Environmental Control Costs For Oil Shale Process

The studies reported herein are intended to provide more certainty regarding estimates of the costs of controlling environmental residuals from oil shale technologies being readied for commercial application. The need for this study was evident from earlier work conducted by the Office of Environment for the Department of Energy Oil Shale Commercialization Planning, Environmental Readiness Assessment in mid-1978. At that time there was little reliable information on the costs for controlling residuals and for safe handling of wastes from oil shale processes. The uncertainties in estimating costs of complying with yet-to-be-defined environmental standards and regulations for oil shale facilities are a critical element that will affect the decision on proceeding with shale oil production. Until the regulatory requirements are fully clarified and processes and controls are investigated and tested in units of larger size, it will not be possible to provide definitive answers to the cost question. Thus, the objective of this work was to establish ranges of possible control costs per barrel of shale oil produced, reflecting various regulatory, technical, and financing assumptions. Two separate reports make up the bulk of this document. One report, prepared by the Denver Research Institute, is a relatively rigorous engineering treatment of the subject, based on regulatory assumptions and technical judgements as to best available control technologies and practices. The other report examines the incremental cost effect of more conservative technical and financing alternatives. An overview section is included that synthesizes the products of the separate studies and addresses two variations to the assumptions.

The pollution control costs for a commercial oil shale industry were determined in a joint effort by Denver Research Institute, Water Purification Associates of Cambridge, and Stone and Webster Engineering of Boston and Denver. Four commercial oil shale processes were considered. The results in terms of cost per barrel of syncrude oil are predicted to be as follows: Paraho Process, $0.67 to $1.01; TOSCO II Process, $1.43 to $1.91; MIS Process, $2.02 to $3.03; and MIS/Lurgi-Ruhrgas Process, $1.68 to $2.43. Alternative pollution control equipment and integrated pollution control strategies were considered and optimal systems selected for each full-scale plant. A detailed inventory of equipment (along with the rationale for selection), a detailed description of control strategies, itemized costs and predicted emission levels are presented for each process. Capital and operating cost data are converted to a cost per barrel basis using detailed economic evaluation procedures. Ranges of cost are determined using a subjective self-assessment of uncertainty approach. An accepted methodology for probability encoding was used, and cost ranges are presented as subjective probability distributions. Volume I presents the detailed engineering results. Volume II presents the detailed analysis of uncertainty in the predicted costs.