1. 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

2. 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

3. 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…

4. 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

5. 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…

6. 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

7. 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

8. 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

9. 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

10. 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)

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

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

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