Average Daily Recovery Rate of 70 MCF
Assume 2,000 BTU vapor at $8/MCF
Daily= 70 MCF ×2 (accounting for BTUs) ×$8/MCF = $1,120 daily
Monthly= $1,120/day ×30 days = $33,600 monthly
Annually= $33,600/month ×12 months = $403,200 annually
Is Recovery Profitable?
Financial Analysis for a Conventional VRU Project | ||||||
Peak Capacity(Mcf/day) | Installation & Capital Costs1 ($) | O&M Costs ($/year) | Value of Gas2 ($/year) | Annual Savings ($) | SimplePayback (months) | Internal Rate of Return |
25 | $35,738 | $7,367 | $42,203 | $34,836 | 13 | 94% |
50 | $46,073 | $8,419 | $84,406 | $75,987 | 8 | 164% |
100 | $55,524 | $10,103 | $168,812 | $158,709 | 5 | 286% |
200 | $74,425 | $11,787 | $337,625 | $325,838 | 3 | 438% |
500 | $103,959 | $16,839 | $844,062 | $827,223 | 2 | 796% |
1 – Unit cost plus estimated installation of 75% of unit cost 2 – $9.25 x ½ peak capacity x 365, Assumed price includes Btu enriched gas (1.289 MMBtu/Mcf) |