United States      Industrial Environmental Research  EPA-600/7-79-026
Environmental Protection  Laboratory          January 1979
Agency        Research Triangle Park NC 27711
Typical Costs for Electric
Energy Generation and
Environmental Controls

Interagency
Energy/Environment
R&D  Program Report

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                  RESEARCH REPORTING SERIES


Research reports of the Office of Research and Development, U.S. Environmental
Protection Agency, have been grouped into nine series. These nine broad cate-
gories were established to facilitate further development and application of en-
vironmental technology. Elimination of traditional  grouping was  consciously
planned to foster technology transfer and a maximum interface in related fields.
The nine series are:

    1. Environmental Health Effects Research

    2. Environmental Protection Technology

    3. Ecological Research

    4. Environmental Monitoring

    5. Socioeconomic Environmental Studies

    6. Scientific and Technical Assessment Reports  (STAR)

    7. Interagency Energy-Environment Research and Development

    8. "Special" Reports

    9. Miscellaneous Reports

This report has been assigned to the INTERAGENCY ENERGY-ENVIRONMENT
RESEARCH AND DEVELOPMENT series. Reports in this series result from the
effort funded  under the  17-agency  Federal Energy/Environment Research and
Development Program. These studies relate to EPA's mission to protect the public
health and welfare from adverse effects of pollutants associated with energy sys-
tems. The goal of the Program is to assure the rapid development  of domestic
energy supplies in an environmentally-compatible manner by providing the nec-
essary environmental data and control technology. Investigations include analy-
ses of the  transport of energy-related pollutants and  their health and ecological
effects; assessments  of,  and development of, control technologies for  energy
systems; and integrated assessments of a wide'range of energy-related environ-
mental issues.
                        EPA REVIEW NOTICE
This report has been reviewed by the participating Federal Agencies, and approved
for  publication. Approval does not signify that, the contents necessarily reflect
the views and policies of the Government, nor does mention of trade names or
commercial products constitute endorsement or recommendation for use.

This document is available to the public through the National Technical Informa-
tion'Service, Springfield, Virginia 22161.

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                               EPA-600/7-79-026

                                    January 1979
Typical Costs for Electric
  Energy  Generation and
 Environmental Controls
                   by

                  M.G. Klett

              Gilbert Associates, Inc.
                P.O. Box 1498
             Reading, Pennsylvania 19603
              Contract No. 68-02-2605
                 Task No. 2
             Program Element No. EHE624
           EPA Project Officer: Vincent W. Uhl

         Industrial Environmental Research Laboratory
          Office of Energy, Minerals, and Industry
           Research Triangle Park, NC 27711
                 Prepared for

        U.S. ENVIRONMENTAL PROTECTION AGENCY
           Office of Research and Development
              Washington, DC 20460

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                          ABSTRACT
Capital and annualized cost data are presented in tabular
form for various conventional and advanced electric energy
generation systems.   The data are organized into three gen-
eral categories:

     1.  Cost of Base Generation System (not including
         fuel or environmental control)

     2.  Incremental Fuel Costs

     3.  Incremental Environmental Control Costs

Total costs can be computed for a particular configuration by
adding the appropriate incremental costs for fuel and environ-
mental control to the cost of the base generation system.  Costs
assigned to environmental central include systems for the control
of sulfur, particulates, NO , and thermal discharges.  Two examples
of the use of the data are included.  The accuracy of each esti-
mate is indicated by a range of uncertainty.  The cost figures
are intended to provide an overviev/ of environmental control
costs for various electric energy generation options.  Costs
for actual installations would depend a great deal on site
specific considerations.

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                      CONVERSION TABLE
EPA policy is to express all measurements in Agency documents
in metric units.  Implementing this practice results in
difficulty in clarity; therefore, conversion factors for non-
metric units used in this document are as follows:
            British                        Metric

          1 Btu/kWh                    1.055 kJ/kWh

          1 $/106 Btu                  0.948 $/106 kJ
                              -m-

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                      TABLE OF CONTENTS


                                                          Page

Abstract                                                   ii

Conversion Table                                          iii

Tables                                                      v

Acknowledgement                                            vi


                                                            1

                                                            3

                                                            6

                                                            9
                                                           10

4.0       Data Sources                                     17

   4.1    Base Generation Systems     /                     17
   4.2    Fuel                                             18
   4.3    Environmental Control Technology                 18


References                                                 20
1.0
2.0
3.0
3.1
3.2
Introduction
Methodology
Cost Tables
Example A .
Example B
                             - IV -

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                                TABLES
Number                                                           Page
  1        Typical  Electric Energy Generation Systems  Capital        8
          and Annualized Costs

  2        Escalation  Factors Used to Adjust all  Costs to          11
          Mid-1975 Price

  3        Range of Investment Estimates  for Base Load Fuel         12
          Conversion  Plants 1000 MWe - No Pollution Control
          Mid-1975 Dollars

  4        Range of Incremental Investment Estimates for            13
          Environmental  Control  Technology (1000 MWe  Size)

  5        Base Generation Systems Annualized Cost                 14

  6        Environmental  Control  Technology Annualized Costs        15
          for 1000 MWe Installations

  7        Fuel Costs  (Based on 10,000 Btu/kWh Heat Rate)           16
                                 -v-

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                        ACKNOWLEDGMENTS
The contribution of Mr. A.  W. Hawkins for his statistical
analysis of the ranges reported in Example A and B is
gratefully acknowledged.   The advice and counsel of the
EPA Project Officer, Dr.  Vincent Uhl, were invaluable in
the performance of this work.

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1.0   Introduction

      An electric utility today has several  options for electric energy
      generation, each of which requires a different mix of environmental  control
      technology.  The cost of environmental  control  will  vary markedly, depending
      upon the base generation system used and the availability of the energy source.
      This report consists of data in tabular form which can be used to compare incre-
      mental  environmental costs for each base generation  system option considered.  Base
      generation systems include both conventional and advanced electric energy
      generation options.  The cost figures  are intended to provide an overview of
      environmental control costs for various electric energy generation options.

      The data are organized into three general categories:

         1.   Cost of Base Generation System  (not including fuel or environmental
             control)
         2.   Incremental Fuel Costs
         3.   Incremental Environmental  Control  Costs

      Data are given  for generating stations  of 1000  and 500  MWe capacity.   The
      environmental control costs are based  on meeting present New Source  Perform-
      ance Standards.   '  With the cost organized in  these three categories,  total
      costs  can be computed for a particular  configuration by adding the appropriate
      incremental costs for fuel and environmental control technology to the  cost
      of the  base generation system.   Examples  are provided for specific kinds  of
      power  plant, fuel, and control  technology.
                                        -1-

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The primary sources for cost data are conceptual  design studies  sponsored
by EPRI, EPA, and DOE and the National  Science Foundation's  Energy Con-
version Alternatives Study (EGAS).   Other basic data came from a number
of individual manufacturers.  Specific data sources are given in
Section 4.0.

The cost of a designated system can vary widely because of many  factors.
Because of differing requirements that govern feedstock conditions,
efficiencies, and throughputs, comparison between specific systems is
not easy.  Differences in the stage of development of the various
electric energy generation options  make it difficult to precisely pre-
dict cost, operability and reliability.  Consistency is the  key, yet
this is difficult to achieve when estimates come from different  sources
(as in this study).  The procedure  described in Section 2.0  attempted
to put all costs on a consistent basis.  The accuracy, of course,
depends on the quality of the cost  data and on the judgment  used in
adjusting the cost data to a consistent basis.  The accuracy of  each
estimate was  considered separately, and indicated by the range of
uncertainty assigned to each.
                                  -2-

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2.0   Methodology





      Published data on the cost of base generating systems,  fuels,  and environ-



      mental control technology were compiled from conceptual  design studies



      performed under the auspices of EPRI,  EPA,  DOE and NSF.   Other data came



      from individual vendors.   Specific information sources  are given in



      Section 4.0.   The procedure used to make cost comparisons consistent for



      conceptual designs and costs from different sources is  similar to one used


                            (2)
      in a recent EPRI studyv  ' which identified  sulfur removal costs for various



      coal conversion options.   The procedure used in this study was:





         1.   For each cost study of an individual power generating systems, total



             plant  capital investment (not  including escalation, interest during



             construction (IDC), working capital, or contingency) was divided



             into power plant  investment and environmental control investment.



             Several cost studies were available  for most of  the different power



             generation systems.





             Environmental control investment included costs  for the control of



             sulfur, particulates, NO , and  thermal discharges.  For pressurized
                                     A


             fluidized-bed combustion, hot  gas cleanup was considered a power



             plant  cost, since  clean gas for the  turbines is  a power plant



             requirement.





         2.   Power  plant capital costs (not  including environmental  costs)  were



             adjusted to a single base year  (mid  1975 was used since all  but a
                                        -3-

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    few of the original  studies  use this  as  a  basis)  and a base



    size (1000 MWe).   Escalation factors  were  used to adjust all  costs



    to a mid-1975 price.   Scaling to the  base  size was done by using  an



    exponential  factor of 0.85 which was  used  by both EPRP '  and


           (4)
    Bechtel     in recent studies.





3.   A single base power plant investment  was selected as representative.



    In each  case, this figure consists of total  construction cost of  the



    power plant; it excludes environmental  control investment.   As noted



    under "1", above, the power  plant investment does not contain con-



    tingency, escalation, working capital,  and interest during construc-



    tion (IDC).





4.   A contingency was then added with the amount obtained by the degree



    of definition; for each technology, a range  or band of uncertainty



    was assigned; wider bands were attributed  to less developed  options.



    Interest during construction, together with  startup costs, was



    applied to each plant investment at a rate of 30  percent.   (For the



    liquid fuel  options, a rate  of 22 percent  was used because of a sig-



    nificantly shorter construction period.)  These are the factors


                          (2)
    used in the EPRI  studyv  , they are equivalent to construction times



    of approximately 6 and 4 years at an  interest rate of 10 percent.



    The total cost gives the probab'le range of capital requirements for



    each plant without environment controls.





5.   Annualized costs were calculated for  base  load operation (0.65



    capacity factor).  This consisted of  a fixed capital charge and an



    operations and maintenance (O&M) charge (fuel charges are broken
                               -4-

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    out separately under incremental costs).  A fixed charge rate of
    18 percent per year was applied to the range of capital costs
    calculated in "4".  This covers interest on debt, return on equity,
    depreciation, insurance, and property and income taxes, both federal
    and local.  Current utility experience in the U.S. shows this fixed
                                                            (2)
    charge rate varies from 15 to 22 percent.  Both the EPRIV  ' and
        (5)
    ECASV  ' studies also used a fixed charge rate of 18 percent.
    Typical O&M charges were added to capital charges to obtain
    annualized costs.

6.  Scaling of costs to a 500 MWe size was done using an exponential
    factor of 0.85 (i.e.  (500/1000)0'85 - 0.555).

7.  Environmental control technology investment and annualized costs
    were developed from representative base costs in the same  manner
    as power plant costs.

8.  Fuel costs for physically cleaned, chemically cleaned, solvent
    refined, and liquefied coals include plant charges for processing.
    Fuel costs are based on a heat rate of 10,000 Btu/kWh.  Actual
    fuel costs will  depend on the efficiency or heat rate of the power
    generation option  and are adjusted by the ratio of the actual heat
    rate of the power  generation option to 10,000.   A typical  heat
    rate was selected  for each base generation system.
                               -5-

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3.0   Cost Tables





      Table 1  presents the results for the base general"!on systems, fuels and



      environmental  controls considered.   Using this table, costs can be computed



      for a particular configuration by adding the appropriate incremental  costs



      for fuel and enviornmental  control  technology to the cost of the base



      generation system.   Two examples are provided for specific kinds of power



      plant, fuel, and control technology.





      Fuel costs are based on a heat rate of 10,000 Btu/kWh (an efficiency of



      3412.2/10,000 = .34122).  Typical heat rates for each base generation



      option are listed in Table 1.  As shown in the examples, fuel costs can be



      adjusted to the specific base generation heat rate.





      The data used to compile Table 1 are in Tables 2 through 7.  Table 2 shows



      the escalation factors used to adjust all costs to mid-1975 dollars.



      Table 3 and 4 show the base cost, contingency, uncertainty, interest during



      construction, and startup factors used to obtain typical base generation



      and environmental control technology investments.  Investment costs are



      for new plant construction; no attempt was made to determine typical



      costs for retrofit applications.





      Published cost data, after adjustments, formed the basis for selection of



      the base investment figures.  In general, base investment spreads in



      studies of conventional technologies were narrow; a median figure, con-



      sistent with other base systems, was selected.  Spreads in the advanced



      technologies were greater and required engineering judgment in selecting



      the base investment.  This was also reflected in the use of larger
                                        -6-

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contingency and uncertainty factors.  As these technologies come closer

to commercialization, plant investment estimates will become firmer.


Table 5 and 6 show base generation and environmental control technology

annualized costs.  Annualized costs were calculated for base load opera-

tion (0.65 capacity factor) and consist of a fixed capital charge of 18

percent and a typical O&M charge.  The sum of these two is the total

annualized cost in Table 1.  Typical utility capital charges are:


     Cost of capital (capital structure assumed to
     be 50 percent debt and 50 percent equity)

        Bonds at 8 percent interest                        4.00
        Equity at 12 percent return to stockholder         6.00

     Taxes

        Federal (50 percent of gross return or same as
        return on equity)                                  6.00

        State (national average for states in
        relation to Federal rates)                         2.00

     Total rate applied to depreciation base              18.00


Table 7 shows the fuel  costs used in this study.
                                  -7-

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                                                    TABLE  1



                    TYPICAL ELECTRIC ENERGY GENERATION SYSTEMS CAPITAL AND ANNUALIZED COSTS



                                            Basis:  Mid 1975 Dollars


iase Generation System (Typical Heat Rate,
Btu/kWh)
Conventional Fossil Fired Boilers
High Sulfur Eastern Coal (9800)
Low Sulfur Western Coal (9200)
Liquid Fuel (9200)
Conventional Nuclear
Light Water Reactor (10400)
Combined Cycle
Liquid Fuel (7500)
Low Btu Gasification (8400)
Medium Btu Gasification (8200)
Fluidized Bed Combustion (FBC)
Atmospheric FBC (9500)
Pressurized FBC (8800)
Incremental Costs
Fuel*
High Sulfur Eastern Coal
Low Sulfur Western Coal
Physically Cleaned Coal
Chemically Cleaned Coal
Solvent Refined Coal
Liquefied Coal
Liquid Fuel
Uranium
Environmental Control Technology
Sulfur Control
Flue Gas Desulfurization
Limestone
Wellman Lord
Magnesia
Dual Alkali
Fuel Gas Cleanup
Low Btu Gas
Medium Btu Gas
Fluidized Bed Combustion
Limestone or Dolomite
Particulate Control
ESP-Cold
ESP-Hot
Fabric Filter
Wet Scrubber
NOX Control
Combustion Modifications
Selective Catalytic Reduction
Water Injection for Turbines
Thermal Discharge Control
Evaporative Cooling Tower
Fossil
Nuclear
1000 MWe
Capital
($/k:we)



385-470
405-495
240-295

605-740

215-265
525-710
530-720

420-565
505-760













61-82
70-95
72-108
75-112

113-152
99-135

16-27

22-27
25-34
36-48
42-52

10-12
22-37
3-5


14-17
18-22
Annual ized
(Mills/kWh)



13-16
14-17
8-10

20-25

8-10
18-24
18-25

15-19
18-26


8-12
11-15
10-14
14-22
25-30
30-35
15-25
5-6



3.1-3.8
3.2-4.0
3.3-4.4
4.1-5.3

4.6-5.8
3.8-4.9

1.1-1.5

0.9-1.0
1.1-1.4
1.5-1.9
1.7-2.0

0.4-0.5
1.2-1.7
0.6-0.7


0.7-0.8
1.1-1.2
500 MWe
Capital
($/kWe)



430-520
450-550
265-330

670-820

240-295
585-790
590-800

465-625
560-845













68-91
78-105
80-120
83-124

125-169
110-156

18-30

24-30
28-38
40-53
57-58

11-13
24-41
3-6


16-19
20-24
Annualized
(Mills/kWh)



15-18
15-19
9-11

23-27

9-11
21-27
21-27

16-21
20-29


8-12
11-15
10-14
14-22
25-30
30-35
15-25
5-6



3.5-4.2
3.5-4.4
3.6-4.9
. 4.5-5.5

5.1-6.5
4.2-5.5

1.2-1.6

0.9-1.1
1.2-1.5
1.7-2.1
1.9-2.3

0.4-0.5
1.3-1.9
0.6-0.7


0.8-0.9
1.2-1.3
* Based on a heat rate of 10,000 Btu/kWh.  See example for  adjustment  to  Base Generation System heat rate.

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3.1   Example A
      For a 1000 MW coal  fired boiler burning high-sulfur Eastern coal  having



      a heat rate of 9,800 Btu/kWh,  how much would the capital  investment and



      annualized costs increase as a result of environmental  control  for



      particulates, NO ,  SO  and thermal  discharges?
                      X    A




                                                      Capital       Annualized

      System                                          ($/kUh)        (mills/kWh)



      1000 MW  Conventional Coal Fired Boiler         385-470          13-16





      Fuel
      High Sulfur Eastern Coal, y^     x  (8-12)           -            7.8-11.8






               Subtotal  (Base  +  Fuel)                  385-470        21.8-26.8*






      Environmental  Controls



         Limestone FGD  Process -  SOY                    61-82          3.1-3.8
                                  A


         Cold  ESP -  Particulates                        22-27          0.9-1.0



         Combustion  Modifications - NO                  10-12          0.4-0.5
                                     A


         Fossil  Cooling  Tower  - Thermal                 14-17          0.7-0.8



               Subtotal  (Environmental  Controls)       112-133*        5.2-6.0*




              TOTAL                                    534-566*       27.4-32.4*
      Percentage  Increase  in  Costs  Due  to

      Environmental  Control



         o   Capital  Investment,  E"vi™™ental x  100    25-33*




         o   Annualized  Cost,     Environmental    1riri                   ori  „,.

                                Base +  Fuel  x  10°                   20~26





      * Ranges of calculated  values obtained as  sums and quotients were calculated

       by use of standard deviations:   see, e.g. Ferencz^/).
                                        -9-

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3.2   Example B
      For a 1000 MW pressurized fluidized-bed combustor burning  high-sulfur

      Eastern coal  having a heat rate of 8,800 Btu/kWh, how much would the

      capital investment and annualized costs increase as  a result of environ-

      mental  controls?


                                                      Capital        Annualized
      System                                          ($/kVI         (mllls/kMh)

      1000 MW Pressurized FBC                         505-760          18-26


      Fuel
      High Sulfur Eastern Coal,  IQ'QQ x (8-12)           -           7.0-10.6

              Sub-total  (Base +  Fuel)                  505-760      26.4-35.2*


      Environmental  Controls

         In Situ - SO                                  16-27         1.1-1.5
                     X

         Particulates+

         NO ,  not applicable
           X

         Fossil  Cooling  Tower -  Thermal                 14-17         0.7-0.8

              Sub-total  (Environmental  Controls)        31-43*       1.8-2.3*
              TOTAL                                   535-804*     28.5-37.2*

      Percentage Increase in Costs  Due to
      Environmental Control

         o  Capital Investment,  Envi^nta1  x  10Q     4.3_7.4*
         o  Annualized Cost,                   x  10°                  5.5-7.8*
      +Due to turbine requirements,  hot gas  particulate  control  assigned  to
       power system costs.

      *Ranges of calculated values obtained  as sums and  quotients  were calculated
       by use of standard deviations:   see,  e.g.  Ferencz(^7)>


                                        -10-

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                             TABLE 2

                ESCALATION FACTORS USED TO ADJUST
                   ALL COSTS TO MID-1975 PRICE
  De-escalation
               (a)
                          Escalation^)
Year
Factor
July 1978       0.8396

July 1977       0.8900

July 1976       0.9434
Year
July 1975
January 1975
July 1974
January 1974
July 1973
January 1973
July 1972
January 1972
July 1971
January 1971
July 1970
January 1970
July 1969
January 1969
Factor
1.000
1.052
1.176
1.353
1.433
1.500
1.554
1.610
1.669
1.751
1 . 838
1.929
2.025
2.126
(a)Based on 6% escalation  rate  per year ^   '.
         on  escalation  rate  of  5%  for material and 8% for  labor

   compounded  per year
                                -11-

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                                      TABLE 3
Range of Investment Estimates For Base Load Fuel Conversion Plants 1000 MWe -
No Pollution Control - Mid-1975 Dollars
Base
Investment Contingency
Plant $/kW %
Conventional
Eastern Coal
Western Coal
Liquid Fuel
Nuclear
Combined Cycle
Liquid Fuel
Low Btu Gas
Medium Btu Gas

300
315
200
450

170
395
400

+ 10
+ 10
+ 10
+ 15

+ 15
+ 20
+ 20
Uncertainty

± 10
* 10
- 10
± 10

± 10
- 15
± 15
IDC* &
Startup
Factor

1.30
1.30
1.22
1.30

1.22
1.30
1.30
Total
Capital
Cost
$/kW

385-470
405-495
240-295
605-740

215-265
525-710
530-720
Atmospheric
   Fluidized-Bed
315
20
± 15
1.30
420-565
Pressurized
   Fluidized-Bed      405
           + 20
             ± 20
              1.30
          505-760
* Interest during construction
                                        -12-

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                                      TABLE  4
Range of Incremental  Investment Estimates  for Environmental  Control Technology
(1000 MWe Size)
Sulfur Control
  FGD
    Limestone
    Wellman lord
    Magnesia
    Dual Alkali

  Fuel Gas Cleanup
    Low Btu Gas
    Medium Btu Gas
                                   Base
                                Investment
                                   ($/kW
50
55
58
60
85
75
        Contingency  Uncertainty
              '
10
15
20
20
20
20
±15
J15
±20
±20
±15
±15
                     IDC* &
                     Startup
                     Factor
1.30
1.30
1.30
1.30
1.30
1.30
                     Capital
                   Investment
                     ($/kW
 61-82
 70-95
 72-108
 75-112
113-152
 99-135
  Fluidized Bed Combustion
    Limestone or Dolomite
14
20
±25
1.30
 16-27
Particulate Control
    ESP - Cold
    ESP - Hot
    Baghouse
    Wet Scrubber
18
22
30
35
10
10
15
10
±10
±15
±15
±10
1.22
1.22
1.22
1.22
 22-27
 25-34
 36-48
 42-52
NOX Control
    Combustion - Mod                 8
    Selective Catalytic Reduction+  20
    Water Injection for Turbines      3
           15
           20
           10
           ±10
           ±25
           ±15
           1.22
           1.22
           1.22
          10-12
          22-37
           3-5
Thermal Discharge Control
  Evaporative Cooling Tower
    Fossil
    Nuclear
11
14
10
10
±10
±10
1.30
1.30
 14-17
 18-22
*Interest during construction

+(SCR)
                                        -13-

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                                 TABLE 5

                 BASE GENERATION  SYSTEMS ANNUALIZED COST
Plant

Conventional
   High Sulfur Coal
   Low Sulfur Coal
   Liquid Fuel
   Light Water Reactor
  Capital
(mills/kHh)
12.17-14.86
12.80-15.65
 7.59-9.33
19.13-23.39
     O&M
(mins/kWh)
    1.00
    1.06
    0.47
    1.20
   Total
 Annualized
(mins/kWh)
   13-16
   14-17
    8-10
   20-25
Combined Cycle
   Liquid Fuel
   Low Btu Gas
   Medium Btu Gas
 6.80-8.38
16.60-22.44
16.75-22.76
    1.64
    1.83
    1.74
    8-10
   18-24
   18-25
Fluidized Bed Combustion
   Atmospheric (AFBC)        13.28-17.86
   .Pressurized (PFBC)        15.96-24.03
                     1.36
                     2.06
                    15-19
                    18-26
                                   -14-

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                                       TABLE 6

                   ENVIRONMENTAL CONTROL TECHNOLOGY ANNUALIZED COSTS

                             FOR 1000 MWe INSTALLATIONS
Sulfur Control
   FGD
     Limestone
     Wellman Lord
     Magnesia
     Dual Alkali

   Fuel Gas Cleanup
     Low Btu Gas
     Medium Btu Gas

   Fluidized-Bed Combustion

     Limestone or Dolomite
                                        Capital
                                      (mills/kNh)
1.93
2.21
2.28
2.37
3.57
3.13
2.59
3.00
3.41
3.54
4.81
4.27
                       O&M
                  (mills/kWh)
0.51 - 0.85
1.20
0.95
T.OO
1.72
1.04
0.64
                0.60
                                Total
                              Annualized
                             (mills/kHh)
3.1
3.2
3.3
4.1
4.6
3.8
3.8
4.0
4.4
5.3
5.8
4.9
               1.1 - 1.5
Particulate Control
   Electrostatic Precipatator
   Electrostatic Precipatator
   Fabric Filter
   Wet Scrubber
NO  Control
  A
   Combustion Modifications
   Selective Catalytic Reduction
   Water Injection For Turbines
Hot
Cold
i
0.70
0.79
1.14
1.33
0.32
0.70
0.09
- 0.85
- 1.07
- 1.52
- 1.64
- 0.38
- 1.17
- 0.16
                       0.15
                       0.30
                       0.36
                       0.40
                       0.10
                       0.50
                       0.50
0.9 -
1.1 -
1.5 -
1.7 -
0.4 -
1.2 -
0.6 -
1.0
1.4
1.9
2.0
0.5
1.7
0.7
Thermal Discharge Control
   Cooling Tower
     Fossil
     Nuclear
0.44
0.57
0.54
0.70
0.30
0.50
0.7 - 0.8
1.1 - 1.2
                                          -15-

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                                TABLE 7

             FUEL COSTS (BASED ON 10,000 BTU/kWh  HEAT RATE)
                                    $/106 Btu               Mills/kt-Jh
High Sulfur Coal                    0.80 - 1.20                 8-12
Low Sulfur Coal                     1.05 - 1.95                11  - 15
Physically Cleaned Coal             1.00 - 1.40                10  - 14
Chemically Cleaned Coal             1.40 - 2.20                14  - 22
Solvent Refined Coal               2.50 - 3.00                25-30
Liquefied Coal                     3.00 - 3.50                30  - 35
Liquid Fuel                        1.50 - 2.50                15  - 25
Uranium                            0.45 - 0.55                 5-6
                                   -16-

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4.0   Data Sources

      The primary sources for cost data are conceptual design studies performed
      under EPRI, EPA and DOE sponsorship and EGAS conducted by NSF.  Other
      data came from individual  manufacturers.  The specific data sources are
      discussed below:

4.1   Base Generation Systems

      Capital  investment estimates for conventional fossil  fired plants were
      compared from several  sources.   These included studies by Ebasco^ ' and
      Bechtel^ for EPRI, ECAS^7' 8^, a study by TVA for EPA(9\
      and a Gilbert study for DOE^   .  After adjustments to a common basis
      and removing environmental  control costs, the base power plant costs
      varied - 7 percent.   Representative base costs were selected for each of the
      options  based on this  comparison.   Capital  investment estimates for the
      conventional nuclear option were based primarily on the Ebasco study^  '.

      Combined cycle capital  investment data were compared  using a Gilbert study^   '
      for DOE  and Stone & Webster^1^  and GE^'2^  studies for EPRI.  Capital
      investments varied up  to 40 percent between the studies depending mainly upon
      the type of process chosen.   The cost figures used were based primarily
      upon the Gilbert study  which assumed a low  pressure,  two-stage, entrained-
      bed gasifier.   The wider range  in  the estimates is reflected by a higher
      contingency and range  of uncertainty.

      The source for investment estimates for fluidized bed combustion (FBC)
      included the ECAS studies^7'8),  a  Gilbert study for DOE^13^, a TVA study
                                        -17-

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for EPA( 9 •), and a GE study for EPRI^1^.   After adjustments to a common



basis, investments for atmospheric units ranged within 10 percent and for



pressurized with 15 percent.   Representative costs were selected for each



system based on a comparison of these studies.





Conventional fossil fired O&M costs were taken from a Gilbert study for



   ^  ' and were based on the Federal Power Commission publication "Steam



                                                   xpe


                                                   (3)
                                                   v
                                                                 ( 14)
      Electric Plant Construction and Annual  Production Expenses'     .   O&M costs
      for a nuclear option were taken from an EPRI  reportv




                                                                                C\r>}
      Combined cycle and AFBC O&M costs were obtained from  the GE study for EPRP  -'



      PFBC O&M costs were obtained from the EGAS study
4.2   Fuel
      For coal, petroleum and uranium,  costs from published data^  '   '  and present



      prices information^  '  were compiled and representative values  selected.



      Because of transportation costs,  low sulfur coal  was  estimated  to cost



      $0.25/106 Btu more than high sulfur coaP2^.





      Fuel costs for physically cleaned,  chemically cleaned, solvent



      refined and liquefied coals are based on high sulfur  feed  coal,  but



      also reflect charges for plant investment including capital  charges plus



      operating and maintenance costs.   Battelle^  ' coal cleaning costs were



      used.   Solvent refined  and liquefied coal  costs were  from  a  report



      by Gilbert^13).





4.3   Environmental Control Technology





      In addition to the conceptual  design studies, flue gas desulfurization
                                        -18-

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costs were obtained from studies by PEDCCr    , the Federal Power Commission^  '



and Davy Power Gas^   .  Representative capital and O&M costs were selected



after a comparison of these studies.  The Wellman Lord FGD process is based
on sulfuric acid as the product.  Fuel gas cleanup capital and O&M costs



                                                                 ;rol


                                                                 .(7)
were based primarily on the Gilbert costs study^  '.   Sulfur control costs
for fluidized-bed combustion were estimated from the EGAS studies





Particulate control cost data were obtained, in addition to the conceptual


                                                                        (21)
design studies, from an Industrial Gas  Cleaning Institute Study for EPAX  '


                                              (22)
and published cost models by Research-Cottrellv   .   Again, a comparison



of these studies was made and representative costs selected.
Data for NO  control was taken from EPA published data for combustion


             (23)                                  (24)
modifications     and selective catalytic reduction^    .   Data for



water injection for turbines were obtained from the standard support


        (25)
document   .
Cost data for cooling towers were based on costs reported in the conceptual

                                     /

design studies and a recent EPA studyv
                                  -19-

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                              REFERENCES
 1.   "Standards of Performance  for  New  Stationary  Sources".   Federal
     Register 36 (247),  December 23,  1971,  pp.  24876-24895.

 2.   "Clean Coal:   What  Does  it Cost  at the Busbar".   EPRI Journal,
     November 1976, p. 6.

 3.   Rudasill, C.  L.,  Coal  and Nuclear Generation Costs.  EPRI  PS-455-SR,
     April  1977.

 4.   Bechtel  Power Corporation, Coal  Fired  Power Plant Capital Cost Estimates.
     January 1977, EPRI  AF-342.

 5.   Lewis  Research Center,  Evaluation  of Phase 2  Conceptual  Designs  and
     Implementation Assessment  Resulting from  ECAS.   Cleveland,  OH for NASA,
     April  1977.

 6.   Ebasco Services,  Inc.,  Fossil  and  Nuclear 1000 MH Central Station Power
     Plants Investment Estimates.   EPRI  IPS 75-601,  September 1975.

 7.   Corman, J. C., et al,  Energy Conversion Alternative  Study -  ECAS-General
     Electric Phase II Final  Report.  Schenectady, NY, RE, Corporate  R&D  for
     U.S.  ERDA, NASA CR-134949, 1977

 8.   Beecher, D. T., et  al,  Energy  Conversion  Alternative Study  - ECAS-Westing-
     house  Phase II Final  Report.   Pittsburgh, PA, Westinghouse  Electric  Corp.
     for U.S. ERDA.  NASA-CR-134942,  1976

 9.   U.S.  TVA, Utility Boiler Design/Cost Comparison:   FBC vs FGD.  Chattanooga,
     TN for U.S. EPA.  November, 1977.   EPA-600/7-77-126

10.   Patrick, R. G., et  al.   Assessment of  Fossil  Energy  Technology for
     Electric Power Generation.  Reading, PA,  Gilbert Associates, Inc. for
     U.S.  ERDA, Office of  Program Planning  and Analysis.  March,  1977.
     GAI Report #1940

11.   Stone  and Webster Engineering  Corporation, Comparative Evaluation of
     High and Low Temperature Gas Cleaning  for Coal  Gasification  - Combined
     Cycle  Power Systems.   April 1977,  EPRI AF-416.

12.   General  Electric  Co.,  Comparative  Study and Evaluation of Advanced
     Cycle  Systems.  EPRI  AF-664, February  1978.

13.   Gilbert Associates, Inc.,  Reading,  PA, Fossil Energy Technology  Source
     Book:   Liquids.  U.S.  DOE, Office  of Program  Planning and Analysis,
     January 1978.  Draft

14.   U.S.  Federal  Power  Commission, Steam Electric Plant  Construction Cost
     and Annual Production Expenses - 26th  Annual  Supplement  - 1973.
     Washington, DC, FPC,  1973.
                                  -20-

-------
15.  "1977 Generation Planbook".  Power Engineering, pp.  156.   1977

16.  "FERC Report:  Plant by Plant Deliveries of Fossil  Fuels  to Utilities".
     Electrical Week. April 24, 1978, p.  12

17.  Hall, E. H., Physical Coal Cleaning  for Utility Boiler S0? Emission
     Control.  Columbus, OH, Battelle Memorial  Institute  for UTS.  EPA,
     February 1978, EPA-600/7-78-034.

18.  PEDCO Environmental Specialists, Inc., Particulate  and SCL Emission
     Control  Cost Study of the Electric Utility Industry  -  Preliminary
     Draft.  Cincinnati, OH for U.S.  EPA.

19.  U.S. Federal Power Commission, The Status  of FGD Applications in the
     U.S.  Washington, D.C., 1977.

20.  Gaur, K. S., "Pollution Control  With  S02 Recovery",  Pollution
     Engineering, May 1978.

21.  IGCI, Inc.,  ESP Costs for Large  Coal-Fired Steam Generators,  for USEPA,
     February 1977.

22.  Bubenck, D.  V., "Economic Comparison  of Selected Scenarios for ESP  and
     Fabric Filters", JAPCA, Vol.  28, No.  3, March 1978.

23.  Shimizu, A.  B., et al, NO  Combustion Control  Methods  and  Costs for
     Stationary Sources.  September 1975,  EPA-600/2-75-046.

24.  Mobley,  J. D. and Stein,  R. D.,  "Status of Flue Gas  Treatment Technology
     for Control  of NO  and Simultaneous  Control  of SO and NO  ".   Proceedings
     of the Second Stationary  Source  Combustion Symposium.   Jufy 1977, EPA-
     600/7-77-073C.

25.  U.S. EPA, Standard Support and Environmental  Impact  Statement,  Volume 1:
     Proposed Standards of Performance for Stationary Gas Turbines.   September
     1977, EPA-450/2-77-017a.

26.  Hu, M.  C., et al, Water Consumption  and Costs  for Various  Steam Electric
     Power Plant  Cooling Systems.   August  1978, EPA-600/7-78-157.

27.  Ferencz, P., "Statistics  Can  Put More Meaning  Into Your Cost  Estimates",
     Chemical Engineering 59:  4 (1952) 143.
                                  -21-

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                                TECHNICAL REPORT DATA
                          (Please read Instructions on the reverse before completing)
1. REPORT NO.
  EPA-600/7-79-026
                           2.
                                                      3. RECIPIENT'S ACCESSION NO.
4. TITLE AND SUBTITLE
Typical Costs for Electric Energy Generation and
   Environmental Controls
            5. REPORT DATE
             January 1979
            6. PERFORMING ORGANIZATION CODE
7. AUTHOR(S)
M.G. Klett
                                                      8. PERFORMING ORGANIZATION REPORT NO.
9. PERFORMING ORGANIZATION NAME AND ADDRESS
Gilbert Associates, Inc.
P.O. Box 1498
Reading, Pennsylvania  19603
            10. PROGRAM ELEMENT NO.
            EHE624
            11. CONTRACT/GRANT NO.

            68-02-2605, Task 2
12. SPONSORING AGENCY NAME AND ADDRESS
 EPA, Office of Research and Development
 Industrial Environmental Research Laboratory
 Research Triangle Park, NC 27711
            13. TYPE OF REPORT AND PERIOD COVERED
            Task Final: 4-11/78	
            14. SPONSORING AGENCY CODE
              EPA/600/13
15. SUPPLEMENTARY NOTES IERL-RTP project officer \s Vincent W. Uhl,  Mail Drop 63, 919/
2815.
IB. ABSTRACT Tne report gives typical costs for electric power generating plants and
their environmental controls for installations of 1000 and 500 MWe capacity, inclu-
ding the expected range of uncertainty. Total annualized costs for a particular con-
figuration can be computed by adding the appropriate incremental costs for fuel and
environmental control equipment to the cost of the base generation system.  Fixed
charges are computed on the basis of 18% of the  capital investment; cost data are
corrected to mid-1975. Two examples of the use of the data are included.  The data
and method are intended to provide an overview. Actual installation costs may differ
widely from those found from information in this report because of site-specific
considerations.
17.
                             KEY WORDS AND DOCUMENT ANALYSIS
                DESCRIPTORS
                                          b.IDENTIFIERS/OPEN ENDED TERMS
                         c. COSATI Field/Group
 Pollution
 Cost Estimates
 Electric Power Generation
 Capitalized Costs
 Operating Costs
Pollution Control
Stationary Sources
13 B
05A, 14A
10A
18. DISTRIBUTION STATEMENT
 Unlimited
                                           19. SECURITY CLASS (This Report)
                                           Unclassified
                         21. NO. OF PAGES

                                28
20. SECURITY CLASS (Thispage)
Unclassified
                         22. PRICE
EPA Form 2220-1 (9-73)
                                         -22-

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