Econ Analysis - Vendor Quote

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Southern Montana Electric Generation and Transmission Cooperative Highwood Generating Station GE LM6000PF Simple Cycle Turbines NOX BACT Economic Evaluation Case S3 - Combined Cycle SCR Economic Analysis Based on methodology described in: EPA Pollution Cost Control Manual, 6th Edition January 2002 Section 4.2, Chapter 2 Input Values 369.7 MMBtu/hr 103.5 MMBtu/hr 446.2 MMBtu/hr 581,959 acfm 91.9% 25 36.58 140 1000 14.5 0.114 10 1.72E-05 750 1 1.05 19% 0.220 $/lb (1998 $) 8760 0.9 0.90 1.0 Control efficiency ppmvd @ 15% O2 lb/hr lb/MMscf Btu/scf lb/hr lb/MMBtu ppm wt fraction °F Description Heat input rate, max per turbine, -17.7 °F, 100% Load Heat input rate, max per duct burner, 91.5°F, 100% load Heat input rate, max per generating unit, 91.5°F, 100% load Exhaust gas flow rate Inlet NOx concentration, post water injection Inlet NOx rate as NO2 NOX emission factor, duct burners heat content, natural gas Uncontrolled duct burner emissions turbine and duct burner combined Allowable slip Fuel S concentration Reactor Inlet gas temperature Empty catalyst layers for change-out Actual stoichiometric ratio = (NSR / SR T) Concentration of aqueous ammonia solution by weight (assumed) Cost of ammonia -- value per OAQPS example Reference Reference 4 Reference 3 Reference 3 Reference 3 Reference 2 Reference 4 Reference 4 Reference 9 QB = q flg, act = η NOX = NO X,IN Slip S T n empty ASR = = = = = = Reference 8 Calculated, See "Wt fract S in NG" tab Industry standard following tempering air Bison Estimate Reference 1, Eqn 2.11 Reference 8 Reference 10 Reference 8 C SOL = Cost NH3 = $ Hours of Operation = Assumed CF = CF PLANT = CF SCR = Capacity factor of plant Capacity factor of SCR when plant is operational Cost of electricity -- value per OAQPS example Interest rate, assumed Control System Cost, high temperature catalyst Control System Cost, high temperature catalyst Control System Cost, high temperature catalyst, average Control System Cost, high temperature catalyst, each turbine Lower Temperature Combined Cycle SCR Catalyst Cost Lower Temperature Combined Cycle SCR Cost Lower Temperature Combined Cycle CO Catalyst Cost Reference 5 Reference 5 Reference 5 Bison Estimate Reference 1, Pg 2-50 Reference 6 Reference 7 Cost ELEC = 0.05 $/kWh (1998 $) i = 10% CSC1 = $ 3,480,000 (2009 $) CSC2 = $ 1,580,000 (2009 $) CSC AVE = $ 2,530,000 (2009 $) CSC each = $ 1,265,000 (2009 $) CC new,LoT = SCR Cost LoT = CO Catalyst Cost LoT = SCR Cost % of total = SCR Cat % of total = SCR Cost HiT = $ $ $ 170,000 (2009 $) 590,000 (2009 $) (2009 $) 340,000 63.4% 18.3% $802,527 $569,993 CCnew HiT = $231,237 $164,235 Plenum & Mat'l costs = $275,000 $195,318 Ammonia Tank Costs = $ 248,884 $194,036 OTSG Incr Costs = $8,921,727 $6,336,638 CC new = $ 1,183 CC replace = $ 1,183 N = 20.0 CEPCI98 = 389.5 CEPCI06 = 499.6 CEPCI08 = 548.4 M reagent = 17.03 M NO2 = 46.01 ρsol = v sol = ΔPduct = ΔPcatalyst = Design Values (2009 $) (1998 $) (2009 $) (1998 $) (2009 $) (1998 $) (2009 $) (1998 $) (2009 $) (1998 $) $/ft3 (1998 $) $/ft3 (1998 $) yr SCR system cost portion of CSC each , High Temperature Catalyst SCR Catalyst costs from CSC each , High Temperature Catalyst Reference 8 Reference 8 Incremental cost increase of OTSG vs. HRSG Catalyst initial price -- value per OAQPS example Catalyst replacement price -- value per OAQPS example Expected lifetime of control system Chemical Engineering Plant Cost Index, 1998 annual Chemical Engineering Plant Cost Index, 2006 annual Chemical Engineering Plant Cost Index, 2008 (Dec 2008 preliminary) Molecular Weight of reagent (ammonia) Molecular Weight of NO2 Density of aqueous reagent solution, @ 60 °F Specific Volume of aqueous reagent solution, @ 60 °F Pressure drop, additional ductwork Pressure drop, SCR Reference 1, Pg 2-48 www.che.com www.che.com www.che.com Reference 1, Pg 2-39 Reference 1, Pg 2-39 Reference 1, Pg 2-40 Reference 1, Pg 2-40 Reference 1, Pg 2-46 Reference 1, Pg 2-46 Reference 11 g/mol g/mol 3 56.0 lbs/ft 3 7.48 gal/ft 2.50 in H20 0.85 in H20 CF TOTAL = CFPLANT * CFSCR = 0.9 Vol catalyst = 2.81 * Q B * [0.2869 + (1.058 * η NOX )] * [1.2835 - (0.0567 * Slip )] Reference 1, Eqn 2.6 Reference 1, Eqn 2.19, 2.20, 2.21, 2.22, 2.23, 2.24 * [0.08524 + (0.3208 * NO XIN )] * [0.9636 + (0.0455 * S )] * [15.16 - (0.03937 * T) + (2.74E-05 * T ^2)] 3 = 139 ft (Catalyst volume) A catalyst = q fluegas / 960 = 2 606 ft Reference 1, Eqn 2.25 (Catalyst area) Reference 1, Eqn 2.26 (SCR area) Reference 1, Eqn 2.28 (Number of catalyst layers) Reference 1, Eqn 2.29 (Height of each layer) Reference 1, Eqn 2.30 (Total number of layers) Reference 1, Eqn 2.31 (Height of SCR) Reference 1, Eqn 2.32, 2.33 A SCR = 1.15*A catalyst = 2 697 ft n LAYER = Volcatalyst/ (3.1 * A catalyst ) = 1 h layer = [Volcatalyst / (nlayer * Acatalyst)] + 1 = 1.23 ft n total = n layer + n empty = 2 h SCR = n total * (7 + h layer ) + 9 = 25.5 ft m sol = [(NO X,IN * Q B * ASR * η NOx * (M reagent / M NOx )] / C SOL ) = 95.95 lb/hr (Mass flow rate of aqueous ammonia) q sol = m sol * ρ sol / v sol = 12.82 gal/hr Tank Volume = q sol * 14 * 24 = 4307 gal Direct Capital Costs f (h SCR ) = ($6.12/ft * h SCR ) - $187.9 = -32.10 $/(MMBtu/hr) f (NH 3 rate ) = [($411/(lb/hr)) * (msol / QB)] - $47.3 = 41.08 $/(MMBtu/hr) f (new) = f (bypass ) = -728 $/(MMBtu/hr) 127 $/(MMBtu/hr) Reference 1, Eqn 2.34 (Volume flow rate of aqueous ammonia) Reference 1, Eqn 2.35 (Ammonia tank volume assuming 14 day capacity) Reference 1, Eqn 2.37 (Adjustment factor, SCR height) Reference 1, Eqn 2.38 Adjustment factor, ammonia mass flow rate Adjustment factor, new installation Adjustment factor, SCR bypass system Reference 1, Eqn 2.40 Reference 1, Eqn 2.41 Reference 1, Eqn 2.43 Adjustment factor, catalyst volume Direct capital cost (1998 $) f (Vol catalyst ) = (Vol catalyst ) * CC new = $164,235 DCC = Indirect Capital Costs IIC = DCC * (0.05 + 0.10 + 0.05) = $191,900 CONT = (DCC + IIC ) * 0.15 = $172,700 TPC = DCC + IIC + CONT = $1,323,900 PPC = TPC * 0.02 = $26,500 IC = TankVolume * Cost NH3 = $7,100 Total Capital Investment TCI = TPC + PPC + IC = $1,357,500 Direct Annual Costs AMC = 0.015 * TCI = $20,360 ARC = m sol * Cost NH3 * CF TOTAL * 8760 = $166,600 /yr PWR = 318 kW $959,347 Reference 1, Table 2.5 Indirect installation cost for General Facilities, Engineering and Home Office Fees, Process Contingency (1998 $) Reference 1, Table 2.5 Contingency cost (1998 $) Reference 1, Table 2.5 Total plant cost (1998 $) Reference 1, Table 2.5 Preproduction cost (1998 $) Reference 1, Table 2.5 Inventory capital cost (1998 $) Reference 1, Table 2.5 Total capital investment (1998 $) Reference 1, Eqn 2.46 Annual Maintenance Cost (1998 $) Reference 1, Eqn 2.47 Reagent consumption cost (1998 $) Power usage rate Reference 6 PC = PWR * CF TOTAL * 8760 * COST ELEC = $125,200 /yr = $118,947 /yr = $84,482 /yr PC = $209,682 /yr Reference 1, Eqn 2.49 Cost of electricity (1998 $) Cost of natural gas (2009 $), due to add'l back-pressure of simple cycle control system Reference 8 Cost of natural gas (1998 $) Total Cost of Fuels (1998 $) Y = 3.0 yr Future worth factor years, catalyst guaranteed 3-yr life Reference 1, Eqn 2.52 Future worth factor Reference 1, Eqn 2.50, 2.51 FWF = i * 1 / [ (1 + i )^(Y ) - 1] = 0.30 ACRC = FWF * Vol catalyst * CC replace / n LAYER = $49,600 /yr Annual catalyst replacement cost (1998 $) DAC = MC + RC + PC + ACRC = $361,760 /yr Indirect Annual Costs CRF = i / (1 - (1 + i) -n) = 0.117 IDAC = CRF * TCI = $159,500 /yr Total Annual Costs TAC = DAC + IDAC = $521,260 /yr Reference 1, Eqn 2.45 Direct annual costs (1998 $) Reference 1, Eqn 2.55 Capital recovery factor Indirect annual costs (1998 $) Reference 1, Eqn 2.54 Reference 1, Eqn 2.56 Total annual cost (1998 $/yr) Cost Effectiveness NO X Removed = NO X,IN * Q B * 8760 * CF TOTAL * η NOX / 2000 = 185 tons/yr NOx removed (tons/yr) CE = TAC / NO X Removed = $2,820 /ton IACE = CE * (CEPCI08 / CEPCI98) = $3,970 /ton Reference 1, Eqn 2.57 Reference 1, Eqn 2.58 Cost per ton of NOx removed (1998 $) Inflation adjusted cost per ton of NOx removed (Sept-2008 $) References 1. EPA/452/B-02-001, Sixth Edition, Section 4.2, Ch 2 2. "PTE Emissions Summary - V3.xls" from Bison Engineering 3. "EmissionsINFO-Rev3.xls" from Stanley Consultants 4. "LM6000PF Max Emissions.xls" from Stanley Consultants 5. Vendor Quote, Vogt Power International 6. Vendor Quote, Braden Manufacturing 7. Vendor Quote, Turner Envirologic 8. Data from Stanley Consultants 9. AP-42 Table 1.4-1 10. Terra Industries, Inc. representative via 1/4/08 telephone call. 11. Data from Stanley Consultants for similar project S con = Ts = Ts = Ps = R= M NG = CF gr-lb = 0.5 68 528 1 0.7302 16 gr/100 scf °F R atm (ft3 * atm)/(lb-mol *R) lb/lb-mol sulfur content of pipeline quality natural gas Standard temperature Standard temperature Standard pressure Ideal gas law constant Ammonia molecular weight Conversion factor 7000 gr/lb n NG = Ps * Vol / (R * Ts) = 0.259 wt CH4 = nCH4 * MCH4 = 4.144 S = Scon / wtNH3 / CFgr-lb = 1.724E-05 (moles CH4 in 100 scf) (wt of CH4 in 100 scf, lb) (fuel S concentration, weight fraction) As defined in CFR (acid rain) Standard engineering calculation Standard engineering calculation

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