Basis for Techno-Economic Analysis.docx

Basis for Techno-Economic Analysis

The Techno-Economic Analysis (TEA) required shall follow the analysis procedures documented in NETL’s “Quality Guidelines for Energy System Studies: Performing a Techno-Economic Analysis for Carbon Conversion Technologies”[footnoteRef:1] (AOI-1, All subtopics) to the greatest extent possible. Adjustments to the guidelines can be made due to the nature of the individual component technologies being assessed, and all deviations/assumptions should be specifically detailed. Application and reporting requirements for the TEA are described in the table below: [1: Energy Analysis | netl.doe.gov]

Recipients will have submitted a preliminary techno-economic analysis (TEA) in accordance with the application requirements described in NOFO section IV, Application Content and Form. All Recipients will complete a final TEA.

As specifically outlined in the document, required elements of a complete TEA include:

· General block flow diagram identifying all major process equipment for the entire process and accompanying stream tables.

· Material and energy balances around the complete process, including electric power requirements, heating and/or cooling requirements, etc.

· System performance summary.

· Complete stream tables showing operating pressures, temperatures, compositions, and enthalpies for all streams entering or leaving major process equipment.

· Economic analysis including capital cost estimation and operation and maintenance costs.

· Include list of equipment used to develop capital cost estimate including:

· Key parameters and their value for equipment costing (e.g. height, diameter, heat duty, delta temperature, power consumption, etc.)

· Individual component cost (e.g. carbonation chamber, humidifiers, air contactors, desorption equipment, compression, etc.).

· Final summary report.

The preliminary TEA must describe the product in its intended end-use application, including: (1) market size, (2) required selling price of the product, (3) gross revenue, (4) predicted compound annual growth rate (CAGR) of the market, and (5) CO2 mitigation potential. In addition to the process values required in the State Point Data Table (Appendix S for conversion technologies), the total amount of CO2 converted per unit product and time shall be reported. Any required state or composition change of the source carbon supply material (i.e., purification, separation, compression, heating/cooling) should be included in the cost and performance of the carbon conversion technology as part of the TEA.

For reference, the Quality Guidelines document includes additional pertinent information including, but not limited to:

· Description of common missteps and omissions

· Guidance on system boundaries

· Example performance summary and cost tables

Sensitivity analysis identifying critical overall system processes, associated operating parameters, and their impact on overall system performance (such as capacity, carbon balance and energy use efficiencies) and economics should be performed. The analysis shall be conducted to be representative of a commercial embodiment with performance assumptions informed by performance data generated during the enacted project.

The TEA results MUST be integrated with the life cycle analysis (Appendix I).

Involvement of a variety of stakeholders is seen as an important facet to developing an effective carbon capture technology. It is considered critical that a qualified organization with professional experience in performing this type of work conduct the TEA. This activity shall not be viewed as a training exercise for inexperienced personnel.

Questions about this NOFO? Email DE-FOA-0003495@netl.doe.gov.