United States
 Environmental Protection
 Agency
 Industrial Environmental Resea
 Laboratory
 Research Triangle Park NC 2771
 Research and Development
 EPA-600/S7-82-057b Mar. 1983
 Project  Summary
 Hitachi  Zosen  NOX Flue  Gas
 Treatment  Process:
 Volume 2.   Independent
 Evaluation
 J. M. Burke
  Nitrogen oxide (NOX) emissions
from stationary sources  may be
reduced  by 80  -  90% by  applying
selective catalytic reduction (SCR) of
NOX with ammonia. In the interest of
furthering the development of this
technology, EPA sponsored pilot scale
tests of two SCR processes treating
flue gas  slipstreams from coal-fired
boilers. One of the processes was the
Hitachi Zosen  (HZ) process. An inde-
pendent  evaluation of the pilot plant
tests of the HZ process shows that the
process  can reduce NO« emissions
from a coal-fired boiler by 90%. Initial
tests resulted in plugging of the
catalyst. But  a  new catalyst with
larger gas passages was tested: it
operated for 5500 hours without any
signs of plugging. An energy analysis
indicates that the HZ process energy
requirements equal 0.3% of the
boiler's capacity. Process costs were
estimated based  on the pilot plant
test results. Estimated capital invest-
ment and annual revenue  require-
ments for the HZ process are $44/kW
and 2.91 mills/kWh, respectively.
These costs are slightly lower than
previous  estimates for the process.
  This Project Summary was devel-
oped by EPA's  Industrial Environ-
mental Research Laboratory, Research
Triangle Park,  NC, to announce key
findings of the research project that is
fully documented in a separate report
of the same title (see Project Report
ordering information at back).

Introduction
  Selective catalytic reduction (SCR) of
NOX with NH3can reduce NOx emissions
by 80% or more. As such, SCR repre-
sents the most effective process avail-
able for controlling stationary source
NO, emissions. For a utility application
of SCR, a catalytic reactor is located
between the economizer and air pre-
heater sections of the boiler. At this
location the flue gas temperature is 300
- 400°C (570-750°F), which is optimum
for the catalytic  activity. Ammonia is
injected into the  flue gas upstream of
the catalyst and reacts with NOx on the
catalyst surface to form elemental
nitrogen and water.
  Most SCR processes were developed
and are being operated commercially in
Japan, primarily  on gas- and oil-fired
sources. However,  in the U.S., SCR
systems are now being installed on a
limited basis. The most notable applica-
tion is a demonstration system that is
being constructed to treat half of the
flue gas  from Southern California
Edison's 215 MWe Huntington  Beach
Unit No. 2 (an oil-fired boiler). Operation
of this system is  expected to establish

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SCR as a commercially available tech-
nology for oil- and gas-fired sources in
the U.S.
  In Japan, development efforts are
currently aimed at applying SCR to coal-
fired sources. To date, most of the SCR
process vendors in Japan have operated
pilot units  on slipstreams  from coal-
fired boilers. In addition, there are now
four full-scale SCR  systems treating
flue gas from coal-fired boilers; eight
other units are scheduled for start-up in
1982 and  1983. These  development
efforts are rapidly establishing SCR as
commercially available for  controlling
NO* emissions from coal-fired sources
in Japan.
  The transfer of SCR technology from
Japan to the U.S. for coal-fired applica-
tions presents a  potentially significant
problem. Since most coal-fired boilers
in the U.S.  operate  electrostatic pre-
cipitators (ESPs)  downstream of the air
preheater,  a typical SCR application
would expose the catalyst in the reactor
to the full particulate concentration
from the boiler.  Although  tests have
been conducted  in Japan in which the
catalyst was exposed to high particulate
concentrations with no adverse effects,
the differences in the composition of
particulates  from U.S. and Japanese
coals could impact SCR operation.
  To further the development of SCR
technology  and to  determine  how
differences between Japanese and U.S.
coal/particulate  properties  impact the
performance of  SCR  processes, EPA
sponsored pilot scale (0.5 MW equiva-
lent) tests of two SCR systems. One of
the SCR systems  was the Hitachi Zosen
(HZ) process. The HZ pilot plant pro-
cessed a flue gas slipstream from a coal-
fired boiler. The contractor responsible
for the design and operation of the pilot
plant was Chemico Air Pollution Control
Corp. (now  General  Electric Environ-
mental Services Corp.),  the North
American licensee for the HZ process.
Chemico was also responsible for
collection, evaluation, and reporting of
the test data.
  Primary objectives  of the pilot plant
test program sponsored by EPA were:
(1) to demonstrate the ability of the HZ
process to achieve a 90% reduction in
NOx emissions, and (2) to determine the
long-term impacts on catalyst perform-
ance which result from processing flue
gas from a coal-fired utility boiler.
  In conjunction with the pilot plant test
program, EPA contracted with Radian
Corp. to independently evaluate the
processes tested based  on the pilot
plant results. This document summa-
rizes  the  results of the independent
evaluation of the HZ process. It includes
a discussion of the results of  tests
conducted by both Chemico and Radian
and the results of Radian's independent
evaluation of the HZ process. A separate
report (Volume  I) covering  the detailed
results of the pilot  plant test program
has been prepared by HZ.

Program Objectives and
Approach
  The independent evaluation of the HZ
pilot plant test  program conducted by
Radian Corp. had three major objectives:
(1) to provide independent validation of
the process measurements  made by
Chemico; (2) to quantify changes in the
emission rates of secondary pollutants
(pollutants other than NOX) across the
pilot plant reactor; and (3) to complete a
technical and economic evaluation of
the HZ process  including identification
of areas which require further develop-
ment or investigation.
  To validate the measurements made by
Chemico, a quality assurance program
was implemented.  This  program  used
EPA  reference methods and  other
standard measurement  techniques to
make independent audits of critical
process parameters; e.g., flue gas flow-
rate and NH3 injection rate. In conjunc-
tion with the quality assurance program,
the  continuous NOX monitors  were
subjected to certification tests designed
to determine their ability  to  make
accurate repeatable measurements.
These certification tests included
measurement of the continuous moni-
tors  relative to  accuracy, drift, calibra-
tion error, and response  time.
  Concurrent with  the  quality assur-
ance program, a stack sampling program
was conducted  to measure changes in
secondary process emissions across the
SCR  reactor. This  approach  required
simultaneous sampling  of the reactor
inlet  and outlet for\the species of
interest. The samples were then ana-
lyzed and differences between inlet and
outlet concentrations determined.
  Based on the results  of the quality
assurance program, the stack sampling
program, and the test data collected by
Chemico, an  evaluation of the HZ
process was completed. This evaluation
consisted of several steps. First, the test
data were analyzed and reduced to a
form  which could be used to predict
process performance for a specified set
of operating conditions. Then, using the
reduced test data and the results of the
stack sampling program, material and
energy balance calculations were
completed  for a 500 MWe coal-fired
application of the HZ process. The basis
for these calculations was identical to
that  used  by TVA in developing  cost
estimates for the HZ process  and
presented  in "Preliminary Economic
Analysis of NOX Flue  Gas Treatment
Processes."' The results of the material
and  energy balance calculations were
then  used to develop a modified  esti-
mate of total capital investment and
annual revenue requirements for a 500
MW  coal-fired application  of  the HZ
process. Finally, the test data were re-
viewed  and areas requiring further in-
vestigation/quantification were identi-
fied.

Results
  Several  areas which influence the
technical andeconomicfeasibrlityof the
HZ process were examined as part of
this study:
  •  Pilot plant test results.
  •  Results  of Radian's independent
     tests.
  •  Results of a 500 MW conceptual
     design of the HZ process.
  •  Material balance calculations for a
     500 MW process application.
  •  Energy balance calculation for a
     500 MW process application.
  •  Estimated capital investment and
     annual revenue requirements for a
     500 MW HZ process application.
The  following discussion summarizes
the results of the evaluation of each of
these areas. Overall conclusions on the
technical and economic feasibility of ap-
plying the  HZ process to a coal-fired
boiler are presented later.

Pilot Plant Test Results
  The test program at the HZ pilot plant
was initiated in June  1979, and was
completed in January 1981. During this
period, the pilot plant processed a flue
gas  slipstream from  between the
economizer and the air preheater of the
coal-fired Unit 3 at Georgia Power Co.'s
Plant Mitchell Station.  Design flue gas
flowrate to the pilot unit  was 1700
NmVhr (1060 scfm), and flue gas was
processed for about 10,000 hours.
  The pilot plant test program involved
examination of three charges of catalyst
material under a variety of test condi-
tions. In  general,  these tests were
divided into two categories: optimiza-
tion  tests and demonstration or long-
term tests. The objective of the optimiza-
tion tests  was  to identify  operating

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conditions which would reduce NOx
emissions by 90% at a minimum cost for
operating  the process.  The major
objective of the demonstration tests
was to document the ability of  the
process to achieve a 90% reduction in
NOX emissions for 90 days.
  The objectives of the pilot plant tests
conducted by Chemico were exceeded.
The NOx reduction efficiency of the plant
averaged over 90% during the 90 day
demonstration test;  the average was
89.8% over 5 months of operation. This
included several test periods during
which the NHa/NOx ratio was varied to
determine its effect on NOx reduction
efficiency. If these test periods  are
excluded from the averages, the NOx
reduction efficiency during the  5
months of operation would be greater
than 90%.
  Other significant results  of the  test
program showed that neither tempera-
ture nor flowrate has any significant
effect on NOX reduction  efficiency
within a range about  the design level.
These  results  indicate that process
performance should not be impaired at
boiler loads below the design level. As a
result, no temperature or flow control
would  be  required for  a full-scale
application of the HZ process.
  During the test  program, three
catalyst charges were examined: two of
these (NOXNON 500) experienced
severe  plugging problems after about
2000 hours of operation. When replaced
with the NOXNON 600 catalyst, which
has  larger gas passages,  no further
plugging problems were observed. The
original plugging was believed to be due
to the adhesiveness of the fly ash. At
high temperatures,  fly ash samples
collected from the power  plant  were
found to agglomerate.
  Tests with  the NOXNON 500 catalyst
did  not last long enough to get a good
measure of catalyst activity, but results
of the  NOXNON 600  tests showed a
gradual decline in catalyst activity with
time. After 5500 hours of operation,
activity of the  NOXNON 600  had
dropped slightly, but it was still possible
to achieve 90% NO* reduction. Since
5500 hours is nearly 1 year of operation
(—7000  hours), a catalyst life of 1 year
seems reasonable, based on test results.
In fact,  catalyst life  may be extended
well beyo'nd 1 year based on the results
of the in-situ regeneration test conducted
at the conclusion of the test program.
These tests showed that catalyst activity
had been restored to the level of
essentially new catalyst. Unfortunately,
 since the regeneration test was con-
 ducted during the final week of the test
 program,  it  is uncertain how long the
 effects of regeneration would last.
   Overall, the results of the pilot plant
 tests indicate that application of the HZ
 process to a coal-fired boiler is  tech-
 nically feasible. The tests demonstrated
 the ability of the process to achieve 90%
 NOX reduction for over 90 days and also
 demonstrated a stable catalyst life of
 nearly 1 year.

 Independent Evaluation Test
 Program Results
   The independent evaluation test
 program conducted by Radian had two
 primary objectives: to ensure thequality
 of the data collected at the HZ pilot plant
 and to quantify changes in the concentra-
 tions of certain  pollutants  across the HZ
 reactor. Data quality was determined by
 quality assurance  (QA) audits and
 continuous monitor certification tests;
 changes  in pollutant concentrations
 were determined by a secondary emis-
 sions sampling  program. The results of
 each element of the  independent
 evaluation program  are  summarized
 below.

 Quality Assurance Audits
   The QA audits conducted by Radian
 were designed to  ensure that the
 process  data which are required to
 characterize the operation of the  HZ
 pilot plant were accurate. Radian  used
 reference methods for auditing process
 operating parameters  which  were
 measured on a continuous or routine
 basis by Chemico. One exception to this
 was the measurement of NH3emissions
 which were  not routinely  monitored by
 Chemico,  although the original design
 of the pilot  unit included an analyzer
 intended to determine NH3 emissions.
   The  results  of the NH3 emissions
 sampling conducted by  Radian  indi-
 cated an average NH3 concentration at
 the reactor outlet of about 50 ppm u nder
 operating conditions which result in
 90% NOx reduction. The NH3 concentra-
tion at the reactor outlet was much
higher than expected (previous work in
Japan indicated NH3 concentrations of
about 10 ppm). The relatively high NH3
concentrations are expected to have an
impact on  equipment downstream of
the catalytic reactor for a commercial
application of  the  HZ process. This is
discussed in more detail later.
  The  results  of  the QA audits con-
ducted by  Radian  are  summarized in
Table  1. As shown, all  but  the SOz
concentration measurements were
within 10% of the values recorded by
Chemico. This  indicates that, except for
the  S02  monitor,  the process data
collected by Chemico accurately charac-
terize the operation of the HZ pilot plant.
  In the case of the flue gas SOz con-
centration at the HZ pilot plant, the audit
results were determined to be correct,
and the SOa monitor was in error. This
error is characteristic of the type of SOa
monitor used  (pulsed fluorescence)
when the instrument is calibrated with
standard  gases composed of SOz  in
nitrogen.

Secondary Emissions Sampling
  The  secondary  emissions sampling
program  was  conducted by Radian
during July and August 1980, concur-
rent with the demonstration test con-
ducted by Chemico. The objective was to
quantify changes in the emission rates
of pollutants other than NOX. For the
most part, these tests were conducted
during tests in  which steady state NOx
reduction efficiency was maintained at
90%.
  Table 2 summarizes the results of the
secondary emissions sampling program
at the HZ pilot  plant.  As  shown,
concentrations of hydrocarbons, CO,
hydrogen cyanide  (HCN),  and  nitroso-
amines at the reactor outlet were below
the detection limits of the analytical
techniques employed. For hydrocarbons
and CO, no conclusions can be drawn
concerning the impacts of  the HZ
process. For HCN, the analytical detec-
tion limit is equivalent to 10 ppbv and for
Table 1.    Results of QA Audits at the Hitachi Zosen Pilot Plant

    Measurement Audited                                  Relative Error*, %
SOz Concentration
Flue Gas Flowrate
NH3 Injection Rate
Reactor Pressure Drop
Reactor Temperature
a/?/>/af/w> Frmr - Monitor Reading- AuditMeasurement mn%
Audit Measurement
-19.8
- 0.3
- 6.0.
4.5
4.8


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N-Nitrosodimethylamine,  2 ppbv. In
both cases, these concentrations are at
levels which are  considered  safe  for
emission sources.
  Table 2 shows  an increase in 80s
concentration across the  HZ reactor.
This is due to oxidation of SOz in the
reactor and was not unexpected since
the catalyst contains vanadium pent-
oxide which  is the catalyst  used in
manufacturing sulfuric acid.  The ap-
parent change in paniculate concentra-
tion shown in Table 2 is believed to be
due to unaccounted for stratification in
the ducts. Note  that  no  results for
nitrous oxide (N20) are presented. This
is  due to the fact that the analytical
technique used to measure N20 was
unsatisfactory for  use in  a flue  gas
stream.
  In  addition to measuring the con-
centration of particu lates in the flue gas,
an elemental analysis  of the particu-
lates was completed in an attempt to de-
termine if erosion of the catalyst has a
measurable effect on the concentration
of vanadium (V) and titanium (Ti) in the
participates. Table 3 gives results of the
elemental analysis of  the  particu lates
collected  at  the  HZ  pilot plant.  As
shown, an apparent increase in all ele-
ments occurs across the reactor, but the
relative concentrations  on V and Ti  re-
main constant. This indicates that there
is no measurable change in the concen-
tration of V or  Ti in the  particulates
exiting the reactor.

Continuous Monitor
Certification Tests
  Certification tests were conducted for
the SC>2 and NOX monitors  used to
measure  flue gas concentrations of
pollutants at the inlet and outlet of the
reactor. These tests were included in
the independent evaluation program to
ensure the  quality of  the  pilot plant
performance  data being  collected  by
Chemico. Certification of continuous
emission  monitors involves a formal
procedure, developed by EPA to ensure
the accuracy of  monitors  measuring
emissions from  sources  which must
comply with new source performance
standard  emission limitations. For a
continuous emission monitor  (CEM) to
be certified, it must be subjected to and
pass  a number of performance tests,
including:

   • Calibration error.
   • Response time.
   • Drift.
   • Relative accuracy.
 Table 2.    Stack Sampling Results at HZ Pilot Unit
Flue Gas
Component
Nitrosoamines
(/jg/dscmb)
Hydrogen Cyanide
(mg/dscm)
Ammonia
(ppmv-dry basis)
Sulfur Trioxide
(ppmv-dry basis)
Hydrocarbons* (C, -Ce)
fppmvj
Carbon Monoxide0
Paniculate Loading
Reactor Inlet
Concentration3
5
0.01
Not measured
8.4
1.0
0.017
7.1
Reactor Outlet
Concentration3
5
0.01
54.8
20.7
1.0
O.017
7.7
(g/dscm)

Nitrous Oxide
aAverage of three or more tests.
hdscm - dry standard cubic meter.
c Below the detection limit.
Table 3.    Results of Paniculate Analysis at the HZ Pilot Plant3
 Component
In
Out
" Concentrations are on a mass fraction basis.
Out/In
Al
Ca
Fe
K
Mg
Mn
Sn
Na
Si
Zn
Cu
Ti
V
10.7%
8200 ppm
4.9%
2.0%
6300 ppm
190 ppm
490 ppm
4200 ppm
18%
190 ppm
150 ppm
5800 ppm
270 ppm
13.0%
9900 ppm
6.0%
2.5%
7800 ppm
240 ppm
680 ppm
4700 ppm
23%
25O ppm
1 70 ppm
6900 ppm
330 ppm
1.21
1.21
1.22
1.25
1.24
1.26
1.40
1.12
1.28
1.32
1.13
1.19
1.22
The performance specifications for each
of the above certification tests  are
shown in Table 4, along with results of
the tests. The performance specifica-
tions are those contained in the Federal
Register, Vol. 44, No. 197, Wednesday,
October 10, 1979 - "Proposed Rules:
Standards of Performance for New
Stationary Sources; Continuous Monitor-
ing Performance Specifications".2
  As shown in Table 4, the test results
for both the NOX  continuous monitors
met the performances specifications.
These data indicate that continuous
monitors were making accurate measure-
ments of flue gas NOX concentrations.
               Results of the Conceptual
               Design of a 500 MW HZ
               Process
                 A conceptual design of a 500 MW HZ
               process was prepared based on the pilot
               plant test results. This  conceptual
               design served as a basis for material and
               energy balance calculations and for a
               cost estimate for a 500 MW application
               of the HZ process.
                 Table 5 summarizes the results of the
               conceptual design  for a 500 MW ap-
               plication  of  an HZ process. As shown,
               the key  design variable  levels are

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Table 4.    Continuous Monitor Certification Test Results at the HZ Pilot Plant
    Certification
        Test
Performance
Specification
Inlet /VOx
Monitor
Outlet  /VOx
  Monitor
Calibration Error
-high level, %
-mid level. %
Response Time, min
Zero Drift (2-hour), %
Calibration Drift
  (2-hour), %
Relative Accuracy, %
    <5
    <5
    <2
    <2

   <20a
   1.40
   4.39
   1.4
   1.20
   1.93

  14.1
    4.70
    2.68
    1.6
    0.05
    1.78

   10.5
aAlternatively, <10 % of the applicable emissions standard.

Table 5.    Results of the Conceptual Design for a 500 MW Hitachi Zosen Process
          Design Parameter
                           Design Level
 Reactor Design Parameter
    Number of Reactors
    Reactor Cross Section, m2
    Catalyst Volume per Reactor, m3
    Reactor System Pressure Drop, kPa
    Soot Blowers per Reactor
    Soot Blowing Frequency

 / ir Preheater Design Parameters
    Soot Blowers per Preheater
    Soot Blowing Frequency
    Element Configuration

    Element Construction
                               2
                              96.5
                             205
                               1.28
                               4
                             3/day
                               6
                              6/day
              Combined Intermediate and Low
              Temperature Zone
              Corrosion Resistant Material
              in Intermediate and Low Temperature
              Zone
presented for the SCR reactor and the
downstream air preheater.
  The  conceptual design of the HZ
process  was  prepared for  a single
application of the process; it was based
solely on the  pilot plant test results.
Results of this  design indicate that NOX
emission can be reduced by 90%, using
the HZ process. In fact, 90% NOX reduc-
tion was  possible at space  velocities
greater than  previous estimates in-
dicated (i.e., at a relatively lower catalyst
volume per  unit  volume of flue gas
treated).  However, the greater  space
velocities were accompanied by NH3
emissions which were much  higher
than previous estimates.
  One result of the high NH3 emissions
estimated for  the conceptual design
was that special modifications to the air
preheater are required to  mitigate
problems associated with the formation
of ammonium  sulfates downstream of
the reactor. These modifications  were
identified as part of a prior study3; they
are based on Japanese experience with
air preheater operations downstream of
an SCR system. Note that modifications
specified  for the  air preheater  were
              expected to minimize problems at
              relatively low NH3 and SOs concentra-
              tions at the reactor exit. Concentrations
              at the reactor outlet for the conceptual
              design are  much  higher  than antic-
              ipated in previous studies of SCR
              technology; this could result in opera-
              tional problems which cannot be mini-
              mized  by  the preheater modifications
              included in the conceptual  design. This
              represents  an  area which  requires
              further investigation.
                Reactor  pressure drop and other
              design parameters are fairly consistent
              with previous estimates for  the process.
              The design results also show that the
              process can operate over  a range of
              temperatures (340 -. 410°C) and space
              velocities (6,500 - 8,900 hr"1) without
              any significant effect on NOx reduction
              efficiency. This indicates  the process
              has good  flexibility  in processing flue
              gas under conditions of changing boiler
              load.
                In summary,  the  conceptual design
              indicates that the  HZ process can
              reduce NOx emissions by 90%. This NOx
              reduction efficiency can be achieved at
              a lower catalyst volume per unit of flue
gas treated than previous estimates
indicated. However, the lower catalyst
volume of the conceptual design  is
accompanied by a significantly higher
NH3 emission rate which can result  in
severe operational problems in down-
stream equipment, particularly the air
preheater. Further work is required  to
determine if the effects of these  NH3
emissions can be  offset by the air
preheater modifications included in the
conceptual design.

Results of Material Balance
Calculations for a 500 MW
HZ Process
  Material balance  calculations for  a
500 MW application of the HZ process
were  included as part of this study to
identify raw material requirements for
the process and to serve as a basis for an
estimate of capital  investment  and
annual revenue  requirements. The
material balance was based on the pilot
plant  and secondary emissions sam-
pling test results and thus reflects those
results in the estimated raw material
requirements.  The most significant
results of the material balance calcula-
tions include estimation of NH3 require-
ments for NO, reduction, NH3 and  SOs
emissions from  the process, and steam
requirements for air preheater  soot
blowing.
  The NH3 requirements for the process
were  estimated to be 1.0 mole of  NH3
per mole  of NOX in the flue gas entering
the reactor. This requirement was esti-
mated based on the results of approxi-
mately 6 months of pilot plant operation.
During the 6  months, the NH3/NOX
injection  ratio averaged 0.98, and the
NOx  reduction efficiency averaged
89.8%. With an  NH3/NOX injection ratio
of 1.0, estimated NH3 requirements for
the process decreased about 1O% for
previous estimates.
  Estimates of NH3 and SO3 emissions
from the  HZ process were significantly
higher than  previous  estimates in-
dicated.  As discussed earlier,  this
results in the requirements for air pre-
heater modifications and additional soot
blowing. The requirement for additional
soot  blowing results in  a  sevenfold
increase  in HZ process steam require-
ments. This is not very significant from a
material  balance standpoint, but it is
important in terms  of  its effect on
process energy requirements. Note that
HZ claims that  the NH3 emission  and
S02 oxidation rates can be reducedwith
no decrease in process performance by
adjusting the composition of the cata-

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lyst. However,  since  this was not
demonstrated during the pilot plant
tests, it was not considered in preparing
the material balances or the conceptual
design.
  In summary, the material balance
calculations  showed no significant
change  in raw material requirements
for the HZ process. The most important
result was the estimated NH3 and SO3
emission rates which were significantly
higher than  previous  estimates  in-
dicated.

Results of Energy Balance
Calculations for a 500 MW
HZ Process
  An energy balance was completed as
part of the evaluation of the HZ process.
This energy balance defined overall
process  energy  requirements and
quantified the heat credits associated
with the process.  The  results  of the
analysis of energy requirements in-
dicated that the HZ process has a  net
energy consumption equivalent to
about 0.3% of the  energy input to the
boiler.
  The  individual components  of the
overall process energy requirements
are  summarized  in Table  6.  Each
component has been put on the basis of
heat input to the boiler. For steam, a
thermal efficiency of 88% was used to
determine the energy input required to
generate one Gcal of steam energy. For
electricity, a  boiler heat  rate of 2.27
Mcal/kWh was used. The heat credit
was assumed to replace heat input to
the boiler on a 1-to-1 basis.

Results  of  the Cost Estimate
for a  500 MW HZ Process
Application
  An estimate of total capital investment
and annual revenue requirements for a
500 MW application of the HZ process
was prepared  as part of this evaluation.
The estimated costs reflect the  results
of the pilot plant tests. When compared
with the previous estimate prepared by
TVA,  the modified cost estimates
indicate the magnitude of the impact the
pilot plant  results had on  estimated
process costs. In addition, comparison
of the modified cost estimate with cost
estimates for other SCR processes
indicates the  cost effectiveness of the
HZ process as tested in the pilot plant
program.

Results of Capital Cost Estimate
  Table 7 gives the individual compo-
nents of and the estimated total  capital
investment for a 500 MW application of
the HZ process. The total capital invest-
ment was estimated to  be approxi-
mately $22.1  x 106 which is equivalent
to approximately $44/kW of generating
capacity. When compared to TVA's pre-
vious estimate, this represents a slight
decrease.
                                       The principal difference between thi
                                      two estimates is the estimated catalys
                                      volume.  The required catalyst volurm
                                      based on  the pilot plant tests  wai
                                      estimated to be about 20% less, thereby
                                      decreasing the total capital investment
                                      However, the decrease in costs frort
                                      reduced  catalyst volume requirement!
Table 6.
         Overall Energy Requirement for a 500 MW Application of the HZ Process

                        Energy Requirement              Percent of Boiler
Energy Area                   Gcal/hr                       Capacity
  Heat Credit
  Steam
  Electricity
  Total
                               (3.15)
                               3.36
                               3.50
                               3.71
(0.28)
 0.30
 0.31
 0.33
Table 7.    Estimated Capital Investment for a 500 MW Application of the Hitachi
           Zosen Process*
Direct Investment*
NHa storage and injection
Reactor section
Gas handling
Air pre heater modifications
Sub-total direct investment (Dl)
Services, utilities (0.06 x Dl)
Total direct investment (TDI)
Indirect Investment
Engineering design and supervision
Architect and engineering contractor
Construction expense
= 0.25 (TDI x 70 "V83
Contractor fees = 0.096 (TDI x JO^f'76
Total indirect investment (IDI)
Contingency ~ 0.2. (TDI + IDI)
Total fixed investment (TFI)
Other Capital Charges
Allowance for start-up and modifications
= (0. 1) (TFI)
Interest during construction
- (0. 12) (TFI)
Total depreciable investment
Land
Working capital
Royalty fee
TOTAL CAPITAL INVESTMENT
Investment, $
645,000
8,632,000
351,000
1,461,000
1 1,089.000
665,000
11,754,000
274,000
69,000
1,933,000
625.000
2,9O1,OOO
2,931,000
17,586,000
1,759,000
2. 1 10,000
21,455,000
5,000
336,000
300,000
22,096,000
%of
Total Direct
Investment
5.5
73.4
3.0
12.4
94.3
5.7
100.00
2.3
0.6
16.4
5.3
24.6
24.9
149.5
15.0
17.9
182.4
2.9
2.6
187.9
"Basis: 500 MW new coal-fired power plant, 3.5% sulfur coal, 90% NO* removal.
 Midwest plant location. Represents project beginning mid-1977, ending mid-1980.
 Average basis for scaling, mid-1979. Investment requirements for fly ash disposal
 excluded. Construction labor shortages with overtime pay incentive not considered.
bEach item of direct investment includes total equipment costs plus installation labor,
 and material costs for electrical,  piping, ductwork,  foundations, structural,
 instrumentation, insulation, and site preparation.

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was somewhat offset by the costs of air
preheater modifications  required to
minimize ammonium sulfate deposition
problems.

Results of the Annual Revenue
Requirement Estimate
  Table 8 gives the individual compo-
nents and the total estimated average
annual revenue requirements for a 500
MW application of the HZ process. The
average  annual revenue  requirement
was estimated to be  approximately
$10.2x 106 which is equivalent to 2.91
mills/kWh. Compared to TVA's previous
estimate,  this represents a  17% de-
crease in the annual revenue require-
ments.
  As with capital costs, the principal
factor  which decreased  the annual
revenue  requirements is the lower
quantity  of  catalyst required  in the
reactor. Again, this reduction in annual
revenue requirements was somewhat
offset by the cost  of increased  air
preheater soot blowing.

Cost Comparison and Summary
  The capital investment and annual
revenue requirements of the HZ process
have been estimated  based  on the
results of the test conducted at the EPA-
sponsored pilot plant in Albany,  GA.
These  estimates indicate that the
capital  costs and  annual revenue
requirements are slightly lower than the
estimated costs prior to the test program.
A more important comparison, however,
is the cost of the HZ process relative to
the cost of other SCR processes.
                   Since the  same basis was used in
                 preparing the modified HZ cost estimate
                 and TVA's preliminary economic esti-
                 mates for other SCR processes, it is
                 possible to make a direct comparison
                 with the costs of the Shell flue gas
                 treating (SFGT) process which were
                 developed under the EPA pilot plant test
                 program. Table 9 gives the estimated
                 annual revenue requirements for two
                 pollution control systems which reduce
                 emissions of particulates, NO,,  and
                 S03 by 99.5,  90, and 90%, respectively.
                 As shown, the pollution control systems
                 include  flue  gas desulfurization capa-
                 bility and have downstream ESPs to put
                 the cost estimates on a common basis.
                   As shown  in Table 9, the estimated
                 costs associated with the HZ processes
                 are 30 percent lower than those of the
Table 8.    Estimated Average Annual Revenue Requirements for a 500 MW Application of the Hitachi Zosen Process*
Item
Direct Costs
Raw materials
Catalyst
Total raw materials
Conversion costs
Operating labor and supervision
Annual
Quantity
5.25 x 106 kg
8760
Unit
Cost, $
0.1 65 /kg
72.507
Annual
Cost, $
866,300
5,125,000
5,991.300
109.500
% of Annual
Revenue Requirec
8.47
50.14
58.61
1.07
  Utilities
    Steam
    Electricity
    Heat credit
  Maintenance =0.04 x TDI
  Analyses

    Total conversion costs
    Total direct costs
Indirect Costs
  Capital charges
    Depreciation - (0.06) (total
     depreciable investment)
    Average cost of capital = (0.086)
     (total capital investment)
  Overheads
    Plant = (0.5) (conversion costs
     minus utilities)
    Administrative = (0.1)
    (operating labor costs)

    Total indirect costs
    Spent catalyst disposal

    Total Annual Revenue Requirements
    labor hr


  20,700 Gcal
 10,787,000 kWh
  22,050 Gcal

     2,920
    labor hr
  labor hr


 7.94/Gcal
0.029/kWh
 -7.94/Gcal

  77.007
  labor hr
 164,400
 312,800
(175.100)
 470,200
  49,600

 931,400
6,922,700
                                        1,287,300

                                        1,900.300
                                         314,700
                                           11,000


                                        3,513,300
                                         (214,000)

                                       10.222.000
 1.61
 3.06
 (1-71)
 4.60
 0.48

 9.11
67.72
                                        12.59

                                        18.59
                                         3.08
                                         0.11


                                        34.37
                                        (2.09)

                                       100.00
aBasis: 500 MW new coal-fired power plant, 3.5% S coal. 90 percent NO* reduction, 90 percent SOi removal. Midwest power plant
      location. 1980 revenue requirements. Remaining life of power plant = 30 years. Plant on line 7000 hr/yr. Plant heat rate
      equals 9.5 Ml/kWh.  Investment and revenue requirement for disposal of fly ash excluded. Total direct  investment
      $11,754,000; total depreciable investment $21,455,OOO; and total capital investment $22.096,000.

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Tabled.    Estimated Annual Revenue Requirements for Two Pollution
           Control Systems*
SCR Process
                              Annual Revenue Requirements ($ x 106)
SCR
FGD
ESP
Overall
SFGT
Hitachi Zosen
33.6
10.2
14.7
3.0
2.2
 36.6
 27.1
"All costs except the HZ-SCR and the SFGT-SCR costs are from "Preliminary Economic
 Analysis of NO* Flue Gas Treatment Processes." Tennessee Valley Authority - Office
 of Power. EPA-600/7-80-021, February 1980.
SFGT process. These results indicate
that the HZ process, as tested in the pilot
plant and presented in the conceptual
design, is the most economical of the
two SCR processes tested in EPA's pilot
plant program within the constraints of
the conceptual  design used  in this
study.  Note that  the relative costs
presented in Table 9  are only valid for
one specific  application;  they could
change for other applications.
  Overall  the results  of the modified
cost estimate indicate that, for the
particular application examined in this
study, the HZ process is economically
competitive with other SCR processes.
This is based on a conceptual design
which was representative of operating
conditions demonstrated  during the
pilot plant tests. Note, however, that the
costs can be affected by the impacts of
high NH3 and S03 emissions whose
effects were not examined during the
pilot plant tests.  Additionally, the esti-
mates presented  in this evaluation were
based on a 1-year catalyst life which
was not  demonstrated. But, HZ will
guarantee a 1 -year catalyst life for coal-
fired applications.

Conclusions
  The following conclusions  are based
on  the work  performed during this
study. For the most part, the information
obtained during the course of the study
is summarized  in the full report and
serves as backgroundforthe conclusions
presented here. The major conclusions
of this Study are:
  • The  HZ process  can  reduce NOX
    emissions by 90% when applied to
    a coal-fired boiler. This level of
    emissions reduction was achieved
    over a 90-day period at an NH3/NOX
     injection  ratio of 1.0 and space
    velocities greater  than previous
    test work indicated. However, the
    excellent performance of this pilot
     plant was  accompanied  by NH3
     emissions which were much higher
     than previous estimates indicated.
                     The initial tests of the HZ process
                     experienced problems with catalyst
                     plugging which resulted in failure
                     of two charges of  NOXNON 500
                     series catalyst. These  problems
                     were eliminated by using NOXNON
                     600 series catalyst (a catalyst with
                     larger gas passages) and  com-
                     pressed air (as opposed to super-
                     heated steam) for reactor soot
                     blowing. It appears likely that the
                     good performance of the NOXNON
                     600 catalyst was due to the larger
                     gas passages since the fly ash has
                     a tendency to  agglomerate in dry
                     environments.
                     A gradual  decline  in  catalyst
                     activity was recorded during the
                     test program which resulted in the
                     requirement for increased  NH3/
                     NOx injection ratios to attain 90%
                     NO,  reduction. Because the test
                     program was terminated  after
                     5500  hours of operation, the
                     catalyst activity after  1 year  of
                     operation could not be determined.
                    > A novel, in situ catalyst regenera-
                     tion technique was tested as part
                     of the program. This test showed
                     that the regenerated catalyst had
                     activity similar to  fresh catalyst
                     and  thus  reversed some  of the
                     decline in activity observed during
                     the test  program.  Unfortunately,
                     the catalyst regeneration technique
                     was tested toward the end of the
                     pilot plant test program; so it is
                     uncertain  how long the effects of
                     the catalyst  regeneration will last.
                    > The  independent evaluation test
                     program  indicated that  emission
                     rates of most pollutants were not
                     affected by-the HZ process. How-
                     ever,  emission rates of both NH3
                     and S03 were relatively high and
                     can result in operational problems
                     in the downstream equipment. The
                     severity of  any problems  in this
                     regard is very site  specific and
                     could not be assessed as  part of
                     this study. This should, however.
     be given careful consideration in
     any planned applications of the HZ
     process.
  • The conceptual design and material
     balance calculations indicated high
     NH3 emission rates which will
     cause severe operational problems
     in the air preheater, downstream
     of the HZ process. The conceptual
     design included  air preheater
     modifications designed to minimize
     those problems. But because the
     estimated NHs and SOs emission
     rates are much higher  than pre-
     vious estimates, it is uncertain if
     the air preheater modifications will
     be adequate. Further investigation
     in this area is required.
  • The overall energy requirements
     for the HZ process were  estimated
     to be 0.3% of the boiler's capacity.
     This is a  very small fraction of
     boiler capacity and does not signifi-
     cantly affect process costs.
  • The estimated capital investment
     and annual revenue requirements
     for the HZ process were  slightly
     lower than TVA's  preliminary
     estimate. This indicates that the
     HZ process is economically  com-
     petitive with other SCR  processes
     when considered for application to
     a  coal-fired boiler. Note that the
     cost estimates assumed a 1-year
     catalyst life which was  not  dem-
     onstrated during  the pilot  plant
     tests, although it would be guar-
     anteed by HZ. The  relative process
     costs would change if  a 1-year
     catalyst life were not possible.
  In conclusion, the pilot plant  tests
indicate the HZ process is technically
suited for  application to coal-fired
sources.  However,  the tests  did not
demonstrate a 1 -year catalyst life which
is generally considered a  minimum for
technical feasibility of an SCR process.
In reality, a shorter catalyst  life would
translate into increased annual revenue
requirements. In terms of costs, under
the  conditions  of the cost  estimate
prepared as part of this study, the HZ
process is  economically competitive
with other SCR  processes.

References
  1.  Maxwell, J.D., et  al.  Preliminary
     Economic Analysis of  NOx Flue
     Gas Treatment  Processes.  EPA-
     600/7-80-021 (NTISPB 80-176456).
     February 1980.
  2.  Environmental Protection Agency.
     40 CFR Part 60. Standards of Per-
     formance for New Stationary

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Sources: Continuous Monitoring
Performance Specifications - Pro-
posed Revisions. Federal Register/
Vol.  44, No.  197/Wednesday,
October 10, 1979/Proposed Rules.
Burke, J.M. and K.L. Johnson. Am-
monium Sulfate and Bisulfate
Formation in Air Preheaters. EPA-
600/7-82-025a. April 1982.
J. M. Burke is with Radian Corporation, Austin. TX 78759.
J. David Mobley is the EPA Project Officer (see below).
The complete report, entitled "Hitachi Zosen /VOX Flue Gas Treatment Process:
  Volume2. Independent Evaluation," (Order No. PB 83-113 837; Cost: $19.OO,
  subject to change) will be available only from:
        National Technical Information Service
        5285 Port Royal Road
        Springfield, VA 22161
        Telephone: 703-487-4650
The EPA Project Officer can be contacted at:
        Industrial Environmental Research Laboratory
        U.S. Environmental Protection Agency
        Research Triangle Park, NC 27711
                                                                            U. S. GOVERNMENT PRINTING OFFICE: 1983/6551-095/589

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