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Discounted Cash Flow Analysis Parameters

Discounted Cash Flow Analysis Parameters

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This report describes one potential biochemical ethanol conversion process, conceptually based upon core conversion and process integration research at NREL. The overarching process design converts corn stover to ethanol by dilute-acid pretreatment, enzymatic saccharification, and co-fermentation. Building on design reports published in 2002 and 19...

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Cellulosic bioethanol production has been fraught with challenges, including fluctuations in feedstock supply, handling costs, pretreatment, enzymes, and other logistical problems. Most studies of lignocellulosic ethanol production have focused on a single type of biomass; however, full utilization of various lignocellulosic biomass sources might e...

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... where 0 and 1 represent the reference and actual values (based on pulp mill scenario), respectively. 45 Scaling factors (SF) range from 0.6 to 1 depending on equipment type, 49 and Chemical Engineering Plant Cost Index (CEPCI) i values are used to update these costs from the reference date 2011 50 to the start-up year 2023, being CEPCI 0 585.7 50 and CEPCI 1 803.3. 51 After estimating the equipment cost, the fixed-capital investment is calculated by incorporating additional direct and indirect costs, as percentages of the equipment cost, along with land and infrastructure expenses. ...
... 51 After estimating the equipment cost, the fixed-capital investment is calculated by incorporating additional direct and indirect costs, as percentages of the equipment cost, along with land and infrastructure expenses. 50 Direct costs encompass elements such as equipment installation, instruments and controls, piping, electrical systems, buildings, yard improvements, and service facilities. Indirect costs, on the other hand, encompass engineering, construction expenses, legal fees, contractor fees, and contingency. ...
... Reference equipment cost list.50,68 ...
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The growing interest in bamboo fibers for pulp, paper, and board production in the USA necessitates a comprehensive financial viability assessment. This study conducts a detailed technoeconomic analysis (TEA) of bamboo fiber production, primarily for the consumer hygiene tissue market although it is also applicable to other industrial uses. The economic viability of two pulping methods – alkaline peroxide mechanical pulping (APMP) and ammonium bisulfite chemical pulping (ABS) – was explored within three different pulp mill settings to supply pulp to two nonintegrated tissue and towel mills in South Carolina, USA. The target was to produce wet lap bamboo bleached pulp at 50% consistency and 70% ISO brightness. Despite higher initial capital invesment and operating costs, ABS achieved a lower minimum required selling price – USD 544 to 686 per bone dry metric ton (BDt = 1000 BDkg) – in comparison with USD 766 to 899 BDt⁻¹ for APMP. This price advantage is partly due to an additional revenue stream (lignosulfonate byproduct), which not only boosts revenue but also circumvents the need for expensive chemical recovery systems. When compared with traditional kraft pulping, both methods require significantly lower capital investments, with minimum required selling prices (estimated to achieve 16% IRR) below current market rates for extensively used bleached kraft pulps in the USA tissue industry. The economic benefits derive from several factors: the low cost of bamboo as raw material, reduced capital needs for new pulping technologies, lower transportation costs from the pulp mill to tissue and towel manufacturing facilities, and the high market price of bleached kraft pulp.
... Annual operating costs include raw materials costs, utility costs, labour costs and facility-dependent costs such as insurance. These parameters are kept constant as per the 2011 National Renewable Energy Laboratory report 59 . ...
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... The details of these equipment designs have been published previously. 7,10,35,37,38 Once equipment costs were determined, direct and indirect overhead cost factors were applied to determine a feasibility-level estimate of fixed capital investment (FCI) in 2020 US dollars. These factors are shown in Table S7 (ESI †) along with a summary of capital expenditures for the facility. ...
... Variable operating expenses were calculated based on raw material and utility rates from the process model, while fixed costs (labor, maintenance, insurance, and local taxes, listed in Table S8, ESI †) are based on factors from prior works and adjusted based on plant scale. 38 Financial assumptions used in this analysis are shown in Table S9 (ESI †), which are based on a mature nth plant and consistent with prior published works. Policy incentives based on the modeled fuel carbon intensity (CI) were also included as an optional sensitivity study and are described in Table S10 (ESI †). ...
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... Under ideal conditions, where processed waste is incinerated and waste heat is recovered to offset processed energy requirements, the energy conversion rate of poplar biomass ethanol reaches 37.67%. This figure surpasses the energy conversion rate of cellulosic ethanol [52][53][54][55]. Finally, after delignification pretreatment, dilute sulfuric acid pretreatment, and enzymolysis, 100 g raw poplar obtained 41.52 g glucose, 15.53 g xylose, which was fermented to produce 26.81 g ethanol ( Figure 6). ...
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... To calculate the NPV and Payback values, it is necessary to develop a discounted cash flow analysis. For this purpose, the parameters described by Humbird et al. (2011) have been considered. The useful life of the plant was assumed to be 30 years, requiring 3 years for plant construction, an interest rate of 10% and 7 years for depreciation, with a working capital estimate of 5% of the FCI. ...
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... The process of ethanol production from lignocellulosic biomass as described in the NREL (National Renewable Energy Laboratory, USA) report [18] was used for simulation ( Fig. 1). The process involves dilute acid pretreatment of corn stover biomass, enzymatic saccharification of the cellulose and fermentation of the six and five carbon sugar compounds to ethanol. ...
... Subsequently the flow sheet was generated by adding unit operations and material streams. The units for mixer, cooler, heater, heat 1 Ethanol production process reprinted with permission from the National Renewable Energy Laboratory [18] exchangers, rectifiers etc. already existed in the DWSIM library. However, the units for the reactions of saccharification, fermentation, and distillation were user-defined (as described in Section 2.5) to simulate the process. ...
... The streams considered for the analysis were the properties of the outputs from pretreatment (pretreated liquid, blow down slurry, flash tank, hydrolysate, saccharified slurry, fermented liquid, distilled ethanol vapor, rectifier ethanol vapor and dehydrated ethanol. Once the flowsheet was solved, the outlet mass flow rates of each component was obtained from each section and compared with the ASPEN simulated values available in the literature [18]. Further, the difference between the values was calculated using Eq. ...
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... Table S2 shows the equipment cost information. The base costs of equipment, piping, and installation were derived from (Humbird et al., 2011) and the ADBC, and scaled accordingly using the power law Equation (1), where C b is the cost of the base equipment at a baseline mass M b and C s is the estimated cost of the equipment at the required mass capacity, M s . n is the economy of scale sizing exponent. ...
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... To accurately compare the energy content of liquid fuels, we consider the fuel yields from technologies in Table 1 in gallons of gasoline equivalents (GGE) instead of volume (l). GGE is the preferred unit of the US National Renewable Energy Laboratory, which is the primary source for process data for this study 21 . For clarity, we also include standard (SI) units when applicable. ...
... At the biorefinery, detailed models are available for single conversion technologies (particularly from researchers at the National Renewable Energy Laboratory, who performed detailed process design for biorefineries using microbial conversion, pyrolysis and gasification [21][22][23] ); however, most SC studies consider simplified models of the biorefinery, and only some have compared the economics of different conversion technologies simultaneously 24,25 . To achieve further GHG mitigation, researchers have examined using CCS to capture CO 2 from the different high-concentration process streams at biorefineries 26,27 . ...
... We also assume the potential locations must have a land area of 500 acres (ref. 21). Potential sites within 5 km were treated as a single biorefinery with the location taken as the mean longitude and latitude of the potential sites within the 5 km range. ...
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... During molecular sieve adsorption, ethanol was dehydrated to a concentration of 99.5%, and low-purity ethanol was produced for recycling to the rectification column. In addition, to reduce the loss of ethanol, a vent scrubber was set up to wash the gas-phase products and the fermentation gas phase to recover ethanol [26]. The specific operating parameters are shown in Table 2. ...
... The equipment acquisition and installation costs in this study were based on NREL reports [26,42]. It was calculated by the production scale index method [43] according to Eq. (9): ...
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In this study, a comprehensive comparison of the poplar wood fermentation process and fermentation-coupled gasification process was carried out from energy, environmental, and economic perspectives. The process of fuel ethanol from poplar wood fermentation (Case 1) and fuel ethanol from poplar wood fermentation coupled with lignin gasification for jet fuel (Case 2) was simulated using aspen plus software. The exergy analysis showed that the exergy efficiency of Case 1 and Case 2 were 36% and 35.6%, respectively. The product separation process contributed the most to the exergy losses, and the Case 2 had a 4.5% increase in revenue exergy over Case 1. The life cycle assessment (LCA) results showed that biofuels had a lower environmental impact than conventional petrol, and Case 2 was lower than Case 1. The production stage contributed the most to the global warming potential (GWP) of Case 1 and Case 2 with 49.4% and 51.2%, respectively. The techno-economic analysis showed that the fixed investment in Case 2 had increased by $112.9 million, and the annual operating costs had increased by $27 million compared to Case 1. The costs of fuel production in Case 1 and Case 2 were $1079.3/ton and $1033.4/ton, respectively. Graphical Abstract
... The purchased cost for packing was calculated from the following formula: The total internals purchase cost for these two columns is a sum of the mentioned factors. The total internals installed cost was calculated assuming an installation factor of 2.4 [4]. ...
... Shell and tube heat exchanger configuration was assumed and the cost were calculated as: Purchased cost M S P F = Whereby P is power in kW and F c of 1 for centrifugal compressors was assumed. The installed costs of the compressors were obtained with an installation factor of 1.6 [4]. ...
... 467.2 and 20,480, respectively. The installed pumps costs were obtained by multiplying the purchased costs with an installation factor of 2.3[4]. ...