UNECE Convention on Long-range Transboundary Air Pollution

1. UNECE Convention on Long-range Transboundary Air Pollution EGTEI MethodologyWork to update costs for LCPSO2, NOx and PM abatement techniques27 June 2013

2. UNECE Convention on Long-range Transboundary Air Pollution • General cost methodology • Calculation of boiler outlet emission loads • Economic assessment of DeNOx technologies • Economic assessment of dedusting technologies • Economic assessment of DeSOx technologies Agenda

3. UNECE Convention on Long-range Transboundary Air Pollution • Draft BREF document should be available by the end of June • NEC Directive proposal should be available at the beginning of Autonm 2013 General information

4. UNECE Convention on Long-range Transboundary Air Pollution 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 NEC Directive in preparation

5. UNECE Convention on Long-range Transboundary Air Pollution • General costmethodology • Calculationofboileroutletemissionloads • EconomicassessmentofDeNOxtechnologies • Economicassessmentofdedustingtechnologies • EconomicassessmentofDeSOxtechnologies Agenda

6. UNECE Convention on Long-range Transboundary Air Pollution Total annualcost General Cost MethodologyIntroduction Annualisationofinvestment Compositionof OPEX Fixed operatingcost Variable operatingcost P = interest rate | n = equipment lifetime | unit = equipment, reagent and electricity consumption, disposal, etc. General Cost Methodology

7. UNECE Convention on Long-range Transboundary Air Pollution • 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 Investment decompositionIn an ideal case, costs should include (BREF Economic and cross media effects 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

8. UNECE Convention on Long-range Transboundary Air Pollution 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. Investment decompositionIn an ideal case, costs should include (BREF Economic and cross media effects) General Cost Methodology

9. UNECE Convention on Long-range Transboundary Air Pollution 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) Investment decompositionIn an ideal case, costs should include (BREF Economic and cross media effects) General Cost Methodology

10. UNECE Convention on Long-range Transboundary Air Pollution 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. Investment decompositionIn an ideal case, costs should include (BREF Economic and cross media effects) General Cost Methodology

11. UNECE Convention on Long-range Transboundary Air Pollution • General costmethodology • Calculationofboileroutletemissionloads • EconomicassessmentofDeNOxtechnologies • Economicassessmentofdedustingtechnologies • EconomicassessmentofDeSOxtechnologies Agenda

12. UNECE Convention on Long-range Transboundary Air Pollution Coal, oil, gas, solid biomass (wood) Fuels Current Implementation Fuel approach Detailed and general approach Plants Boilers, Gas Turbines Pollutants NOx, SO2, PM Technologies NOx: LNB, SCR, SNCR SO2:wet FGD, dry FDG, spray dry absorption PM: FF, ESP Calculation of boiler outlet emission loads

13. UNECE Convention on Long-range Transboundary Air Pollution Plant andfueldatainput External input Emission load calculationApproach Calculationofboileroutletemissionloads Chapter SSB Setting stackemissiongoals Choice of potential abatementtechnologies Pollutant specific chapters NOx (AKM), PM (JBV), SO2 (NA) Economicassessment Calculation of boiler outlet emission loads

14. UNECE Convention on Long-range Transboundary Air Pollution Plant andfueldatainput External input Emission load calculationApproach Calculationofboileroutletemissionloads Chapter SSB Setting stackemissiongoals Choice of potential abatementtechnologies Pollutant specific chapters NOx (AKM), PM (JBV), SO2 (NA) Economicassessment Calculation of boiler outlet emission loads

15. UNECE Convention on Long-range Transboundary Air Pollution Plant andfueldatainput External input Emission load calculationrequired external input Plant: thermal capacity, annualoperatinghours, electricefficiency CombustionCharacteristics:carbon-in-ash, bottom-to-fly-ash ratio, S-retained-in-boiler, excessair, NOxboileroutletemissionload Fuel:elementarymassanalysis (CHONS+ash+moisture) or LHV+S+ash+moisture Calculationofboileroutletemissionloads Calculation of boiler outlet emission loads

16. UNECE Convention on Long-range Transboundary Air Pollution Plant andfueldatainput Emission load calculationInterface to economic assessment Calculationofboileroutletemissionloads Economicassessment Calculation of boiler outlet emission loads

17. UNECE Convention on Long-range Transboundary Air Pollution • General costmethodology • Calculationofboileroutletemissionloads • EconomicassessmentofDeNOxtechnologies • Economicassessmentofdedustingtechnologies • EconomicassessmentofDeSOxtechnologies Agenda

18. UNECE Convention on Long-range Transboundary Air Pollution Challenge mass balancing is not possible! Economic assessment for boilers and process heatersIntroduction Approach guidance with technology and fuel specific „typical“ NOx values from literature Economic assessment of DeNOx technologies

19. UNECE Convention on Long-range Transboundary Air Pollution upgrade of existing LNB to newest generation Option Economic assessment for boilers and process heatersLow NOx Boilers (LNB) Investment few data from literature, old EGTEI values Var. Cost no quantification of costs could be obtained => Cop,var = 0 Illustrative example: 10% p. a. of total investment 2% p. a. of total investment Economic assessment of DeNOx technologies

20. UNECE Convention on Long-range Transboundary Air Pollution Decision SCR or SNCR? Economic assessment for boilers and process heatersSecondary Abatement Techniques SCR Efficiency: 70-90% • Sources: • Air Pollution ControlCost Manual, US EPA • SNCR Guidelines, EPRI • Emission ControlatStationarySources in Germany, KIT • EGTEI Questionnaires 2012 Economic assessment of DeNOx technologies

21. UNECE Convention on Long-range Transboundary Air Pollution current emissions LogicTree Upgrade 1°? Economic assessment for boilers and process heatersSecondary Abatement Techniques 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

22. UNECE Convention on Long-range Transboundary Air Pollution Economic assessment for boilers and process heatersSecondary 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

23. UNECE Convention on Long-range Transboundary Air Pollution Example analysis: Effect of SCR operation (annual capacity factor) on cost composition (left) and spec. NOx reduction cost (right) of an SCR Economic assessment for boilers and process heatersSecondary Abatement Techniques 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

24. UNECE Convention on Long-range Transboundary Air Pollution Example analysis: Effect of plant operation (annual capacity factor) on cost composition (left) and spec. NOx reduction cost (right) of an SCR Economic assessment for boilers and process heatersSecondary Abatement Techniques 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

25. UNECE Convention on Long-range Transboundary Air Pollution • General costmethodology • Calculationofboileroutletemissionloads • EconomicassessmentofDeNOxtechnologies • Economicassessmentofdedustingtechnologies • EconomicassessmentofDeSOxtechnologies Agenda

26. UNECE Convention on Long-range Transboundary Air Pollution SpecificcostmethodologyforDeduster Adaptedmethodogyfrom US EPA Air pollutioncostcontrolmanual Investment cost Variable operatingcost Economic assessment of Dedusting technologies

27. UNECE Convention on Long-range Transboundary Air Pollution Fabric Filter type LogicTree Y Pulse jet ? N General approach for Fabric Filter equipment cost 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 Gross Cloth Area (m2) Eq. 4-6 Ref.box FF-6 Ref.box FF-4 Cages cost (€) Baghouse compartment cost (€) Bag cost (€) Economic assessment of Dedusting technologies

28. UNECE Convention on Long-range Transboundary Air Pollution Net Cloth Area determinationCorrelationandgraphexample T (K) Economic assessment of Dedusting technologies

29. UNECE Convention on Long-range Transboundary Air Pollution • 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 Evolution of Net Cloth Area as a function of MMDin and T Economic assessment of Dedusting technologies

30. UNECE Convention on Long-range Transboundary Air Pollution Costcomparisonfor Pulse Jet Fabric Filter units Variable inputparameters 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

31. UNECE Convention on Long-range Transboundary Air Pollution Costcomparisonfor Pulse Jet Fabric Filter unitsComparisonwithliteraturedata Economic assessment of Dedusting technologies

32. UNECE Convention on Long-range Transboundary Air Pollution LogicTree Method 1 Ref.boxes ESP-1 and 2 Particle source Eq. 4-10 Effective Collecting Plate Area (m2) General approach for ESP equipment cost Efficiency Net Cloth Area (m2) BC ? Eq. 4-23 and ref.box ESP-4 Efficiency (%) Equipment cost (€) Method 2 Volumetric gas flow (m3/s) T (K) Eq. 4-11 to 4-21 And ref. box ESP-3 Eq. 4-23 and ref.box ESP-4 MMDin (µm) Effective Collecting Plate Area (m2) Specific Plate Area (s/m) Factor values MMDp (µm) Eq. 4-22 MMDr (µm) Volumetric gas flow (m3/s) BC ? Economic assessment of Dedusting technologies

33. UNECE Convention on Long-range Transboundary Air Pollution k = 1 k = n MMD1=MMDin SCA1 AECP,1 MMDn SCAn AECP,n Effective collecting plate area determination from method 2 Economic assessment of Dedusting technologies

34. UNECE Convention on Long-range Transboundary Air Pollution Evolution of SCA as a function of MMDin and T T (K) CUECost workbook : 50 s/m < SCA <190 s/m Economic assessment of Dedusting technologies

35. UNECE Convention on Long-range Transboundary Air Pollution Evolution of AECP as a function of MMDin and T T (K) Economic assessment of Dedusting technologies

36. UNECE Convention on Long-range Transboundary Air Pollution • 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 Evolution of AECP as a function of MMDin and T Economic assessment of Dedusting technologies

37. UNECE Convention on Long-range Transboundary Air Pollution Costcomparisonfor ESP units Variable inputparameters 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

38. UNECE Convention on Long-range Transboundary Air Pollution Costcomparisonfor ESP unitsComparisonwithliteraturedata Economic assessment of Dedusting technologies

39. UNECE Convention on Long-range Transboundary Air Pollution • General costmethodology • Calculationofboileroutletemissionloads • EconomicassessmentofDeNOxtechnologies • Economicassessmentofdedustingtechnologies • EconomicassessmentofDeSOxtechnologies Agenda

40. UNECE Convention on Long-range Transboundary Air Pollution Investment : questionnaires Economic assessment of DeSOx technologies

41. UNECE Convention on Long-range Transboundary Air Pollution Investment : questionnairesdata in Euro 2010 Economic assessment of DeSOx technologies

42. UNECE Convention on Long-range Transboundary Air Pollution Investment : IEA data Economic assessment of DeSOx technologies

43. UNECE Convention on Long-range Transboundary Air Pollution Investment : IEA data Economic assessment of DeSOx technologies

44. UNECE Convention on Long-range Transboundary Air Pollution Investment : comparison IEA data and questionnaires Economic assessment of DeSOx technologies

45. UNECE Convention on Long-range Transboundary Air Pollution Installed process capital cost named A Investment : CUECost model Economic assessment of DeSOx technologies

46. CUECost model consider also additional items of costs to derive the total capital requirement: UNECE Convention on Long-range Transboundary Air Pollution Additional cost items have to be included as follows Investment : CUECost model 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

47. UNECE Convention on Long-range Transboundary Air Pollution Additional cost items have to be included as follows Investment : CUECost model 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

48. UNECE Convention on Long-range Transboundary Air Pollution Additional cost items have to be included as follows Investment : CUECost model 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

49. UNECE Convention on Long-range Transboundary Air Pollution 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 Investment : CUECost model Economic assessment of DeSOx technologies

50. UNECE Convention on Long-range Transboundary Air Pollution The CUECost model is able to reproduce IEA data with Investment : CUECost model Economic assessment of DeSOx technologies