Capital cost incremental

Optimum Pressure Drop. For most heat exchangers there is an optimum pressure drop. This results from the balance of capital costs against the pumping (or compression) costs. A common prejudice is that the power costs are trivial compared to the capital costs. The total cost curve is fairly flat within 50% of the optimum (see Fig. lb), but the incremental costs of power are roughly one third of those for capital on an aimualized basis. This simple relationship can be extremely useful in quick design checks. 

Economics Power-recoveiy units have no operating costs in essence, the energy is available free. Furthermore, there is no incremental capital cost for energy supply. Incremental installed energy-system costs for a steam-turbine driver and supply system amount to about 800 per kilowatt, and the incremental cost of an electric-motor driver plus supply system is about 80 per kilowatt. By contrast, even the highest-inlet-pressure, largest-flow power-recoveiy machines will seldom have an equipment cost of more than 140 per kilowatt, and costs frequently are as low as 64 per kilowatt. However, at bare driver costs (not including power supply) of 64 to 140 per kilowatt for the power-recovery driver versus about 30 to 80 per Idlowatt for... 

Applying two important tax credits would improve the early years cash flow and shorten the payback period. A 10% investment tax credit and a 10% energy tax credit applied to the incremental capital costs for the expanders yields nearly 1.0 million additional first-year cash... 

There are several measure sets with immediate payback SE, SF, SH, SI. Measures SE and SF are radiant panel systems with displacement ventilation. These systems have a similar cost to the base case, but they offer energy savings. Furthermore, significant sizing reductions, mainly in the cooling tower and chiller sizes, offset the incremental cost of the envelope and heat recovery measures. Because the elevator efficiency measures offer a net savings in capital cost, the capital cost of the other measures is further offset. 

The choice of cyclone modification, from an operating point of view, becomes a balance of incremental profit from increased conversion, versus catalyst makeup charges, and from a capital cost point of view, the price of either of the cyclone modifications, which must be depreciated. In many instances, there is an additional background time element, involving ongoing development of more attrition resistant and/or active catalyst. 

Interest rates, the capital cost of the incinerator, and the methods for apportioning capital costs will impact the potential for incremental savings ... 

I would rather say they would be a basis for individual companies to project more accurately the cost increments for their own situation. In fluidized bed, for example, it might be a little different in the chemical industry from the petroleum industry and from the steel industry, and it might be wise to have a typical working example in each because various companies have different sizes and operating conditions that would have to be satisfied. Also, estimates in capital cost and all the other things I mentioned this morning could be adequately assessed. 

The total-cost method does not in general provide a satisfactory means for making most insulation investment decisions, since an economic return on investment is required by investors and the method does not properly consider this factor. Return on investment is considered by Rubin ( Piping Insulation—Economics and Profits, in Practical Considerations in Piping Analysis, ASME Symposium, vol. 69,1982, pp. 27-A6). The incremental method used in this reference requires that each incremental in of insulation provide the predetermined return on investment. The minimum thickness of installed insulation is used as a base for calculations. The incremental installed capital cost for each additional V2 in of insulation is determined. The energy saved for each increment is then determined. The value of this energy varies directly with the temperature level [e.g., steam at 538°C (1000°E) has a greater value than condensate at 100°C (212°F)]. The final increment selected for use is required either to provide a satisfactory return on investment or to have a suitable payback period. 

One of the interesting features of the two-phase digestion process is that it can be retrofitted to an existing anaerobic digestion plant to effectively double its treatment capacity at a considerably reduced capital cost compared to the cost of a grassroots plant of the same additional incremental capacity. The U.S. Environmental Protection Agency s projection of new anaerobic digestion capacity needed in the United States for municipal wastewater treatment in... 

Finally, because of the small yields and scale relative to even many specialty petrochemicals, one should not automatically assume that the recovery "production" costs of chemicals from biomass pyrolysis are necessarily competitive with the actual production costs from petrochemicals there is usually a large mark-up over costs, because the markets are small, the number of producers is small and there are technical barriers to entry, sales and application development. It would be wise to codevelop recovery with a current manufacturer, just to assure distribution channels. If recovery costs are lower than conventional production, and the market is growing, there will likely be interest, because expansion capital costs can be avoided, and incremental additional production becomes feasible. 

As mentioned, because the energy targets increase linearly with AT , the cost of utilities follows the same trend. On the contrary, the capital cost decreases non-linearly with zir i . Note that the cost function exhibits a jump when the number of units changes. Therefore, it is important to keep in mind that reduction in the number of units is by far more important for overall costs optimisation than the incremental reduction of heat transfer area. 

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