Lecture 53 - What you should Know You should know how to compare technology options via net present value(ICP#41 You should understand also the

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CEE 260: Environmental and Sustainable Engineering Principles Financial Comparison of Technology Options Lecture# 53 Reading: Rubin Ch 13: pages 553-583 What you should Know You should know how to compare technology options via net present value (ICP#41) You should understand also the following metrics: Levelized annual cost Cost per unit product Average cost effectiveness Marginal cost analysis Payback period Cost-benefit analysis ICP #45: Average Cost-Effectiveness of Increasing Emissions Reductions Consider again the same power plant, in which an FGD was installed to remove 27,650 tonnes/year of SO 2 . Two other technological options available to reduce SO 2 emissions are (1) switching to a lower-sulfur coal without an FGD system and (2) converting the plant to burn natural gas instead of coal. The coal-switching option would reduce SO 2 by 14,550 tonnes SO 2 /year (a 50% reduction). The added levelized cost is estimated to be $2.5million/year. Because natural gas is more expensive than coal, the levelized annual cost of this option is estimated at $40 million/year. It removes all SO 2 emissions (29,100 tonnes per year) Calculate the average cost-effectiveness of all 3 SO 2 control options and plot the results versus SO 2 emission reduction ICP #45: Avg. Cost-Effectiveness of Increasing Emissions Reductions ICP #46: Marginal Cost of SO
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This note was uploaded on 04/17/2008 for the course CEE 260 taught by Professor Kimf.hayes during the Fall '06 term at University of Michigan.

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Lecture 53 - What you should Know You should know how to compare technology options via net present value(ICP#41 You should understand also the

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