Skip to main content

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/10 years
Internal rate of return for equity financing 10%
Total income tax rate 35%
Plant life 30 years
Plant depreciation schedule 7 years
Plant salvage value 0
Construction period 3 years
Fixed capital expenditure schedule 8% in year 1, 60% in year 2 and 32% in year 3
Start-up time 0.5 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
  1. ISBL inside battery limits (of the plant)