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Journal of the Air & Waste Management Association

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Polyfunctional Plants for Industrial Waste


Disposal—Part II: Economics and Model Evaluation

Antonio C. Caputo & Pacifico M. Pelagagge

To cite this article: Antonio C. Caputo & Pacifico M. Pelagagge (1999) Polyfunctional Plants for
Industrial Waste Disposal—Part II: Economics and Model Evaluation, Journal of the Air & Waste
Management Association, 49:11, 1362-1367, DOI: 10.1080/10473289.1999.10463963

To link to this article: https://doi.org/10.1080/10473289.1999.10463963

Published online: 27 Dec 2011.

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Caputo and Pelagagge
TECHNICAL PAPER ISSN 1047-3289 J. Air & Waste Manage. Assoc. 49:1362-1367
Copyright 1999 Air & Waste Management Association

Polyfunctional Plants for Industrial Waste Disposal—Part II:


Economics and Model Evaluation
Antonio C. Caputo and Pacifico M. Pelagagge
Department of Energetics, Faculty of Engineering, University of L’Aquila, L’Aquila, Italy

ABSTRACT environmental and economic impacts. In the first part of


This is the second part of a two-part paper dealing with the this paper, we proposed some criteria for process and equip-
preliminary design and costing of polyfunctional waste ment design for general purpose polyfunctional plants,
treatment plants. In this article, we present some criteria aimed at flexibility and ease of use.
for estimating capital investment and annual operating costs In order to quantitatively assess the conditions of eco-
of polyfunctional plants for industrial waste treatment. The nomic convenience, in this second part we present capital
process and equipment design methods presented in Part I and operating cost factors for the main sections and equip-
of this article, together with the economic approach pro- ment of a polyfunctional plant, based on data from both
posed here, allow for complete technical/economic analy- literature and suppliers. The overall technical/economic
ses. The overall mathematical model appears to be a useful mathematical model developed enables economic feasibil-
tool in economic feasibility studies. The accuracy of the ity analyses of such plants. The procedure has been evalu-
developed computer mathematical model has been dem- ated by comparison between capital and operating costs of
onstrated, referring to actual cost data from the literature. actual installations and those estimated by the model. Com-
parison results are presented with reference to both single
INTRODUCTION sections and whole plants.
Particularly interesting is the use of polyfunctional plants
(PPs) for the treatment and disposal of industrial waste, CAPITAL INVESTMENT EVALUATION
thanks to the related improvements in process integration, The polyfunctional plant total capital investment (TCI)
resource conservation, and economy of scale. Significant may be estimated following the standard procedures
advantages are therefore expected from the widespread uti- adopted in process industries.1-3 The TCI is therefore as-
lization of polyfunctional plants from the standpoint of sumed to be the sum of direct capital costs (DCC) and
indirect capital costs (ICC)

IMPLICATIONS TCI = Σj DCCj + ICC (1)


Polyfunctional plants for the treatment and disposal of
industrial waste are particularly interesting, thanks to their
related advantages in process integration, resource con-
where the subscript j stands for the jth treatment section,
servation, and economy of scale. and indirect costs are evaluated comprehensively for the
In the first part of this article, we proposed some whole plant. In this paper, the adopted currency unit is the
criteria for process and equipment design for general- Italian lira (1 US$ = 1800 £).
purpose polyfunctional plants. In order to quantitatively The ICC comprises land and urbanization cost (as-
assess the conditions of economic convenience, in this
sumed to be 80,000 £/m2), engineering and project man-
second part, we present capital and operating cost fac-
tors for the main sections and equipment of a agement charges (10% of TCI), patents, licenses and
polyfunctional plant. know-how costs (3% of TCI), plant startup (3% of TCI),
The overall technical/economic mathematical model allowance for funds during construction, personnel train-
developed allows economic feasibility analyses of such ing (15 staff-months), spares and construction materials (2%
plants. The proposed methodology for plant preliminary
of TCI), and overhead (5% of TCI). The cost of the chemi-
sizing and evaluation of significant cost items, even when
simplified, has shown the capability for accurate esti-
cal analysis laboratory has been estimated at 4% of TCI,
mates, compatible with profitability evaluations, and and that of auxiliary plant utilities at 7% of TCI. Fixed
should be of interest to planners and managers of indus- charges for connection to electric energy, the natural gas
trial waste disposal systems. distribution grid, and the telecommunications network are
considered to be 0.15% of TCI.

1362 Journal of the Air & Waste Management Association Volume 49 November 1999
Caputo and Pelagagge

DCC, on the other hand, is the sum of the physical PMESP = 3 S 0.8431 when 4650 m2<S<93,000 m2 (5b)
module cost (PM) of each piece of equipment plus costs for
specific site preparation (S), cost of auxiliary civil works (B), while the scrubber cost is correlated to flow rate, Q, (kNm3/hr):
costs of instrumentation, control systems, and auxiliary
equipment (X), as pertains to each piece of equipment and PMSCRUB = 0.026 + 0.197 Q – 5.32 10-5 Q2 (6)
treatment section. PM is based on the free on-board cost
(FOB), composed of fabrication and transportation costs, Cost of the heat recovery section can be evaluated
suitably increased by a labor and material factor (LM) to from the data in Table 16 through the use of the following
account for installation and startup costs as well as civil scaling equation:
works and auxiliary equipment. Taxes and custom charges
should be added, as applicable, specific to each equipment. PM = C* (S/S*)n (7)
Therefore, for the generic ith equipment of the jth treatment
section, the following relationships may be established: where PM is the cost corresponding to the desired equip-
ment size, S, and C* is the PM cost of the equipment at
PMi = LMi·FOBi (2) the reference size S*.
Table 1 refers to a heat recovery steam generator op-
DCCj = Σi PMij + Sj + Bj + Xj (3) erating at 42 bar and 360 °C, and a condenser at 0.1 bar
operating with 20 °C and 1 bar tubeside. A 10% cost in-
Cost estimates have been made based on current cost crement is added to account for pumps, piping, air heater,
as supplied by manufacturers and literature correlations and so on. Fans and ductwork costs have been estimated
updated to 1996 values through the Marshall and Swift according to the work of Vatavuk.7
cost index. All costs are given in millions of Italian lire
except were otherwise indicated. Chemical/Physical/Biological (CPB) Section
Capital cost estimation for process equipment of the CPB
Incineration Section section is based mainly on the works of Wright and
Incinerator costs depend mainly on furnace type. Rotary Woods,8-10 from which Table 2 is adapted. Equipment costs
kilns (or fluidized-bed combustors in the case of large waste may be estimated in this case too by using eq 7.
flow rates) are generally adopted because conventional Cost of vacuum filters is correlated with the filtering
grate incinerators used for municipal solid waste (MSW) surface, S (m2), by
are not suited to waste containing a high percentage of
liquids and sludges, such as industrial waste. PMFILT = 106 S0.483 (8)
As specified in Part I of this work,4 a battery of rotary
kilns having a specific capacity of 2500 kg/hr has been while the cost of a storage tank, for volumes V up to 40
considered. PM for the entire battery, including feeding m3, is given by
equipment and post-combustor, as a function of the an-
nual flow rate to be treated, P (t/year, ranging from 3000 PMTANK = 0.437 V + 6.742 (9)
to 120,000), is

PMkiln = 11,785 – 0.187 P + 4.625 10-6 P2 (4) Stabilization/Solidification Section


In this case, the entire TCI of the stabilization/solidifica-
Electrostatic precipitator (ESP) cost5 is correlated to tion section has been considered, which is given as a func-
the collection area, S, (m2) tion of annual treatment capacity, PA, (t/year, ranging from
20,000 to 120,000).
PMESP = 19.02 S 0.6276 when 930 m2 < S<4,650 m2
(5a) TCIS/S = 10.046 PA0.5743 (10)

Table 1. Heat recovery section equipments cost.

Equipment Actual Size S Reference Cost C* Reference Size S* n

4
Steam generator Steam flow rate from 0.1 to 10 kg/hr 855 10 kg/hr 0.81
Turbogenerator Power from 0.5 to 1,000 MW 3,100 4 MW 0.84
Condenser Cooling power from 0.05 to 2.8 kW 310 103 kW 0.61
3 3
Degasifier Water flow rate from 0.004 to 0.08 m /sec 33 0.01 m /sec 0.43

Volume 49 November 1999 Journal of the Air & Waste Management Association 1363
Caputo and Pelagagge

Table 2. CPB treatment section equipment cost.

Equipment Actual Size S Reference Cost C* Reference Size S* n

Pretreatment: comminutor Flow rate (m3/day) 350–8,000 24 8000 m3/day 0.29


Concrete equalization and loading basins Volume (m3) 40–300,000 119 800 m3 0.52
3 3
Coagulation and flocculation reactors Volume (m ) 50–1,000 238 1000 m 0.45
2 2
Clarifier (w/o scraper) Surface (m ) 60–400 623.7 400 m 0.56
Sludge scraper Surface (m2) 60–7,000 402.5 220 m2 0.62
2 7 2
Aeration basin Surface (m ) 90–1.7 10 590 2000 m 0.74
Aerator Power (kW) 0.75–3,700 126 75 kW 0.55
Liquids pumping station Flow rate (m3/day) 40–1.2 106 590 7000 m3/day 0.7
3 4 3
Sludges pumping and recirculation station Flow rate (m /day) 870–5 10 95 50000 m /day 0.53
Lime storage tank (15 days) Dosing (kg/day) 720–5,700 460 5700 kg/day 0.61
FeCl3 storage tank (15 days) Dosing (kg/day) 570–5,700 220 5700 kg/day 0.5
Polyelectrolite storage tank (15 days) Dosing (kg/day) 4.4–38 130 38 kg/day 0.68
Sludge thickener Surface (m2) 60–400 623.7 400 m2 0.56

OPERATING COSTS EVALUATION where CF is the fuel cost (190 £/104 kcal), MC is the hourly
Operating costs for each plant section, CSj, comprise per- fuel consumption (kg/hr), H is the low heating value (kcal/
sonnel and labor costs, energy costs, maintenance (either kg), and T is the annual operating hours. Electric power
labor and materials), overhead, and general operating for ESP operation (kW) is expressed as a function of col-
charges. This last item is considered to be 15% of total lecting area, S (m2)
operating charges for each section. As far as the entire
plant is concerned, landfill disposal costs (CA) and waste PESP = 2.08 10-2 S (13)
collection costs (CR) are to be accounted for, resulting in
a total annual cost (TAC) while for fan operation (kW) it is

TAC = [Σj CSj] + CA + CR (11) PFAN = 4.196 10–6 ∆p Q (14)

Personnel requirements for each section are shown where Q (Nm3/hr) is the fume flow rate and ∆P is the total
in Table 3. Costs can be computed based on the following head loss (mm H2O). Head loss for scrubber7 (in mbar) is
annual specific costs: 50 M£/year/person for laborers, 55– ∆PSCR = 38.37 d-1.39, d (µm) being the minimum diameter
60 M£/year/person for technicians and specialized work- of particles which are removed with an efficiency greater
ers, and 70 M£/year/person for supervisors. than 99.9%, while head loss for the ESP is around 25 mm
Electric energy cost is assumed to be 160 £/kWh when H2O. The power requirement for each rotating kiln has
bought from an external supplier rather than utilizing been estimated at 25 kW. Power absorbed by the heat re-
autonomously produced energy. Energy cost for the in- covery equipment is 5% of the power consumption for
cineration section is composed of fuel and electric power the whole section. Maintenance cost is 15% of section
costs. The auxiliary fuel charge is capital investment.
In the CPB section, maintenance costs are assumed
CFUEL = CF H MC T (12) to be 5% of the section capital investment, while reactant

Table 3. Personnel requirements.

Plant Capacity
up to 250,000 t/year up to 500,000 t/year up to 750,000 t/year

Section S T W S T W S T W

CPB 1 4 4 2 6 6 3 8 8
Incineration 1 4 4 2 6 6 3 8 8
Stabilization 1 4 4 2 6 6 3 8 8
Laboratory 3 3 3 5 5 7 7 7 7

W = Workers, T = Technicians, S = Supervisors

1364 Journal of the Air & Waste Management Association Volume 49 November 1999
Caputo and Pelagagge

costs are assumed; thus, FeCl3 = 320 £/kg, lime = 50 £/kg, CR = (10 + DA/5) (15)
polyelectrolite = 8000 £/kg, and pulverized activated car-
bon = 3000 £/kg. Power consumption can be computed where DA is the average distance between plant and
from actual equipment size and the values of specific waste source.
power consumption. The comminutor located in the pre-
treatment section has an installed power of 550 W for MODEL EVALUATION
flow rates up to 10,000 m3/day and 750 W for higher flow The ability of the model to correctly size equipment and
rates. Propeller mixers in the equalization and feeding estimate the capital and operating costs of polyfunctional
basins have a power requirement of 8–15 W/m3, while in plants for industrial waste treatment has been validated
the case of the mixers in the coagulation and flocculation through comparison of model results with actual litera-
reactor the power is 400 and 20 W/m3, respectively. Set- ture data from similar plants, as shown in Table 4. Spe-
tling basins require about 10–20 W/m2 for sludge ex- cialized plants, corresponding to single sections of a PP,
tracting apparatus, while reactants storage tanks and two entire PP were considered. However, available
require about 250 W/m3 for mixing and dosing. The references usually provided only general information
sludge removal device of the thickening basin requires about plant operation, such as plant capacity, average
about 1 W/m 3 , while the energy requirement of waste heating value and so on, and, in absence of detailed
vacuum filters is 40 kWh/ton suspended solids. Power data, typical average values were assumed, for the other
for liquids and sludge-moving is obviously dependent unknown parameters, when needed.
on the actual plant layout. It appears that the model tends to slightly overesti-
In the stabilization/solidification section, a greater in- mate capital investments; for operating costs, negative
cidence of maintenance cost (10% of capital investment) is deviations were also observed. Maximum deviations of
considered due to the aggressive acid nature of treated slud- single-section capital investments are 4.4% for incinera-
ges, while operating materials (cement and silicates) account tion, 5.7% for stabilization/solidification, and 2.7% for
for 40–45% of operating costs. Laboratory maintenance CPB treatment. It is particularly interesting that good ac-
costs are 5% of capital investment, while reactants and gen- curacy was observed in incineration cost estimation, and
eral expenses are 15% of operating costs. Disposal costs for this is particularly important, as this section usually pre-
stabilized refuse and incineration slag are composed of the sents the highest portion of total plant cost. As far as op-
actual cost of disposal (80–120 £/kg) and cost of transpor- erating costs are concerned the maximum deviation was
tation to landfill. This last item depends on landfill dis- 9% obtained for an incineration section, with a negative
tance, D, assumed to be 33 £/kg if D<<100 km, 50 £/kg if D deviation in one case.12
≈100 km, and 50–110 £/kg if D>100 km. Therefore, the to- Similar considerations hold for cost estimation for
tal disposal cost to landfill lies in the range of 100–200 £/ entire polyfunctional plants. The same underestimation
kg. Waste collection cost (£/kg) for the polyfunctional plant of operating cost has been observed with respect to the
may be evaluated by the following equation,11 which ac- data of Canziani et al.,12 although this may be explained
counts for truck capital recovery, fuel, and personnel costs: by the fact that the PP considered in that work included

Table 4. Comparison with literature data.

Literature Data This Work Deviation (%)


Source Capacity (ton/day) Investment (M£) Operating Cost Investment (M£) Operating Cost Investment Operating Cost

Incineration
Ref. 14 750 250,000 - 261,055 - +4.4 -
Ref. 11 250 50,000 - 49,116 - +1.8 -
Ref. 14 500–800 - 45–75 M£/day - 48.8–81.7 M£/day - +8–+9
CPB
Ref. 12 760 7,390 1,460 M£/year 7,592 1431 M£/year +2.7 -1.9
Stabilization
Ref. 15 90 3,000 - 3,172 - +5.7 -
Ref. 13 170 - 225 £/kg - 241.7 £/kg - +7.4
Polyfunctional Plant
Ref. 12 560 89,673 9,366 M£/year 93,236 8,951 M£/year +3.9 -4.4
Ref. 12 700 112,708 11,404 M£/year 116,466 11,147 M£/year +3.3 -2.3

Volume 49 November 1999 Journal of the Air & Waste Management Association 1365
Caputo and Pelagagge

some special CPB subsections devoted to treatment of in this table. The maximum deviations from average cost,
cyanide and chromium compounds, which are absent in observed with reference to the test cases of Table 4 and
the general purpose plant considered in this work. attributable to the combined effect of all parameters, are
Finally, it should be noted that the operating cost shown in Table 6.
shown for the solidification/stabilization plant described As far as the investment costs of the incineration sec-
by Costanzini13 is a total specific treatment cost, including tion are concerned, the main influence obviously has been
capital recovery and landfill disposal/transportation costs. that of rotary kilns and ESP, showing an impact of ±3.5%
The accuracy demonstrated by the cost estimation and ±2.45% respectively, when assuming a section capac-
model described herein appears to be particularly satis- ity of 750 t/day.14 The greatest impact on operating costs
factory, considering that it is intended to be used prima- is instead that of waste heating value (±15% for a 500-t/
rily in economic feasibility studies and that equipment day plant as described by Cenerini).14 In the CPB section,
cost correlations from literature (which usually pro- the greatest influences on capital investment have been
vide an accuracy in the range of ±30%) are employed sludge treatment (±3.7%) and biological treatment
to a large extent. (±2.6%), while the greatest sensitivity of operating cost,
A sensitivity analysis has been carried out to assess apart from maintenance, has been shown by HM con-
the effect of variations of cost parameters in the literature centration, which directly dictates lime consumption.
considered (Table 4). Equipment costs have been subjected BOD and SS concentration, on the other hand, affect capi-
to a ±20% variation, while parameters affecting operat- tal investment more than operating cost because they
ing costs have been varied as described in Table 5. The directly influence equipment sizes. In case of the stabili-
impact of each cost item has been computed separately zation plant operating cost, again the data in Table 6 refer

Table 5. Influence of operating parameters.

Parameter Minimum Value Modal Value Maximum Value Deviation (%)

Fuel cost (£/kg) 180 200 220 ±6.9


Maintenance (incineration and CPB) (%) 2% 3% 4% ±8.4 (incineration) ±6.2 (CPB)
Waste heating value (kcal/kg) 4,800 5,000 5,200 -15.3, +14.7
Sludge filter efficiency (%) 85 90 95 -1.4, +1.7
Growth factor f 0.04 0.05 0.06 -2.1, +2.9
FeCl3 (£/kg) 250 320 390
Lime (£/kg) 40 50 60 ±1.4
Polyelectrolite (£/kg) 6,500 8,000 9,500
BOD (mg/l) 2,000 4,000 8,000 -0.4, +0.6
SS (mg/l) 2,500 5,000 10,000 -0.3, +0.5
HM (mg/l) 750 1,500 3,000 -3, +5.9
Landfill cost (£/kg) 80 100 120 ±9.8
Trasportation cost (£/kg) 33 50 110 -8.3, +29.4
Maintenance (%) (stabilization) 8 10 12 ±1.9
Reactants (%) (stabilization) 35 42.5 50 -3.1, +4.5
Interest rate (%) 7 9 11 ±0.6
Plant life (years) 10 15 20 -0.6, +1.3

Table 6. Summary of model performance and combined parameters influence.

Plant Max. Deviation from Literature Data (%) Max. Deviation from Literature Data (%)
(average values of parameters) (combined parameters variation)
Capital Investment Operating Costs Capital Investment Operating Costs

Incineration +4.4 +9 ±6.3 -28.9, +32


CPB +2.7 -1.9 -21, +24 -10, +15.6
Stabilization +5.7 +7.4 ±10 -24.2, +48

1366 Journal of the Air & Waste Management Association Volume 49 November 1999
Caputo and Pelagagge

to the work of Costanzini,13 where a total annual cost REFERENCES


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Future research will be aimed at the application of About the Authors
this methodology to industrial areas characterized by small Dr. Pacifico M. Pelagagge is an associate professor in the
and very small enterprises, where the resort to Engineering Faculty at the University of L’Aquila, 67040
Monteluco di Roio (AQ), Italy. Dr. Antonio C. Caputo is an
polyfunctional plants is more stringent. At the same time,
assistant professor in the Engineering Faculty at the same
the influence of treatment capacity on profitability will university (e-mail: caputo@ing.univaq.it).
be analyzed in order to determine the optimal plant size.

Volume 49 November 1999 Journal of the Air & Waste Management Association 1367

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