Analysis of Options and Financial Proposition

INTRUDUCTION

Technical performances of biogas plants on municipal solid waste

Characteristics Parameters Values

Raw Material Tons/day 10 20 40 60 80 160
capacity (inlet)
Biogas production 𝑚3 /day 30 6072 12144 18216 24288 48576
36
Electrical power KW 17 34 67 101 135 270
consumption
Heat power KW 98 167 305 443 581 1134
consumption
Maintenance Operator 1 1 1 1 1 2
personnel
Number of main Pcs. 1 2 4 6 7 14
digesters
Area Required Hectares 0,3 0,5 1 1,3 2 3
Solid bio-fertilizer Tons/day 4,5 9 18 27 36 72
output
Liquido bio-fertilizer 𝑚3 /day 2 4 7 11 15 29
output

In the case of options analysis, comparisons made between two possible options. The first, called Project A, and
the second, called Project B.

What we did in Project A was to find cost information on a specific team dedicated to the sale of the same, then
we plated the problem Where would be best to install the plant in Mexico or else where. For Project A was
decided to install it on the DF being preferred install it here.

Project B, it was decided that using the same equipment prices would undertake the project. However, here the
plant would be installed outside the City in Toluca, adding to this, the cost of transportation to that state that
Project A made the assumption that there was no cost for the home advantage.
 PLANT LOCATION

 Project A, Near American and Caribbean villa, Delegation Tlahuac

Industrial site 23, 360 m2

 Project B. San Pablo Autopan, Toluca, State of Mexico

 Industrial site 25,157 m2

EQUIPMENT LIST

CONCEPT
Biodigester Tank
Macerator Tank
Pre-Feeder Tank
Bomb
Conveyor of screw
Light Plant
Filters
Biogas Tank
LP Tank
screener
Press Filter
Rotatory Drier
Baler
Conveyor of Band
Pipeline Costs

PLANT DATA

• Function of the plant: Production of compost from urban organic solid residues

• Type of process: Aerobic degradation of organic waste to produce a product like humus, and fine particles
stabilized.

Capacity and performance:

a) Design: RSOU 160 ton / day

b) Average: 130 ton RSOU / day

c) Minimum RSOU 50 ton / day

FINANCIAL ANALYSIS
The following analysis has a margin of error of + / - 30%

 Project A

USD Inversion
Total
Raw Material capacity (inlet) Ground costs Egineering* Equipment** Construction***
tons/day
10 75000 27090 606300 438600 1146990
20 150000 28380 1006200 632100 1816680
40 300000 30960 1806000 1019100 3156060
60 450000 33540 2605800 1406100 4495440
80 650000 34830 3005700 1599600 5290130
160 1200000 43860 5805000 2954100 $10,002,960

Investment is given by -$10, 002,960.00 US

RATE NPV
2% $6,539,632.67
TIR 3% $5,749,369.82
$7,000,000.00 4% $5,023,459.50
$6,000,000.00 5% $4,355,945.81
$5,000,000.00 6% $3,741,495.69
$4,000,000.00 7% $3,175,326.89
$3,000,000.00 8% $2,653,144.99
$2,000,000.00 9% $2,171,088.25
$1,000,000.00 10% $1,725,679.24
$0.00 11% $1,313,782.43
($1,000,000.00) 0% 5% 10% 15% 20%
12% $932,566.80
($2,000,000.00) 13% $579,473.01
14% $252,184.32
15% -$51,398.95
16% -$333,182.14

 General Values

CONCEPT VALUE
INVESTMENT COST -$10,002,960.00
ANNUAL SALES $ 5,064,241.00
ANNUAL COSTS -$2,779,038.00
NET EARNINGS $2,852,203.00
 TIR 15%
VPN $252,184.32
TREMA 14%

 Proyecto B

Inversion
USD Total
Raw Material capacity (inlet)
tons/day Ground costs Egineering* Equipment** Construction***
10 32300 27090 606300 438600 1104290
20 64500 28380 1006200 632100 1731180
40 128900 30960 1806000 1019100 2984960
60 193200 33540 2605800 1406100 4238640
80 257600 34830 3005700 1599600 4897730
160 515313 43860 5805000 2954100 9318273

Investment is given by -$9, 318,273.00 dollars

DETERMINATION OF IRR FOR THE GRAPHIC METHOD

rATE NPV
2% $7,210,894.43
TIR 3% $6,414,114.48
$8,000,000.00
4% $5,681,812.39
5% $5,008,028.66
$6,000,000.00 6% $4,387,426.82
$4,000,000.00 7% $3,815,221.28
8% $3,287,114.44
$2,000,000.00 9% $2,799,241.46
$0.00 10% $2,348,121.97
0% 5% 10% 15% 20% 11% $1,930,617.56
($2,000,000.00)
12% $1,543,894.48
13% $1,185,390.71
 14% $852,786.95
TIR 17% 15% $543,981.05
VPN $257,065.28 16% $257,065.28
TREMA 16% 17% -$9,693.72
18% -$257,872.70

CONCEPT VALUE
INVESTMENT COST -$9,318,273.00
ANNUAL SALES $ 5,064,241.00
ANNUAL COSTS -$2,779,038.00
NET EARNINGS $2,285,203.00

COST OF PRODUCTION OF THE COMPOST

Compost Production $1, 092.00

Sale $1, 200.00

COST OF PRODUCTION OF THE BIO-GAS

Bio gas Production $2.21

Sale $2.69

Analyzing both proposals, Project VAN B offers May 1, so it would be the way to go, since the difference
is in the cost of the land while in the DF costs almost double that of Toluca and even adding
transportation costs, it is still much cheaper in Toluca.

Therefore, our proposal is a RSO treatment plant of the City for the production of bio-gas and compost located
in Toluca, State of Mexico, with an investment of $9, 318,273.00 dollars.