Economic comparisons capitalized cost-based

Economics. Comparison of the material and energy balance for our process and the cobalt-based BASF higher olefin process (8), we foimd that our process reduced the capital investment required by over 50% due to the fact that we require far fewer unit operations, and because the operating pressure is much lower. In sutmnary, the thermomorphic solution developed by TDA allows easy catalyst recycle, which, when coupled with the lower pressure operation possible with Rh catalysts (compared to the cobalt-based process) lowers both capital and operating costs for current oxidation (oxo) plants of similar capacity. 

Battery limits investments account for only a fraction of the total amount required for the operation of an industrial installation. An evaluation calculation based on the use of an economic criterion, designed to allow an economic comparison between several processes or flow eets, hence requires the consideration of all the capital costs. 

The economics of the oxygen-based NO reduction process is difficult to compare because different caprolactam processes vary so widely. Nevertheless, an early study by Stanford Research Institute (SRI) found that the capital investment for the NO reduction process was about one-half that for the conventional Rashig process. The basis of this comparison included both the hydroxylamine unit as well as the oximation step. Operating costs were not reported, but the conclusion by SRI was that the NO Reduction process offered a decided advantage over the conventional Rashig process [31]. 

The economic comparison is based on the equivalent annual cost (EAC). The EAC is the cost per year of owning and operating an asset over its entire lifespan. EAC is often used as a decision-making tool in capital budgeting when comparing investment projects. The EAC can be calculated by multiplying the net present value (NPV) of a project by the loan repayment factor LRF. The loan repayment factor (LRF) is calculated by the total time n (years) of the project and the discount rate ( ). The net present value (NPV) of a project or investment is defined as the sum of the present values of the annual cash flows C, minus the initial investment Cq. 

Expressions such as cost/or cost/m /y, which is better, percent of maintenance costs, percent of capital costs, and so forth, are often used to describe the cost of coating systems in economical terms. However, all these expressions provide an incomplete comparison on which to base a business decision. The cost of coatings materials for a maintenance overhaul only range between 5 to 21 percent of the total costs, while surface preparation is constant at about 45 percent of the total. Additionally, the performance of protective coatings has to be included in the overall decision matrix. High-performance epoxy polyamide, urethane, or zinc-rich systems, for example, may represent savings of nearly 40 percent over "less expensive" systems when a service life greater than 10 years is considered. 

A comparison of capital cost estimates from the two economic studies that provide such information is given in Table 16-7. The data are given as dollars per million standard cubic feet per day (MMscfd) plant capacity. Results of the two studies are not directly comparable because the Schaack and Chan estimates are based on a grass-roots plant and include such incidental items as heated process buildings for water-based processes, truck loading dock and shelter where needed, and a water well with pump. The Houghton and BucklLn estimates (U.S. dollars) are based on the principal items of equipment only and a more recent time period. 

It is surprising to many that the method of application can have such a large effect on odour. Even with waterborne systems, incineration may still be required to reduce or remove odour. In this instance, it may not be economically viable to use waterborne systems, because solvents have calorific values which means that they can fuel or at least partially fuel an incinerator, thereby reducing the need for expensive fuel oil. It may be that a smaller incinerator can be used with waterborne systems compared to a solvent based system, with associated lower capital costs. The overall comparisons are not straightforward and all factors must be considered in the overall cost equation. 

An interesting economic analysis of Pd-based MRs for the WGS reaction was made by Criscuoli et al (2001), with the aim of fixed pure hydrogen production. The analysis focused on the comparison between the conventional apparatus and different MRs, in terms of both capital and operating costs. The effects of the Pd thickness and of the hydrogen permeability through the membrane on the membrane devices costs were also considered. Ihetr conclusion was that, for a Pd thickness < 20 xm, MRs could represent a possible alternative to conventional apparatus in the specific case considered. 

The work described in Bolton s paper was seminal because it allowed widely different AOP technologies to be compared by comparison of their electrical energy consumption within the two rate regimes. This work allows potential users to have a standardized base for comparison of AOPs. Of course there are economic factors (chemicals operation/maintenance, capital, etc.) that go in to a cost analysis, however the Bolton paper allows a more complete picture to be drawn. 

Some comparisons of production costs by SHS and conventional processes have been reported. Analysis for SisNa, AIN, and SiC materials has shown that combustion synthesis is economically favorable to existing technologies, as shown in Tables XIII, XIV, and XV (Golubjamikov et al, 1993). For all materials, the total cost per kilogram of material produced is lower for SHS-based processing than for conventional methods, with a major contribution to savings from reduced fixed costs (i.e., capital equipment costs). The significant difference in the raw material cost for SiC tiles occurs due to the use of Si+C powder mixtures in the SHS case, compared with SiC powder for conventional methods. 

Traditionally, cash flow analyses have been based on the balance between potential revenue, capital expenditures (CAPEX), and the planned operational expenditures (OPEX). Little or no effort has been put into evaluating the potential for lost revenue and expensive intervention costs due to component failures. By associating economic values to these costs by introducing the term Risk Expenditures (RISKEX), a more complete comparison between alternative development scenarios can he made. 

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