1. For a trial period of one year:
(a) Liquid Carbon Dioxide (LCD) technology, may be applied in flexible slabstock polyurethane foam projects, where the annual CFC consumption of the enterprise is higher than 50 tonnes, except where national regulatory restrictions or other compelling reasons e.g.: the need to meet local market competition, prevent the use of methylene chloride, evidence of which should be attached to the project document:
(b) in flexible moulded polyurethane foam projects where both LCD and water-blown technologies are viable zero-ODP options, an enterprise would be free to choose its technology subject to the provision that the eligible grant would be based on the more cost-effective of the two technology options.
2. Incremental Capital Costs
(a) Flexible Slabstock Polyurethane Foam Projects
The calculation of the eligible incremental capital costs of LCD projects should be based on the following:
|
Category |
Cost Element |
Cost (US$) |
|
Technology |
Technology acquisition |
50,000[4] |
|
|
Technical support |
10,000 to 30,000 |
|
|
Training |
10,000 |
|
|
Trials |
15,000 |
|
|
Commissioning/Certification |
10,000 to 30,000 |
|
Equipment |
LCD Unit |
250,000 to 375,000 |
|
|
20,000 to 40,000 |
|
|
|
Miscellaneous Metering Units |
70,000 to 85,000 |
|
Civil works |
|
25,000 |
|
Total |
|
460,000 to 660,000[5] |
(b) Flexible Moulded Polyurethane Foam Projects
The calculation of the eligible incremental capital costs of LCD projects should be based on the following:
|
Category |
Cost Element |
Cost (US$) |
|
Technology |
Technical support |
10,000 to 20,000 |
|
|
Trials |
10,000 to 20,000 |
|
Equipment |
LCD Unit |
80,000 to 140,000 |
|
|
0 to 25,000 |
|
|
|
High pressure metering units |
0 to 90,000 |
|
Civil works |
|
5,000 |
|
Verification testing |
|
5,000 |
|
Total Incremental Capital Cost |
225,000 to 300,000 |
|
3. Incremental Operational Costs/Savings
(a) Flexible Slabstock Polyurethane Foam Projects:
The calculation of the eligible incremental operational costs or savings should be based on the following parameters:
|
Cost Category |
Costs Calculation |
Cost Range (US $) |
|
Chemical Costs |
Based on estimated total chemical costs for actual level of production before and after conversion. |
|
|
Yield loss |
4% first year |
|
|
|
2% second year |
N/A |
|
|
0% third year |
|
|
|
0% fourth year |
|
|
Other Costs |
|
|
|
Maintenance |
12,000 - 18,000 |
|
|
Power |
actual power increase |
3,500 - 5,000 |
|
LCD tank |
actual lease costs[6] |
4,500 - 5,000 |
(b) Flexible Moulded Polyurethane Foam Projects
The calculation of the eligible incremental operational costs or savings should be based on the following parameters:
4. Methodology for the Calculation of Incremental Operational Cost/Savings
The methodology for calculation of the incremental operational costs or savings should be based on the methodology approved for use with methylene chloride projects at the 12th meeting of the Executive Committee. In particular, the cost for chemicals required to manufacture the products produced with CFC technology in the year prior to project preparation will be compared with the costs for the chemicals required for the same level of production of the same products manufactured with LCD technology. Incremental yield losses will be based on losses of the finished product produced by the LCD process, calculated at 4% in the first year and 2% in the second year. The application of the methodology is demonstrated in Appendix I.
APPENDIX I
Application of the Methodology for Calculation of Incremental Operating Costs/Savings in Projects for the Production of Slabstock Foam using Liquid Carbon Dioxide Technology.
1. Incremental operating cost/savings for each year will be:
IOCy = (B2 - B1 ) + (C2 - C1 ) + M + P + T + Yy
= NPV {IOC1 + IOC2 + IOC3 + IOC4}
where:
y = year 1 to year 4
B1 = total annual cost of CFC blowing agent
B2 = total annual cost of LCD blowing agent for the same level of production after conversion
C1 = total annual cost of other input chemicals
C2 = total annual cost of other input chemicals for the same level of production after conversion
M, P, T, represent annual additional cost for maintenance, power and tank lease, respectively.
Yy is the incremental yield loss for each year, calculated as follows:
Y1 = 0.04 x level of production with LCD (tonnes) x market price of foam (US$/tonne).
Y2 = 0.02 x level of production with LCD (tonnes x market price of foam (US$/tonne).
Y3= Y4 = 0.
Tabular Presentation: Annual Costs
Savings (US $)
|
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
|
Blowing Agent |
B2 - B1 |
B2 - B1 |
B2 - B1 |
B2 - B1 |
|
Other chemicals* |
C2 - C1 |
C2 - C1 |
C2 - C1 |
C2 - C1 |
|
Maintenance, power, tank lease |
M+P+T |
M+P+T |
M+P+T |
M+P+T |
|
Yield loss |
Y1 |
Y2 |
0 |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(UNEP/OzL.Pro/ExCom/24/47, Decision 24/58, para. 86).
(Supporting document: UNEP/OzL.Pro/ExCom/24/39).