Dear Sir,
Very much organized and highly relevant in the contemporary era, given the abundance of products offering similar outputs at varying initial investments. I have outlined a general comment with a practical example below that we observed while doing the analysis.
There are two distinct types of coke-making technology:
1. Heat Recovery Technology: This method not only produces primary product coke but also recovers high-temperature exhaust gases, which are subsequently utilized for steam or power generation.
2. Byproduct Recovery Technology: In addition to coke, this technology also recovers high-calorific value gases and valuable by-products.
While both methods yield similar raw material-to-product ratios, they differ in terms of power, water, and maintenance cost consumption, as well as asset lifespan.
Without delving into the intricacies of the technology further, since the final product remains the same, we can employ life cycle costing with a credit for byproducts.
If technology selection is solely driven by life cycle costing principles, byproduct credit has to be considered a component of life cycle cost (line #256) during the calculation of present value other-wise calculation will produce wrong result.
Thank you for your attention to this matter.
Sincerely,
------------------------------
Sanjoy Roy
Cost Estimation Engineer
Mangaf
sanjoyroy.1609@gmail.com------------------------------
Original Message:
Sent: 03-28-2025 05:10 PM
From: Christian Heller
Subject: (PUBLIC REVIEW DRAFT) 138R-25: Introduction to Life Cycle Cost Analysis
(PUBLIC REVIEW DRAFT) 138R-25: Introduction to Life Cycle Cost Analysis
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This draft RP is open for review and comment until May 12, 2025.
Please note that this draft RP contains several additions and revisions to RP 10S-90, Cost Engineering Terminology, namely:
- (New) LIFE CYCLE COSTS
- (New) LIFE CYCLE COST ANALYSIS
- (New) LIFE CYCLE COST ESTIMATE
- (Revised) LIFE CYCLE, ASSET LIFE CYCLE
- (Revised) LIFE CYCLE COST (LCC) METHOD
- (Revised) LIFE CYCLE COSTING
- (Revised) LIFE CYCLE VALUE ANALYSIS
- (Revised) UNIFORM (ANNUALIZED) VALUE
- (New) GRADIENT VALUE
- (New) DISCOUNT FORMULA
- (Revised) PRESENT VALUE
- (Revised) FUTURE VALUE
- (Revised) DISCOUNT RATE
Christian Heller
Director of Technical Guidance
AACE International
cheller@aacei.org