EPA-650/2-73-051
   December 1973
Environmental Protection Technology  Series




•Ill






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                                       EPA-650/2-73-051
          MARKETING  H2S04
FROM S02 ABATEMENT SOURCES
      -THE TYA  HYPOTHESIS
                     by
        D.A. Waitzman, Study Phase Coordinator
                     and
J. L. Nevins and G. A. Slappey, Market and Economic Analysts
             Tennessee Valley Authority
      Office of Agricultural and Chemical Development
           Muscle Shoals, Alabama 35660
    Interagency Agreement No. EPA-1AG0134D (Part B)
               ROAPNo. 21ADE-24
            Program Element No.  1AB013

          EPA Project Officer: W.R. Schofield

             Control Systems Laboratory
        National Environmental Research Center
      Research Triangle Park, North Carolina 27711
                  Prepared for

        OFFICE OF RESEARCH AND DEVELOPMENT
      U.S. ENVIRONMENTAL PROTECTION AGENCY
             WASHINGTON, D.C. 20460

                 December 1973

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This report has been reviewed by the Environmental Protection Agency and




approved for publication.  Approval does not signify that the contents



necessarily reflect the views and policies of the Agency, nor does




mention of trade names or commercial products constitute endorsement



or recommendation for use.
                               ii

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                                ABSTRACT
A hypothetical study was made on marketing abatement sulfuric acid from
stack gas sulfur dioxide removal processes and acid production facilities
assumed to be installed at selected coal-burning steam plants in the
Tennessee River Valley of the southeastern United States.  The study ob-
jective was to create a computer model to determine the net sales revenue
in dollars to the utility by assigning a zero dollar value for the acid
at the steam plants, computing the transportation cost of shipping the
acid to older existing acid producers in the Midwest and Southern States,
and selling the acid to them at or below their basic manufacturing cost.
The Tennessee Valley Authority (TVA) power production system was used as
the utility model.  From a total of about 18,000 MJ coal-burning power
generation capacity in the TVA system, about 10,000 MW was considered for
sulfuric acid production and about 2 million tons of sulfuric acid per
year would be produced.  Assuming TVA would be the only utility producing
abatement acid, a net sales revenue of $5 to $9 per ton  (0.2-0.5 mills/
kWh or $0.50-0.75/ton of coal burned) was indicated.  The computer model
developed for the study is capable of being expanded to include other
utilities in the United States.  Such an expansion of the study is suggested.
                                    iii

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                                CONTENTS




                                                                     Page




Abstract                                                            Hi




List of Figures                                                      v




List of Tables                                                       vi





Sections




Summary and Conclusions                                              1




Recommendations                                                      4




Introduction                                                         5




Background                                                           6




Sulfuric Acid Production Capacity of TVA                             21




Market Approach                                                      27




Results  of Analysis                                                  38




References                                                           48




Appendixes                                                           49
                                    iv

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                                FIGURES


No.

1    Sulfuric Acid Manufacturing Capacity (1970)                     8

2    Location of Major Coal- and Oil-Fired Power Units--197l         *3

3    Freezing Points of Sulfuric Acid                                16

14-    Location of TVA Power Plants                                    22

5    Amortized Value of Maintenance and Capital Outlays for          32
       New Plants

6    Amortized Value of Maintenance and Capital Outlays for          33
       One-Year-Old Plants

7    Amortized Value of Maintenance and Capital Outlays for          3^
       Thirty-Year-Old Plants

8    Effect of Sulfur Price on TVA Net Sales Revenue                 ^.1

9    Demand for TVA Sulfuric Acid                                    ^3

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                                 TABLES






No.                                                                  Page




1    S02 Regenerable Process Demonstrations                           6




2    Sulfuric Acid Plant Capacity  (1970)                              7




3    Sulfuric Acid End Use Pattern (1970)                             10



k    Typical Sulfuric Acid Strengths and Major End Uses               12




5    TVA Steam Plants                                                 23




6    TVA Power Generation Capacity (1972)                             21




7    Estimate of Acid Production Capability (1972)                    2k




8    Estimated S02 Removal Efficiency                                 25




9    Forecast of Possible TVA Acid Production                         26




10   Estimated Production and Storage Volumes                         26




11   Major Parameters in Model                                        30




12   Production Cost Estimates for Sulfuric Acid                      3°




13   Base Case Market Pattern for TVA H2S04                           39




Ik   Realistic Market Pattern for TVA H2S04                           k$




15   Production Costs for Phosphoric  Acid Plant                       k6
                                     vi

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                            CONVERSION TABLE
EPA policy is to express all measurements in Agency documents in metric
units.  When implementing this policy results in undue cost or difficulty
in clarity, the National Environmental Research Center-Research Triangle
Park (NERC-RTP) provides conversion factors for the particular nonmetric
units used in the document.  For this report these factors are:
British
Multiply
gallon
pound
*
tons/hour
tons /hour
short tons3
long tons3
Btu
°F -32
.X
tons/day

By_
ftrnfmt
5-T85
1^.536 x lO'1
2. 520 x 10"1
9.0718 x 102
9.0718 x 10-1
1.016
2.520 x 10"1
5.555 x 10"1
1.05 x lO'2
Metric
To Obtain
liters
kilograms
kilograms/second
ki lograms/hour
metric tons
metric tons
kilogram- calories
°C
kilograms/second
3 All  tons of acid are  short tons and all  tons of  sulfur  are  long  tons un-
  less otherwise indicated.
                                    vii

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               MARKETING %S04 FROM S02 ABATEMENT  SOURCES

                           THE TVA HYPOTHESIS



                         SUMMARY AND CONCLUSIONS
Processes for removal of sulfur dioxide from stack gases have been devel-
oped to the point that several are being tested in full-scale installa-
tions.   The flue gas desulfurization (FGD) processes result in large
quantities of byproduct sulfur equivalents.   Throwaway FGD processes such
as lime or limestone scrubbing result in a sludge consisting primarily of
calcium sulfite, calcium sulfate,  or calcium carbonate.   Regenerable FGD
processes such as magnesia scrubbing, catalytic oxidation, and sodium
scrubbing processes can produce byproducts such as elemental sulfur or
sulfuric acid with known commercial uses.  Currently the major interest
is in lime or limestone scrubbing, but recovery methods are also receiv-
ing attention.  One of the deterrents to more widespread consideration of
processes that produce useful products is the question of available mar-
kets.  This study has been carried out to evaluate the marketability of
sulfuric acid, one of the potential major products from recovery processes
being developed.

The TVA power system was used as the utility model for the production and
distribution of sulfuric acid.  The use of the TVA power system as the
focal point of the study should in no way be construed to imply that a
decision has been made for TVA to enter into the production of sulfuric
acid or that TVA believes that FGD processes capable of producing acid or
elemental sulfur are sufficiently demonstrated to merit commercial appli-
cation at this time.  In this hypothetical study no attempt was made to
select a process or to estimate the production costs; a zero value was
assumed at the point of production.  The most appropriate plants for manu-
facture of acid were identified, a marketing approach was established; and
a production-distribution model was developed to minimize cost of sulfuric
acid to current producers and maximize net sales revenue  to TVA.  Net
sales revenues were estimated for a base case and several variations from
the base case.

Competition from other abatement acid sources was not included in the study,
but the model could be expanded to estimate the effect of additional sources
of supply.  It could be expected  that additional abatement acid sources
would have a  deleterious effect on the net sales revenue  since all  sources
would be competing for a limited market.  Furthermore, the producers of
Frasch (mined) sulfur could be expected  to protect their markets  (sulfur-
burning acid  plants) until revenues dropped below their mining costs.  If
excessive volumes of abatement acid are  involved, net sales revenue could
be expected to decline to zero or result  in a cost for disposal.

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 The current .sulfuric acid industry was reviewed to estimate acid plant pro-
 duction capacity, consumption patterns were identified, and transportation
 methods were determined.  Of approximately Jl million tons (all tons of acid
 are short tons and all tons of sulfur are long tons unless otherwise indi-
 cated) of acid produced in 1972,  only about lj million tons was marketed
 externally (merchant acid) by the producers.   With a growth rate of k to 6%
 per year, some acid could be expected to enter new markets, but existing
 markets also will have to absorb abatement acid.

 Because of unit age, and expected future operating schedules,  plus prior
 commitments to low-sulfur fuel (Bull Run plant) or stack gas scrubbing
 (Widows Creek No. 8),  it was determined that only 9,979 MW of  TVA's 18,109 MW
 of coal-fired power generation has some potential for being equipped with
 sulfur dioxide removal processes  producing sulfuric acid.   Assuming reliable
 sulfuric acid-producing systems could be installed by 1975 (i-n reality,  this
 would not be possible since a minimum of 30 to J>6 months is expected for
 design and installation of a proven, demonstrated system)  and  based on ex-
 pected operating schedules and Federal emission guidelines applicable to new
 units, about 1,980,000 tons of acid might be produced by the existing TVA
 system in 1975-   This  would be about 5% of the total U.S.  acid production.

 Of the various current sources of sulfuric acid,  the most  vulnerable one
 appears to be acid produced with  raw material sulfur purchased from an ex-
 ternal supplier.   The  strategy used in this study to penetrate existing
 markets was  to replace purchased  sulfur with  abatement acid by supplying the
 acid at a cost less than the producer1s avoidable processing cost.

 In an 11-state area adjacent to the TVA power system 61 existing acid plants
 were identified  as potential sales points for abatement acid.   Using a com-
 puter program,  the costs  for sulfur including transportation charges,  the
 production costs  for each plant (recognizing  age  and efficiency),  and the
 transportation costs for  moving acid from seven TVA power  plants to the 61
 acid plants were  applied  to  calculate the maximum net sales revenue to dis-
 pose of the  1.98  million  tons  of  acid.   For the base case  with sulfur at
 $25  per long  ton  f.o.b.  Port Sulphur,  Louisiana,  all barge transportation,
 a  market  demand  equal  to  100% of  acid plant operating capacity,  and with a
 zero value at  the point of production,  net sales  revenue of $8.76  per ton
 was  indicated.  Such a net sales  revenue might reduce the  cost of  operating
 a  power plant  sulfur dioxide control system by 10 to 20%.   If  a credit is
 added  for  the  estimated increased cost for installation and operation of
 tail gas  cleanup  systems  on  existing acid plants,  the net  sales revenue
might  be  expected to increase  by  approximately $3 per ton  of acid.   For  a
more realistic situation with  mixed rail  and  barge transportation  and re-
 duced  market demand  equivalent to an average  75%  on-stream time for existing
 acid plants, the  net revenue  is $6 per ton without credit  for  tail  gas  cleanup.

The  revenue from  sale of abatement acid  is  directly proportional to  sulfur
price;  an  increase of $5-00  per long ton  of sulfur is  equivalent to  approxi-
mately  .f-1.42 net  sales revenue per ton of acid.   Shipment  of 80% acid  instead
of 98%  increases  transportation and  handling  costs  by  about  $1  per  ton of  acid.

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Another idea with wide implications involves using the abatement acid
directly to produce more valuable phosphoric acid (P205) for fertilizers.
Since TVA presently must purchase wet-process phosphoric acid for its own
needs at the National Fertilizer Development Center at Muscle Shoals,
Alabama, additional revenue could be derived by using some of the abate-
ment sulfuric acid to produce wet-process phosphoric acid internally
passing the purchase cost savings back to the sulfuric acid system.

In summary, it appears that under the circumstances assumed in this study
the potential sulfuric acid from the TVA system could be incorporated
gradually into the market as long as there was no significant competition
from other abatement sources.  Competition from other sources would
definitely result in lower acid value.  It is conceivable that sufficient
competition could result in a negative acid value if it became necessary
to neutralize the acid or otherwise pay for its disposal.

Probably the most important result from the study is the development of a
versatile, practical, computer program which can be used to extend the
market  investigation to the entire United States and the initiation of a
data file on sulfuric acid and sulfur sources and end points both of which
can be made available to others.

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                             RECOMMENDATIONS
Using an expanded data file and the computer model developed during the
study, it is recommended that an evaluation of optimum points of supply
from all U.S. abatement acid sources to the existing markets and to future
markets should be made.  The future markets might include new fertilizer
production capability close to the point of acid production.  Specifically,
an expanded investigation should be carried out in predefined phases to
realistically:

   1.   Determine the quantities of byproduct sulfuric acid which could
       be produced in all U.S.  power plants and smelters.

   2.   Describe the most economical market distribution-transportation
       system including storage costs.

   5-   Define the competitive costs of sulfuric acid producers  using both
       Frasch and abatement elemental  sulfur as raw material;  costs of
       acid  plant pollution control included.

   k.   Predict as a function of the above  the  possible net sales revenue
       for market disposal  strategies  covering the existing acid market
       and the growth market with  possible relocation of phosphate  ferti-
       lizer production facilities  adjacent to the byproduct acid source.

   5-   Evaluate  the economic,  social,  and  environmental consequences of
       wide-scale use of  acid-producing  abatement  methods  and possible
       alternatives in  accordance with  the provisions of the National
       Environmental  Policy  Act  of  1969«

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                              INTRODUCTION
For the past several years, numerous sulfur dioxide control systems for
power plant stack gases have been under investigation by both industry
and government.  Until recently efforts have centered mostly on process
development; however, with control applications now beginning to accele-
rate from the demonstration stage toward commercial practice, attention
is being turned to byproduct disposal.  The byproducts of these systems
are both waste and salable materials such as calcium sludge, gypsum,
liquefied sulfur dioxide, ammonium sulfate, elemental sulfur, and sul-
furic acid of various concentrations.  Since the effects of waste
(throwaway) materials on the environment and salable materials on existing
and future markets need further definition, studies are being initiated
to guide potential users of sulfur dioxide removal technology.

With funding provided by the Clean Air Act of 1970 and subsequent con-
tinuations, the Office of Research and Development, Environmental
Protection Agency, Research Triangle Park, North Carolina, initiated a
study to determine the economics of marketing sulfuric acid which could
be produced from fossil fuel-fired steam plants.  The objective of the
study is to create a model for estimating the net sales revenue to a
utility from marketing the acid produced.  For simplification, the cost
of removing the sulfur dioxide and producing the sulfuric acid is con-
sidered independent from this evaluation; a zero acid value is assumed
at the point of production.

The Office of Agricultural and Chemical Development of TVA was selected
to perform the study since TVA is active in power generation, chemical
development, and fertilizer marketing, and has experienced personnel  to
carry out the program.

The study assumes that an acceptable  sulfur dioxide removal and sulfuric
acid production process is commercially available and would be installed
at several TVA steam plants; however,  the  study is hypothetical and should
in no way be construed to imply that  a decision has been made for TVA to
enter into the production of sulfuric  acid nor  that TVA believes that tech-
nology is adequately developed for pratical application.  The developed
model, hopefully, will be a useful tool to assist utilities and other
pollution sources in making such a decision in  the future.

The model is to be based on the existing  sulfuric acid production, distri-
bution, and marketing patterns with  consideration given to  expected changes
in such patterns due to the introduction  of abatement acid  into the existing
market.  In this initial analysis, it is  assumed that TVA would be the  only
new source producing abatement sulfuric acid in or near the marketing region
considered.  Abatement acid from other utilities would certainly influence
the evaluation; however, for the derivation of  the basic model, only  TVA's
production is considered.  The basic  model should be applicable and ex-
pandable to other utilities in the United States.  Also,  the  results  of
the study and  information  from other proposed  investigations  should give
a clearer economic relationship between  the various byproduct systems of
elemental sulfur, sulfuric acid, gypsum,  and calcium  sludges.

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                                BACKGROUND
 SULFUR DIOXIDE REMOVAL PROCESSES

 The sulfur dioxide removal processes that are being developed include sev-
 eral which could produce sulfuric acid as a marketable product.   Among
 these are the magnesia scrubbing process being developed by Chemical Con-
 struction Corporation - Basic Chemicals, and others,  the catalytic oxidation
 process by Monsanto Company, and the sodium sulfite process by Davy Powergas
 Company.   The demonstration-size plants in the United States using technology
 from these processes are listed below:
             Table 1.   SO- REGENERABLE PROCESS DEMONSTRATIONS
       Process
   Demonstration
   Utility company
 Product
 MgO scrubbing
 Sodium sulfite
   scrubbing
 Catalytic oxidation
150 MW oil (1972)
97-5 MW coal (1974)
125 MW coal (1973)
115 MW coal (1975)

110 MW coal (1974)
Boston Edison
Potomac Electric Power
Philadelphia Electric
Northern Indiana
  Public Service
Illinois Power
    H2S04
    H2S04
    H2S04
Sulfur
    H2S04
 Sulfuric  acid  is marketed at  several  concentrations—98%  and higher, 93/0,
 and  about 8o/a.  Of  the  above  three  sulfur  dioxide  removal systems,  two--the
 magnesia  scrubbing  process  and  sodium sulfite—can produce acid  at  a concen-
 tration of 98%  and  higher.  The third process—catalytic  oxidation--produces
 acid at a concentration of  about 80"/>.  The Qo% acid contains more impurities
 than the  98'/> acid.  Any of  these acids could be considered in  this  study,
 but  the transportation  and  storage  costs will be greater  for the dilute acid
 because of the  larger volumes required.  In addition,  the value  of  the impure
 80/>  acid  is generally less  to users.

 Regardless of which sulfur  dioxide  removal and sulfuric acid production pro-
 cess  is used, abatement sulfuric acid production cost  from facilities with
 expected  lives  at least as  great as the scrubber system will most likely be
 between $1*0 and $110 per ton compared with $10 to  $20  per ton when burning
 elemental  sulfur.  Although producing acid from a  fossil  fuel-fired steam
 plant is  an expensive way to make acid, the sulfur dioxide would be removed
 for pollution abatement reasons  and,  therefore, the cost  of acid production
 should be chargeable to  pollution abatement.   The  net  sales revenue received
 from the  sale of the byproduct  acid is considered  a credit in comparing acid-
producing processes with those producing a waste or other byproduct.
                                    6

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THE NATURE OF THE SULFURIC ACID INDUSTRY

In order to gauge the effect of abatement sulfuric acid on the current
production, consumption, and transportation patterns, it is necessary to
define the nature of the existing industry.  Some background on the sul-
furic acid industry was given in the EPA-TVA magnesia scrubbing report1
and is used in part in the following discussion.
Current Production

In 1972 approximately 5! million tons of sulfuric acid were produced in
the United States.2  This represents an increase of 5-5$ over 19T1-
Sulfuric acid manufacturing capacity in 1972 was about 39 million tons
with approximately 60$ committed to captive use.  Only about 12-5 million
tons was externally marketed out of 29.4 million tons produced in 1971-
As shown in Figure 1, states having the most capacity for acid manufacture
include Florida, Louisiana, Texas, New Jersey, and Illinois.  Capacity by
states in 1970 is shown in Table 2.
              Table 2.  SULFURIC ACID PLANT CAPACITY (1970)
                             (short tons/day)
State
Alabama
Arizona
Arkansas
California
Colorado
Delaware
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Capacity
1,610
2,627
737
6,77^
1,483
1,050
23,661
1,569
3,470
6,9^
2,066
1,877
747
550
12,600
223
2,260
330
1,301
State
Mississippi
Missouri
New Jersey
New Mexico
New York
North Carolina
Ohio
Oklahoma
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Utah
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Capacity
1,067
3,503
6,913
446
583
3,480
3,180
630
2,177
50
324
4,421
9,855
2,135
1,985
555
470
67
360
            Grand  total
114,294

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                      ' a.
               o     /
                •  *!•   '*»'"!    -'	         j
                   i      * • Y—;                ;
                              O;   "
 ooo
       AOO PLANT SIZE - SHCHT TONS PC* OAT
          o  o  o  o  O  O
  -   -   »- '5O«- ZOO- 29OU  JOQt-  J»O»-   4OOU
 900 000 taoo JOOO fSCO §000  3900  4000   MOO
OOOO
•001-  »ooi-   root-   tooi-   •ooi-    10,001-
• OOO  TOOO   9OOO   tOOO   IO.OOO    t t, 4OO
                                                        ~
                                      Numbers in circles
                                      indicate number of
                                      plants in area
                                         Figure 1.   SULFURIC  ACID  MANUFACTURING  CAPACITY   (l9TO)

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The size of the individual acid plants has increased over the years with
some plants being as large as 5000 tons per day.3  Such plants are usually
parts of fertilizer complexes and are captively owned and operated.  Many
of these plants range in age from modern, large, newly constructed facili-
ties to small plants built in the 1930's and 19^0's.  A few of the old
chamber process plants are still in operation but the vast majority of
plants use the more modern and efficient contact process.  Except for
plants built very recently, most existing sulfuric acid plants do not
have adequate pollution control facilities.  Svenson4 pointed out that
many such plants are confronted with a difficult situation in this regard.
Most (85$) of these sulfuric acid plants use brimstone (elemental sulfur)
as the raw material; however, the direct use of pyrites,  smelter gas, and
hydrogen sulfide is increasing.

The operating cost of most contact acid plants is heavily weighted with
raw material costs.  When burning elemental sulfur at $30/ton delivered,
the acid manufacturing cost would consist of approximately $10/ton of acid
for raw material and $3-10/ton for conversion and capital costs, with the
lower value prevailing in new, large units.


Current Consumption

The major end uses of sulfuric acid in the United States in 1970 are shown
in Table 3.  Fertilizer consumption represented 5^$ of the sulfuric acid
consumed.  The long-range growth in acid consumption is estimated to be
about k to 6% per year, which is closely tied to the fertilizer growth
pattern.

Although most of the sulfuric acid consumed in fertilizer manufacture is
concentrated, high quality-material, wet-process phosphoric acid produced
by reacting sulfuric acid with phosphate rock can be made with off-grade
acid.   For the other end uses of sulfuric acid, high purity and high con-
centration are almost mandatory.

As is apparent from Table 3 sulfuric acid has a wide variety of uses, some
of which are based on excellent physical properties, but most on cost.  Sul-
furic acid is very often preferred over other mineral acids, chemicals, or
different process technology because it is the least expensive alternative.
For example,  in phosphate rock acidulations and phosphoric acid manufacture,
the major end use, sulfuric acid is the lowest cost acidulant available.
There was a period in the late I9601s when this was under challenge as sul-
fur prices rose to very high levels; however, the sulfur shortage was short
in duration and supply soon exceeded demand.

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Table 3.  SULFURIC ACID END USE PATTERN (1970)
      End uses
  Thousand
 short tons
(100$ basis)
Fertilizer
  Phosphoric acid products
  Normal superphosphate
Cellulosics
  Rayon
  Cellophane
  Pulp and paper
Petroleum alkylation
Iron and steel pickling
Nonferrous metallurgy
  Uranium ore processing
  Copper leaching
Chemicals
  Ammonium sulfate
    Coke oven
    Synthetic
    Chemical byproduct
  Chlorine drying
  Alum
  Caprolactam
  Dyes and intermediates
  Detergents, synthetic
  Chrome chemicals
  HC1
  HF
  Ti02
  Alcohols
  Other chemicals
Industrial water treatment
Storage batteries
Other processing
   13,750
      520
      1TO
      600
    2,^00
      800

      300
      350
      500
      190
      150
      600
      260
      370
      loo
      150
      880
    1,800
      380
      200
      470
Total
                       10

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Sulfuric acid is an excellent drying agent and is used in such applications
as chlorine and nitric acid drying,  chloral production,  and in nitration
reactions.  The acid is an effective catalyst for many hydrocarbon and
organic chemical syntheses, such as  formations of petroleum alkylate and
olefins and a paraffin, or the Beckman rearrangement of cyclohexane oxime
to caprolactam for nylon fiber manufacture.  It has been suggested that
this characteristic is associated with its strong affinity for water.
Sulfuric acid readily forms organic  sulfates with many hydrocarbons which
are easily hydrolyzed to yield desirable organics; this property is use-
ful in the manufacture of phenol and certain alcohols.

The acid has a high boiling point which limits volatilization losses in
leaching, acidulation, and pickling  operations.  It is commonly specified
as an electrolyte for batteries, used as a bath in cellulose processing,
consumed in the manufacture of chromates, used in hydrogen fluoride pro-
duction from fluorspar, and serves to process ore for titanium dioxide
and uranium manufacture.

Sulfuric acid is made and used in a variety of concentrations which are
usually indicated as follows:

   % H2S04 or °Baume:  The simplest description of sulfuric acid con-
   centration is  H2S04.  However,  because of the distinct relation-
   ship between specific gravity and strength (up to 93$) and the
   simplicity of measuring specific  gravity by hydrometer, most acid
   concentrations up to 93$ are expressed as °Baume.  From 93 to 100$,
   acids are referred to by concentration.

   Monohydrate:  This is 100$ HgS04.

   Oleum:  Acids stronger than 100$. H2S04, containing free S03, are
   called oleums or fuming acids and are usually described in terms
   of S03 content.  For example, a 20$ oleum consists of 20$ S03 and
   80$ H2S04; however, in terms of acid content equivalent, it is ex-
   pressed as 104.50$ H2S04.  Oleum is not considered as a product in
   this study.

Table k shows a few typical acid strengths and their major end uses.3

The major U.S. markets for sulfuric acid are concentrated on the East and
Gulf Coasts.  More than half the acid consumed in the United States is  used
in Florida, Louisiana, Texas, Illinois, and New Jersey; Florida uses one-
fourth of the total.  Because acid transportation costs are relatively  high
(as compared with sulfur), acid production is usually close to the point of
consumption.  (See Figure 1.)
                                    11

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        Table k.   TYPICAL SULFURIC ACID STRENGTHS AND MAJOR END
% HPS04
35-6?
62. 18-
69.65
TT.67

80.00
93-19
98-99

100.00
io'+. 50
106.75
109.00
111.25
113.50
114.63
122.50
°Be
30.8
50-55

60.0

61.3
66.0
66.l*B
66. 3*
66. 2b
_
_
-
-
-
—
°lo oleum
('/' S03
content)

-

-

-
_
-

20
30
4o
50
60
65
100
a
Uses
Batteries
Normal superphosphate and fertilizers

Normal superphosphate and fertilizers; isoproply
and secbutyl alcohols
Copper leaching
Phosphoric acid, Ti02
Phosphoric acid, alkylation, ethyl alcohol, boric
acid
Alkylation
Caprolactam (Beckmann, rearrangement); explosives
and nitrations, chlorine and nitric acid drying;
surf ace -active agents, synthetic petroleum sul-
fonates, and other sulfonations; blending with
weaker acids


a These data do not imply that only the indicted concentrations are used for
  the applications shown.
  At concentrations approaching 100$ H2S04, specific gravity begins to de-
  crease.
Transportation

Location of power plants equipped with sulfur dioxide removal and sulfuric
acid production facilities and the methods of transportation will have a
major influence on abatement sulfuric acid economics (for location of major
U.S. power plants burning coal or oil, see Figure 2).  Rail or truck trans-
portation is normally used for short hauls.  For longer distances, the use
of barges on the inland waterways would be more economical.
                                  i
In a report on the sulfur industry, M. H. Farmer5 presented the following
information about transportation costs:

   Sulfuric acid moves by tank truck, barge and railroad tank car.  Because
   of the much higher transportation costs, when considered on a sulfur
   equivalent basis, sulfuric acid is seldom shipped more than 150 miles.
   Furthermore, acid is normally shipped in approximately 100$ concentra-
   tion even though actual use often involves much lower concentrations,
   ranging down to I0)c and even lower.
                                    12

-------
      o
oi
                                      1  b'   ---.-         ;
                                                         ^      o
                                   -- ---i---
                                                                     ^
                                        -—-'	<  o
                                                  ,     •?>»•

      LESEMO

      POot* StM««TIO« SIZE - UEOAWHTS
       0- SO- «»- iv»- VM- ZV>  1001- »<»-  4001-
      900 000 BOO (000 «OO WOO  HOC 4000  KWO
 oooOOOOOO
 0- SO- <»- iSOw KX>- 2V>-
 x>o ooo ooo tooo rsoo xtoo

oooo
                                  Numbers in circles
                                  indicate number of
                                  plants in area

                                  Shaded area indicates
      loo*. *ooi-       «oo.-   »oou   .0.001    TVA power system
      •OOO TOOO  iOOO   »OOO   lO^OOC   rt. OOO
                           Figure 2.  LOCATION OF MAJOR COAL- AND OIL-FIRED POWER UNITS--19J16

-------
    The importance of transportation costs varies with the value  of  the
    material being transported.   Because sulfur has a low unit value (e.g.,
    in .t/long ton) transportation costs represent a significant part of  the
    delivered price ranging from as little as 10 to 15$ to as  much as 70$.

    Unit trains are feasible only for high-volume movements between  fixed
    points.

    Elemental S can be stored until a sufficient quantity is available for
    economic shipment by barge or bulk carrier.   (This consideration does
    not apply to unit trains which must be kept in constant operation.)

    Sulfuric acid cannot be stored,  except at significant cost and as limited
    by available storage capacity.   This would seem to favor (or  even mandate)
    the establishment of local markets for abatement acid that could be  served
    by owned transport.   A transportation strike of any kind could force the
    shutdown of abatement acid plant—with serious consequences for  an electric
    utility  (and also the consumer).

    Little or no value can be projected for abatement S recovered by a poorly
    located  plant.   This point has  pertinence on a local as well  as  a macro-
    geographical basis.   It is rather obvious that sulfur recovery in Arizona
    in unfavorably located.   It  may  be less obvious that recovery of abate-
    ment S from mine mouth power plants in Eastern States could also be  poorly
    located  with respect to marketing of S values.

    In general,  recovery of abatement S at plants  directly on  the Mississippi
    River system,  or with direct access to marine  transportation,  may be
    considered as  favorable from the  standpoint  of marketing S values.

    Prices at locations  some distance from main  terminals will be higher than
    at the terminals (to take account of local delivery costs).   Hence,  there
    may be specific  locations where  abatement S  can enjoy a good  netback.
    This  is  possible if  local industry could  absorb all of the abatement
    supply.


Handling  Considerations

The storage,  handling,  and transportation of sulfuric  acid require  diligent
care  because the  acid is a hazardous and  toxic  liquid,  but the industry has
over  the  years  developed safe methods  for handling and storing the  acid.
Sulfuric  acid  can be  stored in  mild  steel vessels with an expected  life of
about 25  years.  The  acid  forms  a protective sulfate  film on  steel  surfaces
which inhibits  corrosion.   This  film,  however,  is rapidly deteriorated  where
flow  velocities of  any  appreciable extent exist and in such circumstances mild
steel will corrode  rapidly.   Therefore, for  tank  nozzles,  valves, and pumps,
stainless steel must  be  used.   Sulfuric acid has  a high  density.   The specific
gravity of 98$  H2S04  is  l.SMi- at 60°F  or  a density of  about l^.k-  pounds per
gallon at 60°F.  This high  density must be taken  into  account  in  the  selection
of  storage tanks, pumps, and  barges.

-------
Sulfuric acid exhibits an unusual freezing point curve.   Such a curve is
shown in Figure 3.  The freezing point of 93$ acid is -J00F and the
freezing point of 98$ acid is 35°F.   Although shipment of acid in cold
weather has been satisfactorily accomplished without freezing, the possi-
bility should be recognized and steps taken to avoid it.
THE EXPECTED IMPACT OF ABATEMENT SULFUR AND SULFURIC ACID

Sulfur, its source and its cost, has been the main factor in the economics
of sulfuric acid in recent years.  Until recently, the primary source of
elemental sulfur has been through mining with the Frasch process.   In 1970,
for the first time, the amount of recovered sulfur from sour gas and other
sources surpassed Frasch sulfur production in the western world.  This non-
Frasch sulfur is produced regardless of the market value of sulfur.   M.  C.
Manderson of Arthur D. Little, Inc., wrote in September 19707 that the
pricing philosophy used by the byproduct producers--who must recover sul-
fur irrespective of prevailing price--"will influence the level of world
sulfur prices over the next decade."

The Frasch sulfur industry's problems with sulfur from sour gas and smel-
ters will be magnified with the production of abatement sulfur or sulfuric
acid from utilities.  This point is covered in the principal conclusions
in Farmer's report,  portions of which are as follows:

   Smelters in Arizona are expected to have a continuing excess of S
   value potential over the quantity that can be marketed unless an
   economical way of recovering elemental S is developed.

   Large quantities of S are also expected to be recovered from coal
   gasification or liquefaction.  The location of such operations will
   determine the way in which the recovered S is utilized (or whether
   it can be utilized at all).  However, it is likely that the Chicago
   region . . . will be the most important center for coal conversion,
   with plants located on the Illinois Waterway and Ohio River.

   There will not be a market for all the abatement S that might con-
   ceivably be recovered in useful form.  Attainment of a reasonable
   sales value for abatement S will depend either on stockpiling
   elemental S until it is needed or on avoiding the production of
   more abatement S in useful form than can be absorbed by the market
   at a given time.  The quantity will increase with time.

   The domestic market is now essentially an 'elemental S market,' i.e.,
   the merchanting of acid is less important than the marketing of ele-
   mental S.  However, the market for merchant acid is expected to
   expand progressively during the 1980's and 1990's; i.e., industry
   structure will change.

-------
                                 ° B A U M E 
-------
   The production of elemental S from W. Canadian sour natural gas
   is expected to peak soon after 1980.  However, a surplus of pro-
   duction over domestic demand will continue for some years and
   export potential will be maintained by a stockpile of elemental
   S that is not expected to peak until around 1985-86.  Once this
   peaking occurs, the world balance on a current basis, and exclud-
   ing U.S. abatement S, is expected to swing from oversupply to net
   demand (on a current basis).  Conceptually, U.S. abatement S can
   incrementally fill this supply gap.

   By 1990, it will be important for the U.S. to be able to recover
   abatement S in useful form.  This would help the U.S. to recapture
   its position as the world's leading exporter of elemental S.  If
   the sulfur is not recovered in useful form, a reemergence of ^chemi-
   cal fertilizer^ processes that do not use S and also of relatively
   high cost processes for manufacturing acid and/or elemental S from
   gypsum would be expected.

Furthermore Fanner observed that U.S. Frasch sulfur producers would defend
the Tampa and Gulf Coast markets.  He writes:

   Conceptually, in decreasing order of importance, markets for U.S.
   Frasch sulfur are as follows:

   a.  The Tampa-Bartow area.

   b.  Gulf Coast markets (almost as important as £, but somewhat
       more fragmented.

   c.  Markets adjacent to owned terminals on the Mississippi River
       system and the East Coast.

   d.  Markets adjacent to owned terminals in northern Europe.

   e.  Other U.S.  markets.

   f.  Other foreign markets (e.g.,  in Asia, Latin America).

   Under conditions of world oversupply, it is probable that & and f;
   would be relinquished if the alternative would be to invite greater
   competition and price erosion in the other areas.  In the case of
   £ and d_ the U.S. Frasch producers may be content to keep a reasonable
   volume moving through their own terminals without aggressive market-
   ing that would invite competition to seek alternative outlet in a or
   b.                                                              ~~

   Thus U.S.  Frasch producers  may be expected to defend a, and ]j strenu-
   ously and to maintain sales to £ and d long enough for growth in a
   and b_ to be sufficient to support total production at economic   ~
   levels.

-------
Difficulty in sulfur market pricing was further summarized by J.  M.  Winton
in 19719 when he stated that there are three sulfur price structures in
the United States, (l) Canadian based on f.o.b. Alberta plus rail freight
to the U.S. Midwest,  which is about $20 to $27 per long ton, (2)  Fraach
sulfur which is $3! per long ton in Tampa, and (3) recovered sulfur  with
limited quantities at about $lk to $25 per long ton f.o.b. Southwest re-
finery.  These sulfur price structures have a direct bearing on sulfuric
acid production costs and price.

In regard to market penetration by abatement sulfuric acid,  Farmer's 1971
report had these remarks:

   The total potential for abatement acid systems until 1980 may  be
   equivalent to the  acid recoverable from twenty 800-MW power stations
   operating at 60% load factor on 3 wt "jo S coal.   Thus,  development of
   outlet for acid recoverable from power plant SOX is expected to be
   slow.  It follows  that alternatives to acid recovery will be essential
   for the near term.

   The structures and geography of the elemental sulfur and  acid  industries
   will make it difficult for abatement acid to enter the market.  The
   willingness of existing acid marketers and captive users  to offtake
   abatement acid is  necessary if  a significant outlet is to be developed.
   The incentives for such offtake have not been established yet.  Currently
   the acid manufacturers,  particularly those who merchant industrial acid,
   stand to benefit if abatement S were to enter the market  in elemental
   form but to lose if entry  were  to be as acid.   On the other hand,  a  sig-
   nificant amount of  old acid plant capacity will soon need replacement.
   The shutdown of such capacity may provide the opportunity for  some abate-
   ment acid to enter  the market.

   The willingness of  existing acid marketers and users to offtake abatement
   acid is necessary  if a significant outlet is to be developed.   However,
   this will require  the offtakers to make radical changes in their  business
   operations.   The changes will involve  difficulty and risk,  and  will  not be
   undertaken without  adequate incentives.

   Currently,  the incentives  for offtaking abatement acid are not  clearly
   defined.   In fact,  the abatement acid  potential may be regarded more
   as  a threat than as  an opportunity.  The potential threats are  erosion
   of  acid prices,  loss of  market  position by individual  acid merchanters,
   and premature  obsolescence  of existing investments in  manufacturing
   plants  and  other facilities.  Nevertheless,  many existing acid  plants
   are old,  and  some will be  shut  down by 1975  because economic compliance
   with pollution control regulations  will  not  be  possible.   The latter
   will  supply  an incentive for  arranging to  offtake abatement  acid  instead
   of  building  a  new captive acid  plant.
                                     18

-------
   It must be considered that many acid manufacturers are benefitting
   from today's low prices for elemental sulfur.   If recovery of
   abatement sulfur were to be in elemental form,  such manufacturers
   would continue to enjoy this advantage.   In fact, the delivered
   price of sulfur might well drop further in some locations.   In
   contrast, if recovery occurs in acid form, this will tend to put
   pressure on acid prices in local markets.

   Matching the size of an abatement acid plant to the outlet available
   to an existing acid marketer or consumer may be difficult even if
   the latter shuts down an existing plant.  A single 800-MW plant,
   burning 3 wt % S coal and operating at an average 60% load factor,
   could produce about 1^0,000 ST/yr of 100$ acid.

The recent literature, however, indicates that there may be more optimistic
views within the industry as to the extent and timing of the impact of
abatement acid.  An article in the June 18, 1973,  issue of Chemical and
Engineering News notes that a second sulfur price increase in 1973 putting
the price at $3! per long ton in Florida is a "sharp turnaround from  the
prospect, voiced in recent years, of unending glut."  The article goes on
to describe recent announcements of large new sulfuric acid plants which
would not be consistent with fears of cheap abatement acid coming on  the
market in the foreseeable future.  These new acid facilities, however, may
be considered necessary to meet demands between now and the time that
abatement acid would be available in significant quantities.

L. B. Gettinger of Freeport Minerals pointed out in March 197310 that even
though sulfur was in surplus in 1972, logistically, supplies were tight.
The logistics involve the high transportation cost of moving stockpiled
Canadian sulfur into U.S. and worldwide markets.  Availability also enters
the picture.  Buyers of large quantities of sulfur are reluctant to take
advantage of cutrate prices of sulfur if the supplier cannot meet the
buyer1s total need.  The recovered sulfur from sour gas and the refineries
are of limited quantities at each source and the sources are scattered
geographically.  Buyers are concerned that the brimstone mines would  be
closed down if the price structure would be seriously weakened and without
the mines operating a dependable source of sulfur would not be assured.

It thus appears one inference which can be drawn from the literature  re-
viewed is that although a profitable market for a new source of abatement
sulfuric acid may not be readily available, potential markets for some
amount of acid probably could be developed.  New production, transportation,
and consumption patterns would have to be developed to accommodate the
abatement acid.  The pricing structure would be similar to that of sulfur
recovered from sour gas in that the abatement acid would be sold, not on
the basis of production costs, but on the basis of the maximum price  the
market will allow.  With substantial quantities of abatement acid becoming
available, the price would not be very stable.
                                     19

-------
A final note of caution is worth mentioning.  In cases where local market
competition is expected to be heavy, a potential abatement acid producer
needs to consider necessary measures to protect his share of the market and
to evaluate his alternatives if his outlet is lost.  Long-term contracts,
neutralization or storage facilities,  and emission variances are some of
the means which should be explored before committing to an acid-producing
FGD process.
                                   20

-------
                SULFURIC ACID PRODUCTION CAPACITY OF TVA
TVA is a corporate agency of the United States created by the Tennessee
Valley Authority Act of 1933-  *n addition to various other programs, TVA
operates a system supplying the power requirements for an area of approxi-
mately 80,000 square miles containing about 6 million people.  Except for
direct service by TVA to certain industrial customers and Federal instal-
lations with large or unusual power requirements, TVA power is supplied to
the ultimate consumer by 160 municipalities and rural electric cooperatives
which purchase their power requirements from TVA.  TVA is interconnected
at 26 points with neighboring utility systems.

As of July 1972, the TVA generating system consisted of 29 hydrogenerating
plants with a capacity of 3,185 MW, 11 coal-fired steam-generating plants
in operation with a capacity of 15,5^9 MW, and a small amount of gas- or
oil-fired generating capacity.  In addition, power from Corps of Engineers
dams on the Cumberland River and dams owned by the Aluminum Company of
America on Tennessee River tributaries is made available to TVA under long-
term contracts.  Figure k shows the location of TVA's present generating
facilities and those under construction, as well as the location of the
above Corps of Engineers and Alcoa dams.  The approximate area served by
municipal and cooperative distributors of TVA power is also shown.

Power loads on the TVA system have doubled in the past 10 years and are
expected to continue to increase in the future.  In order to keep pace
with the growing demand it has been necessary to add  substantial capacity
to the generating and transmission system on a regular basis.  Current
plans are based on meeting future additional requirements with nuclear
power stations.  The TVA steam plants are listed in Table 5.

The categories of the various TVA plants are shown in Table 6.
              Table 6.  TVA  POWER GENERATION CAPACITY  (19T2)



Plant type
Coal- fired steam plants
Hydroelectric plants
Nuclear plants
Gas- or oil-fired turbines
Capacity in service
June 30, 19T2
No. of
plants
11
29

2

MW
15,509
3,185


Under construction
or scheduled
No. of
plants
1

k


MW
2,600

11,101

                                     21

-------
                                                                          TENNESSEE  VALLEY  REGION
ro
                                                                                                                        LEGEND
                                                                                                            Steam Plants
                                                                                                             Coal-Fired __
                                                                                                             Nuclear _                     O
                                                                                                            Dams	                     _<%>
                                                                                                             Corps of Engineers Dam	[i
                                                                                                             Aluminum Co. of America Dam	A}
                                                                                                            Under Construction	iui

                                                                                                            Approximate Areas Served
                                                                                                            by Municipal & Cooperative
                                                                                                            Distributors of TVA Power	— i-r~\,
                                                                                                            Coal-fired  Steam Plants      Q
                                                                                                             used In  this study
                                                                                                                         fO»' IOUOCX/N i. »••

                                                                                                                 WOITS B»« ft
                                                                                                       CHIC»J>M*UGA (1 Mi
                                                     ^OWN AT TOP OF SATES
                                               ' ABOVE MEAN SEA LEVEL)
                                      MR_E O  MIL£ 23
                                    PADUCAH
                                           PROFILE OF THE TENNESSEE  RIVER     (ALL MAINSTREAM  DAMS HAVE  NAVIGATION  LOCKS)
                                                   Figure k.   LOCATION OF TVA POWER PLANTS

-------
                                                          Table  5.   TVA  STEAM PLANTS
ro
Steam plant
Watts Bar (coal-fired)
Johns onvi lie"


Widows Creekb



Shawnee
Kingston

Colbert5


John Sevier

Gallatinb

Thomas H, Allen
Paradise13

Bull Bun
Browns Ferry Nuclear
Cumberland'1
Sequoyah Nuclear
Watts Bar Nuclear
Future nuclear plant
SUPPLEMENTAL GAS
TURBINES
Thomas ft. Allen

Colbert
Unit
1-4
1-6
*
7-10b
1-6

7b
8 .
l-10b
1-9

1-4
h
5b
1-4

1-2?
3-4b
1-5.
l-?b
y
i .
l-3d ,
1-2V
1.2*
l-2d
l-2d


1-16
17-20
1-8
Con-
struc-
tion
started
19^0
1949

1956
1950

1958
I960
1951
1951

1951

I960
1952

1953
1956
1956
1959
1965
1962
1967
1968
1970
1972
197^


1970
1971
1971
Units
placed
in
service
1942-45
1951-53

1958-59
1952-54

1961
1965
1953-57
1954-55

1955

1965
1955-57

1956-57
1959
1959
1963
1970
1967
1973-74
1972-73
1975
1977-78
1979-80


1971
1972
1972
Capacity, kWa
Each
unit
60,000
125,000-
147,000
172,800
140,625-
149,850
575,010
550,000
175,000
175,000-
200,000
200,000-
223,250
550,000
200,000-
223,250
300,000
327,600
330,000
704,000
1,150,200
950,000
1,152,000
1,300,000
1,220,580
1,269,900
1,332,000


23,900
59,600
59,500
Total
240,000
1,485,200


1,977,985



1,750,000
1,700,000

1,396,500


823,250

1,255,200

990,000
2,558,200

95O,OOO
3,456,000
2,600,000
2,441,160
2,539,800
2,664,000


382,400
238,400
476,000
Capacity
in
service,
June 30,
1972
240, OOO
1,485,200


1,977,985



1,750,000
1,700,000

1,396,500


823,250

1,255,200

990,000
2,558,200

950,000







382,400


Fuel
Coal
Coal


Coal



Coal
Coal

Coal


Coal

Coal

Coal, gas
Coal

Coal
Nuclear
Coal
Hue lear
Nuclear
Nuclear


Gas, oil
Gas, oil
Gas, oil
24-hr
coal use
(tons)
at full
load
3,040
13,266


16,230



14,040
14,256

11,832


7,392

9,636

7,200
21,016

7,560

22,500








Location
Rhea County, TN
Humphreys County, TN


Jackson County, AL



McCracken County, KY
Roane County, TN

Colbert County, AL


Hawkins County, TN

Stunner County, TN

Shelby County, TN
Muhlenburg County, TN

Anderson County, TN
Limestone County, AL
Stewart County, TN
Hamilton County, TN
Rhea County, TN
Undetermined





                 a Capacity expressed  as maximum generator nameplate rating.
                 b Plants and units used in  this study.
                 
-------
The  total of  15,509 and 2,600 or  18,109 MW of coal-fired capacity is of
interest in this  study because  this capacity represents the potential for
sulfuric acid production.  Of this potential only a portion of this capacity
is used as "base  load"; that is,  the plants are operated continuously ex-
cept  for maintenance.  These are  the newer, larger and more efficient plants.
The other portion is used as "swing load," that is intermittently, or at
times of peak demand.  These are  the older, smaller and less efficient plants.

The TVA plants which would have the greatest potential for the installation of
sulfuric acid production facilities would be the base load coal-fired plants
(except Bull  Run  which burns low-sulfur content coal, 1-5$).  This is based on
the  indication that sulfur dioxide recovery and sulfuric acid-producing facili-
ties would be less competitive  in intermittent service for TVA than limestone
scrubbing or  "throwaway processes" facilities.  Also, sulfur dioxide recovery
and  acid-producing facilities operate more efficiently under continuous duty
with  steady-state conditions.

One  of the relatively new and large units is being equipped with a limestone
scrubbing sulfur  dioxide removal  system.  This plant is the Widows Creek Unit
No.  8 and is  not  considered a potential sulfuric acid producer.  The swing load
plants--Colbert Units 1-4, John Sevier, Johnsonville 1-6, and Kingston—generally
would have limited potential for  acid production.

Therefore, of the total 18,109 MW of coal-fired capacity, 9,979 MW could be con-
sidered for sulfuric acid production.  This analysis, however, is for study pur-
poses and does not take into account process reliability, costs available alter-
natives, or other environmental factors.

Using fiscal  year 1972 (which started July 1, 1971, and ended June JO, 1972)
data  from TVA power plant operation, estimates of possible acid production
from  the 9,979 MW is shown in Table 7.
            Table 7.  ESTIMATE OF ACID PRODUCTION CAPABILITY  (1972)
Steam plant
and unit
Colbert (5)
Cumberland (l-2)
Gallatin (l-if)
Johnsonville (7-10)
Paradise (l-j)
Shawnee (l-lo)
Widows Creek (7)
Capacity,
total MW
550
2600
1255
691
2558
1750
575
Capacity
factor,
%
31-5*
12. Oc
55-9
54-3
66.4
67-6
46.1
%
sulfur-
coal
4.2
3.8
2.8
3-7
4.o
2.8
3.2
Millions
of tons
coal
burned
0.64
0.15°
2.51
1.36
6.61
4.64
1.08
Thousands
of tons
sulfuric acid
produced
59-9
10.7
138.3
108.7
582.5
255-6
71.4
                                                                1227.1
a
Sulfuric acid tonnage in tabulation and elsewhere  in  report  is  on  100$
H2S04 basis unless otherwise noted.
Low factor due to unusual outage.
Was put in operation during later part of year.
                                     2k-

-------
The above acid production was calculated on the basis  that about 9Q% of
the sulfur in the coal is found as sulfur dioxide in the stack gas.   The
remaining sulfur is rejected in the coal mills as pyrites, leaves in the
ash, or is unaccounted for.   For every pound of sulfur oxidized, 2 pounds
of sulfur dioxide are produced and for every pound of sulfur dioxide that
is recovered, 1.53 pounds of sulfuric acid can be produced.  The figures
in the table are based on the foregoing and on the EPA emission standard
for new coal-fired steam plants—1.2 pounds of sulfur dioxide per million
Btu heat input.  Such emission control would require the sulfur dioxide
removal efficiencies shown in Table 8.


               Table 8.  ESTIMATED S02 REMOVAL EFFICIENCY
               Steam plant and unit
               Colbert (5)
               Cumberland  (l-2)
               Gallatin (l-i*-)
               Johnsonville  (f-io)
               Paradise (l-j)
               Shawnee (l-lO)
               Widows Creek  (7)
S02 removal
efficiency
    81
    79
    71
    78
    80
    71
    75
 It  is  thus  determined that  if  TVA had  installed  acid  facilities  on its
 potential sulfuric  acid-producing plants,  TVA would have produced about
 1,200,000 tons of sulfuric  acid  in  fiscal  year 1972.   The entire production
 of  sulfuric acid in the United States  in 1972 was  about Jl million tons;
 therefore,  the TVA production  of sulfuric  acid would  have represented less
 than 14$ of  the national production.

 Based  on tentative operating projections supplied by  TVA1s Division of
 Power  Resource Planning,  an estimate of potential sulfuric acid production
 from TVA's  plants through the  year  1985 was made.   In this forecast, con-
 sideration  was given to the oncoming new plants--coal-fired  and nuclear—
 and the effect of time, age, and maintenance on operating schedules for
 existing plants.  Coal analyses  were based on 1972 data.  The years 1973
 and 197^ were not included because  sufficient lead time is not available
 for the installation of acid production facilities during those years and
 probably not until several years later. The changes  from 1972 to 1975
 reflect the anticipated higher load factors at some of the plants.  The
 forecast of theoretical TVA production is  shown in Table 9.

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           Table 9.   FORECAST OF  POSSIBLE  TVA ACID  PRODUCTION
Stem plant
•nd unit
Colbert
(5)
Cumberland
(1-2)
Gallatin
(1-4)
Johnsonvllle
(7-10)
Paradise
(1-3)
Shawnee
(1-10)
Widows Creek
(7)
Total

1975
121.9
578.7
165-3
135.9

617-3
370.0

92.6
1981.7
estimated production of
1976
112.4
578.7
159-8
135-9

617-3
187.4

86.0
1877.5
1977
121.9
578.7
159-8
135-9

617-3
253-5

92.6
1959-7
197H
112.4
578.7
148.8
120.0

608.4
253.5

86.0
1907.8
1979
103.3
578.7
143.3
111.9

608.4
253-5

86.0
1884.8
pulfuric acid (thousands of tons)
T5B6
121.9
578.7
137.8
111.9

608.4
253.5

86.0
1898.2
1981
112.4
570.5
126.8
95-9

608.4
215.0

79-4
1808.4
1982
103-3
562.2
115-7
71-9

600.0
187.4

72.8
1713.0
19H?
84.4
520.8
99.2
55-9

573-2
137-8

66.1
1537.4
19tfr
65.5
487.8
77.1
48.0

555-6
115-7

59-5
1401.6
198^
84.4
471.2
71.6
4o.o

546.7
99-2

58-9
1366.0
With sulfuric acid production between about JOO and 2000 tons of acid per
day, depending on the size of the plant; sufficient sulfuric acid storage
capacity should be provided at each power plant to provide for upsets in
shipping schedules.   Such upsets could be caused by delays in barge move-
ments due to strikes, floods, or breakdowns, or an inability of the acid
purchasers to receive scheduled shipments due to a variety of reasons.  A
rough determination indicates that storage for 90 days of production should
be provided at each generating station.   This 90-day storage capability
matches that for coal supply, permits shipping in barge quantities,  allows
for reasonable transportation tie-ups and covers the normal seasonal demand
of acid for fertilizer.   Storage would also be required at the acid con-
sumer's location; to be prudent,  this would probably be on the order of
thirty times the daily consumption rate.   The anticipated maximum tonnages
of acid shipped monthly and plant storage facilities are estimated in Table
10.
           Table 10.   ESTIMATED PRODUCTION AND STORAGE VOLUMES
Steam plant
and unit
Colbert (5)
Cumberland (l-2)
Gallatin (l-4)
Johnsonville (/-lo)
Paradise (1-3)
Shawnee (l-io)
Widows Creek (7)
Maximum
monthly production
1000 tons
11.6
55-1
15.T
12.9
58.8
25-7
8.8
5-month storage at
maximum production rates
1000 tons
54.8
165-3
47-1
58.7
176. 4
77-1
26.4
(98% acid)
1000 gallons
4,530
21,520
6,130
5,039
22,970
10,040
3,437
                                    26

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                             MARKET APPROACH
In order to determine the relationship between volume and revenue for
sale of recovered acid,  a model was developed based on the hypothetical
production potential of the TVA power system.  The response criterion of
the model is net sales revenue (or loss if costs for distribution exceed
price) after freight, handling, and marketing costs are deducted from
total income.  For the purpose of this evaluation, a zero dollar value
for the acid has been assumed at the TVA steam plant point of production
to determine net sales revenue.  However,  since actual production cost
will vary with the process used, the size of the generating unit, and
other factors, the net sales revenue would be reduced by the production
cost in order to determine profitability.

Sulfuric acid may be consumed at the point of production, shipped either
across the fence or for longer distances to  the final consumer, or used
in one application and after it becomes contaminated (spent) consumed in
another application.  The manufacturing-marketing schemes are quite com-
plex, but several different situations can be identified.

   1.  Production of acid near the point of use from purchased sulfur.

   2.  Production of acid near the source of sulfur by the basic sul-
       fur producer.

   3.  Marketing of spent or regenerated acid.

   If.  Marketing of acid recovered from pollution abatement processes
       (smelters, refineries, power plants).

The first of  these  situations--production from  purchased  sulfur—is  the
most vulnerable because  the producer  is dependent on an external source
of sulfur.   The acid producer who owns his source of sulfur would consider
the investment in mining  facilities as "sunk" and would take  into account
only  his "out-of-pocket"  costs when meeting  market  price  pressures.   The
arrangements for utilization of  spent acid are  specialized  and  it would
be difficult to place abatement  acid  in this market.

A large  incremental volume  of merchant acid  would result  in serious  price
erosion.  The most  orderly way to  incorporate  the abatement acid into the
market would be  to  replace  the capacity of sulfur-burning sulfuric acid
plants which purchase  sulfur  from external sources.  Therefore,  the  strategy
assumed  for  this  study  is  to  substitute recovered acid for  purchased sulfur.
                                     27

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  MARKET POTENTIAL

  At TVA1s National Fertilizer Development Center,  a  computerized  file of
  worldwide manufacturers of fertilizers and related  products  is maintained;
  a  list of sulfur-burning acid plants  currently in production or  planned
  through 1975  was developed from this  file.   The study was  limited  to a
  10-state area on the  inland waterway  system in the  central United  States.
  The TVA power plants  are located  with access to this waterway.   The states
  selected were Alabama,  Arkansas,  Illinois,  Kentucky, Louisiana,  Mississippi,
  Missouri,  Ohio,  Tennessee,  and Texas.   Also,  Florida was included  as an
  alternate marketing area,  if required.

  Information from the  TVA file provided the  following data  for sulfuric
  acid plants:   company,  location,  annual  capacity, and process type.  Dates
  of construction  and major  capital improvements  were obtained from  other
  sources.3>n   A  total of 61  sulfuric  acid plants  (see Appendix Hi  and H2)
  were identified  as potential  points for  acid  sales.   These points  can be
  roughly  grouped  into  seven market areas:  Memphis, Houston, Chicago, New
  Orleans,  Cincinnati, Columbus,  and Tampa.

  The production from the 61 plants represents  the market potential  for re-
  covered  acid—the market demand is dependent on incentive.   Experience has
  shown  that price, quality, and convenience are  the major factors that
  influence product or process  substitution.  The primary incentive  to pur-
  chase  acid will be cost reduction compared with manufacture from purchased
  sulfur.  In order to estimate the value of acid from sulfur-burning plants,
  it was necessary to determine the basic (avoidable)  costs of acid production.
 Recovered acid could be expected  to enter the market at a price no higher
  than Che costs which could be avoided by shutting down the most inefficient
 plant.   In order to move the total production, some  of the more efficient
 plants would have to be shut down; therefore the price will be  influenced
 by  the volume.
 AVOIDABLE COSTS

 Estimates of avoidable costs for existing sulfur-burning acid plants are
 essential in this study.   Simply stated,  these costs are those which a pro-
 ducer would not incur if he discontinued operation of the plant.   They can
 be delineated as follows:

    Raw material         Sulfur

    Utilities            Electric power,  cooling water,  process water,
                         boiler feed water

    Operating expenses   Labor,  supervision,  payroll overhead

    Capital  costs       Amortized costs  for  maintenance of existing
                         facilities plus amortized  cost  of new capital
                        investment at  end of useful plant life

An  adjustment for  loss of steam generation in  the  acid  plant  is required.

                                     28

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SULFURIC ACID PRODUCTION--DISTRIBUTION MODEL

In the derivation of a model to maximize the net sales  revenue  from sale
of abatement acid,  the following factors were taken into  consideration:

   1.  Trade-off between avoidable costs at 61 acid plants  and
       shipping distances from 7 power plants.

   2.  Effect of sulfur price.

   J.  Effect of volume on net sales revenue.

The combinations of these factors contribute to the complexity  of the
evaluation and use of a computer is almost essential to establish maximum
revenues.  A production-distribution model (similar to a transportation
linear program model) was developed to handle the several variables.  The
objective of the model is to minimize acid costs to the existing sulfuric
acid plant locations while maximizing net sales revenue to TVA.

The program, which is explained in detail in Appendix A,  was designed so
that key technical and economic parameters can be varied.  Table 11 lists
the major parameters and shows typical values.  The following description
of the parameters illustrates the logic incorporated into the model.

The first three parameters in Table 11 relate to sulfur conversion effi-
ciency as a function of plant design; the data are based on a report by
the Chemical Construction Corporation.11  Plants built prior to I960
average 95-5$ conversion and later ones are more efficient, 97$•  Other
technical variables could be included with minor programming effort.
Parameters 4 through 9 are used to calculate  the manufacturing cost of
sulfuric acid; an example is shown in Table  12.  The investment require-
ment is based on information from the Sulphur Institute Bulletin No. 8
and operating costs based on the Chemico report.11  The values for  the
investment parameters  (4-6) in Table 11 are  estimates based on the  initial
capital estimates shown in Table 12.  A regression analysis indicated that
a seven-tenths scale factor would be appropriate for either single  or
multiple plant estimates.  The utility costs  (parameter 7) are fixed per
ton  of sulfuric acid and the operating expenses  (parameter 8) are annualized;
taxes and insurance  (parameter 9) are proportional to initial capital in-
vestment.

In this model., the annual costs are summed and amortized, or averaged,
over all years in the  firm's planning horizon.   The model is constructed
in terms of constant dollars.  Cost streams  are  composed of (l) constant
annual expenditures  for sulfur, utilities,  labor, and maintenance;  (2)
periodic expenditures  for new plants; and  (3) maintenance of existing
facilities which is assumed to grow at a compound rate.  Constant annual
expenditures are treated in the usual  static manner since inflation is
ignored and their first-year value is  the  same as their average value.
Maintenance and  capital  outlays are  treated as  a percent of capital cost.
                                     29

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        Table 11. MAJOR  PARAMETERS  IN MODEL
No.
1
2
3
4
5
6

1
8
9
10
11
12
15
14
15
16
17
18
19
20
Description of variable
Tons of sulfur per ton H^SOj (before YEAR60)
Tons of sulfur per ton HSS04 (after YEAR60)
Year of technology change
Sulfurlc acid plant Investment (if/ton-year)
Capacity for this plant (M tons/year)
Scale factor for determining Investment for
other sized plants
Fixed conversion cost per ton ($/ton)
Fixed annual conversion cost ($/year)
Taxes and Insurance rate
Time preference rate for money
Compound maintenance rate
Economic useful life
Percent HPS04 concentration
Port Sulphur price ($/short ton)
TVA H2S04 price ($/ton H2S04)
Proportion of 330 TPD capacity estimate
Number of steam plants
Number of acid plants
Number of years considered
Years considered
Example
value
•5053
.3006
60.
2T.285
21*7-5
. 734054

.47
116.620
.015
.08
.ok
34.
98.
22.32
0.
1.
7-
61.
l.
75-
Fortran
name
PRE60
POST60
YEAR60
EXPENDO
SIZED
FACTOR

AVC
AFC
T1R
RATEI
RATEM
USELIFE
ACDCON
PS
PA
DEMAND
NPLANTS
JNUM
NY EARS
YEAR(I)
Table VcL.  PRODUCTION COST ESTIMATES FOR SULFURIC ACID
Acid plant
Tons per day
Tons per year, at 330 days/yr
Initial capital, $
Unit capital, $/ton-yr
Operating costs, $
Utility costs
Electric power
Cooling water
Process water
Boiler feed water
Steam (credit)
Labor
Operating
Supervision
Overhead at JOj above
Capital costs, $
Amortized value of maintenance
plus capital outlays at
optimal useful life
(29-41 yr), Ik. 9$
Taxes and Insurance, 1-1/2^
Annual operating cost, $
(excludlnfc sulfur)
Unit cost, $•/ ton (excluding sulfur)
Capacity
50
16,500
909,000
55-09

11,570
6,040
70
980
-io,&ro
47,500
21,100
48,020
135,441


15,635
273,486
16.57
250
82, 500
3,090,000
37.45

57,800
30,200
350
4,910
-54,400
47,500
21,100
48,020
460,410


46,350
662,240
8.03
750
247,500
6,907,000
27.91

172,700
90,300
1,020
14,730
-163,000
47,500
21,100
48,020
1,029,143


103,605
1,365,118
5-52

1,500
495,000
10,905,000
22.03

346,600
181,200
2,100
29,44o
-326,000
47,500
21,100
48,020
1,624,845


163,575
2,138,380
4.32

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The average values of these two components are plotted in Figure 5,  as  a
function of useful life.   It can be seen that average capital costs  de-
cline rather rapidly as useful life increases.  On the other hand, average
maintenance cost increases with the age of the plant.  Optimal useful life
is reached when the added capital cost savings from increasing useful life
by one year just equals the added maintenance savings from shortening use-
ful life by one year.  In Figure 5 this point corresponds to 5^ years and
is based on the minimum point on the average total cost curve.  Note that
the average total cost curve in Figure 5 is very flat over a wide range of
years.  For example, average capital charge of lk>9l° used in Table 12 covers
a range of 29 to kl years.  However, random effects such as:  abrupt physi-
cal, economic, technological, or environmental changes probably have the
dominant influence on timing of plant replacement.

In the present study, existing rather than new plants are of primary con-
cern.  Initial capital expenditures for existing plants are "sunk" cost
and do not directly enter a firm's decision to discontinue present produc-
tion in favor of buying pollution abatement sulfuric acid.  Only avoidable
costs within the firm'a planning horizon would be considered.

As explained in detail in Appendix A, the amortized cost of an existing
plant can be expressed as a function of remaining useful life.  The amor-
tized values of maintenance and capital outlays for a 1-year-old plant are
shown in Figure 6.  The average cost of the existing plant only reflects
maintenance, which increases with age and this is shown in Figure 6 as
"old costs."  It is assumed that the level of maintenance for a plant  of
given age is constant, regardless of the year built.  The added savings
from postponing the building of a new plant is just offset by added main-
tenance costs in the 3^th year, which is the  same optimal useful life  as
for a new plant.  The main difference is that the level of costs decreases
from Ik.9% in Figure 5 to J.1% in Figure 6.  Figure 7 illustrates the  same
sets of curves but for a 30-year-old plant.  Note that optimal useful  life
is still jjij- years, but that the level of cost has risen  to Ik.6% of  initial
capital expenditure.  Note also that in Figure 6  for  a 1-year-old plant,
new cost is only about 1% at Jk years, while  new  cost climbs  to about  11$
in Figure 7 for a 50-year-old plant.  Management  of  a new plant is not very
concerned with replacement alternatives while management of  an old plant
is faced with imminent replacement  alternatives.  This latter group  should
be receptive  to exploring the alternative of  purchasing  pollution abatement
acid because maintenance costs are  high and within a few years a decision
concerning plant modernization will have  to be reached.  The  computer  pro-
gram calculates the  above-mentioned costs based on interest  rate  (8$ of
total investment), maintenance rate (k%> of initial investment compounded
annually at a rate of 1$), and plant age.  The user  is given  the  freedom
of selecting useful  life, although  the program could be modified  to  calcu-
late and use  the optimum value.

The  last eight parameters in Table  11  relate  primarily to  the logistical
portion of  the model.  It is assumed that  the competitive  pricing structure
for  sulfur in the United  States  is  based  on a Gulf  Coast price  plus  trans-
portation cost  to a  given sulfur-burning  sulfuric acid plant.   It is recog-
nized  that Canadian  and other  sources  of  sulfur are  factors  but it  is
assumed  that  these  sources compete  on world price basis.   This  assumption
seems reasonable, since firms buying imported sulfur continually  bargain
against Gulf Coast sources.
                                    31

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ro
               8
               o
               Q.


               O
               O
               a:
OPTIMAL USEFUL

     LIFE
                                                      20              30


                                                      USEFUL LIFE  (YEARS)
                        Figure 5.  AMORTIZED VALUE OF  MAINTENANCE AND CAPITAL OUTLAYS FOR NEW PLANTS

                                     (Assuming 8$  Interest  and h-% Compound Maintenance)

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V)
O
o
ce
UJ
a.
                                                 OPTIMAL USEFUL

                                                      LIFE
                                20           30           40



                                    USEFUL  LIFE  (YEARS)
    Figure 6.  AMORTIZED VALUE OF MAINTENANCE AND CAPITAL OUTIAYS  FOR ONE-YEAR-OLD  PLANTS

                        (Assuming 8%  Interest and  k% Compound Maintenance)

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§
o
u
o
cr
              OPTIMAL USEFUL

                    LIFE
                                         USEFUL  LIFE  (YEARS)
     Figure J.  AMORTIZED VALUE OF MAINTENANCE AND CAPITAL OUTLAYS FOR THIRTY-YEAR-OLD PLANTS

                       (Assuming Q% Interest and h-% Compound Maintenance)

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The model thus estimates a delivered sulfur cost to each acid plant con-
sidered and adds the appropriate sulfur to sulfuric acid conversion costs.
These costs not only depend on a plant's age but also on its production
capacity.  This requires the assumption that obsolete plants will be re-
placed by new plants of the same capacity.  The highest cost plants are
the small, old ones farthest away from the Gulf Coast.

The model calculates transportation costs from each steam plant location
to every potential sulfuric acid market point considered.  While only TVA
steam plants are now presently in the program, competitive utilities could
also be included.  The model allows a proportional selection of up to three
modes of transportation to each acid producer and rates are based on 100$
HaS04.

Estimated handling costs (fixed cost per  ton) associated with each steam
plant, and a TVA f.o.b. acid price are added to the transportation cost,
which results in a delivered price to each acid plant.  Maximum net sales
revenue is derived by adjusting the f.o.b. price of acid until the total
volume is sold.

Another important economic factor is the  cost of pollution abatement facili-
ties that must be added to existing sulfur-burning acid plants.  This cost
could be expected to vary considerably from one plant to another due to
age of plant and process used.  The study11 of several processes prepared
by the Chemical Construction Corporation  shows that costs vary from $1  to
$7 per ton of sulfuric acid.  We have estimated that  the average would  be
about $3 per ton.  This factor is not included in  the program and  in many
cases net revenue results shown later in  the report could be increased  by
this amount.

The program is written so that one or more years can  be  considered simul-
taneously.  For a given year the model examines each  acid plant  to deter-
mine if  that firm would be better off continuing production  or buying
abatement acid.  It also determines the optimum distribution pattern from
each steam plant to each acid plant.  This optimization  is done  in such a
manner as to result in the lowest possible industry cost.  The model can
determine the quantity of acid sold at a  given price  or  the  highest price
which will just move the required amount  from  each steam plant.

The model is written for Control Data Corporation  Kronos timesharing and
can be run from most any location through a standard  telephone.  Further-
more, the program can be made available to anyone  interested in  its use.
Appendix B summarizes  the operating procedure.  The heart of the model  is
a conversational linear programming package called APEX.  The present pro-
gram calculates costs  for each acid plant - steam  plant  combination  (pres-
ently over kOO) and then generates  the required input data  file.   APEX  is
run to optimize  the model and a  second program interprets solutions  as
printed  reports.  An interactive system is also available which  can  dis-
play any or all  of  the  standard  linear programming solution values.
                                    35

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 A  significant part of  the present project is considered to be a demonstra-
 tion of  this highly useful, modern approach to computer service.  Trans-
 ferring  results from one research group  to another, either within the same
 organization or to another organization, is often difficult.  It is possible
 that timesharing could prove an extremely valuable tool in improving this
 transferability.
 FREIGHT RATES AND HANDLING CHARGES

 Freight rates used in the model were obtained from TVA's Navigation Economics
 Branch located in Knoxville, Tennessee.  These rates can be divided into two
 categories:

    1.  Those used for shipping sulfur from Port Sulphur,  Louisiana, to
        various plant locations.  These rates are used as a factor in
        determining the cost of sulfuric acid production at each plant
        location.

    2.  Those rates for shipping sulfuric acid from the seven TVA steam
        plants to each of the various sulfuric acid production locations.
        These rates are a factor in determining the netback to TVA.

 The freight rates for sulfur,  both rail and barge, are shown in Appendix C.
 The rail rates shown are for crude sulfur with the exception of Fort Madison,
 Iowa, where liquid (molten)  sulfur has an established lower rate.   Barge
 rates, which are  negotiable,  have been estimated for liquid sulfur  per net
 ton (short ton).   At some locations truck rates have been used because they
 are lower than rail  rates.   It will be noted that the tables contain a
 column for "percent  barge."   This was  provided so that the cost of  alter-
 nate transportation  could be included  when factors affecting the availa-
 bility of barges  such as river freezing or lack of supply prevent water
 transportation.   This will be  discussed in the various market "cases"  later
 in the report.

 Sulfuric  acid freight rates  are shown  in Appendixes D,  E,  and F.  Appendixes
 D  and E are based on barge shipments.   As mentioned before,  since barge
 rates are  negotiable,  all of  these rates have been estimated.   It should
 be noted  that the barge  rates  to  the phosphate mining locations in  Florida
 have  been  deleted in the appendix tables;  only rail rates  will be used be-
 cause they are  less  than the barge rates.  All barge rates used in  the study
 are complete rates including equipment  costs  and  towing charges.

 In addition to acid  and  sulfur  freight  charges,  there will be charges  for
 handling or moving the materials  at  each plant location.   These costs  have
 not been delineated  in this study due  to the  time  that would  be required
 to obtain  the data.   Handling charges can be  expected to vary considerably
 from one location to  another.   For example, at Fort Madison  the sulfur-
 burning plant is  located  on the waterway and  has its  own docking facilities.
On the other hand, the plant located at  North Little  Rock, Arkansas, is
 located approximately 15 miles  from  the  nearest docking facility.   Plants

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 included  m this  study  are now  incurring handling charges  for movement of
 sulfur for  their  existing operation.   Should  they cease production,  these
 charges would no  longer be incurred.   It is felt that, even  though  the
 tonnage of  sulfuric acid would  be about three times that of  sulfur   the
 lowered cost for  handling sulfuric acid would approximate  the handling
 charges now being experienced by these plants so that, in  effect  the
 costs  are generally equivalent.

An estimated cost of $0.20 per  ton has been programmed into  the model to
 cover  acid  storage at the existing acid plants.  This would  provide  30-
 day storage at the existing sulfuric acid plants.  (Storage  required at
 the steam plants  is assumed to  be included in the steam plant's acid pro-
duction costs. )   The unit cost  is based on estimated capital costs for
 the tanks and auxiliary facilities of $20 per ton.   The investment require-
ment was determined from information obtained in personal  communication
with an acid producer and estimates of tank costs provided by General
American Transportation Corporation.
                                   37

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                            RESULTS OF ANALYSIS
 BASE CASE

 Table  \J> shows  the market pattern for  the abatement sulfuric acid for the
 base situation.  Tables showing variations from the base situation are
 contained  in Appendix G and will be discussed later in the report.  The
 base situation  shows the market pattern and maximum net sales revenue for
 the acid under  the following conditions:  All acid is sold externally;
 acid concentration is set at 98 H2S04; demand, or market potential, is
 assumed to be 100^ of annual capacity of sulfur-burning plants considered,
 using 330 working days per year; sulfur is priced at $25 per long ton f.o.b.
 Port Sulphur, Louisiana; transportation costs for sulfur from Port Sulphur
 to each acid plant location is assumed to equal barge rates shown in Appen-
 dix C with the  exception of Texas locations where no transportation costs
 other than handling costs would be expected to occur.   Sulfuric acid pro-
 duced at each steam plant is shipped entirely by barge.

 The base case market pattern shown in Table 13 is the most economical
 market pattern under these conditions and would allow TVA to obtain maxi-
 mum net sales revenue for its acid.   In this case, maximum net sales
 revenue is .'|>8-76 per ton.   It should be noted that this is the lowest of
 the marginal costs shown for each of the seven steam plants.   If the unit
 price were increased without a change in other variables such as sulfur
 price,  then TVA would not be able to sell all of its acid.   Furthermore,
 if net sales revenue per ton were to be increased and acid sales were re-
 duced,  the production from the Widows Creek plant (which has the lowest net
 sales revenue)  would  be  the  most economical place to cut acid production.
 However,  if operation of the power plant were dependent  on continued
 operation of the abatement  facility,  acid would be produced and sold at a
 lower return or neutralized  for disposal.

 The list  of plant locations  shown is  the most economical number of customers
 where TVA acid  could  be  marketed.  If acid is sold at  these locations,  then
 cost  of sulfuric acid in the 11-state area is minimized  and TVA maximizes
 its net sales revenue.

 Table 13  lists  production capacity and  actual production for  each of the
 sulfuric  acid plant  locations  selected  by the model.   These two columns
 are used  to identify  the sulfuric acid  plant's marginal  capacity versus
 its actual  use.   The  plant which continues  to produce  a  portion of its  own
 acid  is identified as  the "swing" or marginal plant.   In  this case the  swing
 plant is No. 37  located  at East  Chicago,  Indiana,  and would be  the first
 plant to discontinue purchase  of TVA  acid  should delivered  acid  price in-
 crease or delivered sulfur costs decrease.  Appendix I shows  the cost of
 sulfuric acid production for each plant  location used in  the model.

The column headed "sulfur reduction, $"  shows  the  change  in the  marginal
cost of sulfur at any given plant that would  be required  before  it would
become more economical for it  to produce its  own acid.  For instance, if
the plant at Joliet, Illinois  (No. 35) could  reduce its sulfur costs by
$1.2if per short  ton while sulfur costs to all  other plants  remained the
the same,  then it would not receive TVA acid.

                                     38

-------
                                 Table lj.  BASE CASE MARKET  PATTERN FOR TVA H2S04
              SULFUR PRICE = $22.32
vo
                                           (M TONS)
                               ACID O
                             MAXIMUM TVA
                             PRODUCTION ACTUAL
                              CAPACITY  PROD'N
        PLANT
       LOCATION

 2. N.LITTLE ROCK,AR       86       0
28. E.ST.LOUIS,ILL.       153       0
29. MONSANTO,ILL          139       0
30. E.ST.LOUIS,ILL.       239       0
32. CALUMET CITY. ILL      Ml       0
33. JOLIET,ILLINOIS        36       0
35. JOLIET,ILLINOIS       256       0
36. STREATOR,ILL.          35       0
37. E.CHICAGO,IND.        334      72
38. LASALLE,ILLINOIS       35       0
40. JOLIET,ILLINOIS       299       0
41. CALUMET CITY.ILL       30       0
42. CHICAGO HTS,ILL        30       0
46. BATON ROUGE,LA.        90       0
47. NEW ORLEANS.LA.        30       0
54. HAMILTON,OHIO          63       0
55. CINCINNATI,OHIO        30       0
56. CINCINNATI,OHIO        16       0
60. COLUMBUS,OHIO.         18       0
61. COLUMBUS,OH10          24       0

PLANT CAPACITY

PLANT PRODUCTION

MARGINAL ACID COST 
-------
 Acid shipments from each steam plant to the various locations are also
  shown in Table 15.   This is the most economical distribution pattern for
 TVA acid.   Should some other distribution pattern be used,  then TVA would
 have a reduced net  sales revenue or sell less acid.   For instance,  by
 examining a complete listing of the program we can determine the amount
 of  freight TVA would have to absorb in order to sell acid in the large sul-
 furic acid-producing area of Florida.   TVA's net sales  revenue would vary
 from a minus $0.28  per ton for acid shipped from the Widows  Creek Steam
 Plant to a minus  $2.21 per ton for  acid shipped from the Shawnee Steam
 Plant to plant location No.  10 at Pierce,  Florida.

 Plant capacity refers  to sulfuric acid production capabilities for  each
 steam plant as listed  earlier in this  report.   Plant production shows the
 amount produced from the seven steam plants--in this case, 1.98 million tons.


 INFLUENCE OF FREIGHT COSTS

 Acid  freight costs have  the  greatest effect  on  TVA's  net  sales  revenue.
 The base case  assumes  that TVA would be able  to  ship  all  of  its  acid by
 barge.  In all  likelihood, weather and other  external forces would make it
 necessary for TVA to occasionally rely on rail  shipment  to maintain an even
 supply  to its customers.  A variation of the  base case calculated on the
 basis  that 80$ of the acid produced by TVA would be shipped  by barge and
 20% by rail is shown in Appendix Gl.  Total net sales revenue in this var-
 iation would be $12-9 million, a decrease in  total net sales revenue of
 $^.^ million or a reduction of 2$% from the base case.  This decrease re-
 flects the increased cost of rail rates and emphasizes the advantage that
 TVA would have due to the location of its plants on or near the inland water-
 way system.  Tables  A and B in Appendix K show transportation costs for
 sulfuric acid from each steam plant.   The costs shown in these tables can
 also be used to calculate the delivered price of acid for each location.
 For example, the delivered price to  acid plant No. 37 in the base case
 would be $8.76 plus  $3.08, the weighted average barge rate for the acid
 shipped from the three steam plants  involved, or $11.8!+  per ton.


 INFLUENCE OF SULFUR  PRICE

 In order to determine the effect that sulfur prices would have on TVA's
 net  sales revenue, variations of the base  case have been calculated for
 two  additional  levels in sulfur price,  $20 and $30 per long ton,  f.o.b.
 Port  Sulphur, Louisiana.   (The effect of sulfur price on TVA  net sales
 revenue is  shown in Figure 8.)  A reduction in the price of sulfur from
 $25  to $20  results in a decrease of  $2-7 million in TVA's net sales  revenue.
An increase  of  $5  per ton in  the cost of sulfur to $30 per ton would result
 in an  additional $2-7 million in net  sales  revenue to TVA.

-------
          35
(T
UJ
a.
UJ
o
cc

u.
                                                          24
                           TOTAL NET SALES REVENUE

                                 (MILLION DOLLARS)
                Figure 8.  EFFECT OF SULFUR PRICE ON TVA NET SALES REVENUE

-------
  INFLUENCE OF ACID CONCENTRATION

  As pointed out earlier in the report,  one of the sulfur dioxide  recovery
  processes, Monsanto Cat-Ox,  produces 80$ sulfuric acid.   Appendix  G4  shows
  the market distribution pattern for 80$ acid.   It has  been assumed that
  this acid could be marketed  to the fertilizer  industry at the  same price
  (100$ basis) that the 98$ acid could be marketed.   This  may be an  over-
  simplification because the potential market volume for the lower strength
  acid is  less than for the total sulfuric acid  market.  Even at the equiva-
  lent price,  net sales revenue per ton  of sulfuric  acid would decline  about
  $1 from  $8.76 to $7-75,  as compared to the  base  case.  This reduction in
  net sales revenue is a result of increased  transportation cost for the more
  dilute acid..
 EFFECT OF CHANGE  IN NET SALES REVENUE

 The effect  that a change in TVA1s net sales revenue or "price" has on acid
 sales is shown in Figure 9 for the base case.  As expected, acid movement
 declines as the "price" of TVA acid increases.  In order to move all of its
 acid, TVA could charge no more than $8.76 per ton plus freight.  It could
 expect to move only about one-half of its production for $10.  At $20 per
 ton of acid no acid could be sold externally.


 EFFECT OF CHANGE IN DEMAND

 As used in this report, market demand is assumed to equal annual capacity
 based on a 330-day work year.   It is recognized that in actuality this
 would not be true.  Older plants would tend to operate at less than rated
 capacity,  while newer plants would tend to operate at or above rated capac-
 ity.   Thus,  costs  of older plants that are operating below capacity would
 be higher and cost for new plants somewhat lower than those shown in the
 report.   In order  to obtain an accurate estimate of demand,  a more detailed
 survey of potential  users  of abatement acid would be required.   As a means
 of approach to this  problem, a comparison  was made between the total acid
 plant  capacity on  the TVA  list for the United States versus  production
 estimated  for  the  United States  by the Department of Commerce for 1971
 (latest data available).

The Department of  Commerce  estimate  of 29-5 million tons  is  7^.4$ of the
TVA estimated  capacity of 39-4 million  tons.   In order  to illustrate the
effect of changes  in demand, one variation of  the  base  case  was  run  at 75$,
or an annual capacity  based on about 250 days.  Appendix  G5  shows the distri-
bution pattern for this variation  of the base  case.  Note that TVA acid must
be shipped to  26 locations as compared with 20 in  the base case.  Net  sales
revenue is reduced by  slightly over $2 million due  to the necessity  of moving
TVA acid for longer distances to customers who will have  lower acid produc-
tion costs.

-------
UJ
UJ
>
LJ
EC

CO
LJ
to

fc
                .5        1.0        1.5        2.0

               QUANTITY H2S04  (MILLION TONS)
                Figure 9.  DEMAND FOR TVA SULFURIC ACID

-------
  REALISTIC 1975 CASE

  From an industry overview,  the variations  from the base case which  appear
  the most realistic have been combined and  a  1975 solution shown  in  Table 14.
  The production -distribution transportation pattern is  shown  for  a total ex-
  ternal  marketing situation  where  demand is set at 75$,  acid  concentration
  at 98$,  and transportation  costs  for sulfuric  acid based on  20$  rail and
  80$ barge rates.   Under these conditions maximum TVA sales revenue would be
  $5.99 per ton  of acid.   Total net sales revenue would  be $11.9 million.


  INTERNAL USE OF  SULFURIC ACID

 As  an alternative  to total  external marketing  of  sulfuric acid, TVA might
 use a portion  of  the sulfuric  acid at  its  National Fertilizer Development
 Center  at Muscle  Shoals, Alabama.  The abatement  sulfuric acid would be used
  in  the  production  of phosphoric acid for fertilizer manufacture.  Current
 TVA plans indicate the need for purchasing merchant- grade phosphoric acid
  in  the  amount  of approximately 74,000  tons of  P205 in  1975-  The cost to TVA
 for this  phosphoric acid is  estimated  to be $1.25  per unit of P205 in 1975
 and $1.30 per  unit of P205  in  1976 (a  unit is 20 pounds  of P205; merchant-
 grade phosphoric acid contains 54$ P205).

 The  amount of  sulfuric acid  that would be produced from Colbert No.  5 (550 MW)
 and Widows Creek No. 7 (575 MW) would be about 221,000 tons in 1975.  A phos-
 phoric acid plant sized to use this amount of sulfuric acid would produce
 about 74,250 tons per year of P205, or about  225 tons per day.  The capital
 cost of such a plant would be about $8 million.  The production costs in
 dollars per ton of P205 are  shown in Table  15.

 In addition to the savings incurred by producing its own P205,  TVA would re-
 ceive an increased net sales revenue from its  remaining external  acid sales
 as shown earlier.   Assuming  a situation where  sulfur is priced at $25 per
 long ton, f.o.b.  Port Sulphur, Louisiana, and  acid concentration  is  98$, net
 sales revenue would climb from $8.76  per ton where all  acid (1.98 million
 tons) is sold  externally to  $9.27  per ton when  only 1.78 million  tons has  to
 be marketed.  This is  due to (l) increased  freight savings when TVA  acid
 could be shipped  from closer steam plant locations, and (2)  to  the fact  that
 less acid would have to  be sold to the  marginal (low conversion cost) sulfur-
 burning  acid plant.
At  the market price of $1.25  Per ""it f°r P205,  the marginal value of sulfuric
acid used in phosphoric acid  production is $8.56 per  ton after an adjustment
is made for the loss of revenue from reduced external acid sales.  This unit
acid value represents the increased return from use of the acid as compared
with marketing the total volume.  Thus, the total net sales revenue to TVA
under these conditions could  be estimated as follows:

          Savings to TVA for  P205 (74,250 tons/yr)   $ 2,524,000
          Net sales revenue from external sales       16,500,000

          Total net sales revenue                    $19,024,000

-------
                         Table Ik.  REALISTIC MARKET PATTERN TOR TVA H2S04
      SULFUR PRICE « S22.32
                                       (M TONS)
                           ACID CONCENTRATION =  98%    CAPACITY
                         MAXIMUM TVA ACID PRICE WOULD BE S 5.99
                                                   75%
BARGE
80*
 1.
 2.
23.
29.
30.
31.
32.
33.
35.
36.
37.
39.
40.
41.
42.
46.
47.
52.
b4.
55.
06.
57.
58.
59.
60.
61.
        PLANT
       LOCATION
HELENA,ARK.
N.LITTLE ROCK.AR
E.ST.LOUIS,ILL.
MONSANTO,ILL
E.ST.LOUIS,ILL.
MARSEILLES,ILL.
CALUMET CITY,ILL
JOLIET,ILLINOIS
JOLIET,ILLINOIS
STREATOR,ILL.
E.CHICAGO,IND.
LASALLE,ILLINOIS
JOLIET,ILLINOIS
CALUWET CITY,ILL
CHICAGO HTS,ILL
BATON ROUGE,LA.
NErf ORLEANS,LA.
GEISMAR,LA.
HAMILTON,OHIO
CINCINNATI,OHIO
CINCINNATI,OHIO
COLUMBUS,OH10
COLUMBUS,OH10
COLUMBUS,OHIO
COLUMBUS,OH10
COLUMBUS,OH10
PRODUCTION ACTUAL
 CAPACITY  PROD

     101
      64
     115
     104
     179
     157
      83
      27
     192
      26
     250
      26
     224
      22
      22
      67
      22
      58
      47
      22
      12
      48
      40
      40
      13
      18
PLANT CAPACITY
PLANT PRODUCTION

MARGINAL ACID COST (S)

TOTAL PRODUCTION =•    1982
IAL
i'N

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
0
0
0
0
YEAR
BUILT

67
46
37
67
54
62
56
54
45
51
37
37
42
47
60
53
65
68
48
46
38
65
49
55
37
37
SULFUR
REDUC'N
(S)
7.52
15.19
14.64
8.37
9.13
1.62
7.91
23.92
4.53
22.74
0.
29.41
3.88
30. 3 1
24.91
7.79
19.49
3.42
21 .22
39.16
59.82
0.
9.35
0.
37.49
28.09
COLR

101
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2t
0
0
0
0
0
0
0
0
0
0
STEAM PLANT SALES
CU.MB GALL PARA SHAri

0
0
0
0
0
0
0
0
192
0
190
0
I 17
22
22
34
0
0
0
0
0
0
0
0
0
0

0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
44
40
40
13
18

0
0
35
104
179
0
83
27
0
0
0
0
107
0
0
0
0
0
47
22
12
0
0
0
0
0

0
0
0
0
0
157
0
0
0
26
60
26
0
0
0
0
0
0
0
0
0
0
0
0
0
0
WIDC

0
0
70
0
0
0
0
0
0
0
0
0
0
0
0
0
22
0
0
0
0
0
0
0
0
0
JOHN

0
64
0
0
0
0
0
0
0
0
0
0
0
0
0
13
0
58
0
0
0
0
0
0
0
0
                                                    122   579   165   617   270    93   136

                                                    122   579   165   617   270    93   136

                                                   6.65  6.97  6.62  6.84  7.57  5.99  7.01

                                         TOTAL NET SALES REVENUE « S 118721 70

-------
Table 15-  PRODUCTION COSTS FOR PHOSPHORIC ACID PIANT
                   (225 tons/day)
Annual operating costs
Direct cost
Phosphate rock, 31.1$ P205 (68$ BPL)
3.58 tons at $14.25/ ton
Sulfuric acid, transportation cost from
Colbert and Widows Creek,\ 2.7 tons at
$l/ton (truck rate)
Labor, 0.83 man-hr at $6-50
Maintenance, 6$ of plant cost
Electricity, 330 kWh, $0.006/kWh
Cooling water, 5.5 M gal at $0.02/M gal
Supplies, analysis, and handling
Total direct cost
Indirect cost
Insurance and taxes, 2$ of plant cost
Depreciation, 12 yr
Overhead, 100$ labor
Interest, 7-1/2$
Total indirect cost
Total production cost
$/ton P20S

51.00

2.70


5-40
7-20
1.98
0.11
2.20
70-59

2.40
10.00
5.40
4.50
20.22
90.8la
 This  is  equivalent to  $0.91/unit of P205  (unit =
 20  Ib).   The  net savings  would  be about $1.25
 minus $0-91 equals $0.34/unit of P205  or
              $34 per ton  of  P205
              $2,524,000 per  year
                        46

-------
This can be compared to the same situation for the base case where total
net sales revenue amounted to $17,351,886 or a difference of $1,672,000
per year.

If TVA were to enter into an agreement with a commercial fertilizer com-
pany or some other organization that has P205 requirements and jointly
build a phosphoric acid plant,  further savings could be realized due to
economics of scale.   With completion of the Tennessee-Tombigbee canal ex-
pected in 1981, barge shipment of phosphate rock to Muscle Shoals at low
rates will make such an arrangement even more attractive.

-------
                               REFERENCES


 1.  McGlamery, G. G., R. L. Torstrick,  J.  P.  Simpson,  and  J.  F.  Phillips,
    Jr.  Conceptual Design  and Cost  Study—Sulfur  Oxide Removal  from
    Power  Plant  Stack Gas,  Magnesia  Scrubbing -  Regeneration: Production
    of  Concentrated Sulfuric Acid.   Tennessee Valley Authority (under
    contract with the Environmental  Protection Agency).  PB 222  5°9«
    National Technical  Information Service,  Springfield, Virginia 22151.
    May 1975-  372 p.

 2.   Current Industrial  Reports:   Inorganic Fertilizer Materials  and Related
    Acids, January 1973-   U.S.  Department  of Commerce, Bureau of the Census.
    Washington,  D.C.  2023}.   Series:   M28B(73)-1.  March 1973-   6 p.

 3.   Chemical  Economics  Handbook.   Stanford Research Institute, Menlo Park,
     California  9^025-   December 1967.   792.2010A-792.8030G.

 1+.   Svenson,  0.  W.   Sulfuric Acid Supply and Demand in the United States.
     A Shortage of Acid?  Sulphur (London).  No.  100:   6l-6>, May/June 1972.

 5.   Farmer, M. E.  Long  Range Sulfur Supply Demand Model.  Esso Research
     and Engineering  Company (under contract with the Environmental  Protection
     Agency).   PB 208993.   National Technical Information Service, Springfield,
     Virginia   22151-   November 1971.  p. 23.

 6.   Steam-Electric  Plant Construction Cost and Annual  Production Expenses,
     Twenty-Third Annual Supplement-1970.  Federal Power Commission.  U.S.
     Government Printing Office, Washington, D.C.  20402.   FPC S-222
     (Stock No. 1500-0227).   June 1972.   171 p.

 7.   Manderson, M. C.  World Sulfur Outlook into the late 1970's.  Arthur  D.
     Little, Inc.  (Presented at the l60th American Chemical Society National
     Meeting.   Chicago.   September 14-18, 1970).   3A p.

 8.   Farmer.  Op. cit.  Appendix 6.

 9.   Winton, J. M.  Dark Cloud on Sulfur's Horizon.  Chem  Week 108  (6):
     25-27, 30-32, 3^ 36,  February  10,  1971.

10.   Gittinger, L. B.  Sulphur—Outlook for  Producers  Best in Several Years.
     Eng Ming J 17**:   152-154, March 1973.

11.   Engineering Analysis of Snissions  Control Technology  for Sulfuric  Acid
     Manufacturing Processes.  Chemical Construction Corporation (under
     contract with the Environmental Protection Agency).   PB  190393-
     National Technical Information  Service,  Springfield,  Virginia   22151.
     March 1970.

12,   Bixby, D. W., D. L. Rucker, and S.  L. Tisdale.  Fhosphatic  Fertilizers:
     Properties and Processes.  The  Sulphur  Institute.  Washington,  D.C.   20006.
     Technical Bulletin No. 8 (Revised).  October  1966.  85 p.

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                                APPENDIX A
               SULFURIC ACID PRODUCTION--DISTRIBUTION MODEL


The sulfuric acid production-distribution model can be defined using the
following:

   AC(J)    = sulfuric acid production cost for the J   acid plant ($/ton)

   P(J)     = quantity of acid produced by the J   acid plant (thousand
              tons)

   DAP(I,J) = price of sulfuric acid delivered to acid plant J from steam
              plant I ($/ton)

   B(I,J)   = quantity of acid purchased by acid plant J from steam
              plant I (thousand tons)

   D(J)     = sulfuric acid demand for acid plant J (thousand tons)

   K(I)     = sulfuric acid production capacity for steam plant I
              (thousand tons)

The objective of the model is to determine the quantities of acid production
P(J) and acid purchases B(I,J) which minimize sulfuric acid cost to all
sulfur-burning sulfuric acid producers.  In the model each acid producer
is given the option of continuing production at AC(J) $/ton or purchasing
acid from each TVA steam plant at DAP(I,J) $/ton.  The model selects the
production-purchase pattern which minimizes total sulfuric acid cost for
the industry, subject to the constraints that steam plant acid capacities
are not exceeded and sulfuric acid producer demands are met.  The model can
be summarized mathematically as follows, assuming 61 acid plants and 7
steam plants.

                             61          7

                MINIMIZE     I  (AC(J) +£[DAP(I,J)*B(I,J)]}
                            J=l         1=1
subject to:

                      7_
                             J) • D(J)
                      V

                     1=1

-------
                       61
                       £B
-------
Other production costs are defined as

           C(J) = AVC + [AFC/D(J)] + [TIR*EXPEND(J>] -I- AVCE(J)

where

            AVC = fixed conversion cost per ton

            AFC «= fixed annual cost

            TIR = taxes and insurance rate

      EXPEMI(J) = capital expenditure per ton for sulfuric acid plant J

        AVCE(J) = amortized value of annual capital expenditures by
                  producer J.

The predominate reason for defining these cost categories is  to conform
with previous engineering cost studies.

Capital expenditure  for a sulfuric acid plant reflects economies to scale.
An accepted statistical model for estimating capital expenditure curves is

                        ln(EXPENDi) » ln(B) -f AlnD.

which is a log linear model whose coefficients  (A,B) can be  estimated by
least squares, given observations on (EXPEND.,D.)•  The model can  then
be expressed as

                               EXPEND = BDA.

An alternative procedure  used in  engineering cost  studies  is called  the
six-tenth  factor rule of  thumb.   It  can be  expressed mathematically  as

                        EXPEND(J)*D(J) _ (^D(J)^; 6
                          EXPENDO*DO  ~ ^VQ / *

where  (EXPENDO.DO)  are the  known  expenditure and capacity  of a given plant;
and  it  is  desirable to scale  to plant  size  D(J)  and estimate its  expenditure,
EXPEND(J), according to a .6  factor.   This  procedure results in the  following
estimators:

                            A - -.4

                             B = EXPENDO(DO)'4.

Hence,  in  the  model the only  expenditure  estimates required are;

                             EXPENDO,DO,FACTOR.

-------
  The model  was  constructed  using  the  factor rule-of-thumb concept, but
  FACTOR and EXPENDO were  estimated with a  log-linear regression.

  As  is  the  case with most engineering cost studies, the present model
  assumes constant  dollars overtime.  However, the model does deal with
  cash-flow  patterns  in a  more realistic manner, and thus could be readily
  modified to account for  expected rates of inflation.  The fundamental
  problem in dealing  with  alternative cash-flow patterns is expressing
  multivariable  flows as unique, comparable values.  This is done by
  introducing a  time  preference rate for money, i, and discounting cash-
  flow streams to a common equivalent point in time.  If TCF^ is the total
  cash flow  for  year  k,  the present value of this cash-flow pattern (PVCF)
  is:


                                         TCFk
                             PVCF -  >  	—'
        •I
 where H is the firm's planning horizon in years.   The model assumes  an
 infinite planning horizon,  although the accuracy  of cash-flow estimates
 beyond about 40 years is not critical since their added  discounted value
 is essentially zero.   Since persons are more accustomed  to  dealing with
 annual rather than lump-sum present values,  an amortization or equal
 annual mortgage representation of cash-flow patterns  is  desirable.  This
 can be stated mathematically as
                             H
                                AMCOST
                                       = PVCF
 where AMCOST  is a  constant annual cash  flow which is precisely equal to
 the present value  of cash flow  (PVCF).  For very long planning horizons
 it  can be  shown that

                          AMCOST = i PVCF

 or
               TCFk
AMCOST
                                    T
                                    )
All costs referenced to this point have been assumed constant per year and
their sum is now defined as ACF, while time-dependent expenditures are
defined as CF. , hence

                            TCFk = ACF + CFk,

-------
  and it can be shown that,*
                                         V  i CFi
                         AMCOST = ACF +  )  	£_•
                                         L->  /•!_,_.vk
                                        k=l
  A more  formal  presentation  of  the model could  include constant-per-year
  costs  in the cash  flow;  since  without  inflation,  the dynamic and static
  statement of the model yields  identical results.

  Suppose the cash-flow stream can be represented as equal  lump-sum
  expenditures which  occur every T years.  This  might represent the useful
  life of a piece of  equipment or of an  entire plant.  The  above cash- flow
  equation assumes that costs are incurred at the end of the kth period
  Let these periodic  expenditures occur  at the beginning of the period so
  that the amortized  value of these expenditures, AMEXPEND, is

                                     00
                          AMEXPEND =  Y  i EXPEND
                                     L  a+nkT '
                                    k=0 U+1'

  and it  can be  shown that

                          AMEXPEND = AMORT*EXPEND

  where

                                          T
                            AMORT =
 which is the standard amortization formula, often referred to as periodic
 rent of an annuity whose present value is one.  It might be noted that a
 standard approximation used in mathematical analysis is+
 Using the approximation
                              (l+i)T = 1 + Ti.
                              AMORT = -  + i,
                         1'1' Handb°°k °f Che^stry and Phvsics.  (36th edition)


+ "Approximations," Handbook of Chemistry and Physics,  (36th edition)
      >"*'^-^     ^

-------
 one gets the approximation used in most engineering cost studies.   The
 first term is called depreciation, and the second term is called interest
 on investment.   The exact amortization expression is used in the model.

 When equipment  is new,  plant maintenance is at a relatively low level,
 but as plants age maintenance and replacement costs increase.   At some
 point in time it becomes more profitable to stop rebuilding old plants
 and build a new one.   It seems reasonable to estimate maintenance
 patterns with an expotential growth function, which is equivalent to
 compound interest.   Since historical maintenance data on sulfuric acid
 plants were not  available,  the standard  engineering  cost  assumption that
 maintenance is  proportional to initial capital expenditure was  used.  As
 a  result,  annual maintenance expenditure in year k,  MA, ,  is estimated as


                          MAk - M(l+M)k" ^EXPEND,

 where M is the  compound  maintenance rate.   As a result,  the .present value
 of maintenance  over T years,  PVMA(T),  is
                     PVMA(T)  = EXPEND *  Y
 It  can be  shown  that


                     PVMMT) - S^l { 1 -

 Define the useful life of a plant as USELIFE, so that the present value
 of  maintenance for a new plant, PVMANEW, is

                         PVMANEW = PVMA (USELIFE) .

 The present value of maintenance is equivalent to a lump-sum expenditure
 like initial capital investment, so they may be added and amortized to
 get the capital and maintenance cost for a new plant:

                        COSTNEW = AMORT (EXPEND + PVMANEW).

 In  addition to dealing with the cost of new plants, a requirement of the
model is that it handle the cost of existing plants.  Since the capital
expenditure on an existing plant is a sunk cost, it does not enter the
cash flow.  Only avoidable costs are considered.  The amortized cost for
an existing plant, AMCOST, can be defined as

                   AMCOST = COS TOLD + —  COSTNEW
                                      a+1,USELIFE-AGE

-------
where COSTOLD is the amortized or average maintenance and replacement cost
for an existing plant which is AGE years old.   As the managers of this
existing plant look at their cash flow in perpetuity, they expect annual
costs to increase.   When it becomes profitable to stop rebuilding the old
plant and replace it with a new one,  they will.  Hence,  the useful life,
USELIFE, is an economic rather than a physically determined variable,  it
is definitely not an income tax related variable to be confused with'lRS
accepted depreciation rates.  The AMCOST formula reflects not only the
average annual costs of the existing plant but also the amortized cost of
replacing this plant after (USELIFE-AGE) more  years.   However, since
COSTNEW can be avoided for sometime,  it must be discounted to the present.
If an existing plant has just been built,  COSTNEW will be discounted to
virtually zero and  will not materially affect  the estimate of AMCOST.
However, the managers of a very old plant may be seriously considering
such a replacement  decision within the next year or so,  and the discounted
value of the new plant will greatly affect their decision.  The important
thing to keep in mind is that AMCOST is an avoidable cost.  One opportunity
for avoiding it in  the present study is to buy pollution abatement sulfuric
acid.

Since data on maintenance costs of existing sulfuric acid plants of various
ages were not available, it was decided to assume that maintenance on an
existing plant would be approximately the same as that of a new plant of
equivalent AGE.   As a result, the present value of maintenance on the
existing plant,  PVMAOLD, is

                             USELIFE-AGE
                   PVMAOLD =      Y      M(1+M)
                           = PVMA (USELIFE-AGE)* (1+M)AGE,

and the amortized cost of this present value is

                           COSTOLD = i*PVMAOLD.

-------
                                 APPENDIX B
          DATA SETUP AND OPERATING PROCEDURES FOR PROGRAM EXECUTION
 DATA SETUP

 An ASCII sequential data file was developed for the TVA sulfuric acid
 distribution model.  These data include major parameters used in the model
 (Table 5); data for TVA steam plants (Appendix J); capacity data for
 sulfuric acid plants (Appendix H);  and barge and rail rates (Appendices
 D,  E,  and F).  Each line in the data file begins with a specific 5-digit
 line number followed by the standard delimiter (one space).  On pages 59
 through 63 is a listing of this data file which has been named SDAT714.
 Major Parameters in Model

 The major parameters for this model are given in lines 00001 through 00020
 of the data file.   A value must be specified for each of the 20 parameters.
 One or more spaces separate the value from the line number.   The major
 parameter data setup is as follows;
Line
No.
Value of
Parameter
Columns
1-5
00001
00002
00003
00004
00005
00006
00007
00008
00009
00010
7-18
.3053
.3006
60.
27.285
247.5
.734054
.47
116.620
.015
.08
Line
No.
Value of
Parameter
Columns
1-5
00011
00012
00013
00014
00015
00016
00017
00018
00019
00020
7-18
.04
34.
98.
22.32
0.
1.00
7
61
1
75
Data for Steam Plants—Fixed Format

Data for this section of  the file  are  supplied  in the  order  of line  number,
steam plant name, report  name,  steam plant  costs  in  dollars  per ton,  and
sulfuric acid production  capacity  in thousand tons per year  for a  maximum
of 10 years.  Line numbers  for  these data are from 10001  to  100**  in

-------
 increments of one, where ** represents the number of steam plants   A
 maximum of 10 steam plants may be used in this model.  A description of
 these data are as  follows:
Line
No.

1-5
10001
10002
10003
10004
Steam Plant
Name

7-18
Colbert
Cumberland
Gallatin
Paradise
Report
Name

20-23
COLB
CUMB
GALL
PARA
Steam
Plant
Costs
Sulfuric Acid - Prod. Capacit-y
Year
1
Year
2
Year
3
Columns
24-29
.20
.20
.20
.20
30-35
121.9
578.7
165.3
617.3
36-41




42-47




Year
4

48-53




Year
5-9

• * •




Year
10

84-89




Data for Sulfuric Acid Plants--Fixed Format
Sulfuric acid plant data are supplied in the order of line number, plant name,
plant location, year built, annual sulfuric acid production capacity in
thousand tons, rail freight rate for sulfur from Gulf Coast to add plants
in cents per ton, barge freight rate for sulfur from Gulf Coast to acid plant
in cents per ton, and the percent barge assumed in the model   Line numbers
will extend from 20001 to 200** in increments of one  w£ere ** re"preZts
the total number of acid plants.  A maximum of 99 acid plantfcan be used
in this model.  The following example shows the data layout for sulfur c
acid plants;
Line
No.

1-5
20001
20002
20003
20004
Sulfuric Acid
Plant Name

7-26
Arkla Chemical Corp
Olin Corporation
American Plant Food
Borden Chemical
Plant Location
Columns
28-43
Helena, AR
N Little Rock, AR
Houston, TX
Texas City, TX
Year
Built

45-46
67
46
65
53
Ann.
Cap.

48-51
135
86
116
128
Rail
Rate

53-56
1580
1343
1740
1740
Barge
Rate

58-61
260
280
0
0
%
Barge

63-65
100
100
100
100
                                    57

-------
 Barge and Rail Rates—Fixed Format

 The last section of the data  file provides the barge and rail rates for
 shipments of sulfnric acid from TVA steam plants to each of the sulfuric
 acid plants.  There are three data lines for each sulfuric acid plant:
 (first line) 1,500-ton barge  rates from each TVA steam plant, (second
 line) 3,000-ton barge rates from each TVA steam plant, and (third line)
 rail rates  from each TVA steam plant.  The line numbers extend from
 30101 to 3**03 where the second and third digits represent the particular
 acid plant number and ** represents the total number of acid plants.  The
 second and third digits represent acid plant numbers.  The fifth digit
 represents the type rates as described above.  The first figure in each
 line following the line number is the percentage of that type freight used
 in the model.  An example of  these data are shown below:





To acid
Plant 1

To acid
Plant 2

Line
No.
7
/o
Used
FROM STEAM PLANT
1
2
3
4
5
6
7
8
9
10
Columns

1-5
30101
30102
30103
30201
30202
30203

7-9
100
0
0
100
0
0
11-
14
285
265
619
370
350
828
16-
19
245
210
675
315
300
904
21-
24
285
265
782
370
350
997
26-
29
285
265
782
370
350
997
31-
34
195
185
675
275
260
904
36-
39
345
325
805
400
370
1021
41-
44
245
210
675
315
300
852
46-
49






51-
54






56-
59






 PROGRAM EXECUTION
 Program--GENS714

 The  Fortran  program GENS714  will  print  eight  different data  Tables  and/or
 generate  the required APEX input  data  file  after calculating costs  for each
 acid plant,  steam  plant  combination.   (See  complete  listing  of this program
 on pages  6k  through 71.)

 Program execution  begins with a RUN, MA = 56000  command.   In response  to  the
 "ENTER DATA  FILE NAME?"  command,  the present  data file name,  SDAT714,  is
 entered.  The program then responds "IS SPECIAL  REPORT DESIRED?"  A "NO"
 answer to this query causes  the program to  skip  to the question "DO YOU WISH
TO RUN THIS  PROBLEM (YES OR  NO)?" which is  discussed below.   A "YES" answer
 initiates the program response "ENTER SPECIAL REPORT DESIRED #(1-8,  9=ALL,
0=REPORT NAMES)?"  One or all of  the data reports (Tables  1-8)  may  be

-------
 printed at this point.  A  "0"  may  be  entered  to  print  the eight report
 names (shown below).   The  nine choices  for  printing  the  tables are:

      1.  Sulfuric  Acid Plants  Considered  in Model
      2.  Steam Plants  Considered
      3.  Sulfur Freight Rates
      4.  1,500-Ton Barge Rates
      5.  3,000-Ton Barge Rates
      6.  Rail Rates
      7.  Transportation Costs  Used in Model
      8.  Sulfuric  Acid Production  Costs
      9.  All of the Above

 After the final table  is printed,  the program responds "DO YOU WISH TO RUN
 THIS  PROBLEM (YES  OR NO)?" A  "NO" answer terminates execution, whereas a
 "YES" answer causes the program to generate the  APEX input data file
 called TAPE3.   This file is to be  saved under a  permanent file named LUCK714,


 Program--GOG714

 After the APEX input data  file has been saved as a permanent  file  (LUCK714)
 the linear programming  formulation is ready to be initiated.   (See complete
 listing of this program on page 72.)

 The actual linear  programming  formulation of  the model takes  a slightly
 different form from that described earlier.   The activities of the model
 are defined  as:

          XO  =  Aggregate quantity of sulfur  purchased by  the sulfur-
               burning  sulfuric  acid plants  considered

       X1(J)  =  Quantity  of  sulfur shipped  from Port Sulphur to acid
               producer  J

       X2(J)  =  Quantity  of  sulfuric acid produced by  acid plant J

    X3(I,J)  =  Quantity  of  sulfuric acid purchased from steam  plant I
               by acid producer  J

          X4  =  Total quantity of TVA acid  sold.

The objective  of the model is  to determine  values of the above quantities
which  minimize  the  functional

      61                             7

     £[s
-------
 term  is defined earlier.  This minimization is subject to the following
 constraints:

                61

      (0)  XO -  ^ Xl(J) = 0

               J=l

      (1)  X(J) -  F(J) X2(J) = 0      (J=l,2,...,61)

                   7
      (2)  X2(J) + £ X3(I,J) = D(J)      (J=l,2	61)

                  1=1

            61
      (3)    £ X3(I,J) s K(I)      (1-1,2,....7)'

          J=l

               61 7

      (4)  X4 - £  ^ X3(I,J) = 0.

              J=l 1=1

 The linear  programming model is solved with Control Data Corporation's
 APEX  optimizer, which uses a modified MPS input-output format.  The main
 difference  in standard MPS and APEX  format is that 10-character names,
 which may begin with numbers, are acceptable by APEX.  The naming  scheme
 for both rows and columns is the 5-digit  format

                                  L  JJII,

 where L is  the node level corresponding to the above  five constraint  sets
 or the five XL activity definitions

                              L = 0,1,2,3,4.

 The formula for a given name is

                         (10000*L) + (100*J) + I,

 where J=0 or 1=0  where ranges of these indicies are not implied.   A
 primary purpose of the program GENS  is to generate this MPS  format
 on TAPE3 for input to APEX.

A unique feature  of interactive APEX is the option that solutions  may
 be placed in very compact Fortran files.  This feature is used in
 generating  the special report for the model.  This APEX operation  is
 triggered by typing "-GOG714" or, if the APEX input data file name is
                                    60

-------
other than LUCK714, operation is begun by typing "-GOG714 (LUCK714=input
data file name)."

The results of this run are saved by the program in a direct access solution
file called SOL714.  After the solution file has been generated by APEX  a
second program can be used to list the entire MPS report, or to selectively
list various parts of the total solution, using masking options.


Program--REPT714

A special report (Appendix Gl) on the Market Pattern for H2504 can be
printed by using the program REPT714.  This Fortran program is a report
writer that reads the results from the solution file SOL714 and prints
the special report.  (See a complete listing of this program on pages
73 through 75.)
                                     61

-------
SDAT714 -- PAGE   I
12.31.23
73/08/29
OOOO1
00002
00003
00004
00005
00006
00007
00008
00009
00010
000 t 1
000)2
00013
00014
0001 5
00016
00017
00018
00019
00020
10001
10002
10003
10004
10005
10006
10007
20001
20002
20003
20004
20005
20006
20007
20008
20009
20010
2001 1
20012
20013
20014
20015
20016
20017
20018
20019
20020
20021
20022
20023
20024
20025
20026
20027
20028
.3053
.3006
60.
27.285
247.5
.734054
.47
1 16.620
.015
• 08
• 04
34.
98.
22.32
0.
1.00
7
61
1
75
COLBERT C0LB
CUMBERLAND CUMB
GALLATIN GALL
PARADI SE PARA
SHAWM EE SHAW
WID0WS CREEK WI DC
J0HNSONVILLE J0HN
ARKLA CHEMICAL C0PR.
OLIN CORPORATION
AMERICAN PLANT F00D
B0RDEN CHEMICAL IND.
E.I .DUP0NT DE NEM
E.I .DUP0NT DE NEM
OLIN C0HP0RATI0N
OLIN CORP0RATI0N
OLIN CORPORATION
AGRIC0 CH EM- WILLIAMS
B0RDEN CHEMICAL IND.
CF INDUSTRI ES,INC.
CF INDUSTRI ES,INC.
CF INDUSTRIES, INC.
CF INDUSTRIES, INC.
CITIES SERVICE C0
C0NSERVE»INC.
FARMLAND INDUSTRIES
FARMLAND INDUSTRIES
W.R.GRACE A C0.
W.R.GRACE & C0.
CHEMICALS, INC.
CHEMICALS, INC.
R0YSTER C0MPANY
SWIFT * COMPANY
U.S.S.AGRI-CHEM.
U.S.S.AGRI-CHEM.
ALLIED CHEMICAL CORP
.20 121.9
.20 578.7
.20 165.3
.20 617.3
.20 270.0
,20 92.6
.20 135.9
HELENA, ARK.
N. LITTLE R0CK,AR
H0UST0N, TEXAS
TEXAS CITY, TEXAS
H0UST0N, TEXAS
LAP0RTE, TEXAS
BEAUM0NT,TX
PASADENA, TEX AS
PASADENA, TEXAS
PIERCE, FLORIDA
PALMETT0, FLORIDA
B0NNIE, FLA.
PLANT CITY, FLA.
PLANT CITY, FLA.
PIERCE, FLORIDA
TAMPA, FLORIDA
NICHOLS, FLORIDA
PIERCE, FLORIDA
GREENBAY,FLA.
BART0W,FLA.
BART0W, FLA.
BART0W, FLORIDA
BONNIE, FLA.
PIERCE, FLORIDA
BAR TOW, FLA.
BARTOW, FLA.
FOKT MEADE,FLA.
E. ST. LOUIS, ILL.


67
46
65
53
61
60
57
65
65
55
66
55
55
55
55
59
73
61
66
65
60
65
63
65
48
60
62
37


135
86
1 16
128
300
350
180
222
150
718
450
1486
419 .
660
428
928
400
478
748
330
700
980
594
278
274
376
492
Ib3


580
343
740
740
740
740
740
740
740
129
129
129
129
129
129
129
129
129
129
129
129
129
129
129
129
129
129
580


260
280
0
0
0
0
0
0
0
490
565
565
410
410
490
185
490
490
565
565
565
565
565
490
565
565
600
375


100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
too
100
100
100
100
too
100
100
100
100
                              62

-------
SDAT714 -- PAGE  2
                      12.31.23
73/08/29
20029
20030
20031
20032
20033
20034
20035
20036
20037
20038
20039
20040
20041
20042
20043
20044
20045
20046
20047
20048
20049
20050
20051
20052
20053
20054
20055
20056
20057
200 5S
20059
20060
20061
30101
30102
30103
30201
30202
30203
30301
30302
30303
30401
30402
30403
30501
30502
30503
30601
30602
30603
30701
30702
30703
30801
AMER. ZINC* LEAD* SMELT
MONSANTO COMPANY
AG PRODUCTS C0
ALLIED CHEMICAL CORP
AMERICAN CYANAMID
AHCC CHEMICAL
ARMY AMMUNITION PLT
BORDEN CHEMICAL IND.
E.I .DUPONT DE NEM
MATTHI ESSEN & HEGLEK
MOBIL 01 L C0MPANY
OLIN CORPORATION
SWI FT AND COMPANY
U.S.S.AGR1-CHEM.
AGRICO CHEM- WILLIAMS
AGKI PRODUCTS(BEKER)
ALLIED CHEMICAL C0HP
ALLIED CHEMICAL CORP
AMERI
CAN
COASTAL
COASTAL
CYANAMID
CHEMICAL
CHEMICAL
E.I .DUPONT DE
FREEPORT
NEM
MINERALS
RUBICON
STAUFFER
AMERI
CAN
CHEM I
CAL CO
CYANAMID
INTERNATIONAL
MOBIL
AMER.
AMERI
AMERI
MINER.
OIL COMPANY
ZINC*LEAD&SMELT
CAN
CAN
ZINC
ZINC
OXIDE
0F ILL
BORDEN CHEMICAL IND.
FARMERS
100
0
0
too
0
0
100
0
0 1
too
0
0 1
100
0
0 1
100
0
0 1
100
0
285
265
619
370
350
828
590
540
322
590
540
322
590
540
322
590
540
322
550
50 b
0 1229
too
590
FERTILIZER
245
210
675
315
300
904
530
435
1344
530
4B5
1344
530
485
1344
530
485
1344
490
450
1275
530
285
265
782
370
350
997
590
540
1438 1
590
540
1438 1
590
540
1438 1
590
540
1438 1
550
505
1344 1
590
M0NSANT0*ILL 67
E«ST.L0UIS*1LL. 54
MARSEILLES.ILL. 62
CALUMET CITY*1LL 56
J0LIET* ILLINOIS 54
FORT MADISON* I A. 68
J0LI ET*ILLIN0IS 45
STREAT0R,ILL« 51
E.CHICAGO, IND. 37
LASALLE/ILL1N0IS 37
DEPUE,ILLIN0IS 67
J0LIET*ILLIN0I S 42
CALUMET CITY* ILL 47
CHICAGO HTS*ILL 60
DONALD *VLLE*LA. 70
TAFT*LA 65
GEISMAR/LA. 67
BATON ROUGEjLA
NEW.ORLEANS*LA
PASCAGOULA*MI
PASCAGOULA*MI
BURN3IDE
*LA.
UNCLE SAM* LA.
GEISMAR*LA.
BAT0N R0UGE*LA
HAMILTON
*0HI0
CINCINNATI*OHI
CINCINNATI *0HI
COLUMBUS
COLUMBUS
CBLUMBUS
COLUMBUS
COLUMBUS
235 195
265 185
782 675
370 275
350 260
997 904
590 490
540 450
438 1344
59 0 49 0
540 450
438 1344
590 490
540 450
438 1344
59 0 49 0
540 450
438 1344
550 450
505 415
368 1299
590 490
>0HI0
*0HI0
*0HI0
*0HI0
*0HI0
345
325
805
400
370
1021
655
600
53
. 65
58
72
67
68
68
. 65
48
0 46
0 38
65
49
55
37
37
245
210
675
315
300
852
530
485
139
239
210
111
36
449
256
35
334
35
359
299
30
30
1224
429
450
90
30
210
495
450
1632
78
750
63
30
16
64
53
54
18
24








1580
1580
1640
1640
1640
938
1640
1640
1640
1640
1640
1640
1640
1640
820
820
820
820
820
1023
1023
820
820
820
820
1700
1700
1700
1700
1700
1 700
1700
1700








375
375
475
505
485
450
485
655
505
470
470
485
505
505
110
110
1 10
120
too
135
135
1 10
1 10
1 10
120
670
485
485
1085
1085
1085
1085
1085








100
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100
100
100
100
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100
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100
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100
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too
too
100
100








1462 1344
655
600
1462 1
655
600
1462 1
655
600
1462 1
615
565
530
485
344
530
485
344
530
485
344
490
450












































1368 1275
655
530





-------
SDAT714 -- PAGE  3
12.31.23
                                   73/08/H9
30H02
30H03
.109 0 1
30902
30903
31003
31103
31203
31303
31403
31503
31601
31602
31603
31703
31803
31903
32003
32103
32203
32303
32403
32503
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32703
32601
32802
32803
32901
32902
32903
33001
33002
33003
33101
33102
33103
33201
33202
33203
33301
33302
33303
33401
33402
33403
33501
33502
33503
33601
33602
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33701
33702
33703
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100
100
100
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100
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100
100
100
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100
100
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100
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540
1322


1






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126
126
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106
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10OO





















1


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106
126
126
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250
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1603
1


1


1

1
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335
603
320
295
547
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560
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520
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1210
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290
270
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160
155
713
160
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713
160
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250
240
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265
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1235
285
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1 462
1106
1 106
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1082
1082
1 106
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300
280
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300
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1603
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1 189
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1 189
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320
300
149 4
31 5
290
1494
260
245
1441
315
29 O
1494
510
490
1441
325
300
1494
                      6k

-------
SDAT7I4 -- PACE  A
                      12.31,23
73/08/29
33801
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465
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416
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220
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£30
1235
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355
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445
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355
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451
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1276
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395
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390
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1603
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470
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470
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600
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470
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SIS
470
1061
SIS
470
1061
596
566
826
390
360
826
390
285
265
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280
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1441
31 5
290
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320
300
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325
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1159
405
370
1136
405
370
977
405
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370
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485
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977
405
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405
370
1018
405
370
917
405
370
977
486
466
826
280
260
826
280

-------
SDAT714 -- PAGE  5
12.31.23
73/08/29
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35603
35701
35702
35703
35801
35802
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35901
35902
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36001
36002
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36102
36103
0
0
too
0
0
100
0
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100
0
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too
0
0
100
0
0
305
912
965
930
1603
965
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965
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1603
965
930
1603
965
930
1603
260
761
910
885
1439
910
885
1439
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885
1439
910
885
1439
910
885
1439
300
719
965
930
1358
965
930
1358
965
930
1358
965
930
1358
965
930
1358
210
675
965
930
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965
930
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965
930
1304
965
930
1304
965
930
1304
230
1276
360
830
1467
860
830
1467
860
830
1467
860
830
1467
860
830
1467
360
826
1030
1000
1520
1030
1000
1520
1030
1000
1520
1030
1000
1520
1030
1000
1520
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826
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885
1494
910
885
1494
9 10
885
1494
910
885
1494
910
885
1494
LENGTH »  237 LINES
                        66

-------
 GENS714  —  PAGE  I
                                   73/08/29
 THIS F0RTRAN PROGRAM  PRINTS DATA REPORTS AND GENERATES MPS
 DIMENSION AND DATA  STATEMENTS
  PROGRAM GENSC I NPUT, 0UTPUT. TAPE1 , TAPES)
  DIMENSION DC100>,SCIOO>,TC10,100),STMCAP<10,10>,Ctmn
            F<100),ILOC<2,100),RAILLC»PS
  READC1,)LC»PA
  READC 1*>LC* DEMAND
  READC1,>LC,NPLANTS
  READC 1,)LC,JNUM
  READC 1*>LC»NYEARS
  READC1,)LC,CYEARCI
  D0 2 L^l,NY EARS
2 YEAR19CL)*YEARCL) +
         STEAM PLANT  DATA
          D0  36 I«1*NPLANTS
          READC1,35)NN0CI>,NNAMC1,I),NNAMC2,I),NRPTNAMU
          1N0(J),INAMCI,J),INAM(2,J>*IL0CC1,J),XL0CC2»J)*

-------
 GENS714 -- PAGE  2
                       13.04.59
                                    73/08/29
                         GT. Y EAK60) G0  T0 96
        96
        31
00650*    YEAHBLTCJ),U,BAKGCJ),PERt3ARS2A10, 1X.A10*A6* 1X*F2«0*3< 1X*F4.0), 1X,F3.0)
          D(J)=D(J)*DEMAND
        SULTCSTU)=C«
        9 IFCYEAKDLKJ)
          FCJ)=PKE60
          GO  TO  31
          FCJ)=POST60
          CONTINUE
          EXP=FACT0R-I.
          ALPHA=EXPENDO/* » I * 1 «NPLANTS)
          F0RMAT( IX, 12, 12* 1X*F3.0* 10C1X*F4«0))
          IFL
          DO 901 I=1*NPLANTS
          BAR1(I*J)=TEMRATE(I)
          G0 TO 48
          D0 902 1=I*NPLANTS
          BAR2( I , J) =TEMRATE< I >
          G0 TO 48
          D0 903 I=1»NPLANTS
          RAILU*J)=TEMRATE
                SPECIAL REPORTS
                          SPECIAL REP0RT DESIRED (YES 0R N0)>
                              T0  199
01140
011.50
01 160
01170
01180***
01 190***
          PRINT 550
          F0RMATC//37HIS
          READ*ANSW
          IF(ANSW.E0.2HN0)GO
          PRINT 105
          FQKMAT<48HENTER  SPECIAL REP0RT *C1-8*9=ALL,0"REP0RT  NAMES)!
          RCAD,N0REPT
          IF(N0REPT.EQ.O)G0  T0  106
          G0 T0 < 107»3»6»12» 14* 170* 521/ 180*1 14>*N0REPT

         REPORT NAMES
                                  68

-------
GENS714 -- PAGE  3
                       13.04.59
                                   73/08/29
01200  106
01210  115
01220+
01830+
01240+
01250+
01260+
01270+
01280+
01290
01300  114
01310***
01320*** REPORT
01330  107 J=l
01340  137
01350  131
01360+
01370+
01380
01390  132
01400+
01410  134
01420
01430
01440
01450
01460
01470  139
       136
       333
          PRINT  115
          FOKMAT11HREPCRT NAME/2H1•,IX,
          40HSULFURIC ACID PLANTS CONSIDERED IN M0DEL/2H2., IX,
          23HSTEAM PLANTS CONSIDERED/2H3.,1X,20HSULFUR FRE  GHT RATES/
          2H4.,1X,20H1500 T0N  BARGE RATES/2H5.,IX,     ^"GHT RATES/
          20H3000 T0N BARGE RATES/2H6.,IX,10HRAIL RATES/2H7.,
          1X,34HTRANSP0RTATI0N C0STS USED IN M0DEL/2H8.,
          1X,30HSULFUR1C ACID  PR0DUCTI0N C0STS/2H9 ., IX,
          16HALL 0F THE AB0VE//)
          G0 TO  116
          NALL=0
                l\
      233
       60
01480
01490
01500
01510
01520
01530
01540
01550***
01560***
01570
01580
01590
01600+
01610+
0162O
01630
01640
01650+
01660
01670
01680
01690
01700
01710
01720
01730
01740
PRINT  131
F0RMAT
K=7
PRINT  134,IN0(J),INAMC1,J),INAM(2,J),1L0CC1,J),IL0C<2,J>,
YEARBLT
F0RMATCI2,2H.  ,2A10,2X,A10,A6,3X,2H19,F2.0,3X,F4.0)
K=K+1
IF(J.EO.JNUM)G0  T0  333
J=J+1
IFCK.EQ.6DG0  TO 139
G0 TO  132
PRINT  136  $ G0 T0 137
F0RMAT(///>
J=65-K
DO 233 1=1,J
PRINT  60
F0RMATC1H  )
IF(NALL.EQ.O)G0  T0  3
G0 T0  50
         REP0RT *2
        3 J=l
        7 PRINT IUCYEAR190),I = 1,NYEARS>
       11 F0RMAT
          PRINT 60
       80
      120
      130
PRINT 80,NNO(J),NNAM<1,J),NNAM(2,J),NRPTNAM(J),C0STCJ>,
2,10F8.1)

IF(J.EQ.NPLANTS>G0 T0 130
J=J+1
IF(K*EQ.61)G0  T0 120
G0 T0 S
PRINT 136 $ G0 T0 7
J=65-K
D0 140 I«1,J

-------
GENS714 -- PAGE   A
                13*04.59
                                   73/08/29
01750 140
01760
01770
01780***
01790*** REPORT
01000   6 Jal
01810   8
01820  45
OB83O+
01840+
01650
01860  S3
01870  49
01880
01890
01900
01910
01920
01930  52
01940  51
01950
01960  54
01970
01980
01990***
02000*** REPORT
02010  12 J=l
       13
      160
          PRINT  60
          IF*IL0C*S(J>*BARGCJ),PERBARS(J>
          F0RMATC2*2H. * A10* A6»2C 4X/F4.0) 7X»F3. 0)
                            52
                             8
    IF
F0RMAT//>

PRINT 60
K=7
SUMsO.O
00 440 I*1.NPLANTS
SUM=SUM+BAR1CI»J)
IF*
 64 F0RMATC12*2H. * A10* A6» 1X*F4.O» IX* 10F6.0>
442
 71
 75

 78
          IF(J.EO.JNUM)G0  T0 75
          J=J+1
          IFCK.EQ.6DG0
          G0  T0  72
          PRINT  136  S  G0
          J = 65-K
          00  78  I=I*J
          PRINT  60
          IFG0
          G0  T0  50
                  T0 71
                   T0  13
                     TO  14
02250***
02260*** REP0RT  *5
02270   14 Jal
        15 PRINT  150*(NRPTNAM(M)»M=1»NPLANTS)
      ISO F0RMAT
-------
GENS714 --  PAGE
             13.04. 59
                                   73/08/29
02300*
02310
02320
02330  124
02340
02350  443
02360
02370
02380+
02390
02400
02410  444
02420
02430
02440  122
02450  121
02460
02470  123
02480
02490
02500***
0251O*** REP0RT
02520  170 J=l
02530  172
02540  171
02550+
02560
02570
       173
SUM=0.0
D0 43 I =1»NPLANTS
SUM = SUM+DAR2U,J>
IF(SUM.EQ.O.O)G0 T0  444
PRINT 64,IN0,IL0C<1,J),IL0C(2,J>,PERFSTM<2,J>,
,Isl,NPLANTS>
K=K+1
IFCJ.EQ.JNUM)G0 T0  121
J=J+1
IF(K.EQ.61)G0 T0 122
G0 T0 124
PRINT 136 $ G0 T0  15
J=65-K
00 123 I=1,J
PRINT 60
IF(NALL.E0.0)G0 T0  170
G0 T0 50
PRINT  171*(NRPTNAM(M)*M=1»NPLANTS)
F0RMAT//)
PRINT  60
K = 7
SUM=0.0
D0 445 I=J*NPLANTS
SUM=SUM+RAILCI,J>
IF,IL0C<2,J),PERFSTMO,J>,
(RAIL(I»J),I=1,NPLANTS)
K=K+1
IF(J.EQ.JNUM)G0 T0  174
J=J+1
IF^K.EQ.61)00 T0  175
G0 TO  173
PRINT  136 $ G0 T0 172
J»6S-K
00 176 1=1,J
PRINT  60
IF(NALL.EQ.O)G0 TO  521
G0 T0  50
                                                               PLANTS/
0258O
02590
02600 445
0261O
02620
02630+
02640
02650
02660 446
02670
02680
02690 175
02700 174
02710
02720 176
02730
02740
02750***
02760*** REPORT  *7
02770 521 J=l
02780 522 PRINT  523*CNRPTNAM(M>*M=1*NPLANTS)
02790 523 F0RMAT/l5X»34HTRANSP0RTATI0N C0STS USED IN M0DEL//39X*
02800+    12HSTEAM  PLANTS/IX*1H*»2X*8HLOCATI0N*10X,10<2X>A4)//)
02810     PRINT  60
02820     K=»7
02830 524 SUM=0.0
02840     00  525 1=1*NPLANTS
                                  71

-------
GENS714 --  PAGE  6
                        13.04.59
                           73/08/29
02850  525
02860
02870
02880  564
02890
02900
02910  526
02980
02930
02940  528
02950  527
02960
02970  529
02980
02990
03000***
03010***  REP0RT
03020  180 J=l
03030  190
       81
            SUM»SUM+TU*J>
            IFCSUM.EQ.0.0>G0 T0 526
            PRINT 564*IN0(J)>IL0C(1»J)*IL0C(2,J),(T(I*J).
            F0RMATCI2*2H. * AID,A6*2X*10F6.0)
            K*K+1
            IFG0 T0 180
            G0  T0  50
                                                I»l,NPLANTS>
       84
       83
       89
      210

      133
 03040
 03050*
 03060+
 03070
 03080
 03090
 03100*
 03110
 03120
 03130
 03140
 03150
 03160
 03170
 03180
 03190
 03200
 03210***
 03220***
 03230***
 03240 199
 03250   4
 03260
 03270
 03280
 03290
 03300
 03310
 03320
 03330
 03340
 03350
 0336O
 03370
03380
03390
      900
      910
      920
      930

       30
      90
 PRINT  81»,IL0CCljJ)*IL0C<2»J>»F»
 (C(J*I)*T0TC0ST(J*I)*I=1*NYEARS)
 F0RMAT(I2»2H.  *A10*A6*3X*F5.4.4X*10CF6.2*2X»F6.2) )
 K=K+1
 IF(J.EQ.JNUM)GO T0 210
 JaJ+1
 IF(K.EG.61)60  T0  89
 G0 T0  84
 PRINT  136 S G0 T0 190
 J = 65-K
 D0 133 1=1*J
 PRINT  60

GENERATE MPS FILE

 PRINT  4
 F0RMAT(/43HD0  Y0U WISH  T0 RUN THIS PROBLEM (YES 0R N0))
 READ/ANSWRUN
 IF(ANSWRUN.EQ.2HN0>G0 T0 299
 REWIND 3
 WRITEO»900)INAME
 F0RMATC4HNAME* 1 OX» A!0«/« 4HR0WS)
 F0RMAT<1X»1HE*2X»I 5)
 F0RMATC1X»1HL*2X»I5)
 F0RMATC 1X«1HN>2X>4HC0ST*F2.0)
 00  30 I=1*NYEARS
 WRITE<3»930)YEAR(I)
 DO  90 J = 1»JNUM
 IR0W=10000*100*J
 WRITE(3*910)IR0W
 00  92 J=1»JNUM
                                 72

-------
GENS714 -- PAGE  7
                13.04.59
                                   73/08/29
03400
03410
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03490
03500
03S10
03520
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03550
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03570
03580
03590
03600
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03670
036SO
03690
03700
03710
03720
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03750
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03770
03780
03790
03800
03810
03820
03830
03840
03850
03860
 03870
 03880
 03890
 03900
 03910
 O3920
 03930
 03940
       92
       94
      990
    1R0W=20000*100*J
    WRITE<3*910)IR0W
    DO  94 l«l.NPLANTS
    IR0W330000+L
    WRIT£<3»920)IR0W
    IR0WMODOO
    WRITE< 3/910>I ROW
    IR0W=40000
    WR1TE(3*910)IR0W
    WRITE(3,990>
    F0RMATC7HC0LUMNS)
    D0  100 J=|jJNUM
    IC0L=IOOOO+100*J
    WRITEC3, 1000HC0L*IC0L
    SCJ)=SCJ)/100.
    D0  41 I«1>NYEARS
 41  WRITEO* 10IO)IC0L*Y£ARCI >, SULTCSTCJ)
100  C0NT1NUE
1000 F0RMATC4X»I5»5X*5H10000*5X,3H-1*«12X*15»5X»3H-I*>
1010 F0RMAT<4X*15.,5X,4HC0ST*F2.0»4X»F6.2)
    00  200 J=1,JNUM
    IC0L=20000+100*J
    IR0W=10000+IOO*J
    WRITE(3*1020)IC0L>JR0W*F(J).IC0L
1020 F0RMAT<4X»I 5, 5Xt I 5« 5X«F6> 4*9X» I 5* 5X»SH1*>
    00 40 IB |, NY EARS
    WRITE<3* 1010) I C0L*YEARCI ) »C
 1061 F0RMAT<
     WRITEC3*
 1070 F0RMAT
                    1040)1C0L
                    4X,I5, 5X,5H40000, 5X,3H-IO
                    1,NYEARS
                    1041) IC0L«YEAR * T
                    4X,15, 5X.4HC0ST»F2.0*4X>F6.2)

                    1050)
                    4X*5H40000*5X,5H40000'SX*2HU)
                    1* NY EARS
                    1051)YEAR(I),PA
                    4X*5H40000*5X»4HCOST*F2.0*3X»F6.2)
                    1060)
                    4Xj5HIOOOO»5X*5HtOOOO*5X*2Hl*>
                    1,NYEARS
                    1061)YEAK(1 )*PS
                    4X*5H100OO» 5X» 4HC0ST* F2. 0» 4X* F6. 2>
                    1070)
                     HRHS)
                            75

-------
  GENS714 -- PAGE   8
                         13.CM.59
                              73/08/29
  039 bO
  03V 60
  03970
  039HO
  03990
  04000
  04010
  04020
  04030
  0404O
  040 SO
  04060
  04070
  04oso
  04090
  04100
  041 10***
 P4I20***
 04130***
 041 40***
 04150
 04160
 04170
 04180
 04190
 04200***
 04210*+*
 04220
 04230
 04240
 04250
 04260***
 04270***
 04280
 04290
 04300
 04310
 04320
 04330
 04340
 04350
 04360
     DO 46 K=UNYEARS
     DO 400 J=I,JNUH
     IHOW=20000+100*J
 400  WRI TEC3, I 080) Y EAKCK) ,1 R0W, DC J)
 1 080 F0RMATC 4X, 3HRHS, F2 . 0, 5X, I 5, 5X » F 1 0 . 3)
     DO 500 I=I,NPLANTS
     I ROW=30000+I
 500  WKI lt!(3, KWO>YEAH(K),IR0W, STMCAP(I>K)
 46  CONTINUE
     WKI TEC 3* 1090)
 1090  FOKMAT<6HENDATA)
     REWIND 3
    PIUNT 1100
 1100  FOKMAT<20HTAPE3 READY  FDR APEX)
299 STOP
    END
   FUNCTIONS

   FUNCTION 
-------
GOG714  -- PAGE   J     13.35.23    73/08/29

110* ATTACH,APEX/UN=LIBRAKY.
120*$GET*TAPE1=LUCK714.
130, JREWIND,TAPE1.
140* $GET* TAPE3=INB714.
150,SKEWIND»TAPE3.
I 60* SATTACH* S0L7I4/MrW.
170*$ATTACH»0UT714/M=W.
180*RFL»40000.
19 0* APEX ( SOL VE, Ml N> 0=SOL7 \ 4* S0F=OUT714* RL = 25, SP* BCD* INB)
200»$REWIND, S0L714.
210»$RETURN,S0L7I4.
220,SREWIND»0UT7I4.
230»$RETURN»0UT714.

LENGTH  =    13 LINES

-------
KEPT714 •• PAGE   1
                 13.38.14
                                    73/08/29
00100***
001 10+**
00120
00130
00140
00 150
O0160
00170
00180
00190
00200
00210
00220
00230
00240
00250
00260
00270
00280
00290
00300
00310
00320
00330***
00340***
00350***
00360
00370
00380
00390
00400
00410
00420
00430
00440
00450
00460
00470
00460
00490
00500
00510
00520
00530
00540
00550
00560***
00570***
005BO***
00590  110
00600
00610
00620
00630
00640
         THIS  FORTRAN PROGRAM PRINTS REPORT  0N  MARKET PATTERN FOR H2S04

          PROGRAM  SULRPTC INPUT. OUTPUT* TAPE 1*TAPE2)
          DIMENSION LOC( IOO*2)*DEM< 1GO)*PC0ST( 100)*PR0D< 100).BUYC 103* 10)
          DIMENSION ACAP<10)*ACCST(10)*A<16)*B<8)*APR0C10)*YEARC10)
          DIMENSION 13TM< 10),NKPTNAM< 10)*YEARBLT< 100)
          EQUIVALENCE (KNHR0B* At 2) ) * ( RD0BJFN* A(8) ) * (LJR0 WS. A< 15))
          EOUI VALENCE ( LJCOLS* A< 1 6) ) * ( ACT* B< 3) ) * < UP* B( 6) ) , C VAL» B< 7) )
          PRINT  1000
      1000 FOKMATC24HENTER SOLUTION FILE  NAME)
          KEAD 1010*S0LFILE
      1010 FHRMAT(AV)
          CALL ATTACH<5HTAPE1>S0LFILE,0*0*0)
          REWIND  1
          CALL 0PENMS
-------
 REPT714  --  PAGE  2
                        1 3 • 38 . 1 4
                                    73/08/29
        130
       220
       140
 00 6 SO
 00660
 00670
 00680
 00690
 00700
 00710
 00720
 00730
 00740
 00750
 00760
 00770
 00780
 00790
 00800
 00810
 00820
 00830
 00840
 00850
 000 60
 008 70
 00880
 00890
 00900
 00910
 00920
 00930
 00940
 00950
 00960
 00970
 00980
 00990
 01000
 01010
 01020
 01030
 01040
 01050
 01060
 01070
 01080
 01090
 01100***
 Oil 10***
 01120***
 01130
 01 1 40
 01150
 0 I 1 60 170
01 170+
01180+
       150
       155
       361
       363
       362
  DO 130 'J=1,JNUM
  CALL SETSCTO, INDEX)
  CALL HEADMSO,B*8,-0)
  INDEX "INDEX +8
  ACAP
-------
 REPT714 -- PAGE   3
                 13.38
                                    73/08/29
01200  171
01210+
01220  172
01230*
01240
01250
01260
01270
01280
01290
01300
01310
01320
01330+
01340 2000
                          7X,8HCAPACITY.2X,6HPR0D'N,2X.SHBUILT.
                                                            ••••
173
240
           F0RMATC/8X*5HPLANT*8X>10HPH0DUCTI0N, IX, 6HACTUAL,2X, 4HYEAR 2*
           6HSULFUR, 14X,17HSTEAM PLANT SALES)
           F0HMATC7X»8HL0CAT10N*
           7HREDUCfN,10<2X,A4>>
           PRINT  173
           F0RMAT<48X*3HC$>>
           00 160 I=1,INUM
           TBUY=0»
           D0 240 J=I,JNUM
           TBUY = TBUY + BUYU*J>
           CONTINUE
           IF >L0C< I *2>, DEMf I > ,PR0bCI > ,YEARBLT ,
           PC0ST(I)>(BUY(I*J)*J=1/JNUM)
     F0RMAT(I2»2H. '» A10*A6/
01350+
01360  160
01370
01380
01390
01400
01410
01420
01430
01440
01450+
01460
01470
      180
      190
      200
      270
    10F6.0)
    CONTINUE
    PRINT 180*(ACAP(J)»J=1»JNUM)
    PRINT 190*»J=1,JNUM)
    PRINT 200*(AC0ST(J)»J=1*JNUM)
    PRINT 270»SUMAPR0»TNB
    F0RMATC/I4HPLANT CAPACI TY» 39X* 10F6.0)
    F0RMATC/I6HPLANT PR0DUCTI 0N*37X* 10F6.0)
    F0RMAT(/22HMARGINAL ACID C0ST  C$) , 31X* 10F6
    F0RMATC/19HT0TAL PR0DUCTI0N »  >F6.0*20X*
    27HT0TAL NET SALES REVENUE « $, F9.0/////)
    ST0P
    END
                                             2X> »2X* F2.0, 2X» F7.2, IX*
                                                      2)
LENGTH »   138 LINES

-------
     APPENDIX C

SULFUR FREIGHT RATES
0 LOCATION
1. HELENA, ARK.
2. N. LITTLE ROCK,AR
3. HOUSTON, TEX AS
4. TEXAS CITY, TEXAS
5. HOUSTON, TEX AS
6. LAPORTE, TEXAS
7. BEAUMONT, TX
8. PASADENA, TEXAS
9. PASADENA, TEXAS
10. PIERCE, FLORIDA
II. PALMETTO, FLORIDA
12. BONNIE, FLA.
13. PLANT CITY, FLA.
14. PLANT CITY, FLA.
15. PIERCE, FLORIDA
16. TAMPA, FLORIDA
17. NICHOLS, FLORIDA
18. PIERCE, FLORIDA
19. GHEENRAY.FLA.
20. BARTOW.FLA.
21. BARTOW.FLA.
22. BAHTOW, FLORID A
23. BONNIE, FLA.
24. PIERCE, FLORIDA
25. BARTOW,FLA.
26. BARTOW.FLA.
27. FORT MEADE,FLA.
28. E. ST. LOUIS, ILL.
29. MONSANTO, ILL
30. E. ST. LOUIS, ILL.
31. MARSEILLES, ILL.
32. CALUMET CITY, ILL
33. JOLIET, ILLINOIS
34. FORT MAD I SON, I A.
35. JOLIET, ILLINOIS
36. STREATOR, ILL.
37. E.CHICAGO, IND.
38. LASALLE.ILLINOIS
39. DEPUE, ILLINOIS
40. JOLIET, ILLINOIS
41 . CALUMET CITY, ILL
42. CHICAGO HTS.ILL
43. DONALD'VLLE,LA.
44. TAFT.LA
45. GEISMAR,LA.
46. BATON ROUGE, LA.
47. NEW ORLEANS, LA.
48. PASCAG()ULA,MI
49. PASCAG()ULA,MI
50. BURNSIDE.LA.
51. UNCLE SAM.LA.
52. GEISMAR,LA.
b?. BATON ROUGE, LA.
54. HAMILTON, OHIO
RAIL"
1580
1343
1740
1740
1740
1740
1740
1740
1740
1129
1129
1129
1129
1129
1129
1129
1129
1129
1 129
1129
1129
1129
1129
1129
1129
1129
1 129
1580
1580
1580
1640
1640
1640,,
938d
1640
1640
1640
1640
1640
1640
1640
1640
820
820
820
820
820
1023
1023
820
820
820
820
1700
BARGE6
-^^— — _^»
260
280
245
245
245
245
210
245
245
c
49O
~ f *J
565C
565C
4IOC
4IOC
c
490
•»vu_
185
F
490
490C
' .*»
56 5C
•»
565C
r-
565
r-
565
r-
565
"/*»
490C
*•
565C
-*w-/p
565
600
375
375
375
475
505
485
450
485
655e
505
470
470
485
505
505
110
no
no
120
100
135
135
no
no
no
120,.
670*
        PORT SULFUR RATES   PERCENT
                             BARGE
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                o
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
                                0
          79

-------
              APPENDIX  C  (Cont'd)
             SULFUR FREIGHT HATES
PORT SULFUR RATES
*
55.
56.
57.
58.
59.
60.
61.
LOCATION
CINCINNATI, OH 10
CINCINNATI, OHIO
COLUMBUS, OHIO
COLUMRUS,()HIO
COLUMBUS, OH 10
COLUMBUS, OH 10
COLUMBUS, OHIO
RAILa
1700
1700
1700
1700
1700
1700
J700
BARGE °
485
485 ,
1085f
1085*
1085*
I085i
I085r
PERCENT
BARGE
0
0
0
0
0
0
0
a Rates in cents/net ton (short ton) for crude
  sulfur, single-car minimum.  Weight requirements
,  vary between kO to 50 tons.
  Barge rates in cents/net ton (short ton) of
  liquid sulfur, single barge 3*200 tons.
  Seagoing barge rate used with minimum of 8,000
  tons for all Florida locations.   Barge-truck
  combinations used to interior plants.
  Special rate used for molten sulfur,  minimum
e weight 190,000 pounds.
, Barge-truck rates used via LaSalle,  Illinois.
  Barge-truck rates used via Cincinnati,  Ohio.
                      80

-------
                        APPENDIX D
                   1500 TON BARGE RATES8
It

1.
2.
3.
4.
5.
6.
7.
a.
9.
16.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
bl.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
LOCATION

HELENA, ARK.
N. LITTLE ROCK,AR
HOUSTON, TEX AS
TEXAS CITY, TEXAS
HOUSTON, TEX AS
LAPOUTE,TEXAS
BEAUMONT, TX
PASADENA, TEXAS
PASADENA, TEXAS
TAMP A, FLOW I DAb
E. ST. LOUIS, ILL.
MONSANTO, ILL
E. ST. LOUIS, ILL.
MARSEILLES, ILL.
CALUMET CITY, ILL
JOL I ET, ILLINOIS
FORT MAD I SON, I A.
JOL I ET, ILL I NO IS
STREAT()R,ILL.d
E. CHICAGO, IND.
LASALLE, ILLINOIS
DEPUE, ILLINOIS
JOLIET, ILLINOIS
CALUMET CITY, ILL
CHICAGO HTS.ILL
DONALD'VLLE,LA.
TAFT,LA
GEISMAR.LA.
BATON ROUGE, LA.
NEW ORLEANS, LA.
PASCAGOULA.MI
PASCAGOULA,MI
BURNSIDE,LA.
UNCLE SAM.LA.
GEISMAH,LA.
BATON ROUGE, L.A.
HAMILTON,OHI()d
CINCINNATI, OHIO
CINCINNATI,OH-10
COLUMBUS, OH 10°
COLUMBUS, OH I Od
COLUMBUS, OHIOd
COLUMBUS, OH I Od
COLUMBUS, OHIOd
PER
USED
too
100
100
100
100
100
too
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
too
100
100
100
100
100

COLR
285
370
590
590
590
590
550
590
590
1000
250
250
250
350
370
365
320
365
560
385
335
330
365
370
385
465
465
465
465
465
545
545
465
465
465
465
536
330
330
965
965
965
965
965

CUMB
245
315
530
530
530
530
490
530
530
940
230
230
250
290
320
315
260
315
510
325
285
280
315
320
325
405
405
405
405
405
485
485
405
405
405
405
486
280
280
910
910
910
910
910
STEAM
TO.
285
370
590
590
590
590
550
590
590
1000
250
250
250
350
370
365
320
365
560
385
335
330
365
370
385
465
465
465
465
465
545
545
465
465
465
465
531
325
325
965
965
965
965
965
PLANTS
PAH A
285
370
590
590
590
590
550
590
590
1000
250
250
250
350
370
365
320
365
560
385
335
330
365
370
385
465
465
465
465
465
545
545
465
465
465
465
426
220
220
965
965
965
965
965
SHAW '
195
275
490
490
490
490
450
490
490
890
160
160
160
250
285
275
220
275
470
285
245
240
275
285
285
355
355
355
355
355
445
445
355
355
355
355
451
245
245
860
860
860
860
860
HI DC "
345
400
655
655
655
655
615
655
655
1050
300
300
300
400
445
435
390
435
620
450
395
390
435
445
450
515
515
515
515
515
600
600
515
515
515
515
596
390
390
1030
1030
1030
1030
1030
JOHN
245
315
530
530
530
530
490
530
530
94O
230
230
230
290
320
315
260
315
510
325
285
280
315
320
325
405
405
405
405
405
485
485
405
405
405
405
486
280
280
910
910
910
910
910
Rates in cents/net ton of sulfuric acid.

Tampa rates shown allow for transfer from inland waterway barges to
seagoing barge.  Barge rates to all other Florida locations are not
shown since rail rates are cheaper.
Barge-truck rates used via LaSalle, Illinois.
Barge-truck rates used via Cincinnati,  Ohio.

-------
                          APPENDIX E
                     3000 TON BAHGE RATES3
#
1.
2.
3.
4.
5.
6.
7.
8.
9.
16.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
PER
LOCATION USED
HELENA, ARK.
N. LITTLE ROCK, AH
HOUSTON, TEXAS
TEXAS CITY .TEXAS
HOUSTON, TEX AS
LAPORTE, TEXAS
BEAUMONT, TX
PASADENA, TEXAS
PASADENA, TEXAS
TAMPA, FLORIDA13
E. ST. LOUIS, ILL.
MONSANTO, ILL
E. ST. LOUIS, ILL.
MARSEILLES. ILL.
CALUMET CITY, ILL
JOLIET, ILLINOIS
FORT MADISON, I A.
JOL I PT, ILLINOIS
SI'WI AIOH,ILL.C
E.CHiCAG(),IND.
LASALLE, ILLINOIS
DEPUE, ILLINOIS
JOLIET, ILLINOIS
CALUMET CITY, ILL
CHICAGO HTS,ILL
DONALD'VLLE.LA.
TAFT.LA
GEISMAR,LA.
BATON ROUGE, LA.
NEW ORLEANS, LA.
PASCAGOULA.MI
PASCAGOULA.MI
BURNSIDE,LA.
UNCLE SAM, LA.
GEISMAH,LA.
BATON ROUGE, LA.
HAMILTON.OHKP
CINCINNATI .OHIO
CINCINNATI, OHIO
COLUMBUS, OHIO d
COLUMBUS, OHIO d
COLUMBUS, OHIO 
-------
APPENDIX F
 RAIL  RATES
           a
PER
» LOCATION USED
1 .
2.
3.
4.
5.
6.
7.
8.
9.
10.
1 1 .
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
HELENA, ARK.
N. LITTLE ROCK,AR
HOUSTON, TEX AS
TEXAS CITY, TEXAS
HOUSTON, TEXAS
LAPORTE, TEXAS
BEAUMONT, TX
PASADENA,TEXAS
PASADENA, TEXAS
PIERCE, FLORIDA
PALMETTO, FLORIDA
BONNIE, FLA.
PLANT CITY, FLA.
PLANT CITY, FLA.
PIERCE, FLORIDA
TAMP A, FLORIDA
NICHOLS, FLORIDA
PIERCE, FLORIDA
GHEENBAY,FLA.
BAHTOW.FLA.
BAHTOW.FLA.
BARTOW, FLORIDA
BONNIE, FLA.
PIERCE, FLORIDA
BARTOW, FLA.
BARTOW, FLA.
FORT MEADE,FLA.
E. ST. LOUIS, ILL.
MONSANTO, ILL
E. ST. LOUIS, ILL.
MARSEILLES, ILL.
CALUMET CITY, ILL
JOLIET, ILLINOIS
FORT MADISON, I A.
JOLIET, ILLINOIS
STREATOR,ILL.
E. CHICAGO, IND.
LAS ALL E.ILLINOIS
DEPUE.ILLINOIS
JOLIET, ILLINOIS
CALUMET CITY, ILL
CHICAGO HTS.ILL
DONALD'VLLE.LA.
TAFT,LA
GEISMAR.LA.
BATON ROUGE, LA.
NEW ORLEANS, LA.
PASCAGOULA,MI
PASCAGOULA.MI
BURNSIDE.LA.
UNCLE SAM, LA.
GEISMAR.LA.
BATON ROUGE, LA.
HAMILTON, OH 10


1
1
1
1
1
1
1
0
0
0
0
0
0
0
0
0
00
00
00
00
00
00
0
00
100
100
100
100
100
100
100
100
100
100





















0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

COLB
619
828
1322
1322
1322
1322
1229
1322
1322
1126
1126
1126
1106
1106
1126
1106
1126
1126
1126
1126
1126
1126
1126
1126
1126
1126
1126
805
805
805
1576
1603
1603
1547
1603
1520
1603
1547
1547
1603
1603
1603
1112
1043
912
912
890
869
869
935
935
912
912
912

CUMB~
675
904
1344
1344
1344
1344
1275
1344
1344
1210
1210
1189
1189
1189
1210
1189
1189
1210
1210
1189
1189
1189
1189
1210
1189
1189
1189
719
719
719
1441
1441
1441
1441
1441
1412
1441
1441
1441
1441
1441
1441
1183
1136
996
996
996
977
977
1039
1039
996
996
761
STEAM
GALL
782
997
1438
1438
1438
1438
1344
1438
1438
1169
1189
1169
1169
1169
1169
1169
1169
1169
1169
1169
1169
1169
1169
1 169
1169
1169
1169
782
782
782
1467
1467
1467
1494
1467
1441
1467
1441
1441
1467
1467
1467
1275
1205
1061
1061
1061
996
996
1061
1061
1061
1061
719
PLANTS
PARA
782
997
1438
1438
1438
1438
1368
1438
1438
1210
1231
1210
1189
1189
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
675
675
675
1304
1304
1304
1359
1304
1276
1304
1304
1304
1304
1304
1304
1229
1253
1082
1082
1082
1061
1061
1106
1106
1082
1082
675
SHArt
wi m*i
675
904
1344
1344
1344
1344
1299
1344
1344
1 210
1231
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
713
713
713
1304
1304
1304
1276
1304
1235
1304
1235
1235
1304
1304
1304
1205
1159
996
996
1018
996
996
1039
1039
996
996
1276
winr
" A U\f
805
1021
1462
1462
1462
1462
1368
1462
1462
1 1 DA
i i \j\j
1106
1082
1082
1082
1106
1082
1082
1106
1106
1082
1082
1082
1082
1106
1082
1082
1082
890
890
890
1603
1603
1603
1683
1603
1576
1603
1603
1603
1603
1603
1603
1205
1136
1061
1061
996
935
935
1018
1018
1061
1061
826
IHUKI
junn
675
852
1344
1344
1344
1344
1 ?75
• £ 1 J
1 144
1 J ~^
1344
1 1 no
i i oy
1210
1189
1169
1169
1139
1182
1 189
1189
1189
1189
1189
1189
1189
1189
1189
1 189
1189
719
719
719
1467
1494
1494
1441
1494
1441
1494
1441
1441
1494
1494
1494
1159
1136
977
977
996
977
977
1018
1018
977
977
826

-------
                   APPENDIX F (Cont'd)
                       RAIL RATES
                   PER
STEAM PLANTS
        	
#
55.
56.
57.
58.
59.
60.
61.
LOCATION
CINCINNATI .OHIO
CINCINNATI, OHIO
COLUMBUS, OH 10
COLUMBUS, OH 10
COLUMBUS, OHIO
COLUMBUS, OH 10
COLUMBUS, OHIO
USED
Yl^MMiSw
0
0
0
0
0
0
0
COLB
912
912
1603
1603
1603
1603
1603
CUMB
761
761
1439
1439
1439
1439
1439
GALL
• ' rsss
719
719
1358
1358
1358
1358
1358
PARA
675
675
1304
1304
1304
1304
1304
SHArt
1276
1276
1467
1467
1467
1467
1467
'rtlbC
826
826
1520
1520
1520
1520
1520
JoHM
««M^__^
826
826
1494
1494
1494
1494
1494
Rates expressed in cents/net ton of sulfuric acid.

-------
                                                     XTOEHDTX Gl
oo
                   SULFUR  PRICE  -  $22.32
         PLANT
        LOCATION

  I. HELENA,ARK.
  2. N.LITTLE ROCK.AR
 28. E.ST.LOUIS,ILL.
 29. MONSANTO,ILL
 30. E.ST.LOUIS,ILL.
 32. CALUMET CITY,ILL
 33. JOLIET,ILLINOIS
 35. JOLIET,ILLINOIS
 36. STREATOR,ILL.
 37. E.CHICAGO,IND.
 38. LASAULE.ILLINOIS
 40. JOLIET,ILLINOIS
 41. CALUMET CITY,ILL
 42. CHICAGO HTS.ILL
 46. BATON  ROUGE,LA.
 47. NErf ORLEANS,LA.
 54. HAMILTON.OHIO
 55. CINCINNATI,OHIO
 56. CINCINNATI,OHIO
 58. COLUMBUS,OHIO
 59. COLUMBUS,OH10
 60.  COLUMBUS,OHIO
 61.  COLUMBUS,OHIO

 PLANT CAPACITY

 PLANT PRODUCTION

MARGINAL ACID COST <$)
                                  MARKET PATTERN FOR TVA H2S04
                                            
-------
                                         APPENDIX G2
      SULFUR PRICE * SI 7.86
            MARKET PATTERN FOR TVA H2S04
                      
-------
                                          APPENDIX G3
       SULFUR PRICE » S26.79
         PLANT
        LOCATION

  2.  N.LITTLE ROCK,AR
 28.  E.ST.LOUIS,ILL.
 29.  MONSANTO,ILL
 30.  E.ST.LOUIS.ILL.
 32.  CALUMET CITY,ILL
 33.  JOLIET,ILLINOIS
 35.  JOLIET,ILLINOIS
 36.  STREATOR.ILL.
 37.  E.CHICAGO,IND.
 38.  LASALLE,ILLINOIS
 40.  JOLIET,ILLINOIS
 41.  CALUMET CITY,ILL
 42.  CHICAGO HTS.ILL
 46.  BATON ROUGE,LA.
 47.  NEW ORLEANS,LA.
 54.  HAMILTON,OHIO
 55.  CINCINNATI,OHIO
 56.  CINCINNATI,OHIO
 60.  COLUMBUS.OHIO
 61.  COLUMBUS,OH10

 PLANT CAPACITY
PLANT PRODUCTION

MARGINAL ACID COST ($)

TOTAL PRODUCTION -   1982
    MARKET PATTERN FOR TVA H2S04
              (M TONS)
  ACID CONCENTRATION =  98%    CAPACITY
MAXIMUM TVA ACID PRICE WOULD BE $10.12
100%
BARGE = 100%
PRODUCTION
CAPACITY

86
153
139
239
III
36
256
35
334
35
299
30
30
90
30
63
30
16
18
24
ACTUAL
PROD'N

0
0
0
0
0
0
0
0
72
0
0
0
0
0
0
0
0
0
0
0
YEAR
BUILT

46
37
67
54
56
54
45
51
37
37
42
47
60
53
65
48
46
38
37
37
SULFUR
REDUC'N
(S)
7.25
7.38
1.33
2.50
3.87
17.06
1.24
13.91
0.
2 1 .89
.68
22.90
J7.39
0.
8.49
11.35
28.03
44.54
22.54
15.07

COLB

0
92
0
0
0
0
0
0
0
0
0
30
0
0
0
0
0
0
0
0

CUMB

0
0
0
0
35
0
127
35
18
35
299
0
30
0
0
0
0
0
0
0
STEAM
GALL

0
0
O
0
0
36
129
0
0
0
0
0
0
0
0
0
0
0
0
0
PLANT
PARA

0
55
139
239
76
O
0
0
O
0
0
O
0
0
0
63
30
16
0
0
SALES
SHA*i

0
0
0
0
0
0
0
0
108
0
0
0
0
90
30
0
0
0
18
24

nIDC

86
7
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

JOHN

0
0
0
0
0
0
0
0
136
0
0
0
0
0
0
0
0
0
0
0
                          122   579   165   617   270    93   136

                          122   579   165   617   270    93   136

                        10.63 It.J4 10.63 10.63 11.55 10.12 11.14

               TOTAL NET SALES REVENUE - $ 20056294

-------
                                                   APPENDIX Gk
CO
CD
                SULFUR PRICE - $22.32
        PLANT
       LOCATION

 I. HELENA,ARK.
 2. N.LITTLE ROCK.AR
28. E.ST.LOUIS,ILL.
29. MONSANTO,ILL
30. E.ST.LOUIS,ILL.
32. CALUMET CITY,ILL
33. JOLIET,ILLINOIS
35. JOLIET,ILLINOIS
36. STREATOR.ILL.
37. E.CHICAGO,IND.
38. LASALLE,ILLINOIS
40. JOLIET,ILLINOIS
41. CALUMET CITY,ILL
42. CHICAGO HTS.ILL
47. NEW ORLEANS,LA.
54. HAMILTON.OHIO
55. CINCINNATI,OHIO
56. CINCINNATI,OHIO
60. COLUMBUS,OHIO
61. COLUMBUS,OHIO

PLANT CAPACITY

PLANT PRODUCTION

MARGINAL ACID COST <$>

TOTAL PRODUCTION »    1982
                                 MARKET PATTERN FOR TVA H2S04
                                           (M TONS)
                               ACID CONCENTRATION » SOX    CAPACITY
                             MAXIMUM TVA ACID PRICE WOULD BE $ 7.75
100%
BARGE » 100%
PRODUCTION
CAPACITY

135
86
153
139
239
1 11
36
256
35
334
35
299
30
30
30
63
30
16
18
24


i)
ACTUAL
PROD'N

117
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0



YEAR
BUILT

67
46
37
67
54
56
54
45
51
37
37
42
47
60
65
48
46
38
37
37



SULFUR
REDUC'N
(S)
0.
7.53
8.41
2.45
3.53
4.0J
17.21
1.39
12.62
0.
22.30
.83
23.04
17.51
8.11
11.07
29.26
45.77
18.33
10.86




COLB

0
0
92
0
0
0
0
0
0
0
0
0
30
0
0
0
0
0
0
0
122
122
8.38

CUMB

0
0
0
0
0
53
0
127
35
0
35
299
0
30
0
0
0
0
0
0
579
579
9.00
STEAM
GALL

0
0
0
0
0
0
36
129
0
0
0
0
0
0
0
0
0
0
0
0
165
165
8.38
PLANT
PARA

Id
0
55
139
239
58
0
0
0
0
0
0
0
0
0
63
30
16
0
0
617
617
8.38
SALES
SHAW

0
0
0
0
0
0
0
0
0
198
0
0
0
0
30
0
0
0
18
24
270
270
9.50

WIDC

0
86
7
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
93
93
7.75

JOHN

0
0
0
0
0
0
0
0
0
136
0
0
0
0
0
0
0
0
0
0
136
136
9.00
                                                       TOTAL NET SALES REVENUE - S  15360062

-------
cx»
                  SULFUR PRICE > $22.32
         PLANT
        LOCATION

  I.  HELENA,ARK.
  2.  N.LITTLE ROCK,AR
 28.  E.ST.LOUIS.ILL.
 29.  MONSANTO,ILL
 30.  E.ST.LOUIS.ILL.
 31.  MARSEILLES,ILL.
 32.  CALUMET CITY,ILL
 33.  JOLIET,ILLINOIS
 35.  JOLIET,ILLINOIS
 36.  STREATOR.ILL.
 37.  E.CHICAGO,IND.
 33.  LASALLE.ILLINOIS
 39.  DEPUE,ILLINOIS
 40.  JOLIET,ILLINOIS
 41.  CALUMET  CITY,ILL
 42.  CHICAGO  HTS,ILL
 46.  BATON ROUGE.LA.
 47.  NEW ORLEANS,LA.
 52.  GEISMAR,LA.
 54.  HAMILTON,OHIO
 55.  CINCINNATI,OHIO
 56.  CINCINNATI,OHIO
 53.  COLUMBUS,OHIO
 59.  COLUMBUS,OHIO
 60.  COLUMBUS,OHIO
 61.  COLUMBUS.OHIO

 PLANT CAPACITY

 PLANT PRODUCTION

MARGINAL ACID COST <$)
                                  MARKET PATTERN  FOR TVA H2S04
                                            (M TONS)
                                ACID CONCENTRATION -  98%    CAPACITY
                              MAXIMUM TVA ACID PRICE WOULD BE S 7.71
75X
BARGE » 100%
PRODUCTION
CAPACITY

101
64
115
104
179
157
83
27
192
26
250
26
269
224
22
22
67
22
58
47
22
12
40
40
13
18
ACTUAL
PROD'N

0
0
0
0
0
0
0
0
0
O
0
0
226
0
0
0
0
0
0
0
0
0
0
0
o
0
YEAR
BUILT

67
46
37
67
54
62
56
54
45
51
37
37
67
42
47
60
53
65
68
48
46
38
49
55
37
37
SULFUR
REDUC'N
(S)
4.55
13.65
12.96
6.67
7.46
0.
9.61
25.69
6.30
22.74
0.
30.88
0.
5.64
32. 5 J
26.58
6.32
17.72
1.92
18.37
37.68
53.35
7.22
0.
35.36
25.96

COLB

0
0
0
0
29
0
0
27
0
0
0
0
44
0
22
0
0
0
0
0
0
0
0
0
0
0

CUMB

0
0
0
0
0
157
0
0
17
26
105
26
0
224
0
22
0
0
0
0
0
0
0
0
0
0
STEAM
GALL

0
0
0
0
0
0
0
0
165
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
PLANT
PARA

101
0
87
104
151
0
83
0
10
0
0
0
0
0
0
0
0
0
O
47
22
12
0
O
0
0
SALES
SHAW

0
0
0
0
c
0
0
0
0
0
10
0
0
0
0
0
67
22
58
0
0
0
40
40
13
18

WIDC

0
64
23
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
. 0
0
0
0
0
0
0

JOHN

0
0
0
0
0
0
0
0
0
0
136
0
0
0
o
0
0
0
0
0
0
0
0
0
0
0
                                                                    122    579   165    617   27O
              93   136
                                                                    122    579    165    617    270     93    136

                                                                   8.22   8.73   8.22   8.22   9.14   7.71   8.73
            TOTAL PRODUCTION
                     1982
                                                        TOTAL  NET  SALES  REVENUE  -  S  15283291

-------
                        APPENDIX HI
         SULFURIC ACID PLANTS  CONSIDERED  IN  MODEL
  *  NAME

  I.  AHKLA  CHEMICAL  COPR.
  2.  OLIN CORPORATION
  3.  AMERICAN  PLANT  FOOD
  4.  BOHDEN CHEMICAL IND.
  5.  fc.I.DUPONT DE NEM
  6.  E.I.DUPONT DE NEM
  7.  OLIN CORPORATION
  8.  OLIN CORPORATION
  9.  OLIN CORPORATION
 10.  AGRICO CHEM-WILLIAMS
 II.  BORDEN CHEMICAL IND.
 12.  CF  INDUSTRIES,INC.
 13.  CF  INDUSTRIES,INC.
 M.  CF  INDUSTRIES,INC.
 15.  CF  INDUSTRIES.INC.
 16.  CITIES SERVICE  CO
 17.  CONSERVE,INC.
 18.  FARMLAND  INDUSTRIES
 19.  FARMLAND  INDUSTRIES
 20.  H.R.GRACE  4 CO.
 21.  W.R.GRACE  & CO.
 22.  CHEMICALS,INC.
 23.  CHEMICALS,INC.
 24.  ROYSTER COMPANY
 25.  SWIFT  & COMPANY
 26.  U.S.S.AOHI-CHEM.
 27.  U.S.S.AORI-CHEM.
 28.  ALLIED CHEMICAL CORP
 29.  AMER.ZINC.LEAO&SMELT
 30.  MONSANTO COMPANY
 31.  AG  PRODUCTS CO
 32.  ALLIED CHEMICAL CORP
 33.  AMERICAN CYANAMID
 34.  ARCO CHEMICAL
 35.  ARMY AMMUNITION PLT
 36.  BORDEN CHEMICAL IND.
 37.  E.I.nUPONF DE NEM
 38.  MATTHIESSEN & HEGLER
 39.  MOBIL  OIL COMPANY
 40.  OLIN CORPORATION
 41.  SrflFT  AND COMPANY
 42.  U.S.S.AGRI-CHEM.
 43.  AGRICO CHEM-WILLIAMS
 44.  AGRI PKODUCTS(BEKER)
 45.  ALLIED CHEMICAL CORP
 46.  ALLIED CHEMICAL CORP
 47.  AMERICAN CYANAMID
 48. COASTAL CHEMICAL
 49. COASTAL CHEMICAL
 t>0. E.I.OUPONT DE NEM
 bl. FREEPOHT MINERALS
b2. HUB ICON
bl. STAUFFER CHEMICAL CO
b4. AMERICAN CYANAMID
                   YEAR   ANNUAL
LOCATION          BUILT  CAPACITY

HELENA,ARK.        1967    135
N.LITTLE R()CK,AR   1946     86
HOUSTON,TEXAS      1965    116
TEXAS CITY,TEXAS   1953    128
HOUSTON,TEXAS      1961    300
LAPORTE,TEXAS      I960    350
BEAUMONT,TX        1957    180
PASADENA,TEXAS     1965    222
PASADENA,TEXAS     1965    150
PIERCE,FLORIDA     1955    718
PALMETTO,FLORIDA   1966    450
BONNIE,FLA.        1955   I486
PLANT CITY,FLA.    1955    419
PLANT CITY,FLA.    1955    660
PIERCE,FLORIDA     1955    428
TAMPA,FLORIDA      1959    928
NICHOLS,FLORIDA    1973    400
PIERCE,FLORIDA     1961    478
GREENRAY.FLA.      1966    748
BARTOH,FLA.        1965    330
BARTOW.FLA.        I960    700
BARTOW,FLORIDA     1965    980
BONNIE,FLA.        1963    594
PIERCE,FLORIDA     1965    278
BARTOW.FLA.        1948    274
BARTOW.FLA.        I960    376
FORT MEADE.FLA.    1962    492
E.ST.LOUIS,ILL.    1937    153
MONSANTO,ILL       1967    139
E.ST.LOUIS,ILL.    1954    239
MARSEILLES,ILL.    1962    210
CALUMET CITY,ILL   1956    III
JOLIET,ILLINOIS    1954     36
FORT MADISON,I A.   1968    449
JOLIET,ILLINOIS    1945    256
STHEATOH.ILL.      1951     35
E.CHICAGO,IND.     1937    334
LASALLE,ILLINOIS   1937     35
DEPUE,ILLINOIS     1967    359
JOLIET,ILLINOIS    1942    299
CALUMET CITY,ILL   1947     30
CHICAGO HTS.ILL    I960     30
DONALD'VLLE.LA.    1970   1224
TAFT,LA            1965    429
GEISMAH.LA.        1967    450
BATON ROUGE,LA.    1953     90
NErt ORLEANS,LA.    1965     30
PASCAGOULA.MI      1958    210
PASCAGOULA.MI      1972    495
BUUNSIDE.LA.       1967    450
UNCLE SAM,LA.      1968   1632
GEISMAR.LA.        1968     7fl
BATON ROUGE,LA.    1965    750
HAMILTON,OHIO      1948     63

-------
                  APPENDIX HI (Cont'd)


        SULFURIC ACID PLANTS  CONSIDERED  IN MODEL


 *  NAME                  LOCATION          BU!LT  cJScnhr

S" ^IE,WNATIONAL MINEH«   CINCINNATI .OHIO     1946     30
«?* ?(u?IL,?IL COHPANY     CINCINNATI.OHIO     1938     16
57. AMER.ZINC.LEAD&SMELT   COLUMBUS.OHIO       1965     64
58. AMERICAN ZINC OXIDE   COLUMBUS.OHIO       1949     53
59. AMERICAN ZINC OF ILL   COLUMBUS OHIO        955     54
60. BORDEN CHEMICAL IND.   COLUMBUS.OHIO       1937     |fl
61. FARMERS FERTILIZER    COLUMBUsloHIO       1937     24
                         91

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APPENDIX H2
                                   	

-------
                    APPENDIX I
         SULFUR1C ACID PRODUCTION COSTS
  #  LOCATION
  I.  HELENA,ARK.
  2.  N.LITTLE ROCK.AR
  3.  HOUSTON.TEXAS
  4.  TEXAS CITY,TEXAS
  5.  HOUSTON.TEXAS
     LAPORTE,TEXAS
     BEAUMONT,TX
     PASADENA,TEXAS
     PASADENA,TEXAS
     PIERCE,FLORIDA
     PALMETTO,FLORIDA
     BONN IE,FLA.
     PLANT CITY,FLA.
     PLANT CITY,FLA.
     PIERCE,FLORIDA
     TAMPA,FLORIDA
     NICHOLS,FLORIDA
     PIERCE,FLORIDA
     GREENRAY.FLA.
     BARTOW.FLA.
     BART()W,FLA.
     BARTOW,FLORIDA
     BONN IE,FLA.
     PIERCE,FLORIDA
     BARTOW,FLA.
     BARTOW,FLA.
     FORT  MEADE.FLA.
     E.ST.LOUIS,ILL.
     MONSANTO,ILL
     E.ST.LOUIS,ILL.
     MARSEILLES,ILL.
32.  CALUMET CITY.ILL
33.  JOLIET.ILLINOIS
     FORT  MADI SON,I A.
     JOLIET,ILLINOIS
     STREATOR.ILL.
     E.CHICAGO,IND.
     LASALLE,ILLINOIS
     DEPUE,ILLINOIS
     JOLFET,ILLINOIS
     CALUMET CITY,ILL
     CHICAGO HTS.ILL
     DONALD'VLLE.LA.
     TAFT.LA
     GEISMAR.LA.
     BATON ROUGE,LA.
     NEW ORLEANS,LA.
     PASCAGOULA.MI
     PASCAGOULA,MI
     BURNSIDE.LA.
    UNCLE SAM,LA.
	 GEISMAH,LA.
53. BATON ROUGE,LA.
54. HAMILTON,OHIO
  6,
  7.
  8,
  9,
 10,
 II,
 12.
 13.
 14,
 15,
 16.
 17.
 18.
 19.
 20.
 21.
 22.
 23.
 24.
 25.
 26.
 27.
 28.
 29.
 30.
 31
34
35
36
37
38
39
40
41
42
43
44
45
46
47
46,
49,
50,
51,
52
SULFUR CONVERSION A
FACTOR 1975
.3006
.3053
.3006
.3053
.3006
.3053
.3053
.3006
.3006
.3053
.3006
.3053
.3053
.3053
.3053
.3053
.3006
.3006
.3006
.3006
.3053
.3006
.3006
.3006
.3053
.3053
.3006
.3053
.3006
.3053
.30O6
.3053
.3053
.3006
.3053
.3053
.3053
.3053
.3006
.3053
.3053
.3053
.3006
.3006
.3006
.3053
.3006
.3053
.3006
.3006
.3006
.3006
.3006
.3053
4
7
5
6
3
3
5
4
4
3
3
2
4
3
3
3
2
3
2
3
3
2
3
3
5
3
3
6
4
4
4
6
TOTAL COSTS
.65 12.14
.58 15.25
.11 1
1 .82
.03 12.85
.98 10.69
.87 10.68
.03 1
1.85
.06 IO.77
.65
.46
.20
.88
.01
.54
.99
.02
.88
.47
.79
.58
.19
.65
.14
.77
.02
.79 1
.38 1
.35
.77
.61
.42
.08
.60
.30
0.40
.07
.65
.19
.99
.73
.06
.55
.96
3.56

1 '.89
•31 14.27
.60 12.44
.82 12.78
.37 12.51
.07 14.43
10.10 18.40
J.UM I
5.27 1
1 .14
3.56
10.61 19.43
4.94 13.30
M.32 19.57
3.35 1
1.48
5.10 13.40
M.88 20.24
10.25 18.61
2.27 9.31
3.31 10.35
3.14 10. IB
6.88 14.06
9.57 16.58
4.70 1
2.
3.
2.
5.
2.
8.
.93
76 9.88
U 10.18
21 9.25
71 12.75
84 9.91
42 17.28

-------
              APPENDIX I (Cont'd)
        SULFUR 1C ACID PRODUCTION COSTS
 •  LOCATION

b5. CINCINNATI, OHIO
50. CINCINNATI «OHIO
57. COLUMBUS, OHIO
58. COLUMBUS, OHIO
59. COLUMBUS, OHIO
60. COLUMBUS, OHIO
61 . COLUMBUS, OHIO
SULFUR
FACTOR
.3053
.3053
.3006
.3053
.3053
.3053
.3053
CONVERSION
* TOT
1975
II .97
17.01
6.55
8.97
8.26
15.92
13.64
20. 26
25.31
16.52
19.09
IB. 38
26.04
23.76

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               APPENDIX  J
          STEAM PLANTS CONSIDERED

                  REPORT         CAPACITY
*  NAME            NAME    COST    1975

1. COLBERT         COLR     .20   121.9
2. CUMBERLAND      CUMB     .20   578.7
3. OALLATIN        CALL     .20   165.3
4. PARADISE        PARA     .20   617.3
5. SHAWNEE         SHAW     .20   270.0
6. WIDOWS CREEK    WIDC     .20    92,6
7. JOHNSONVILLE    JOHN     .20   135.9

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                          APPENDIX Kl
        SULFURIC ACID TRANSPORTATION  COSTS  USED  IN  MODEL
                          100% BARGE
 #  LOCATION

 I.  HELENA,ARK.
 2.  N.LITTLE ROCK.AR
 3.  HOUSTON,TEXAS
 4.  TEXAS CITY,TEXAS
 5.  HOUSTON,TEXAS
 6.  LAPORTE.TEXAS
 7.  BEAUMONT,TX
 8.  PASADENA,TEXAS
 9.  PASADENA,TEXAS
10.  PIESCE,FLORIDA
II.  PALMETTO,FLORIDA
12.  BONNIE,FLA.
13.  PLANT CITY,FLA.
14.  PLANT CITY,FLA.
is.  PIERCE,'FLORIDA
16.  TAMPA,FLORIDA
17.  NICHOLS,FLORIDA
18.  FIERCE,FLORIDA
19.  GREENBAY.FLA.
20.  BARTOW.FLA.
21.  BARTOW.FLA.
22.  BARTOH,FLORIDA
23.  BONNIE,FLA.
24.  PIERCE,FLORIDA
25.  BARTOW.FLA.
26.  BARTOW.FLA.
27.  FORT MEADE,FLA.
28.  E.ST.LOUIS,ILL.
29.  MONSANTO,ILL
30.  E.ST.LOUIS,ILL.
31.  MARSEILLES,ILL.
32.  CALUMET CITY,ILL
33.  JOLIET,ILLINOIS
34.  FORT MAD I SON,I A.
35.  JOLIET,ILLINOIS
36.  STREATOR.ILL.
37.  E.CHICAGO,IND.
38.  LASALLE,ILLINOIS
39.  DEPUE,ILLINOIS
40.  JOLIET,ILLINOIS
41.  CALUMET CITY,ILL
42.  CHICAGO HTS.ILL
43.  DONALD'VLLE.LA.
44.  TAFT.LA
45.  GEISMAH,LA.
46.  BATON ROUGE,LA.
47.  NEW ORLEANS,LA.
48.  PASCAG()ULA,MI
49.  PASCAGOULA,MI
bO.  BURNSIDE.LA.
bl.  UNCLE SAM,LA.
52.  GEISMAR,LA.
b3.  BATON ROUGE,LA.
b4.  HAMILTON,OHIO
               STEAM PLANTS
COLB  CUMB  GALL  PARA  SHAW  WIDC  JOHN
285
370
590
590
590
590
550
590
590
1126
1126
1126
1106
1106
1126
1000
It 26
1126
1126
1126
1126
1126
1126
1 126
1126
1126
1126
250
250
?50
350
370
365
320
365
560
385
335
330
365
370
385
465
465
465
465
465
t>45
b45
465
465
465
465
536
245
315
530
530
530
530
490
530
530
1210
1210
1189
1189
1189
1210
940
1189
1210
1210
1189
1189
1189
1 189
1210
1189
1189
1189
230
230
250
290
320
315
260
315
510
325
285
280
315
320
325
405
405
405
405
405
485
485
405
405
405
405
486
285
370
590
590
590
590
550
590
590
1169
1189
1169
1169
1169
1169
1000
1169
1169
1 169
1169
1169
1169
1169
1 169
1169
1169
1169
250
250
250
350
370
365
320
365
560
385
335
330
365
370
385
465
465
465
465
465
545
545
465
465
465
465
531
285
370
590
590
590
590
550
590
590
1210
1231
1210
1 189
1189
1210
1000
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
250
250
250
350
370
365
320
365
560
385
335
330
365
370
385
465
465
465
465
465
545
b45
465
465
465
465
426
195
275
490
490
490
490
450
490
490
1210
1231
1210
1210
1210
1210
890
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
160
160
160
250
285
275
220
275
470
285
245
240
275
285
285
355
355
355
355
355
445
445
355
355
355
355
451
345
400
655
655
655
655
615
655
655
1 106
1106
1082
1082
1082
1106
1050
1082
1106
1106
1032
1092
1082
1082
1106
1032
1092
1082
300
300
300
400
445
435
390
435
620
450
395
390
435
"445
450
515
515
515
515
515
600
600
515
515
b!5
515
596
245
315
530
530
530
530
490
530
530
1189
1210
1189
1169
1 169
1189
940
1189
1189
1189
1189
1 189
1189
1189
1189
1189
1 189
1 189
230
230
230
290
320
315
260
315
510
325
285
280
315
320
325
405
405
405
405
405
485
485
405
405
405
405
486

-------
                        APPENDIX Kl
        SULFURIC ACID TRANSPORTATION COSTS USED IN MODEL
                          100% BARGE
 #  LOCATION

55. CINCINNATI,OHIO
56. CINCINNATI,OHIO
57. COLUMBUS,OHIO
58. COLUMBUS,OH 10
59. COLUMBUS,OHIO
60. COLUMBUS,OHIO
61. COLUMBUS,OH 10
               STEAM PLANTS
COLB  CUMR  GALL  PARA  SHAW  WIDC  JOHN

 330   280   325   220   245   39O   280
 330   280   325   220   245   390   2RO
 965   910   965   965   860  J0.10   910
 965   910   965   965   860  1030   910
 965   910   965   965   860  1030   910
 965   910   965   965   860  1030   910
 965   910   965   965   860  1030   910
                              97

-------
                         APPENDIX K2
        SULFURIC ACID TRANSPORTATION COSTS USED  IN  MODEL
                           80% BARGE
 »  LOCATION

 I. HELENA,ARK.
 2. N.LITTLE ROCK.AR
 3. HOUSTON,TEX AS
 4. TEXAS CITY,TEXAS
 5. HOUSTON,TEX AS
 6. LAPORTE.TEXAS
 7. BEAUMONT,TX
 8. PASADENA,TEXAS
 9. PASADENA,TEXAS
10. PIERCE,FLORIDA
II. PALMETTO,FLORIDA
12. BONN IE,PLA.
13. PLANT CITY,FLA.
14. PLANT CITY,FLA.
15. PIERCE,FLOW I DA
16. TAMPA,FLORIDA
17. NICHOLS,FLORIDA
18. PIERCE,FLORIDA
19. G»EENRAY,FLA.
20. BARTOW.FLA.
21. BARTOW.FLA.
22. BARTON,FLORIDA
23. BONNIE,FLA.
24. PIERCE,FLORIDA
25. BARTOW.FLA.
26. B"VRTOW,FLA.
27. FORT MEADE.FLA.
28. E.ST.LOUIS,ILL.
29. MONSANTO,ILL
30. E.ST.LOUIS,ILL.
31. MARSEILLES,ILL.
32. CALUMET CITY,ILL
33. JOLIET,ILLINOIS
34. FORT MADISON,I A.
35. JOLIET,ILLINOIS
36. STHEATOR.ILL.
37. E.CHICAGO,IND.
38. LASALLE,ILLINOIS
39. DEPUE,ILLINOIS
40. JOLIET,ILLINOIS
41. CALUMET CITY,ILL
42. CHICAGO HTS.ILL
43. DONALD'VLLE.LA.
44. TAFT.LA
45. GEISMAR.LA.
46. BATON ROUGE,LA.
47. NEW ORLEANS,LA.
48. PASCAGOULA,MI
49. PASCAGOULA.MI
50. BUHNSIDE.LA.
51. UNCLE SAM,LA.
52. GEISMAR.LA.
53. BATON ROUGE,LA.
54. HAMILTON,OHIO
               STEAM PLANTS
COLB  CUMB  GALL  PARA  SHAW  WIDC  JOHN
352
462
736
736
736
736
686
736
736
1126
1126
1126
1106
1106
1 126
1021
1126
1126
1126
1126
1126
1 126
1126
1126
1126
1126
1126
361
361
361
595
617
613
565
613
752
629
577
573
613
617
629
594
581
554
554
550
610
610
559
559
554
554
611
331
433
693
693
695
693
647
693
693
1210
1210
1189
1199
1189
1210
990
1189
1210
1210
1189
1189
1189
I 189
1210
1189
1189
1189
328
328
344
520
544
540
496
540
690
548
516
512
540
544
548
561
551
523
523
523
583
583
532
532
523
523
541
384
495
760
760
760
760
709
760
760
1169
1189
1169
1169
1169
1169
1034
1169
1169
1169
1169
1169
1169
1169
1169
1169
1169
1169
356
356
356
573
589
585
555
585
736
601
556
552
585
589
601
627
613
584
584
584
635
635
584
584
5R4
584
569
384
495
760
760
760
760
714
760
760
1210
1231
1210
1189
1189
1210
1042
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
335
335
335
541
557
553
528
553
703
569
529
525
553
557
569
618
623
588
588
588
648
648
593
593
588
588
476
291
401
661
661
661
661
620
661
661
1210
1231
1210
1210
1210
1210
954
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
1210
271
271
271
461
489
481
431
481
623
489
443
439
481
489
489
525
516
48J
483
488
555
555
492
492
483
483
616
437
524
816
816
816
816
766
816
816
1106
1106
1082
1082
1082
1106
1056
1082
1106
1106
1082
1082
1082
1082
1106
1082
1082
1082
418
418
418
641
677
669
649
669
811
681
637
633
669
677
681
053
639
624
624
611
667
667
616
616
624
624
642
.131
422
693
693
693
693
647
693
693
1 189
1210
1189
1169
1169
1189
988
1189
1 189
1189
1189
1189
1189
1189
1189
1189
1189
1189
328
328
328
525
555
551
496
551
696
559
516
512
551
555
559
556
551
519
519
523
583
563
528
528
519
519
554
                               98

-------
                    APPENDIX K2
        SULFUrtIC  ACID  TRANSPORTATION COSTS USED  IN  MODEL
                           80%  BARGE
 #  LOCATION

55. CINCINNATI,OHIO
56. CINCINNATI,OH10
i>7. COLUMBUS,OHIO
58. COLUMBUS,OHIO
b9. COLUMBUS,OH10
60. COLUMBUS,OH10
61. COLUMBUS.OHIO
               STEAM PLANTS
COLB  CUMB  GALL  PARA  SHAW
                                                      WIDC  JOHN
446
446
1093
J093
1093
1091
1093
376
376
1016
10)6
1016
1016
1016
404
404
1044
1044
1044
1044
1044
311
311
1033
1033
1033
1033
1033
451
451
981
981
981
981
981
477
477
1128
1128
1128
1128
1128
389
389
1027
1027
1027
1027
1027
                                99

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 BIBLIOGRAPHIC DATA
 SHEET
1. Report No.
  EPA-650/2-73-051
                                                                3.H
-------