Capital recovery costs case study

The typical US well head cost in 2007 was around 6.37/GJ and this has been used as the basis for the input cost in this case study. The fixed costs are the non feed operating costs which for a relatively simple turbo-expander gas plant would be about 5% per annum of the fixed capital and the capital recovery charge which is placed at 14.3% per annum of the capital (see Appendix for derivation of this value). 

Identifying savings opportunities for process heat recovery is an important step for process energy optimization. If the opportunity is large enough, it will warrant a more detailed study to determine what modifications are required at what capital investment. The benefit and cost will form the central part of the business case to be presented to management for approval of the capital budget. 

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