Capital Cost Estimates Research Articles

Comparison of a Tannery that Using the Conventional Treatment of Waste Water and That Using the Recycling Method

The conventional treatment methods of tannery spent float is found to be not sufficient to meet the required international standers levels of liquid discharges on the other hand the establishment of the treatment unit for the physical, biological and chemical treatment of the spent float is found to be extremely high-cost process. During the life time of the tannery by using the recycling of the spent float method, there would be a great saving in the water and the chemicals as well as environment protection. The comparison of the capital cost estimates of two tanneries with the same capacity, one with the conventional treatment method (large treatment unit should be established) and the other used the recycling of the spent float process, show the advantages of using the recycling process over the conventional treatment process.

Comparison of a Tannery that Using the Conventional Treatment of Waste Water and That Using the Recycling Method

The conventional treatment methods of tannery spent float is found to be not sufficient to meet the required international standers levels of liquid discharges on the other hand the establishment of the treatment unit for the physical, biological and chemical treatment of the spent float is found to be extremely high-cost process. During the life time of the tannery by using the recycling of the spent float method, there would be a great saving in the water and the chemicals as well as environment protection. The comparison of the capital cost estimates of two tanneries with the same capacity, one with the conventional treatment method (large treatment unit should be established) and the other used the recycling of the spent float process, show the advantages of using the recycling process over the conventional treatment process.

Climate shocks and human capital: The impact of the natural disasters of 2010 in Colombia on student achievement

This paper investigates the impact of the unprecedented climate shocks of the 2010 in Colombia on the results of the Saber 11 standardized test for the 2010- 2012 period. By using two unique datasets, this paper contributes to the literature by providing a better estimate of the human capital costs of climate shocks. The findings indicate that the climate shocks occurred on 2010 decreased Saber 11 test scores. The impact was stronger for female students, students from rural areas and students from low-income families. A possible channel of transmission is identified: the destruction of schools.

Pre feasibility study in hydrometallurgical treatment of low-grade chalcopyrite ores from Sarcheshmeh copper mine

Chalcopyrite heap leaching is not yet a commercial reality, not just because of its lower recovery or slower kinetics, but rather, because of the economic impacts lower recovery and slower kinetics impose to the operating cost of the process. Considering the importance of the financial analysis on the economics of the operation, in this research, the economics of hydrometallurgical treatment of low-grade chalcopyrite deposit at Sarcheshmeh mine as a function of ore grade and extraction recovery were investigated. First, a brief history and theory of chalcopyrite ore leaching has been reviewed, showing that bio heap leaching at a possibly higher temperature with forced aeration is the only viable technique in treatment of low-grade chalcopyrite ores. In the economic feasibility study section, an operating cost estimate, capital cost estimate and economic analysis for a plant with 7000 tons per year copper cathode production capacity as a function of ore grades, acid consumption and heap leaching recoveries were investigated. Preliminary capital cost and operating cost estimates were made within two scenarios for a plant utilizing bio heap leaching, solvent extraction and electrowinning of low-grade chalcopyrite ore. The operating cost, for instance, was shown to be between US$5.99/kg to US$4.29/kg of copper cathode for extraction recoveries of 30% to 50% in a scenario where the construction of new SX and EW plants are required (Scenario 1). The operating cost was shown to reduce to US$5.36/kg to US$3.66/kg, for a similar recovery range, if the current SX and EW facility can absorb the bio heap leaching solution (Scenario 2). Using the operating cost data and the current copper selling price, the ore cut-off grade as a function of copper extraction efficiency was identified. The economic analysis showed that for an ore containing 0.28% copper, 7000 tons per year of copper cathode production requires a total investment of 38 million US dollar. The internal rate of return for such a plant was shown to vary between −2% to 27% for copper extraction efficiencies between 30% to 50% (Scenario 1). The sensitivity analysis of the similar plant showed that a copper selling price of US$5/kg, for instance, can even make the 50% copper extraction efficiency economically unacceptable for scenario 1.

Improving estimates of transmission capital costs for utility-scale wind and solar projects to inform renewable energy policy

Estimating the overall costs of transmission needed to integrate variable renewable energy (VRE) onto the grid is challenging. An improved understanding of these transmission costs would support electricity system planning as VRE penetrations increase. This paper brackets VRE transmission capital costs using multiple approaches based on interconnection studies, actual transmission projects, capacity-expansion simulation models, and aggregated U.S. VRE-related transmission expenditures. Each approach possesses advantages and drawbacks, and combining the approaches lends confidence to the results. The resulting range of average levelized VRE transmission costs is $1–$10/MWh, which is generally lower than earlier estimates in the literature. These transmission capital costs can increase the direct plant-level levelized cost of VRE by 3%–33%, based on levelized costs of energy of $29–$56/MWh for utility-scale wind and $36–$46/MWh for utility-scale solar. As VRE deployment continues to expand, policy makers can use this information to (1) assess the benefits of transmission avoidance and deferral when comparing distributed energy resources versus utility-scale projects, (2) evaluate the potential costs of large-scale public transmission investments, and (3) better analyze system-level costs of utility-scale VRE technologies. Future research can expand on the framework presented here by providing a review of operation and maintenance costs for transmission systems.

Technical and economic evaluation of separation of dimethyl disulfide from disulfide oil at liquefied petroleum gas treatment facilities of Assaluyeh gas refinery

AbstractDisulfide oil (DSO) is produced as a hydrocarbon sulfide waste stream in liquefied petroleum gas and condensate sweetening units in refineries and can cause acute environmental pollutions. In this article, a simple process composed of two units including a distillation unit and a hydrodesulfurization (HDS) unit is proposed to overcome the disulfide oil problem in refineries. The commercial HDS catalyst is CoMo type that is applicable for hydrotreating of DSO. This catalyst is developed by different licensors such as Axens. The high sulfur content in DSO feed causes an increase in heat of reaction and partial pressure of H2S in HDS reactor. By using special design techniques such as reactor quenching or increase H2/oil ratio, the reactor can be designed properly for DSO feed. The waste stream DSO is converted to valuable products including: dimethyl disulfide (DMDS), sweet gas and condensate. A process flow diagram consisting of distillation and HDS units together with amine treating and hydrogen compression system is proposed and simulation of the process is carried out by Aspen plus: The distillation unit separates DMDS and the HDS unit removes sulfur from remainder DSO. Capital cost estimation methodology is based on bare module factor. The capital and operating cost of the process are estimated for a real capacity of DSO just produced in south pars of Iran. Financial parameters and sensitivity analysis show that the process is feasible both technically and economically with an internal rate of return of 73.6%. The proposed process is accepted environmentally by converting a harmful waste to saleable products.

Cost Estimation of CO2 Absorption Plants for CO2 Mitigation – Method and Assumptions

The estimates of post combustion CO2 capture costs reported in the literature range from 50 €/tCO2 to 128 €/tCO2, reflecting differences in the cost estimation methods used, scopes of the analyses, and assumptions made. This variation in calculated costs is important when evaluating the feasibility of a technology and highlights the importance of ensuring consistency and transparency in cost estimations. This study establishes a cost estimation tool that highlights the effects of different assumptions on the overall cost of a capture plant and identifies the crucial technical and economic factors. The input is a simplified process flow diagram and equipment list. Detailed installation factors and the equipment cost are the two main elements used to derive the capital expenditures (CAPEX), which represent a fundamental component of the cost estimation approach. A detailed installation factor sheet is used for the capital cost estimation. The method is applied to a Base case that involves the capture of CO2 from the flue gas of a process industry, giving a capture cost of 62.5 €/tCO2. The Base case results reveal that the steam cost, electricity cost, and capital cost are the main contributors. This method can provide an overview of the main cost drivers, and a sensitivity analysis of the variable input parameters can be performed simply and quickly. The results obtained using this method can be valuable in the early phase of the project and contribute to decision making.

Analysis of a rich vapor compression method for an ammonia-based CO2 capture process and freshwater production using membrane distillation technology

Post-combustion capturing of CO2 through chemical solvent absorption is a promising technique for reducing the CO2 emissions from fossil fuel power plants. However, the energy penalty associated with the absorbent regeneration continues to be a critical challenge in the chemical solvent absorption process. In this study, the operating parameters of ammonia-based CO2 capture were optimized to reduce the energy penalty. This optimized process was considered a base process to which process modifications were added, with the goal of further reducing the energy consumption. These process modifications included absorber inter-cooling and rich vapor compression (RVC) combined with cold solvent split (CSS) processes. The combined RVC and CSS process was compared with the base process and advanced NH3-based CO2 capture processes, such as the rich split process and the inter-heating process. Compared to the base process, the combined process reduced the energy requirements by 20.2%, which was higher than the 11.6% and 8.26% energy reductions obtained via the rich split and inter-heating processes, respectively. The combined process was also compared with MEA-based process modifications. The energy savings from the combined process were higher than those of the MEA-based process modifications. To estimate the trade-offs between the energy savings resulting from the combined process vs. the capital cost of the additional equipment required, the Aspen Capital Cost Estimator (ACCE) was used. The results showed that the combined process saved $0.707 million per year. Furthermore, a membrane distillation (MD) technology was integrated with the CO2 capture unit to produce freshwater. This additional process produced freshwater at a rate of 719.240 m3/day at a feed stream temperature to the MD unit of 35.66 ℃.

A comprehensive study for setting up mini-biorefinery pilot plant for biodiesel, hybrid fuel, and hydroprocessed fuels derived from waste cooking oil

ABSTRACTDuring the last three decades, hydroprocessed fuels, biodiesel, and hybrid fuels derived from vegetable oils and animal fats were emerging as the prominent biofuels for compression ignition engine. A comparative analysis of production, chemical structure, fuel properties, and cost estimation of waste cooking oil-based biodiesel, hybrid fuel, and hydroprocessed fuels was carried out and reported in this article. Biodiesel was produced by transesterification process; hybrid fuel was prepared by three-phase microemulsion process, while hydroprocessed fuels were produced via hydro-processing followed by true boiling point distillation as per ASTM D2892 and ASTM D5236 specifications. The principal fuel properties of the biodiesel, hybrid fuel, and hydroprocessed fuels were measured as per ASTM/EN standards and compared with those of petro-diesel. The production cost per liter (L) of each of the biofuel was computed at the lab scale level. Moreover, the initial capital cost estimation for 400 L/batch/day pilot plant has been estimated on the basis of land, infrastructure, instruments, laboratory glassware, feedstock, chemicals, and workers. It is anticipated that more than 0.28 million USD are needed for the complete setup of pilot plant, which can get an approximate revenue of 0.1 million USD per annum, besides the environmental benefits.

Economic overview of a two-agent process for underground coal gasification with Fischer–Tropsch-based poly-generation

Abstract Underground Coal Gasification (UCG) is a mining-gasification process that produces synthesis gas from in situ coal by injecting air (or oxygen and steam) and extracting the produced gas via boreholes. The resulting synthesis gas (‘syngas’) produced by UCG can be used directly as a fuel-gas or deep-cleaned to produce many other products like chemicals, liquid fuels, hydrogen and synthetic natural gas. UCG has significant environmental, safety and practical advantages over conventional coal mining and utilization, foremost being cost and emissions reductions. In South Africa, facilities of an industrial-scale Fischer–Tropsch (FT) have been operating for decades on coal-to-liquid and gas-to-liquid conversion. Oxygen-blown UCG produces syngas, which contains a mixture of carbon monoxide (CO) and hydrogen, and these molecules can be conditioned to serve as feed for synthetic-crude-oil (‘syncrude’) conversion technologies based on the FT process. African Carbon Energy (Pty) Ltd. (Africary) completed a study integrating its UCG technology with mini gas-to-liquids plant. Syngas from Africary’s Theunissen Underground Coal Gasification (TUCG) project will be used for power production and synthesis of liquid fuels in a unique poly-generation configuration. The TUCG process will consist of two parallel gasifiers, operated on different agents, making the component parts of UCG and coal-to-(any product) (CtX) tightly linked and interdependent, but reducing both cost and emissions. UCG-CtX offers a lower capital investment to conventional underground mining and surface gasification due to the removal of the surface gasifier and coal-mine operations. The gas clean-up systems will remove undesirable components from each gasifier and blend the cleaned syngas for H2:CO ratio control and provide implementation of carbon capture and sequestration. This study has minimized the complexity and optimized the process flow to provide own-use electricity and about 4000 barrels/day equivalent fuels at a capital cost estimate (2017) of about US$ 350 million and operating cost of around 28 US$/barrel.

Techno-economic feasibility assessment of calcium looping combustion using commercial technology appraisal tools

Calcium looping combustion (CaLC) is a new class of lowCO2emission technologies for thermochemical conversion of carbonaceous fuels that can help achieve the emissions reduction targets set out in the Paris Agreement. Compared to mature CO2 capture technologies, which cause net efficiency penalties higher than 7% points, CaLC results in a net efficiency penalty of 2.9% points. However, a thorough economic assessment of CaLC needs to be undertaken to evaluate its economic viability. The levelised cost of electricity is commonly used to assess the economic performance of clean energy systems. However, this method does not account for commercially important parameters, such as tax, interest, and depreciation charges. This study aimed to improve the reliability and accuracy of economic assessments of clean energy systems by implementing the net present value (NPV) approach. This approach was applied to assess the economic performance of two concepts of the CaLC-based power plant with either the conventional steam cycle (SC) or the supercritical CO2 cycle (s-CO2) for heat utilisation along with the bottom-up approach to total capital cost estimation. A parametric study for both concepts was also conducted to assess the impact of the key thermodynamic parameters on the economic performance. Although the s-CO2 case with revised assumptions was shown to result in a 1%-point lower net efficiency compared to the SC case, its break-even cost of electricity was lower by 0.81 €/MWh. Further improvements of the techno-economic performance can be sought by optimisation of the s-CO2 cycle structure.

A New Cost Model for Estimation of Open Pit Copper Mine Capital Expenditure

One of the most important issues in all stages of mining study is capital cost estimation. Determination of capital expenditure is a challenging issue for mine designers. In recent decade, quite a few number of studies have focused on proposing estimation models to predict mining capital cost. However, these efforts have not achieved to a predictor model with reliable range of error. Both of overestimation and underestimation of capital expenditure are causing huge problems. The former leads to estimating the value of projects less than the real value, and the latter causes to fail or postpone the project. In this paper, in order to achieve a reliable cost model, the technical and economic data of 15 open pit porphyry copper mines have been collected. The proposed cost model is developed based on stepwise multi variate regression . The R square of the presented model was 97.53% and indicated a proper fit on the data set. In addition, the mean absolute error with respect to the average capital cost of data set used in the modelling procedure was obtained ±8%. The results showed that this model is capable of estimating open pit porphyry copper mine capital expenditure in an acceptable range of error. One of the most important issues in all stages of mining study is capital cost estimation. Determination of capital expenditure is a challenging issue for mine designers. In recent decade, quite a few number of studies have focused on proposing estimation models to predict mining capital cost. However, these efforts have not achieved to a predictor model with reliable range of error. Both of overestimation and underestimation of capital expenditure are causing huge problems. The former leads to estimating the value of projects less than the real value, and the latter causes to fail or postpone the project. In this paper, in order to achieve a reliable cost model, the technical and economic data of 15 open pit porphyry copper mines have been collected. The proposed cost model is developed based on stepwise multi variate regression . The R square of the presented model was 97.53% and indicated a proper fit on the data set. In addition, the mean absolute error with respect to the average capital cost of data set used in the modelling procedure was obtained ±8%. The results showed that this model is capable of estimating open pit porphyry copper mine capital expenditure in an acceptable range of error.

Measuring Marginal q

Using asset prices I estimate the marginal value of capital in a dynamic stochastic economy under general assumptions about technology and preferences. The state-space measure of marginal q relies on the joint measurability of the value function, i.e. firm market value, and its underlying firm state variables. Unlike existing methodologies, the state-space marginal q requires only general restrictions on the stochastic discount factor and the firm investment technology, and it uses simple linear estimation methods. Consistently with a large class of neoclassical investment models, I construct the state-space marginal q using the firm capital stock and profitability shocks. I show that this new measure of real investment opportunities is substantially different from the conventional Tobin's Q, it yields more plausible and robust estimates of capital adjustment costs, it increases the correlation with investment and the sensitivity of investment to fundamentals.

Mining capital cost estimation using Support Vector Regression (SVR)

Determination of Capital Expenditure (CAPEX) is a challenging issue for mine designers. Underestimating the capital cost in mining projects may postpone the construction and accordingly the production phases. In addition, overestimating the capital cost may decrease value of the project. Currently available capital cost estimation models cannot predict mining CAPEX in a reliable range of error. Since, current models are not considering all effective parameters other than capacity, annual ore production and waste stripping, they cannot turn out to a reliable result, although they can be used for a rough estimation of CAPEX. In this paper, to estimate the capital cost of mining projects, a model based on Support Vector Regression (SVR) is developed. To establish this model the technical and economic data of 52 open pit porphyry copper mines were collected. Robust design of this model led to negligible error of estimation of CAPEX anticipation procedure. According to the results, the capability of presented model to estimate the mining CAPEX in a wide range of mining capacity is proved. So, as a whole, with a view of evaluation results, this model can be used as a reliable model for estimating of mining CAPEX.

Techno-economic forecasting of a hypothetical gas hydrate field in the offshore of India

Abstract The National Gas Hydrate Program 01 Expedition (2006) and the National Gas Hydrate Program 02 Expedition (2015) have established the presence of large deposits of gas hydrates in deep-water areas offshore India. This paper presents the results of a techno-economic study carried out for the development of a hypothetical gas hydrate field in the Krishna-Godavari (KG) Basin located along the eastern margin of India. Standard industry approaches have been used to carry out capital cost and operational cost estimates. Based on initial reservoir simulation modelling results, three cases have been considered to encompass the possible range of reservoir production responses. In the first case, 18 MMSCMD of gas is envisaged to be produced from 120 wells for a production period of 10 years. In the second case, 12 MMSCMD of gas is envisaged to be produced from the 120 wells for 16 years. In the third case, 6 MMSCMD of gas is envisaged to be produced from the 120 wells for 30 years. The production rates assumed in Case 3 best represents what is believed to be the most reasonable production rates as modeled for a gas hydrate accumulation (NGHP-02 Area B; Site NGHP-02-16) drilled during NGHP-02. For Case 1, an initial determination is that field development is economically viable for prevailing gas price of USD 7.67/MMBTU with NPV of 1921 MMUSD and IRR of 27.87% with a cost of production of USD 4.74/MMBTU. For Case 2, the study indicates that field development is viable with NPV of USD 986 MMUSD and IRR of 20.27% and cost of production of USD 5.8/MMBTU. For Case 3, the cost of production is USD 9/MMBTU. No production data is available for the gas hydrate accumulations discovered during NGHP-02 in the offshore of India; therefore, these techno-economic results generated in this study can only be validated after matching the results from future pilot production testing under actual field conditions.

Techno-Economic Analysis of a Glycerol Biorefinery

Biodiesel is an environmentally friendly alternative to fossil fuels, which is experiencing a steep growth in market size. Because the most common biodiesel production technology is based on the transesterification of triglycerides, a burgeoning amount of glycerol byproduct is obtained. In order to address this economic and ecologic drawback, several chemocatalytic technologies have been developed to exploit this compound to feed the market with added-value products. Lactic acid, acrylic acid, allyl alcohol, propanediols, and glycerol carbonate have emerged as the most relevant candidates for this purpose. In previous studies, an environmental and economic assessment of a glycerol biorefinery built on these valorization pathways has been performed, taking into account only the operating costs in relation to the economic aspects. This study evaluates for the first time the investment required by these glycerol valorization processes, based on the Guthrie, Taylor, and Aspen capital cost estimation methods, ...

Bottom-up cost evaluation of SOEC systems in the range of 10–100 MW

A detailed bottom-up cost evaluation of SOEC systems in the range of 10–100 MW was carried out based on recent experimental results in the SOEC field. Capital costs of installed SOEC systems were evaluated starting from raw SOEC materials. Two scenarios were defined, assuming different capacities of SOEC units, yearly production capacities of SOEC cells and stacks as well as operating conditions of manufacturing lines. It resulted in installed capital costs of 309–395 €/kW for SOEC units integrated into power-to-methane plants (reference case) and of 380–494 €/kW for stand-alone SOEC units. This highlights the cost reduction potential of the SOEC technology when thermally coupled with a steam source. These costs were compared with previous capital cost estimates for future SOEC, proton exchange membrane (PEM) and alkaline electrolysis systems available in the literature. A sensitivity analysis allowed to identify which parameters have the highest impact on installed system costs. In the least favorable conditions, it was estimated that they could raise up to 494–618 €/kW for SOEC units in the reference case and up to 573–727 €/kW for stand-alone SOEC units.

Estimating capital costs of wastewater treatment plants at the strategical level

ABSTRACTThe present paper aims at the establishment and testing of construction cost functions for wastewater treatment plants (WWTP) based on their hydraulic and physical characteristics. A five-step methodology is followed: (1) database construction and asset characterization; (2) present cost value calculation; (3) key parameters and cost functions establishment; (4) cost modelling; and (5) model testing. A large set of construction costs and infrastructure data from several Portuguese wastewater utilities is analysed including 147 WWTP. Simple linear regression analysis is carried out to obtain cost functions for five types of WWTP. The cost modelling also includes the estimation of 90% prediction bands. Each developed cost function is tested for checking their statistical significance. Results allow the estimation of capital costs of new WWTP and the assessment of the current value of existing assets at the strategical and tactical planning levels without the knowledge of the specific components of the facilities.

A regression-tree-based model for mining capital cost estimation

ABSTRACT Determination of mining capital cost always is a challenging issue for mining engineer. Underestimating the capital cost may postpone the construction and production phases. In addition, overestimating may decrease value of the project. Currently available capital cost estimation models cannot predict mining capital cost in a reliable range of error. Therefore, in this paper, a model based on regression tree method is developed to estimate the mining capital cost. According to the obtained results, the capability of presented model to estimate the mining capital cost in a wide range of mining capacity is significant.

Hydrothermal liquefaction of Radiata Pine with Kraft black liquor for integrated biofuel production

This paper aims to evaluate the feasibility of hydrothermal liquefaction (HTL) of Radiata pine with black liquor from an existing Kraft pulp mill. The biomass into the HTL process was assumed at 2000 t/day and converted into bio-crude through the HTL process and upgraded to produce a gasoline and diesel blend. The HTL process was scaled-up based on an existing published patent. Mass and heat balance of the process was obtained through the process simulator, Aspen Plus. Process Integration was carried out to minimise the hot and cold utility of the process. The production rate of the process is 78.7 kt/y of fuel. The minimum fuel selling price (MFSP) was estimated at 0.95 USD/LGE (litre gasoline equivalent). A sensitivity analysis was carried out to determine the MFSP in 2017 and to study the changes of MFSP due to the uncertainty in the capital cost estimation.