Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Pipeline gas demonstration plant. Phase I. Abbreviated version of process evaluation report conceptual commercial plant. Section 6. Baseline economic evaluation. [Estimated for commercial plant]

Technical Report ·
DOI:https://doi.org/10.2172/5216067· OSTI ID:5216067
The Commercial Plant capital requirement is estimated at $1,550,602,000. These costs are all expressed in year end-1977 dollars. The operating cost for the Commercial Plant is based on a 20 year plant design life, operating for 330 days per year (90.4% plant effectiveness) with an overall thermal efficiency of 62.4%. The total operating cost as defined, is $157,017,409 per year. The Commercial Plant gas cost is computed on the net present value analysis basis using the revenue requirement method. A discount rate of 9% is used in the calculation. The revenue requirement method determines the lowest gas selling price per MM Btu which will recover all costs incurred during the twenty-five year project life. The selling price in year end 1977 dollars is $4.597 per MM Btu. Various factors used in the calculation are given in some detail.
Research Organization:
Illinois Coal Gasification Group, Chicago (USA)
OSTI ID:
5216067
Report Number(s):
FE-2012-096(Sect.6)
Country of Publication:
United States
Language:
English