Economic Viability Of Projects Research Articles

Carbon Capture and Utilization Projects Run by Oil and Gas Companies: A Case Study from Russia

As oil and gas companies are one of the major greenhouse gas emitters, they face increasing responsibility to address climate challenges. This highlights the necessity of integrating decarbonization options into their operations to meet global climate objectives. While progress in technologies for capturing, utilizing, and storing CO2 (CCUS technologies) is often attributed to oil and gas companies, CCUS projects in the sector predominantly focus on carbon storage, namely CO2 injection for enhanced oil recovery, which presents limited possibilities. Meanwhile, carbon capture and utilization (CCU) technologies offer a promising avenue for producing valuable products from CO2, a potential that has been underexplored in theory and practice within the oil and gas sector. This study analyzes the development of the full CCU cycle by oil and gas companies, assessing the economic viability of such projects. It includes a content analysis of research materials on CCU deployment and a case study modeling the economic viability of producing methanol from CO2 in Russia. The findings indicate that the estimated minimum price for CO2-based methanol to achieve project payback is USD 1128 per ton, compared to approximately USD 400 per ton for traditional methanol. This price gap underscores the need to foster the development of low-carbon technologies, markets, and measures to support these projects. In the domain of CCU projects, cost-reduction measures could be more applicable, while regulatory measures, such as carbon taxes, currently have a limited impact on the economic viability of these projects.

Novel integration and optimization of reliable photovoltaic and biomass integrated system for rural electrification

The novel concept of using hybrid renewable resources to provide clean energy helps to address the unique shortcomings of each renewable source. This study describes an innovative concept about the design of optimal grid PV/biomass 100 % renewable and fully reliable energy systems without considering energy storage devices. By leveraging community solar and biomass resources, the proposed system can power remote villages with a minimum cost of energy. Multi-Objective Genetic Algorithm (MOGA) is employed to perform an optimal procedure. The PV-biomass deployment project's economic viability is assessed using financial metrics such as net present cost (NPC) and cost of energy (COE). In order to install a hybrid system at the chosen site, the optimal configuration (PV 87 kW, biomass1 29 kW, and biomass2 125 kW) was examined. The NPC, COE, and total system cost, in this configuration, are $118,942, $0.02/kWh, and $892,892, respectively. The combined yearly consumption of the biomass1 and biomass2 generators is 704.81 tons of wheat straw. The total annual CO2 emissions of the PV, biomass1, and biomass2 generators in this system are avoided by 729.5 tons. The findings clearly demonstrate that the suggested approach can manage a reliable power flow with a suitable configuration. The solar PV and biomass system examined in this study will probably be a specialized solution in regions with abundant biomass resources; nevertheless, it offers a reliable starting point for the creation of larger-scale bioenergy value chains with the long-term objective of generating electricity from wheat straw biomass materials.

Feasibility study for the establishment of a specialty coffee processing plant in the municipality of El Tambo-Cauca using the ONUDI methodology

This research aims to study the feasibility of establishing a processing and marketing plant for roasted and ground coffee in the municipality of Tambo, Cauca, Colombia, in response to the increasing trend of business generation in the country. This feasibility study assesses the levels of risk associated with the plant's implementation and diagnoses its potential success in the local market. Aspects such as coffee demand, risk analysis, technical requirements, financial viability, and marketing strategies are addressed. The objective is to provide a comprehensive evaluation that enables decision-making regarding the viability of this project within the Colombian business context. Based on the results obtained from the market research, the operational capacity of the project is determined, the necessary resources for its implementation are identified, and their availability is assessed. Furthermore, the appropriate location for the project is considered, and the essential operational processes required to provide the service are defined. An organizational structure based on processes related to business activities is established. Additionally, a comprehensive financial analysis will be conducted, examining various evaluation criteria to determine the project's economic viability.

Technical-economic feasibility analysis of a large-scale parabolic trough collectors solar power plant in Brazil

This study aims to present the results of the application of a computational tool developed to perform a technical-economic feasibility analysis of large-scale Parabolic Trough Collectors (PTC) solar power plants in Brazil. The gross revenue from cash flow is obtained through an energy trading model for the Regulated Contracting Environment of the Brazilian Electricity Market. The economic viability analysis uses the Net Present Value, Modified Internal Rate of Return, Discounted Payback, and Levelized Cost of Energy indicators. The parametric structural optimization method is used to optimize the technical parameters of the plant. A case study was conducted to analyse the feasibility of implementing a 100 MW PTC in the five regions of Brazil. The results indicated that the best region in Brazil to receive this technology is the northeastern region. However, the project is economically unfeasible in all cities analysed. Therefore, a sensitivity analysis of the main parameters that affect the project's net present value is carried out to evaluate the impact of the economic parameters on the economic viability of an optimized PTC plant located in the city with the best technical performance. An optimistic scenario was evaluated considering the system's response to the parameters investigated in the sensitivity analysis. For this scenario, the results pointed to the project's economic viability.

Linear Fresnel reflector technology in Brazil: a techno-economic evaluation

This study aims to present the results of applying a computational tool developed to perform a technical-economic feasibility analysis of a large-scale Linear Fresnel Reflector (LFR) solar power plant. The viability analysis indicators were obtained considering that the electricity produced trades at the Regulated Contracting Environment of the Brazilian Electricity Market. The parametric structural optimization method is used to optimize the technical parameters of the plant. A case study was conducted to analyze the viability of Implementing a 100 MW LFR power plant in the five regions of Brazil. The results indicated that Northeastern is the best region to install this power plant. However, the project is not viable in all cities analyzed. A sensitivity analysis (SA) of some strategically selected variables was conducted to evaluate its impacts on the project's net present value of an optimized LFR plant located in the city with the best technical performance. Finally, an optimistic scenario was evaluated considering the net present value's response to the parameters investigated in the SA. For this scenario, the results indicated the project's economic viability.

Pinch Analysis for Economic Appraisal of Sustainable Projects

To achieve overall sustainable development, the economic viability of energy conservation and renewable energy projects are essential. The economic viability of a project can be determined through the economic appraisal of the project. Economic pinch analysis, proposed in this paper, helps in evaluating the economic merits such as the net present value (NPV), the annual-worth (AW), and the discounted payback period (DBP) of a project. Novel representations of composite cash flows, through graphical as well as tabular calculation methods, are presented here for the temporal analysis of a project. Applicability of the proposed economic pinch analysis is explained through economic appraisal of three demonstrative examples from the field of sustainable energy systems: a solar hot water system, energy conservation projects, and a rooftop solar photovoltaic system. In the case of a solar hot water system, sensitivity analysis of different parameters, combined with the proposed economic pinch analysis, helps in understanding different policy implications. Implications of different economic metrics to select appropriate mutually exclusive projects are demonstrated via an energy conservation example. The levelized cost of electricity generation is calculated for the rooftop solar photovoltaic system by matching two composite curves. Although illustrated for sustainable energy examples, the proposed approach is generic to be applicable to determine economic appraisal of any project.

Investigation of a methane flare during the excavation of the Silvan irrigation tunnel, Turkey

Mechanized methods are being increasingly used in tunnel excavations to such an extent that to ensure safe construction and the economic viability of projects the need for design-stage geotechnical studies has considerably increased. However, unexpected problems, such as gas inflow, can be experienced during excavation when the geological conditions are insufficiently investigated. In fact, even if construction is taking place in a known oil–natural gas basin or coal-bearing strata, the possibility of methane flare/explosion events can be minimized if a suitable excavation method and equipment are used. However, little published literature is available on this topic, resulting in the potential problem of encounters with sources of methane during construction that have not been considered in the planning of the tunneling operations. We have studied a methane (natural gas) flare incident that occurred in 2015 during the excavation by full-face hard rock tunnel boring machine of the Silvan irrigation tunnel, south-eastern Turkey. During the planning and pre-construction stages no consideration was given to the fact that the tunnel passes through a natural gas basin and, consequently, the selection of excavation method and machine equipment was made without taking into account the high possibility of natural gas being present. During excavation a significant methane gas flare occurred, resulting in 13 workers being injured and abandonment of the project. Subsequent investigations revealed that the proposed route of the tunnel passed through a natural gas basin and that Turkish Petroleum Corporation (TPAO) had carried out natural gas exploration in the area. Here we provide details on the geological background and the flare incident itself and come to the conclusion that the pre-construction ground investigations for this project were grossly inadequate. We also suggest that in order to facilitate economical and safe tunnel construction, consideration should always be given to the possible presence of methane and other gases at the ground investigation stages of tunneling projects and that all previous geological and technical studies related to the study area should be taken into consideration during the pre-construction stage.

Study of an energy mix for the production of hydrogen

This paper analyses the electricity generation through a mini-hydro plant (MHP) and a photovoltaic (PV) system particularly sized for a location in Tomar (Portugal). A system based on this energy mix is adopted to produce hydrogen (H2) and oxygen (O2) by electrolysis of water, at high pressure, for energy storage purposes. Some features of the different equipments chosen in this study and the project's economic viability are also presented in the paper.

Wpływ suszy hydrologicznej na inwestycje w energetyce wodnej. Możliwości zapobiegania skutkom suszy

W artykule zostały zaprezentowane kwestie związane z energetyką wodną, potencjałem hydrologicznym i sposobami jego szacowania. Wskazano, że woda ogólnie uważana jest za czyste, bezpieczne i przewidywalne źródło energii. Przeanalizowano wpływ suszy hydrologicznej i możliwości zapobiegania jej skutkom. Artykuł zawiera ocenę bezpieczeństwa energetycznego oraz efektywności ekonomicznej projektów w elektrowniach wodnych w czasie suszy.

State of the World's Nonfuel Mineral Resources: Supply, Demand, and Socio-Institutional Fundamentals

Current material supply-demand imbalances are driven by situational rather than physical scarcities, resulting in a growing interest among government, civil society, and industry groups to consider not only the availability of mineral resources, but also the sustainability implications of their production. This, in turn, places increasing pressure on mining companies to broaden their concerns when planning new mining projects, covering its “social license to operate” by incorporating strategies for limiting negative socioenvironmental impacts alongside calculations of the project's economic viability as well as balancing a large number of potential stakeholders. Accordingly, understanding also the sociopolitical context of mineral development is crucial for the creation of sustainable practices within the mining industry. By applying a sustainable development framework, this article outlines the complex web of challenges associated with sustainable mineral extraction, ranging from technological and economic development to political and institutional concerns on how to govern and manage scarce resources in a globalized world.

Demonstrating Fuel Flexibility in Commercial Operation

Synthesis Energy Systems Inc. (SES) enables its customers to advance gasification projects through commercial scale feedstock testing at its commercial scale coal to syngas facility in Zhao Zhuang City (ZZ Plant), Shandong Province, China. These tests help customers affirm individual project economic viability and reduce technology risk. Included in these test campaigns have been one and two-week long continuous operations at varying loads and on widely-varying feedstock such as Chinese Inner Mongolian lignite, Chinese sub-bituminous high ash (and high friable) coal, and Aus- tralian Queensland high ash sub-bituminous coal. Through these campaigns, SES has progressed one project into the detailed engineering and construction phase and one project into the feasibility study phase. SES believes that the abi- lity to perform these commercial scale campaigns without interruption of operation is unique to SES. The ZZ Plant, which sells clean syngas to a neighboring methanol facility, has been in operation since early 2008 on a design coal of high ash middlings (washery wastes) from ROM bituminous coal (30% - 40% wt ash). SES has made significant im-provements to the design, operation, and efficiency of the ZZ Plant and U-GAS technology that is licensed from Gas Technology Institute (GTI). Included in these is the Fines Management System (FMS), which has demonstrated overall carbon conversion of greater than 98%. The ZZ Plant consistently demonstrates fuel flexibility and greater than 98% availability, 98% carbon conversion, and 80% cold gas efficiency.

Overview: Well Intervention and Control (January 2007)

There are two big challenges that have been garnering considerable attention within the industry recently. Exploration and development in increasingly harsh and remote regions are challenging our ability to implement emergency interventions (i.e., blowout control), and advances in drilling technology are producing ever-more-complex wellbores that are challenging conventional well-intervention techniques (e.g., wireline and coiled tubing). This is a time of unparalleled ventures into some of the most harsh and remote environments on Earth in search of the "big" reservoir. The most challenging operations, at least from a well-control/-intervention perspective, are situated in arctic regions. In some cases, the remote operations also are situated in geopolitical regions that create significant logistical and regulatory challenges. The magnitude of these remote operations is such that only the largest E&P companies are in a position to finance and operate them. This is fortunate because these companies routinely include extensive emergency planning as a part of their operations. Just because emergency intervention is exceptionally challenging does not dissuade them from recognizing that it is an essential piece of the overall strategy. Operators are redefining the limits of horizontal and complex well designs, including multilaterals and increasingly complex completion designs. The complexity of these wells continues to drive innovations that allow implementation of conventional well interventions. Moreover, the complexity of these wells is such that routine servicing, maintenance, and planned alterations are a much larger economic consideration than before. Some speculate that the cost of routine intervention on these more complex wellbores/completions will increasingly be one of the major deciding factors as to a given project's economic viability. Others fear that intervention technology simply will not be able to maintain an adequate pace relative to drilling and completion technology. I am confident that the talented people within our dynamic industry will solve these problems. Issues like these are, after all, what makes our industry one that continues to draw talented people who savor a good challenge. Well Intervention and Control additional reading available at the SPE eLibrary: www.spe.org SPE 98077 "First Deepwater Application of Dynamic Annular-Pressure Control Succeeds" by V. Roes, SPE, Shell E&P Co., et al. SPE 103853 "An Integrated Approach to Risk and Hydraulic Simulations in a Well-Control Planning Perspective" by Øystein Arild, SPE, IRIS, et al. SPE 98739 "The Snorre-A Incident 28 November 2004: Lessons Learned" by G. Pettersen, SPE, Statoil ASA, et al.

Economic Evaluation of Seoul City's Bus-Only-Lane Project

Following the suit of some other countries, the Seoul Metropolitan Government has ambitiously implemented the bus-only-lane (BOL) system as one of the new transportation reform plans. However, it does not seem that the project has achieved its primary goal of reducing the number of private vehicle drivers, and that the project is economically viable. This paper reports the results of an economic evaluation of Samil-Ro Bus-Only-Lane project, one of the representative BOLs in Seoul. It estimates travel demand both with and without project in order to examine the achievement of the project's goal of shifting private vehicle travelers to the reformed bus system. To test the project's economic viability, the paper also conducts a cost-benefit analysis by calculating the discounted net present value (NPV), internal rate of return (IRR), and benefit and cost ratio (B/C). Moreover, both the project's uncertainty and sustainability have been checked through the sensitivity and risk analysis and the environmental degradation effects test, respectively. In the conclusion, the paper also provides policy recommendations.

Valuation techniques for infrastructure investment decisions

Public infrastructure owners are increasingly soliciting BOT arrangements to deliver needed infrastructure facilities. Such arrangements potentially preserve a public owner's capital capacity for allocation to projects that cannot support themselves by essentially ‘pulling’ projects from the private sector. Before soliciting these arrangements, however, owners should independently evaluate a project's economic viability to fully appraise the issues and variables involved. Unfortunately, project analysts often apply evaluation methods without regard for their assumptions and limitations. A case study of a toll road project in the USA provides the basis for examining the assumptions behind both traditional and option valuation models. The case demonstrates the use of an option pricing model to augment traditional project evaluation by capturing strategic considerations, in this case the value of project deferment. The presentation illustrates that the selection of a valuation model depends critically upon the characteristics of a project's variables and that informed judgment remains an integral part of the decision‐making process.

The Egyptian kaolin: an outlook in the view of the new climate of investment

Egypt has large reserves of kaolin in many localities in Sinai, Red Sea coast and Kalabsha near Aswan. These kaolins can satisfy the local demand for filler, paper and ceramic industries 10 times for at least 50 years, in comparison to the current demand. However, the Egyptian kaolin is hard and massive. It is also low grade so that it needs beneficiation to be suitable for paper and ceramic industries, which import their needs at the present time. Beneficiation of the Egyptian kaolin from different localities indicated their technical viability for ceramic production and as paper filler. In the meantime, the Egyptian government has created a new healthy climate to encourage investment in Egypt. For example, the government provided many facilities to investors in the new cities, increased the period of free taxes to 10–20 years (depending on the project site) and reduced the interest of borrowing money from banks. All these facilities, among others, will have a positive impact on the economic viability of projects. This paper evaluates the situation of Egyptian kaolins, their methods of beneficiation and the domestic market. A summary for the economic pre-feasibility study was presented. The new laws of investment make such economic pre-feasibility more profitable in terms of return on investment (ROI) and pay back period (PBP).