Geographical locations capitalization

The capital investment for any FBC plant depends upon several factors, including the cost of capital, size of unit, geographic location, and coal type. EPRI has completed several economic evaluations and projects the following costs, in 1994 US dollars, for plants located in Kenosha, Wisconsin, burning Illinois No. 6 bituminous coal contain-ing 4 percent sulfur 200-MWe circulating AFBC, 1520/kW 350-MWe bubbling PFBC, 1220/kW 350-MWe circulating PFBC, 1040/kW 320-MWe advanced PFBC, 1110/kW. The advanced PFBC has the most potential for cost reduction, and capital investment could be reduced to below 1000/kW. 

A study has been made by A. V. Bridgwater [Chem. Eng., 86, 119-121 (Nov. 5, 1979)] of the geographical variations in capital costs. He concluded that because of trade and competition basic equipment costs do not vaiy significantlv in the industrialized countries of the western world. The main differences in construction costs at various international locations are due to variations in labor costs and productivity, the use of specialized equipment, and sundry local factors. Table 9-55 gives location factors for the construction of chemical plants of similar function in various countries (1993 values). The factors have been corrected by Bridgwater for location variations in labor costs and efficiency and converted at the average value of the exchange rate. 

---