Filtration and Vacuum Specialists since 1976

www.jbii.com

The Micron
JB Systems Little Newspaper
April 2005
1334 Greenville Rd.
LaGrange, GA 30241
1-706-884-3006
Filtration and Vacuum Specialists since 1976

www.solvetrecoveryusa.com




Example Payback Analysis and Cost Worksheet


The following example is an analysis of how to use payback when considering whether to purchase a still. For the purposes of this example, we made the following assumptions:


  • 20% solids in the waste solvent
  • A 3kWh distillation unit
  • A generation rate of 5 gallons of solvent / day (24 drums / yr)
  • 3 batch / week frequency.

. . . .

Assumed Costs

.

Initial Capital Investment

.
Distillation Unit $6,000 Distillation Unit $6,000
Power $0.061 / kWh Installation $1,700
Installation $1,700 Total Capital Investment $7,700
Labor rate $20 / hour Annual Savings; Raw solvent savings $4,752
Disposal $200 / drum solvent; Current disposal (24 drums) $4,800
Labor for still (1 staff-hour per batch) $350 / drum still botoms Disposal after installation ( 3 drums ) ($1,050
Labor for maintenance 0.5 hours / week Total Annual Savings $8,502
Raw Solvent $4.50 / gallon . .

. . .



Annual Costs

.
Operation $3,640
Utilities 228
Total Annual Costs ($3,868)
Net Annual Savings $4,634
Payback period (approximately 2 years) $7,700 Capital Costs
Annual Savings $4,643
Labor for maintenance 0.5 hours / week
. .

.


Cost Worksheet


Waste Solvent Generated

(A) Gallons per year: Galls/day x No. of working days/year = Drums per year: Galls/yr (A) divided by 55 (galls/drum) =
(B) Drums per year: Galls/yr (A) divided by 55 (galls/drums) =

Capital Costs

(C) Recovery Unit Cost: =
(D) Installation Cost (include materials and labor): =
(E) Total Capital Costs: (C + D ) =

Annual Savings in Disposal

(F) Current Disposal Cost: drums/yr (B) X $/drum =
(G) Future Disposal Cost: %solids x drums/yr (B) x /drum solids=
(H) Net Savings for Disposal: (F - G) =

Annual Savings in Raw Solvents

(I) Galls.yr (A) x % liquid x $/gall new solvent =

Annual Operating Costs

(J) Operation Labor: hours/week x rate/hr x 52 weeks/yr =
(K) Maintenance Labor: hours/week x rate/hr x 52 weeks/yr =
(L) Power Costs: Power req't (kWh) x operating hrs/yr x $/kWh =
(M) Water and Sewer if needed: =
(N) Total Operating Costs: (J + K + L + M) =

Net Annual Savings

(O) Disposal and solvent savings less operating costs: (H + I ) - M =

Projected Payback Period

(P) (P) Capital Costs (E) divided by Net Annual Savings (O): (E/O) =

Regulatory Reminder: You are legally and financially responsible for properly handling your wastes. Hazardous wastes are regulated until they actually enter the recycling process. Before the spent solvent enter the still, you are responsible for complying with the regulations on proper accumulation, handling, transportation, and storage for hazardous waste.
We would like to thank the Washington State Department of Ecology for contributing this information contained in the newsletter


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