scholarly journals Biofuel Discount Rates and Stochastic Techno-Economic Analysis for a Prospective Pennycress (Thlaspi arvense L.) Sustainable Aviation Fuel Supply Chain

2021 ◽  
Vol 9 ◽  
Author(s):  
Carlos Omar Trejo-Pech ◽  
James A. Larson ◽  
Burton C. English ◽  
T. Edward Yu
Keyword(s):  
Supply Chain ◽  
Economic Analysis ◽  
Cash Flow ◽  
Financial Distress ◽  
Net Present Value ◽  
Low Cost ◽  
Aviation Fuel ◽  
Aviation Industry ◽  
Discount Rates ◽  
Bio Oil

The international aviation industry has the goal to gradually reduce carbon emissions mainly by using sustainable aviation fuel (SAF). However, currently SAF cannot be produced at competitive prices relative to petroleum-based jet fuel. Pennycress is a crop whose oilseed could be used as a relatively low-cost feedstock to produce SAF, potentially benefiting farmers and the environment. This stochastic techno-economic analysis (TEA) studies an enterprise buying pennycress oilseed from farmers, extracting the bio-oil and selling it to a biorefinery that converts bio-oil into SAF. Maximum buying prices (MBP)—prices that yield a zero net present value—the crushing enterprise could pay farmers for pennycress oilseed are estimated. To conduct the analysis, discount rates are estimated based on financial data of biofuel firms, thus providing a realistic benchmark to evaluate profitability and feedstock buying prices. Estimated risk-adjusted discount rates vary between 12 and 17%, above rates typically used in similar valuations. Estimated stochastic MBP range between 10.18 and 11.73 ¢ pound−1, which is below the price at which farmers are willing to plant pennycress, according to recent research. By considering the crushing facility’s inherent cash flow structure and risk, the distributions of stochastic modified internal rate of return suggest the crushing enterprise could be economically attractive at a 14% discount rate, our most likely estimate. However, between 11 and 17% times the cash flow model is simulated, the firm falls under financial distress. Overall, the findings suggest potential barriers for deployment of a SAF supply chain without governmental incentives or related policies.

scholarly journals Economic Analysis of a Low-cost Apple Harvest-assist Unit

2017 ◽  
Vol 27 (2) ◽  
pp. 240-247
Author(s):  
Zhao Zhang ◽  
Paul H. Heinemann
Keyword(s):  
New York ◽  
Economic Analysis ◽  
Net Present Value ◽  
Occupational Injuries ◽  
Low Cost ◽  
Work Productivity ◽  
Cost Savings ◽  
Apple Orchard ◽  
Apple Production ◽  
Using Data

A low-cost apple (Malus domestica) harvest-assist unit was recently developed to assist employees with fresh apple harvesting. This study reports on the economic analysis of this apple harvest-assist unit. Annual costs of the harvest-assist unit were calculated, including ownership and operational cost. Annual cost savings by increasing apple harvest efficiency, decreasing occupational injuries, improving work productivity in training, pruning, and thinning, and eliminating expenditures on purchasing ladders were calculated. When the annual costs are smaller than annual savings, the unit benefits apple orchard owners positively. Economic analysis results using orchard yields ranging from 25 to 45 Mg·ha−1 demonstrated that when the apple orchard area was larger than 7.6 ha, the unit always benefited orchard owners positively; when the orchard area was smaller than 4.2 ha, the unit always benefited orchard owners negatively. For large orchards, more than one unit was required to satisfy the operational needs. Of the top four U.S. apple production states, Washington, New York, and Michigan, benefitted from purchasing four units, three units, and two units, respectively, per typical farm. However, an average-sized orchard in Pennsylvania, would not benefit, due to small orchard size and low yield. A net present value (NPV) analysis was determined using data from Washington State, which yielded a return on the 8-year investment in the machinery of $888.44.

scholarly journals The Performance Analysis of Beibu Gulf airlines Based on DEA Model during the Pre-COVID-19 Pandemic Period

CONVERTER ◽  
2021 ◽  
pp. 230-235
Author(s):  
Yichia Lin, Wenlung Chang, Wongchai Anupong, Bowen Long
Keyword(s):  
Data Envelopment Analysis ◽  
Low Cost ◽  
Spare Parts ◽  
Aviation Fuel ◽  
Operational Performance ◽  
Civil Aviation ◽  
Aviation Industry ◽  
Beibu Gulf ◽  
Data Envelopment ◽  
Dea Model

During the COVID-19 pandemic period, all airlines experienced a severe impact and the route operating cost is very susceptible to the impact of flight duration and aviation fuel prices. This paper analyzes the operation performance of Beibu Gulf airlines (low cost airline company) with data envelopment analysis CCR model in pre-COVID-19 pandemic period. Under the domestic vigorous promotion of tourism development and people's huge demand for travel, the airlines in mainland China continue rapid development, which accelerates the emergence of local airlines other than the four major airlines and leads to increasingly fierce operation competition in the civil aviation industry. Behind the competition among airlines, the operational performance of airlines can best reflect the company's development status. In this context, airlines should choose appropriate operational strategies to strengthen its competitiveness and operational capabilities. The DEA model is a mature input-output research tool, and there have been many studies related to operational performance of the aviation industry. By using Data Envelopment Analysis (DEA) solver software, the input and output indicators from 2017 to 2019 are analyzed. Preliminary results show that routes and oil price factors have not reached effective status. Beibu Gulf Airlines gradually shifts to low-cost mode, the faced challenges are as follows: 1. The competition among domestic low-cost airlines; 2. The current poor overall service quality of low-cost airlines as evaluated by customers; 3. How to arrange routes, flight, service strategy, etc. Airbus uses enhanced aviation systems for this series of aircraft to improve the overall reliability of the aircraft, reduce maintenance and spare parts costs, thus helping airlines greatly reduce maintenance costs, which is very beneficial to low-cost airlines. Based on this, this paper puts forward some suggestions, such as optimizing routes, developing feeder flights in second tier cities of popular destinations, controlling fuel costs, making low-cost aviation fuel reserves, reducing the weight of passengers' carry-on luggage or charging additional baggage charges.

scholarly journals Techno-Economic Analysis of a Small-Scale Biomass-to-Energy BFB Gasification-Based System

Energies ◽  
2019 ◽  
Vol 12 (3) ◽  
pp. 494 ◽  
Author(s):  
Andrea Porcu ◽  
Stefano Sollai ◽  
Davide Marotto ◽  
Mauro Mureddu ◽  
Francesca Ferrara ◽  
...  
Keyword(s):  
Power Generation ◽  
Economic Analysis ◽  
Net Present Value ◽  
Low Cost ◽  
Renewable Energy Sources ◽  
Agricultural Waste ◽  
Experimental Tests ◽  
Research Centre ◽  
Commercial Application ◽  
Small Scale

In order to limit global warming to around 1.5–2.0 °C by the end of the 21st century, there is the need to drastically limit the emissions of CO2. This goal can be pursued by promoting the diffusion of advanced technologies for power generation from renewable energy sources. In this field, biomass can play a very important role since, differently from solar and wind, it can be considered a programmable source. This paper reports a techno-economic analysis on the possible commercial application of gasification technologies for small-scale (2 MWe) power generation from biomass. The analysis is based on the preliminary experimental performance of a 500 kWth pilot-scale air-blown bubbling fluidized-bed (BFB) gasification plant, recently installed at the Sotacarbo Research Centre (Italy) and commissioned in December 2017. The analysis confirms that air-blown BFB biomass gasification can be profitable for the applications with low-cost biomass, such as agricultural waste, with a net present value up to about 6 M€ as long as the biomass is provided for free; on the contrary, the technology is not competitive for high-quality biomass (wood chips, as those used for the preliminary experimental tests). In parallel, an analysis of the financial risk was carried out, in order to estimate the probability of a profitable investment if a variation of the key financial parameters occurs. In particular, the analysis shows a probability of 90% of a NPV at 15 years between 1.4 and 5.1 M€ and an IRR between 11.6% and 23.7%.

scholarly journals Cost and Profitability Analysis of a Prospective Pennycress to Sustainable Aviation Fuel Supply Chain in Southern USA

Energies ◽  
2019 ◽  
Vol 12 (16) ◽  
pp. 3055
Author(s):  
Carlos Omar Trejo-Pech ◽  
James A. Larson ◽  
Burton C. English ◽  
T. Edward Yu
Keyword(s):  
Supply Chain ◽  
Profit Margin ◽  
Production Costs ◽  
Aviation Fuel ◽  
Economic Agents ◽  
International Airport ◽  
Thlaspi Arvense ◽  
Profitability Analysis ◽  
Bio Oil ◽  
Fuel Storage

This study evaluates biorefinery bio-oil feedstock costs at the plant gate for a prospective field pennycress (Thlaspi arvense L.) to sustainable aviation fuel (SAF) supply chain. The biorefinery would supply SAF to the Nashville, Tennessee international airport. Supply chain activities include pennycress production, transporting oilseed to a crushing facility, processing of oilseed into bio-oil, and transporting bio-oil to the biorefinery. The analysis shows profit potential for economic agents in the prospective supply chain. Estimated breakeven cost (profit = 0) of growing, harvesting, and transporting oilseed to a crushing facility is 17.7 ¢ kg−1. A crushing facility can pay up to 23.8 ¢ kg−1 for pennycress oilseed during the first year of production and provide investors 12.5% annual rate of return. Therefore, a profit margin of up to 6.1 ¢ kg−1 is available for the crushing facility to induce prospective pennycress producers to supply oilseed for SAF production. However, the estimated profit margin was sensitive mainly to uncertain oilseed yields, changes in field production costs, and pennycress meal and bio-oil prices. A spatial biorefineries sitting model, the Biofuels Facility Location Analysis Modeling Endeavor, estimated that the least-cost supply chain configuration is to establish three crushing facilities located in Union City, Huntington, and Clarksville, TN, to supply bio-oil to the biorefinery, with the biorefinery sited in an industrial park about 24.14 km from the Nashville international airport aviation fuel storage. Estimated total costs of bio-oil at the biorefinery plant gate are between 83 and 109 ¢ kg−1 if crushing facility oilseed procurement costs are between 17.7 and 23.8 ¢ kg−1 for oilseed.

scholarly journals Analisis Teknis dan Ekonomis Penerapan Lampu Penerangan Jalan Umum Panel Surya di Kota Sukabumi

2020 ◽  
Vol 10 (1) ◽  
pp. 77-88
Author(s):  
Dion Sanaha ◽  
Irzaman Irzaman ◽  
Sri Mulatsih
Keyword(s):  
Solar Cell ◽  
Economic Analysis ◽  
Cash Flow ◽  
Net Present Value ◽  
Present Value ◽  
Know How ◽  
Reliable Service ◽  
Main Components

Abstract. Public Street Light (PSL) with Solar Cell Power has good prospects to be developed in the equator. PSL design must provide reliable service. The aims of this research are to know how the design of PSL with Solar Cell Power can provide a reliable service of The PSL. Besides that, monitoring of the performance of PSL is expected to be carried out centrally, this is to facilitate employees in observing the performance of the lights, also to anticipate damage PSL components. The design of PSL are expected to meet these expectations. This PSL designed can provide data on the performance of the main components of the PSL with Solar Cell Power, namely: Solar Cell, Batteries and LEDs. Economic analysis is taken into account of the design of this PSL. Net Present Value (NPV) are used in analyzing the Smart Design of PSL, which is by adding up all cash flow and investment costs.

ECONOMIC ANALYSIS OF TRAVEL COMPANIES CASH FLOW

2019 ◽  
Author(s):  
Valentine Tarasova ◽  
Iryna Kovalevska
Keyword(s):  
Economic Analysis ◽  
Cash Flow

TINJAUAN STUDI KELAYAKAN USAHA BADAN USAHA MILIK DESA (NAGARI) KAMANG HILIA SEJAHTERA KENAGARIAN KAMANG HILIA, KECAMATAN KAMANG MAGEK, KABUPATEN AGAM, PROVINSI SUMATERA BARAT

2018 ◽  
Vol 3 (2) ◽  
pp. 160
Author(s):  
Halkadri Fitra ◽  
Salma Taqwa ◽  
Charoline Cheisviyanny ◽  
Abel Tasman ◽  
Nurzi Sebrina
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Average Rate ◽  
Flow Analysis ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Penelitian ini bertujuan untuk melihat kelayakan aspek keuangan usaha grosir sembako Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera di Kenagarian Kamang Hilia Kecamatan Kamang Magek Kabupaten Agam Provinsi Sumatera Barat yang dilakukan pada tahun 2018. Penelitian bersifat deskriptif kuantitatif dengan menggunakan metode cash flow analysis, payback period, net present value, profitability index, internal rate of return, dan average rate of return. Hasil penelitian menunjukkan bahwa nilai net cash flow Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera adalah positif yaitu Rp.21.774.000, nilai payback period adalah 1,15 tahun, nilai net present value positif sebesar Rp.10.680.034,47, nilai profitability index adalah positif 1,37, sedangkan nilai internal rate of return adalah 46,7% dan nilai average rate of return adalah 57,23%. Berdasarkan standar penilaian maka semua metode yang digunakan memberikan kesimpulan bahwa usaha grosir sembako milik Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera dalam kategori layak untuk dilaksanakan.

AN HISTORICAL PERSPECTIVE OF NET PRESENT VALUE AND EQUIVALENT ANNUAL COST

1982 ◽  
Vol 9 (1) ◽  
pp. 103-110 ◽  
Author(s):  
Thomas W. Jones ◽  
David Smith
Keyword(s):  
Cash Flow ◽  
Annual Cost ◽  
Historical Development ◽  
Historical Perspective ◽  
Net Present Value ◽  
Present Value ◽  
Discounted Cash Flow

Net present value and equivalent annual cost are two discounted cash flow criteria for comparing investment proposals. Why have accountants taken to net present value? Why do engineers readily use equivalent annual cost? This paper investigates the historical development of these principles to provide an explanation of why this is so.

Sign in / Sign up

Export Citation Format

Share Document