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In this study, a biorefinery concept is presented to produce valuable platform chemicals such as γ-valerolactone (GVL), 2-methyltetrahydrofuran (2-MTHF) and 5-hydroxymethylfurfural (5-HMF) from lignocellulosic biomass via aqueous phase processing. Process simulation models are developed using Aspen Plus and a techno-economic assessment including cost estimation, energy integration, profitability study, sensitivity analysis and Monte Carlo simulation-based uncertainty analysis is carried out for evaluating the economic potential of the proposed process. The total investment for a plant with an annual production capacity of 35 kt of GVL, 17 kt of 2-MTHF and 5 kt of 5-HMF, is estimated as 257 M€. The minimum selling prices (MSPs) of GVL, 2-MTHF and 5-HMF are estimated to be 1.91 €/kg, 1.64 €/kg, and 1.93 €/kg, respectively. The profitability study revealed that the process generates an internal rate of return of 15.90%, making it viable and profitable. The sensitivity analysis indicated that the annual operational costs and fixed capital investment have the biggest influence on the minimum selling price of the products. Furthermore, based on the uncertainty analysis, the probability of loss is estimated as 17%. According to the market potential assessment, the most promising application of these platform chemicals is as biofuels and solvents. [ABSTRACT FROM AUTHOR]

Abstract Blue Growth is the creation of economic activity and jobs at sea, while multiple use of space makes efficient use of the available sea area by combining industries. Clearly there are many combinations and many value propositions. However, most technologies to date are considered blue sky concepts, with little robust techno-economic analysis demonstrating profitability. The paper begins by providing a comprehensive review of Blue Growth and multi-use in Blue Growth; both in policy as well as the wide range of current technologies, including ocean energy, offshore wind energy, offshore aquaculture and desalination. The Maribe H2020 project provides the vehicle for the research element of the paper. The major contribution is a new methodology for selecting, filtering, developing and ranking business propositions for multiple-use of space (MUS) and multi-use platforms (MUP). Application of the method for the first time identified three case studies where Blue Growth combination projects can be economically viable, with attractive internal rate of return (IRRs). Results presented for the case studies report standard investment metrics and show the relative contribution of each product (energy, food, water) to the system profitability, as well as socio-economic impact. Existing companies were fully engaged in the process. Co-creation between sector experts and industry led to both improved business value propositions and robust assessment of investment readiness. In contrast to the presumption that large scale platforms are commercially attractive, the highest ranking case study companies required smaller capital expenditure (CAPEX) and operated in niche subsectors. In conclusion, the positive economic performance of the case studies should provide confidence for the EC as well as investors that MUS and MUP have viable economic futures leading towards commercialisation. The macro and micro assessment methods will be particularly useful in other Blue Economy contexts and in other multiple product contexts. Highlights • A comprehensive history of multiple use of space blue growth. • New metrics for comparing salmon to megawatts are presented. • Method and criteria for ranking potential investments in blue growth business models. • Profitable case studies described involving electricity, water, mussels and fish. [ABSTRACT FROM AUTHOR]

Hexane extraction is the most common method used in the industry to produce soybean oil due to its high oil recovery and lower production cost. With the demands of soybean oil increasing either in food or industrial applications, expansion plans are considered by many companies to increase production capacity. Techno-economic analysis is performed to evaluate the economic feasibility of soybean oil production by hexane extraction based on historical scenarios from 1980 to 2015. Capital investment, operating costs, revenues, and profits are main parameters to consider when estimating profits, gross margin, return on investment (ROI), and payback time and are the indices used to evaluate the profitability of the process. As the plant capacity increases in scale to over 34.64 million kg of annual soybean oil production, the break-even is met and the producing stream is able to earn profits. Additionally, sensitivity analysis is also applied to examine which factor affects profit the most. In the hexane extraction process, material costs, especially for soybean prices, have the most significant effect on profit. However, soybean meal is the main driving force for soybean oil production due to its significant amount of productivity and revenues. [ABSTRACT FROM AUTHOR]

[Display omitted] • Simultaneous effect of KOH and biochar was studied on hydrolysis and syntropy. • Taguchi based design of experiment was coupled with grey relation analysis. • 0.5 g/100 g straw of alkali and 10 g/L of biochar was the optimised dosing. • Techno-economic analysis showed US$ 25,652 of NPV and 11.29% IRR. The present study investigated the effect of alkali and biochar addition for simultaneous increment of hydrolysis and syntropy for higher methane yield from pearl millet straw (PMS) in solid state anaerobic digestion. A taguchi based design of experiment was coupled with grey relation analysis for multiple output optimization. Study showed that 0.5 g (g/100 g PMS) of alkali and 10 g/L of biochar was the optimised dosing. Statistically, contribution of biochar and alkali was 48 and 21% respectively on the multiple output. The confirmation test revealed that hydrolysis rate constant, k and total volatile fatty acid/alkalinity ratio for reactor having optimised conditions was 0.0521 d-1 and 0.36 while for control, it was 0.0595 d-1 and 0.76 respectively. Techno-economic assessment showed US$ 25,652 of net present value and 11.29% of internal rate of return. Sensitivity analysis showed that capital expenditure and methane yield was most sensitive to net present value. [ABSTRACT FROM AUTHOR]

• The designs of vapor-recompression distillation columns for the ethylene-ethane separation with high or low pressures in the auxiliary condenser are compared. • High pressure reduces refrigeration cost in the condenser but increases compressor cost. • The high-pressure design has 11% lower total energy cost but requires more capital investment. • The return on investment is quite attractive. A recent paper studied the separation of ethylene and ethane using several types of distillation systems in which cryogenic cooling is required. The economics of a conventional column using a very low-temperature expensive refrigerant in the condenser were compared with several configurations using process compressors. The alternative configurations involve the pressure in the auxiliary condenser and the fraction of the column overhead vapor sent through the compressor. Low pressure in the condenser requires a very low-temperature expensive refrigerant but has lower compressor costs. The purpose of this paper is to show that all of the vapor from the column should be compressed and then split, with some going to the reboiler and the rest going to an auxiliary condenser that operates at high pressure so that a higher-temperature less-expensive refrigerant can be used. [ABSTRACT FROM AUTHOR]

This study evaluated the techno-economic assessment of xylo-oligosaccharides (XOs) production from brewer's spent grains (BSG) in a single and two sequential flow-through subcritical water hydrolysis (SWH) reactors at different temperatures (80–180 °C). The process with a single reactor produced the highest yield (72.83 mg XOs g−1 BSG) at 180 °C. The SWH in two sequential reactors produced up to 52.47 mg XOs g−1 BSG for the process operated at 80 °C followed by 130 °C. The lowest cost of manufacturing (18.36 USD kg−1 XOs) was obtained for the process with two sequential reactors. Although the fixed capital investment was 0.82-fold lower for the process with a single reactor, the gross profit of the process with two sequential reactors was 30% higher, which resulted in a return on investment of 54.26% and a payback of 1.84 years. In conclusion, SWH is a potential eco-friendly process to produce XOs from BSG. [Display omitted] • Xylo-oligosaccharides (XOs) were obtained from subcritical water hydrolysis. • The highest XOs yield was obtained for the process at 180 °C. • Xylotetraose, xylotriose, and xylobiose represented 85% of the total XOs. • The lowest cost of manufacturing was 18.36 USD kg−1 XOs. • Subcritical water is a potential eco-friendly process to produce XOs. [ABSTRACT FROM AUTHOR]

The problem with evaluating the investment in a multi-site photovoltaic plant, such as that proposed in this paper (which can be viewed as a profitability analysis), is that it requires the development of an innovative methodological approach. By setting an upper limit of capital to invest, among sites with different Direct Normal Irradiations (DNI), those in which many photovoltaic systems can be installed are identified as is the optimal size within predefined ranges. The primary objective is to maximize the net return on investment for a multi-site plant with a lifespan of approximately twenty years. The proposed approach uses a stochastic business plan, through which data are generated via the Monte Carlo simulation. Subsequently, using the Response Surface Methodology procedure, it is possible to identify the regression meta-model that describes the optimum region and therefore the point (investment amount for individual sites and the corresponding size of plants) that maximizes the overall Net Present Value. The proposed approach is completely generalized and, as such, can be replicated. A properly conducted test case is presented and clearly illustrates the methodology. [ABSTRACT FROM AUTHOR]

The Brazilian territory is irradiated with solar energy ranging from 1500 to 2300 kWh/m 2 /year, compared to 900 to 1850 kWh/m 2 /year in Germany, France, Italy and Spain. Despite that, photovoltaic (PV) technology is only now starting to penetrate the Brazilian electricity mix. Until recently, the high costs of PV generation had prevented this technology from competing in Brazil. However, the consistent PV price reductions and the worldwide scale reached, has brought attention to the Brazilian planners and actions have been taken recently in Brazil to help PV start its progress. In this paper, two of the recent government actions are analyzed, namely the National Electrical Energy Agency ANEEL Resolution RN482/2012, and the announcement of support by the Brazilian Development Bank offering loans at low interest rates for solar PV projects. The effects of these actions for residential PV systems are positive where the conventional electricity tariff is high with respect to the average in the country, and less relevant elsewhere. We compare these tariffs with the calculated Levelized Cost of Energy of rooftop PV generation. The influence of these policies on the return on investment of residential rooftop PV generation is studied for different climatic zones in Brazil. [ABSTRACT FROM AUTHOR]

• The general problem of developing profitability optima is considered at the conceptual level for chemical process designs. • Industrial estimates often employ IRR (Internal Rate of Return) to measure profitability, with a "traditional" hurdle rate to specify the required IRR (ROI). • The NPV % measure provides a more effective basis. Its parameters are adjustable to match the process, the financial environment, and profitability requirements. • Viewing long-term profitability (NPV project), short-term risk [(NPV %)−1] and total capital invested (TI), the first should be maximized ... the last two, minimized or at least subject to bounds. • A new graphical method, with NPV % plotted versus NPV project , couples the three objectives, thus avoiding a Pareto-style optimization with its arbitrary weightings. • The optimum design is at the point of diminishing returns for LT profitability. Any lower value of TI reduces max (NPV project); any larger value isn't fully recovered. Recent fundamental work with discounted cash flow methods shows that an alternative metric for evaluating profitability and risk, one different from Internal Rate of Return (IRR) —namely the annualized and non-dimensionalized Net Present Value (NPV %)— can make evaluating project profitability easier yet more informative. It provides a simple and transparent strategy to optimize a design's key financial dependent variables (capital investment, profitability, risk). 1 1 Model form was originally referred to as "inside-out," but is now called "exo-parametric," i.e., switching from the vernacular to a more scientific and widely-used terminology (Mellichamp, 2018). Both traditional and exo-parametric modeling methods developed by the author are linked to this metric, providing an efficient and precise mechanism to organize and carry out the financial/optimization search procedures in process design. Design engineers want to know what is the optimum size of investment (TI) that meets projected market conditions? What is the expected long-term (NPV) return? What metric can be used to maximize them, consistent with the need to recover capital as quickly as reasonably possible (i.e., to bound the "short-term risk")? The proposed approach answers all three questions simultaneously, with a precise min-max solution obtained transparently. [ABSTRACT FROM AUTHOR]

This paper, on the basis of a sample of Chinese listed firms, investigates the relationship between both real and accrual-based earnings management activities and firms' capital investment behavior. We apply the threshold model proposed by Hansen (1999) and find firms managing earnings can either over or underinvest, depending upon firms' return on equity (ROE) level. The study results show an inverted relationship between earnings management and firms' investment, which changes from negative to positive with ROE rising beyond certain threshold levels. We also find that the level of ROE affects whether managers use real and accrual manipulations jointly or as substitutes in affecting firms' investment. Our evidence is important because it sheds new light on the relationship between earnings management activities and firms' investment behavior by showing that ROE may act as an important determinant in this relationship. This finding has important implications for policymakers such as the Chinese Securities Regulatory Commission (CSRC) as it shows that the regulatory benchmarks they set may have a significant impact on firms' investment behavior. • The relationship between investments and earnings management activities is not linear in return on equity (ROE) • Firms managing earnings can either over or underinvest, depending upon the level of firms' ROE • Level of ROE affects if managers use real and accrual manipulations jointly or as substitutes in affecting firms' investment [ABSTRACT FROM AUTHOR]

Abstract This study aims to evaluate whether the implied cost of capital (ICC) model is better than the capital asset pricing model (CAPM) in predicting the realized rate of return for infrastructure firms. We selected a sample of 49 listed companies in Brazil for the period from 2002 to 2014. The CAPM yielded a cost of capital of 11.97% per annum, while the ICC yielded 13.39% per annum, a difference of 1.42% annually. We suggest that a possible explanation for this result is the existence of systematic, non-diversifiable risk, potentially due to regulatory intervention in the business environment. Highlights • This paper aims to evaluate whether the implied cost of capital (ICC) model, in the version developed by Easton (2006), is better than CAPM to predict the realized rate of return (ROR) for infrastructure firms. We selected a sample of 49 Brazilian listed companies from 2002 to 2014. • Our findings, obtained in the pooled regression model, showed that the ICC had a positive and significant correlation with future stock returns, whereas the CAPM did not. • Robustness and Diebold–Mariano tests (1995) corroborated that the ICC is a superior predictor of actual ROR's for the sample of Brazilian utilities. [ABSTRACT FROM AUTHOR]

This paper evaluates the economic feasibility of an integrated production pathway combining fast pyrolysis and bio-oil gasification. The conversion process is simulated with Aspen Plus® for a 2000 metric ton per day facility. Techno-economic analysis of this integrated pathway has been conducted. A total capital investment of $510 million has been estimated and the minimum fuel selling price (MSP) is $5.59 per gallon of gasoline equivalent. The sensitivity analysis shows that the MSP is most sensitive to internal rate of return, fuel yield, biomass feedstock cost, and fixed capital investment. Monte-Carlo simulation shows that MSP for bio-oil gasification would be more than $6/gal with a probability of 0.24, which indicates this pathway is still at high risk with current economic and technical situation. [ABSTRACT FROM AUTHOR]

Benchmarking of the economics methodologies developed by the Generation IV International Forum (GIF) and the International Atomic Energy Agency’s International Project on Innovative Nuclear Reactors and Fuel Cycles (INPRO), was performed for three Generation IV nuclear energy systems. The Economic Modeling Working Group of GIF developed an Excel based spreadsheet package, G4ECONS (Generation 4 Excel-based Calculation Of Nuclear Systems), to calculate the total capital investment cost (TCIC) and the levelised unit energy cost (LUEC). G4ECONS is sufficiently generic in the sense that it can accept the types of projected input, performance and cost data that are expected to become available for Generation IV systems through various development phases and that it can model both open and closed fuel cycles. The Nuclear Energy System Assessment (NESA) Economic Support Tool (NEST) was developed to enable an economic analysis using the INPRO methodology to easily calculate outputs including the TCIC, LUEC and other financial figures of merit including internal rate of return, return of investment and net present value. NEST is also Excel based and can be used to evaluate nuclear reactor systems using the open fuel cycle, MOX (mixed oxide) fuel recycling and closed cycles. A Super Critical Water-cooled Reactor system with an open fuel cycle and two Fast Reactor systems, one with a break-even fuel cycle and another with a burner fuel cycle, were selected for the benchmarking exercise. Published data on capital and operating costs were used for economics analyses using G4ECONS and NEST tools. Both G4ECONS and NEST predicted comparable TCIC and LUEC; with some variation in fuel cycle costs. The benchmarking exercise was also useful to understand the differences in the two methodologies for potential harmonisation opportunities in the future. [ABSTRACT FROM AUTHOR]

• Diluent and temperature-swing regeneration processes applied for extraction of succinic acid with TOA and TOPO in MIBK. • Swing in acid distribution between extraction and regeneration more important than acid distribution itself. • Regeneration process based on gaseous anti-solvent ethane is most efficient, requiring only 21% of the energy of evaporation. • Combination of evaporation of MIBK and temperature-swing strongly reduces required energy input and results in higher product purity. Solvent regeneration processes for liquid-liquid extraction of succinic acid (HSuc) from aqueous streams were investigated. Tri -n- octyl amine (TOA) and tri -n- octyl phosphine oxide (TOPO) in methyl isobutyl ketone (MIBK) showed good extraction. For 20 wt% TOA in MIBK, addition of pentane at anti-solvent-to-solvent ratio of 1 (vol/vol) decreased K D from 10.2 to 0.46, applying ethane at 30 bar decreased K D to 0.45 and increasing the temperature to 60 °C decreased K D to 1.6. Evaporation of MIBK from a solvent of 40 wt% TOA in MIBK decreased K D from 10.2 to 4.0. For these processes, capital investments and energy requirements were calculated for 10 kiloton per year at a concentration factor of 5. Costs of all processes to obtain the product at maximum solubility are less than evaporation (2600 kJ/kg product at maximum solubility). A combination of a swing in diluent and temperature results in higher product concentrations after back-extraction, and reduced the energy input to obtain the pure HSuc to 19 MJ/kg. The ethane-based process is most effective with 13 MJ/kg to obtain the pure HSuc product. Although additional capital investments for compressors and pumps are required, only 110 days of production are required for return on investments. [ABSTRACT FROM AUTHOR]

Artisan cheese makers lack access to valid economic data to help them evaluate business opportunities and make important business decisions such as determining cheese pricing structure. The objective of this study was to utilize an economic model to evaluate the net present value (NPV), internal rate of return, and payback period for artisan cheese production at different annual production volumes. The model was also used to determine the minimum retail price necessary to ensure positive NPV for 5 different cheese types produced at 4 different production volumes. Milk type, cheese yield, and aging time all affected variable costs. However, aged cheeses required additional investment for aging space (which needs to be larger for longer aging times), as did lower yield cheeses (by requiring larger-volume equipment for pasteurization and milk handling). As the volume of milk required increased, switching from vat pasteurization to high-temperature, short-time pasteurization was necessary for low-yield cheeses before being required for high-yield cheeses, which causes an additional increase in investment costs. Because of these differences, high-moisture, fresh cow milk cheeses can be sold for about half the price of hard, aged goat milk cheeses at the largest production volume or for about two-thirds the price at the lowest production volume examined. For example, for the given model assumptions, at an annual production of 13,608 kg of cheese (30,000 lb), a fresh cow milk mozzarella should be sold at a minimum retail price of $27.29/kg ($12.38/lb), whereas a goat milk Gouda needs a minimum retail price of $49.54/kg ($22.47/lb). Artisan cheese makers should carefully evaluate annual production volumes. Although larger production volumes decrease average fixed cost and improve production efficiency, production can reach volumes where it becomes necessary to sell through distributors. Because distributors might pay as little as 35% of retail price, the retail price needs to be higher to compensate. An artisan cheese company that has not achieved the recognition needed to achieve a premium price may not find distribution through distributors profitable. [ABSTRACT FROM AUTHOR]

Conceptual design of two options of carbon dioxide utilized gas-to-liquids process (CUGP), which mainly produces light olefins and Fischer–Tropsch (F–T) synthetic oils, has been implemented with the aid of Aspen Plus software. The mass and energy stream results as well as the process efficiencies and CO 2 emissions of the proposed options were obtained from the developed models. The capital investment and the product cost estimations were conducted before the following economic analysis. Several indicators such as net present value (NPV), discounted payback period (DPBP) and internal rate of return (IRR) were calculated to evaluate the profitability of the two proposed options. In the economic analysis, sensitivity analysis as well as break-even analysis was carried out. In addition, effects of several sensitive factors such as the prices of synthetic oil, olefin and natural gas, capital investment, carbon tax and plant scale on the IRR of each option were analyzed in detail. It was found that the CUGP, regardless of option, was economically feasible at the plant scale of 40,000 BPD and was more competitive compared with conventional GTL processes, in case of high carbon tax. [ABSTRACT FROM AUTHOR]