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Quality Guidelines for Energy System Studies: Cost Estimation Methodology for NETL Techno-economic Assessments

This Quality Guidelines for Energy System Studies (QGESS) summarizes the methodology employed by the National Energy Technology Laboratory (NETL) in calculating plant costs in its techno-economic studies, such as the Cost and Performance Baseline for Fossil Energy Systems series of reports. It also outlines the approach used to calculate the cost of electricity (COE) or cost of product (COP) metrics by which NETL estimates the impact of technology options. These metrics and a clear understanding of the methodology used are essential in allowing different plant technologies to be compared on a similar basis. These guidelines were initially developed for power producing plants, although they can be applied to a variety of different revenue generating plants (e.g., coal to liquids, syngas generation, hydrogen) by substituting the industrial product quantity for the electrical quantity in the equations. The tables contained in this QGESS have been expanded upon relative to previous versions to include values to assume for several industries.

20 FOSSIL-FUELED POWER PLANTS↗

Quality Guidelines for Energy System Studies - Capital Cost Scaling Methodology: Revision 4a Report

Costs are frequently required as part of systems analysis work at NETL. Many of the cost results provided as part of systems analysis work were created with the use of scaling, since obtaining new vendor-supplied cost quotes for each category developed by NETL would be prohibitively time consuming and costly. Additionally, many of the technologies being investigated by NETL have not progressed far enough to have quotable costs. The costs are scaled from a quote for a similar plant configuration by use of various equations that typically employ at least one process parameter (e.g., coal-feed rate, oxidant-feed rate) and often an exponent. The primary purpose of the exponent is to account for economies of scale (i.e., as equipment size gets larger, it gets progressively cheaper to add additional capacity). The purpose of this section of the QGESS report is to provide a standard basis for scaling costs, with specific emphasis on scaling exponents. The intention of having a standardized document is to provide guidelines for proper procedures to reduce the potential of errors and increase credibility through consistency.

99 GENERAL AND MISCELLANEOUS↗

Quality Guidelines for Energy System Studies: Process Modeling Design Parameters

The National Energy Technology Laboratory (NETL) conducts systems analysis studies that require a large number of inputs, from ambient conditions to parameters for Aspen Plus ® (Aspen) process blocks. The sheer number of assumptions required makes it impractical to document all of them in each issued report. The purpose of the Quality Guidelines for Energy System Studies (QGESS) is to document the assumptions most commonly used in system analysis studies and the basis for those assumptions. In order to develop the systems analysis models presented in various NETL reports, significant vendor data have been obtained, and these data enhance the model outputs. Much of the vendor data obtained are considered proprietary and not suitable for public release or attribution to a specific vendor. As such, several sub-systems common in NETL reports and their process parameter data are not reported in this document to protect proprietary vendor information. The values and ranges of values presented in this report represent assumptions that have been made in previous studies.

97 MATHEMATICS AND COMPUTING↗