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Updating Capital Cost of SO
2
Control
Technologies in the Integrated Planning
Model and the Coal Utility
Environmental Cost Model
James E. Staudt
Andover Technology Partners
Sikander R. Khan
US Environmental Protection Agency
Office of Atmospheric Programs
Clean Air Markets Division
The MEGA Symposium, August 28-31, 2006
www.AndoverTechnology.com
Background
• US EPA uses Integrated Planning Model
(IPM) to support analysis of policies
• CUECost is a useful cost estimating tool
developed by US EPA
• Capital cost of FGD is an important input to
the IPM and output of CUECost
• Periodic updating of costs is necessary
– Technology improvements
– Other factors that affect cost
www.AndoverTechnology.com
Program
• Seek equipment quotations
– Limestone Forced Oxidation (LSFO)
– Lime Spray Drier Absorber (LSD)
– 200 MW, 500 MW, 900 MW
• Literature search
– Actual projects
– Engineering studies
• Assimilate data and develop cost algorithms
– Capital cost estimates intended to be generic, order-of-
magnitude estimates
www.AndoverTechnology.com
Equipment Quotations
• Quotations sought for all equipment
• Where quotations unavailable, literature
data or CUECost model estimates used.
• Data from different sources made
comparable.
• Algorithms developed based on
physical parameter
– Gas flowrate, sorbent feed rate, etc.
www.AndoverTechnology.com
Calculating Total Capital Requirement
Start with Erected Equipment Cost
Apply Retrofit difficulty factor = 1.3 to get Total Process Capital (TPC)
General Facilities (GF)=5% of TPC
Engineering & Construction Management, ECM=10% of TPC
Project Contingency (PC)=15% of (TPC+GF+ECM)
Total Plant Cost, TPLC = TPC+GF+ECM+PC
Prime Contractor’s Mark-up, PCM = 3% of TPLC
AFUDC and TCE factor are calculated based upon project duration, interests rates,
inflation, etc. In the case of IPM and the default in CUECost, the assumed project
duration is related to the MW size of the plant.
Preproduction Costs, PPC = 2% of TPI plus one month of fixed and variable O&M
Inventory Capital, IC = initial reagent based upon number of days of storage (in this
case, 30 days).
TCE = (TPLC + PCM)*TCE factor
AFUDC = (TPLC + PCM)*AFUDC factor
Total Capital Requirement = TCE + AFUDC + PPC + IC
www.AndoverTechnology.com
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