Economics at your fingertips  

Cost analyses and predictions for a fuel ethanol plant in a rural and landlocked African country: Lang factor approach

B. Amigun and H. von Blottnitz

International Journal of Production Economics, 2009, vol. 119, issue 1, 207-216

Abstract: Research on improving ethanol production as an alternative to petroleum based fuel has been accelerating for both ecological and economical reasons. A simplified procedure for rapid ball-park cost estimate that can be used as a research tool by energy policy makers for targeting area of cost reduction in a project, for comparing alternative design and for reviewing achieved costs on completed projects is described. In this study, an operating, commercial scale fuel-ethanol plant annexed to a sugar industry and based on molasses in a poorly accessible rural and landlocked African country was used to determine the cost structure. Analysis of the breakdown of the fixed capital investment (FCI) cost, based on the principle of factorial method of capital cost estimation and using Lang factor (fL) analysis was used to create an econometric model for calculating FCI cost. The model suggests a Lang factor of 2.40 and 2.81 for outside and inside battery limits plant, respectively.

Keywords: Fuel; ethanol; Fixed; capital; investment; Lang; factor; Ball; park; estimate; Battery; limit (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

International Journal of Production Economics is currently edited by R. W. Grubbström

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2021-06-30
Handle: RePEc:eee:proeco:v:119:y:2009:i:1:p:207-216