Table 2 nth-plant assumptions for TEA [49, 50]
From: Techno-economic and resource analysis of hydroprocessed renewable jet fuel
Economic parameters | Assumed basis |
|---|---|
Basis year for analysis | 2014 |
Debt/equity for plant financing | 60%/40% |
Interest rate and term for debt financing | 8% annually/10Â years |
Internal rate of return for equity financing | 10% |
Total income tax rate | 35% |
Plant life | 30Â years |
Plant depreciation schedule | 7Â years |
Plant salvage value | 0 |
Construction period | 3Â years |
Fixed capital expenditure schedule | 8% in year 1, 60% in year 2 and 32% in year 3 |
Start-up time | 0.5Â year |
Revenues during startup | 50% |
Variable costs during startup | 75% |
Fixed costs during startup | 100% |
On-stream percentage after startup | 90% |
Site development costs | 9% of ISBL, total installed cost |
Warehouse | 4% of ISBL |
Working capital | 5% of fixed capital investment |
Indirect costs | % of total direct costs |
|---|---|
Prorated expenses | 10 |
Home office and construction fees | 20 |
Field expenses | 10 |
Project contingency | 10 |
Other costs (startup and permitting) | 10 |
Fixed operating costs | Assumed basis |
|---|---|
Total salaries | 60 employees |
Benefits and general overhead | 90% of total salaries |
Maintenance | 3% of ISBL |
Insurance and taxes | 0.7% of fixed capital investment |