Estimated annual operating costs

A cost estimate performed by the Westinghouse Hanford Company (WHC) showed that the development of this technology, including safety, environmental documentation, and construction of the prototype system, should cost 32 million. The estimated annual operating cost of this technology is estimated to be 9.5 million/year of operation. 

A conceptual design for the plant is shown in Figure 13.5. Detailed information on the estimated capital cost of a 300 t/d plant with this design and its estimated annual operating costs are available [22], The experimental results indicate that a conservative estimate of the oil yield per ton of waste plastic is about 5 bbl/t. Assuming a plant operating at 90% capacity, this would yield 495,000 bbl/yr. 

Table V. Estimated Annual Operating Costs for the RC/Bahco CTB-100 Module (High Sulfur Flue Gas)...

The estimated annual operating cost for the 800 MW plant, assuming capital charges of 14% per year, is 1.0 mills/kW hr without any credit being taken for the by-product sulfur produced. A return of 20/long ton for the sulfur is equivalent to a credit of 0.18 mills/kW hr, reducing the operation costs to about 0.8 mills/kW hr. This compares quite well with present estimates of 0.7-1.4 mills/kW hr for low sulfur or desulfurized fuels. 

The total capital investment for a generalized 500 MW limestone dual alkali system is estimated at 51.7 million (1980 ), which is equivalent to 103.4/kW (3). This generalized system is assumed to be designed for a 95% SO2 removal efficiency when burning coal containing 3.5% sulfur. The estimated annual operating costs (raw materials, utilities, labor and maintenance, overhead and waste disposal) are estimated at 10.7 million (1980 ) or 3.1 mills/kWh. 

Calculate the annual operating costs for the existing process that needs waste treatment, and estimate how these costs would be altered by the introduction of waste-reduction options. Tabulate and compare the process and waste-treatment operating costs for both the existing and proposed waste-management options. If there are any monetary benefits (such as recycled or reused materials or wastes), then these should be subtracted from the total process or waste-treatment costs as appropriate. The expanded cost-analysis scheme discussed in Chapter 8 is appropriate to include at this point in the process. 

The capital cost of a pipe run increases with diameter, whereas the pumping costs decrease with increasing diameter. The most economic pipe diameter will be the one which gives the lowest annual operating cost. Several authors have published formulae and nomographs for the estimation of the economic pipe diameter, Genereaux (1937), Peters and Timmerhaus (1968) (1991), Nolte (1978) and Capps (1995). Most apply to American practice and costs, but the method used by Peters and Timmerhaus has been modified to take account of UK prices (Anon, 1971). 

Estimate the capital investment required for this project, and the annual operating cost date mid-2004. 

Based on data obtained during testing for the U.S. Department of Energy (DOE) in 1992, cost estimates were prepared. These estimates used a 2-gallon-per-minute (gpm) pilot plant as a baseline case, and projected the costs of a full-scale 300-gpm facility. It was estimated that the installed costs would be (US)275,000 for the 2-gpm system, and 4 million for the 300-gpm system. Annual operating costs were estimated to be 368,000 and 4 million for the 2-gpm, and 300-gpm systems, respectively. Annual secondary waste disposal costs were estimated to be 50,000 (2-gpm plant) and 8 million (300-gpm plant) (D152136, p. x). 

For ROPE applications to tar sand mining, economic projections were published for capital costs and operating costs. Total capital costs were estimated at 53,336,000 and annual operating costs were estimated at 9,683,000. For the estimation of capital costs, direct field cost was estimated at 35,558,000. Other capital costs were based on percentages of that estimate. These cost estimates were based on mid-1989 dollars (D13089C, pp. 242-243). 

TABLE 2 Estimated Annual Operation and Maintenance Costs for a Living Machine Municipal Wastevrater Treatment Plant... 

Capital and installation costs for a 250-kg/hr HTV system were estimated to range from 2 to 2.5 million. Operating costs were estimated between 100 and 420 per ton. Table 1 shows a breakdown of the annual operating cost (D19754A, pp. 2, 3). 

In 1991, Roy cited costs at a Central Lake, Michigan, 1-acre site with an initial trichloroethylene (TCE) level of 500 ppb at 160,000. The groundwater phase of the project cost 100,000, with annual operating costs of between 15,000 and 20,000. Initial investment at a site in the Netherlands was estimated at 80,000. Monitoring costs were lower for the Netherlands site due to less stringent requirements (D12730A). 

Design temperatures, operator guesses, and actual operating temperature differentials almost never correspond. Representatives should always carry a pocket thermometer with them (accurate to 0.2°F/0.rC) and carry out an actual measurement during the survey. A difference of 1.0°C between actual and estimated temperatures can eventually produce a considerable difference in estimated annual chemical costs. Again, it is necessary to qualify the temperature differentials for seasonal variations. 

The scope of the economic evaluation includes estimation of capital cost figures for a nitric add plant producing 280 tonnes/day of a 60% product. Following this capital cost estimation the total annual operating costs are estimated, both variable and fixed components being considered. Also considered is the cost of providing finance for the initial capital outlay at 25% interest per annum. 

The annual operating costs are also shown in Table 3. The raw materials costs were estimated from the average purchase cost of crude olive oil in Portugal in 1994. Supplies were empirically calculated from the scale-up study and include water, electric power, fiiel, maintenance, assurances, transports and expedient articles. The labour costs were determined for 4 shifts of 2 persons each, plus supervising personal. With a depreciation time of ten years and an interest rate of 10%, the total annual capital costs was estimated to be 212PTE/kg of oil feed. Several other economical indicators, such as the internal rate of return of the plant, showed a promising economical feasibility for this project. 

The cost for land and the accompanying surveys and fees depends on the location of the property and may vary by a cost factor per acre as high as thirty to fifty between a rural district and a highly industrialized area. As a rough average, land costs for industrial plants amount to 4 to 8 percent of the purchased-equipment cost or 1 to 2 percent of the total capital investment. Because the value of land usually does not decrease with time, this cost should not be included in the fixed-capital investment when estimating certain annual operating costs, such as depreciation. 

Estimations of operating costs, income, and taxes indicate that the annual cash flow to the project (i.e., net profit plus depreciation per year) will be 310,000 flowing uniformly throughout the estimated life. This is an after-tax figure. 

Our brief discussion of cascade principles serves to demonstrate the critical dependence of the size and operating costs of isotope separation plants on the elementary separation factor c. The size and initial cost are proportional to c 2. The operating cost is less sensitive to c, but varies at least as c The economic importance of these factors is readily seen in context with the separation of In 1960 the USAEC had three gaseous diffusion plants in operation. The cost of each plant was approximately 1 billion dollars the power consumption in each plant was 1,800,000 kw. If the plants were to be built with processes or equipment giving separation factors one half the one used, the additional construction cost to the U.S. taxpayers would be nine billion dollars. The increase in the annual operating costs of the plants can be conservatively estimated from the increase in the reflux ratio or power consumption to be 100,000,000/yr. This is a realistic demonstration of the economic benefits and importance of fundamental research and development to society. 

Estimate the ISBL cost of the plant and the total project cost. If the annual operating costs are 38,000 and the annual savings in recovered solvent are 61,500, what is the IRR of this project ... 

Usually, an after-tax rate of return on the initial investment of at least 30% is desirable. The method used to arrive at a rate of return is discussed below. An annual after-tax cash flow can be computed as the annual revenues (R) less the annual operating costs (AOC) and less total income taxes (IT). Total income taxes can be estimated at 50% (this number could be lower subject to the passage of the new tax laws) of taxable income (TI). 

The estimated total capital investment for a generalized 500 MW limestone dual alkali system is 51.7 million, equivalent to 103.4/kW. The annual operating costs are equivalent to 3.1 mills/kWh. 

Table VI. Annual Operating Cost Estimate ( 000) (17.7 tons Sodium Carbonate/hr, 7000 hr/yr)...

Operating costs The operating costs can be estimated from the assumed development time and the supervisory staff (shift personnel) required. A rule of thumb is that the annual operating costs of an experimental plant will be at least equal to those required to set it up. 

The first step in the economic evaluation of equipment alternatives is to identify and estimate the relevant costs of each alternative over its useful life. Relevant costs are usually divided into two categories investment costs and annual operating costs. Investment costs are incurred to obtain the equipment they occur on a one-time or periodic basis. The most common investment cost is the purchase price of the equipment. Typically, investment costs are depreciable, and they are often subject to capital investment tax credits. 

Chapter 17 and given by Eq. (17.10). This requires estimates of the total capital cost and the annual operating cost of the columns, trays, condensers, reboilers, and reflux accumulators. To estimate these costs, equipment sizes must be determined. In this example, calculations of the height and diameter are jJlustrated for one cdiumn in one of the segnences. 

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