QUICK START-UP GUIDE by AndyMcNally

VIEWS: 32 PAGES: 10

									C_PAT_variable inputs-08                                                                                                           7/19/2004



                           CPAT QUICK START-UP GUIDE
                                      2.2


NOTE: The values associated with the Gray Boxes are set by the C-PAT program. Default values that vary by
USER selected options are noted as default(i) for industry dependent values and default(p) for Product/Process
dependent values. Setting Default values makes comparison among projects more equitable. However, the
program does recognize that defaults are not universal and allows the USER to change default values. If they are
changed C-PAT will automatically ask the USER to enter a justification. The justification is very important and
must fully explain and document (with references) any non-default value.
C-PAT requires the USER to enter Justification Documents in two places. These documents provide the detailed
justifications used to develop the capital costs, energy savings and environmental impact changes entered into C
PAT.
The USER must enter or select values in Yellow areas.

                           Project Details                                                   Definitions
                   Analysis Title:             USER Input          The unique name for this data set.
                          Author:              USER Input          The name of the person who completed the data set
                Brief Description:             USER Input          A description of the project including all pertinent details.
                        Industry:             USER Selected        The industry in which this project will be used.
                                                                   The product or process stream in which this project will be used.
                                           USER Selected           The combination of "Industry" and "Product/Process" selections set
                                                                   default values that are used in C-PAT.
               Product / Process:       or USER customized
                                                                   The USER can enter a custom product/process if there is no match
                                        cases can be entered       on the pull down menu. Custom data input requirements are
                                                                   described below

                           Market Details                                                    Definitions
                                                                   The default(p) values are based the USER selected
                                             Quantity per year     "Product/Process" pull down menu choice. The default data are
                                                                   from public data (i.e., data from sources such as Chemical
                                                                   Marketing Reporter). The data values and sources can be viewed
        Product/Process Market:             Year for Market Size   by selecting the View button. Market size is the total quantity of a
                                                                   given product produced in the U.S. in the " Year for Market Size."
                                                                   The Market Price is the current price for the product. The USER
                                               Market Price        can input values if their case is substantially different from the
                                                                   default values. A justification will be required.
                                                                   The default value recognizes that very few projects apply to entire
    What percentage of the total                                   marketplaces. The percentage value is the portion of the Total
                                                                   Market Size (shown above) that this technology is applicable to
       market do you expect to                     30%
                                                                   (e.g., the new technology may apply only to those ethylene
              impact by 2020?                                      production plants that use propane (22 percent) as their feedstock
                                                                   compared to the entire ethylene industry).
                                                                   The default value assumes that projects which receive funding
                                                                   (i.e., government funding) are deployed into the market place ten
                                                                   years earlier than if they were pursued through traditional industry
               Years Accelerated:                20 Years          development. This assumption is project and market dependent.
                                                                   Future energy and environmental impacts calculated in C-PAT are
                                                                   base on those impacts that are attributable to the accelerated
                                                                   deployment.
                                                                   The default(p) value is based the USER selected
   The annual growth rate of the                                   "Product/Process" pull down menu choice. Default data comes
   Product/Process Market over                      _%             from public data (i.e., data from sources such as Chemical
              the past 10 years:                                   Marketing Reporter). The annual percent growth rate in based on
                                                                   U.S. demand for a given product.
C_PAT_variable inputs-08                                                                                                              7/19/2004

          Capacity and Capital Requirements                                                   Definitions
                                                                    The maximum annual production capacity expressed in the
                                                                    nameplate units for this technology under theoretically ideal
    Commercial Unit Nameplate
                              Capacity USER input value             operation and control. This capacity should be representive of the
                  Production:                                       nth plant, a plant capacity of a scale that would be typically for US
                                                                    operations.
                                      Conventional      New
                                       Technology    Technology
                                                                    The capital cost (in dollars) of all equipment, piping,
                                                                    instrumentation and controls used within the battery limits of this
                                  Dollar USER Dollar USER
    Inside Battery Limits (ISBL):                                   operation. Battery limits typically define the geographical boundary
                                   input value input value          of a project. It usually includes all process equipment but may
                                                                    exclude storage, utilities, administrative building and other facilities.
                                                                    The default(i) percentage is used to calculate the costs in dollars of
                           Outside                                  elements supporting process equipment (i.e. storage tanks,
                                    $ calculated     $ calculated
  30% (of ISBL)      Battery Limits                                 buildings, equipment and additions to plant-wide infrastructure) not
                                       value            value       directly involved in this technology unit but necessary for its
                           (OSBL):
                                                                    operation.
                                                                    The default(i) percentage is used to calculate expenses that are
                                                                    non-recurring costs. These cover expenses between construction
  9% (of ISBL +              Startup $ calculated    $ calculated
                                                                    and when the plant is operable at an acceptable level of capacity.
    OSBL)                   Expense:    value           value       They typically include hiring extra temporary labor, minor
                                                                    alterations to equipment, instrumentation, etc..
  20% (of ISBL               Working $ calculated    $ calculated   The default(i) percentage is used to calculate the working capital,
    + OSBL)                  Capital:   value           value       money on-hand required to operate the business.
                                                                    A "Justification" documnet must be attached. This document
                  Justification Documents                           should provide details on how ISBL capital values where

                           Start-Up Details                                                   Definitions
                                                                    The default value assumes that construction begins on January 1
                                                                    of the year that is five years from today's date (e.g., if today was
         Construction Start Year:             2009 Year             August 1, 2010 construction would begin on January 1, 2015). This
                                                                    represents the year that the first commercial unit construction will
                                                                    begin for this project.
                                                                    The default(i) value represents the total number of years that a unit
                                                                    of this technology will be in use. Useful operational life is defined
                  Operational Life:           25 Years
                                                                    differently in many industries and many technologies have useful
                                                                    lives that are different than the default value.
                                                                    The default(i) value represents the number of months from the start
       Unit Construction Period:              12 Months
                                                                    of construction to the date the unit begins operation.
                                                                    The default(i) value accounts for the fact that many operations do
                                                                    not startup at full capacity. C-Pat assumes that capacity is
                Start-up Capacity:       50 (% of nameplate)
                                                                    increased linearly from the startup capacity to full capacity during
                                                                    the "Time to Nameplate."
                                                                    The default(i) value represents the number of months that are
              Time to Nameplate:              6 Months              required for production to go from start-up capacity to nameplate
                                                                    capacity
C_PAT_variable inputs-08                                                                                                                 7/19/2004

                                       Conventional        New
                                        Technology      Technology

                           Raw Materials                                                           Definitions
                                                                         The USER selects the Name of a raw materials from a drop down
                                           USER           USER
                             NAME:                                       menu. If the USER's raw material is not listed the USER can create
                                          Selected       Selected        a new raw material for this project.
                                      Default set by Default set by The default(p) value is the common unit of the raw material (e.g.,
                              UNIT:
                                         Name           Name        bleached hardwood pulp has a common unit of adt - air dried tons)

                                                                         The default(p) value is the cost (in dollars) of each common unit of
                                      Default set by Default set by
                       UNIT COST:                                   the raw material. Default(p) data comes from public data (i.e., data
                                         Name           Name        from sources such as Chemical Marketing Reporter).
                                                                         The USER enters the number of common units of raw material
                  CONSUMPTION: USER Input              USER Input        consumed per market unit of the product produced for the new
                                                                         technology.
                            Byproducts                                                             Definitions
                                                                         The USER enters the name of a byproduct produced in the
                             NAME: USER Input          USER Input        manufacturing of the product.
                              UNIT: USER Input         USER Input        The USER enters the common unit for the byproduct.
                                                                         The USER enters the sales price (in dollars) of each common unit
                       UNIT COST: USER Input           USER Input        of the byproduct. A negative value accounts for a cost associated
                                                                         with the disposal for a byproduct.
                                                                         The USER enter the common unit quantity of byproduct produced
                      PRODUCED: USER Input             USER Input        per market unit of product produced for the new technology.

              Catalysts and/or Consumables                                                         Definitions
                                                                         The User enters an identifying name of a consumable (e.g., a
                             NAME: USER Input          USER Input        catalyst, cartridge filter element, etc.) used in the manufacturing of
                                                                         the product.
                              UNIT: USER Input         USER Input        The USER enters the common unit for the consumable.
                                                                         The USER enters the cost (in dollars) of each common unit of the
                       UNIT COST: USER Input           USER Input        consumable item.
                                                                         The User enters the common unit quantity of the consumable item
                  CONSUMPTION: USER Input              USER Input        used per market unit of product produced for the new technology.

                              Utilities                                                            Definitions
                                      USER           USER                The USER selects the name of a utility used in the manufacturing
                            NAME:                                        of the product from a pull down menu.
                                     Selected       Selected
                                   Default set by Default set by
                             UNIT:                                       The default(i) name of the common unit of a selected utility.
                                      Name           Name
                                   Default set by Default set by         The default(i) cost (in dollars) of a common unit of the selected
                       UNIT COST:                                        utility.
                                      Name           Name
                                                                         The USER enters the common units quantity of the utility
                  CONSUMPTION: USER Input              USER Input        consumed per market unit of product produced for the new
                                                                         technology.
                           Miscellaneous                                                           Definitions
                                                                         The USER enters the name of a miscellaneous product or service
                             NAME: USER Input          USER Input        required for the manufacturing of the product.
                                                                         The USER enters the common unit for the miscellaneous product
                              UNIT: USER Input         USER Input        or service.
                                                                         The USER enters the sales price (in dollars) of each common unit
                       UNIT COST: USER Input           USER Input        of the miscellaneous product or service.
                                                                         The USER enter the common unit quantity of miscellaneous
                  CONSUMPTION: USER Input              USER Input        product or service consumed per market unit of product produced
                                                                         for the new technology.
C_PAT_variable inputs-08                                                                                                                7/19/2004

                           Fixed Costs                                                          Definitions
                                       Conventional      New
                                        Technology    Technology
                                                                      The default(i) number of persons required per shift for the
                                       calculated     calculated
                                                                      operation of the project unit. This value is based on the ISBL
                                         value          value         capital cost.
                                                                      The default(i) value is the number of eight hour work shifts required
                                        3 eight hr     3 eight hr
                             Labor:                                   to meet Nameplate Capacity production for a single day. The
                                        shifts/day     shifts/day     maximum value is 3 shifts of 8 hours per day.
                                                                      The default(i) value for hourly wage rate (in dollars per hour),
                                       35.00 $/hr     35.00 $/hr      taking into account overhead, benefits, and profits associated with
                                                                      the operation of the finished unit.
                                     5% Inside       5% Inside
                                                                      The default(i) cost of maintenance to equipment Inside Battery
               Maintenance ISBL: Battery Limit Battery Limit          Limits (ISBL) is based on a percent of ISBL capital cost.
                                        (ISBL)          (ISBL)
                                    2% Outside 2% Outside
                                                                      The default(i) cost of maintenance to equipment Outside Battery
              Maintenance OSBL: Battery Limit Battery Limit           Limits (OSBL) is based on a percent of OSBL capital cost.
                                       (OSBL)          (OSBL)
                                       30% of          30% of
                                      Variable        Variable        The default(i) fixed cost of utilities is based on a percent of the total
                   Fixed Utilities:                                   utility costs (less electricity).
                                    Utilities, less Utilities, less
                                     Electricity     Electricity
                                                                      The default(i) laboratory costs are on a percentage the total fixed
                                                                      labor cost entered above. This value represents labor costs
                       Laboratory: 30% of Labor 30% of Labor          required to perform laboratory functions associated with the
                                                                      manufacturing process (e.g., quality control and system
                                                                      monitoring).


                      Additional Impacts                                                        Definitions
 Note: C-PAT automatically calculates the emissions reductions associated with the combustion of fuels and
 electricity based on the utility values entered above (SOx, NOx, CO, Particulates, and CO2). If there are other
 environmental benefits the USER should enter those in the fields described below.
                                       Conventional      New
                                        Technology    Technology
                                                                      The percent change in solid and liquid waste components that
                                                                      results from utilizing this technology compared to the current
                                                                      industry practice, which is set by default(p) and shown in the Solid
           Solid or Liquid Wastes
                                           0%             0%          or Liquid Wastes query row.. Industry practice is based on
                       0.0 lbs/lbs :                                  literature values (view product details for source). A negative
                                                                      percent represents an increases in solid and liquid waste
                                                                      components discharged from this technology.
                                                                      The percent change in non-combustion air pollutants (e.g., VOCs)
                                                                      that result from utilizing this technology compared to the current
             Non-Combustion Air                                       industry practice, which is set by default(p) and shown in the Non-
                     Pollutants            0%             0%          Combustion Air Pollutants query row. Industry practice is based on
                    0.0 lbs/lbs :                                     literature values (view product details for source). A negative
                                                                      percent represents an increases in the non-combustion air
                                                                      pollutants for this technology.
                                                                      Justification of the reductions in solid or liquid wastes and non-
                  Justification Documents                             combustion air pollutants must be attached
C_PAT_variable inputs-08                                                                                                         7/19/2004

 Note: The products of many process are the raw materials for other process. All data is required for products. Only light
 green fields are required for Raw Materials. If an item is only used as a raw material some of the field do not require an
 entry.
  NEW PRODUCT, PROCESS or RAW MATERIAL
                                                                                           Definitions
              INFORMATION
                                                                  If the Raw material check box is checked this item will only appear
                                       Required
            Raw Material                                          under Raw Materials. Otherwise it will show under both raw
                                        Entry
                                                                  materials and product/process drop down menus.
                                                                  The name of the principal product, process or raw material. Data
                                                                  entered in this form are used for many of the default(p) values in
     Product, Process or Raw           Required                   the C-PAT program. If the USER enters a custom product or
         Material Name                  Entry                     process the USER is requested to completely fill out the form. If the
                                                                  USER is entering a raw material the energy and nameplate
                                                                  information is not required.
                                                                  The market unit (MU) of measurement (e.g., lbs, ton, gallon) is the
                                                                  typical unit used in pricing this product, process or raw material.
                           1           Required                   Note: Market units (MU) of measure may be different from the
            Market Unit                 Entry
                                                       MU         nameplate units (NU) that are used to describe plant capacity. For
                                                                  example: a product may be sold by the pound (MU = lbs) while the
                                                                  production plant's nameplate units (NU) are in tons.
                                                                  The commercial selling price of the product, process or raw
                                       Required
              Price $ 2                 Entry
                                                    $ per MU      material per market unit (MU). This price should represent the price
                                                                  for commercial (bulk) quantity purchases of the product.
                                                                  The total fuel, steam and other thermal energy requirements
                                                                  (excluding electricity) in Btu per market unit (MU) of product
                                                                  orprocess typically required to produce the product or operate the
                                                  Btu per (MU
         Fuel/Steam Data 3                                        process. Energy Savings are calculated based on the difference of
                                                  of Product)     the utilities and raw materials entered in the Project Details page.
                                                                  The values on the procees/product information page are for
                                                                  comparison.
                                                                  The total electrical energy requirement expressed in Btu per
                                                                  market unit of product or process. Use the conversion factor 3,412
                                                                  Btu per kWh. The C-PAT program calculates total energy and
                                                                  emissions based on EIA data for average U.S. grid connections.
                                                  kWh per (MU
         Electricity Data 4                                       Energy Savings are calculated based on the difference of the
                                                   of Product)    utilities and raw materials entered in the Project Details page. The
                                                                  values on the procees/product information page are for
                                                                  comparison. This value is not required if this product/process is
                                                                  used only as a raw material.
                                                                  The total feedstock energy requirements per market unit (MU) of
                                                                  product, process or raw material. Feedstock energy represents
                               5       Required   Btu per (MU     energy inherent in fuels that are taken into a manufacturing
         FeedStock Data                 Entry                     process and used as materials. Energy Savings are calculated
                                                  of Product)
                                                                  based on the difference of the utilities and raw materials entered in
                                                                  the Project Details page. This value is REQUIRED.

                                                    (MU of
                                                                  The total quantity of solid or liquid wastes associated with the
                                   6              Wastes) per
       Solid/Liquid Wastes                                        production of the NAMED product or process. This value is not
                                                    (MU of        required if this is a custom raw material.
                                                   Product)
                                                    (MU of
                                                                  The total quantity Non-Combustion wastes associated with the
                                                  Wastes) per
   Non-Combustion Emissions 7                                     production of the NAMED product or process. This value is not
                                                    (MU of        required if this is a custom raw material.
                                                   Product)
                                                                  The Nameplate unit (NU) of measurement is unit name typically
                                                                  used to describe the annual production capacity of a plant. This
                                       Required                   nameplate unit (NU) may be different than the market unit (MU)
  Production/Nameplate Units8           Entry
                                                       NU         used above. For example: the annual nameplate unit (NU) of
                                                                  production of a plant may be in tons while the product or raw
                                                                  material is sold in market units (MU) of pounds.
C_PAT_variable inputs-08                                                                                                   7/19/2004

                                                            The numeric ratio of nameplate units (NU - item 9 above) compare
                                                            to the market units (MU - item 2 above). For example: 2,000 would
  Ratio of Nameplate to Market       Required               be the ration if the nameplate units (NU) were in short tons and the
                  9                   Entry
                                                NU per MU   market units (MU) were in pounds. This ratio is VERY IMPORTANT
             Unit
                                                            in order for the calculation performed by C-PAT to be of the correct
                                                            magnitude.

                           10                               The numeric value for the annual total US consumption of this
       Annual Market Size                          NU       product or process in nameplate units (NU).
                                                            The year the data for which the market size data is reported. C-
      Market Year for Data11                                PAT calculates future market size based on the annual market
                                                            growth rate form this year forward.
                                                            The current market growth rate in the US for this product or
  Annual Market Growth Rate12                      %        process.

                                13                          The average plant capacity size for your process/product in
     Nominal Plant Capacity                       (NU)      nameplate unit measurements.
                                                                        Project Summary
                                                                  Energy Impacts for Project
                                     2010                                   2015                             2020                      2025                       2030
                       The data by year are calculated from the default(p) Product/Process information from the fomula below, where MS is the market size for the year (p) of
  MARKET SIZE in
                       the data that has been entered, MGR is the market growth rate and y is the year for which the calculation is being performed.
Nameplate Units (NU)   MS(y) = MS(p) x (1 x MGR)^(y-p)

                       The accelerated market penetration value is the portion of the market in which the new technology is deployed for a given year. This value is based on:
                       the total market size in a given year (MS(y)) as calculated above multiplied by the percent of deployed new technology in a given year.

                        - The percent of deployed new technology in a given year is calculated from the classic S shaped market deployment curves (see C-PAT USER
                       Handook). The rate at which the percent deployment changes is a function of how high the new technology's calculated ROI is above the conventional
                       technology's rate. New technologies ROIs that do not surpass the conventional technology's ROI will not be deployed and have a deployment rate of
  ACCELERATED          zero (i.e., they have no market penetration). Projects with very high ROIs will be deployed rapidly (see Curve A below). However, no project is assumed
    MARKET             to have "Shutdown Economics" defined as a condition where a new technologies operatings costs and costs of capital are so significantly lower than the
  PENETRATION          operatings costs of fully capitalized old technology plants it would economically advantages to shutdown the old plant. Note: If a project did concievably
                       have "Shutdown Economics" the years accelerated would likely be zero since industry would be pursing this technology with no aid from the public.

                         - The magnitude of the percent deployed is limited by the "Available Market Constraint Factor." This factor assumes that the available market for a new
                       technology is limted in any one year to the gap between new market growth and the replacement of retirering equipment. The portion of retireing
                       equipment is assumed to be liner and is equal to the market size in the year of technology introduction divided by the operational life of the project
                       (default(p) = 25 years). See Curve B below.

  ACCELERATED
                       The number of units deployed in any given year is equal to the percent of deployed new technology
 UNITS DEPLOYED

                         Available Market Constraint
                                                                                              1

  400                                                                                       0.9

  350                                                                                       0.8

  300                                                                                       0.7

  250                                                                                       0.6

  200                                                                                       0.5

  150                                                                                       0.4

  100                                                                                       0.3

   50                                                                                       0.2

    0                                                                                       0.1
    2000      2005      2010          2015         2020       2025        2030
                                                                                              0
                                                                                              2000         2005         2010         2015         2020        2025         2030
                          Growth in Market     Retirements
                                                                               Energy Savings
Heat/Steam Energy        The Heat/Steam Energy Savings are calculated by multiplying the Accelerated Units Deployed times the Nameplate Capacity times the Btu consumed per
Savings (trillion Btu)   Market Unit times the Market Unit to Nameplate Unit ratio.

Electricity Savings
(trillion Btu)
Feedstock Energy
Savings (trillion Btu)

                                                             Estimated Annual Operating Cash Flows
                                      Ancillary
                                      Capital:
Project Capital:                      $1,500,00                ROI:
$5,000,000               |            0         |              500%
100% Capacity Annual     Raw                    Utilities:                 Consumables:                   Labor:
Costs for:               Materials: $ |         $0             |           $0                |            $306,600
                                                                                                 Profit                                                                    Discounted
                         Production  Sales          Variable       Fixed       Startup                     Fixed      Working        Total          Taxes      Net Cash
         Year                                                                                    Before                                                                    Cash Flow
                            Rate    Revenue          Costs         Costs      Expenses                     Capital    Capital     Depreciation       37%         Flow
                                                                                                  Tax                                                                        NPV=0
         2009
Production Rate          The annual production as a Percent of nameplate capacity
Sales Revenue            Annual sales revenue from product and byproducts
Variable Costs           Annual variable costs. These are costs that are linked to the production capacity of a system. They include raw materials, ...
                         These expenses are inccured whether the a facility is operating or not. They represent costs that are invarient with the amount of production. Fixed costs
Fixed Costs              include: insurance, rents, property taxes, a portion of utilites and labor.
                         These expenses are non-recurring costs that cover expenses between construction and when the plant is operable at an acceptable level of capacity.
Startup Expenses         They typically include hiring extra tempory labor, minor alterations to equipment,instrumentation, etc.. The tool assumes 9% of the sum of ISBL and OSBL.

Profit Before Tax        The profit before tax is defined as sales revenue minus the sum of variable costs, fixed costs, startup expenses and fixed capital.
Fixed Capital            The fixed capital represents the cost of building the physical process itself.
                         The working capital typically represents the amount of money invested in 1. Raw material and supplies carried in stock (typically one month), 2. Cash kept
                         on hand for payment of operating expenses (salaries, utilites, ...) 3. Other accounts payable and taxes payable and 4. Accconts receivable. Working
Working Capital          Capital is assumed to be 20% of the sum of ISBL and OSBL.
                         These values are set internally and cannot be modified. The amounts are based on five-year period Modified Accelerated Cost Recovery System
Total Depreciation       (MACRS) depreciation schedules, the accounting standard used in the industry.
                         The gross cash flow multipied by a default(i) tax rate. The default tax rate represents the avarage sum of all (non-payroll) taxes. This would include federal,
Taxes (37%)              state and local taxes. The program uses a default value of 37% which is a typical industrial tax burden.
Net Cash Flow            Net Cash
Discounted Cash          Discounted Cash Flow (DCF) takes into account the time value of money and is based on the amount of the investment that is unreturned at the end of
Flow                     each year during the estimated life of the project.
Net Present Value
(NPV)                    Represents the relationship between a project's expected cash flow and the cost of capital.
                         The net amount of money obtainable from the sale of used property over and above any charges involved in removal and sale. The salvage value equals
Salvage Value            10% of the Fixed Capital.
Local Taxes and          For purpose of comparison, local taxes and insurance are assumed to be 1% of the total amount of ISBL and OSBL investment. This value is internally
Insurance                calculated and cannot be changed.
          2025
* - Salvage value equals 10% of Fixed Capital, Inflation is equal to 0%
                                                                       Project Summary
                                                                Environmental Impacts for Project
                                         2010                                  2015                            2020                     2025                      2030
POLLUTANT REDUCTIONS (Metric Tons) - This table provides a summary of the pollutant reductions resulting from the new product or technology for Carbon, Nitrogen
Oxides, Sulfur Oxides, Carbon Monoxide, Volatile Organic Compounds, and Particulates. The table also provides the environmental benefits regarding the solid-liquid wastes and
non-combustion emissions.
Carbon (tCE/yr*10^9)
Nitrogen Oxides (t/yr)
Sulfur Oxides (t/yr)
Carbon Monoxide (t/yr)
Volatile Organic
Compounds (t/yr)
Particulates(t/yr)

OTHER ENVIRONMENTAL BENEFITS
Solid Liquid Wastes
Non-Combustion
Emissions

								
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