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Keywords = net present value of cash flows

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22 pages, 726 KiB  
Article
An Economic Evaluation of an Intensive Silvo-Pastoral System in San Martín, Peru
by John Jairo Junca Paredes, Sandra Guisela Durango Morales and Stefan Burkart
Grasses 2025, 4(2), 21; https://doi.org/10.3390/grasses4020021 - 20 May 2025
Viewed by 204
Abstract
The cattle sector plays a critical role in Peru’s agricultural economy, yet it faces challenges related to low productivity and environmental degradation. Sustainable alternatives like silvo-pastoral systems (SPSs) offer promising solutions to enhance both economic returns and ecological outcomes in cattle farming. This [...] Read more.
The cattle sector plays a critical role in Peru’s agricultural economy, yet it faces challenges related to low productivity and environmental degradation. Sustainable alternatives like silvo-pastoral systems (SPSs) offer promising solutions to enhance both economic returns and ecological outcomes in cattle farming. This study examines the economic viability of an intensive SPS (SPSi) compared to traditional monoculture grass systems in San Martín, Peru. The SPSi under study is in the evaluation phase, integrates grasses, legumes, shrubs, and trees, and has the potential to enhance cattle farming profitability while simultaneously offering environmental benefits such as improved soil health and reduced greenhouse gas emissions. Through a discounted cash flow model over an eight-year period, key profitability indicators—Net Present Value (NPV), Internal Rate of Return (IRR), Benefit–Cost Ratio (BC), and payback period—were estimated for four dual-purpose cattle production scenarios: a traditional system and three SPSi scenarios (pessimistic, moderate, and optimistic). Monte Carlo simulations were conducted to assess risk, ensuring robust results. The results show that the NPV for the traditional system was a modest USD 61, while SPSi scenarios ranged from USD 9564 to USD 20,465. The IRR improved from 8.17% in the traditional system to between 26.63% and 30.33% in SPSi scenarios, with a shorter payback period of 4.5 to 5.8 years, compared to 7.98 years in the traditional system. Additionally, the SPSi demonstrated a 30% increase in milk production and a 50% to 250% rise in stocking rates per hectare. The study recommends, subject to pending validations through field trials, promoting SPSi adoption through improved access to credit, technical assistance, and policy frameworks that compensate farmers for ecosystem services. Policymakers should also implement monitoring mechanisms to mitigate unintended consequences, such as deforestation, ensuring that SPSi expansion aligns with sustainable land management practices. Overall, the SPSi presents a viable solution for achieving economic resilience and environmental sustainability in Peru’s cattle sector. Full article
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22 pages, 2629 KiB  
Article
Optimal Rainwater Harvesting System for a Commercial Building: A Case Study Focusing on Water and Energy Efficiency
by Douglas Alves, Rita Teixeira, José Baptista, Ana Briga-Sá and Cristina Matos
Sustainability 2025, 17(10), 4584; https://doi.org/10.3390/su17104584 - 16 May 2025
Viewed by 240
Abstract
Water stress is a significant issue in many countries, including Portugal, which has seen a 20% reduction in water availability over the last 20 years, with a further 10–25% reduction expected by the end of the century. To address potable water consumption, this [...] Read more.
Water stress is a significant issue in many countries, including Portugal, which has seen a 20% reduction in water availability over the last 20 years, with a further 10–25% reduction expected by the end of the century. To address potable water consumption, this study aims to identify the optimal rainwater harvesting (RWH) system for a commercial building under various non-potable water use scenarios. This research involved qualitative and quantitative methods, utilizing the Rippl method for storage reservoir sizing and ETA 0701 version 11 guidelines. Various scenarios of non-potable water use were considered, including their budgets and economic feasibility. The best scenario was determined through cash flow analysis, considering the initial investment (RWH construction), income (water bill savings), and expenses (energy costs from hydraulic pumps), and evaluating the net present value (NPV), payback period (PB), and internal rate of return (IRR). The energy savings obtained were calculated by sizing a hybrid system with an RWH system and a photovoltaic (PV) system to supply the energy needs of each of the proposed scenarios and the water pump, making the system independent of the electricity grid. The results show that the best scenario resulted in energy savings of 92.11% for a 7-month period of regularization. These results also demonstrate the possibility for reducing potable water consumption in non-essential situations supported by renewable energy systems, thus helping to mitigate water stress while simultaneously reducing dependence on the grid. Full article
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19 pages, 5527 KiB  
Article
Economic Viability and Flexibility of the South Pasopati Coal Project, Indonesia: A Real Options Approach Under Market Volatility and Carbon Pricing
by Teguh Trijayanto and Dzikri Firmansyah Hakam
J. Risk Financial Manag. 2025, 18(5), 225; https://doi.org/10.3390/jrfm18050225 - 23 Apr 2025
Viewed by 370
Abstract
This study evaluates the economic viability of the South Pasopati Coal Project in Indonesia, addressing market volatility, carbon pricing policies, and the country’s energy transition towards Net Zero Emissions (NZE). Given Indonesia’s reliance on coal and the increasing global shift toward renewable energy, [...] Read more.
This study evaluates the economic viability of the South Pasopati Coal Project in Indonesia, addressing market volatility, carbon pricing policies, and the country’s energy transition towards Net Zero Emissions (NZE). Given Indonesia’s reliance on coal and the increasing global shift toward renewable energy, traditional valuation methods such as Discounted Cash Flow (DCF) may not adequately capture uncertainty and strategic flexibility. The study applies Real Options Valuation (ROV), integrating Monte Carlo Simulation (MCS) and Binomial Lattice Modeling, to assess project feasibility under various scenarios. The research compares three valuation scenarios: the base scenario (eastern route), an alternative scenario (western route), and a carbon pricing scenario. Results indicate that while the DCF method estimates a positive Net Present Value (NPV) for the base scenario, it fails to incorporate price volatility risks. The ROV method, however, captures managerial flexibility and provides a more robust valuation, showing an Expanded NPV (ENPV) that better reflects market uncertainties. Findings suggest that implementing ROV improves decision-making, particularly in volatile markets. The study underscores the necessity for Indonesia to adopt more flexible valuation frameworks to enhance investment decisions in the coal sector while aligning with international environmental standards. Full article
(This article belongs to the Special Issue Featured Papers in Climate Finance)
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38 pages, 541 KiB  
Article
Monte Carlo Simulations for Resolving Verifiability Paradoxes in Forecast Risk Management and Corporate Treasury Applications
by Martin Pavlik and Grzegorz Michalski
Int. J. Financial Stud. 2025, 13(2), 49; https://doi.org/10.3390/ijfs13020049 - 1 Apr 2025
Viewed by 1348
Abstract
Forecast risk management is central to the financial management process. This study aims to apply Monte Carlo simulation to solve three classic probabilistic paradoxes and discuss their implementation in corporate financial management. The article presents Monte Carlo simulation as an advanced tool for [...] Read more.
Forecast risk management is central to the financial management process. This study aims to apply Monte Carlo simulation to solve three classic probabilistic paradoxes and discuss their implementation in corporate financial management. The article presents Monte Carlo simulation as an advanced tool for risk management in financial management processes. This method allows for a comprehensive risk analysis of financial forecasts, making it possible to assess potential errors in cash flow forecasts and predict the value of corporate treasury growth under various future scenarios. In the investment decision-making process, Monte Carlo simulation supports the evaluation of the effectiveness of financial projects by calculating the expected net value and identifying the risks associated with investments, allowing more informed decisions to be made in project implementation. The method is used in reducing cash flow volatility, which contributes to lowering the cost of capital and increasing the value of a company. Simulation also enables more accurate liquidity planning, including forecasting cash availability and determining appropriate financial reserves based on probability distributions. Monte Carlo also supports the management of credit and interest rate risk, enabling the simulation of the impact of various economic scenarios on a company’s financial obligations. In the context of strategic planning, the method is an extension of decision tree analysis, where subsequent decisions are made based on the results of earlier ones. Creating probabilistic models based on Monte Carlo simulations makes it possible to take into account random variables and their impact on key financial management indicators, such as free cash flow (FCF). Compared to traditional methods, Monte Carlo simulation offers a more detailed and precise approach to risk analysis and decision-making, providing companies with vital information for financial management under uncertainty. This article emphasizes that the use of Monte Carlo simulation in financial management not only enhances the effectiveness of risk management, but also supports the long-term growth of corporate value. The entire process of financial management is able to move into the future based on predicting future free cash flows discounted at the cost of capital. We used both numerical and analytical methods to solve veridical paradoxes. Veridical paradoxes are a type of paradox in which the result of the analysis is counterintuitive, but turns out to be true after careful examination. This means that although the initial reasoning may lead to a wrong conclusion, a correct mathematical or logical analysis confirms the correctness of the results. An example is Monty Hall’s problem, where the intuitive answer suggests an equal probability of success, while probabilistic analysis shows that changing the decision increases the chances of winning. We used Monte Carlo simulation as the numerical method. The following analytical methods were used: conditional probability, Bayes’ rule and Bayes’ rule with multiple conditions. We solved truth-type paradoxes and discovered why the Monty Hall problem was so widely discussed in the 1990s. We differentiated Monty Hall problems using different numbers of doors and prizes. Full article
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22 pages, 3550 KiB  
Article
Economic Feasibility of Using Municipal Solid Waste and Date Palm Waste for Clean Energy Production in Qatar
by Ahmad Mohamed S. H. Al-Moftah, Mohammad Alnajideen, Fatima Alafifi, Pawel Czyzewski, Hao Shi, Mohammad Alherbawi, Rukshan Navaratne and Agustin Valera-Medina
Energies 2025, 18(4), 988; https://doi.org/10.3390/en18040988 - 18 Feb 2025
Viewed by 1101
Abstract
The transition to clean energy is crucial for mitigating the impacts of climate change and achieving sustainable development. Reliance on fossil fuels, which are integral to manufacturing and transportation, remains a major contributor to greenhouse gas (GHG) emissions. Biomass gasification presents a renewable [...] Read more.
The transition to clean energy is crucial for mitigating the impacts of climate change and achieving sustainable development. Reliance on fossil fuels, which are integral to manufacturing and transportation, remains a major contributor to greenhouse gas (GHG) emissions. Biomass gasification presents a renewable energy alternative that can significantly reduce emissions. However, proper disposal of municipal solid waste (MSW) and agricultural residues, such as date palm waste (DPW), is an increasing global challenge, including in Qatar. This study evaluates the economic feasibility of implementing an MSW and DPW gasification plant for clean electricity generation in Qatar. The country’s growing population and economic development have led to substantial waste production, making it an ideal location for waste-to-energy (WTE) initiatives. Using discounted cash flow (DCF) analysis, the study estimates the capital cost of a 373 MWth facility at approximately $12.07 million, with annual operating costs of about $4.09 million and revenue of $26.88 million in 2023. The results indicate a net present value (NPV) of $245.77 million, a return on investment (ROI) of 84.80%, a payback period of approximately 5 years over a 20-year project lifetime and a net reduction of 206,786 tonnes CO2 annually. These findings demonstrate the economic viability of biomass gasification in Qatar while contributing to reduced GHG emissions and advancing the country’s sustainability goals under Qatar National Vision 2030. Full article
(This article belongs to the Special Issue Novel and Emerging Energy Systems)
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28 pages, 6461 KiB  
Article
Technical–Economic Assessment and FP2O Technical–Economic Resilience Analysis of the Gas Oil Hydrocracking Process at Large Scale
by Sofía García-Maza and Ángel Darío González-Delgado
Sci 2025, 7(1), 17; https://doi.org/10.3390/sci7010017 - 12 Feb 2025
Viewed by 698
Abstract
The increasing requirement for distillates, accompanied by higher quantities of heavy crude oil in world production, has positioned gas oil hydrocracking as one of the most significant processes in refineries. In the petrochemical industry, hydrocracking is an essential process that converts heavy hydrocarbons [...] Read more.
The increasing requirement for distillates, accompanied by higher quantities of heavy crude oil in world production, has positioned gas oil hydrocracking as one of the most significant processes in refineries. In the petrochemical industry, hydrocracking is an essential process that converts heavy hydrocarbons into lighter and more valuable products such as LPG (liquefied petroleum gas), diesel, kerosene, light naphtha, and heavy naphtha. This method uses hydrogen and a catalyst to break down the gas oil feedstock through hydrogenation and hydrocracking reactions. However, the gas oil hydrocracking process faces significant technical, economic, and financial obstacles that must be overcome to reveal its full potential. In this study, a computer-assisted technical–economic evaluation and an evaluation of the technical–economic resilience of the gas oil hydrocracking process at an industrial scale was carried out. Twelve technical–economic and three financial indicators were evaluated to identify this type of process’s current commercial status and to analyze possible economic performance parameter optimizations. The economic indicators listed include gross profit (GP), profitability after taxes (PAT), economic potential (EP), cumulative cash flow (CCF), payback period (PBP), depreciable payback period (DPBP), return on investment (ROI), internal rate of return (IRR), net present value (NPV), annual cost/revenues (ACR), break-even point (BEP), and on-stream efficiency at the BEP. On the other hand, the financial indicators proposed by the methodology are earnings before taxes (EBT), earnings before interest and taxes (EBIT), and earnings before interest, taxes, depreciation, and amortization (EBITDA). The technical–economic resilience of the process was also evaluated, considering the costs of raw materials, the market prices of the products, and processing capacity. The gas oil hydrocracking plant described, with a useful life of 20 years and a processing capacity of 1,937,247.91 tonnes per year, achieved a gross profit (GP) of USD 58.97 million and a return after tax (PAT) of USD 39.77 million for the first year, operating at maximum capacity. The results indicated that the process is attractive under a commercial approach, presenting a net present value (NPV) of USD 68.87 million at the end of the last year of operation and a cumulative cash flow (CCF) of less than one year−1 (0.34 years−1) for the first year at full processing capacity, which shows that in this process, variable costs have more weight on the economic indicators than fixed costs. Full article
(This article belongs to the Section Chemistry Science)
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12 pages, 819 KiB  
Article
Profitability Analysis of the Robusta Coffee Value Chain in the Tshopo Province, Democratic Republic of Congo
by Louis Pasteur Bamenga Bopoko, Theodore Trefon, Jean-Pierre Mate and Baudouin Michel
Agriculture 2025, 15(3), 312; https://doi.org/10.3390/agriculture15030312 - 31 Jan 2025
Viewed by 1116
Abstract
This article addresses the financial viability of agents in the robusta coffee sector. The objective is to calculate and analyze the profitability performance of the coffee sector in Tshopo in order to inform the subsequent development of business projects in the robusta coffee [...] Read more.
This article addresses the financial viability of agents in the robusta coffee sector. The objective is to calculate and analyze the profitability performance of the coffee sector in Tshopo in order to inform the subsequent development of business projects in the robusta coffee sector. Moreover, the analysis will assist decision-makers and investors in determining the optimal allocation of funds to the most profitable links in the robusta coffee sector in Tshopo. A cost-benefit analysis was conducted, employing a discounting methodology to evaluate the cash flows of agents engaged in the robusta coffee sector. This entailed the calculation of the net present value, internal rate of return, and payback period. The results demonstrate that the coffee sector is performing well, with agents’ cash flow sufficient to repay the initial investment. It can thus be concluded that, in consideration of the favorable profitability criteria, there is minimal risk in investing in the robusta coffee sector in Tshopo. Full article
(This article belongs to the Section Agricultural Economics, Policies and Rural Management)
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32 pages, 2337 KiB  
Article
A Case Study on Multi-Real-Option-Integrated STO-PF Models for Strengthening Capital Structures in Real Estate Development
by Jung Kyu Park, Jun Bok Lee, Young Mee Ahn and Ga Young Yoo
Buildings 2025, 15(2), 216; https://doi.org/10.3390/buildings15020216 - 13 Jan 2025
Cited by 1 | Viewed by 1383
Abstract
This study examines the integration of multi-real-option valuation and security token offering (STO) as an innovative approach to real estate project financing. The case study of Aspen Resort Development serves to illustrate this methodology. The traditional discounted cash flow (DCF) method is frequently [...] Read more.
This study examines the integration of multi-real-option valuation and security token offering (STO) as an innovative approach to real estate project financing. The case study of Aspen Resort Development serves to illustrate this methodology. The traditional discounted cash flow (DCF) method is frequently ill-suited to the dynamic and uncertain nature of long-term real estate projects, particularly in regard to the ability to adapt to market fluctuations. In order to address these limitations, this study employs a multi-real-option model with a binomial lattice framework, thereby facilitating flexible decision-making in various investment stages. The analysis demonstrates that the STO-based project financing (STO-PF) model offers enhanced financial performance and strategic advantages in comparison to the conventional DCF approach. Furthermore, the STO-PF model has the effect of increasing liquidity, expanding investment accessibility, and improving risk management through the utilization of digital platforms. By quantifying the project’s extended net present value (ENPV), the integration of STOs with real-options models can facilitate optimal investment decisions in the context of a high level of market volatility. Consequently, the STO-PF model is determined to yield a project value (E) of USD 7.34 million and a real-options value (ROV) of USD 3.69 million. This is markedly higher than the net present value (NPV) of USD 3.65 million derived from the traditional project finance (PF) model. Furthermore, the put option for the second investment stage contributes USD 16.45 million to the overall value of the project, thereby demonstrating the flexibility and strategic advantages of the STO framework in comparison to static NPV analysis. The Aspen project serves as a case study, demonstrating the financial viability of phased investments in dynamic market conditions. It contributes to the theoretical understanding of STO-based financing and provides practical insights for developers seeking flexible and innovative financing solutions in the real estate sector. Further research is required to confirm the applicability of STOs in diverse market environments and regulatory contexts. Additionally, in-depth research is necessary to integrate emerging technologies, such as artificial intelligence and machine learning, into multi-real-option-based financial platforms. This integration aims to enhance financial modeling and decision-making processes, as well as to facilitate the integration of digital technologies in this field. Only then can the development and implementation of smart construction development advance. Full article
(This article belongs to the Section Architectural Design, Urban Science, and Real Estate)
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23 pages, 2142 KiB  
Article
Identifying Critical Failures in PV Systems Based on PV Inverters’ Monitoring Unit: A Techno-Economic Analysis
by Filipe Monteiro, Eduardo Sarquis and Paulo Branco
Energies 2024, 17(18), 4738; https://doi.org/10.3390/en17184738 - 23 Sep 2024
Cited by 1 | Viewed by 1515
Abstract
Recent advancements in power electronics have significantly improved photovoltaic (PV) inverters by equipping them with sophisticated monitoring capabilities. These enhancements provide economic advantages by facilitating swift failure detection and lowering monitoring costs. Educating users on the economic repercussions of undetected failures in specific [...] Read more.
Recent advancements in power electronics have significantly improved photovoltaic (PV) inverters by equipping them with sophisticated monitoring capabilities. These enhancements provide economic advantages by facilitating swift failure detection and lowering monitoring costs. Educating users on the economic repercussions of undetected failures in specific inverter monitoring systems is crucial. This paper introduces a novel metric, “Cost of Detection”, which assesses the financial impact of failures, considering the repair expenses and the “quality” of the monitoring system in place. The study analyzed fifteen inverter monitoring solutions, focusing on the variance in alerts generated by the manufacturers’ standard and extra monitoring features. Employing the Failure Mode and Effects Analysis (FMEA) method, alerts were prioritized based on their importance for two PV system scenarios: a low-power residential system (5 kWp) and a medium-power industrial/commercial system (100 kWp). Lisbon, Rome, and Berlin were chosen as the locations for these systems. The economic impact of system failures is evaluated annually for each capacity and city. Given the differing costs and annual yields, comparing their economic performance over time is essential. This comparison utilizes the Net Present Value (NPV), which estimates an investment’s worth by calculating the present value of all cash flows. The investment assessment includes only the costs of inverters and optimizers, excluding O&M expenses, licenses, and fees. Over five years, a higher NPV signifies a more economically advantageous solution. For residential systems, string inverters with optimizers have the highest NPV, surpassing those without optimizers by 17% across all three cities. The optimal monitoring solution in the industrial/commercial context was a string inverter with one optimizer for every two panels. Here, Rome emerged as the location with the most substantial NPV increase of 50%, followed by Berlin with 33% and Lisbon with 28%. Full article
(This article belongs to the Special Issue Advances in Photovoltaic Solar Energy II)
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17 pages, 1026 KiB  
Article
The Role of Precision Agriculture Technologies in Enhancing Sustainable Agriculture
by Mary Sanyaolu and Arkadiusz Sadowski
Sustainability 2024, 16(15), 6668; https://doi.org/10.3390/su16156668 - 4 Aug 2024
Cited by 12 | Viewed by 7273
Abstract
Despite the known benefits of precision agriculture, the adoption is challenging due to the cost of investment and the farm sizes. Therefore, profitability is an important aspect to consider. This study aimed to evaluate the net returns, profitability, and investment efficiencies of PA [...] Read more.
Despite the known benefits of precision agriculture, the adoption is challenging due to the cost of investment and the farm sizes. Therefore, profitability is an important aspect to consider. This study aimed to evaluate the net returns, profitability, and investment efficiencies of PA by different economic farm sizes. The study was based on data retrieved from the Farm Accountancy Data Network (FADN) and Eurostat (year 2021). The study examined four countries (Poland, Germany, France, and Romania) under field crop farming using an investment cost of EUR 35,941–EUR 71,883 and a 20% and 15% reduction in the cost of crop protection and fertilizer usage, respectively, without compromising productivity. There is a positive relationship between the adoption of PA and farm returns for larger-scale farms. The result of the profitability and analysis of investment efficiency using Net Present Value (NPV) showed a positive value for economic farm sizes of EUR 100,000 and above. Hence, it is not economically advisable that all farmers use PA technologies with the hope that they will be profitable but with public support (subsidies) more farms will be able to use PA and be profitable. This is also an opportunity to meet the goals of the European Union Green Deal of minimizing emissions that cause climate change. Full article
(This article belongs to the Section Sustainable Agriculture)
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10 pages, 510 KiB  
Article
Valuation of Medical Innovation Handling with Uncertainty and Risk
by Mark Nuijten and Stefano Capri
J. Mark. Access Health Policy 2024, 12(3), 199-208; https://doi.org/10.3390/jmahp12030016 - 1 Aug 2024
Cited by 1 | Viewed by 1445
Abstract
Background: The purpose of this paper is to address how to handle uncertainty when performing an economic valuation of a medical innovation R&D project in orphan diseases from the perspective of the investor. Methods: We describe the specific uncertainty related to cash flows [...] Read more.
Background: The purpose of this paper is to address how to handle uncertainty when performing an economic valuation of a medical innovation R&D project in orphan diseases from the perspective of the investor. Methods: We describe the specific uncertainty related to cash flows and the cost of capital for innovation in orphan diseases. The uncertainty in cash flows relates to sales, manufacturing and R&D costs, and probabilities of failure for each phase in the clinical trial program. We consider different net present values (NPVs) and higher standard deviations for orphan drugs compared to non-orphan drugs. Results: Numerical case base examples showed the differences in trade-off by an investor for R&D projects with differences in NPV and level of uncertainty. The investor will transfer the additional uncertainty in cash flows in a higher cost of capital. An alternative approach is the application of an “acceptability curve” based on a probabilistic sensitivity analysis, which displays the cumulative probabilities at a range of different values for the NPV. Finally, we consider uncertainty in the cost of capital itself by applying the Capital Asset Pricing Model (CAPM). Conclusions: In this paper, we described various types of uncertainty and explored various approaches to how to handle uncertainty in the economic valuation of medical innovation in orphan diseases. The bridging of health economics with economic valuation theory in the healthcare market is to our knowledge a novel approach for the valuation of medical innovation by investors. Full article
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23 pages, 2009 KiB  
Article
The Economic Efficiencies of Investment in Biogas Plants—A Case Study of a Biogas Plant Using Waste from a Dairy Farm in Poland
by Dariusz Kusz, Bożena Kusz, Ludwik Wicki, Tomasz Nowakowski, Ryszard Kata, Władysław Brejta, Anna Kasprzyk and Marek Barć
Energies 2024, 17(15), 3760; https://doi.org/10.3390/en17153760 - 30 Jul 2024
Cited by 5 | Viewed by 1992
Abstract
High investments and low economic efficiency of agricultural biogas plants operating on farms are two of the main barriers to the development of the biogas plant sector. Identification of economic and financial problems related to the operation of such facilities allows for the [...] Read more.
High investments and low economic efficiency of agricultural biogas plants operating on farms are two of the main barriers to the development of the biogas plant sector. Identification of economic and financial problems related to the operation of such facilities allows for the reduction of entry barriers for private investors, especially farmers. The aim of this research was to analyze the economic efficiency of investing in an agricultural biogas plant operating at a dairy farm. For the analysis, the case study method was applied. The economic efficiency of investment in a biogas plant was assessed using six different cash flow options. The NPV (net present value) and IRR (internal rate of return) methods were applied to assess the economic efficiency of the investment. It was found that the investment project for an agricultural biogas plant with a capacity of 0.499 MW located at a dairy farm required a subsidy of approximately 40–60% of the value of to ensure satisfactory economic efficiency. It has been shown that a particularly important aspect in assessing the economic efficiency of an investment in an agricultural biogas plant is the use of an economic calculation that takes into account the valuation and quantification of all positive external effects of such projects. Full article
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19 pages, 4089 KiB  
Article
Techno-Economic and Environmental Analyses of an Integrated Liquefied Natural Gas/Allam–Fetvedt Cycle/Air Separation Unit Complex
by Daniel Chen, Pawanahamsa Shetty, Song Wang, Veeracharyulu Nellipudi, Fuad Aziz, Qiang Xu and Gevorg Sargsyan
Energies 2024, 17(11), 2663; https://doi.org/10.3390/en17112663 - 30 May 2024
Viewed by 1383
Abstract
The natural gas (NG)-powered compressors/engines used in liquified natural gas (LNG) plants are a major source of methane emission. The Allam–Fetvedt cycle (AFC), an oxyfuel, carbon-neutral, high-efficiency power plant, generates pipeline-grade CO2. This work performed novel process modeling, economic analysis, and [...] Read more.
The natural gas (NG)-powered compressors/engines used in liquified natural gas (LNG) plants are a major source of methane emission. The Allam–Fetvedt cycle (AFC), an oxyfuel, carbon-neutral, high-efficiency power plant, generates pipeline-grade CO2. This work performed novel process modeling, economic analysis, and greenhouse gas emissions analysis for a heat-integrated, electrified LNG/AFC/air separation unit (ASU) complex (LAA), then compared it to standalone LNG and AFC/ASU plants (baseline) as well as an LNG plant electrified with AFC/ASU without heat integration. The low-grade heat generated from compressors of the LNG plant can enhance the AFC net power output by 7.1%. Utilizing the nitrogens cold energy reduces the compressor power requirement by 1.6%. In the integrated LAA complex, not only are GHG emissions avoided, but the energy efficiencies are also improved for both the LNG plant and the AFC power plant. A cash flow analysis of LAA was performed over a 20-year period with 5%, 7%, and 10% discount rates and three levels of LNG prices. The 45Q CO2 credit of USD 85/T as stipulated by the recent Inflation Reduction Act (IRA) of 2022 has been incorporated. The results clearly indicate the economic and environmental benefits of the proposed electrification and heat/power integration. Full article
(This article belongs to the Section B: Energy and Environment)
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28 pages, 2740 KiB  
Article
Maximizing Net Present Value for Resource Constraint Project Scheduling Problems with Payments at Event Occurrences Using Approximate Dynamic Programming
by Tshewang Phuntsho and Tad Gonsalves
Algorithms 2024, 17(5), 180; https://doi.org/10.3390/a17050180 - 28 Apr 2024
Cited by 1 | Viewed by 1911
Abstract
Resource Constraint Project Scheduling Problems with Discounted Cash Flows (RCPSPDC) focuses on maximizing the net present value by summing the discounted cash flows of project activities. An extension of this problem is the Payment at Event Occurrences (PEO) scheme, where the client makes [...] Read more.
Resource Constraint Project Scheduling Problems with Discounted Cash Flows (RCPSPDC) focuses on maximizing the net present value by summing the discounted cash flows of project activities. An extension of this problem is the Payment at Event Occurrences (PEO) scheme, where the client makes multiple payments to the contractor upon completion of predefined activities, with additional final settlement at project completion. Numerous approximation methods such as metaheuristics have been proposed to solve this NP-hard problem. However, these methods suffer from parameter control and/or the computational cost of correcting infeasible solutions. Alternatively, approximate dynamic programming (ADP) sequentially generates a schedule based on strategies computed via Monte Carlo (MC) simulations. This saves the computations required for solution corrections, but its performance is highly dependent on its strategy. In this study, we propose the hybridization of ADP with three different metaheuristics to take advantage of their combined strengths, resulting in six different models. The Estimation of Distribution Algorithm (EDA) and Ant Colony Optimization (ACO) were used to recommend policies for ADP. A Discrete cCuckoo Search (DCS) further improved the schedules generated by ADP. Our experimental analysis performed on the j30, j60, and j90 datasets of PSPLIB has shown that ADP–DCS is better than ADP alone. Implementing the EDA and ACO as prioritization strategies for Monte Carlo simulations greatly improved the solutions with high statistical significance. In addition, models with the EDA showed better performance than those with ACO and random priority, especially when the number of events increased. Full article
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20 pages, 4880 KiB  
Article
Development and Performance Evaluation of Low-Cost 2WT-Operated Earthing-Up Machine for Sugarcane Cultivation in Bangladesh
by Md. Nafiul Ferdows, Md. Anisur Rahman, Md. Rostom Ali, Md. Abu Hanif, Sayed Shams Tabriz, Md. Sanowar Hossen and Md. Rokonuzzaman
AgriEngineering 2023, 5(3), 1327-1346; https://doi.org/10.3390/agriengineering5030084 - 1 Aug 2023
Cited by 1 | Viewed by 2692
Abstract
Like most crops, sugarcane needs to be kept upright until it is harvested. The lodging of sugarcane has significant negative effects on the cane yield and sugar content of sugarcane. To keep sugarcane upright, earthing up is an essential in the cultural part [...] Read more.
Like most crops, sugarcane needs to be kept upright until it is harvested. The lodging of sugarcane has significant negative effects on the cane yield and sugar content of sugarcane. To keep sugarcane upright, earthing up is an essential in the cultural part of the operation. In Bangladesh, most of the sugarcane cultivation operations, including earthing-up, are generally performed in a traditional manual method which increases the production costs as well as reduces the income of sugarcane growers. Therefore, a cost-effective two-wheeled tractor (2WT)-mounted earthing-up machine was developed at the Bangladesh Sugarcrop Research Institute (BSRI), Pabna, to reduce drudgery and the cost of sugarcane production. Field tests were conducted in an experimental sugarcane field at BSRI and technical and economic performances of the developed earthing-up machine were also carried out based on the field test. The average effective field capacity and field efficiency of the earthing-up machine were found to be 0.16 ha/h and 77.41%, respectively. The 2WT-driven earthing-up machine was not found to be economically viable when it was used only for earthing-up operations. However, when the 2WT was used as the main driver for other activities, including earthing-up operation, the earthing-up machine became economically beneficial with net cash flow (NCF), net present value (NPV), internal rate of return (IRR), benefit–cost ratio (BCR), and payback period (PP) of BDT 148,497/ha, BDT 23,184, 3%, 3.81:1, and approximately 1 year, respectively. On the contrary, considering the cost of only earthing-up tool without 2WT, it was found to be economically beneficial with NCF, NPV, IRR, BCR, and PP of BDT 16,428/ha, BDT 3053, 4.7%, 2.71:1, and approximately 2 years, respectively. In Bangladesh, 2WT is commonly used for versatile farming purposes. Therefore, the versatile use of 2WT as a prime mover for other machines, including the earthing-up machine, can make earthing-up machine economically viable and beneficial for sugarcane growers in Bangladesh. Full article
(This article belongs to the Section Agricultural Mechanization and Machinery)
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