scholarly journals Economic Feasibility of Semi-Underground Pumped Storage Hydropower Plants in Open-Pit Mines

Energies ◽  
2020 ◽  
Vol 13 (16) ◽  
pp. 4178 ◽  
Author(s):  
Michael Wessel ◽  
Reinhard Madlener ◽  
Christoph Hilgers
Keyword(s):  
Power Plant ◽  
Value At Risk ◽  
Financial Risk ◽  
Net Present Value ◽  
Analytical Framework ◽  
Open Pit Mine ◽  
Economic Feasibility ◽  
Production Costs ◽  
Open Pit ◽  
Specific Production

This work aims at the economic evaluation of a semi-underground pumped hydro storage power plant erected in an abandoned open-pit mine. For the exploratory model-based analysis, we develop and apply both a simple deterministic and a stochastic net present value (NPV) approach, the latter of which uses a Monte Carlo simulation to account for revenue uncertainty from electricity price fluctuations. The analytical framework developed is applied to two promising sites in the Rheinland region in Germany, Hambach and Inden, making reasonable parameter value assumptions and considering and ignoring the lengthy duration of lower reservoir flooding. The investor’s value-at-risk is computed for alternative performance indicators (NPV, net cash recovery, profit-to-investment ratio, and specific production costs) to compare the different outcomes in terms of the project’s financial risk distribution. Calculations show that a semi-underground pumped hydro storage power plant in an abandoned open-pit mine can be constructed at reasonably low investment costs and operated at low specific production costs. However, because the investment has to be made long before the pit lake is (naturally) flooded—a process that for realistic flow rates may take up to 20 years—the project is highly uneconomical and would require substantial subsidies, as compared to a situation where flooding happens immediately.

scholarly journals Análise financeira de sistemas de produção para novilhas em pastagem de Brachiaria brizantha

2015 ◽  
Vol 64 (246) ◽  
pp. 123-130 ◽  
Author(s):  
A. A. C. O. Peres ◽  
A. A. Santos ◽  
C. A. B. Carvalho ◽  
N. Brandalise
Keyword(s):  
Production System ◽  
Financial Risk ◽  
Net Present Value ◽  
Production Systems ◽  
Cash Flows ◽  
Economic Feasibility ◽  
Present Value ◽  
Savings Accounts ◽  
Return On Capital ◽  
Mineral Mixture

The objective was to determine the economic feasibility and financial risk of different production systems for dairy heifers grazing on Xaraes pallisadgrass pasture, during the year, with roughage supplementation of sugarcane, during the autumn-winter and the supply of mineral mixture (commercial and selective). Each production system was characterized and quantified in accordance with the administrative and livestock realized during the period February 2006 to March 2008. The cash flows were constructed for production system in a horizon of 12 years, being applied discount rates of 6, 10, 14, 18 and 22 % per year. About the cash flows were determined economic indicators of profitability: net present value and internal rate of return. The sensitivity and financial risk analyzes were realized. The production systems showed positive net present value at a discount rate of 14 % per year, which reflects the return on capital invested, compared to savings accounts. The trading price of the heifer is the item of greatest influence on economic results. The production systems had low financial risk of becoming unviable, given the price fluctuations that occurred in the market. The production systems are financial viable to exploration.

scholarly journals Study on Implementation of Rooftop Photovoltaic Power Plant as an Effort to Attain a Sustainable Campus

2019 ◽  
Vol 4 (11) ◽  
pp. 21-25
Author(s):  
Razali Thiab ◽  
Munira Amudy ◽  
T. A. Rizal
Keyword(s):  
Power Plant ◽  
Electrical Power ◽  
Economic Feasibility ◽  
Production Costs ◽  
Electricity Production ◽  
Master Plan ◽  
Environmental Preservation ◽  
Work Activities ◽  
Roof Area ◽  
The University

The concept of Green Campus means that the University has implemented environmental preservation activities, energy efficiency, and deliver comfortable conditions to support learning and work activities. The activity to harvest renewable energy is one of several approaches towards a sustainable campus. This study aims to analyze the technical and economic feasibility of a solar power plant erected on the roof of buildings within the campus area. Based on the University of Samudra development master plan, it has carried a technical and financial feasibility study with the assists of the System Advisor Model (SAM) software. The analysis shows that the current roof area is possible to generate electrical power of 3 MW, with economic calculations of electricity production costs of 11.7 cents/kWh.

scholarly journals Analysis of the variables: Commodity price and discount rate on long-term open pit mine planning

2021 ◽  
Vol 6 (2) ◽  
pp. 142-150
Author(s):  
Fontes MP ◽  
Koppe JC ◽  
Silva Neto JA
Keyword(s):  
Discount Rate ◽  
Net Present Value ◽  
Market Price ◽  
Commodity Price ◽  
Open Pit Mine ◽  
Mine Planning ◽  
Open Pit ◽  
Economic Criterion ◽  
Physical Constraints

Long-term open pit mine planning is a complex process which deals with numerous uncertainties, whether they are economical (commodity price, operational costs, production schedule, discount rate, inflation, among others); geological (grade distribution, density, hardness, etc); or physical constraints (property limits, environmental issues, legislation, etc). In this context, this paper aims to evaluate the effects of the variation of two important variables: commodity price and discount rate, with regard to the economic criterion, represented by the Net Present Value (NPV) of the mining business. Starting from a baseline value of US$ 80/t, the commodity (phosphate rock was used as a case study) price was varied within a 50% range, above and below the baseline value, obtained from historic values from the last 5 years. The discount rate values adopted in the analyses were 6%, 8%, 10%, 12%, 14%, 16%, 18% and 20%. The results showed increases in the market price yielded higher NPV and life of mine values. On the other hand, it was noted that increases in the discount rate can significantly alter the NPV, materially reducing the value of the mining undertaking. It is also worth noting that, in contrast to more robust approaches such as Real Options Theory (ROT), traditional Discounted Cash Flow (DCF) methods, such as NPV, assume variables, such as commodity price, to be fixed, which could either lead to the undervaluation or overvaluation of a project.

scholarly journals Project optimization

2015 ◽  
Vol 68 (1) ◽  
pp. 97-102 ◽  
Author(s):  
Carla De Carli ◽  
Peroni Rodrigo de Lemos
Keyword(s):  
Net Present Value ◽  
Underground Mining ◽  
Mineral Resources ◽  
Mineral Deposit ◽  
Economic Feasibility ◽  
Open Pit ◽  
Optimum Depth ◽  
Combination Of Methods ◽  
Definition Of ◽  
Project Optimization

A mineral deposit can be exploited by underground methods or by open pit methods, defined according to their characteristics, especially in relation to depth and geometry of the ore body and the economic feasibility of the methods. However, there are cases in which the alternative that represents the best return for the project is the application of combined methods, i.e., the open pit followed by underground mining. In these situations, the major difficulty is the definition of the transition point of methods, seeking to maximize the net present value of the project and the use of mineral resources. The premature suspension of activities in the open pit, as well as advancing beyond the optimum depth, can derail the implementation of the combination of methods, so it is important to analyze the project not only individually but also in an integrated way.

The Application of Air-Space with Mixed Emulsion Explosive in Open-Pit Mines

2011 ◽  
Vol 84-85 ◽  
pp. 657-661
Author(s):  
Jun Guo ◽  
De Qing Gan ◽  
Yu Zhang ◽  
Guang Fu Rong
Keyword(s):  
Economic Benefits ◽  
Open Pit Mine ◽  
Production Costs ◽  
Open Pit ◽  
Emulsion Explosive ◽  
Open Pit Mines ◽  
Air Space

Based on applications in different open-pit mine and analysis of economic benefits, the paper describes the mixed emulsion explosive productive technology and the mechanism of air-space blasting, which has great value in reducing the production costs and bringing huge blasting economic benefits.

scholarly journals Sizing and Economic Feasibility of Different Types of Solar Collectors for a Milk Producing Property in the Tropic

2018 ◽  
Vol 11 (1) ◽  
pp. 344 ◽  
Author(s):  
Eloiny G. Barbosa ◽  
Marcos E. V. Araujo ◽  
Elisa G. Barbosa ◽  
Maria J. Moraes ◽  
Javier H. F. Heredia ◽  
...  
Keyword(s):  
Solar Collector ◽  
Net Present Value ◽  
Dairy Farm ◽  
Economic Feasibility ◽  
Hot Water ◽  
Production Costs ◽  
Energy Access ◽  
Hygiene Measures ◽  
Flat Plate Solar Collector ◽  
Evacuated Tube

To obtain quality milk, several hygiene measures must be taken during the milking process, especially cleaning the milking parlor and equipment using hot water. Thus, the objective of this study was to carry out the sizing and economic feasibility of two solar water-heating systems: flat plate solar collector (FPC) and evacuated tube solar collector (ETC) to clean milking parlors in the interior of Brazil. The sizing and economic feasibility of applicability of this study was carried out for a dairy farm located in the city of Anápolis-GO, Brazil. We calculate the energy produced by the solar collector, the necessary number of collectors, the net present value (NPV) and the time of return (RT) for all systems. The ETC presented higher energy produced per unit area (8590 to 12 979 kJ m-2 day-2) than the FPC (6472 to 8699 kJ m-2 day-2). Furthermore, it presented a total required area around 33.5% lower when compared to the FPC. The system that obtained the lowest total cost was the ETC with approximately US$ 34 441.00. The two systems had positive NPV, and for ETC, this value was 7.2% higher. The return times for FPC and ETC were 3 years and 2 months and 2 years and 10 months, respectively. Both systems have proven their economic viability for heating water from milk producing properties, and may be an option for regions without energy access. In addition, the use of these systems contributes to the reduction of production costs and environmental impacts.

scholarly journals Mining Risks at Exploitation in Roşia Poieni Open Pit Mine, Romania

Mining Revue ◽  
2021 ◽  
Vol 27 (1) ◽  
pp. 1-11
Author(s):  
Mihaela Toderaş
Keyword(s):  
Financial Risk ◽  
Raw Materials ◽  
Open Pit Mine ◽  
Open Pit ◽  
Natural Phenomena ◽  
Work Area ◽  
Geological Conditions ◽  
Important Field ◽  
Potential Risks ◽  
Prevention Plan

Abstract The mining sector is a particularly important field that has the ability to support the economic development of a country by supplying various mineral products that are used as raw materials in other sectors of activity. When the depth at which a deposit is located and the geological conditions allow, the exploitation of useful mineral substances is realized through open-pit mine. The aim of this paper is to analyze the malfunctions that could occur and cause susceptible incidents and that could have consequences on staff safety and the environment. These malfunctions can have different causes: either an internal origin of the mining unit, or in natural phenomena. In this paper are identified and analyzed the potential mining risks that may occur in the Roşia Poieni open pit mine. The guidelines underlying the identification of these risks took into account three main principles: reducing risks for people, ensuring their security and at the same time limiting the risks on the property, respectively the financial risk for the mining unit. Acknowledge these risks, allows the delimitation of areas that are directly or indirectly exposed to potential risks and the establishment of specific measures for prevention, protection and security regarding the realized activities. Depending on the potential mining risks identified, we have made a hazard map that can be used to develop a risk prevention plan, taking into account the presence of several types of risks that may overlap in the same work area of the quarry.

scholarly journals Reducing the Superheating of Extraction Stream on Advanced-Ultra Super Critical Power Plants with Regenerative Turbines in South Korea: An Economic Analysis

Energies ◽  
2019 ◽  
Vol 12 (9) ◽  
pp. 1681
Author(s):  
Dong-Jin Cho ◽  
Eul-Bum Lee ◽  
Jae-Min Cho ◽  
Douglas Alleman
Keyword(s):  
Power Plant ◽  
Economic Analysis ◽  
South Korea ◽  
Power Plants ◽  
Net Present Value ◽  
Economic Feasibility ◽  
Condition Optimization ◽  
Degree Of Extraction ◽  
Plant Efficiency ◽  
Power Plant Efficiency

In this study, an advanced-ultra super critical (A-USC) simulation model was developed using the Performance Evaluation of power system efficiencies (PEPSE) software and data collected from a 500 MW ultra-supercritical (USC) coal-fired power plant in South Korea. Using the operational USC and a typical A-USC power plant steam conditions, the model analyzed the impacts of adding an additional feedwater heater (FWH) and reheater to the baseline single reheater (SR) and 8 FWH case. Through the process of introducing reheat and/or regenerative cycles, the authors found: (1) A-USC steam conditions offers an approximate 4% power plant efficiency increase in comparison to the baseline USC steam conditions and; (2) power plant efficiencies increase approximately 1.5% when a 9th FWH and double reheater are added, however; (3) this also results in an approximate 64 °C increase in the superheating of extraction stream. This excessive rise in the superheating of extraction steam was found to cause overall energy loss, reducing the overall efficiency of the power plant. Therefore, it was surmised that if the increase in the superheat degree of extraction steam from the improved steam cycle, which can effectively reduce, the efficiency of the power plant could be further improved. To determine the efficiency variations based on the reduction of the superheat degree of extraction steam, the authors applied a regenerative turbine (RT) to the model. Introducing the RT to the A-USC DR and 9 FWH was found to decrease from the average extraction steam temperature from 221 °C to 108 °C and result in an increase in power plant efficiency of approximately 0.3% to 49.5%. An economic analysis was also performed to assess the fiscal feasibility of adding an RT. Assuming the initial investment to be USD 1409 million, implementing an RT equated to a net present value increase of approximately USD 33 million as compared to that of similar life (30 years of durability) expectancy of A-USC without using an RT. The findings of this study have the potential to improve South Korea’s energy policy, reducing the superheat degree of extraction steam that rises excessively during A-USC steam condition optimization. While this study is focused on South Korea, said findings are also generalizable to worldwide energy policies, serving as an effective method to not only increase system efficiencies, but enhance the economic feasibility as well.

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