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 ------- 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. ------- 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 ------- 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. ------- 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- ------- 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 - ------- 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- ------- 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. ------- 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- ------- 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- ------- 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- ------- 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- ------- 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- ------- 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- ------- 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- ------- 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 ($/kWe) 430-520 450-550 265-330 670-820 240-295 585-790 590-800 465-625 560-845 68-91 78-105 80-120 83-124 125-169 110-156 18-30 24-30 28-38 40-53 57-58 11-13 24-41 3-6 16-19 20-24 Annualized (Mills/kWh) 15-18 15-19 9-11 23-27 9-11 21-27 21-27 16-21 20-29 8-12 11-15 10-14 14-22 25-30 30-35 15-25 5-6 3.5-4.2 3.5-4.4 3.6-4.9 . 4.5-5.5 5.1-6.5 4.2-5.5 1.2-1.6 0.9-1.1 1.2-1.5 1.7-2.1 1.9-2.3 0.4-0.5 1.3-1.9 0.6-0.7 0.8-0.9 1.2-1.3 * Based on a heat rate of 10,000 Btu/kWh. See example for adjustment to Base Generation System heat rate. ------- 3.1 Example A For a 1000 MW coal fired boiler burning high-sulfur Eastern coal having a heat rate of 9,800 Btu/kWh, how much would the capital investment and annualized costs increase as a result of environmental control for particulates, NO , SO and thermal discharges? X A Capital Annualized System ($/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- ------- 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- ------- 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- ------- 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 $/kW 385-470 405-495 240-295 605-740 215-265 525-710 530-720 Atmospheric Fluidized-Bed 315 20 ± 15 1.30 420-565 Pressurized Fluidized-Bed 405 + 20 ± 20 1.30 505-760 * Interest during construction -12- ------- TABLE 4 Range of Incremental Investment Estimates for Environmental Control Technology (1000 MWe Size) Sulfur Control FGD Limestone Wellman lord Magnesia Dual Alkali Fuel Gas Cleanup Low Btu Gas Medium Btu Gas Base Investment ($/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- ------- 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- ------- 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- ------- 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- ------- 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- ------- 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- ------- 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- ------- 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- ------- 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- ------- |