l operate d a s i t wa s i n 198 2 an d n o plan s hav e bee n mad e t o replac e o r instal l ne wboilers . Th e compan yi s satisfie d wit h the boiler s i t installe d i n 197 7 an d the we t scrubber s use d fo r control .P.1 3

Compan y# 7 EEAContact : Joa n McGover n Dat e o f Conversation : May12 , 198 2 Summar yo f point s discussed :

• Compan

yha s on e plant .
• Refining seaso n average s four month s (Octobe r 1 - January31) . Boile r loa

d during the seaso n i s betwee n 8 1 percen t an d 8 7 percent .
• Plan t ha s fou r coal-fire d boilers , eac h wit h rate d capacit yo f 80,00 0 pph . Lo

wsulfu r coa l i s burned . Th e plan t control s particulate s wit h a "fl yas h collector" . Thre e o f the boiler s wer e buil t i n the 1940's , the fourt h boile r i n 1962 .
• N o boile r replacement s planned . Boile r investment s depen d o n suga r prices , interes t rates , an d regulations . Th e tendency nowi s t o buil d large r coal-fire d boilers .
• Th e compan

yemploy s 30 0 durin g refining season , 8 0 durin g off
season , an

d 2 0 corporat e officials .
• Plan t slice s an averag e 4,30 0 ton s o f beet s pe r day . Aten yea r averag e suga r yiel d i s 23 5 pound s o f suga r pe r to n o f beet s sliced . 198 4 Update : EEAContact : Patric k Rya n Dat e o f Conversation : Marc h 14 , 198 4 Summar yo f point s discussed :

• Ne wowne r i s planning expansio n i n 198 7 an d want s t o supplemen t existing lo

wpressur e boiler s wit h on e o r tw o hig h pressur e boilers . Th e plan t wil l continu e t o bur n coa l o r mayus e coa l dus t i n the ne wboilers .P.1 4

Compan y# 8 EE AContact : Joa n McGover n Dat e o f Conversation : May20 , 198 2 Summar yo f point s discussed :

• Th e compan

yha s on e plant .
• Refining seaso n typicall ylast s si x months . Th e boile r i s operating a t 8 5 percen t loa d during the season .
• Th e plan t ha s thre e boilers . Th e on e tha t i s use d exclusivel y i s rate d 350,00 0 pph an d fire s pulverize d lignite . I t wa s buil t i n 197 5 an

d ha s an ESP . Th e second , 50,00 0 pp h boile r i s a stand
by , oil-fire d uni t tha t i s rarel yused . Th e third boile r o f 25,00 0 pph rate d capacit yi s use d fo r spac e heating .
• Th e compan

yplan s n o boile r replacement s sinc e the 350,00 0 uni t wa s recentl yinstalled . However , i f i t di d choos e t o replac e i t woul d prefe r two smalle r coa l boiler s o f approximatel y200,00 0 pp h each .
• Th e compan

yemploy s 40 0 during refining seaso n an d 10 0 i n the off
season . 198 4 Update : EEAContact : Patric k Rya n Dat e o f Conversation : Marc h 13 , 198 4 Summar yo f point s discussed :

• Th e compan

yi s operating the sam e a s i t wa s i n 1982 , stil l pre ferring coa l becaus e i t i s the mos t economical . Theyhav e n o plan s t o instal l o r replac e an yboilers .