Energy Return on Investment

Table 1.3 Estimations of energy return on investment (EROI) ratios for different energy processes...

Hammerschlag R. (2006) Ethanol s energy return on investment a survey of the literature 1990-Present Environ. Sci. TechnoL, 40 1744-1750. 

As can be seen from this analysis, the natural gas feedstock and capital charges amount to over 93% of the total production cost before return on investment. Therefore, energy consumption and capital investment are the key factors in determining ammonia production profitabiUty. 

Capital investment, capital costs, operating costs, return on investment, and energy conservation have all been discussed (6). In the economic analysis, the speed of each type of pump considered is normalized to 1 m /s as a common basis. 

Even after 10 years and nearly 700 projects, the two thousand employees continued to identify high-return projects. The contests in 1991, 1992, and 1993 each had in excess of 100 winners, with an average return on investment of 300 percent. Total energy savings to Dow from the projects of those three years exceeded 10 million, while productivity gains came to about 50 million. 

Various provisions m the federal income tax treat energy producers more or less favorably than other businesses. By changing the after-tax rate of return on investments in the energy sector, the Tax Code may alter the long-run supply of specific types of energy. 

EROEI ETBE ETS EU EUCAR EUR Energy returned on energy invested Ethyl tertiary butyl ether Emission trading scheme European Union European Council for Automotive Research and Development Estimated ultimate recovery... 

Phase 4, which could begin around 2025, is the Fully Developed Market and Infrastructure Phase. In this phase, consumer requirements will be met or exceeded, national benefits in terms of energy security and improved environmental quality will be achieved, and industry will receive adequate return on investment and compete globally. Phase 4 provides the transition to a full hydrogen economy by 2040. 

The use of solar energy in chemical processing has also been investigated. Studies describe, for example, the cycloaddition reaction of a carbonyl compound to an olefin carried out in a solar furnace reactor (91) or oxidation of 4-chlorophenol in a solar-powered liber-optic cable reactor (92). The concept of using solar light for the synthesis of e-caprolactam was evaluated, and it was shown that the return on investment was better than for the conventional technology (93). Solar reactors can also be used advantageously in water treatment plants (94). 

The payback period estimated above shows that the venture is acceptable, since investors in similar power plants generally want payback periods of 7 years or less. (The estimates in this chapter have been neither confirmed nor denied by Oxford Energy. A formal return-on-investment analysis would be necessary to be really accurate. This would include the financing structure of the venture, interest rates, depreciation, and tax considerations.)... 

Most economic studies of chemical processes show the projected performance of the process with respect to some parameter like return on investment, profit on sales, or net present value at some future year. These studies are appropriate for project evaluation by management, and may include cost components related to capital, energy, utilities, raw materials, labor, overhead, working capital, and so on. 

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. 

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