part 1: overview of cogeneration and its status in asia - Fire
part 1: overview of cogeneration and its status in asia - Fire
part 1: overview of cogeneration and its status in asia - Fire
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Sample case study <strong>in</strong> a pulp <strong>and</strong> paper mill 113<br />
(d) Boiler O & M cost sav<strong>in</strong>gs<br />
This is the cost that would have been <strong>in</strong>curred <strong>in</strong> operat<strong>in</strong>g <strong>and</strong> ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g the boiler if<br />
process steam was produced by a conventional boiler <strong>and</strong> not by the <strong>cogeneration</strong> system.<br />
2.4 F<strong>in</strong>ancial Analysis <strong>of</strong> the Cogeneration Alternatives<br />
Evaluation <strong>of</strong> the feasibility <strong>of</strong> each alternative is made by the IRR <strong>and</strong> NPV methods. Before<br />
calculat<strong>in</strong>g IRR <strong>and</strong> NPV, the costs, revenue, pre-tax pr<strong>of</strong>it, net pr<strong>of</strong>it as well as net cash flow<br />
are computed. Table 2.8 lists the results for selected <strong>cogeneration</strong> alternatives at the end <strong>of</strong><br />
the first year <strong>of</strong> project life. Then, IRR <strong>and</strong> NPV for each c<strong>and</strong>idate are calculated with the<br />
follow<strong>in</strong>g assumptions:<br />
The service lifetime <strong>of</strong> the <strong>in</strong>stalled <strong>cogeneration</strong> system: 15 years<br />
The estimated cost escalation rate per year for fuel, electricity <strong>and</strong> O&M: 5 per cent<br />
Buy-back Rate: 70 per cent<br />
Insurance (as per cent <strong>of</strong> equipment cost): 5 per cent<br />
Tax Rate: 35 per cent<br />
Discount rate: 15 per cent<br />
Table 2.8 Summary <strong>of</strong> cash flows <strong>of</strong> selected alternatives for the 1 st Year<br />
Total<br />
Installation<br />
Cost<br />
Cost <strong>of</strong><br />
Fuel<br />
STEAM TURBINE (Thermal Match)<br />
5,000 kg/hr<br />
40 Bar<br />
60 Bar<br />
80 Bar<br />
13,000 kg/hr<br />
40 Bar<br />
60 Bar<br />
80 Bar<br />
12,222,440<br />
14,401,909<br />
15,589,108<br />
31,577,708<br />
37,165,524<br />
40,203,762<br />
STEAM TURBINE (Power Match)<br />
1,500 kW<br />
7,281,116<br />
7,504,958<br />
7,627,024<br />
18,930,902<br />
19,512,892<br />
19,830,261<br />
Total Costs Total<br />
Revenue<br />
8,136,722<br />
8,513,127<br />
8,718,296<br />
21,141,377<br />
22,114,513<br />
22,644,559<br />
11,282,569<br />
12,214,331<br />
12,722,438<br />
22,813,046<br />
25,235,627<br />
26,556,705<br />
Pre-Tax<br />
Pr<strong>of</strong>it<br />
2,331,018<br />
2,714,077<br />
2,964,868<br />
-433,511<br />
643,412<br />
1,231,895<br />
Net Pr<strong>of</strong>it Net Cash<br />
Flow<br />
1,515,162<br />
1,781,700<br />
1,927,164<br />
-433,511<br />
418,218<br />
800,732<br />
2,329,991<br />
2,741,827<br />
2,966,438<br />
1,671,670<br />
2,895,920<br />
3,480,932<br />
80 Bar 44,407,619 21,934,763 25,043,310 28,389,132 385,314 250,454 3,210,962<br />
2,430 kW<br />
80 Bar 71,284,107 35,534,316 40,524,218 30,905,642 -14,370,849 -14,370,849 -9,618,575<br />
DIESEL ENGINE<br />
Thermal-Match<br />
5,000 kg/hr<br />
13,000 kg/hr<br />
Power-Match<br />
1,500 kW<br />
2,430 kW<br />
GAS TURBINE<br />
Thermal-Match<br />
158,679,722<br />
283,210,583<br />
48,376,832<br />
74,045,674<br />
32,761,595<br />
85,180,147<br />
7,851,944<br />
12,720,150<br />
44,662,609<br />
106,420,976<br />
11,480,242<br />
18,273,610<br />
69,541,795<br />
162,631,802<br />
20,842,550<br />
30,967,472<br />
14,300,538<br />
37,330,121<br />
6,137,187<br />
7,757,484<br />
(All Values <strong>in</strong> Pesos)<br />
9,295,349<br />
24,264,579<br />
3,989,171<br />
5,042,365<br />
19,873,998<br />
43,145,284<br />
7,214,293<br />
9,978,743
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