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This analysis evaluates options for a metal parts cleaning firm including solvent recycling and non-hazardous methods, considering costs, benefits, and environmental impacts over a 10-year period.
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Example • Firm that cleans used metal parts
Measure Baseline Waste Generation Fugitive emissions 50 gallons 4,000 gallons 3,950 gallons CLEANING PROCESS New solvent Waste disposal
Measure Baseline Costs • Input solvent • $3.50/gallon × 4,000 = $14,000 per year • Waste disposal • $2.50/gallon × 3,950 = $9,875 per year
Assumptions • 5% inflation rate • Real price increase for solvent of 1% annually • Real price increase for disposal of 4% annually • Discount rate of 6%
Identify Options • 1. Recycle solvent • 2. Use non-hazardous cleaning method
Measure Waste Generation for Option 1 Fugitive emissions 50 gallons 360 gallons 3,950 gallons CLEANING PROCESS New solvent RECYCLE 310 gallons 3,640 gallons Waste disposal
Measure Benefits Option 1 • No change in production of output, so no revenue change for output • No revenue from recycled solvent because it is used rather than sold.
Measure Costs Option 1 • Investment Expense ($66,500) • $40,500 Tanks, pumps, mixers • $20,000 Installation (design, piping, labor) • $6,000 Contingency • Operating Expense • $240 Utilities • $5,000 Operations labor • $3,325 Maintenance • $1,260 New solvent (360gallons @ $3.50 per gallon) • $775 Waste disposal (310 gallons @ $2.50 per gallon) • $120 for training $8,565
Assumptions • 10 year equipment life, no salvage value • Straight-line annual depreciation (divide capital cost by 10) • Cost of capital is 12% annually for 3 year equal payments • 5% inflation rate • Real price increase for solvent of 1% annually • Real price increase for disposal of 4% annually • Discount rate of 6%
Measure Waste Generation for Option 2 4,000 gallons 4000 gallons CLEANING PROCESS New solvent Non-hazardous waste disposal to sewer
Assumptions • 5% inflation rate • Waste solvent can be sewered at negligible cost • Discount rate of 6%
Measure Costs Option 2 • 4000 gallons solvent at $4.60/gallon. • $120 for training
Outcome? • Comparing recycling to current practice, would save $81,317.23 over 10 years • Comparing material substitution to current practice, would save $75,702.02 over 10 years
What is Life Cycle Analysis? • A tool to understand environmental impacts associated with products, processes, and activities • LCA is a systems approach to evaluating environmental consequences of a product or process • It takes a “cradle to grave” or “cradle to cradle” perspective. • A systematic set of procedures for examining the environmental impacts of a product or service throughout its life cycle
Applications • Alternative Fuels/energy sources • Alternative materials(Aluminum vs. Steel body, Asphalt vs. concrete, wood vs. brick • Alternative processes (Corn-biomass ethanol) • Alternative products (cloth diapers vs. disposable diapers) • Alternative packaging (cans vs. tetra-packs) • Alternative end of life management options (recycle, incinerate, dispose) • Environmental, economic tradeoffs