Life Cycle Costs for Acquisition
This one-page guide helps evaluate costs for acquisition.
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This one-page guide helps evaluate costs for acquisition.
This report summarizes the Phase 2 achievements of the Wind Turbine Materials Recycling Prize project led by Critical Materials Recycling (CMR) in partnership with Ames National Laboratory. The team demonstrated the technical feasibility and economic viability of recovering and reusing rare-earth Nd-Fe-B magnets from end-of-life (EOL) wind turbine generators. Through mechanical disassembly, demagnetization, and precision processing, magnets were harvested and characterized to assess structural, compositional, and magnetic properties. Results showed that recovered magnets performed on par with commercial-grade counterparts, enabling their integration into actuator and motor prototypes without redesign. System-level modeling and finite-element simulations validated operational performance, while Life Cycle Cost (LCC) analysis revealed up to 20% material cost savings and 2–3% reductions in overall motor system costs. Life Cycle Assessment (LCA) further confirmed substantial environmental benefits, including a ~94% reduction in global warming potential relative to virgin magnet production. The project’s success was enabled by a tightly integrated partnership between industry and national lab experts, illustrating a viable path for domestic magnet-to-magnet recycling. These findings support a scalable, circular solution for rare-earth material recovery, reducing dependence on imported critical minerals and advancing sustainable clean energy technologies.
The National Renewable Energy Laboratory (NREL) conducted a cost analysis for emission control technologies under contract to the California Air Resources Board (CARB). CARB sought incremental cost analysis for emission control technologies for on-road heavy-duty (HD) engines, used in vehicle greater than 14,000 pounds (lbs) gross vehicle weight rating (GVWR) to achieve oxides of nitrogen (NOx) emissions rates significantly lower than those required by current emissions standards. Specifically, incremental costs (without any retail price mark-up) were estimated for representative diesel, natural gas, and gasoline engine and emission aftertreatment systems that were selected to represent potential technology packages that could achieve 0.02 grams per brake horsepower hour (g/bhp-hr) NOx on certification test cycles, including a proposed updated certification test cycle that includes additional low load operating conditions. NREL surveyed stakeholders including industry association groups, Tier 1 suppliers, and engine original equipment manufacturers (OEMs) to estimate incremental direct and indirect costs. Incremental costs were considered for current engine full useful life (FUL) definitions, as well as with proposed increased FUL and warranty period. The incremental costs were subsequently incorporated in life-cycle cost analyses examining the incremental engine and aftertreatment costs along with life-cycle costs over the various engine FUL scenarios. Life-cycle costs analysis included the incremental upfront cost, fuel consumption changes (changes in fuel economy), diesel exhaust fluid (DEF) consumption changes, and the maximum FUL of the aftertreatment package (major overhaul intervals).
In agricultural and industrial equipment, both new and remanufactured systems are often available for warranty coverage. In such cases, it may be challenging for equipment manufacturers to properly trade-off between the system reliability and the cost associated with a replacement option (e.g., replace with a new or remanufactured system). To address this problem, we present a reliability-informed life-cycle warranty cost (LCWC) analysis framework that enables equipment manufacturers to evaluate different warranty policies. These warranty policies differ in whether a new or remanufactured system is used for replacement in the case of product failure. The novelty of this LCWC analysis framework lies in its ability to incorporate real-world field reliability data into warranty policy assessment using probabilistic warranty cost models that consider multiple life cycles. First, the reliability functions for the new and remanufactured systems are built as the time-to-failure distributions that provide the best-fit to the field reliability data. Then, these reliability functions and their corresponding warranty policies are used to build the LCWC models according to the specific warranty terms. Finally, Monte Carlo simulation is used to propagate the time-to-failure uncertainty of each system, modeled by its reliability function, through each LCWC model to produce a probability distribution of the LCWC. The effectiveness of the proposed reliability-informed LCWC analysis framework is demonstrated with a real-world case study on a transmission used in some agricultural equipment.
This report demonstrates the capabilities of the net-zero microgrid (NZM) Xendee platform for modeling an SR module with electricity, heat extraction and thermal storage in microgrids configurations. The model effectively captures the most important technical and economic considerations for SR technology specific analysis: cost and operational characteristics of SR technology and financial costs and incentives. The model can analyze multiple scenarios to establish metrics for cost-competitive and zero-carbon microgrids connected to the grid or completely isolated. The model is fully integrated within the Xendee platform for modeling and analysis of clean energy microgrids with storage and generation from renewable energy sources. The model captures the capabilities, constraints, and nuances of SR by incorporating parameters related to plant economics, design efficiency and performance, plant operation and component and fuel lifespan. The cost and operational parameters modeled in the SR module are specific to the technology selected for integration in the microgrid. Cost parameters recognize advanced nuclear technology for modular production and installation based on economies of scale from factory manufacture and related commissioning, and cost reduction through technology maturation—first-of-a-kind (FOAK) and nth-of-a-Kind (NOAK). The cost parameters include installation, operations and maintenance (O&M), fuel refueling cycle, and reactor life. Installation cost reflects economies of scale due to unit sizing at scale and colocation. O&M economies of scale for both fixed- and variable-cost fuel life-cycle costs are incurred at every refueling interval, with separate front- and back-end fuel costs, as well as waste-handling and disposition costs. This report investigates key characteristics of different SR technologies suitable for microgrid applications, including design principles, sizing, coolant properties, temperature ratings, fuel structures, and life-cycle considerations. This also includes fuel technologies applicable to these SR systems, alongside strategies for nuclear-waste and spent-fuel management and approaches to address safety, security, and proliferation challenges. Four primary groups of SR technologies are examined: water-cooled, liquid-metal-cooled, high-temperature gas-cooled, and molten-salt-cooled systems. In this report, an initial guideline for technology selection is established, aligning the characteristics of the technologies with the requirements of microgrids. The selection of technology in a microgrid is influenced by various factors, including financial capacity, location and accessibility, demand type and characteristics, reliability and resilience requirements, area constraints, and the lifespan of the microgrid. The types of electrical and non-electrical applications within the microgrid also play a significant role in technology selection. The characteristics of SRs, such as their smaller size, modularity, transportability, long refueling interval, improved safety features, ability to operate in autonomous or semi-autonomous mode, and provision of high-grade heat, are particularly appealing for microgrids. Furthermore, a list of considerations for implementing SRs in microgrids is outlined. The SR model is created to be continuously improved with the acquisition of actual data on investment and operational costs, experience with supply chains, production at scale, and field deployments. In the near term, performance data on applications in microgrids will become available from lessons learned from laboratory tests, such as those planned for the Microreactor Applications Research Validation and Evaluation Project (MARVEL), led by Idaho National Laboratory (INL). The SR model incorporates scenario data and known SR design specifications, enabling technoeconomic analysis for SR deployment in microgrids. It specifically considers the distinctive attributes of SRs as generators in technoeconomic studies. SRs can be modeled and analyzed with generation from renewable-energy sources, energy storage, and flexible loads over a range of functionality and applications. This offers a comprehensive tool for feasibility studies, scenario development, and sensitivity analysis for “what-if” consideration of any range of assumptions about SRs in microgrids and other aggregations of distributed-energy resources, including virtual power plants.
REopt is a techno-economic analysis platform accessible as a user-friendly web tool that facilitates life cycle cost analysis of distributed energy resources. It is typically used for preliminary assessments to identify the least-cost technology mix, system sizing, and operations strategies towards agency cost savings and resilience goals. This guide identifies and explains REopt inputs for federal life cycle cost analyses, modified from their commercial default values. These federal input defaults are based on statutory requirements for life cycle cost analyses of energy conservation measures at federal facilities per 10 CFR 436 Subpart A.
The C2SAGES project evaluated the feasibility of a community geothermal system for the planned Windy Ridge affordable housing development in Hinesburg, Vermont. Led by GTI Energy with Vermont Gas Systems, LN Consulting, NREL, and Frontier Energy, the work assessed technical design, energy performance, costs, business models, community engagement, maintenance, workforce development, and permitting. The proposed system was designed to serve 100% of the development’s heating, cooling, and domestic hot water loads. Compared with a baseline using air-source heat pumps and natural gas water heating, the geothermal system was estimated to reduce HVAC and domestic hot water energy use by about 45% to 48%, lower operating and maintenance costs, and reduce 30-year life-cycle costs by 37% for Phase 1 and 10% for Phase 2. Technical testing and modeling indicated that the Windy Ridge site is suitable for a community-scale geothermal system. The project also developed borehole field layouts, piping concepts, pump house designs, controls, maintenance plans, and supporting engineering drawings. The business model analysis found that first cost, ownership structure, and customer affordability remain major deployment challenges. Utility-led maintenance and operation were viewed favorably, but traditional utility cost-recovery models may require subsidy or revised financing structures to be practical for affordable housing. Community engagement highlighted the need for clear public education, transparent financing, reliable long-term maintenance, trained technicians, and the potential to pair geothermal systems with weatherization. Overall, the report concludes that community geothermal is technically feasible and offers meaningful energy, emissions, and life-cycle cost benefits, but broader deployment will depend on workable financing models and workforce readiness.
The concept of integrated sustainable product design has recently emerged, aiming to incorporate downstream life cycle performance into the initial product design to enhance sustainability. Various sustainable product design tools based on life cycle assessment or quality function deployment have been established while the impact of reliability on circular practices has received limited attention. Recognizing the critical role of product reliability in post-design performance, this paper develops a product design optimization model that considers the warranty performance and the effect of end-of-use options. The model takes into account the effect of uncertain operating conditions on product reliability. Two optimization goals including the minimization of expected unit life cycle cost and environmental impact are achieved by the model. To demonstrate the benefits of the integrated approach, the model is applied to an electric motor design problem. The results highlight that integrating end-of-use options in the early design phase leads to adjustments in component selection and reliability design. Moreover, the circular utilization of used products enables cost savings throughout the product’s life cycle and contributes to environmental impact reduction. Finally, the study analyzes the effects of operating conditions, warranty policies, and take-back prices for used products on design decisions, providing valuable insights for product designers.
The Government Office of Accountability (GAO) has published several reports identifying the need for the Department of Energy (DOE) Office of Environmental Management (EM) to address mounting costs for DoE's cleanup program. DOEEM could greatly benefit from independent decision tool-sets/models that would allow them to evaluate options and inform business decision at the enterprise level considering site-specific life cycle costs and system plans. Program goals: Develop a tool-set that enables EM to independently evaluate alternatives, assess outcomes from different contracting strategies, and inform critical decisions for the enterprise. Project goals: Adaption of a Risk Model for integration with complimentary tool-sets for project level decision making. Operational Events: Discrete event model that evaluates operational variables (e.g. capacity, throughput, maintenance constraints) and identify bottlenecks. Identifying and Bounding Project Risk: Identify risks that impact confidence in meeting goals (e.g. production). Life cycle Cost: Evaluate impacts of staffing levels, inventory, and capital investments on life cycle costs. Methods and approach: Monte Carlo Analysis is being executed to generate results: Input derives from Risk Register Data; Tied to Projected and Target Schedules; Incorporates float duration within the model. Assumes associated risk mitigation actions being completed within a timeline of five fiscal years. Metrics include: Confidence in Meeting Production Goal; Confidence in Safety Standards; Confidence in Continuous Operation; Other Metrics can be added as appropriate regarding specific site needs. The adapted risk model can be used as a stand alone decision tool or can be integrated complementary tool-sets (i.e. process and cost models) for project-specific decisions. These support tool-sets can then be integrated with others for site- and complex- level evaluations. Future work includes designing an adaptable and modular framework that would allow integration of multiple tool-sets for holistic and/or targeted evaluation of alternative strategies for decision making that could lead to risk and cost reduction across the enterprise.
Solar photovoltaics (PV) module fasteners are one of the most common structural failure points on PV systems, particularly in high winds and coastal areas with ocean spray. Some fastener types have been shown to survive these conditions at higher rates than others. The fastener type, material, quantity, and placement all impact performance. Fasteners that fail less often typically have a higher upfront cost, but this investment can pay off in savings from less frequent torque audits (which reduces O&M costs), reduced system damage, and decreased system downtime. We developed an Excel-based tool to evaluate different module fasteners for a PV system - either a new or retrofit project - and compare differences in upfront and outyear costs to determine the expected life cycle costs and simple payback periods of different fastener options. The tool is site-specific, with inputs including system attributes (such as system size, location, price of power) and fastener attributes (such as design, washer type, nut type, use of locking hardware, materials, installation time, and torque audit requirements). A baseline fastener scenario can be compared to up to four proposed fastener scenarios. In addition to presenting expected life cycle cost implications of the different fastener options, the tool produces results showing the reductions in outyear costs needed to offset any initial cost premiums for more reliable fasteners across four categories: preventative O&M, avoided damage, reduced downtime, and reduced insurance premiums. These numbers can serve as decision aids for users when considering fastener options on new or existing projects. This poster will present the tool, methodology, and scenarios using example sites to highlight the tool capabilities and how it can inform different fastener decisions on different projects. Future work includes incorporating lifetime expected damage costs by embedding damage function curves that the authors are developing from field data.
Winter weather events challenge the safety, efficiency, and sustainability of roadway networks, particularly road bridges vulnerable to climate impacts. Although effective, conventional de-icing methods incur high expenses and cause significant environmental contamination. To address these longstanding issues, a low-cost novel coal-derived carbon enabled smart pavement (CDC-SP) de-icing system was developed, aiming to alleviate traffic delays, severe corrosion, compromised safety, and environmental pollution. However, the economic performance of CDC-SP has not been quantified to guide decision-making. To this end, this paper presents a Life-Cycle Cost-Benefit Analysis (LCCBA) to assess the economic feasibility of the CDC-SP de-icing system for road bridges in five representative urban and rural areas across cool humid and cold humid climate zones. Given the variations and uncertainties of several factors that determine the costs and benefits, a sensitivity analysis was conducted to determine the system’s economic reliability. Additionally, a Monte Carlo simulation (MCS) was performed to quantify the impacts of important factors and identify the most beneficial scenarios. Furthermore, the CDC-SP de-icing systems have demonstrated substantial economic benefits and short payback periods, showing great applicability for rural and urban road bridges with different service levels across multiple climate zones as compared to conventional de-icing methods.
Current designs and assessments of microgrids have ignored component reliability, leading to significant errors in predicting a microgrid’s performance while islanded. Existing life cycle cost studies on hybrid microgrids—which combine photovoltaics (PV), battery storage and networked emergency diesel generators—also have not identified all the potential economic opportunities. Reducing the number of emergency diesel generators through reliance on PV and battery, retail bill savings, and demand response and wholesale market revenue streams are all important. This paper provides a new statistical methodology that calculates the impact of distributed energy reliability and variability on a microgrid’s performance and a novel use of the optimization platform REopt to explore multiple cost savings and revenue streams. We examine the impacts for microgrids in California, Maryland, and New Mexico and show that a hybrid microgrid is a more resilient and cost-effective solution than a diesel-only system. Under realistic conditions, a hybrid microgrid can provide higher system reliability when islanded and have a lower life cycle cost under multiple market conditions than a traditional diesel generator-based system. The improved performance of the hybrid system is resilient to conditions experienced over the last 20 years in solar irradiance and sees little degradation in performance immediately after a hurricane. The cost savings to provide this more resilient backup power system as compared to a diesel-only microgrid are significant. The net present cost for a hybrid microgrid is 19% lower in New Mexico and 35% lower in Maryland than a diesel-only microgrid. In California, the net present cost of the hybrid microgrid is negative because, unlike a diesel-only microgrid, a hybrid microgrid has lower life cycle costs than the power costs without a microgrid.
Steam generation in the food sector requires substantial energy and cost expenditures, requiring nearly half of its energy intake. Here, we used life cycle assessment and life cycle cost assessment to investigate the cost and energy impacts of steam generating alternatives: NG, biomass and hydrogen boilers and grid-supplied and self-generated electric steam generation systems (electric boilers, renewable thermal energy storage and industrial heat pumps). The analysis starts with a set of average U.S. conditions, where biomass boilers are the most cost-competitive alternative to NG. In a series of scenarios beyond average conditions, the analysis shows energy procurement costs dominate the total life cycle cost for all technologies and, unfortunately, are highly variable geographically and temporally, significantly affecting the viability of the alternatives. Results show that site-energy consumption ranges from 0.3 MMBtu/klb for industrial heat pumps to 1.6 MMBtu/klb for biomass boilers, with heat pumps achieving up to 78% lower energy use compared to natural gas systems. For the steam costs, the results show a range between $\$$8 and $\$$50/klb for NG, with biomass following closely ($\$$11 – $\$$44/klb) and grey hydrogen and IHP next ($\$$13 – $\$$33/klb and $\$$6 - $\$$78/klb), with cost reductions if IHP's cooling is utilized. Factors like operating hours, the need for cooling, and the ability to negotiate utility rates complicate the decision, making site-specific analyses critical. Therefore, we present a decision-making matrix to help manufacturers identify which steam generating technology is the best business decision for their situation. Overall, these results highlight the importance of steam generation for the facility's organizational goals, as well as the criticality of conducting individual site analyses.
This is a cost module that is part of the Advanced Fuel Cycle -- Cost Basis Report. Module D1-4: Nature of this module update (Rev 1) from previous advanced fuel cycle cost basis reports (AFCCBRs): new life cycle cost data on U,Pu SFR mixed oxide (MOX) fuels is derived from the Nonproliferation Assessment Systems Analysis Program (NASAP) conducted in the late 1970s. Highassay low-enriched uranium (HALEU) ceramic fuel is also discussed in more detail compared to earlier AFC-CBRs, since some advanced SFR concepts currently under development will require this HALEU fuel type for startup. Module D1-5: Nature of this FY-21 module update from previous AFC-CBRs: this module includes a few new references and a somewhat expanded discussion of vibrocompaction fuel fabrication technology. The WIT values for VIPAC are pegged directly to those for conventional LWR and SFR pelletized U,Pu MOX (note that this module now includes VIPAC MOX fuel for LWRs in addition to SFRs). Based on information from Russia, where VIPAC has been studied extensively, the unit costs are expressed as a percentage of those in the new updated Module D1-2 (pelletized U,Pu MOX) and new updated Module D1-4 (pelletized U,Pu MOX) for large NOAK fabrication facilities of the same production capacity. Since both ceramic pelletized MOX Modules D1-2 and D1-4 benefitted from analysis of 1970s NASAP data, by extension this Module D1-5 also benefits.
Iron and steel manufacturing is the largest contributor to CO 2 emissions among heavy industries worldwide. This is mostly due to the use of coal in blast furnace-basic oxygen furnace (BF-BOF) process for virgin (primary) steel production. The electricity generation mix used in the electric arc furnace (EAF) process to recycle scrap steel also contributes to the CO 2 emission associated with secondary steel production. To decarbonize iron and steel sector, we investigated decarbonization options for BF-BOF and EAF processes, including energy efficiency, carbon capture and storage, and the use of clean energy sources, in various BF-BOF and EAF process configurations. Additionally, for each decarbonization approach, we evaluated the CO 2 reduction potential via life cycle analysis (LCA) and estimated the associated cost through techno-economic analysis (TEA). A typical U.S. BF-BOF for virgin steel production has a cradle-to-gate (CTG) CO 2 emissions of 1,990 kg/MT steel with a levelized cost of steel (LCOS) of $\$439$/MT steel, while a typical U.S. EAF process for secondary steel production in the United States has a CTG CO 2 emissions of 270 kg/MT steel with a LCOS of $\$365$/MT steel. Combining renewable energy sources and carbon capture, BF-BOF CTG CO 2 emissions can be reduced to 16 kg/MT steel, and EAF configurations can achieve similar deep reductions to reach 25 kg/MT steel. The corresponding LCOS with these decarbonization levels is estimated to increase to $\$542$/MT steel and $\$348$/MT steel, respectively. The estimated CO 2 avoidance costs vary from -$\$90$/MT CO 2 to $\$646$/MT CO 2 , depending on the various decarbonization technologies and energy prices.
In this work, a topology optimization framework for district thermal energy systems is presented. The framework seeks to address the questions, for a given district, "What is the best subset of buildings to connect to a district thermal energy system, and by what network should they be connected, to minimize life cycle cost?" A particle swarm optimization approach is validated to address the selection of the subset of buildings, and a graph theory-based heuristic is validated for selection of the network topology for any candidate subset of buildings. The framework is applied to a prototypical urban district for illustrative purposes. Additionally, modeling of prototypical districts revealed reductions in source energy use intensity for heating and cooling of 21-25% through the use of advanced district energy systems relative to code-compliant, building level systems. The framework identifies solutions with life cycle cost values 14% to 72% lower than that of base case scenarios based on conventional design approaches, depending on the base case scenario selected. Analysis of the search space indicates that topology optimization facilitates reductions in life cycle cost, source energy use intensity, and carbon emissions.
Building design optimization is a highly complex problem, requiring long computational running processes because of the many options that exist when a building is being designed. This paper introduces an integrated approach through which to perform this optimization within an acceptable time frame. The approach includes the methods of variable selection, model simplification, and a sequential optimization process. Using singular value decomposition, a large number of design variables is reduced to a smaller subset that can be solved more quickly through the optimization algorithm. To expedite the variable selection process, a modeling approach that quickly simulates annual energy consumption was developed to replace full annual energy simulations. The developed methodology was applied to two residential buildings in the US, and the results are discussed herein. To assess the accuracy of the integrated optimization methodology, the optimized life cycle costs are compaa variables demonstrating the strongest contributions in the optimization study were identified. The proposed methodology significantly shortened the time requirements for the optimization processes of the two case studies by 74% and 84%; the optimized life cycle costs were within 0.05% and 0.06%, respectively, of the optimum point.
Algae biomass, a biofuel feedstock with potential to reduce global CO 2 emissions, is currently too expensive Nitrogen, a significant input and life cycle cost, requires research on recycling and additional sources to reduce costs. Integral to nitrogen recycling is the knowledge of actual nitrogen requirements in outdoor ponds, thus data from the Unified Field Studies of the Algae Testbed Public-Private Partnership was analyzed. The data showed that Nannochloropsis oceanica used 14–24 mg/L NH 4 + per harvest cycle for robust growth. Nitrogen recycled directly from the algae conversion process will likely be the primary source of nitrogen for algae cultivation. Harvested algae can be fractionated via Combined Algal Processing (CAP), where algae are pretreated, fermented, and the fuel feedstocks (e. g. ethanol, lipids) are removed leaving a nitrogen rich slurry. Chlorella vulgaris grew robustly in nitrogen-free media supplemented with CAP residues through 4 harvest cycles with no inhibition. The amount of nitrogen as free ammonium available for recycling directly without further processing was insufficient (~4% of total needed), thus the nitrogen fixing bacteria, Azotobacter vinelandii, was investigated as a means for increasing ammonium concentration in CAP residues. This organism was shown to be proficient at growth on sugars liberated from algae biomass during pretreatment and sustained algae growth using A. vinelandii supernatants was also demonstrated. Using Azotobacter to increase ammonium concentrations on-site using an inexpensive biological process to generate the necessary ammonium for outdoor algae cultivation improves sustainability of algae biofuels by avoiding the energy intensive steps of typical ammonium production and transport. Furthermore, these results show that byproducts of algae conversion begin to close nitrogen demand and, with further supplementation by diazotrophic bacteria or protein hydrolysis, may completely replace current energyintensive and costly industrial nitrogen sources offering a path to increased economic feasibility and improved life cycle analysis of algae-based biofuels.