Capital Cost Evaluation Research Articles

Capital cost evaluation of conventional and emerging redox flow batteries for grid storage applications

Redox flow battery (RFB) is a promising technology to store large amounts of energies in liquid electrolytes attributable to their unique architectures. In recent years, various new chemistries have been introduced in both aqueous and non-aqueous electrolytes as pathways to lower-cost systems, eventually meeting the long-term cost target of USD$ < 100 (kW h)−1 for board market penetration. Since there is a lack of capital cost data available for flow batteries under the same criteria and assumptions, a fact-based techno-economic analysis is evaluated based on real systems to facilitate the explorations of more competitive systems. In total, nine conventional and emerging flow battery systems are evaluated based on aqueous and non-aqueous electrolytes using existing architectures. This analysis is attempted to evaluate the feasibility of these emerging systems to meet the cost target and to predict their technological prospects for energy storage applications. The capital costs of these resulting flow batteries are compared and discussed, providing suggestions for further improvements to meet the ambitious cost target in long-term.

Evaluation of Capital Cost: Long Run Evidence from Manufacturing Sector

The article is directed to determine the most appropriate method for evaluating cost of capital of a manufacturing sector and, using the methodology, to perform a case study of Lithuanian manufacturing sector. For evaluation of cost of capital, calculation of Weighted Average Capital Cost was chosen, as literature analysis distinguished this method as the most widely accepted and used. Some changes were made to the methodology of WACC evaluation in order to adapt the method for countries, which do not contain liquid, mature financial markets, like using country’s credit ranking to assess risk premium and adding this premium to base premium for maturelly developed equity markets. The case study of Lithuanian manufacturing sector was performed for the period of 2001-2016. Empirical study revealed that required rate of return on separate WACC components evolved differently between the years of 2001-2016. Average annual return on equity for the period 2001-2016 was 7.7%, while average annual return on debt was only 4.4%. In the year of 2015 weight of equity capital, first time during the analyzed period, exceeded 50%. In the same year, ratio of net profit before taxes to total assets of Lithuanian manufacturing sector also reached the highest value at the time, later surpassed in 2016. This fact demonstrates, that increased free cash flows from the operations were reinvested into further development of the companies. To maximize value of the shareholders, it would be preferable to pay out portion of earnings as dividends and finance growth with debt, as it is currently a cheaper alternative.

Pilot study of in-line continuous flocculation water treatment plant

Human consumption of groundwater without treatment is not safe and can cause water-borne diseases and other kinds of illnesses. Usually, groundwater extracted through boreholes may be acidic and contains impurities such as organic and inorganic contaminants, microbes, and heavy metals. Hence, it becomes imperative to treat groundwater to make it potable for human consumption. This pilot study was conceptualized based on a simple and the most economical technological approach in groundwater treatment. It employed the basic concepts and working principles of essential unit operations such as coagulation, sedimentation, filtration, and adsorption to ensure potable water for human consumption based on WHO standard specifications. The plant specifically treats groundwater of pH 6.30-6.50. The average flow rate of the plant is 12,570 cm3/min (0.7542 m3/hr) and a centrifugal pump of 0.5 HP and a pipe size of 20 mm diameter were selected for this design. Equipment used were determined, sized and selected as required and the treated water quality is ensured through laboratory routine tests carried out in the course of the continuous operation of the pilot plant. Sand filter and carbon purifier are inevitable and a turbidity sensor is proposed for the filters to optimize the backwash operation. Capital cost evaluation was carried out using the percentage of delivered equipment cost method and the total capital cost for this pilot plant was estimated as One Thousand, Seven Hundred and Eighty-Two-Ringgit (RM 1,782.00 ≈ USD445.50). Thus, with this successful pilot study for a continuous treatment operation, a plant scale-up is feasible for groundwater purification to ensure potable water security in both rural and urban communities.

Assessing I2S-LWR economic competitiveness using systematic differential capital cost evaluation methodology

One of the main factors impeding nuclear power plant (NPP) construction is their economics. In this study, a systematic differential economics evaluation approach was developed through the use of the Code of Accounts guidelines to assess the costs of nuclear power plants. The methodology, entirely based on publicly available data, may serve as a template to evaluate direct costs for reactors of any size and design at any stage of developments. In particular, this approach was used to assess the costs of the Integral Inherently Safe Light Water Reactor (I2S-LWR).The I2S-LWR is a design concept of a large (∼1000 MWe) light water reactor. One of its key design features promoting inherent safety is implementation of an integral primary circuit configuration, which however necessitates a compact design of the core and primary circuit components.Through the methodology here presented, a representative loop PWR design was taken as a reference and the differential cost was estimated for each individual account based on the design difference, or similarity. Cost scaling techniques were applied to the accounts representing systems that differ from the ones of the reference PWR. Cost estimating techniques were used to evaluate cost of innovative components that are not part of standard PWR designs. By evaluating the cost difference of the I2S-LWR from the standard PWR, rather than the absolute cost, the uncertainty in the estimate is reduced. A similar approach was used by ORNL to estimate the cost of a Fluoride-salt High-temperature Reactor (FHR).A traditional four-loop PWR plant with a core thermal power of 3417 MWth (1144 MWe) was selected as the reference. Costs for that plant were prepared in 1978 by the Department of Energy (DOE) Energy Economics Data Base (EEDB), averaging actual cost incurred in the construction of several nuclear power plants (NPP), itemized with a great level of detail according to the Code of Accounts. This best estimate costs are denoted PWR12-BE. For each account, the cost of equipment, site labor and site material is provided. Industry experts at Westinghouse Electric Company performed a “sanity check” of the cost items, adjusting the cost of several items to match the current market and supply chain data.The detailed cost assessment of I2S-LWR was performed, systematically analyzing cost for each account, and applying the differential economics approach. First, Relative importance of each account, i.e., its contribution to the total cost was established, to help focus analysis on the most significant contributors. Moreover, the accounts describing components that are different than that of the PWR12-BE were identified.The integral configuration of the reactor has important implications on the cost of the reactor plant equipment (accounts 22x). Turbine generator equipment (Accounts 23x) is not believed to be much different than that of the reference design. I2S-LWR structures (Accounts 21x) mainly differ from that of a standard LWR as several buildings (containment building, shield building, annex building, waste processing building, fuel storage building) are integrated into a single building (nuclear island). Yardwork has a higher cost for the I2S-LWR, as the NI is partially below grade. On the other hand, due to its compact Nuclear Island footprint, I2S-LWR facilitates (and includes in its reference version) the use of seismic isolators, which contribute to reducing the direct cost. The total capital investment cost (TCIC), on the $/kW basis, of I2S-LWR is 5.84% lower than that of PWR12-BE, in spite of the lower power output of I2S-LWR. However, for the Western US (0.7 g), benefits of the seismic isolation are more pronounced, and the I2S-LWR total capital investment cost is 13.02% lower than that of PWR12-BE. If the I2S-LWR is compared to a PWR10-BE (traditional loop design, but scaled to the same power level as I2S-LWR), the savings are even higher, in the range 11.12%–17.89%.The analysis indicates that I2S-LWR has potential to offer an economically attractive design, with TCIC lower than that of a nuclear power plant based on a traditional loop PWR design. In other words, I2S-LWR design offers significantly enhanced safety, while at the same time improving economics.The differential economics approach developed in this paper can be used in identifying changes in cost of key components in order to improve the economics of a nuclear reactor design. The method can also help compare the economics of advanced Generation IV reactors and innovative water-cooled SMR (Small Modular Reactors) with respect to standard LWR technologies. In summary, the differential economics approach and can be used as a tool capable of helping stakeholder decisions.

Heat transfer efficiency and capital cost evaluation of a three-phase direct contact heat exchanger for the utilisation of low-grade energy sources

Low-grade energy cycles for power generation require efficient heat transfer equipment. Using a three-phase direct contact heat exchanger instead of a surface type exchanger, such as a shell and tube heat exchanger, potentially makes the process more efficient and economic. This is because of its ability to work with a very low temperature driving force, as well as its low cost of construction. In this study, an experimental investigation of the heat transfer efficiency, and hence cost, of a three-phase direct contact condenser has been carried out utilising a short Perspex tube of 70cm total height and 4cm internal diameter. Only 48cm was used for the direct contact condensation. Pentane vapour with three different initial temperatures (40°C, 43.5°C and 47.5°C) was contacted with water with an inlet temperature of 19°C. In line with previous studies, the ratio of the fluid flow rates was shown to have a controlling effect on the exchanger. Specifically, the heat transfer efficiency increased virtually linearly with this ratio, with higher efficiencies also being observed with higher flow rates of the continuous phase. The effect of the initial temperature of the dispersed phase was shown to have a lower order impact than flow rate ratio. The capital cost of the direct contact condenser was estimated and it was found to be less than the corresponding surface condenser (shell and tube condenser) by 30 times. An optimum value of the continuous phase flow rate was observed at which the cost of the condenser is at a minimum.

Capital Cost Targeting of Total Site Heat Recovery

Exploiting heat recovery on Total Site level offers additional potential for energy saving through the central utility system. In the original Total Site Methodology (Klemes et al., 1997) a single uniform ΔTmin specification was used. It is unrealistic to expect uniform ΔTmin for heat exchange for all site processes and also between processes and the utility system. The current work deals with the evaluation of the capital cost for the generation and use of site utilities (e.g. steam, hot water, cooling water), which enables the evaluation of the trade-off between heat recovery and capital cost targets for Total Sites, thus allowing to set optimal ΔTmin values for the various processes. The procedure involves the construction of Total Site Profiles and Site Utility Composite Curves and the further identification of the various utility generation and use regions at the profile-utility interfaces. This is followed by the identification of the relevant Enthalpy Intervals in the Balanced Composite Curves. A preliminary result for evaluation of heat recovery rate and capital cost can be obtained.

A comparison between a steady state and a pulsed fusion power plant

In the paper the first results of a simplified code (FRESCO) for the evaluation of capital cost and cost of electricity of a D-T Tokamak fusion power plant are reported. For the scope of this paper, only the main assumptions and features of the code are described and its validation against the figures of the European PPCS plant models are presented. The code is here applied to compare the costs of a steady state and a pulsed fusion power plant.

ANALYSIS OF THE CAPITAL COST IMPACT ON SHARE VALUE / KAPITALO SĄNAUDŲ ĮTAKOS AKCIJŲ VERTEI ANALIZĖ

One of the most important business management tasks for enterprises is the calculation of an appropriate rate of return for invested capital or cost of capital. The article presents a theoretical and practical analysis of four of the most commonly used capital cost evaluation models. Based on the results, the two most suitable capital cost evaluation models that can be used under the prevailing conditions in Lithuania are identified. The analysis of the influence of the cost of capital on share values revealed the factual influence of the valuation models on share values. Thus, based on the research results, the authors recommend that under the current conditions, the Capital Asset Pricing Model and the Fama‐French model can be applied in the share valuation process. Santrauka Vienas svarbiausių įmonės verslo vertinimo uždavinių ‐ tinkamas rizikos ir investuoto kapitalo gražos įvertinimas. Straipsnyje pateikiama keturių dažniausiai praktikoje taikomų kapitalo sąnaudų vertinimo modelių teorinė ir praktinė analizė. Remiantis gautais rezultatais išskiriami du tinkamiausi modeliai kapitalo sąnaudoms vertinti Lietuvos sąlygomis. Atlikta kapitalo sanaudų įtakos akcijų vertei analizė parodė faktinę vertinimo metodo įtaka prognozuojamai akcijų vertei. Remdamiesi tyrimo rezultatais autoriai siūlo šiuo metu akcijų vertinimo procese taikyti kapitalo aktyvų vertinimo modelį bei Fama ir French modelį.

Energy saving and capital cost evaluation in distillation column sequences with a divided wall column

The divided wall column (DWC) to separate three components in a single distillation tower is receiving increasing interest in industrial applications due to the potentiality in energy and capital cost savings. In this work, the DWC configurations for the separation of a four components mixture was considered, and 5 different composition cases were analyzed. After selecting the best simple column (SC) sequence, the hybrid structures obtained by considering a configuration with a DWC replacing the first or the last two SCs of the sequence are considered. To simulate the DWCs a short-cut code was used to get the input data necessary to initialize the rigorous simulations. The results obtained for the hybrid structures were compared with the performance of the best SC sequence from which are derived to evaluate energy and capital cost savings. The Petlyuk and the DWC structures were considered independently in the capital cost evaluation to select the most convenient configuration. A significant energy reduction was achieved with DWC structures, while the saving in capital costs is lower than the 30% value reported in most of the specialized literature.

The Concepts of Energy, Environment, and Cost for Process Design

The process industries (specifically, energy and chemicals) are characterized by a variety of reactors and reactions to bring about successful process operations. The design of energy-related and chemical processes and their evolution is a complex process that determines the competitiveness of these industries, as well as their environmental impact. Thus, we have developed an Enviro-Energy Concept designed to facilitate sustainable industrial development. The Complete Onion Model represents a complete methodology for chemical process design and illustrates all of the requirements to achieve the best possible design within the accepted environmental standards. Currently, NOx emissions from industrial processes continue to receive maximum attention, therefore the issue problem of NOx emissions from industrial sources such as power stations and nitric acid plants is considered. The Selective Catalytic Reduction (SCR) is one of the most promising and effective commercial technologies. It is considered the Best Available Control Technology (BACT) for NOx reduction. The solution of NOx Emissions problem is either through modifying the chemical process design and/or installing an end-of-pipe technology. The degree of integration between the process design and the installed technology plays a critical role in the capital cost evaluation. Therefore, integrating process units and then optimizing the design has a vital effect on the total cost. Both the environmental regulations and the cost evaluation are the boundary constraints of the optimum solution.

Design, Capital and Operating Costs of Mineral Processing Plants

This paper reviews important aspects of the design of mineral processing plants, emphasizing the different factors which seem to be most important today, when labour and energy represent a high proportion of total costs. Such items as autogenous and semi-autogenous grinding, two-stage classification, large flotation cells, pressure filtration, etc., are discussed. Recent examples of flotation plants are described Capital cost evaluation is briefly surveyed, as well as generally accepted procedures; relationships with flowsheeting and mill design are specially pointed out Distribution of operating costs is reported on the basis of processes and elements, and a few examples are fully detailed.

Evaluation of capital costs in a multi-level inventory system by means of the annuity stream principle

In this paper some results obtained from applying the annuity stream principle for evaluating capital tied up in inventory and work-in-progress and presented. This principle departs from the cashflows associated with the production-inventory processes considered in contrast to traditional procedures by which the inventory value is determined from physical stock evaluated at costs incurred to date. In many situations it appears that the traditional procedure will underestimate the amount of capital tied up in production. In this paper the two principles are applied to a multi-level inventory system and the capital cost expressions and optimal order quantities are compared.

Influence of conductor designs and operating temperature on the economics of overhead lines

Line designs have been prepared covering temperate and tropical conditions for an alternating voltage of 132–1500kV and a direct voltage of ±125 to ±1000kV. The conductors and bundle arrangements were selected taking into consideration corona, radio interference and the factors which influence the current-carrying capacity of a conductor. Evaluation of capital costs of lines and specific transmission costs have been carried out for the above designs. The interrelationship between the conductor size, the load transmitted, the conductor temperature and the specific transmission cost is shown for selected loads. For the typical parameters assumed in the study, it is concluded that, for a given load, the optimum economic transmission cost occurs with a relatively large area of conductor cross-section and at relatively low conductor temperature.