UNECE Convention on Long-range Transboundary Air Pollution EGTEI Methodology Work to update costs for LCP SO2, NOx and PM abatement techniques 27 June 2013 UNECE Convention on Long-range Transboundary Air Pollution Agenda General cost methodology Calculation of boiler outlet emission loads Economic assessment of DeNOx technologies Economic assessment of dedusting technologies Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution General information o Draft BREF document should be available by the end of June o NEC Directive proposal should be available at the beginning of Autonm 2013 UNECE Convention on Long-range Transboundary Air Pollution NEC Directive in preparation Targets : reduction of the gap between the Baseline / MTFR for PM2.5 effects of 75 % Other pollutant not yet known, but optimised scenario A5 from IIASA could be the target Ceiling in 2025 or in 2030 Cible en 2025 YOLL Ozone A3 75% Baseline Baseline Baseline A4 75% 50% 50% 55% A5 75% 60% 55% 65% A6 75% 70% 60% 75% Eutrophication Acidification UNECE Convention on Long-range Transboundary Air Pollution Agenda General cost methodology Calculation of boiler outlet emission loads Economic assessment of DeNOx technologies Economic assessment of dedusting technologies Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution General Cost Methodology Introduction Total annual cost Annualisation of investment Composition of OPEX Fixed operating cost Variable operating cost P = interest rate | n = equipment lifetime | unit = equipment, reagent and electricity consumption, disposal, etc. General Cost Methodology UNECE Convention on Long-range Transboundary Air Pollution Investment decomposition In an ideal case, costs should include (BREF Economic and cross media effects Pollution control equipment expenditure Equipment costs, Primary pollution control device, Auxiliary equipment, Instrumention, Any associated freight of equipment, Modification to other equipment Installation expenditure project definition, design, and planning purchase of land general site preparation buildings and civil works (including foundations/supports, erection, electrical, piping, insulation, painting, etc.) engineering, construction and field expenses contractor selection costs and contractor fees performance testing start-up costs cost of working capital Contingency allowance: In estimates of investment expenditure, a sum of money, or ‘contingency allowance’ included to cover expenses that cannot be estimated precisely. These are things that are known will happen but cannot be defined in such detail that they can be valued and added into the estimate. General Cost Methodology UNECE Convention on Long-range Transboundary Air Pollution Investment decomposition In an ideal case, costs should include (BREF Economic and cross media effects) When literature data are available, such a level of details on what is included or not is rarely provided Comparison of costs is difficult as it is difficult to know what is included or not Questionnaires : total costs have been provided but we do not know exactly what is included (no anwsers to the questions on costs items included. General Cost Methodology UNECE Convention on Long-range Transboundary Air Pollution Investment decomposition In an ideal case, costs should include (BREF Economic and cross media effects) In US cost estimation tools developed by EPA for FGD for instance, we have: Equipment costs: BMR = Base absorber island cost BMF = Base reagent preparation cost BMW = Base waste handling cost BMB = Base balance of plan costs including: ID or booster fans, new wet chimney, piping, ductwork, minor WWT, etc. BMWW = Base wastewater treatment facility for future use. Total base installed cost BM = BMR + BMF + BMW + BMB The total base installed cost (BM) is then increased by: • A1: Engineering and construction management costs at 10% of the BM cost; • A2: Labour adjustment for 6 x 10 hour shift premium, per diem, etc., at 10% of the BM cost; • A3: Contractor profit and fees at 10% of the BM cost. To obtain the capital, engineering, and construction cost subtotal (CECC) General Cost Methodology UNECE Convention on Long-range Transboundary Air Pollution Investment decomposition In an ideal case, costs should include (BREF Economic and cross media effects) The capital, engineering, and construction cost subtotal (CECC) is : CECC = BM and the additional engineering and construction fees (A1 + A2 + A3). Additional costs and financing expenditures for the project are computed based on the CECC. Financing and additional project costs include: • Owner's home office costs (owner's engineering, management, and procurement) at 5% of the CECC; • Allowance for Funds Used During Construction (AFUDC) at 10% of the CECC and owner's costs. The AFUDC is based on a three-year engineering and construction cycle. Escalation is not included in the estimate. The total project cost (TPC) = CECC + additional costs and financing expenditures. General Cost Methodology UNECE Convention on Long-range Transboundary Air Pollution Agenda General cost methodology Calculation of boiler outlet emission loads Economic assessment of DeNOx technologies Economic assessment of dedusting technologies Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Current Implementation Fuels Fuel approach Plants Pollutants Technologies Coal, oil, gas, solid biomass (wood) Detailed and general approach Boilers, Gas Turbines NOx, SO2, PM NOx: LNB, SCR, SNCR SO2: wet FGD, dry FDG, spray dry absorption PM: FF, ESP Calculation of boiler outlet emission loads UNECE Convention on Long-range Transboundary Air Pollution Emission load calculation Approach Plant and fuel data input External input Calculation of boiler outlet emission loads Chapter SSB Setting stack emission goals Pollutant specific chapters NOx (AKM), PM (JBV), SO2 (NA) Choice of potential abatement technologies Economic assessment Calculation of boiler outlet emission loads UNECE Convention on Long-range Transboundary Air Pollution Emission load calculation Approach Plant and fuel data input External input Calculation of boiler outlet emission loads Chapter SSB Setting stack emission goals Pollutant specific chapters NOx (AKM), PM (JBV), SO2 (NA) Choice of potential abatement technologies Economic assessment Calculation of boiler outlet emission loads UNECE Convention on Long-range Transboundary Air Pollution Emission load calculation required external input External input Plant and fuel data input Plant: thermal capacity, annual operating hours, electric efficiency Combustion Characteristics: carbon-in-ash, bottom-to-fly-ash ratio, Sretained-in-boiler, excess air, NOx boiler outlet emission load Fuel: elementary mass analysis (CHONS+ash+moisture) or LHV+S+ash+moisture Calculation of boiler outlet emission loads Calculation of boiler outlet emission loads UNECE Convention on Long-range Transboundary Air Pollution Emission load calculation Interface to economic assessment Plant and fuel data input Calculation of boiler outlet emission loads Spec. wet flue gas volume [vflue gasλ,wet] flue gas Annual wet flue gas volume [v Oxygen correction factor [fO2,corr] λ,wet,year] SO2 Spec. dry flue gas volume [vflue gasλ,dry] boiler outlet emissions [loadboSO2,dry] NOx boiler outlet emissions [loadboNOx,dry] Annual dry flue gas volume [vflue gasλ,dry,year] Dust boiler outlet emissions [loadboash,dry] Economic assessment Calculation of boiler outlet emission loads UNECE Convention on Long-range Transboundary Air Pollution Agenda General cost methodology Calculation of boiler outlet emission loads Economic assessment of DeNOx technologies Economic assessment of dedusting technologies Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Economic assessment for boilers and process heaters Introduction Challenge mass balancing is not possible! Approach guidance with technology and fuel specific „typical“ NOx values from literature NOx Boiler outlet emissions according to technology [mg/Nm³] 1st Gen. LNB 2nd Gen. LNB 3rd Gen. LNB Hard Coal / Bituminous Coal TangentiallyWall-Fired Fired 600-800 500-600 500-600 400-500 400-500 350-400 Lignite Wall-Fired Tangentially-Fired 300-400 200-300 150-200 300-400 200-300 150-200 Economic assessment of DeNOx technologies UNECE Convention on Long-range Transboundary Air Pollution Economic assessment for boilers and process heaters Low NOx Boilers (LNB) Option Investment Var. Cost upgrade of existing LNB to newest generation few data from literature, old EGTEI values no quantification of costs could be obtained => Cop,var = 0 Illustrative example: Boiler Size 1,000 MWth Flue gas flow 1E+09 Mio. Nm³/year LoadNOx,dry,O2-ref 800 mg/Nm³ New LoadNOx,dry,O2-ref 400 mg/Nm³ Spec. Investment 5 €/kWth Total Investment 5,000,000 € Ccap Cop,fix Ctot = Ccap + Cop NOx mass abated Cost per ton NOx 500,000 €/year 100,000 €/year 600,000 €/year 400 t/year 1,500 €/t NOx Economic assessment of DeNOx technologies 10% p. a. of total investment 2% p. a. of total investment UNECE Convention on Long-range Transboundary Air Pollution Economic assessment for boilers and process heaters Secondary Abatement Techniques Decision SCR or SNCR? Reference Box - SNCR Efficiency Maximum Achievable SNCR Reduction Rates Plant Size Max. Reduction < 100 MWth 60% 100 - 300 MWth 55% 300 - 500 MWth 47,5% 500 - 700 MWth 40% > 700 MWth 35% SCR Efficiency: 70-90% Sources: Air Pollution Control Cost Manual, US EPA SNCR Guidelines, EPRI Emission Control at Stationary Sources in Germany, KIT EGTEI Questionnaires 2012 Economic assessment of DeNOx technologies UNECE Convention on Long-range Transboundary Air Pollution Economic assessment for boilers and process heaters Secondary Abatement Techniques current emissions Logic Tree Upgrade 1°? Derive new 2° inlet emissions Determine required 2° efficiency Is SNCR feasible? Yes No Details SNCR Details SCR Econonmic Analysis SNCR Econonmic Analysis SCR Economic assessment of DeNOx technologies UNECE Convention on Long-range Transboundary Air Pollution Economic assessment for boilers and process heaters Secondary Abatement Techniques Investment few data from literature, old EGTEI values Var. Cost reagent and electricity consumption, catalyst (SCR only) Catalyst cost depending on management strategies, literature values Economic assessment of DeNOx technologies UNECE Convention on Long-range Transboundary Air Pollution Economic assessment for boilers and process heaters Secondary Abatement Techniques Example analysis: Effect of SCR operation (annual capacity factor) on cost composition (left) and spec. NOx reduction cost (right) of an SCR 100 120 140 160 180 200 0% 20% 40% 60% 80% Share of Total Costs p. a. 100% spec. NOx reduction costs [€/t abated] NOx emissions at stack [mg/Nm³] 4,000 3,600 3,200 2,800 2,400 2,000 200 Capital Costs Fixed Operating Costs Variable Operating Costs 180 160 140 120 NOx emission load at stack (mg/Nm³] 100 1,000 MWth | 80 €/kWth SCR investment | 2% fixed O&M costs | 9% CRF | 6,000 h/a full load hours | SCR inlet emission load: 400 mg/Nm³ Economic assessment of DeNOx technologies UNECE Convention on Long-range Transboundary Air Pollution Economic assessment for boilers and process heaters Secondary Abatement Techniques Example analysis: Effect of plant operation (annual capacity factor) on cost composition (left) and spec. NOx reduction cost (right) of an SCR 20% 40% 60% 80% 100% 0% Capital Costs 20% 40% 60% 80% Share of Total Costs p. a. Fixed Operating Costs 100% Variable Operating Costs Spec. NOx reduction costs [€/t abated] Annual Capacity Factor 25,000 0% 20,000 15,000 10,000 5,000 0 100% 80% 60% 40% Annual Capacity Factor 20% Calculation Basis: 1,000 MWth | 80 €/kWth SCR investment | 2% fixed O&M costs | 9% CRF | 80% reduction (400 to 120 mg/Nm³) Economic assessment of DeNOx technologies UNECE Convention on Long-range Transboundary Air Pollution Agenda General cost methodology Calculation of boiler outlet emission loads Economic assessment of DeNOx technologies Economic assessment of dedusting technologies Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Specific cost methodology for Deduster Adapted methodogy from US EPA Air pollution cost control manual Investment cost Cinv € = f inst ∗ C equip € Variable operating cost Fabric Filter Electrostatic Precipitator finst 1.74 1.67 Cequip 1.Baghouse compartments 2.Bags 3.Cages (only for Pulse Jet) General equipment Cunit 1.Bag replacement 2.Compressed air consumption (only for Pulse Jet) ESP power requirement Economic assessment of Dedusting technologies UNECE Convention on Long-range Transboundary Air Pollution General approach for Fabric Filter equipment cost Fabric Filter type Logic Tree Y N Pulse jet ? Eq. 4-1 and ref.box FF-2 Ref.box FF-1 Gas-to-Cloth ratio [m/s] Eq. 4-3 Net Cloth Area (m2) Eq. 4-4 and ref.box FF-3 If Pulse Jet = Y Ref.box FF-6 Cages cost (€) Gross Cloth Area (m2) Eq. 4-6 Ref.box FF-4 Baghouse compartment cost (€) Bag cost (€) Economic assessment of Dedusting technologies UNECE Convention on Long-range Transboundary Air Pollution Net Cloth Area determination Correlation and graph example 𝐺/𝐶 𝑚 = 𝑓 𝑚𝑎𝑡 ∗ 𝑓 𝑎𝑝𝑝 ∗ 𝑇 𝐾 − 256 𝑠 −0.2335 ∗ 𝑚𝑔 𝑁𝑚3 𝑚𝑔 106 𝑘𝑔 −0.06021 𝑏𝑜 𝑙𝑜𝑎𝑑𝑎𝑠ℎ,𝑑𝑟𝑦 ∗ 0.7471 + 0.0853 ∗ 𝑙𝑛 𝑀𝑀𝐷 µ𝑚 𝑁𝑚3 𝑠 𝑚 𝐺/𝐶 𝑠 𝑓𝑙𝑢𝑒 𝑔𝑎𝑠 𝐴𝑁𝐶 𝑚2 = Net Cloth Area = f (MMDin and T) 25,000 Particle Size Distribution Cumulative Mass Fraction (%) 22,500 20,000 Net Cloth Area [ANC] (m2) 𝑣𝜆,𝑑𝑟𝑦 ,𝑠𝑒𝑐 17,500 15,000 12,500 10,000 7,500 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 T (K) 400 450 500 550 600 650 1 10 Particle Diameter (µm) 5,000 0 10 20 30 40 50 60 70 Mass Mean Diameter [MMDin] (µm) 100 80 90 Economic assessment of Dedusting technologies 100 UNECE Convention on Long-range Transboundary Air Pollution Evolution of Net Cloth Area as a function of MMDin and T ANC increases when MMD decreases ANC increases when T increases For MMD inlet between 5 and 20 µm and T between 400 and 650 K : 11 500 m2 < ANC < 16 500 m2 Over 45 µm, influence of MMD value is insignificant Economic assessment of Dedusting technologies UNECE Convention on Long-range Transboundary Air Pollution Cost comparison for Pulse Jet Fabric Filter units Variable input parameters Range choice Temperature [T] (K) [400-500] Mass Mean diameter [MMDin] (µm) [3-21] Pulse Jet housing {Cartridge ; Modular} Compartement baghouse in stainless steel {Yes ; No} Insulation for compartment baghouse {Yes ; No} Filtering media {PE;CO;PP;FG;NO; RT; P8;TF} Cage size {11,4cm*2,44m; 14,3cm*3,04m} 12,000 10,000 Investment (k€) Parameter 8,000 inv min inv max 6,000 inv norm 4,000 2,000 0 500 750 1000 1250 1500 Power (MWth) inv min : T=400K ; MMDin=21µm ; Cartridge ; without SS ; without insulation ; PE media ; cage size 2 inv max : T=500K ; MMDin=3µm ; Modular; with SS ; with insulation ; TF media ; cage size 1 inv norm : T=450K ; MMDin=12µm ; Cartridge ; with SS ; with insulation ; RT media ; cage size 2 Economic assessment of Dedusting technologies UNECE Convention on Long-range Transboundary Air Pollution Cost comparison for Pulse Jet Fabric Filter units Comparison with literature data 50,000 45,000 References 25,15 AEP 30,28 IEA 22,45 World bank 19,48 Balcke Durr 27,55 EGTEI UNECE 40,000 Investement costs ( 2010 k€) 2010 (k€/MWth) 35,000 inv norm 30,000 AEP 25,000 IEA World bank 20,000 Balcke Durr 15,000 EGTEI-UNECE 10,000 inv max 5,000 0 500 750 1000 1250 Power (MWth) Economic assessment of Dedusting technologies 1500 UNECE Convention on Long-range Transboundary Air Pollution Logic Tree General approach for ESP equipment cost Method 1 Particle source Ref.boxes ESP-1 and 2 Eq. 4-10 Net Cloth Area (m2) Efficiency Effective Collecting Plate Area (m2) Eq. 4-23 and ref.box ESP-4 BC ? Efficiency (%) Method 2 T (K) MMDin (µm) Factor values Eq. 4-11 to 4-21 And ref. box ESP-3 Volumetric gas flow (m3/s) Specific Plate Area (s/m) Equipment cost (€) Effective Collecting Plate Area (m2) MMDp (µm) MMDr (µm) BC ? Eq. 4-22 Volumetric gas flow (m3/s) Economic assessment of Dedusting technologies Eq. 4-23 and ref.box ESP-4 UNECE Convention on Long-range Transboundary Air Pollution Effective collecting plate area determination from method 2 k=1 MMD1=MMDin k=n MMDn SCA1 AECP,1 𝑀𝑀𝐷𝑘+1,𝑖𝑛 µ𝑚 = 𝑀𝑀𝐷𝑘,𝑖𝑛 µ𝑚 ∗ 𝑓 𝑆𝑁 + 𝑝𝑒𝑐 ∗ SCAn AECP,n 1 − 𝑝𝑒𝑐 𝑀𝑀𝐷𝑝 µ𝑚 + 𝑝𝑒𝑐 ∗ 𝑀𝑀𝐷𝑘,𝑖𝑛 µ𝑚 𝑝𝑒𝑠 𝑆𝐶𝐴𝑘 𝑘𝑔 𝜈𝐺 𝑚. 𝑠 𝑠 =− ∗ 1 − 𝑓 𝑆𝑁 ∗ 𝐶 𝑚 𝑉 𝜀0 𝑉. 𝑚 𝐸𝑎𝑣𝑔 𝑚 𝑛 𝐴𝐸𝐶𝑃 𝑚 2 = 𝑆𝐶𝐴𝑘 𝑘=1 ln𝑝𝑒𝑐 2 𝑀𝑀𝐷𝑘,𝑖𝑛 µ𝑚 ∗ 10−6 3 𝑠 𝑓𝑙𝑢𝑒 𝑔𝑎𝑠 𝑁𝑚 ∗ 𝑣𝜆,𝑑𝑟𝑦 ,𝑠𝑒𝑐 𝑚 𝑠 Economic assessment of Dedusting technologies + 𝑀𝑀𝐷𝑟𝑝 µ𝑚 UNECE Convention on Long-range Transboundary Air Pollution Evolution of SCA as a function of MMDin and T SCA = f ( MMDin and T) 3,500 Specific collecting Area [SCA] (s/m) 3,000 2,500 T (K) 400 450 500 550 600 650 2,000 1,500 1,000 500 0 0 10 20 30 40 50 60 70 80 90 Mass Mean Diameter [MMDin] (µm) CUECost workbook : 50 s/m < SCA <190 s/m Economic assessment of Dedusting technologies 100 UNECE Convention on Long-range Transboundary Air Pollution Evolution of AECP as a function of MMDin and T AECP = f (MMDin and T) 1,400,000 Effective collecting plate area [AECP] (m2) 1,200,000 1,000,000 T (K) 400 800,000 450 500 550 600,000 600 650 400,000 200,000 0 0 10 20 30 40 50 60 70 80 Mass Mean Diameter [MMDin] (µm) Economic assessment of Dedusting technologies 90 100 UNECE Convention on Long-range Transboundary Air Pollution Evolution of AECP as a function of MMDin and T AECP increases when MMD decreases AECP increases when T increases For MMD inlet between 5 and 20 µm and T between 400 and 650 K, AECP is ranged between 46 700 m2 to 475 200 m2 T has a more significant influence on ESP Economic assessment of Dedusting technologies UNECE Convention on Long-range Transboundary Air Pollution Cost comparison for ESP units Variable input parameters Range choice Efficiency [η] (%) [99,0-99,99] Temperature [T] (K) [400-500] Mass Mean diameter [MMDin] (µm) [3-21] ESP specific equipment {Yes ; No} ESP material {Carbon steel; Stainless steel 304; Stainless steel 316; Carpenter; Monel; Nickel; Titanium} 35,000 30,000 Investment costs (2010 k€) Parameter 25,000 20,000 inv min 15,000 inv norm 10,000 5,000 0 Investment cost for 1000 MWth unit (2010 k€) Invmin 6 300 Invnorm 21 900 Invmax 224 700 500 600 700 800 900 1000 1100 1200 1300 1400 1500 Power (MWth) inv min : η = 99,0% ; T=400K ; MMDin=21µm ; without equipment ; Carbon steel inv max : η = 99,99% ; T=500K ; MMDin=3µm ; with equipment ; Titanium inv max : η = 99,5% ; T=450K ; MMDin=12µm ; with equipment ; Stainless steel 316 125 M€ < Invcost,max < 315 M€ Economic assessment of Dedusting technologies UNECE Convention on Long-range Transboundary Air Pollution Cost comparison for ESP units Comparison with literature data 55,000 2010 (k€/MWth) References 23,39 AEP 25,23 IEA 50,000 19,33 World bank 32,35 Balcke Durr 6,04 Questionnary Plant B 3,95 Questionnary Plant C 4,47 Questionnary Plant D investment costs (2010 k€) 45,000 inv min 40,000 inv norm 35,000 AEP 30,000 IEA World bank 25,000 Balcke Durr 20,000 Questionnary Plant B 15,000 Questionnary Plant C Questionnary plant D 10,000 5,000 0 500 600 700 800 900 1000 1100 1200 1300 1400 1500 Power (MWth) Economic assessment of Dedusting technologies UNECE Convention on Long-range Transboundary Air Pollution Agenda General cost methodology Calculation of boiler outlet emission loads Economic assessment of DeNOx technologies Economic assessment of dedusting technologies Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : questionnaires Boilers Size MWth Plant A 2464 Plant B 632 Plant C 620 Plant D 1500 Fuel and sulphur content Hard coal 1.2% Brown coal 1% Hard coal 0.9% Hard coal 0.6% Costs €/MWth Total Costs € as provided Investment 2010/MWt in costs M€ h questionnaire 77 922 192 77 922 (2008) 104 754 66.2 175 056 (1998) 80 042 49.6 111 811 (2001) 66 666 99.999 111 407 (1998) Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : questionnairesdata in Euro 2010 Investment costs 250 iNV EURO 2010/kWth 200 150 Questionnaires 100 50 0 0 1000 2000 3000 4000 5000 MWth Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : IEA data Plant Capacity MWe Investments $/kWe Investments € 2010/kWth Petersburg 657 (assumed 1995) [IEA] 317 Cumberland 1300 200 97 Conemaugh 1700 195 94 Ghent 511 215 104 Bailly 668 180 87 Milliken 316 348 168 Navajo 750 236 114 Economic assessment of DeSOx technologies 153 UNECE Convention on Long-range Transboundary Air Pollution Investment : IEA data Investment costs 250 iNV EURO 2010/kWth 200 150 IEA 100 50 0 0 1000 2000 3000 4000 5000 MWth Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : comparison IEA data and questionnaires Investment costs 250 iNV EURO 2010/kWth 200 150 IEA 100 Questionnaires 50 0 0 1000 2000 3000 4000 5000 MWth Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : CUECost model Installed process capital cost named A $ 2008 FSFO process equipment ID fans and ductwork Chimney Support equipment x MWe Equation (X x 1000 x A x X^B)/1.3 A B 4456.5 -0.6442 Chimney afcm (A x X + B)/1.3 1.6225 3 000 000 Chimney afcm (A x X + B)/1.3 3.4736 5 000 000 MWe 0.0003 x X^3-1.0667 x X^2+1993.8 x X +1177674) x 1.22 Economic assessment of DeSOx technologies CUECost model consider also additional Convention items of costs to on derive the total capitalTransboundary requirement: UNECE Long-range Air Pollution Investment : CUECost model Additional cost items have to be included as follows Installed process capital cost General facilities at % of A Engineering and home office fees at % of A Contingency as % of (A + B + C) Total plant cost (TPC) Total Cash Expended (TCE) Allowance for funds during construction (AFDC) Total plant investment (TPI) Reproduction costs Inventory capital Total capital requirement = = = = = = = = = = = A B C D A+B+C+D TPC * adjustment factor1 AFDC % input * TPC TCE + AFDC F G TPI + F + G Total Plant Cost (TPC) - Equivalent to the total installed cost for all plant equipment, including all direct and indirect construction costs, engineering, overheads, fees, and contingency. Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : CUECost model Additional cost items have to be included as follows Installed process capital cost General facilities at % of A Engineering and home office fees at % of A Contingency as % of (A + B + C) Total plant cost (TPC) Total Cash Expended (TCE) Allowance for funds during construction (AFDC) Total plant investment (TPI) Reproduction costs Inventory capital Total capital requirement = = = = = = = = = = = A B C D A+B+C+D TPC * adjustment factor1 AFDC % input * TPC TCE + AFDC F G TPI + F + G General Facilities - Includes costs for items such as roads, office buildings, maintenance shops, and laboratories. The indirect cost for these facilities typically ranges from 5 to 20% of the Process Capital. Engineering and Home Office Costs - This indirect cost includes the costs for an architectural/engineering company and for home office engineering expenses by the user’s company. This value typically ranges from 5 to 20% of the Process Capital Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : CUECost model Additional cost items have to be included as follows Installed process capital cost General facilities at % of A Engineering and home office fees at % of A Contingency as % of (A + B + C) Total plant cost (TPC) Total Cash Expended (TCE) Allowance for funds during construction (AFDC) Total plant investment (TPI) Reproduction costs Inventory capital Total capital requirement = = = = = = = = = = = A B C D A+B+C+D TPC * adjustment factor1 AFDC % input * TPC TCE + AFDC F G TPI + F + G Contingency - A capital cost included in the estimate to cover the costs for additional equipment or other costs that are expected to be incurred during a project after the detailed design is completed. These are funds that are expected to be spent during implementation of the final project. Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : CUECost model Additional cost items have to be included as follows Allowance for Funds Used During Construction (AFDC) - Represents the time value of money during the construction period Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : CUECost model The CUECost model is able to reproduce IEA data with Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : CUECost model The CUECost model used to estimated costs for different sizes of plants but just the Total plant cost (TPC) as information is insufficiently developed to include other cost items Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : comparison IEA data, questionnaires and CUECost model Investment costs 250 Bad representation of the costs from questionnaire and IEA iNV EURO 2010/kWth 200 150 IEA Questionnaires 100 CUE COST MODEL 50 0 0 1000 2000 3000 4000 5000 MWth Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : comparison IEA data, questionnaires and CUECost model Investment costs 250 Better representation if installed capital cost is multiplied by a factor 2 iNV EURO 2010/kWth 200 150 IEA Questionnaires 100 CUE COST MODEL CUECost adapted 50 0 0 1000 2000 3000 4000 5000 MWth Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : US EPA cost manual chapter 5 Equipment costs: BMR = Base absorber island cost BMF = Base reagent preparation cost BMW = Base waste handling cost BMB = Base balance of plan costs including: ID or booster fans, new wet chimney, piping, ductwork, minor WWT, etc. BMWW = Base wastewater treatment facility for future use. Total base installed cost BM = BMR + BMF + BMW + BMB The total base installed cost (BM) is then increased by: • A1: Engineering and construction management costs at 10% of the BM cost; • A2: Labour adjustment for 6 x 10 hour shift premium, per diem, etc., at 10% of the BM cost; • A3: Contractor profit and fees at 10% of the BM cost. To obtain the capital, engineering, and construction cost subtotal (CECC) Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : US EPA cost manual chapter 5 The capital, engineering, and construction cost subtotal (CECC) is : CECC = BM and the additional engineering and construction fees (A1 + A2 + A3). Additional costs and financing expenditures for the project are computed based on the CECC. Financing and additional project costs include: • Owner's home office costs (owner's engineering, management, and procurement) at 5% of the CECC; • Allowance for Funds Used During Construction (AFUDC) at 10% of the CECC and owner's costs. The AFUDC is based on a three-year engineering and construction cycle. Escalation is not included in the estimate. The total project cost (TPC) = CECC + additional costs and financing expenditures. Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : US EPA cost manual chapter 5 Equipment costs: Functions depending on : o Unit size MWE o Retrofit factor complexity, o Gross heat rate o SO2 rate o Type of coal and coal factor Functions tested for plants from 350 MWth to 5000 MWth assuming bituminious coal with a coal factor of 1 and 1 % S content, a plant efficiency of 40 % to derive the total project cost with default parameter for the different cost components to be added to the Total base installed cost Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : US EPA cost manual chapter 5 Test for a 500 MWe plant 40 % efficiency, Coal : 1% S, 28 GJ/t A B C D E F G unit size retrofit factor gross heat rate SO2 rate Type of coal coal factor heat rate factor 500MWe 1 8531.6Btu/kWh 1.7lb/MMbtu 0.009 1% 0.714 1 0.853 Economic assessment of DeSOx technologies GJ/kWh S Kg SO2/GJ UNECE Convention on Long-range Transboundary Air Pollution Investment : US EPA cost manual chapter 5 Test for a 500 MWe plant 40 % efficiency : €2010 Absorber cost Reagent preparation cost Waste handling cost Plant costs including ID, new chimney, piping duct work Total base installed cost Engineering and construction management costs Labour adjustment for 6*10 hour shift premium per dien Contractor profit and fees 30 588 772 12 950 446 7 181 196 58 201 424 108 921 837 10% 10% 10% Capital, engineering and construction cost subtotal Owners costs including all home office costs (owners engineering, management and procurement activities Total project cost 10 892 184 10 892 184 10 892 184 141 598 388 5% 7 079 919 148 678 308 Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : US EPA cost manual chapter 5 Investment costs 250 iNV EURO 2010/kWth 200 150 EPA 100 50 0 0 1000 2000 3000 4000 5000 6000 7000 MWth Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : US EPA cost manual chapter 5comparison with other sources Investment costs 250 iNV EURO 2010/kWth 200 150 IEA Questionnaires CUE COST MODEL 100 EPA 50 0 0 1000 2000 3000 4000 5000 MWth Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : US EPA cost manual chapter 5 - comparison with other sources Investment costs 250 Test with reduced % of additional cost (+15 % instead of + 35%) iNV EURO 2010/kWth 200 150 EPA 100 EPA woth +15 % instead of +35 % 50 0 0 2000 4000 6000 MWth Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : comparision with IEA and questionnaires Investment costs 250 iNV EURO 2010/kWth 200 IEA 150 Questionnaires 100 EPA EPA woth +15 % instead of +35 % 50 0 0 1000 2000 3000 4000 5000 MWth Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : Remarks on IEA data Effect of learning effect IEA data collected probably in the year 1990. Assumed to be 1995 on average According to information provided by IEA costs could have been reduced by 40 % from 1995 to 2000 Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : Remarks on IEA data Investment costs 250 iNV EURO 2010/kWth 200 150 IEA Questionnaires EPA 100 EPA woth +15 % instead of +35 % IEA with learning effect 50 0 0 1000 2000 3000 4000 5000 MWth Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Investment : Conclusions The EPA model is able to represent correctly costs encountered in Europe if some component of costs provided by this methodology are adapted : Proposal : use the EPA model to estimate investment with adapted % for • A1: Engineering and construction management costs at 10% of the BM cost; • A2: Labour adjustment for 6 x 10 hour shift premium, per diem, etc., at 10% of the BM cost; • A3: Contractor profit and fees at 10% of the BM cost. To obtain the capital, engineering, and construction cost subtotal (CECC) Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Operating costs At the previous meeting : Validation of the reagent consumption and waste amount generated. Electricity consumption and water consumption still to be validated Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Electricity consumption Electricity consumption has two components in a FGD: o The operating power of the fans to overcome the pressure drop (flue gas handling) o The operating power of other auxiliaries such spray headers, mist eliminators, by products handling, slurry pumps...). From questionnaire s: The average power for all auxiliaries on average of 1.5 % of capacity of the plant. Proposal : take this into account to estimate costs of electricity consumption from auxiliaries. To overcome the pressure drop, the consumption of electricity depends on this pressure drop. Reference [CUEcost] provides an average pressure drop of 6 in H2O or 15 mbar for a LSFO unit with an efficiency of 95 %. Proposal: take this factor into account by default for the electricity consumption determination to over come the pressure drop Economic assessment of DeSOx technologies The following data from IEA have to be kept in mind for comparison) UNECE Convention on Long-range Transboundary Air Pollution Electricity consumption Sulphur content of coal 1% 2.25 % Capacity of fans and auxiliaries to be used 1 % of net generation 1.5 % of net generation Economic assessment of DeSOx technologies UNECE Convention on Long-range Transboundary Air Pollution Water consumption FGD Efficiency S% m3/hour annual m3/t** consumption reagent Plant A 94 1.2 200 1500000 21 Plant B 96 2 51 355245 7 Plant C 95 0.9 25 à 60 66300* 8* Plant D 86.4 0.62 61 334700 24 *Calculated by the secretariat based on 50 m3/h ** Calculated by the secretariat to try to derive parameter easily usable in cost functions Water consumption has not a major impact on operating costs as it is rarely highlighted by the literature. However [IEA] provides one example of 7 m3/t reagent. Proposal to take this water demand into account by EGTEI Economic assessment of DeSOx technologies