1 / 16

Example

Example. Firm that cleans used metal parts. Measure Baseline Waste Generation. Fugitive emissions. 50 gallons. 4,000 gallons. 3,950 gallons. CLEANING PROCESS. New solvent. Waste disposal. Measure Baseline Costs. Input solvent $3.50/gallon × 4,000 = $14,000 per year Waste disposal

hayes-decker
Download Presentation

Example

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Example • Firm that cleans used metal parts

  2. Measure Baseline Waste Generation Fugitive emissions 50 gallons 4,000 gallons 3,950 gallons CLEANING PROCESS New solvent Waste disposal

  3. Measure Baseline Costs • Input solvent • $3.50/gallon × 4,000 = $14,000 per year • Waste disposal • $2.50/gallon × 3,950 = $9,875 per year

  4. Assumptions • 5% inflation rate • Real price increase for solvent of 1% annually • Real price increase for disposal of 4% annually • Discount rate of 6%

  5. Baseline Costs

  6. Identify Options • 1. Recycle solvent • 2. Use non-hazardous cleaning method

  7. Measure Waste Generation for Option 1 Fugitive emissions 50 gallons 360 gallons 3,950 gallons CLEANING PROCESS New solvent RECYCLE 310 gallons 3,640 gallons Waste disposal

  8. Measure Benefits Option 1 • No change in production of output, so no revenue change for output • No revenue from recycled solvent because it is used rather than sold.

  9. Measure Costs Option 1 • Investment Expense ($66,500) • $40,500 Tanks, pumps, mixers • $20,000 Installation (design, piping, labor) • $6,000 Contingency • Operating Expense • $240 Utilities • $5,000 Operations labor • $3,325 Maintenance • $1,260 New solvent (360gallons @ $3.50 per gallon) • $775 Waste disposal (310 gallons @ $2.50 per gallon) • $120 for training $8,565

  10. Assumptions • 10 year equipment life, no salvage value • Straight-line annual depreciation (divide capital cost by 10) • Cost of capital is 12% annually for 3 year equal payments • 5% inflation rate • Real price increase for solvent of 1% annually • Real price increase for disposal of 4% annually • Discount rate of 6%

  11. Measure Waste Generation for Option 2 4,000 gallons 4000 gallons CLEANING PROCESS New solvent Non-hazardous waste disposal to sewer

  12. Assumptions • 5% inflation rate • Waste solvent can be sewered at negligible cost • Discount rate of 6%

  13. Measure Costs Option 2 • 4000 gallons solvent at $4.60/gallon. • $120 for training

  14. Outcome? • Comparing recycling to current practice, would save $81,317.23 over 10 years • Comparing material substitution to current practice, would save $75,702.02 over 10 years

  15. What is Life Cycle Analysis? • A tool to understand environmental impacts associated with products, processes, and activities • LCA is a systems approach to evaluating environmental consequences of a product or process • It takes a “cradle to grave” or “cradle to cradle” perspective. • A systematic set of procedures for examining the environmental impacts of a product or service throughout its life cycle

  16. Applications • Alternative Fuels/energy sources • Alternative materials(Aluminum vs. Steel body, Asphalt vs. concrete, wood vs. brick • Alternative processes (Corn-biomass ethanol) • Alternative products (cloth diapers vs. disposable diapers) • Alternative packaging (cans vs. tetra-packs) • Alternative end of life management options (recycle, incinerate, dispose) • Environmental, economic tradeoffs

More Related