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Search indexed NASA NTRS and DOE OSTI research on propulsion, heat transfer, battery materials and energy systems. Follow report and document links to the original sources.

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At least 19 records
All sourcesNASA NTRSDOE OSTI
DOE OSTI2025

Life-Cycle Cost Analysis Framework for Water Efficiency Measures

Life-Cycle Cost Analysis Framework for Water Efficiency Measures: Guidance Designed for Federal Agencies (hereafter referred to as “this report”) provides a technical framework for federal agencies to conduct a life-cycle cost analysis (LCCA) for water efficiency projects in accordance with 42 U.S.C. § 8253. This report leverages insights from the 2023 report, PNNL-34006, Water and Wastewater Annual Price Escalation Rates for Selected Cities Across the United States: 2023 Edition (Unger et al. 2023). The primary objective of this report is to provide a framework to assist federal agencies with evaluating the full economic impact of water efficiency projects by assessing both initial investments and long-term operational benefits. An LCCA can provide a comprehensive view of all costs associated with a water efficiency project, including initial investment, ongoing operations and maintenance (O&M), and eventual disposal or replacement, ensuring the most cost-effective solution is selected. The LCCA methodology outlined in this report enables users to compare base case scenarios with potential alternatives using a standardized present value approach. It incorporates key cost components such as energy, water and wastewater, installation, O&M, and equipment replacement. Additionally, the framework introduces relevant evaluation metrics, such as the net savings and the savings-to-investment ratio, to ensure that water efficiency measures are economically justified over the lifespan of the project. To support practical application, this report also describes various water efficiency strategies that may be analyzed using an LCCA, including plumbing retrofits, irrigation upgrades, alternative water use, and cooling system improvements. By applying this framework, federal agencies can ensure compliance with regulatory mandates while maximizing the return on investment and contributing to resilient water management practices. The information provided in this report is aligned with the Federal Energy Management Program (FEMP) life-cycle cost (LCC) methodology, as conveyed in National Institute of Standards and Technology (NIST) Handbook 135 (Kneifel and Webb 2022). This report is intended to provide relatively high-level guidance, acting as a complement to, rather than a substitute for, that resource.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2026

Comparison of ammonia with methanol, liquefied natural gas and conventional marine transportation fuels through life cycle cost and emissions analysis

This work evaluates ammonia as a potential marine fuel for a SUEZMAX tanker and compares it with methanol, liquefied natural gas, and conventional fuel oils. The motivation arises from the need to identify low-emission, cost-competitive fuel options that can reduce greenhouse gas emissions from international shipping. The central hypothesis is that ammonia produced from renewable energy sources can achieve lower well-to-wake greenhouse gas emissions with varying life cycle costs based on the region. Life cycle assessment and techno-economic analysis were performed for a thirty-year vessel lifetime on two representative trade routes: from Saudi Arabia to Japan and from Saudi Arabia to the Netherlands. Four ammonia production pathways were assessed: natural gas, natural gas with carbon capture, natural gas pyrolysis, and renewable electricity–based synthesis. Results show that wind-based ammonia produced in Saudi Arabia achieved the lowest life cycle well-to-wake greenhouse gas emissions, between 0.58 and 0.64 million metric tons, among all fuels when using regional grid process electricity. With renewable process electricity, ammonia produced from natural gas pyrolysis in Saudi Arabia showed comparable emissions of 0.37 to 0.44 million metric tons with wind-based ammonia of 0.37 to 0.43 million metric tons. Liquefied natural gas exhibited the lowest life cycle cost, between 402 and 412 million United States dollars, and the only negative carbon abatement cost, ranging from −277 to –322 United States dollars per metric ton of greenhouse gas, compared with high sulfur fuel oil. The findings indicate that renewable ammonia offers a promising long-term pathway for reducing shipping emissions, while liquefied natural gas remains the most cost-effective option in the near term.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2025

NE-COST plug-in: Expanding ACCERT's Capabilities for Life-Cycle Cost Modeling

The Algorithm for the Capital Cost Estimation of Reactor Technologies (ACCERT) is a structured methodology and software tool designed to simplify and standardize cost estimation for nuclear reactor technologies [1]. By utilizing a relational database structure and modular cost estimation algorithms, ACCERT delivers a robust, flexible, and scalable framework for evaluating costs across various reactor types and configurations [2]. The recent integration of the NE-COST plugin further expands ACCERT’s scope by introducing detailed life-cycle cost modeling and probabilistic analysis of uncertainties. This addition enables users to evaluate costs across front-end processes such as uranium enrichment and fabrication, as well as back-end activities including waste disposal and geologic storage. Through Monte Carlo statistical cost simulations, the plugin provides probabilistic insights into cost ranges, offering critical decision-making support for stakeholders including reactor developers, policymakers, and researchers.

Zhou, Jia↗
DOE OSTI2025

Greenhouse gas emissions reduction strategies that maximize portfolio-wide life cycle cost reduction, resilience, and environmental justice benefits

While strategies to achieve net-zero emissions at an individual site are well understood, new analysis methods are required for organizations seeking to achieve net-zero across multiple facilities, each with concurrent priority goals. At a portfolio level, distinct locations present varied challenges that cannot be addressed through singular solutions, and competing goals can take precedence with the assumption that net-zero emissions strategies deter from energy resilience and cost savings, therefore negatively impacting nearby communities. This study tests these assumptions by analyzing 16 diverse sites (varying in size, climate, and energy use) to identify strategies that reduce emissions and assess the impact these strategies have on life cycle costs, resilience, and communities with environmental justice concerns. Methods were developed to approximate missing information essential to net-zero evaluation. Established methods were augmented to evaluate life cycle costs, resilience, and environmental justice impacts across a set of strategies and accommodate the multi-criteria analyses. Potential benefits from identified strategies were quantified using site characteristics and a set of corresponding metrics. The net-zero analysis found that 11 sites could use on-site strategies to eliminate all but 2% of emissions generated. The remaining emissions can be offset, for instance through sequestration, executed at the portfolio scale. On-site carbon-free energy was found to reduce 51% of emissions across all sites; efficiency reduced 19% of emissions; sequestration 16%; procured carbon-free energy 15%; fuel switching 1.6%; and fleet electrification 1.3%. Building electrification, however, increased emissions by 4.4%. Different strategies also provide cost, resilience, and/or environmental justice benefits—the degree to which varies with individual site conditions. The findings indicate an advantage to considering the strategies as a comprehensive set, which leads to co-benefits, both in the ability to achieve net-zero goals and in advancing other goals. The results present the case for comprehensive advanced planning at the portfolio level to prioritize investments that will balance the minimization of emissions and life cycle cost with the maximization of resilience and environmental justice benefits. The novel methods for evaluation and integration, valuation of benefits, and consideration at the portfolio scale allow organizations to select investments that simultaneously address multiple key priorities.

Net-Zero Emissions↗
DOE OSTI2025

Life Cycle Cost Analysis of Prestressed Concrete Poles Subjected to Wind, Surges, and Waves

Prestressed concrete (PC) poles are becoming popular choices to support coastal power transmission systems. However, the existing literature does not offer a detailed analysis of the effectiveness of PC poles in terms of long-term vulnerabilities and the direct and indirect costs. This is due to (1) lack of fragility models for PC poles and (2) lack of probabilistic wind, storm surge, and wave models in coastal settings. In this study, we address these gaps through a series of Monte Carlo simulations to estimate fragility of PC poles as a function of age and hazard (wind, surges, and waves) intensity, and the development of a probabilistic hazard model based on 10,000 years of synthetic tropical cyclone data. The probabilistic hazard model is used in conjunction with high-resolution hydrodynamic models to generate realizations of coastal wind, storm surges, and waves for the Louisiana and Mississippi coasts. A comprehensive life cycle cost analysis for a service life of 70 years considering direct and indirect losses is conducted to compare the performance of a transmission line located in Pascagoula, Mississippi, when wood poles are replaced by PC poles. Results showed that aging has a minor effect on the reliability of PC poles, highlighting the advantages of replacing wood poles with PC poles, especially in coastal areas. In addition, PC poles are significantly more cost-effective compared with wood poles over their life cycle, leading to an estimated saving of $11.55 million (68.17% reduction). The results of this study provide key insight to inform decision-making processes to keep the coastal power grids resilient and cost-effective against future storm hazards.

natural disasters↗
DOE OSTI2025

AL-CRADA-2025-01 Final Report: American-Made Wind Turbine Materials Recycling Prize Accelerate! Phase 2

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.

Lograsso, Thomas [Ames Laboratory (AMES), Ames, IA↗
DOE OSTI2026

Accessing and Understanding REopt's Federal Assumptions

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.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2026

Coalition for Community-Supported Affordable Geothermal Energy Systems (C2SAGES)

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.

15 GEOTHERMAL ENERGY↗
DOE OSTI2026

Solar Photovoltaics Resilient Fasteners Levelized Cost of Energy (LCOE) Tool

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.

14 SOLAR ENERGY↗
DOE OSTI2025

Life-cycle cost-benefit analysis of a novel self-heating pavement made from coal-derived solid carbon

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.

36 MATERIALS SCIENCE↗
DOE OSTI2026

Evaluating alternative steam generation pathways in the food industry

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.

Biomass boilers↗
DOE OSTI2026

Thermal Reservoir Networks for Modularly Expandable Thermal Microgrids

The Department of Defense (DoD) faces the substantial challenge of cost-effectively retrofitting one to two installations per month, each comprising approximately 1,000 buildings, to improve resilience, reduce energy consumption, and enhance energy supply security. Achieving these objectives requires optimal system selection and effective risk mitigation during system integration. To address this need, we introduce Platform-Based Design (PBD), a structured, hierarchical methodology adapted from other industrial sectors to the domain of energy system retrofits. We demonstrate the effectiveness of PBD through a techno-economic feasibility study comparing geothermal-coupled thermal energy networks (TENs) with conventional energy systems for heating, cooling, and powering 17 buildings at Joint Base Andrews (JBA) in Maryland. Our analysis illustrates that the PBD approach enables rigorous, data-driven, sequential decision making, resulting in a family of Pareto-optimal systems, among which the TEN emerged as the most promising solution. The selected TEN design integrates geothermal borefields, heat recovery heat pumps, photovoltaic (PV) arrays, and battery storage. Compared to the baseline system – gas heating combined with air-source chillers – the proposed TEN reduces annual imported energy by 74% and peak electricity demand by 45%, achieves a levelized cost of energy of $\$0.210$/kWh, and substantially enhances resilience. Life-cycle costs increase by approximately 6%, and initial investment costs are about 2.5 times higher than the baseline. However, if central plant infrastructure, district loops, and utility-scale PV and battery systems are privately funded and operated, the initial investment would fall below the baseline system cost. Critical to achieving these significant performance improvements were detailed nonlinear dynamic simulations coupling geothermal heat transfer, energy system operation, and realistic feedback control logic. These simulations identified essential design modifications and control strategy refinements that substantially reduced energy use, peak demand, and compressor shortcycling, thereby improving durability and reliability—issues that would have been significantly more expensive to resolve during operation. Additionally, the verification step highlighted sensitivities to key design parameters that could reduce initial investment by approximately $\$2$ million and reduce annual life-cycle costs more than $\$300,000$. We recommend adopting the PBD methodology for future feasibility studies and TEN pilot projects to gain valuable operational experience. Furthermore, we recommend that DoD invest in transferring and scaling the PBD methodology to other installations. This entails developing standardized computational frameworks and component libraries as well as training industry in conducting PBD. Such investments would enable rapid, robust, reliable, and cost-effective retrofits, supporting DoD’s ambitious energy system modernization goals.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2024

Cost-Benefit Analysis For Indonesia Building Sector: Whole-Building Cooling Solutions

The Net Zero World (NZW) Initiative Collaborative Work Program with the Government of Indonesia (GoI) includes technical assistance and investment mobilization facilitation to accelerate deployment of energy efficiency technologies and solutions for the building sector. A February 2023 U.S.–Indonesia Joint Workshop on Decarbonizing the Building Sector yielded a NZW Indonesia Building Decarbonization Working Group (NZW IBDWG) with four sub-working groups (SWG): SWG-A National Center, SWG-B Capacity Building, SWG-C Investment and Financing, and SWG-D Pilot Projects. Technical analysis of whole-building cooling solutions for tropical climates of Indonesia was conducted by SWG-A to quantify energy savings, carbon dioxide reductions, and comfort improvements offered by 12 passive or low-energy cooling strategies: ceiling fans with and without thermostat setbacks; cool roofs; cool walls; exterior awnings; exterior shades; interior shades; insulated roofs; insulated walls; low-e windows; solar window films; and natural ventilation. Leveraging the results from SWG-A, cost-benefit analysis (CBA) was conducted by SWG-C to assess the consumer and national costs and impacts associated with these 12 cooling solutions. The evaluation involved estimating life-cycle costs (LCC), payback period (PBP), net present values (NPV), annual electricity burden change for low-income households, and reduced national annual power-sector generation demand by 2030, 2040, 2050, and 2060. This evaluation can help guide Indonesia’s Just Energy Transition Partnership (JETP) investments in policies and programs to advance research, development, deployment, and commercial adoption (RDDCA) of efficient residential building sector cooling technologies and solutions in Indonesia. Four key energy conservation measures (ECM) have been identified to reduce air-conditioning (AC) energy demand in single-family housing in Indonesia: ceiling fan with temperature setback (to 28.1 °Celcius from 25 °C); insulated walls; insulated roof; and cool roof. This study found that low-income households with AC installations in Indonesia currently face a high energy cost burden of approximately 10%. However, by implementing a ceiling fan with temperature setback, this burden could decrease to 2.5% today and further reduce to 1.3% by the year 2060. The PBP for a ceiling fan with temperature setback is one year, indicating one of the lowest LCC and best NPV. In the planned upcoming phase of CBA, a series of building cooling improvement scenarios can be further defined, incorporating more than one ECM in combination with socio-economic factors evaluated in the initial CBA phase. Additionally, the analysis of ECM effects in multifamily housing can be expanded. This broader national analysis aims to encompass a holistic and comprehensive system-level perspective, including factors such as avoided power sector infrastructure investments, domestic job creation, domestic manufacturing job creation, and gross domestic product (GDP) growth.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2026

Heat Pump Retrofits for Central Plant Hydronic Heating Systems: A Software Toolkit for Screening and Design

Retrofitting existing central plants with high-efficiency heat pump technologies can play a crucial role in achieving long-term planning goals. Modern heat pump technologies are able to use waste heat recovery to meet a building's heating demand, but there is a lack of accessible tools designed for non-HVAC experts, such as building owners, to quickly and easily conduct what-if analysis, e.g., estimating retrofit costs and payback period for their partial or full equipment replacement. This paper introduces an open-source software toolkit designed to facilitate the initial screening and decision-making of heat pump retrofits in existing central plants using a building's yearly load profile from metered or utility bill data. The toolkit evaluates the technical and economic viability of replacing traditional central plant equipment with various options including water-to-water or air-to-water heat pumps, which can provide efficient and lower-cost heating and cooling. It allows users to compare current central plant configurations with retrofit scenarios, assessing energy consumption, life-cycle costs, and environmental impact. The toolkit offers (1) a web-based tool designed for user-friendly access by a broad audience and (2) Python-based source code for researchers and engineers conducting parametric studies and design parameter optimization. The toolkit compares a typical central plant configuration to a configuration that uses a heat pump to supply hydronic heating and cooling. The output metrics include energy consumption and output of each equipment, life-cycle cost analyses and metrics, and environmental impact of the system.

Excell, L↗
DOE OSTI2026

Retrofit Energy Analysis and Central Thermal modeling (REACT) v1.0

REACT is a website designed to simplify the analysis and decision-making process for retrofitting existing central plant heating and cooling systems with advanced heat pump technologies. The tool evaluates the technical and economic viability of replacing traditional boilers with various options including water-to-water or air-to-water heat pumps, which can provide efficient and lower-cost heating and cooling. It allows users to compare current central plant configurations with retrofit scenarios, assessing energy consumption, life-cycle costs, and environmental impact. Retrofitting traditional boiler and chiller systems with water-to-water or air-to-water heat pumps can significantly reduce energy consumption and lower lifecycle costs. The REACT provides: User-Friendly Tools: A user friendly web interface for quick, intuitive analysis accessible to non-experts. Advanced Modeling: A Python-powered engine for detailed parametric studies, optimization, and research applications. Comprehensive Analysis: Lifecycle cost evaluation, energy consumption modeling, and environmental impact assessment. Visual Insights: A variety of plots to visualize system performance and design trade-offs. The engine for the website (REACT) bases on several Python libraries, and the website will be hosted on an ETA server.

Kim, Donghun [Lawrence Berkeley National Laborator↗
DOE OSTI2024

Commercial, industrial, and institutional discount rate estimation for efficiency standards analysis: Sector-level data 1998–2023

Underlying each of the U.S. Department of Energy’s (DOE’s) federal appliance and equipment energy conservation standards are a set of complex analyses of the projected costs and benefits of regulation. Any new or amended standard must be designed to achieve significant additional energy conservation, provided that it is technologically feasible and economically justified (42 U.S.C. 6295(o)(2)(A)). DOE determines economic justification based on whether the benefits exceed the burdens, considering a variety of factors, including the economic impact of the standard on consumers of the product and the savings in lifetime operating cost compared to any increase in price or maintenance expenses (42 U.S.C. 6295(o)(2)(B)). As part of this determination, DOE conducts a life-cycle cost (LCC) analysis, which models the combined impact of appliance first cost and operating cost changes on a representative commercial building sample to identify the fraction of customers achieving LCC savings or incurring net cost at the considered efficiency levels. Thus, the commercial discount rate value(s) used to calculate the present value of energy cost savings within the LCC model implicitly plays a role in estimating the economic impact of potential standard levels. This report provides an in-depth discussion of the commercial discount rate estimation process relying on the Capital Asset Pricing Model (CAPM) to estimate a business’ cost of equity, and by adding a risk adjustment factor to the risk-free rate associated with long-term U.S. Treasury bonds to estimate their cost of debt. It is an update to previous reports on estimating commercial discount rates from firm-level and sector-level financial data (e.g., Fujita, 2021, 2016). Major topics covered in this report include the following: • Discount rate estimation methods and rationale • Data sources used and data limitations • Discount rate distributions for use in standards analysis • Discount rate estimation methods and distributions specific to the small business subgroup analysis.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗
DOE OSTI2024

Exploring the cost and emissions impacts, feasibility and scalability of battery electric ships

The United States’ greenhouse gas (GHG) emissions reduction goals, along with targets set by the International Maritime Organization, create an opportunity for battery electric shipping. In this study, we model life-cycle costs and GHG emissions from shipping electrification, leveraging ship activity datasets from across the United States in 2021. We estimate that retrofitting 6,323 domestic ships under 1,000 gross tonnage to battery electric vessels would reduce US domestic shipping GHG emissions by up to 73% by 2035 from 2022 levels. By 2035, electrifying up to 85% of these ships could become cost effective versus internal combustion engine ships if they cover 99% of annual trips and charge from a deeply decarbonized grid. We find that charging demands from electrifying these ships could be concentrated at just 20 of 150 major ports nationwide. This study demonstrates that retrofitting to battery electric vessels has economic potential and could significantly accelerate GHG emission reductions.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗