Negative Net Present Value Research Articles

Employee firing costs and accounting conservatism: Evidence from wrongful discharge laws

AbstractThis paper identifies the causal effect of a firm's employee firing costs on its conditional conservatism, using the staggered adoption of US state wrongful discharge laws (WDLs) that increase a firm's cost of firing employees. We find that the adoption of WDLs leads to a significant increase in conditional conservatism. This result is greater for firms that are more labor‐intensive, have higher propensities to fire employees, make more firm‐specific investments and have greater risk. Overall, our findings support the view that higher firing costs lead to greater demand for conditional conservatism to decrease investment inefficiencies because higher firing costs make inefficient investments (including overinvestment in negative‐net present value (NPV) projects and delays in disinvesting poorly performing projects) costlier for the firm.

Life Cycle Assessment and Cost-Benefit Analysis of Technologies in Water Resource Recovery Facilities: The Case of Sludge Pyrolysis.

In Europe, sewage sludge is mostly used in agriculture (49%) or incinerated (25%). Technologies for sludge management that can support the transformation of wastewater treatment plants (WWTPs) to water resource recovery facilities (WRRFs) are emerging. Sludge pyrolysis is one of them. It can generate two main high-value co-products: heat and biochar. Moreover, biochar can be transformed into activated carbon. The economic and environmental impacts of sludge pyrolysis and its comparison to the direct application of sludge in agriculture and incineration are unknown. Therefore, we applied a life cycle assessment (LCA) and a cost-benefit analysis (CBA) of sludge pyrolysis. We quantified environmental externalities in an LCA and then applied the benefit transfer method to monetize these externalities, which were included in an economic CBA. Pyrolysis reduced impacts in five to nine LCA categories and had a positive economic net present value (NPV) compared to using sludge in agriculture. Pyrolysis with biochar production was not better than incineration, showing increased impacts in nine categories and negative NPVs (-19 to -22 €/t sludge). The factor driving differences between the alternatives was the assumed CO2 externality price (164 €/ton CO2-eq) and the removal rate of pharmaceutical micropollutants of the sludge-based activated carbon. High uncertainty in environmental prices is one of the limitations of our study.

Renewable Energy Communities as Modes of Collective Prosumership: A Multi-Disciplinary Assessment Part II—Case Study

Renewable Energy Communities (RECs) have been defined as modes of collective prosumership under the Renewable Energy Directive (RED II). We evaluate the benefits offered by RECs and the barriers and enablers impacting their uptake. Germany is taken as a case study for a novel multi-disciplinary assessment of a potential REC intended as a climate-neutral, mixed-use district. We found that energy cooperatives may not be suited to form RECs, but the future may see an uptake of innovative organizational structures such as the Consumer Stock Ownership Plan. It has been shown that a high degree of prosumership can provide technical and economic benefits with maximum greenhouse gas savings of 35% and a maximum self-consumption share of 61% compared to no prosumership. The REC has a negative Net Present Value (NPV) after 25 years of operation and lacks financial attractiveness. A positive NPV is only possible by using the cost savings from prosumership to recoup the investments faster. RECs are a promising mode of citizen participation in the energy transition; however, for their application in Germany, together with the currently missing regulatory allowance of sharing energy between small-scale parties over a public grid, dedicated subsidies, one-time grants or price support for operators are needed.

Economic Feasibility of Tropical Forest Restoration Models Based on Non-Timber Forest Products in Brazil, Cambodia, Indonesia, and Peru

Mobilizing funds is a major challenge to achieve scalable Forest Landscape Restoration projects. While pure ecological restoration may not be a feasible investment from the private perspective, combining native species with non-timber forest products (NTFP) species may be a solution for reaching large scale and financially sustainable forest restoration. This study addresses potential species combinations for 12 restoration models, three models being based in pure ecological restoration and nine models being based on agroforests with NTFP, their economic costs, and benefits in tropical forests in Brazil, Peru, Cambodia, and Indonesia. A total of 12 semi-structured interviews were conducted to capture the models’ productivity and prices. As for the prices that the producers did not know, specialized stores were consulted in the cities of the collection. The starting investment to restore 01 hectare (ha−1) of tropical forest ranged between US $104 and $7736, with an average of $1963 ha−1 and a standard deviation of $2196 ha−1, considering the 12 cases evaluated in 2018 and 2019. From nine restoration models that had economic purposes, financial indicators showed a median net present value (NPV) of $1548 ha−1, and a median internal rate of return of 22%, considering a discount rate of 10%. The NPV varied between $−685 ha−1 and $55,531 ha−1. Costs of pure ecological restoration were on average 42% lower than agroforestry systems, but did not produce direct income from NTFP, therefore yielding negative NPV. The study demonstrated the economic feasibility of seven of nine models that had economic objective, showing that there are promising business cases for private investment in tropical forest restoration.

Real options approach: Case study applied to a nursery to produce Eucalyptus forest seedlings in Brazil

Aim of study: We checked if an infrastructure investment project for a nursery to produce Eucalyptus forest seedlings using the real options approach was economically viable, in order to verify the influence of the deferral, expansion and abandonment options on the investment project value, as well as their concatenation.
 Area of study: Our study was based on technical-economic coefficients of a nursery infrastructure to be installed in the São Paulo’s state Midwest region, Brazil.
 Material and methods: The investment was assessed by addressing the uncertainties inherent in the investment project. We used the dynamic model for real option approach and, to determine the volatility of the project, we applied the Monte Carlo simulation method. As real options for the project, we employed deferral, expansion, and abandonment.
 Main results: Using the traditional valuation methodology, we obtained a negative static net present value of USD 50,957. When incorporating the real options of the abandonment, deferral and expansion in the form of managerial flexibility to forest managers, we obtained the expanded net present value of USD 216,498, that is, 524.8% of valuation. The traditional method of investment evaluation undervalues the project in infrastructures to produce Eucalyptus forest seedlings nursery, and the increase in managerial flexibility, through the real options for deferral, expansion and abandonment, promotes value to forest managers and enables the feasibility of the project.
 Research highlights: Infrastructure investment project for a nursery to produce Eucalyptus forest seedlings is not economically viable through the traditional economic evaluation techniques. However, by incorporating managerial flexibilities, through real options, the investment project was valued and it became economically viable.

Possible Ways of Extending the Biogas Plants Lifespan after the Feed-In Tariff Expiration

Energy production from biogas can play a pivotal role in many European countries, and specifically in Italy, for three main reasons: (i) fossil fuels are scarce, (ii) imports cover large shares of internal demand, and (iii) electricity and heat production from biogas is already a consolidated business. Nonetheless, in Italy, current legislation and incentive policies on electricity generation from biogas are causing a stagnation of the entire sector, which may lead to the shutting down of many in-operation plants in the years 2027–2028 and the consequent loss of 573 MWel over a total of 1400 MWel. This work aims to investigate the potential of revamping biogas power plants in prolonging operation until the end of the plants’ useful life, regardless of the implementation of a new government’s incentive schemes. Based on the time-series analysis of electricity prices in Italy and a case study representative of the vast set of in-operation power plants, our findings show that 700 plants will likely shut down between 2027 and 2028 unless the government adequately rewards electricity produced and fed into the grid via incentive schemes. In detail, our results show that the investment to revamp the plant exhibits a highly negative Net Present Value.

Plug-In Platforms: The Push for Offshore Electrification

The energy transition march toward net zero moves to different beats all around the world. With much of the initial focus on industry and what it can do to help curb CO2 emissions, attention soon turns to the worst offenders. According to the US Environmental Protection Agency in 2020, one quarter of all CO2 emissions came from electricity generation. Approximately 60% of our electricity comes from burning fossil fuels, mostly coal and natural gas. Coming in second, at 24%, was industry. Greenhouse-gas (GHG) emissions from industry primarily come from burning fossil fuels for energy, as well as GHG emissions from certain chemical reactions necessary to produce goods from raw materials. While these numbers pertain to the US, they ring mostly true around the globe where across the Atlantic Ocean some oil and gas companies are facing the challenge on both fronts by working to eliminate gas-fired turbines that generate electricity offshore. No country has done more with offshore electrification to date than Norway. Oil and gas extraction on the Norwegian Continental Shelf (NCS) accounts for 27% of the country’s total CO2 emissions. Norway’s top producer Equinor has been on the forefront of offshore electrification for almost 3 decades. Electrification requires an efficient solution to convert electric power transmitted to an offshore field into mechanical motion to operate components. Size, weight, efficiency, cost, and equipment availability play key factors in determining the outcome. Historically, the solution has been the use of shore power but today, innovative approaches can be implemented using renewable sources. “The Norwegian Climate Action Plan for 2021 to 2030 came one-and-a-half year ago, where the previous government, then with actually strong support from most politicians, said that the CO2 tax shall rise to NOK 2,000 ($200) per tonne within 2030,” explained Simen Moxnes, senior advisor, new energy systems, Climate Initiative Norway for Equinor. “CO2 tax is a quite strong signal because then abatement projects that earlier had negative net present value suddenly get profitable since we don’t have to pay that tax if we can avoid emissions. Then we got the new government one year ago and, in their platform, they said that the target of 40% for oil and gas industry shall be increased to 50%. We have a quite large toolbox to obtain this. Operational measures that need energy efficiency is the go-to solution first. The best energy is the energy we don’t use.” Moxnes added, “We also have several other technologies developed like carbon capture and storage on brownfield platforms. These have proved to be very difficult to implement due to weight and space limitations. Weight and space on platforms are a scarce quality resource. Even these compact plants are quite weight intensive. In addition, you must install big equipment close to exhaust channels to catch the flue gas, and a lot of the brownfield projects have really struggled with that. For greenfield it’s much simpler.”

Perspectives on exploration and extraction of seafloor massive sulfide deposits in Norwegian waters

Abstract We present a stochastic dynamic simulation model for exploration and extraction of seafloor massive sulfide (SMS) mineral deposits on the Norwegian Continental Shelf (NCS). The model is developed based on selected industry knowledge, expectations, and perceptions elicited through a participatory systems mapping session with 82 participants and 20 in-depth interviews with experts from industry, academia, and the public policy sector. Using the model, we simulate the expected ranges of resource- and economic potential. The simulation results indicate an expected commercial resource base of 1.8 to 3 million tons of copper, zinc, and cobalt, in which copper makes out the most significant part. Relating to the expected commercial resource base, we highlight a discrepancy between academic and industrial expectations, in which the academic expectations are more conservative than the industrial expectations. The corresponding net present values lie in the range of a net present loss of 970 million USD up to a net present gain of 2.53 billion USD, in which the academic expectations are projected to yield a negative net present value, while the industrial expectations are projected to yield a positive net present value. Closer investigation of the results reveals that one of the main challenges regarding SMS exploration and extraction is the initial exploration costs associated with coring operations. These costs are expected to be high with today’s exploration technology. Moreover, they occur relatively early in time compared to revenue-generating activity, which has a significant negative impact on the net present value of the industry due to discounting. Thus, a key focus of the industry should be to find ways to reduce the costs associated with coring operations and/or the time it takes from initial exploration to extraction and generation of revenue.

Determining the Extent of Economical Sustainability of a Case Study Milk Farm in Bosnia and Herzegovina Based on the Real Options Model

The aim of this research was to determine a sustainable economic model of a milk farm in Bosnia and Herzegovina through the possibility of reorientation of raw milk production into cheese on-farm processing. All investment costs, annual production costs, production quantities, prices and annual income were collected through an unstructured questionnaire. The case study farm, originally engaged in milk production, reoriented itself to processing milk into several products. A cost–benefit analysis was applied for the 14-year project lifetime, as well as the Black–Scholes and binomial models of real options evaluation for shifting to cheese production in the fourth year of the project. The milk production farm is economically inefficient, and the investment project is unacceptable, resulting in negative net present value under assumed typical production parameters, and the payback period is longer than the project lifetime. The cheese production option value is positive according to the Black–Scholes and binominal models. Both real options models confirmed that processing milk into cheese is sustainable long-term and economically.

Comparative Analysis for a Solar Tracking Mechanism of Solar PV in Five Different Climatic Locations in South Indian States: A Techno-Economic Feasibility

As the second most populous country in the world, India’s needs related to electricity production are still growing; thus, the country is seeking renewable energy resources as an alternative to conventional resources. Currently, India’s use of renewable energies ranks as fifth worldwide, with approximately 13.22% of the total amount of energy used in the form of solar energy, which is very nominal. Therefore, in the present study, a large-scale 20 MW solar PV power plant was modelled to access the technological and economic performances using the System Advisor Model (SAM) for the selected locations: Vishakhapatnam (VSKP), Hyderabad (HYD), Madurai (MDU), Thiruvananthapuram (TVC), and Bangalore (SBC), where solar radiation is high for South Indian states. In order to carry this out, three solar tracking mechanisms, i.e., fixed tracking (FT), single-axis tracking (SAT), and double-axis tracking (DAT), are taken into consideration at the selected locations. The results from the assessment of the FT mechanism’s yearly energy production show that 31 GWh were produced at TVC and 33 GWh were produced at VSKP, HYD, MDU, and SBC in the first year of the project, with a capacity factor (CF) from 18.5% to 19.5%. Conversely, the SAT mechanism generated an annual amount of energy, ranging from 38 GWh to 42 GWh, with an increase in the CF ranging from 22% to 23%. Furthermore, the DAT mechanism’s annual energy generated 44 GWh to 46 GWh, with the CF ranging between 25% and 26.5%. However, the recorded levelized cost of energy (LCOE) ranges were between 3.25 ¢/kWh to 4.25 ¢/kWh at the selected locations for all three mechanisms. The sensitivity analysis results also suggest that the FT and SAT mechanisms are not economically feasible because of their negative net present values (NPV) in all five locations, whereas the DAT mechanism generated positive results for all of the locations after 20 years. Furthermore, according to the study, we concluded that HYD was identified as the most feasible location in the South Indian region for installing a large-scale solar PV power project.

Economic analysis of threshing and shelling machine service provision to reduce post-harvest loss in Ethiopia

The Sasakawa Africa Association (SAA) has been addressing the neglected post-harvest sector in Ethiopia through promoting improved storage facilities and introducing handheld and motorized crop shelling and threshing machines. However, post-harvest technologies are poorly adopted by the farmers although the traditional threshing methods often result in high grain losses and low-quality produces due to low awareness of the farmers and service providers on the benefits of the technologies. This study, therefore, was conducted in May 2020 to determine the socio-economic benefits of the threshing/shelling machine so as to inform the service providers on how to improve the adoption of the machine. A total of eight youth group service providers in four woredas of Oromia and Amhara regions in Ethiopia were selected for the study. In a unimodal rainfall production region, the Bako model maize sheller and the dehusker machines were assessed, whereas in a bimodal production region the multi-crop thresher was evaluated. Primary data were sourced through Focus Group Discussions (FGD) and Key Informant Interviews (KII) and secondary data were extracted through document review. Discounted economic parameters such as Net Present Value (NPV), Internal Rate of Return (IRR) and Benefit Cost Ratio (BCR) were used for determining the profitability of the businesses. The result of the actual cashflow analysis in the unimodal area showed that the multi-crop thresher generated a negative NPV (USD -970) with IRR value of -6% and a BCR value of 0.87. On the contrary, in the bimodal area, the NPV was found to be positive (USD 1917.3) with a BCR of 1.21 and IRR value 36%. Congruently, the Bako model maize sheller machine resulted in NPV of USD 8227.5, BCR value of 3.51 with IRR value of 133%. On the other hand, the dehusker machine generated NPV of USD 2247.5 with a BCR of 1.45, and IRR of 24%. The partial budget analysis of the farmers revealed that the threshing machine reduced the threshing costs by USD158.2 (51.9%) per hectare of land compared to the traditional threshing method. On the basis of the minimum food energy requirement, in the two districts alone, the maize grain that was lost through traditional shelling would have fed 3,939 individuals or 788 households, whereas for teff crop, the loss would have fed 6,163 adults or 1233 households throughout the year. Based on the findings, the authors recommend to scale-up the introduction of the machines in the bimodal production areas where two harvesting seasons exist and increase the service charge and working hours- in the unimodal area to improve entrepreneurs’ profit and adoption of the machines. Key words: post-harvest loss, shelling, threshing, dehusking, economic analysis, food security

Viability of Point of Care Ultrasound screening in Primary Health Care Setting: A Kenyan Experience

The limited number of sonographers in developing countries and high cost of conventional obstetric ultrasound screening services has led to only 6.9 percent of pregnant women accessing the service in rural areas. It is a World Health Organization (WHO) requirement to have pregnant women access obstetric ultrasound screening before 24 weeks gestation. This led to Amref International University piloting a business model that can make point of care obstetric ultrasound screening (POCUS) affordable and sustainable. One-year post intervention, an evaluation survey got conducted in the project sites in two pilot counties in Kenya (Kajiado and Kisii counties) to establish the viability of the entrepreneurship driven implementation of POCUS. Two stage cluster sampling was employed with mixed methods of data collection. A sample of 33 Midwives and 196 women of reproductive age from the pilot sites participated in the evaluation. The survey findings were that midst the COVID-19 pandemic, a total of 1250 pregnant women were screened in one year at a fee of USD 5 per scan. Among those interviewed, 168 (85.7%) of the women confirmed the service was affordable and easily accessible. It emerged that 85 (43.4%) of the respondents were screened by midwives in local health centres. Notably,180 (91%) of the women interviewed recommended scaling up of the service and 32 (96%) of the midwives reported that the continuous coaching from radiographers enhanced skills acquisition. Despite the marginal negative net present value of cash flows, the impact generated by the project was of high significance. The conclusion drawn was that the business model is viable from implementation perspective since it demonstrated the potential to reach a Break-Even Point (BEP) at a modest of 1833 ultrasound scans per year. The project has potential for further buy-in by Primary health care professionals having accorded them a gross margin of 60% with a probable increase to 80% in subsequent years. Further, Obstetric Ultrasound screening services can be provided sustainably at low cost by trained Primary Health Care Workers (PHCWs). Financial viability of the POCUS is subject to increasing pregnant women’s access to POCUS.

TECHNO-ECONOMIC ASSESSMENT OF A 25 MW SOLAR PHOTOVOLTAIC SYSTEM FOR ELECTRICITY GENERATION IN EFFURUN-WARRI, NIGERIA

This paper was aimed at the techno-economic feasibility assessment of a 25 MW solar photovoltaic (PV) system for electricity generation in Effurun-Warri, Nigeria. The system advisor model (SAM) software was used to design and simulate the solar PV modules for power generation. Furthermore, the standard and validated models inbuilt in the SAM software were employed to analyze the techno-economic performance of the system and the energy losses. Results showed that the extent of energy losses considered in the design of the PV system had significant effects on system performance. For the 25 MW system assessed in this study, the highest monthly energy production was obtained at 3.9 GWh in January and the lowest at 1.9 GWh in July. Also, the total annual energy produced by the PV system was observed to depreciate as the system ages, with about 12% of the initial annual energy production expected to be lost after 25 years of system operation. The obtained capacity factor (12.1 %) and the performance ratio (0.75) revealed that the PV system in its current design would be inadequate to match the energy demand profile of Effurun-Warri, Nigeria. Additionally, the levelized cost of electricity (LCOE) was obtained as 0.65 cents/kWh for the system, which is about 85% higher than the current price of electrical energy in Southern Nigeria. Moreover, a negative net present value (NPV) was obtained for the plant, all indicating that the cost of investment would not be offset during the lifetime of the system, and the project would therefore not be profitable in its current design.

Indicadores econômicos para produção de etanol proveniente de culturas amiláceas sob diferentes manejos de irrigação

ABSTRACT The study aims to quantify the production costs of maize and sorghum crops under rainfed and irrigated conditions for the generation of ethanol and to evaluate the economic feasibility in different scenarios of marketing price. Two experiments were carried out in the years 2019/2020 and 2020/2021, in an experimental area at the Federal University of Santa Maria, Santa Maria, RS, Brazil. The experiment was in strip plots, in a randomized block design and four replicates. Three irrigation depths, 0, 50 and 100% of the reference evapotranspiration (ETo), as first factor, and two maize cultivars and one grain sorghum cultivar as second factor, using 45 scenarios. The use of full irrigation (100% of ETo) reduces the production costs of the liter of ethanol by 15 and 17.89% and increases ethanol production by 44.18 and 48.25% for maize and grain sorghum crops, respectively. For the market price of R$ 2.00 L-1, the grain sorghum does not show good performance, with negative net present value (NPV) and internal rate of return (IRR). The sale price of R$ 4.00 L-1 and full irrigation is the best economic scenario, with values of NPV of R$ 90,356.93, IRR of 33.83%, benefit/cost ratio (B/C) of 2.28, profitability index (PI) of 3.99 and payback of three years. Maize is economically viable for ethanol production in all scenarios. Full irrigation and market price of R$ 4.00 L-1 represent the best economic scenario, with mean values for NPV of R$ 204,381.68, IRR of 63.35%, B/C of 2.96, PI of 8.67 and payback of 1.58 years, among the cultivars.

Project Investment Plan Valuation Using Discounted Cash Flow Analysis (Case Study of LLP Compression Project Investment Plan at Tango Field, Mehacca Block)

This article performs a valuation analysis of LLP Compression in project investment plan at Tango Field in Mehacca Block. The LLP Compression investment project plan is currently under consideration for a Final Investment Decision (FID). The analysis is conducted by using quantitative methodology approach to evaluate 2 project scenario based on its cash flow. The outcome of financial valuation could assist decision maker in the company, in determining whether the project is economically profitable, whether it should be executed, what scenario can generate maximum economic profit for the company, and also what financial factor affecting LLP Compression Project cash flow that should be managed to avoid negative financial results and to forecast project likelihood of success. For DCF analysis, with company discount rate at 10.2%, the Net Present Value (NPV) result is 1.12 Million USD for Scenario 1 and 0.91 Million USD for Scenario 2. Internal Rate of Return (IRR) for both scenarios are higher than company’s discount rate. Payback Period for both scenarios are also the same in year 2026, or 2 years after production. Profitability Index (PI) for Scenario 1 is slightly higher than Scenario 1 amounting at 1.07, while PI for scenario 2 is 1.03. All of the parameters from DCF gives positive result more than expected return, with scenario 1 that provide better value than scenario 2. Monte Carlo simulation is also used to provide a likelihood of having a negative NPV. The result is that both scenarios have probability negative NPV amounting 28% for scenario 1 and 30% for scenario 2. Based on Monte Carlo Simulation result, scenario 1 has slightly lower probability of generating negative NPV than Scenario 2. Sensitivity analysis is also being used to look how large NPV project varies if the parameter inputs are changed. Four parameters tested with assumption change at ± 25% from original condition. Based on sensitivity analysis, it is observed that Gas Production, Gas Price are the most sensitive parameter for both scenarios of LLP Compression project. In summary, the LLP Compression Project investment plan is feasible to be executed for both scenarios, with scenario 1 provides higher economic profit than scenario 2, and it also generates slightly lower probability negative NPV than scenario 2. Since LLP Compression Project has probability of gaining negative NPV based on Monte Carlo Simulation Result, hence several strategies to minimize project risk exposure are required to be determined before project execution.

Project Investment Analysis: Case Study of Installation Additional Offloading Pump at B-Field to Recover Oil Production

Oil and gas production in Indonesia keeps declining while consumption increases, resulting in Indonesia being a net oil importer since 2004. The problem that is faced by many producers right now is the mature field with an aging production facility with frequent unplanned shutdowns that could jeopardize production. If not responded to promptly and adequately, the field could lose its production. This is one of the challenges that PT ABC are facing. This study will present an investment project analysis to procure additional permanent offloading pumps at Field-B PT ABC to help revitalize the field after an unplanned shutdown. The additional offloading pump is intended to speed up wells' potential recovery and minimize potential loss after shutting down. Two scenarios are evaluated for the additional offloading pump: buy case or lease case. The investment study is performed by exercising the business situation analysis and then using discounted cash flow (DCF) method for the financial feasibility. From the business situation analysis of PESTEL for external and VRIO method for internal analysis, both analyses suggest the external and internal aspects support the investment project of having the additional offloading pump. The DCF analysis is performed using the Production Sharing Contract (PSC) scheme applied to PT ABC. For the buy case, the Net Present Value (NPV) is 0.89 million $ with Monte Carlo Simulation showing the possibility of having a negative NPV is 7%. For the lease case, the NPV is 2.32 million $ with Monte Carlo Simulation showing the possibility of a negative NPV of 0%. Based on the DCF parameter analysis then, it is suggested to the management of PT ABC to invest in additional offloading pumps at Field-B by using the lease option, which shows better NPV.

Assessing decarbonisation pathways in the food and beverage sector: A multi-criteria decision analysis approach

Decarbonisation pathways for the food and beverage sector are focused at a national, regional, or sectoral level. There is a lack of literature which assesses decarbonisation pathways at a facility level and which compares pathways using Multi-Criteria Decision Analysis (MCDA). This work assesses the economic and environmental performance of 21 decarbonisation pathways which could be implemented at a facility in the food and beverage sector using 5 MCDA methods. Four sets of criteria weights (equal criteria weights, economic focus, environmental focus, and subjective weights of facility management) are applied to compare the results obtained.The best pathway (Pathway no. 15: Boiler–combined heat and power, organic Rankine cycle (CHP ORC) – mechanical vapour recompression (MVR)) for equal criteria weights or an economic focus achieves the best net present value, reduces emissions by 43%, has the shortest payback period, and the lowest levelised cost of abatement. Pathway no. 14 (38 kV – MVR – biogas) (recommended for an environmental focus) enables a 100% reduction in GHG emissions but achieves the third worst net present value. Pathway no. 20 (Boiler – CHP ORC – MVR – Biogas) is recommended when using subjective weights and has the best levelised cost of abatement for any pathway that reduces emissions by 100%. However, pathway no. 20 has a negative net present value, a payback period greater than 20 years, and a high CAPEX spend per mass of tCO2eq saved. To achieve GHG emissions savings greater than 67%, biogas from the anaerobic digestion of distillery feed products is required.

The early-stage design of plasma for the conversion of CO2 to chemicals: A prospective techno-economic assessment

The persistent increase in CO2 emissions and the continued depletion of fossil resources are two major challenges of the 21st century. These challenges can be tackled with Carbon Capture and Utilization (CCU), fby capturing and using CO2 as a valuable feedstock. Plasma presents a reactive environment to convert the CO2 molecule efficiently into higher-value chemicals and is a promising CCU technology in an early development stage. This study translates the technical performance of the plasma, as observed in the laboratory, into economic cashflows on a pilot plant level. In this techno-economic assessment, the influence of three features of the plasma is analyzed: the type of feed, the space time and the type of packing material. The economic feasibility of the different plasma configurations for the conversion of CO2 and CH4 into higher-value chemicals is assessed by calculating the Net Present Value (NPV). This allows the identification of the major cost items and the prioritization of future R&D steps. Negative NPVs are observed for all configurations, due to high electricity expenses, high capital investments and insufficient revenues. Based on the NPV, the most promising reactor configuration is the unpacked reactor, supplied with pure CO2 in a short space time. However, to target higher-value chemicals and raise revenues, the presence of packing materials and a mixed feed of CO2 and CH4 is crucial. Indeed, the highest revenues are observed for the reactor filled with packing, supplied with CO2 & CH4 and at longer space time. To move forward, the right type of packing material should be found, enabling the targeted production of higher-value chemicals with higher conversion rates in a shorter space time.

Probabilistic net present value analysis for designing techno-economically optimal sequential CO2 sequestration and geothermal energy extraction

The use of CO2 as the heat transmission fluid, increases the efficiency of geothermal energy extraction from low-enthalpy resources such as depletion oil and gas reservoirs. In the resulting so-called CO2 plume geothermal (CPG) systems, the optimal choice of well position and operational parameters represents a strategic decision problem, due to its profound effect on efficiency. Combined simulation–optimization (SO) schemes have been recognized as a valuable tool in making these strategic decisions. Noting that the total lifespan of a CPG system consists of a ‘sequestration’ and a ‘circulation’ stage, past CPG SO studies only focus on the circulation stage, assuming that the reservoir is initially saturated with CO2. Hence they neglect the realistic state of the reservoir following CO2 sequestration, ignore brine-based power generation, and either neglect the sequestration costs or assume that the sequestration costs are part of the fixed initial investment. This study aims to fill this gap by developing a SO algorithm that takes into account both the sequestration and circulation stages of a CPG system lifespan in choosing optimal well location and operations. We frame the problem as a probabilistic risk-minimization scheme to allow for the consideration of geological uncertainty, and solve it through the combined application of a multi-phase numerical model, artificial neural networks, and a hybrid Monte Carlo-genetic algorithm method. Under this context, we successfully minimize the probability of having a negative net present value from the operation. We also examine the influence of economic factors on the profitability of the proposed system, and show that the net CO2 storage income is the economic variable that most affects the risk of non-profitability. Our case study involves a homogeneous, fault-blocked, inclined thin formation that is commonly present in oil and gas fields, but has been the subject of a very limited number of CPG studies.

Investment Feasibility Analysis of Large Submersible Cage Culture in Taiwan: A Case Study of Snubnose Pompano (Trachinotus anak) and Cobia (Rachycentron canadum)

Onshore farming for premium aquaculture is under scrutiny and criticism partially due to possible causes of adverse environmental impacts on other resource users and the surrounding environment. The best alternative to preventing or minimizing these impacts is to utilize open seawater by large submersible cage culture. The current operation in Taiwan has demonstrated that the culture operation is technically feasible but economically demanding because of high capital and operating costs. Therefore, this study conducted an economic analysis of the expansion of large submersible cage culture by selecting two premium species of snubnose pompano (Trachinotus anak) and cobia (Rachycentron canadum) and examined the profitability of large submersible cage culture investment. This study found that the current operation of four-unit cages highlighted a negative net present value and internal rate of return with a payback period of over ten and six years, respectively. Large submersible cage culture can be financially profitable when its operation unit expands from 8 to 24 units. Increasing unit cages to eight incurred a gross margin of 17.09%, BCR 1.21, with a payback period of 5.36 years. Expanding the operation to 24-unit cages was a potentially lucrative investment with a gross margin of 18.51%, BCR 1.23, PI 2.15, internal rate of return of 20.84%, and a payback period of 3.55 years. Sensitivity analyses revealed that market price and survival rate significantly impact the profitability of large submersible cage culture. Finally, it is suggested that producers could invest in 8-unit cages and maintaining the survival rate of snubnose pompano and cobia at 80% and 40%, respectively.