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ENGINEERING / ECONOMIC ANALYSIS FOR COTTON GIN COMPLIANCE WITH AIR POLLUTION REGULATIONS
Presented to
Texas State Support Committee
Dr.Calvin Parnell Jr. Department of Agricultural Engineering
Texas A&M University January 20, 1994
ENGINEERING I ECONOMIC ANALYSIS FOR COTTON GIN
COMPLIANCE WITH AIR POLLUTION REGULATIONS
Shobu Yarlaqadda Melanie Gulls
Graduate Research Assistants Dr. Calvin Parnell Jr. Dr. Stephen Fuller
Professors
Texas A&M University
Texas State Support Committee
Introduction
• FCAA • Increased Enforcement • 500 cotton gins (Texas) • 400 "Grandfathered" • "Grandfathered" Gins - Permit
Air Pollution
No person shall discharge from any source whatsoever one or more air contaminants or combination thereof, in such concentration and of such durations
Health Impact
...as to or may tend to be injurious to or to adversely affect health or welfare, animal life, or vegetation...
Nuisance
...or as to interfere with the normal use and enjoyment of animal life, vegetation, or property."
Violation of Compliance
• Complaint
• Inspection
•NOV
•FEC
•BO
Page 1
"Economic Reasonableness"
The proposed facility will utilize the best available control technology, with consideration given to the technical practicability and economic reasonableness of reducing or eliminating the emissions from the facility."
Recent Actions by TACB
For Small Businesses • First Offenders - $ 0 Penalty
• "Tight" locations - Add Controls • BBACT Policy • BBACT+ - Not Defined
Goals
'Define BBACT+
• Define "economic reasonableness"
• The cost per ton of reduced emissions will define "Economic Reasonableness" in terms that the regulator can understand
Specific Objectives • Specify abatement strategies for gins in "tight" locations
• Estimate emission factors • Estimate total mass of particulates emitted each season
Specific Objectives
•Estimate the total installed cost of abatement systems
'Estimate the cost per ton of reduced emissions
Page 2
Proposed Designs
•BBACT
-BACT Dl •BACT D2 •BACT D3
'Centrifugal Fan Exhausts
-ID 3D or 2D 20 Cyclones
'Axial fan exhausts
—Covered condenser Drums
• Axial Fans Replaced with Centrifugal Fans
• All Exhausts -ID 3D or 20 20 Cyclones
BACT D2
'All Exhausts
—Preseparatorl ID 3D Cyclones
BACT D3 • BACT DI plus
• Rotary Drum Filters on Four Exhausts
-Unloading Fan
-Push - Pull Fans
-Trash Fans
Emission Factors
• Pre BBACT - 4 lb/bale
•BBACT -2.24 lb/bale
• BACT Dl -1.6 lb/bale
Page 3
•BACT D2
—Picker Gins -1.06 lb/bale —Stripper Gins -1.2 lb/bale
'BACT D3
—Picker Gins -1.12 lbs/bale —Stripper Gins - 1.28 lbs/bale
Total Mass of Particulates Emitted Each Season
'Type of Abatement Systems
'Ginning Capacity 'Utilization of Gin Capacity
-Emission Factors
Capital Costs
'Cooper and Alley
Parnell Estimates
'Standard Air Flow Rates
'Cost indices
'Cost of Cyclones —0 .4/cf m - $0.8/cfm
-Covered Condenser Drum —$0.1 /cfm
'Preseparators -$0.3 Icfm
Rotary Drum Filters —$2.5 /cfm
Estimated Emission Factors for Picker & Stripper Gins
Abatement Picker Gins Stripper Gins
System Emission Factor Emission Factor lb/bale lb/bale
Pre BBACT 4 4
BBACT 2.24 2.24
BACT Dl 1.6 1.6
BACTD2 1.06 1.2
BACTD3 1.12 1.28
Mass of Particulates Emitted Each Season by Picker Gins
Gin Capcity Bales Pre-BBACT BACTDI
Bales/Hr. Ginned lbs lbs
<10 8000 32000 17900
10-15 10000 40000 22400
15-25 16000 64000 35800
25 - 35 24000 96000 53700
>36 28000 112000 62700
Page 4
Mass of Particulates Emitted Each Season by Picker Gins
Gin Capcity Bales BACTD2 BACTD3
Bales/Hr. Ginned lbs lbs
<10 8000 8500 9000
10-15 10000 10600 11200
16-26 16000 16950 17900 26 - 36 24000 25450 26900
>35 28000 29700 31350
Mass of Particulates Emitted Each Season by Stripper Gins
Gin Capcity
Bales/Hr.
Bales
Ginned
Pre-BBACT
lbs
BACTD1
lbs
(10 8000 32000 17900
10-16 10000 40000 22400
16-26 16000 64000 36850
26-35 24000 96000 53750
>35 28000 112000 62750
Mass of Particulates Emitted Each
Unit Installed Costs for Abatement Season by Stripper Gins
Systems - Picker Cotton
Gin Capcity Bales BACTD2 BACTD3
Gin Capacity BBACT BACTDI BACTD2 BACTD3 Bales/Hr. Ginned lbs lbs Bales/Hr. $/ctm Skim $/cfm j
<10 8000 9600 10250 <10 0.8 1.09 1.63 2.61 10-15 10000 12000 12800 10-16 0.75 1.06 1.48 2.48 16 - 25 16000 19200 20500 15-25 0.68 0.97 1.41 2.44 25-35 24000 28800 30700 25-36 0.65 0.93 1.38 2.42 >36 28000 33600 35850 >36 0.64 0.92 1.36 2.41
Unit Installed Costs for Abatement Systems - Stripper Cotton
Gin Capacity BBACT BACTDI BACTD2 BACTD3
Bales/Hr. $/cfrn $/cfm 51dm jcf.qj
<10 0.81 1.00 1.42 2.77
10-16 0.77 0.98 1.39 2.7 16-26 0.7 0.93 1.35 2.57
25-36 0.66 0.90 1.32 2.5
>35 0.66 0.89 1.31 2.47
Installed Costs for Abatement Systems - Picker Cotton
Gin Capacity BBACT BACTD1 BACTD2 BACTD3
Bales/Hr. $ $ $ $ (in thousands)
<10 56 76 107 175
10-16 66 92 130 217
15-25 95 136 198 342
25-35 136 195 290 508
>36 157 226 333 590
Page 5
60 50
Installed Costs for Abatement Systems - Stripper Cotton
Gin Capacity BBACT BACTD1 BACTD2 BACT03 Bales/Hr. $ $ $ $
In thousands) <10 54 80 113 221 10-15 77 98 139 270 15-25 112 148 216 411 25-35 158 216 316 600 >35 182 249 366 691
Reduction In Tons of Particulates Emitted - Picker Gins
100% Utilization Gin Pre BBACT BBACT BACTD1 BACTDI Capacity to to to to
BBACT -BACTD1 -BACTD2 - BACTD3
<10 7.04 2.56 2.15 1.92
10-16 8.8 3.2 2.7 2.4 16-25 14.08 6.12 4.32 3.84 25-35 21.12 7.68 6.48 5.75 '35 24.64 8.96 7.66 6.72
Reduction in Tons of Particulates Emitted - Stripper Gins
100% Utilization Gin Pre BBACT BBACT BACTD1 BACTD1 Capacity to to to to
BBACT -BACTD1 -BACTD2 - BACTD3
<10 7.04 2.56 1.6 1.28 10-16 8.8 3.2 2.0 1.6 15-26 14.08 5.12 3.2 2.56 25-35 21.12 7.68 4.8 3.84 >35 24.64 8.96 5.6 4.48
Cost of Investment per Ton of Reduction in Emissions - Picker Gins
100% Utilization Gin Pre BBACT BBACT BACTD1 BACT01 Capacity to to to to
BBACT BACTD1 BACTD2 8ACTD$ (S/Ton)
<10 8000 8000 14000 52000 10-16 7500 8000 14000 62000 15-25 6700 8000 14000 54000 25-35 6500 7800 14500 54000
>35 6400 7700 14300 64000
Cost of Investment per Ton of Reduction in Emissions - Stripper Gins
100% Utilization Gin Pre BBACT BBACT BACTD1 BACTDI Capacity to to to to
BBACT BACTD1 BACTD2 BACTD3
(S lion) <10 9000 6000 21000 110000 10 - 16 9000 6600 20500 107000 15-25 8000 7200 21000 102000 25 - 36 7500 7500 21000 100000 >35 7400 7500 21000 99000
Picker Cotton 15 -2 5 bph Capacity 1007. Utilization
- Pr. BBACT - BBACT -SBACT - BACT DI -BACTD1 - BAd 021
PSAC! Di dl 03
A B C 0 Cho o9. f AboI.minl Strategy
Page 6
Stripper Cotton 15-25 bph Capacity 100% Utilization
A 8 C 0
CPK"of Strof.gy
GINMODEL 'Developed by Dale Shaw, Agricultural Economist, USDA
'Maintained by Roy Childers, Extension Engineer, Dept. of Agricultural Engineering, Texas A&M University
PIE
00
- 80
I: 20
GINMODEL
GINMODEL ANALYZE 'Existing Gins 'Computerized Cost Model
'Proposed New Gins 'Economic Engineering Cost
'Modifications to Gins Estimation Procedure
GINMODEL - ASSUMPTIONS & METHODOLOGY
'Capacity, Utilization and Maximum Bale Output
'Capital Requirements and Costs
'Management and Labor Costs 'Total Gin Plant Costs
GINMODEL - VALIDATION
'GINMODEL Projected Costs approximate COBANK Costs
(Bank of Cooperatives, Austin TX)
Page 7
Gin Size
Bales /Season
Gin Size Ginning Costs($Ibale)
BPH COBANK GINMODEL
BPH COBANK GINMODEL
Reo TP
ReD TP
<10 8079 7538 8000 <10 47.56 41.99 42.89-45.02
10-15 12295 11410 12000 10-15 53.11 42.24 40.60-43.32
15-25 18360 18066 18000 15-25 42.54 36.70 40.89
25-35 24075 23605 24000 25-35 43.16 39.95 37.76
>35 35905 33591 35000 >35 39.29 38.18 39.00
RATE OF RETURN (ROR) ON INVESTMENT
COTTON GINS
Industry Norms and Key Business Ratios by Dun and Bradstreet 1988
'Average ROR -11.9% to 16.7%
-Required ROR - 14.7 % -To Remain in Business
ESTIMATED ROR(%) ON ESTIMATED ROR(%) ON INVESTMENT - PICKER INVESTMENT - PICKER
<10 bph (old) GIN VOLUME (bales /season) 4000 6400 8000
<10 bph(mid. age) GIN VOLUME (bales/season) 4000 6400 8000
Pre-Control 16.5 31.08 34.97 Pre-Control 3.14 11.62 13.81 BBACT 6.63 16.77 19.37 BBACT -0.78 5.94 7.4 BACT Dl 3.96 12.96 15.05 BACT Dl -2.49 3.88 5.05 BACT D2 0.74 8.15 9.54 BACT D2 -4.50 1.34 2.12 BACT D3 -4.14 2.12 2.82 BACT D3 -7.44 -2.54 -2.12
Page 8
ESTIMATED ROR(%) ON INVESTMENT - PICKER
<10 bph(new) GIN VOLUME (bales/season)
4000 6400 8000
ESTIMATED ROR(%) ON INVESTMENT - PICKER
10-15 bph(old) GIN VOLUME (bales /season)
7200 9600 12000
Pre-Control 4.46 1.2 2.22 Pre-Control 22.19 33.11 42.81
BBACT -6.29 -1.33 -0.5 BBACT 15.85 24.89 32.62
BACT Dl -7.02 -2.57 -1.97 BACT Dl 13.77 22.30 29.47 BACT D2 -8.32 4.25 -3.89 BACT D2 10.89 18.86 25.22
BACT 03 -10.02 -6.57 -6.51 BACT D3 6.48 13.85 19.09
ESTIMATED ROR ON INVESTMENT - PICKER
10-15 bph(mid.age)GIN VOLUME (bales /season) 7200 9600 12000
ESTIMATED ROR(%) ON INVESTMENT - PICKER
10-15 bph(NEW) GIN VOLUME (bates /season)
7200 9600 12000
Pre-Control 9.19 16.41 22.18 Pre-Control 3.99 10.18 14.46 BBACT 6.32 12.97 17.91 BBACT 2.07 7.98 11.85 BACT Dl 4.97 11.60 16.26 BACT Dl 1.11 6.93 10.69 BACT D2 3.31 9.76 14.08 BACT 02 -0.03 5.55 9.22
BACT 03 0.71 6.79 10.78 BACT D3 -2.21 3.22 6.83
ESTIMATED ROR(%) ON INVESTMENT - PICKER
15-25 bph GIN VOLUME (bales /season) 12000 16000 20000
ESTIMATED ROR(%) ON INVESTMENT - PICKER
25-35 bph GIN VOLUME (bales /season) 18000 24000 30000
Pre-Control 7.04 13.36 19.49 Pre-Control 8.12 15.03 20.76 BBACT 5.60 11.40 16.88 BBACT 6.79 13.14 18.48
BACT Dl 4.85 10.44 15.62 BACT Dl 6.10 12.17 17.33
BACT 02 3.89 9.22 14.00 BACT D2 5.22 10.93 15.86
BACT 03 2.04 7.23 11.53 BACT 03 3.71 8.86 13.44
Page 9
ESTIMATED ROR(%) ON INVESTMENT - PICKER
>35 bph GIN VOLUME (bales /season) 30000 40000 50000
ESTIMATED ROR(%) ON INVESTMENT - STRIPPER
<10 bph (old) GIN VOLUME (bales /season) 4000 6400 8000
Pre-Control 8.72 15.80 22.56 Pre-Control 25.57 43.51 49.76
BBACT 7.65 14.33 20.68 BBACT 11.11 23.8 27.91
BACT Dl 7.01 13.47 19.60 BACT Dl 7.78 19.18 22.47
BACT 02 5.95 12.08 17.87 BACT 02 3.55 12.94 15.66
BACT D3 4.93 10.65 16.05 BACT 03 -4.23 2.31 3.48
ESTIMATED ROR(%) ON
ESTIMATED ROR(%) ON INVESTMENT - STRIPPER
INVESTMENT - STRIPPER
<10 bph(mid. age) GIN VOLUME (bales/season)
<10 bph(new) GIN VOLUME (bales/season)
4000 6400 8000
4000 6400 8000
Pre-Control 8.28 19.38 23.12 Pre-Control -0.91 6.03 8.27 BBACT 2.28 10.89 13.60 BBACT -4.10 2.04 3.59 BACT Dl 0.42 8.10 10.37 BACT Dl -577 -0.09 1.09 BACT D2 -2.20 4.67 6.36 BACT D2 -6.77 -1.60 -0.53 BACT D3 -7.20 -1.89 -1.02 BACT 03 -9.67 -5.81 -5.41
ESTIMATED ROR(%) ON INVESTMENT - STRIPPER
10-15 bph(old) GIN VOLUME (bales /season) 7200 9600 12000
ESTIMATED ROR(%) ON INVESTMENT - STRIPPER
10-15 bph(mid.age)GIN VOLUME (bales /season) 7200 9600 12000
Pre-Control 27.21 39.80 51.17 Pre-Control 12.71 20.52 27.31
BBACT 19.19 29.21 38.11 BBACT 8.91 15.82 21.52
BACT Dl 16.73 26.01 34.15 BACT Dl 7.38 14.10 19.39
BACT D2 13.50 21.93 29.10 BACT D2 5.46 11.97 16.77
BACT 03 6.59 13.66 18.91 BACT 03 1.16 7.26 11.17
Page 10
Stripper Gins Summary
Five Gin Plant Sizes Studied
• Stripper Gins had Higher Rate of Returns than Picker Gins
• All Gins Economically Viable Up To BACT D2 at High Utilization Rates
• BACT D3 is Not Viable For All Plants
-<10 bph
-10 - 15 bph -15 - 25 bph
-25 - 35 bph
->35 bph
Studied Gins Processing -Picker Cotton -Stripper Cotton
• Proposed 3 New Abatement Strategies
• Estimated Emission Factors & Total Particulate Emissions
• Estimated Total Installed Cost
• CaIc. Cost Per Ton of Emission Reduction
• Decrease in Utilization Increases Investment per Ton of Reduction
• Gins With BACT 03 Controls Are Economically Not Viable
• BACT D3 Not Recommended For Gins in Texas
• Stripper Gins Need to Invest More than Picker Gins
• BACT D3 has the Highest Unit Cost & Installed Cost
• Investment per Ton of Reduction -Highest for BACT Dl to BACT D3
Page 13