Download User Manual: Integrated Environmental Control Model

Water Gas Shift Reactor Plant Costs
Process Facilities Capital: (see definition above)
General Facilities Capital: The general facilities include construction
costs of roads, office buildings, shops, laboratories, etc. Sales taxes and
freight costs are included implicitly.
Eng. & Home Office Fees: The engineering & home office fees are a
percent of total direct capital cost. This is an overhead fee paid to the
architect/engineering company.
Project Contingency Cost: Capital cost contingency factor covering the
cost of additional equipment or other costs that would result from a
more detailed design of a definitive project at the actual site.
Process Contingency Cost: Capital cost contingency factor applied to
a new technology in an effort to quantify the uncertainty in the
technical performance and cost of the commercial-scale equipment.
Interest Charges (AFUDC): Allowance for funds used during
construction, also referred to as interest during construction, is the time
value of the money used during construction and is based on an interest
rate equal to the before-tax weighted cost of capital. This interest is
compounded on an annual basis (end of year) during the construction
period for all funds spent during the year or previous years.
Royalty Fees: Royalty charges may apply to some portions of generating
units incorporating new proprietary technologies.
Preproduction (Startup) Cost: These costs consider the operator
training, equipment checkout, major changes in unit equipment, extra
maintenance, and inefficient use of fuel or other materials during startup.
Inventory (Working) Capital: The raw material supply based on 100%
capacity during a 60 day period. These materials are considered
storage. The inventory capital includes fuels, consumables, byproducts, and spare parts.
Total Capital Requirement (TCR): Money that is placed (capitalized)
on the books of the utility on the service date. TCR includes all the
items above. This result is highlighted in yellow.
Effective TCR: The percent of the water gas shift reactor TCR that is used
in determining the total power plant cost. The effective TCR is
determined by the “TCR Recovery Factor”.
Integrated Environmental Control Model User Manual
Water Gas Shift Reactor • 307