Economic assessment of producing and selling biomethane into a regional market

2018 ◽  
Vol 31 (1) ◽  
pp. 60-76 ◽  
Author(s):  
Mattia De Rosa
Keyword(s):  
Anaerobic Digestion ◽  
Fossil Fuel ◽  
Net Present Value ◽  
Energy Resource ◽  
Economic Assessment ◽  
Point Of View ◽  
Organic Substrates ◽  
Present Value ◽  
Economic Point ◽  
Fuel Prices

Biogas is a promising renewable energy resource produced by using anaerobic digestion of organic substrates and it is mainly used to generate electricity by means of biogas engines. Other potential utilisations are growing, e.g. grid injection and biofuels production but, generally, a treatment aimed to increase its quality is mandatory and greater investments are generally required to produce upgraded biogas (biomethane). Despite the increasing of interest on these applications, a lack of information is still present from an economic point of view. The present paper performs an extended economic assessment of upgrading and selling biogas starting from a typical farm-based anaerobic digestion plant in Northern Ireland assumed as reference. Several economic indexes have been considered to assess the economic performance of the upgraded anaerobic digestion plant, namely net present value, pay-back period, profitability index and internal rate of return. Moreover, different scenarios in terms of fossil fuel prices have been analysed. The results show that producing and selling biomethane can be economically feasible if an adequate market is fostered. Optimum anaerobic digestion sizes between 26.9 and 64.4 tonne/y have been found, with correspondent net present value and pay-back period values in the range of £6.7–64.4M and 2.8–7.5 years, respectively, depending on the price scenarios analysed and the economic index chosen. Generally, adopting the net present value as objective function of the optimisation leads to greater anaerobic digestion size than the other indexes for any price scenarios considered. Finally, tougher market conditions (i.e. higher fossil fuel prices) lead to better economic performances of the upgraded anaerobic digestion configuration.

Designing an olive tree pruning biorefinery for the production of bioethanol, xylitol and antioxidants: a techno-economic assessment

Holzforschung ◽  
2018 ◽  
Vol 73 (1) ◽  
pp. 15-23 ◽  
Author(s):  
Ana Susmozas ◽  
Antonio D. Moreno ◽  
Juan M. Romero-García ◽  
Paloma Manzanares ◽  
Mercedes Ballesteros
Keyword(s):  
Net Present Value ◽  
Energy Resource ◽  
Economic Assessment ◽  
Olive Tree ◽  
Simulation Software ◽  
Economic Feasibility ◽  
Point Of View ◽  
Small Scale ◽  
Biomass Resources ◽  
Tree Pruning

Abstract Olive tree crops, extensively cultivated in Southern European countries, yield large amounts of olive tree pruning (OTP) biomass. This could be used within the framework of a bio-based economy that maximizes the utilization of biomass resources in a sustainable way. In the present work, the techno-economic feasibility of an OTP-based integrated biorefinery is evaluated by the process simulation software Aspen Plus, while the process is aimed at the production of ethanol, xylitol, antioxidants and electricity. Overall, the proposed plant could perform economically, and it is self-sufficient from an energy resource point of view. The plant as designed yields around 109 l of ethanol, 27 kg of xylitol and 43 kg of antioxidants per ton of OTP biomass, with an estimated production cost of 0.24 € l−1, 1.48 € kg−1 and 5.12 € kg−1, respectively. In a 10-year period, the economic profitability of the biorefinery plant is within a positive investment balance, with a net present value (NPV) of 32.1 M€ and a payback period of 5–6 years. These figures point out the opportunities for placing in the market several OTP-based products. Based on these data, the construction of small-scale OTP-based lignocellulosic biorefineries seems to be a realistic scenario.

scholarly journals Is It Correct to Use the Internal Rate of Return to Evaluate the Sustainability of Investment Decisions in Public Private Partnership Projects?

2018 ◽  
Vol 10 (12) ◽  
pp. 4371 ◽  
Author(s):  
Vicente De Albornoz ◽  
Antonio Galera ◽  
Juan Millán
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Point Of View ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Economic Point ◽  
Investment Projects ◽  
Internal Rate ◽  
Investment Criterion

Public Private Partnerships (PPP) are viewed by the private sector as investment projects. An investment criterion, such as the internal rate of return (IRR), widely used by practitioners, is thus necessary in order to determine if the opportunity is sustainable from an economic point of view and worth pursuing. However, a cash flow may have multiple IRRs—is it appropriate in the context of PPPs to use this criterion? This paper provides a clear proposition to determine the potential number of real positive IRRs a cash flow may have, depending on the number of sign variations and the value of the net present value (NPV) calculated with a discount rate equal to 0 (NPV(r = 0)). This proposition can sometimes be used when other tests (such as Norstrom’s Criterion) are inconclusive to determine if a cash flow has a single real positive IRR. The proposition is generally met by the typical cash flow of a PPP project, validating the use of IRR as an investment criterion.

scholarly journals Economical assessment of an investment related to the establishment of a new farrowing place and pig-rearing building

2019 ◽  
Vol 7 (1-2) ◽  
pp. 115-120
Author(s):  
Brigitta Zsótér ◽  
Ágnes Milojev
Keyword(s):  
Net Present Value ◽  
Research Work ◽  
The State ◽  
Point Of View ◽  
Bank Credit ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Payback Time ◽  
Pig Farm ◽  
The Given

In our research work we aimed at carrying out an economical assessment of an investment and development of substantial volume. The examined project was completed at a pig-farm during which a new farrowing place and pig rearing building were built, as well as the renovation of the existing pig-farm. All of them were financed partly from the firm’s own source, partly from a non-repayable aid granted by the state, and finally from a credit granted by a commercial bank. The term of the credit is 10 years and the return of the investment expected by the investors is 8%, so we carried out our calculations according to these data. We examined the three possible ways of financing the investment from the economical point of view, as a result we proposed three hypotheses. Our hypotheses are: Hypothesis 1 (Case „A”): The investment will be financially recovered within the examined period of 10 years if it is financed from the firm’s own source, the state grant and the bank credit. Hypothesis 2 (Case „B”): The investment can be economically completed within the given period of time if the project meets the costs from the firm’s own source and the credit. Hypothesis 3 (Case „C”): The investment will be economically accomplished within the examined 10 years provided the firm finances the project from their own source and the state grant. In our calculations we used the net present value (NPV), the internal rate of return (IRR), the payback time (PB), the discounted payback time (DPB) and the profitability index (PI) as economy indicators. We carried out our calculations regarding 10 years to be able to compare the results since the term of the granted credit is 10 years, too.  

scholarly journals Engineering and Economic Perspective in The Production of Cu Nano

2020 ◽  
Vol 8 (1) ◽  
pp. 15
Author(s):  
Annisa Yuliandini ◽  
Asep Bayu Dani Nandiyanto
Keyword(s):  
Economic Evaluation ◽  
Net Present Value ◽  
Copper Acetate ◽  
Tween 80 ◽  
Point Of View ◽  
Industrial Scale ◽  
Sorbitan Monooleate ◽  
Economic Point ◽  
Economic Parameters ◽  
Break Even Point

The purpose of this study is to analyze the production of copper nanoparticles (Cu NPs) on an industrial scale in an engineering perspective and economic evaluation perspective. Energy is needed because of various energy related applications. Evaluation of Cu nanoparticle production in an engineering perspective is carried out from the selection of processes that are adapted to industrial scale, calculation of mass balance, to the adjustment of commercially available equipment. Evaluation of production from an economic point of view is done by calculating economic parameters: Gross Profit Margin, Internal Return Rate, Payback Period, Cumulative Net Present Value, Profitability Index, and Break Even Point. Briefly from the production process, we use Copper acetate hydrate (CuAc2.2H2O) (as a source of Cu), Tween 80 (polyoxyethylene-(80)-sorbitan monooleate) and ethylene glycol (as a reducing agent). The engineering viewpoint shows this process is capable of producing Cu nanoparticles which can be used as conductive nanoionic. Economic evaluation determines the process is beneficial, discussing with positive values ​​all economic parameters. However, for some variations this process is not profitable, so economic evaluation is needed.

scholarly journals Plasma Assisted Combustion as a Cost-Effective Way for Balancing of Intermittent Sources: Techno-Economic Assessment for 200 MWel Power Unit

Energies ◽  
2020 ◽  
Vol 13 (19) ◽  
pp. 5056
Author(s):  
Tadeusz Mączka ◽  
Halina Pawlak-Kruczek ◽  
Lukasz Niedzwiecki ◽  
Edward Ziaja ◽  
Artur Chorążyczewski
Keyword(s):  
Power Unit ◽  
Net Present Value ◽  
Renewable Energy Sources ◽  
Cost Effective ◽  
Economic Assessment ◽  
Marginal Effect ◽  
The European Union ◽  
Present Value ◽  
Plasma System ◽  
Value Analysis

Due to the increasing installed power of the intermittent renewable energy sources in the European Union, increasing the operation flexibility of the generating units in the system is necessary. This is particularly important for systems with relatively large installed power of wind and solar. Plasma technologies can be used for that purpose. Nonetheless, the wide implementation of such technology should be economically justified. This paper shows that the use of plasma systems for increasing the flexibility of power units can be economically feasible, based on the results of a net present value analysis. The cost of the installation itself had a marginal effect on the results of the net present value analysis. Based on the performed analysis, the ability to lower the technical minimum of the power unit and the relationship between such a technical minimum and the installed power of a plasma system can be considered decisive factors influencing the economics of the investment for such an installation. Further research on better means of prediction of the minimum attainable load, which would allow determining the influence of implementation of a plasma system, is recommended. This will be the decisive factor behind future decisions regarding investing in such systems.

scholarly journals An Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions

Energies ◽  
2021 ◽  
Vol 14 (21) ◽  
pp. 7395
Author(s):  
Francesco Facchini ◽  
Giorgio Mossa ◽  
Giovanni Mummolo ◽  
Micaela Vitti
Keyword(s):  
Fossil Fuels ◽  
Direct Reduction ◽  
Steel Production ◽  
Economic Assessment ◽  
Basic Oxygen Furnace ◽  
Point Of View ◽  
Steel Scrap ◽  
Environmental Costs ◽  
Market Uncertainty ◽  
Economic Point

The steelmaking processes are considered extremely energy-intensive and carbon-dependent processes. In 2018, it was estimated that the emissions from global steel production represented 7–9% of direct emissions generated by fossil fuels. It was estimated that a specific emissions value of 1.8 tCO2 per ton of steel was produced due to the carbon-dependent nature of the traditional blast furnace and basic oxygen furnace (BF-BOF) route. Therefore, it is necessary to find an alternative solution to the BF-BOF route for steel production to counteract this negative trend, resulting in being sustainable from an environmental and economic point of view. To this concern, the objective of this work consists of developing a total cost function to assess the economic convenience of steelmaking processes considering the variability of specific market conditions (i.e., iron ore price, scraps price, energy cost, etc.). To this purpose, a direct reduction (DR) process fueled with natural gas (NG) to feed an electric arc furnace (EAF) using recycled steel scrap was considered. The approach introduced is totally new; it enables practitioners, managers, and experts to conduct a preliminary economic assessment of innovative steelmaking solutions under market uncertainty. A numerical simulation has been conducted to evaluate the profitability of the investment considering the economic and environmental costs. It emerged that the investment is profitable in any case from an economic perspective. On the contrary, considering the environmental costs, the profitability of the investment is not guaranteed under certain circumstances.

scholarly journals An Economic Assessment of the Contributions of 5G into the Railways and Energy Sectors

2021 ◽  
Author(s):  
Daniel Nunes Corujo ◽  
José Quevedo ◽  
Rui Aguiar ◽  
Paulo Paixão ◽  
Hugo Martins ◽  
...  
Keyword(s):  
Economic Analysis ◽  
Economic Assessment ◽  
Point Of View ◽  
Use Cases ◽  
Economic Point ◽  
Railroad Transportation ◽  
5G Technologies

Abstract This paper presents an economical assessment of the benefits of introducing 5G technologies into pilot use cases pertaining to the railroad transportation and energy sectors. For each of the pilots, undergone by EFACEC Engenharia e Sistemas and EFACEC Energia, respectively, under the scope of the H2020 5Growth project, evaluates the expenditure and benefits expected from introducing 5G capabilities over their on-going operations. This evaluation is expressed regarding the Portugal case, and are also scaled to assess the European-wide case. The main objective of the study summarized in this paper is to understand if solutions proposed by the H2020 5Growth project, and 5G as a whole, are also advantageous from an economic point of view. The results of the techno-economic analysis reported in this paper show, on a European scale, millions of euros saved by the different stakeholders involved in the deployment of 5G solutions.

scholarly journals The Feasibility of Lowering Energy Costs Through Reduced Delivery Frequency

1980 ◽  
Vol 9 (1) ◽  
pp. 13-15
Author(s):  
James G. Beierlein ◽  
Robert J. Campbell
Keyword(s):  
Net Present Value ◽  
Energy Savings ◽  
Transportation Costs ◽  
Energy Costs ◽  
Present Value ◽  
Fuel Price ◽  
Fuel Prices ◽  
Price Increases ◽  
Net Revenue ◽  
The Cost

The feasibility of reducing delivery frequency as a means of lowering energy and transportation costs is examined. Four reduced delivery situations are examined using a net present value criteria. While substantial energy savings are possible the cost of equipment necessary to accommodate these reductions outweighs the energy savings at current fuel prices. Substantial fuel price increases are required before such reductions are worthwhile. Good management requires examination of the net effect of energy savings on net revenue.

scholarly journals Economic Evaluation and Techno-Economic Sensitivity Analysis of a Mass Integrated Shrimp Biorefinery in North Colombia

Polymers ◽  
2020 ◽  
Vol 12 (10) ◽  
pp. 2397
Author(s):  
Antonio Zuorro ◽  
Kariana Andrea Moreno-Sader ◽  
Ángel Darío González-Delgado
Keyword(s):  
Sensitivity Analysis ◽  
Economic Evaluation ◽  
Net Present Value ◽  
Raw Materials ◽  
Integrated Approach ◽  
Economic Feasibility ◽  
Point Of View ◽  
Economic Point ◽  
The North ◽  
Water Pinch

The high freshwater consumption requirements in shrimp biorefinery approaches represents one of the major drawbacks of implementing these technologies within the shrimp processing industry. This also affects the costs associated with the plant operation, and consequently, the overall economic performance of the project. The application of mass integration tools such as water pinch analysis can reduce frewshwater consumption by up to 80%, contributing to shrimp biorefinery sustainability. In this work, the economic evaluation and the techno-economic sensitivity analysis for a mass integrated approach for shrimp biorefinery were performed to determine the economic feasibility of the project when located in the North-Colombia region and to identify the critical techno-economic variables affecting the profitability of the process. The integrated approach designed to process 4113.09 tons of fresh shrimp in Colombia reaches a return on investment (%ROI) at 65.88% and a net present value (NPV) at 10.40 MM USD. The process supports decreases of up to 28% in capacity of production and increases of 12% and 11% in the cost of raw materials and variable operating costs without incurring losses, respectively. These findings suggest that the proposed design of the water recycling network coupled to a shrimp biorefinery approach is attractive from an economic point of view.

scholarly journals Nutrient Budget and Economic Assessment of Blended Fertilizer Use in Kenya Tea Industry

2018 ◽  
Vol 2018 ◽  
pp. 1-11
Author(s):  
Kibet Sitienei ◽  
Hellen W. Kamiri ◽  
Gilbert M. Nduru ◽  
David M. Kamau
Keyword(s):  
Block Design ◽  
Economic Assessment ◽  
Nutrient Budget ◽  
Point Of View ◽  
Environmental Damage ◽  
Economic Returns ◽  
Npk Fertilizers ◽  
Economic Point ◽  
Tea Industry ◽  
Economic Trends

Kenya’s tea industry depends predominantly on imported compound NPK fertilizers to replenish nutrients removed through plucking. These fertilizers cannot be easily manipulated for specific soils and tea clones. They also frequently become hazardous within tea-growing environments. In this respect, two fertilizer blends containing NPKS 25 : 5 : 5 : 4 + 9Ca + 2.62Mg and NPKS 23 : 5 : 5 : 4 + 10Ca + 3Mg with trace elements have been produced commercially in the country. However, the extent to which the blended fertilizers may contribute to optimal economic gains without degrading the environment has not been determined. This was the knowledge gap that this study seeks to address. The goal of this study was to evaluate the economic efficacy of fertilizer blends with the aim of identifying optimal levels of application which would maximize tea productivity with minimal negative impacts on the environment. The study hypothesized that blended fertilizers maximize productivity of tea clones with minimal environmental damage. The fertilizer blends were evaluated in two study sites, i.e., Timbilil Estate in Kericho and Kagochi farm in Nyeri. The sites were selected purposefully, one in the eastern and the other in the western tea-growing areas. The trial was laid out in randomized complete block design with two fertilizer blends and the standard NPK 26 : 5 : 5 as control. The treatments were applied at four fertilizer rates (0 (control), 75, 150, and 225 kg·N·ha−1·yr−1), replicated thrice. Leaf samples were collected and analyzed for nutrient uptake as well as associated yields and economic trends. The economic optimum nitrogen rate (EONR) was achieved at 75 kg·N·ha−1·yr−1 at Kagochi with all fertilizers, while at Timbilil, EONR was variable, between 75 and 225 kg·N·ha−1·yr−1 with fertilizer types. This study has shown that, based on the economic point of view, Blend “A” was the most efficient and consistent fertilizer in production and economic returns across the two sites.

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