Start cost estimates

The three general types of cost estimates needed are equipment cost, capital investment cost, and product cost. Equipment cost estimates are needed as part of the capital investment estimate, which indicates the amount of money that is needed to start the venture. Both of these estimates are reflected in the product cost estimate, which is important to both management and marketing groups. 

It is important to be able to estimate vessel weights, since most cost estimating procedures start with the weight of the vessel. The vessel weight, both empty and full with water, may be necessary to adequately design a foundation or to assure that the vessel can be lifted or erected once it gets to the construction site. 

The team will develop a detailed plan, including timetable and cost estimates. In the meantime, it is estimated that the process, from start through pilot testing, will require about 120 staff-months over a period of approximately 18 months, including time from corporate division and facility personnel. A more rigorous estimate will be made before we move into PSM system development. 

The relatively higher costs of biodiesel in comparison with diesel fuel is due to the high costs of the starting material, estimated to be between 70 and 85% of the total production costs. Waste oils and other oil resources are less expensive, and generally unrefined oils are 20 to 25% cheaper than refined oils. 

Process design is the first action step in the execution of a project. Process design packages are normally prepared to serve as the starting point for more advanced design stages as well as the basis for the various types of cost estimates required to make progressive project decisions. For example ... 

A Phase 0 Design is the starting point for a complete process design and engineering specification (Phase 1) and is also the basis for the preliminary cost estimate required to optimize a process and/or decide to continue or cancel it. 

A Phase 1 Design is the starting point of detailed engineering and mechanical design. It is also the basis for the definitive cost estimate required for appropriation and formal project approval. 

Wishful thinking is not compatible with successful projects. Projects driven by greed are usually based on over-optimistic cost estimates, schedules, and marketing projections. They definitely are not the right project and will be doomed from the start. 

Hydrothermal liquefaction is a process for the conversion of biomass into an organic product oil. It has been widely studied in the early 1980 s (see the recent extensive literature survey in [1]), Starting in 1983 Shell Research performed process development based on experiments in autoclaves and a continuous bench scale unit. This resulted in a conceptual design for the HTU process including cost estimate [2,3]. The work was discontinued in 1988. 

Usually cost estimates include the cost and equivalents of starting materials and reagents, yields of products of acceptable quality, and total kilos of intermediates required per kilo of product. Other factors that may be considered include... 

Process plant designs start from preliminary designs based on approximate technical data, calculations, and cost data to final designs that require detailed and accurate data, calculations, and quotations. Cost estimates of a proposed plant are continuously carried out during the development of a process from the laboratory to construction. 

---