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A techno-economic analysis (TEA) was conducted to evaluate the economic profitability and feasibility for a H 2 energy storage system using an alkaline and a polymer electrolyte membrane water electrolysis for 1 MW water electrolysis operation. Many economic analysis methods such as itemized cost estimation, profitability analysis using a cumulative cash flow diagram, and uncertainty analysis employing a Monte-Carlo simulation method were utilized to perform a TEA. In particular, a renewable energy certificate (REC) was considered as an additional benefit of a renewable energy use. From itemized cost estimation, respective levelized costs of H 2 of 7.21 and 9.19 $ kgH 2 −1 were obtained for both H 2 energy storage systems in an alkaline and a polymer electrolyte membrane water electrolysis by considering current economy situation and therefore it is still difficult to be cost-competitive compared to a commercial H 2 production cost. From profitability and uncertainty analysis results, an appropriate REC weight was confirmed in terms of discounted profitability criteria like a discounted payback period, a net present value, a present value ratio, and a discounted cash flow rate of return. In addition, a REC weight was affected on a net present value compared to a REC trading cost fluctuation. • Techno-economic analysis was conducted for a H 2 energy storage system. • Respective LCOHs of 7.21 and 9.19 $ kgH 2 −1 were obtained for HESSs in an AWE and a PWE. • An appropriate REC weight was identified based on discounted profitability criteria. • A REC weight has more impact on a NPV than a REC trading price fluctuation. [ABSTRACT FROM AUTHOR]

The circular economy is calling for the rapid use of already-developed renewable energies. However, the successful implementation of those new fuels is limited by economic and political issues. For instance, in the Brandenburg region, Germany, biogas production from anaerobic digestion of biomass and wastes is a current alternative. However, the upgrading biogas to biomethane is still challenging and the economic viability is unknown. Therefore, we performed an economic analysis for biogas upgrading to biomethane in the Brandenburg region. Five biogas plant sizes were analyzed by the method of discounted cash flow. This method yields the net present value of the projects, thus revealing the profitability or non-profitability of the plants. Results indicate profitable outputs for medium and large plants, with net present values between 415 and 7009 k€. However, the smallest plants have net present values from -4250 to -3389 k€, thus needing further economic efforts or subsidies to reach profitability. Indeed, biomethane prices should range between 52.1 and 95.6 €/MWh to make these projects profitable. Combinations of 50% of investment subsidized and 11.5 €/MWh feed-in tariffs subsidies could make the projects reach profitability. These findings reveal that political actions such as green policies and subsidies are needed to implement green energy. This case study should serve as a potential tool for policy-makers toward a sustainable bioeconomy. [ABSTRACT FROM AUTHOR]

• A PPA business model is assessed under the Colombian renewable energies law. • PV investments are feasible when tax benefits are considered into the model. • ROA shows that is better to delay the investment under current market conditions. • Low execution of PV projects under Law 1715 is explained in the ROA approach. Renewable energies are an alternative to explore new business models in Colombia, especially when the new regulation associated with Law 1715 is considered. In this work the financial feasibility of a power purchase agreement (PPA) that uses photovoltaic energy is analyzed from the perspective of a non-traditional investor. In this paper, the financial feasibility of a PPA business was analyzed considering some of the benefits offered by Law 1715 through the use of discounted cash flows and real option analysis. The results show that tax benefits (included on Law 1715) improve the feasibility of this business models in Colombia, nevertheless, the defer option value suggest the convenience of delaying the investment. This work contributes to the analysis of the effect of the renewable energy policy incentives and the development of new business models based on renewable energies and the analysis of decisions that help include photovoltaic energy in Colombia. [ABSTRACT FROM AUTHOR]

In recent years, On-orbit servicing (OOS) is in the ascendant, attracting attentions of a growing number of institutions and commercial space companies. The sustainable development of OOS is heavily relied on its economic benefits. However, the economic feasibility of OOS is not sufficiently analyzed in the existing studies. Based on this, a general economic value analysis framework for OOS is proposed in this paper. Firstly, the maximum price that clients would be willing to pay is obtained by real option method through comparing values of OOS by an alternative scheme. Secondly, the minimum price that the servicer could afford is predicted by Discounted Cash Flow (DCF) method, which is based on a service provider value model. Six necessary factors are considered in this model at the same time, including servicing architecture and its initial construction cost, mission related depreciation, income tax, operating expense, monetary value, as well as technical risks and the corresponding insurance premium. Then, the above two prices are compared to analyze the economic feasibility of OOS. Finally, mission cost, pricing strategies and OOS value drivers are modeled and discussed within the estimated acceptable price range. The results show that the OOS is commercially viable when the initial costs of geosynchronous communication satellites and the servicing architecture are more than $242 M and less than $140 M respectively. The applicability and usefulness of the proposed method are demonstrated by an actual business case analysis of the Mission Extension Vehicle-1 (MEV-1). • An economic value analysis framework for on-orbit servicing (OOS) is proposed. • A modified cost model for service provider is established. • It discusses acceptable service charging, value-based pricing strategy and key driving factors of OOS. • The satellite servicing for GEO satellites is a promising industry. • Appropriate value sharing between clients and service providers is essential for sustainable development of OOS. [ABSTRACT FROM AUTHOR]

Objective: Magazine Luiza, founded in November 1957, a national retail icon, started in 2011 at B3, with exponential growth in the valuation of its shares. This case provides the following pedagogical objectives: a) to promote the problem analysis, to propose and inquire decisions regarding valuation; b) stimulate reflection between the theory that supports the evaluation purposes and the way it should be developed and applied; c) expand the ability to relate the valuation theoretical assumptions of valuation and their adequacy to reality. Methodology: The Financial Statements were extracted from the MGL company website, on Economática® and on B3 website. Professor Damodaran's database was also used. We highlight the data are real, however, on the other hand, the existence of Alpha Varejo and its proposed acquisition of Magazine Luiza is considered as a hypothetical situation. Results: From a behavioral point of view, it allows students and professors to have fair and discussions so that there is mutual respect for divergent opinions and ideas, allowing the exposure of their points of view. Estimating the company's value using the Discounted Cash Flow and Relative Valuation methods is a complex task and can be considered as an important decisionmaking process, especially for the company's shareholder. In the use of methods, there is the need to choose appropriate premises that best reflect the reality of the company. Study Contributions: The performance of the proposed activity, with undergraduate or graduate students in the business area in disciplines aimed to analyze the financial viability of companies and valuation, contributes to the training of these students with critical analysis development and stimulating discussion in finance area. [ABSTRACT FROM AUTHOR]

Purpose: Magazine Luiza, founded in November 1957, is a national retail icon, went public in 2011 at B3, with exponential growth in the valuation of its shares. This case provides the following pedagogical objectives: a) promote problem analysis, propose and inquire about valuation decisions; b) stimulate reflection between the theory that supports the purposes of evaluation and the way it should be developed and applied; c) expand the ability to relate the theoretical assumptions of valuation and their adequacy to reality. Methodology: The Financial Statements were extracted from the website of the company, on Economática® and on the website of B3. Professor Damodaran's database was also used. It should be noted that the data are real, however, on the other hand, the existence of the company Alpha Varejo and its proposed acquisition of the company Magazine Luiza are considered as a hypothetical situation. Results: From a behavioral perspective, it allows students and teachers to have healthy dialogues and discussions so that there is mutual respect for divergent opinions and ideas, allowing the exposure of their points of view. Estimating the value of the company using the Discounted Cash Flow and Relative Valuation methods is a complex task, and can be considered as an important decision-making process, especially for the company's shareholder. In the use of methods, there is the need to choose appropriate premises that best reflect the reality of the company. Contributions of the Study: The performance of the proposed activity, with undergraduate or graduate students in the business area in disciplines aimed at analyzing the financial viability of companies and valuation, contributes to the training of these students with the development of critical analysis and stimulating discussion in the financial studies. [ABSTRACT FROM AUTHOR]

This paper defines the roles of biomethane for a double-green transition, through the integration of an effective management of renewable energy and municipal waste. The authors perform an assessment of the potential transition of the municipality of Rome to a more sustainable transport system, based on the economic feasibility of production of biomethane as analysed with the Discounted Cash Flow methodology. The potential reduction of emissions is quantified considering biomethane, to be used as vehicle fuel instead of natural gas. The provision of subsidies is found to be an essential condition to support the development of the biomethane sector. The subsidies must be coordinated with other policies such as the construction and operation of new fuelling stations and the increase of vehicles fuelled by biomethane. Several economic indicators are used to support investors by defining the conditions in which the profitability and economic opportunities are quantified. The transformation of bio-wastes into clean energy, closes the loop and helps societies to make progress toward becoming circular economies, which can contribute to decarbonizing the transport sector. Results of these analyses are applicable in other municipalities, which are currently under-utilizing their organic wastes and by-products. Image 1 • Biomethane supports the development of CE models. • Biomethane can contribute to a double green transition.. • A total NPV varies from 4.6 million € to 63.3 million €. • Do Nothing cost varies from 365 thousand € to 2872 thousand €. • The decrease of GHG emissions ranges from 43 to 51 thousand ton CO2eq/year. [ABSTRACT FROM AUTHOR]

Context: The large inter-annual and decadal rainfall variability that occurs in northern Australian rangelands poses major challenges for the profitable and sustainable management of grazing businesses. Aims: An integrated bio-economic modelling framework (GRASP integrated with Breedcow and Dynama (BCD)) was developed to assess the effect of alternative grazing-management options on the profitability and sustainability of a beef cattle enterprise in the central-western Mitchell grasslands of Queensland over a multi-decadal time period. Methods: Four grazing-management strategies were simulated over a 36-year period (1982–2017) in the GRASP pasture-growth model, using historic climate records for Longreach in central-western Queensland. Simulated annual stocking rates and steer liveweight-gain predictions from GRASP were integrated with published functions for mortality and conception rates in beef-breeding cattle in northern Australia, and then used to develop dynamic BCD cattle-herd models and discounted cash-flow budgets over the last 30 years of the period (1988–2017), following a 6-year model-equilibration period. The grazing-management strategies differed in the extent to which stocking rates were adjusted each year, from a common starting point in Year 1, in response to changes in the amount of forage available at the end of the summer growing season (May). They ranged from a low flexibility of 'Safe stocking rate' (SSR) and 'Retain core herd' (RCH) strategies, to a moderate flexibility of 'Drought responsive' (DR), to a 'Fully flexible' (FF) strategy. The RCH strategy included the following two herd-management scenarios: (1) 'Retain herd structure', where a mix of cattle were sold in response to low pasture availability, and (2) 'Retain core breeders', where steers were sold before reducing the breeder herd. Herd-management scenarios within the DR and FF strategies examined five and four options respectively, to rebuild cattle numbers and utilise available pasture following herd reductions made in response to drought. Key results: Property-level investment returns expressed as the internal rate of return (IRR) were poor for SSR (–0.09%) and the three other strategies when the herd was rebuilt following drought through natural increase alone (RCH, –0.27%; DR, –1.57%; and FF, –4.44%). However, positive IRR were achieved when the DR herd was rebuilt through purchasing a mix of cattle (1.70%), purchasing pregnant cows (1.45%), trading steers (0.50%) or accepting cattle on agistment (0.19%). A positive IRR of 0.70% was also achieved for the FF property when purchasing a mix of cattle to rebuild numbers. However, negative returns were obtained when either trading steers (–2.60%) or agistment (–0.11%) scenarios were applied to the FF property. Strategies that were either inflexible or highly flexible increased the risk of financial losses and business failure. Property-level pasture condition (expressed as the percentage of perennial grasses; %P) was initially 69%P and was maintained under the DR strategy (68%P; average of final 5 years). The SSR strategy increased pasture condition by 25% to 86%P, while the RCH and FF strategies decreased pasture condition by 29% (49%P) and 65% (24%P) respectively. Conclusions: In a highly variable and unpredictable climate, managing stocking rates with a moderate degree of flexibility in response to pasture availability (DR) was the most profitable approach and also maintained pasture condition. However, it was essential to economic viability that the property was re-stocked as soon as possible, in line with pasture availability, once good seasonal conditions returned. Implications: This bio-economic modelling analysis refines current grazing-management recommendations by providing insights into both the economic and sustainability consequences of stocking-rate flexibility in response to fluctuating pasture supply. Caution should be exercised in recommending either overly conservative safe stocking strategies that are inflexible, or overly flexible stocking strategies, due to the increased risk of very poor outcomes. The large inter-annual and decadal rainfall variability, which occurs in northern Australian rangelands, poses major challenges for the profitable and sustainable management of grazing businesses. A bio-economic evaluation found that when stocking rates were based on conservative carrying-capacity principles designed to maintain pasture condition, a moderate flexibility in response to pasture availability was likely to be the most profitable approach to grazing management, as well as maintaining pasture condition over time. [ABSTRACT FROM AUTHOR]

This research focuses on valuing an investment project through the Theory of Real Options Games (ROG), this approach allows extending the standard valuation analysis including flexibility and uncertainty scenarios in market structures such as monopoly and oligopoly, given the importance of making decision in investment projects, there is a need to identify strategies with tools to overcome the limitations of traditional methods based on the discounted cash flow model (DCF), analysing the impact that may exist on investment when incorporating the actions of other market participants. [ABSTRACT FROM AUTHOR]

Between 1967 and 1971, the Chilean government nationalized its large-scale copper mining industry. While this process is widely considered successful given the demonstrated long-term state capacity to profitably operate the assets, the discussion on its net financial convenience has usually been disregarded. Aiming to improve the understanding of this case of resource nationalism, this paper follows two complementary approaches. First, we provide a systematic review of the historical background, development, and short-term impact of the Chilean nationalization, consolidating at the same time the available financial data on fiscal inflows and outflows as part of this process. Secondly, we perform an ex-post NPV assessment using a 10% discount rate over the annual cash flows that the government has perceived from the nationalized mining operations from 1967 to 2022 and compare it with a hypothetical counterfactual scenario in which these mines would have remained privately owned. This yields a higher NPV of the Nationalization compared to the counterfactual. Considering that discount rates above 11.1% or operational cost reductions by 4.5% indicate a net financial loss, the results suggest that, purely from a financial perspective, the nationalization process was marginally positive for the government. We expect that this analysis provides support for a thoughtful mineral policy that contributes to sustainable human and economic development in resource-rich countries. [ABSTRACT FROM AUTHOR]

Hydrogen is a prominent clean fuel option for combatting global warming and producing low-emission, ecologically friendly electricity. Consequently, the proton exchange membrane water electrolysis (PEMWE) hydrogen refueling station has undergone thorough economic and environmental analysis. This work intends to fill the gap by presenting the influence of various operating circumstances and design parameters on the economic and environmental aspects of PEMWE based on various behaviors and features (I–V curve) under various scenarios. Profitability analysis (PA) is performed in terms of the net present value (NPV), discounted payback period (DPBP), benefit-cost ratio (BCR), and internal rate of return (IRR) from cumulative discounted cash flow diagrams (CFD). Also, sensitivity analysis (SA) is conducted to assess the impact of different economic factors, while simultaneously establishing CO 2 footprint guidelines for optimal operating and design conditions. The findings highlight that enhancing economic feasibility and reducing environmental concerns are simultaneously achievable by increasing cathode pressure, operating temperature, and decreasing membrane thickness. At membrane thicknesses over 100 μm, the project becomes unprofitable and inefficient at 1.85 V. PEMWE becomes more valuable and sustainable with a current density of 12,000 A/m2 or higher, but it releases more CO 2 emissions. Hence, utilizing excess renewable electricity in PEMWE addresses environmental concerns and enhances the overall ecological sustainability of hydrogen production. [ABSTRACT FROM AUTHOR]

The transportation sector significantly contributes to global warming due to the extensive use of fossil fuels. Biofuels have the potential to eliminate inherent problems associated with the combustion of fossil fuels. However, large-scale deployment of biorefineries is limited because of high capital and operating costs as well as the low market value of biofuels that make such plants economically unfavorable. Additionally, using sustainable feedstock (algae, cyanobacteria, etc.), i.e., with no social, environmental, or technological challenges, is another major bottleneck for biorefineries. Considering these challenges, this study presents a strategy for the commercialization of macroalga-derived bioethanol via a circular economy-based integrated biorefinery concept. A standalone (conventional) process was designed for bioethanol production at 50.0 million gallons (189.3 million liters) per year capacity in Aspen Plus V12.2. Economic and environmental indicators were assessed through discounted cash flow and cradle-to-grave (SimaPro V9.4.0.7) analyses, respectively. Once the potential targets are identified, a novel integrated process was designed for biofuel and biochemical production, which is not only economically favorable in the current market but also has a better life cycle profile compared to that of a standalone process. The results showed that the integrated design has a minimum ethanol selling price of USD 0.35/L and a global warming potential of 0.35 kg CO 2 eq/L of ethanol, which is 45% and 82.7% lower than that of the standalone design. Sensitivity analysis showed that the Bio-SA selling price, total capital investment, and seaweed price are the most critical economic parameters for the economic feasibility of the process. • Novel design for the commercialization of macroalgal biorefinery is developed. • Techno-economic, uncertainty, and life cycle assessments are performed. • Integrated design achieved minimum ethanol selling price of USD 0.35/L. • Minimum environmental impact is calculated for the integrated design. • Process integrations are essential for the sustainability of macroalgal biorefinery. [ABSTRACT FROM AUTHOR]

Nanocellulose is a promising biopolymer compound which is produced from pulp. However, the traditional approaches do not produce it in an energy efficient and sustainable way. The production of nanocellulose through moderate refining and froth flotation has the potential to reduce the traditional nanocellulose production cost. This technoeconomic analysis explores the financial profitability of using moderate refining followed by enhanced froth flotation technology at pilot scale (best case scenario) to produce nanocellulose in an affordable and sustainable way. With a 100% nanocellulose yield, the yearly the operational cost was $7312 AUD/ton nanocellulose for the best-case scenario. The 25-year NPV coming from discounted cumulative cash flow rate for best case scenario is approximately 9.5 million AUD (profit). From the sensitivity analysis it was revealed that the key driver behind profitability of nanocellulose production is Capital Cost and Labour cost. Lastly four different case scenarios are explored to examine the economic viability for commercial scale nanocellulose production. For a similar level of nanocellulose pulp quality development, there is an energy savings of approximately 5000 kWh/t (aspect ratio), 2000 kWh/t (fines) and 15,000 kWh/t (volumetric specific surface) in moderate refining combined with enhanced flotation at bench scale, when compared with extensive refining stand alone. There is minimal or no energy savings when flotation is used at a laboratory scale. Technoeconomic assessment for nanocellulose production at pilot scale was evaluated and compared with that of bench scale and it was revealed that moderate refining followed with flotation at pilot scale is most economical. The high ROI of 175.3% and NPV of $9.5 million for moderate refining along with flotation at pilot scale demonstrates flotation technology is worth investing for nanocellulose production at pilot scale. [Display omitted] • Bench vs pilot scale comparison for nanocellulose production. • Harnessing the energy saving and financial profitability of flotation technology. • Capital expenditure and Labour Operating cost are major economic factors. • Enhanced bench scale flotation is energy efficient. [ABSTRACT FROM AUTHOR]

This study is a design of an alternative real value hybrid model for the valuation of reversionary leasehold investment properties characterized by divergence in the revision period of sub-rent and head rent respectively. The development of this model commenced with a synthesis of inputs for the modified rational- and real value hybrid models, and the derivation of an equivalent cash flow multiplier for terminal investments. With exception of the generic real value model, term incomes across all other contemporary models including the alternative real value hybrid model were discounted using the equated yield. The discounted reversionary cash flows in the valuation template associated with the alternative real value hybrid model appears identical to that in the generic real value model, while exhibiting itself as a surrogate reversionary income multiplier for the modified rational, and the real value/short-cut DCF models respectively. The alternative real value hybrid model was validated as capable of producing valuations that are identical to those churned out from all the existing contemporary models for the valuation of this category of reversionary leasehold investment property. The study is a novel attempt towards redesigning the modified rational model of leasehold investment property valuation and according it a real value perspective. [ABSTRACT FROM AUTHOR]

We report a strategy for production of 5-nonanone which is a bio-based platform chemical that can be produced in large quantity from a variety of lignocellulosic biomass sources. In this strategy, the cellulose and hemicellulose fractions of lignocellulosic biomass are catalytically converted to γ -valerolactone (GVL) using the biomass derived GVL as a solvent. To generate the integrated strategy, we develop separation subsystems to achieve high purity of product. Importantly, GVL can be upgraded to 5-nonanone with high yield in a single reactor using a dual catalyst bed of Pd/Nb 2 O 5 plus ceria-zirconia. We design a heat exchanger network to satisfy the total energy requirements of the integrated process via combusting lignin fraction of biomass. Economic feasibility of the process is investigated using discounted cash flow analysis. • Cellulose and hemicellulose are catalytically converted to γ -valerolactone (GVL). • GVL is catalytically upgraded to 5-nonanone without formation of pentanoic acid. • Lignin fraction of lignocellulosic biomass is used to generate heat and power. • Discounted cash flow analysis is used to determine the minimum selling price (MSP). • Sensitivity analysis is conducted for key economic and process parameters. [ABSTRACT FROM AUTHOR]

A large-scale hydrogen supply chain is an alternative for the transportation of energy generated from a renewable energy source. Utilizing this technology would drastically improve the generation of clean energy. Therefore, an analysis method to estimate the economic and environmental benefits of the introduction of a hydrogen supply chain using an existing pipeline is developed. The proposed method first estimates the energy and exergy flows in the system to calculate the overall efficiency of these quantities. Afterward, the payback period is estimated based on the overall energy efficiency using the discounted cash flow (DCF) method. The overall efficiency of the system, based on the energy analysis presented, would seem to be the final delivered electrical, fuel and useable heat energy delivered to end use divided by the input solar and wind energy. Furthermore, the environmental effects due to the introduction of the systems are evaluated considering the reduction of global warming and air pollution gases, such as CO 2 and PM2.5. The proposed analysis method was applied considering a natural gas pipeline that connects Qinghai and Shanghai. As a result, conversion ratios of 24.9% for electricity and 17.5% for heat were achieved, with the overall efficiency of the system of 42.4% based on the electricity obtained from photovoltaics. 3.02 Gt of CO 2 , 104 kt of SO x , and 134 kt of NO x , which represent 3.3%, 0.5%, and 0.6% of the annual discharge in China, respectively, and 8.66 kt of PM2.5 would be reduced every year. Furthermore, a reduction of 953 Mt in coal consumption is expected. The payback period of the proposed system using the DCF method is 4.17 and 2.28 years for the two alternatives evaluated in this work. The cash flow of the DCF is influenced by installation cost and operation cost of equipment. • Introductory method of a hydrogen supply chain using gas pipeline was shown. • Economic and environmental benefits were clarified from the energy flow. • Potentiality of a large-scale clean energy using hydrogen was suggested. • Gas pipeline currently installed between Qinghai and Shanghai was analyzed. [ABSTRACT FROM AUTHOR]

The Loss Period If the plaintiff is able to demonstrate that lost profits are actually available under the contract, it will typically then have to establish the applicable duration for which lost profits are recoverable. [140] Based upon the court's evaluation of the Cajun Joe's brand, it declined to permit the franchisee to collect lost future profits because the brand was a brand new fast-food franchise without a history of losses or profits and, thus, subject to the new business rule. The court further found that, even if the new business rule had not precluded the plaintiff's theory of lost profits, the plaintiff failed to offer sufficient evidence to establish the reasonable degree of certainty necessary to obtain future lost profits. Contractual lost-profits-damages disclaimers are generally enforceable.[147] When constructing a lost-profits disclaimer, it is important to understand that lost profits can be considered as either direct or consequential damages. & Rock Island R.R. Co. v. Ward, 16 Ill. 522, 530-31 (1855) (finding that farmer could recover lost profits where railroad breached covenant to maintain fence); Bridges v. Stickney, 38 Me. 361, 368 (1854) (allowing recovery of direct damages but not consequential damages); Simmons v. Brown, 5 R.I. 299, 302-03 (1858) (relying on Masterton to allow a mill owner to recover lost profits where defendant's damn reduced water flow at the mill); Hoy v. Gronoble, 34 Pa. 9, 10-11 (1859) (enabling sharecropper to recover profits lost when landowner breached oral contract); Hinckley v. Beckwith, 13 Wis. 31, 35 (1860) (holding that the lost profits of sawmill were recoverable). [Extracted from the article]

The theoretical background of RIM (residual income model) has been present in the literature since the first half of the 20th century, however, in terms of practical applications, it could never become a real alternative of the DCF (discounted cash flow) model. In the last decades, RIM has gained attention again owing to the international studies investigating its explanatory power on stock prices compared to DCF, but the empirical results were mixed. This study aims to extend the literature with further empirical findings, which may support the better understanding of the usefulness of RIM and the DCF model, and help investors increase the efficiency of stock valuations. Based on an owncollected panel consisting of 34 global companies' data for the 2013-2019 period, the authors show that RIM can outperform the traditional DCF model, but its explanatory power lags behind that of DCF's smoothed version that handles the distortions originating from the timing differences between earnings and cash flows. It is also found that application of a growth period in cash flow forecasts is questionable as the authors' independent variables computed with the perpetual annuity model perform much better in explaining stock prices than the independent variables determined based on the two-stage model containing an explicit growth period. [ABSTRACT FROM AUTHOR]

Vendor managed inventory (VMI) is a concept of supply chain in which a vendor (supplier or manufacturer) has the charge for optimizing the inventory held by a buyer (or retailer). In traditional VMI modelling, it is often assumed that the vendor offers cash on delivery payment terms to the buyer. But in real world the vendors usually offer different types of payment policies to promote their commodities and influence the buyers ordering policies. Some of the common payment policies are cash on delivery, cash before delivery (advance payment), delayed payment (trade credit) etc. In the present paper mathematical model is developed for VMI system by comparing two payment policies between vendor and buyer. In policy (I) buyer pays for an items as soon as he receives it from the vendor, i.e. CASH ON DELIVERY and in policy (II) buyer pays for an item at the time of placing an order, i.e. CASH BEFORE DELIVERY. Discounted cash flow (DCF) approach has been used for proper recognition of cash flows. Numerical illustrations and sensitivity analysis are performed between two payment policies and it is shown that VMI system is beneficial for both vendor and buyer under both payment policies and policy II is better than policy I for both VMI system and non VMI system. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to provide evidence about the role of the geography on agri-food firms' valuations. The goal is to test clusters and agglomeration effects on the SMEs valuations. Design/methodology/approach: The authors propose an empirical test applying a spatial regression analysis on a sample constitute by 306 agri-food SMEs located in two municipalities with different economic characteristics: Murcia and Madrid. In addition, the authors applied the discounted cash flow model in order to estimate the SMEs' economic value. Findings: The findings show the importance of the geography variables on the SMEs' performances highlights interesting differences between territories. In particular, the results confirm that the geographical proximity between agri-food firms and between them and external agents is significant on firms' valuations. The agglomeration effects are verified in both municipality but the density variable present a negative non-linear effect confirming previous studies which indicates that the existence of a large number of firms 05 rise competition, decreasing the economic opportunities of these companies. Originality/value: This study gives interesting insights to policymakers, researchers and practitioners concerning the importance of the relationships among agents, also favoured by a developed infrastructures system in a fully connected environment. [ABSTRACT FROM AUTHOR]

Ethanol is a material that has a high demand from different industries such as fuel, beverages, and other industrial applications. Commonly, ethanol has been produced from yeast fermentation using sugar crops as a feedstock. However, food waste (FW) was found to be one of the promising resources to produce ethanol because it contained a higher amount of glucose. Generally, column distillation has been used to separate ethanol from the fermentation broth, but this operation is considered an energy-intensive process. On the contrary, membrane distillation is expected to be more practical and cost-effective because of its lower energy requirement. Therefore, this study aims to make a comparison of economic performance on FW fermentation with membrane distillation and a conventional distillation system using techno-economy analysis (TEA) method. A commercial-scale FW fermentation plant was modeled using SuperPro Designer V9.0 Modeling. Discounted cash flow analysis was employed to determine ethanol minimum selling price (MSP) for both distillation systems at 10% of the internal rate of return. Results from this analysis showed that membrane distillation has a higher MSP than a conventional process, $6.24 and $2.41 per gallon ($1.65 and $0.64 per liter) respectively. Hence, this study found that membrane distillation is not economical to be implemented in commercial-scale ethanol production. [ABSTRACT FROM AUTHOR]

Green ammonia production is facing increasing interest on a global scale as a hydrogen carrier for power generation as well as fertilizer for food production. The conventional Haber-Bosch method for ammonia synthesis is energy demanding, requires high purity hydrogen, and is based on fossil fuels. A preliminary techno-economic model for electrochemical ammonia synthesis at near ambient pressure using feed rates of 32 metric ton/day for hydrogen and 135 metric ton/day for nitrogen is presented in this study. Various pathways using different methods for nitrogen generation and hydrogen production were investigated to gain insight into added energy savings per metric ton of ammonia. Electrochemical synthesis using electrolysis for hydrogen and cryogenic nitrogen was found to be a potentially viable pathway for green ammonia. The profitability metrics including discounted cash flow rate of return, net present value and discounted payback period were estimated to be 8%, $40 MM, and 4–6 years respectively for this pathway. The cost of electricity, conversion rate, and conversion efficiency dominate the tonnage cost of ammonia and were used to assess the feasibility of the model. A life cycle assessment was also conducted to assess the environmental impact of a well to product ammonia process. • Integrated electrochemical ammonia systems with renewable intermittent sources has. linear scalability advantages. • Energy consumption of at least 17 MWh per metric ton for electrochemical ammonia. • Number of modules decreases with current density. • Specific energy decreases as the production rate increases. [ABSTRACT FROM AUTHOR]

Rationale for selection and calculation of the optimal system for the development of the Pechora Sea oil field is an extremely difficult scientific-technical task. Severe climate conditions of the Arctic region, ice cover, well stock formation limits, slow rates of drilling for offshore oil fields, and remoteness from supply bases multiply the cost of projects and create significant difficulties in engineering design the field development system. To solve these problems, one needs to use highly efficient technologies for offshore oil fields development, which will ensure intensive oil production, thus obtaining significant revenues to pay off the expenses. The purpose of this work is to provide the basis for selection as well as calculate the optimum development system for an oil field in the eastern part of the Pechora Sea. The solution of the tasks was carried out on the basis of the features identified in the development of Arctic offshore oil fields, the analysis of geological and physical data on the oil field, a set of theoretical, analytical works, and mathematical modeling. Mathematical modeling was performed using standard and adapted methods for calculating oil field development systems. Based on the data received, it was concluded that it is the linear system of horizontal wells, which is optimal for the field development. Horizontal wells critical and initial flow rate and basic technical indicators have been calculated versus time. The estimation of the discounted cash flow and the discounted profit index has demonstrated that the investment project can be initiated. Since the oil field is now under supplementary exploration, the data obtained in the research can be applied for designing the oil field development system as soon as its industrial exploitation is approved. [ABSTRACT FROM AUTHOR]

The study aims to explore the role of the real options practices to an appraisal of capital investment decisions. We deployed the Binary logistic regression technique to test the hypotheses of the study. For the binary model, two equations were developed having two dependent variables, first the use of real options, and the second the real options familiarity. The independent variables of the study were the annual capital budget, Capex time, Net profit margin, and R&D. The finding showed listed companies relied on discounted cash flow techniques (DCF). A very few were practising real options only for supplement and to support results from other methods. The real options require too much sophistication and lack of top management support is the major reason for not using real options. The use of real options having a significant relation to the Annual Capital Budget, Net Profit Margin, and R & D, Capex time. Real options Familiarity having a significant relationship with Net Profit Margin and R & D and insignificant with Annual Capital Budget. DCF method is rigid and cannot incorporate the uncertain future and upcoming opportunities. Corporate and academia are suggested to concentrate on real options practised to make the right decision for the corporate, industry, and country progress. [ABSTRACT FROM AUTHOR]

The article examines challenges faced by law practitioners while considering the subject industry when applying the income approach in a family law context. Topics discussed include use of discounted cash flow (DCF) method while valuing any business with the income approach; estimation/projection of future income; and role of the subject industry within the income approach.

Irrefutably, energy transition has recently gathered momentum thanks to the Paris Agreement and renewable energy (RE) falling costs. However, unlocking the full socio-economic potential of energy transition requires encouraging Foreign Direct Investment (FDI) in developing countries where energy demand and the risk of stranded assets are growing. Encouraging FDI in developing countries necessitates addressing two highly controversial issues: measuring political risk and carrying out proper valuation of long-term RE investments. In this regard, current paper investigates the rationale behind classic risk-adjusted discount rate (RADR) approach. It finds that since RADR requires heuristics, it may lead to misrepresentation of real worth of RE projects in developing countries. Addressing this issue, the paper offers a hybrid method based on risk pricing which can incorporate political risk into valuation straightforwardly. The hybrid method is applied to a photovoltaic case in Iran. Surprisingly, while the analysis based on classic RADR approach indicates that the investment is not financially viable, the hybrid analysis demonstrates attractive return on the investment. This can contribute to unlocking a considerable annual amount of 270 TWh solar power in Iran. The empirical study also shows that the suitable rate to discount RE investments in Iran is 10.22%. • Foreign Direct Investment can create a game-changing shift in energy market. • Risks should be reflected in cash flow instead of discount rate. • Sovereign spread is not a good proxy for political risk. • An alternative approach to value renewable energy investments is proposed. • The method can unlock investment in renewables in developing counties. [ABSTRACT FROM AUTHOR]

One of the main barriers to the development of energy efficiency (EE) projects in Brazil is the decision-makers' lack of knowledge about the risks of the projects. The Brazilian Government's Procedures of Energy Efficiency Program (PROPEE) is currently one of the main sources of funding for energy efficiency (EE) projects. The method for evaluating the technical and economic feasibility of projects presented in PROPEE applies the traditional discounted cash flow (DCF) methodology to calculate the net present value (NPV). The energy price used in this model is a fixed value calculated through the postponement of investments (cost of avoided demand) and/or reduction of operating expenses (avoided energy cost). The avoided costs for a given voltage level are incurred throughout the power system, upstream of the consumption unit (view of the electrical system's operator). The PROPEE's methodology, applied on a large scale in Brazil, does not consider some technical uncertainties present in EE projects, nor the market uncertainty regarding the fluctuation of the energy price paid by the consumer units. This paper evaluates the investment risk of EE projects (consumer's perspective) adopted by the Brazilian market, taking as example a large electricity consumer. A methodology is proposed, which, considering the technical and economic uncertainties, performs a more comprehensive and realistic analysis of the complex business scenario involving the EE projects. This case study considered the data collected by a team of independent engineers, for the first time in January 2009 and updated in January 2015, to assess the energy efficiency potential of a commercial consumer unit installed in the city of Rio de Janeiro and connected to the grid of local distribution level voltage 13.8 kV. This study demonstrates a model that made the risk management projects viable in energy efficiency demand-side management (DSM). However, it could also be applied in other markets as well. Understanding how the uncertainties affect decision-making in EE projects is essential for developing a more comprehensive outlook on constructive and regulatory perspective, contributing to the promotion of energy efficiency projects. [ABSTRACT FROM AUTHOR]

The inability of existing analytical models to accurately predict future events has, at times, led to the economic failure of mining operations whose financial viabilities were determined based on static assumptions, leaving operational managers with little room to make future decisions. Therefore, the application of a robust decision-making tool, such as Real Options (RO) can minimise losses and more accurately express uncertainty. This paper has considered a stochastic simulation to analyse ROs for a real case iron ore mine, which closed in April 2016. In comparing the net present value from the traditional discounted cash flow (DCF) method to delay, to abandon the operations and to stage the investment options, the ROs method increased the project value by between 56% and 195% depending on the volatility. As a new contribution, a managerial flexibility domain map is proposed in this paper. Thus, flexibility in mining operations creates agility, increases value and mitigates financial losses. [ABSTRACT FROM AUTHOR]

Stochastic optimisation provides a framework that is capable of generating a strategic life-of-mine production schedule that increases net present value while simultaneously reducing the risk associated with geological uncertainty. This paper focuses on the application of the stochastic strategic mine planning for technical risk management in the KéMag iron ore deposit in Quebec, Canada, demonstrating the key steps of the framework. The approach first quantifies both the volumetric and multi-element grade uncertainty of the deposit by generating a set of equally probable scenarios of the orebody. In this case study, the boundaries of the lithologies (volumetric uncertainty) defining the KéMag iron ore deposit are generated using a pattern-based wavelet simulation algorithm. The pertinent grade properties, namely, head iron, Davis Tube weight recovery, Davis Tube concentrate iron and silica content (multi-element grade uncertainty) are jointly simulated using the direct block minimum/maximum autocorrelation factors algorithm. Subsequently, the simulated scenarios of the iron deposit serve as an input to a life-of-mine stochastic integer programming production-scheduling model. The latter stochastic optimisation model is employed to manage and minimize the risk associated with the geological uncertainty of the deposit in terms of meeting production targets while generating a mining sequence of extraction maximising the net present value. The results of the case study quantify the risk associated with the product's silica content, total iron production and expected discounted annual cash flows. [ABSTRACT FROM AUTHOR]

Summary: The aviation industry continues to grow, and consequently, more fuel is needed. With the intention of decarbonising the aviation sector, sustainable routes that have the potential to mitigate emissions, such as biomass fast pyrolysis, can positively contribute to this direction. Within this context, the present study performs a comparative techno‐economic evaluation of aviation biofuel manufacture via the main bio‐oil upgrading pathways, namely, hydroprocessing (HP), gasification followed by Fischer‐Tropsch synthesis (G+FT), and zeolite cracking (ZC). The research constitutes the first endeavour to investigate and compare the feasibility of producing biojet fuel via pyrolysis‐based routes. The presented work provides an inclusive evaluation that comprises process modelling and financial assessment. Based on the simulations, overall energy efficiencies of 48.8%, 45.73%, and 45.38% and jet fuel energy efficiencies of 23.70%, 21.45%, and 20.53% were calculated, while the implementation of a discounted cash flow analysis estimated minimum jet fuel selling prices (MJSPs) of 1.98, 2.32, and 2.21 $/L for the HP, the G+FT, and the ZC, respectively. Sensitivity analysis revealed that the processes are capital and feedstock intensive while an increase to the bio‐oil yield will favour the economic performance of the examined biorefineries. An increase of the plant size from 100 (base case) to 150 dry tonnes per hour of feedstock will decrease the selling prices by approximately 25% for all cases. Monte Carlo simulations exhibited that without establishing and/or maintaining appropriate policy schemes, there is no pragmatic prospect for the examined biorefineries to beat the competition against the prevailing oil infrastructures. [ABSTRACT FROM AUTHOR]

The financial valuation of a drug that is still under development is required for various purposes. The risk-adjusted net present value (r-NPV) method, which recently emerged in the biotech industry, uses the development attrition rate as a discount factor to reflect risk during each development phase. The r-NPV method was developed to overcome the disadvantages of the prevailing discounted cash flow and real options methods and considers drug type, as well as the stage of development in its approach. Using this method, the current study examines technology values in the biopharmaceutical industry and matches the clinical development periods and success rates of these new drugs by analyzing datasets from ClinicalTrials.gov and MedTrack DB. It thus provides support for an empirical valuation model for experts in the field. Notably, there is limited research on the attrition rate and development period of new substance drugs and the research results are not consistently presented. In addition to new substance drugs, further research is necessary to deepen understanding of the attrition rate and development period of biologically-based drugs because of their inherent physical and developmental differences. Similarly, research on performance specifics within drug class models would enable refinement of the model. [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]

With increasing environmental concerns with respect to the petroleum-based adhesive production process, bio-based adhesive has been explored as a promising replacement. The purpose of this paper was to explore the economic feasibility of structural bio-adhesives made from glycerol, a byproduct of biodiesel production. SuperPro Designer software was employed to perform the techno-economic analysis. Several key parameters were analyzed, such as total capital investment, annual operating costs and revenues. It was found that the unit production cost of structural bio-adhesives ($2.45/kg) was compatible with that in the current market. Three different scenarios were built to investigate the worst-case scenario and the best-case scenario associated with this production process. Sensitivity analysis was also performed to evaluate the key parameters significantly influencing the economic result. In this study, material cost was determined to be the most significant factor throughout the production process. Discounted cash flow analysis was conducted to explore the influence of the time value of money. The minimum selling price obtained was $3.11/kg for this bioadhesive production process. Underlying issues and areas needed for improvement were also discussed in this study. Image 10624 • A techno-economic analysis was conducted on glycerol-based structural bioadhesive. • Material cost was determined as the most sensitive parameter in the process. • Minimum selling price of the structural bioadhesive was determined to be $3.11/kg. [ABSTRACT FROM AUTHOR]

The reliability of power systems, in terms of uninterrupted electricity supplies, is dependent on the reliability of the system's elements, especially the generation sources and transmission lines. The reliability of a coal-fired power unit's operation is essentially affected by the unit's main components, i.e. the turbine, the boiler and the generator. According to the statistics, the boiler is the most failure-prone element of the power unit. Therefore, efforts aimed at improving the reliability must include actions that enable early diagnostics of the state of the individual devices. In this paper it has been proposed that the optimal time to perform diagnostic testing of boiler tubes should be determined using risk analysis. Using the net present value (NPV) discounted cash flow index and the avoided risk criterion, a procedure has been put forward that optimizes the time when diagnostic tests should be carried out. The method has been applied to optimize diagnostic testing of boiler tubes, where corrosion is the principal cause of damage. Methods have also been given to determine the probability of the failure of such elements. • Maintenance planning based on criteria of avoided risk value and NPV index. • Optimization of periods of performing diagnostic tests. • Evaluation of the risk of corrosion damage to boiler tubes. [ABSTRACT FROM AUTHOR]

Highlights • An integrated process design of renewable liquid fuels production from wastewater by HTL was developed. • Techno-economic analysis was performed to assess the economic feasibility of the proposed design. • A minimum selling price (MSP) of renewable liquid fuels is found as $4.3/GGE. • The MSP value is in line with the literature range. Abstract In this work, a conceptual process design of wastewater-based algal biofuels production through hydrothermal liquefaction and hydroprocessing is proposed. Then a steady-state process simulation is performed to calculate the mass and energy analysis of the whole process for the production of hydrocarbons such as diesel, jet, gasoline, and H 2. A discounted cash flow analysis is used to calculate a minimum selling price (MSP) of the hydrocarbon fuels. The MSP of the hydrocarbon fuels is found at US$4.3/GGE. This value is comparable with the previously reported value in the literature. In addition, the sensitivity study is carried out to study the influence of both processes and economic parameters on the minimum selling price (MSP) of the hydrocarbon fuels. [ABSTRACT FROM AUTHOR]

Because of the value of time, investors are interested in obtaining economic benefits rather early and at a highest return. But some investing opportunities, e.g. mineral projects, require from an investor to freeze their capital for several years. In exchange for this, they expect adequate remuneration for waiting, uncertainty and possible opportunities lost. This compensation is reflected in the level of interest rate they demand. Commonly used approach of project evaluation -- the discounted cash flow analysis -- uses this interest rate to determine present value of future cash flows. Mining investors should worry about project's cash flows with greater assiduousness -- especially about those arising in first years of the project lifetime. Having regard to the mining industry, this technique views a mineral deposit as complete production project where the base sources of uncertainty are future levels of economic-financial and technical parameters. Some of them are more risky than others -- this paper tries to split apart and weigh their importance by the example of Polish hard coal projects at the feasibility study. The work has been performed with the sensitivity analysis of the internal rate of return. Calculations were made using the 'bare bones' assumption (on all the equity basis, constant money, after tax, flat price and constant operating costs), which creates a good reference and starting point for comparing other investment alternatives and for future investigations. The first part introduces with the discounting issue; in the following sections the paper presents data and methods used for spinning off risk components from the feasibility-stage discount rate and, in the end, some recommendations are presented. [ABSTRACT FROM AUTHOR]

The present study aims to develop a risk model to analyse offshore wind projects based on operational and macroeconomic data. The study investigates the underlying parameters defining the project-specific risk premium attached to an offshore wind project. These parameters are modelled as stochastic variables, and a probabilistic financial analysis is conducted using Monte Carlo Simulation. To calculate an interest rate based on operational characteristics, the present study assumes that two net present value equations yielding the same result can be written where certainty equivalent cash flows discounted at the risk-free rate and b) expected cash flows discounted at the cost of capital. The project-related risk is then estimated by solving the resulting equation for the unknown cost of capital. The macroeconomic factors are also considered as they impact the uncertainty associated with revenue and operating expenditure. The model developed to calculate the cost of capital is validated by comparing it with the data obtained for publicly traded renewable energy companies worldwide. Finally, the developed model is demonstrated for a fictitious ageing offshore wind farm under different economic circumstances. The parametric study is conducted on the effect of critical project-specific parameters such as the number of offshore wind turbines, the life extension duration, and the degree of uncertainty related to cash flows. • A novel risk model was developed to evaluate the financial viability of offshore wind farms. • The uncertainties associated with the operation and macroeconomic factors were taken into consideration. • Monte Carlo Simulation was employed to perform the probabilistic financial analysis. • The developed model was illustrated considering a fictitious offshore wind farm under different economic circumstances. • The effect of offshore wind farm size, lifespan, and level of uncertainty related to cash flows are investigated. [ABSTRACT FROM AUTHOR]

[Display omitted] • Integrated strategy was developed for production of 2,3-butanediol and adipic acid. • Minimum selling price (MSP) of 2,3-butanediol was estimated to be US$1,292/ton. • Feedstock price and production rate have significant influence on MSP. • Lignin upgradation strategy was economical but not greener compared to base case. Development of biorefineries is the need of the hour considering the heavy reliance on fossil reserves for production of bulk/specialty chemicals, solvents etc. In this manuscript, an integrated process has been developed for co-production of 2,3-butanediol (BDO) and adipic acid from white birch. To develop energy efficient process, heat integration was conducted through pinch analysis which led to 87% reduction in heating energy requirement. Further, economic and environmental analyses were performed using discounted cash flow analysis and life cycle assessment (LCA). Minimum selling price (MSP) of 2,3-BDO was estimated to be US$1,292/ton while environmental impact of the proposed production route was estimated to be 0.97 kg CO 2 eq. and 0.35 kg oil eq./kg 2,3-BDO. Sensitivity analysis was conducted and it was observed that feedstock price and production rate are the most influential. The integrative analyses as studied in this work will be helpful for development of sustainable biorefineries. [ABSTRACT FROM AUTHOR]

The consumption of fossil fuels, which are not economically and environmentally sustainable, can be reduced by producing biofuels, such as bioethanol. This study presents a reproducible model of the ethanol production process developed with Aspen Plus® software. The work's goal is to enhance the amount of ethanol produced per tonne of biomass and, therefore, the carbon yield of the process. The main steps of the process are the gasification of the pretreated switchgrass, the cleaning of the syngas obtained, the fermentation of the syngas to ethanol and its purification. The parameters relating to gasification were set to produce syngas with an optimal composition for the fermenter. A discounted cash flow analysis was used to determine the minimum ethanol selling price for different plant scales and H 2 prices. By enriching the syngas with green H 2 and adopting an optimal bioreactor, a remarkable ethanol yield of 1015.04 L/t of switchgrass can be obtained. Considering a plant size of 750,000 t/y of switchgrass, the minimum ethanol selling price is 1.07 $/L for the base scenario and is further lowered to 0.77 $/L for the 2050 H 2 scenario. The potential savings of building more plants were also assessed thanks to the learning effects. [Display omitted] • Gasification set to produce an optimal syngas composition for the fermenter. • Considerable ethanol yield of 1015.04 L/t switchgrass. • Adding green hydrogen to the syngas increase the process carbon yield of 23%. • Minimum ethanol selling price of 1.07 $/L processing 750000 t/y of switchgrass. • Reduction of almost 30% of the ethanol price considering 2050 green H 2 scenario. [ABSTRACT FROM AUTHOR]

The aim of this paper is to summarize exhaustively and concisely, the different methodologies for estimating the volatility that has been proposed for the real options approach (ROA), and also provide a theoretical and practical explanation for estimating an unbiased volatility and unconditional for this methodology. The results of the research suggest that the use of the current methods generates a marked overestimation of the volatility, which is ultimately transmitted in the overvaluation of the real option. In this way, the application of the unbiased estimation method is used to determine its impact on decision-making for a real project in the oil and gas sector in Colombia, in which its strategic value was estimated through the use of real options, and it was compared with the static result obtained by the method of discounted cash flows (DCF); as a result it was found that, it is generated an additional value not perceived by the traditional methodology, that is consistent with the respective volatility that was generated by the commodity. It is proposed that for future research, unbiasedness condition is maintained, but that the estimate is conditional through econometric models, in order to emulate the irregularities and empirical characteristics presented in the financial series using, for example, an appropriate system of stochastic differential equations, as required condition for the performance of price, and the volatility of the underlying asset. [ABSTRACT FROM AUTHOR]

Utilizing lignin feedstock along with cellulosic ethanol for the production of high‐energy‐density jet fuel offers a significant opportunity to enhance the overall operation efficiency, carbon conversion efficiency, economic viability, and sustainability of biofuel and chemical production. A patented catalytic process to produce lignin‐substructure‐based hydrocarbons in the jet‐fuel range from lignin was developed. Comprehensive techno‐economic analysis of this process was conducted through process simulation in this study. The discounted cash flow rate of return (DCFROR) method was used to evaluate a 2000 dry metric ton/day lignocellulosic ethanol biorefinery with the co‐production of lignin jet fuel. The minimum selling price of lignin jet fuel at a 10% discount rate was estimated to be in the range of $6.35–$1.76/gal depending on the lignin and conversion rate and capacity. With a production capacity of 1.5–16.6 million gallon jet fuel per year, capital costs ranged from $38.0 to $39.4 million. On the whole, the co‐production of jet fuel from lignin improved the overall economic viability of an integrated biorefinery process for corn ethanol production by raising co‐product revenue from jet fuels. © 2018 Society of Chemical Industry and John Wiley & Sons, Ltd [ABSTRACT FROM AUTHOR]

Abstract Promising growing conditions and favorable renewable energy policies make the western U.S. a potentially suitable region for dedicated woody biomass (DWB) plantations for energy generation. To support the regional development of biomass and biofuels markets, the USDA awarded an AFRI grant to the Advanced Hardwood Biofuels (AHB) Northwest project. As part of the AHB project, GreenWood Resources ("GWR") - a globally diversified timberland investment management company with over 20 years of specialized experience in high-yield, intensive plantation management - installed and managed hybrid poplar DWB plantations at four demonstration sites: Clarksburg, CA; Hayden, ID; Jefferson, OR; and Pilchuck, WA. GWR developed a discounted cash flow ("DCF") investment model based on the AHB project results and plantation management experience across this range of growing and market conditions. The model estimates financial returns and tests the sensitivity of returns to changes in key variables. These results inform directions for future research and challenges for commercial production of DWB. Results indicate that current market pricing for forest biomass in the western U.S. - approximately USD 46/BDMT - produces negative financial returns from DWB plantation investment on all four sites. To produce positive returns at all four sites requires biomass assumptions that are well above the current market (USD 121/BDMT). With this price assumption, plantation investment returns average 8.62% in real, inflation-adjusted terms across all sites, but this biomass price level may make conversion into transportation fuels uneconomic under current fuel prices and policies. Financial returns to DWB investments are most sensitive to changes in price, yield, and land costs. Given current economic conditions and plantation technology, the development of a large-scale DWB plantation base in the western U.S. is unlikely to attract private sector capital without some combination of a material increase in the biomass price, strong policy support, or a dramatic improvement in plantation yields. Highlights • Current pricing for biomass in western U.S. produces negative financial returns. • Biomass investments are unlikely to attract private-sector capital. • Returns are most sensitive to assumptions related to prices, yields, and land costs. • Increase in price or dramatic improvement in yields may change the present situation. [ABSTRACT FROM AUTHOR]

The paper proposes a new methodology for evaluating the market value of firms (QuIC - Quantitative Intellectual Capital-based methodology for Firm Valuation) that considers Intellectual Capital (IC) as an important factor that can influence the overall value. Findings show that this approach gives a more fair evaluation able of taking account of the "hidden" value that could remain unconsidered when applying "traditional" valuation approaches. In fact, findings demonstrated that, from a financial standpoint, the difference between DCF and QuIC evaluation can be recognised as the worth of intellectual capital assets. [ABSTRACT FROM AUTHOR]

Highlights • We analyze the economic value of a U.S windfarm using long-term LCOE information. • Long-term LCOE of wind energy is obtained from two decades of history. • Monte Carlo and Risk-Neutral valuation is used to valuate a reference windfarm. • Managerial flexibilities and generation cost uncertainty make windfarms more valuable. • Real Option accounts for the flexibility of decision-making with stochastic costs. Abstract Renewable energies are a natural replacement for conventional or fossil fuel energy generation. One of these sources, wind energy, has exhibited significant cost reductions during the last decades. Even though this historical cost reduction trend is well known in the industry and in the academia, information on this cost trend and volatility has been scarcely incorporated in previous works, thus a natural concern arises when assessing their influence on the economic valuation of wind farms. Moreover, wind projects are modular in size and have a short time-to-market, providing a valuable managerial flexibility to defer investment under non-attractive market conditions, such as high development cost scenarios. Traditional evaluation tools often consider those scenarios, wrongly assuming that wind-developers would move forward with the project under such conditions. Accordingly, this paper analyzes the effect of incorporating both generation cost history and investment flexibility in the valuation of wind farms in the United States using Real Options methodology. Taking two decades of cost data and a reference wind farm, this "uncertainty-flexibility" effect is incorporated and valued, finding that the value of the wind project is 14.2% larger than the one neglecting such effect – where cost stochasticity and managerial flexibility are ignored. Therefore, traditional tools for project valuation, such as discounted cash flow and scenario analysis can no longer solely be used, as they do not properly account for the cost reduction trend, uncertainty, and managerial flexibility that a wind farm could face. [ABSTRACT FROM AUTHOR]

Highlights • Techno-economic of a polygeneration for power and DME plant is proposed. • The integration resulted in a production of 103 MW and 2.15 kg/s of DME. • The layout has an energetic and exergetic efficiency of 50% and 44%. • The most expensive equipment resulted in the ASU which accounts for 23%. • Plant produces power & DME at $50/MWh and $18/GJ at carbon tax of $80/tonne of CO 2. Abstract In this paper, we present a novel polygeneration plant with carbon capture for the combined power and dimethyl ether (DME) production. The plant layout integrates a chemical looping CO 2 /H 2 O splitting (CL) unit producing syngas (CO and H 2) for the DME synthesis using the exhaust gases of an oxyfuel power cycle. The primary power is generated by oxy-combustion of syngas generated by the reduction of the metal oxide in the reduction unit of the CL redox cycle with incoming natural gas. The oxyfuel power plant also generates steam for combined power production with two streams Rankine cycles. The aim of the present work is to assess the process on the basis of energy and exergetic efficiency and economic performance of the integrated CL unit for combined power and DME production. The integration proposed resulted in a production of 103 MW e and 185.6 ton/day (2.15 kg/s) of DME. The corresponding energy and exergetic efficiency was 50.2% and 45%, respectively. A discounted cash flow analysis was performed to evaluate the profitability of the process. With a carbon credit of $80/tonne, the plant would be able to meet the current electricity with carbon capture and DME prices of $50/MWh and $18/GJ respectively. The economic analysis provided information on the main economic drivers associated with the high capital investment in the process plant with individual sub-systems. The analysis highlighted the strong potential of integrating chemical looping CO 2 /H 2 O splitting for syngas production into polygeneration systems to increase the overall efficiency while reducing the cost of carbon capture. [ABSTRACT FROM AUTHOR]

Abstract One of the main challenges associated with utilisation of the renewable energy is the need for energy storage to handle its intermittent nature. Power-to-Gas (PtG) represents a promising option to foster the conversion of renewable electricity into energy carriers that may attend electrical, thermal, or mechanical needs on-demand. This work aimed to incorporate a stochastic approach (Artificial Neural Network combined with Monte Carlo simulations) into the thermodynamic and economic analysis of the PtG process hybridized with an oxy-fuel boiler (modelled in Aspen Plus®). Such approach generated probability density curves for the key techno-economic performance indicators of the PtG process. Results showed that the mean utilisation of electricity from RES, accounting for the chemical energy in SNG and heat from methanators, reached 62.6%. Besides, the probability that the discounted cash flow is positive was estimated to be only 13.4%, under the set of conditions considered in the work. This work also showed that in order to make the mean net present value positive, subsidies of 68 €/MW el h are required (with respect to the electricity consumed by PtG process from RES). This figure is similar to the financial aids received by other technologies in the current economic environment. Highlights • Stochastic approach to assess economics of Power to Gas-Oxycombustion system. • Inputs variables uncertainty to have energy and economy accurate results. • PtG reaches on average an efficiency of 62.6% LHV. • Governmental support required to make PtG processes economically feasible. [ABSTRACT FROM AUTHOR]