Biomedical Engineering Reference
In-Depth Information
11.4.5
Analysis Methods for Cellulose Biotransformation
Process Technology and Economy
The success of cellulose biotransformation technology is a basic prerequisite for the
industrialization development process. Cellulose biomass conversion technologies
become economically viable depending on the analysis of economics. Simply,
cellulose economic systems engineering is a technical success in helping cellu-
lose biotransformation pathways achieve industrialization, namely, the analysis of
establishment costs and expected economic benefits in the process of complete
production plants. This economic analysis includes (1) cost estimates, such as
capital cost estimates, operating cost estimates; (2) analysis of profitability and
solvency; (3) the basic statements of project economic evaluation; (4) uncertainty
analysis, such as sensitivity analysis, break-even analysis, and probability analysis;
and (5) process design [
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].
11.4.5.1
Cost Estimates
The cost estimate includes two main aspects: capital cost and operating cost. The
former is a cost associated with factory establishment, such as land preparation and
a production workshop. The latter costs are associated with factory operation, such
as labor, raw materials, and utilities (steam, water, electricity) [
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].
The estimated capital cost of a project generally includes the construction of
production equipment and supporting instruments; equipment; instrumentation and
pipe installation and labor costs; construction costs, such as land costs, building
and project contracting costs; administrative expenses; insurance and taxes; and
emergency costs.
The estimated project operating costs generally include raw materials, utilities,
labor, management, research and development, patent fees, cost of sales, plant
maintenance, insurance, and taxes.
11.4.5.2
Profitability Analysis and Solvency Analysis
Profitability analysis calculates the main indicators of the financial internal rate and
period for recovery of investment. According to the characteristics of the project
and the actual needs, the financial net present value, investment profit, investment
profit rate, and capital profit margin are calculated. The solvency analysis calculates
the asset-liability ratio, loan repayment period, and current ratio indicators [
173
].
(1) Financial internal rate of return
The project financial internal rate of return is the discount rate when cumulation of
annual net cash flow equals zero during the entire calculation period. It reflects the
profitability of the project occupied funds and is the main indicator for evaluating
the dynamic profitability of the project.
