Pig iron production structure in Japan

Japan is the world's largest steel producing country, and around half of its total input requirements for coking coal and iron ore are sourced from Australia. Moreover, around half of Australia's total coking coal and iron ore exports go to Japan each year. Therefore, changes in the demand for these two inputs are likely to have a significant impact on Australia. The purpose of this paper is to investigate the production structure of the blast furnaces in Japan and factors affecting the demand for iron making raw materials. The empirical study is based on the generalized Leontief cost function. Because of its functional flexibility, the model allows testing various hypotheses regarding pig iron production from blast furnaces. Based on the data from 1974 to 1991, the modelling results show that the Japanese ironmaking technology, when considered as an aggregate production process using fuel and iron ore as major inputs, could be characterized by fixed factor proportions, constant returns to scale and technical changes that can be explained by systematic changes in input mix. Moreover, while there is little variation in the iron ore usage rate, variations in fuel usage rate can be explained largely by changes in the make-up of iron ore charge and blast furnace production capacity over the sample period.     

Clean fuels from municipal solid waste for fuel cell buses in metropolitan areas

Increasing volumes of municipal solid waste (MSW) pose disposal problems for many cities. Costs are rising as landfilling becomes more difficult. The production of clean transportation fuels (methanol or hydrogen) from MSW is one economically and environmentally promising option for dealing with these problems. An attractive feature is that elimination of essentially all air pollutant emissions is inherent in the process. Current and future air emissions standards should be easily met. Methanol or hydrogen used in fuel cell vehicles (FCV) can help address problems of deteriorating urban air quality due to vehicle pollution and heavy dependence of the transport sector on imported petroleum. Buses are initial targets for commercial application of fuel cells. Coupled with FCVs, MSW could become a major transportation energy resource. For example, less than 25% of New York City's MSW supply would be sufficient to produce the methanol or hydrogen needed to fuel the entire city's bus fleet, if the buses were fuel cell powered. Estimated breakeven tipping fees required for hydrogen or methanol from MSW to compete with the cost of these fuels made from natural gas today are $52 to $89/raw tonne MSW for hydrogen and $64 to $104/raw tonne MSW for methanol (in 1991$), depending on the gasification technology considered. For comparison, the average tipping fee today in New York City is $74/tonne (1991$). Because of the high fuel economies expected for fuel cell buses, total lifecycle costs per bus-km could be lower than for conventional diesel-engine buses.     

An engineering-economic model of pipeline transport of CO2 with application to carbon capture and storage

Carbon dioxide capture and storage (CCS) involves the capture of CO₂ at a large industrial facility, such as a power plant, and its transport to a geological (or other) storage site where CO₂ is sequestered. Previous work has identified pipeline transport of liquid CO₂ as the most economical method of transport for large volumes of CO₂. However, there is little published work on the economics of CO₂ pipeline transport. The objective of this paper is to estimate total cost and the cost per tonne of transporting varying amounts of CO₂ over a range of distances for different regions of the continental United States. An engineering-economic model of pipeline CO₂ transport is developed for this purpose. The model incorporates a probabilistic analysis capability that can be used to quantify the sensitivity of transport cost to variability and uncertainty in the model input parameters. The results of a case study show a pipeline cost of US$ 1.16 per tonne of CO₂ transported for a 100 km pipeline constructed in the Midwest handling 5 million tonnes of CO₂ per year (the approximate output of an 800 MW coal-fired power plant with carbon capture). For the same set of assumptions, the cost of transport is US$ 0.39 per tonne lower in the Central US and US$ 0.20 per tonne higher in the Northeast US. Costs are sensitive to the design capacity of the pipeline and the pipeline length. For example, decreasing the design capacity of the Midwest US pipeline to 2 million tonnes per year increases the cost to US$ 2.23 per tonne of CO₂ for a 100 km pipeline, and US$ 4.06 per tonne CO₂ for a 200 km pipeline. An illustrative probabilistic analysis assigns uncertainty distributions to the pipeline capacity factor, pipeline inlet pressure, capital recovery factor, annual O&M cost, and escalation factors for capital cost components. The result indicates a 90% probability that the cost per tonne of CO₂ is between US$ 1.03 and US$ 2.63 per tonne of CO₂ transported in the Midwest US. In this case, the transport cost is shown to be most sensitive to the pipeline capacity factor and the capital recovery factor. The analytical model elaborated in this paper can be used to estimate pipeline costs for a broad range of potential CCS projects. It can also be used in conjunction with models producing more detailed estimates for specific projects, which requires substantially more information on site-specific factors affecting pipeline routing.     

World phosphate supply

The Bureau of Mines investigated the resources, costs, capacities, market relationships, and short- and long-run supply of phosphate rock and phosphoric acid. The 206 mines and deposits evaluated in 30 market economy countries (MECs) contain an estimated 35.1 billion tonnes of recoverable phosphate rock (demonstrated resource level). US resources are sufficient to satisfy both the domestic market and an export market for phosphate products well beyond 2000. Resource depletion at current producers, however, means new property development (with higher costs) will be required if US production levels are to be maintained. Existing worldwide capacity can satisfy expected demand through the early 1990s. Expansion at existing mines or low demand growth could mean no new property development is required before the late 1990s. Worldwide, almost $8 billion could be required for the development of new phosphate rock properties between now and 2000, given 3% annual growth in demand. Though profit may not be the principal motivation for development of government-owned operations, most properties that could develop in the 1990s would require price increases of 20–50% to break even. To earn a 15% rate of return on investment, prices must rise to nearly double the $23–271 tonne US price level of 1988. Current US phosphate rock and phosphoric acid producers appear to be competitive (on a variable cost basis) with many other suppliers in major markets. New US properties will have higher variable costs than current producers; however, they are competitive with most projected new foreign development. The US phosphoric acid industry will most likely face increased competition as more of the foreign phosphate rock producers develop the capacity to process rock into phosphoric acid and other fertilizer products.     

A SYSTEMS STUDY OF FUTURE GROUNDWATER DEVELOPMENT COSTS IN THE CHICAGO REGION1

The cost of developing groundwater resources in northeastern Illinois from 198cL2020 is estimated for the purpose of providing a basis for comparing alternative sources. Demands for each township in the study area are estimated at 10-year increments and are satisfied, where the supply is sufficient, in such a way as to minimize the cost subject to constraints on supply. Sources of water are two shallow aquifers with known potential yields and a series of deep aquifers treated as a single unit and modeled on a digital computer. For each township the costs of wells, pumps, power and rehabilitation is estimated for each aquifer on a per million gallons of water per day basis. In addition the cost of groundwater treatment necessary to raise the quality to that of treated Lake Michigan water is considered. Raw water costs are found to vary from 2 to 14 cents per 1000 gallons depending upon the depth to the deep aquifer water. Treated water costs vary from 22 to 53 cents per 1000 gallons, the lower costs applying to the largest users because of the economy of scale. It is found that with proper distribution of pumpage there is sufficient water in storage in the deep aquifers to meet groundwater demands through 2020.     

In Search of Stability – Investigating Flexible and Stable Production Strategies for an Optimised Steel Plant

It is crucial for a steel making production system to operate at the lowest possible production cost, while satisfying stability and reliability conditions. To plan future production strategies, it is therefore important to be able to model the system behaviour when internal and external parameters are changed. In this study the sensitivity and stability of an optimised solution, of an integrated steel plant, have been investigated. The solution’s sensitivity has been analysed taking both internal process changes and external price variations into account, through applying both simulation and optimisation. The analysis also includes both costs and environmental issues such as carbon dioxide and sulphur emissions. Based on the methodology suggested, it is possible to determine the stability of the system solution, including both economic and environmental performance.     

Wellhead treatment costs for groundwater contaminated with pesticides: A preliminary analysis for pineapple in Hawaii

In Hawaii, trace concentrations of pesticides used in the production of pineapple were found in the groundwater supplies of Mililani Town in the Pearl Harbor Basin on the island of Oahu. Groundwater serves as the major source of drinking water and residents pay for wellhead treatment of the contaminated water, via their monthly water bill. The agricultural chemical users within the Pearl Harbor Basin do not include these wellhead treatment costs in their production costs. The agricultural industry benefits from using pesticides but does not pay the entire societal cost of using these chemicals. In this study we evaluate the specific financial cost of wellhead treatment, and not the economic value of groundwater. While wellhead treatment costs could conceivably be shared by several parties, this study focuses on the financial impact of the pineapple industry alone. This study factors annual wellhead treatment costs into annual pineapple production costs to measure the effect on annual financial return from pineapple production. Wellhead treatment costs are calculated from the existing granulated activated carbon (GAC) water treatment facility for Millilani Wells I and II. Pineapple production costs are estimated from previous cost of production studies. The inclusion of wellhead treatment costs produces different production-cost results, depending on the scale of analysis. At the local scale, the Mililani wellhead treatment costs can be factored into the production costs of the pineapple fields, which were probably responsible for contamination of the Mililani Wells, without causing a deficit in economic return. At the larger regional scale, however, the return from all of the pineapple grown in the Pearl Harbor Basin can not sustain the cost of wellhead treatmentfor the entire water supply of the basin. Recommendations point to the prevention of groundwater contamination as more cost-effective measure than wellhead treatment.     

An Agent-Based Modeling Approach for Determining Corn Stover Removal Rate and Transboundary Effects

Bioenergy production involves different agents with potentially different objectives, and an agent’s decision often has transboundary impacts on other agents along the bioenergy value chain. Understanding and estimating the transboundary impacts is essential to portraying the interactions among the different agents and in the search for the optimal configuration of the bioenergy value chain. We develop an agent-based model to mimic the decision making by feedstock producers and feedstock-to-biofuel conversion plant operators and propose multipliers (i.e., ratios of economic values accruing to different segments and associated agents in the value chain) for assessing the transboundary impacts. Our approach is generic and thus applicable to a variety of bioenergy production systems at different sites and geographic scales. We apply it to the case of producing ethanol using corn stover in Iowa, USA. The results from the case study indicate that stover removal rate is site specific and varies considerably with soil type, as well as other factors, such as stover price and harvesting cost. In addition, ethanol production using corn stover in the study region would have strong positive ripple effects, with the values of multipliers varying with greenhouse gas price and national energy security premium. The relatively high multiplier values suggest that a large portion of the value associated with corn stover ethanol production would accrue to the downstream end of the value chain instead of stover producers.     

Mine size and the structure of costs

The number of operating mines has fallen sharply for most mineral products, and the average size of mine risen, with the changes gathering momentum during the 1990s. The paper looks at trends in copper, zinc and gold, and then explores the relationship between size and unit costs in copper mining, separately for underground and open-pit mines, in order to ascertain the existence and importance of economies of scale. Changes in mine size have been accompanied by major technological and geographical shifts. There is only a weak relationship between the scale of mines and overall unit costs per tonne of copper produced. The paper discusses the data and explores some of the reasons.     

Sheep's wool insulation: A sustainable alternative use for a renewable resource?

Material selection in manufacturing may be characterized as a series of trade-offs between characteristics, properties, environmental impacts, sustainability, availability, and economics. Societal concerns about the environmental impacts of construction practices and materials have been expressed through an increase in the demand, production and use of “green” building products. This, combined with a desire to integrate more bioproducts and natural and renewable resources into the construction industry, has extended to the production and promotion of insulation made from sheep's wool.Although substantial literature exists on the insulation properties and other benefits of wool, less is known about the economics and manufacturing processes of sheep's wool insulation at varying scales of production. This paper contributes to this field of enquiry through presentation of the preliminary results of a wool insulation manufacturing pilot project, in which the scale and economics of the production of sheep's wool insulation were considered. Processing techniques, the impact of sheep breed, yield, energy use, and manufacturing costs were also examined. The results of the pilot project indicate that, while sheep's wool insulation produced at a smaller, or artisanal scale shows some potential, scale of operation and volume of production need to be carefully considered in order to ensure long-term sustainability of the operation. Using the least expensive sheep's wool available for the manufacture of wool batt insulation (and thereby reducing production costs) did not, in this pilot study, have a negative impact on productivity or product performance. Diversion of this waste stream of currently less marketable, and consequently less valuable wool, into the production of a green building material may offer small but significant benefit to sheep producers and the broader agricultural community, as well as consumers.     

Cost analysis in laccase production

In this paper the cost of producing the enzyme laccase by the white-rot fungus Trametes pubescens under both submerged (SmF) and solid-state fermentation (SSF) conditions was studied. The fungus was cultured using more than 45 culture medium compositions. The cost of production was estimated by analyzing the cost of the culture medium, the cost of equipment and the operating costs. The cost of the culture medium represented, in all cases, the highest contribution to the total cost, while, the cost of equipment was significantly low, representing less than 2% of the total costs. The cultivation under SSF conditions presented a final cost 50-fold lower than the one obtained when culturing under SmF conditions at flask scale. In addition, the laccase production under SSF conditions in tray bioreactors reduced the final cost 4-fold compared to the one obtained under SSF conditions at flask scale, obtaining a final price of 0.04 cent €/U.     

INEQUITIES FOR SMALL FOOD PROCESSING PLANTS RESULTING FROM LIQUID WASTE TREATMENT REGULATIONS1

ABSTRACT: The cost of the liquid wast treatment measures required to meet federal as well as typical state and local regulations was examined for dairy processing plants of various sizes. Federal effluent standards were found to produce higher estimated capital costs per unit of raw material for smaller plants, even with relaxed requirements for smaller plants. State regulations limiting the effluent BOD₅- concentration were also found to result in inequitable costs for smaller processors. These inequities result from economies of scale and not such factors as level of process technology employed or amount of waste produced per unit of raw material. In contrast, applying an example sewer surcharge formula did not produce inequities from economies of scale.     

A Multi-Years Analysis of the Energy Balance,Green Gas Emissions,and Production Costs of First and Second Generation Bioethanol

Contemporary reports on the energy and environmental benefits of bioethanol have suggested that the cellulosic ethanol is significantly more efficient. To understand the development potential of energy crops in Taiwan, the present study has assessed the resources and cost inputs for the planning, harvesting, transporting, and storing procedures of the first generation energy crops during 2007–2010 with the perspective of LCA. In addition, a field investigation focusing on rice straw, the largest agricultural waste in Taiwan, has been conducted since 2010 to obtain fundamental data.This study further analyzes the first and second-generation feedstocks from the perspective of LCA based on field investigated data. Taiwan has not yet established an ethanol plant; therefore, this study established production data by simulating the production efficiency of an economical scale using parameters obtained through production trials, and proposed an evaluation model for the energy input, GHG, and production costs of bioethanol in Taiwan. The results of this study were cross-compared with foreign literature to explore the development potential of bioethanol in Taiwan. The results indicate that based on the current cellulosic ethanol technology in Taiwan, regarding the energy balance, GHG, and production costs, is less efficient than that of the first generation bioethanol.     

ECONOMIC IMPLICATIONS OF PHOSPHORUS LOADING POLICIES FOR PASTURE LAND APPLICATIONS OF POULTRY LITTER1

ABSTRACT: Non-point source pollution created by agriculture is one of the major issues of intensive production. Recent studies indicate that the eutrophication from agricultural non-point source pollution, especially from phosphorus, is of growing concern. The objectives of this paper are to measure the economic opportunity costs of a proposed phosphorus management policy that targets soils with elevated phosphorus levels and examine the impacts of alternative policies such as Pigouvian taxes on the optimal use of litter. The study focuses on land applications of poultry litter in the Muddy Fork watershed of the Illinois River in Northwest Arkansas. The analysis indicates that restriction of litter applications on soils with elevated phosphorus levels will significantly reduce the net returns generated from forage production, resulting in an environmental policy with a high opportunity cost for producers. An analysis of alternative Pigouvian tax policies shows that a smaller tax per ton of litter applied can achieve the same litter control as that of a larger tax on a per acre basis.     

Measurement of market power for the environmentally regulated Korean iron and steel manufacturing industry

For industries in which where market prices of certain inputs are not available, measuring the degree of market power by using the markup over the marginal market cost may be inappropriate. With regard to the Korean iron and steel manufacturing industry, which is subject to environmental regulations, the calculation of the price of abatement capital is hindered by a lack of relevant data. To increase the reliability of market power markups, this paper estimates the restricted cost function in which abatement capital is assumed to be quasi-fixed at an optimal level and the supply relation. The degree of market power for the industry, measured as the ratio of the estimated market power markup to the supply price, was estimated to be 0.54 on average between 1982 and 2001. The results indicate that ignoring environmental regulations can overstate the degree of market power by approximately 12%.     

Effective retrofitting of post-combustion CO2 capture to coal-fired power plants and insensitivity of CO2 abatement costs to base plant efficiency

Existing coal-fired power plants were not designed to be retrofitted with carbon dioxide post-combustion capture (PCC) and have tended to be disregarded as suitable candidates for carbon capture and storage on the grounds that such a retrofit would be uneconomical. Low plant efficiency and poor performance with capture compared to new-build projects are often cited as critical barriers to capture retrofit. Steam turbine retrofit solutions are presented that can achieve effective thermodynamic integration between a post-combustion CO₂ capture plant and associated CO₂ compressors and the steam cycle of an existing retrofitted unit for a wide range of initial steam turbine designs. The relative merits of these capture retrofit integration options with respect to flexibility of the capture system and solvent upgradability will be discussed. Provided that effective capture system integration can be achieved, it can be shown that the abatement costs (or cost per tonne of CO₂ to justify capture) for retrofitting existing units is independent of the initial plant efficiency. This then means that a greater number of existing power plants are potentially suitable for successful retrofits of post-combustion capture to reduce power sector emissions. Such a wider choice of retrofit sites would also give greater scope to exploit favourable site-specific conditions for CCS, such as ready access to geological storage.     

Economic assessment of microbial biodiesel production using heterotrophic yeasts

The production of biodiesel using oleaginous microorganisms is investigated as promising alternative to produce a truly sustainable and renewable transportation fuel. While the feasibility of this approach has been shown on the laboratory scale, a commercial scale implementation is to date inhibited due to economic restraints. In order to evaluate the current cost situation and to develop suggestions to reduce production related costs, a simple cost analysis of the proposed microbial oil production process has been carried out. For closed fermentation in large-scale fermenters a break-even price of 2,350 US$ t^–1 for microbial oil was calculated. In the context of a sensitivity analysis it was shown that especially alterations in capital cost can lead to overall cost reductions. Accordingly, an open pond cultivation approach was designed, cutting the cost for equipment almost in half and decreasing the break-even price to 1,723 US$ t^–1. However, these reductions are only feasible when stable biomass and lipid yields can be ensured in open-pond systems, because the sensitivity analysis identified these yield parameters as leading factors influencing the break-even price. Even under very optimistic assumptions, it was not possible to reduce the break-even price below that of conventional plant oils as competitive products. Therefore, economic feasibility of the process will probably only occur if on one hand considerable technical development and efficiency improvements of the production process are made while on the other hand plant and crude oil prices are continuously increasing.     

Energy economy of salmon aquaculture in the Baltic sea

Resource utilization in Atlantic salmon aquaculture in the Baltic Sea was investigated by means of an energy analysis. A comparison was made between cage farming and sea ranching enterprises each with yearly yields of 40 t of Atlantic salmon. A variety of sea ranching options were evaluated, including (a) conventional ranching, (b) ranching employing a delayed release to the sea of young smolts, (c) harvesting salmon both by offshore fishing fleets and as they return to coastal areas, and (d) when offshore fishing is banned, harvesting salmon only as they return to coastal areas where released. Inputs both from natural ecosystems (i.e., fish consumed by ranched salmon while in the sea and raw materials used for producing dry food pellets) and from the economy (i.e., fossil fuels and energy embodied in economic goods and services) were quantified in tonnes for food energy and as direct plus indirect energy cost (embodied energy). The fixed solar energy (estimated as primary production) and the direct and indirect auxiliary energy requirements per unit of fish output were expressed in similar units. Similar quantities of living resources in tonnes per unit of salmon biomass output are required whether the salmon are feeding in the sea or are caged farmed. Cage farming is about 10 times more dependent on auxiliary energies than sea ranching. Sea ranching applying delayed release of smolts is 35–45% more efficient in the use of auxiliary energies than conventional sea ranching and cage farming. Restriction of offshore fishing would make sea ranching 3 to 6.5 times more efficient than cage farming. The fixed solar energy input to Atlantic salmon aquaculture is 4 to 63 times larger than the inputs of auxiliary energy. Thus, cage farming and sea ranching are both heavily dependent on the productivity of natural ecosystems. It is concluded that sustainable development of the aquaculture industry must be founded on ecologically integrated technologies which utilize the free production in marine ecosystems without exhausting or damaging the marine environment.     

On modelling the global copper mining rates,market supply,copper price and the end of copper reserves

The world supply and turnover of copper was modelled using simple empirical estimates and a COPPER systems dynamics model developed for this study. The model combines mining, trade markets, price mechanisms, population dynamics, use in society and waste as well as recycling, into a whole world system. The degree of sustainability and resource time horizon was estimated using four different methods including (1) burn-off rates, (2) peak discovery early warning, (3) Hubbert's production model, and (4) COPPER, a system dynamics model. The ultimately recoverable reserves (URR) have been estimated using different sources that converge around 2800 million tonne, where about 800 million tonne have already been mined, and 2000 million tonne remain. The different methods independently suggest peak copper mine production in the near future. The model was run for a longer period to cover all systems dynamics and delays. The peak production estimates are in a narrow window in time, from 2031 to 2042, with the best model estimate in 2034, or 21 years from the date of writing. In a longer perspective, taking into account price and recycling, the supply of copper to society is estimated to run out sometime after 2400. The outputs from all models put focus on the importance of copper recycling so that society can become more sustainable with respect to copper supply.     

Evaluating the PM damage cost due to urban air pollution and vehicle emissions in Seoul, Korea

This study evaluated the prospective damage costs of PM(2.5) inhalation. We performed a health risk assessment based on an exposure-response function to estimate the annual population risk in the Seoul metropolitan city, Korea. Also, we estimated a willingness-to-pay (WTP) amount for reducing the mortality rate in order to evaluate a statistical life value. We combined the annual population risk and the value-of-statistical-life to calculate the damage cost estimate. In the health risk assessment, we applied the PM(2.5) relative risk to evaluate the annual population risk. We targeted an exposure population of 5,401,369 persons who were over the age of 30. Using a Monte-Carlo simulation for uncertainty analysis, we estimated that the population risk of PM(2.5) inhalation during a year in Seoul is 2181 premature deaths for acute exposure and 18,510 premature deaths for chronic exposure. The monthly average WTP for 5/1000 mortality reduction over ten years is $20.20 USD (95% C.I: $16.60-24.50) and the implied value-of-statistical-life (VSL) is $485,000 USD (95% C.I: $398,000-588,000). The damage cost estimate due to risk from PM(2.5) inhalation in Seoul is about $1057 million USD per year for acute exposure, and $8972 million USD per year for chronic exposure. It is important to note that this cost estimate does not reflect all health damage cost estimates in this urban area. This recommendation is a model for evaluating a mortality risk reduction and as such we must re-evaluate an integrated application of morbidity risk.