Nadine ALLEMAND Objectives of the presentation Provide information of components of investment and operating costs Provide information on the composition of working documents Present data required from national experts for estimating costs in their own countries and for aggregation of data for CIAM

Components of investment costs Pollution control equipment expenditure Pollution control device Auxiliary equipment Instrumentation Installation expenditure (For VOC reduction techniques considered equal to costs of the pollution control device itself) Project definition and engineering, Contractor selection costs and contractor fees, Building and civil works (foundations, supports, erection, electrical, piping, insulation, painting…), Performance testing and start up

Components of operating costs Fixed operating costs Insurance, licence fees, taxes Maintenance Variable operating costs Man power costs, Raw material and chemical consumption, Waste water treatment, Waste disposal, Electricity consumption, Energy costs : steam, natural gas, solid or liquid fuel, Replacement of materials : catalyst, activated carbon… Avoided costs : energy recovery, solvent recovery…

Estimation of costs Costs : expressed in € 2000 Investment costs I : € Annualised investment costs A : € / year A = I . (1+q)n . q . ((1+q)n-1)-1 n : reduction equipment life time (year) p : interest rate (4 % imposed) q = 1+p/100

Estimation of costs OCtot : Total operating costs - € / year OC fix : Fixed operating costs A certain percentage of investment costs related to maintance, taxes and administrative overhead (a given percentage of I) OCvar : Variable operating costs Costs for additional labour demand, electricity use, fuel consumption, savings of solvents…

Estimation of costs OCtot : Total operating costs - € / y OCtot = OC fix + OC var TAC : Total annual costs - € / y TAC = A + OCtot Total annual costs per tonne of pollutant abated - € / t pollutant TAC / ∑ t of pollutant eliminated

Working document composition Chapter 1 : Introduction Chapter 2 : Short technology description Chapter 3 : EU regulations implementing emission limits Chapter 4 : Definition of reference installation Chapter 5 : Emission abatement techniques and costs Primary measures Secondary measures Chapter 6 : Data to be provided by national experts Chapter 7 : Explanatory notes Chapter 8 : References

Description of the quality of data Rank from 1 to 5 For emission factors : 1 : very poor: no measurements (or mass balances, literature review) 2 : poor : based on a single measurement 3 : fair : based on a series of measurements in several plants 4 : good : based on calculations or systematic manual measurements 5 : very good : continuously monitored

Description of the quality of data Rank from 1 to 5 For cost items : 1 : estimate of a single expert 2 : based on pre-feasibility study 3 : based on costing done for an investment project 4 : ex post evaluation of a group of projects 5 : ex post evaluation of a large investment program

Uncertainties Definition of the IPCCguidelines are used For costs and emission factors : 95 % confidence interval Interval that has a 95 % probability of containing the mean value (for a normal distribution ± 2 standard deviations)

For uncertain quantities combined by addition Uncertainty of the sum : U total : percentage uncertainty in the sum of the quantities (half the 95% confidence interval divided by the total (i.e. mean) and expressed as a percentage) xi, Ui : uncertain quantities (expressed as mean value) and the percentage uncertainties associated with them (expressed as CI%), respectively

Specific data required from national experts for estimating costs in their respective country and for aggregation according to CIAM requirements Country specific parameters for estimating variable operating costs (manpower costs, energy costs…) Data for aggregation of results (obtained at a very detailed level (reference installation)) according to the CIAM needs

Specific data required from national experts for estimating costs and for aggregation according to CIAM requirements For each emission source : Total activity level in 2000, 2005, 2010, 2015 and 2020 Respective percentage of the activity level carried out on each reference installation in 2000

Specific data required from national experts for estimating costs and for aggregation according to CIAM requirements In each emission source, for each reference installation Percentage of use of each reduction technique or combination of techniques in 2000, 2010 and 2020 due to current regulation (European and / or national) Applicability factor of each reduction technique or combination of reduction techniques Applicability factor (def. CIAM): Maximum potential of use of a technique - defined as a percentage of the activity level

Applicability factor (def. CIAM): Maximum potential of use of a technique - defined as a percentage of the activity level Production of 1,000 tons of a product in the year 2010 There are 3 reference installations Each reference installation has two abatement techniques activity in [t] activity in [%] applicability in [%] applicability in [t] 01 00 100 10 % 0 % 01 01 200 20 % 01 02 02 00 02 01 300 30 % 70 % 700 02 02 50 5 % 03 00 03 01 50 % 500 03 02 SUM 1000 100 % > 100 % > 1000

Aggregation of data For one emission source, deliver IIASA with only : One average cost of a primary or a secondary technique, or a combination of them One average percentage of use of a reduction technique in 2000, 2010 and 2020 One applicability factor of a reduction technique

Example : aggregation of cost data Aggregation of data Example : aggregation of cost data i : number of reference installations (RI) – i ranges from 1 to x j : number of reduction techniques – j ranges from 1 to y Pi : proportion of the activity carried out in RIi (provided by experts Ci,j : cost of the technique j in RIi (C can represent an investment I, an operation cost OC…) ACj : average cost of the technique j (AC can represent an investment I, an operating cost OC…) ACj = (  Pi . Ci,j ) / 100 x i = 1

Aggregation made by the computer from data provided by Aggregation of data Aggregation made by the computer from data provided by national experts

Some additional information Use of SNAP code with a fourth serie of digits. The fourth serie represents a characteristic sub-activity Example : 06 03 05 Rubber processing 06 03 05 01 : Synthetic rubber goods production (except tyres) 06 03 05 02 : Tyre production Example : 06 04 03 Printing industry 06 04 03 01 : Heatset offset printing 06 04 03 02 : Publication rotogravure 06 04 03 03 : Rotogravure and flexography for packaging 06 04 03 04 : Screen printing