ANALYSIS OF THE COST AND THE ECONOMIC FEASIBILITY OF AN INVESTMENT FOR COGENERATION IN THE SUGAR INDUSTRY

Authors

  • Osvaldo Romero Romero Centro de Estudios de Energía y Procesos Industriales (CEEPI) Ave. de los Mártires no. 360 Sancti Spíritus
  • Esteban Jesús Quintero Concepción Centro de Estudios de Energía y Procesos Industriales (CEEPI), Sancti Spíritus
  • Rolando Alfredo Hernández León Centro de Estudios de Energía y Procesos Industriales (CEEPI), Sancti Spíritus
  • Héctor Pérez de Alejo Victoria Centro de Estudios de Energía y Procesos Industriales (CEEPI), Sancti Spíritus

Keywords:

Financial analysis, economic uncertainties, economic risks, cogeneration, integration of processes, energy cane

Abstract

The work presents the obtained results of the economic analysis of the investment for the assembly of a cogeneration plant in the sugar factory Melanio Hernández, that will work integrated to the sugar factory and the distillery the whole year using energetic cane as raw material when finishing the sugar season. In the work are determined the production costs of the integrated complex and financial indicators of the investment. In the development of the work are determined the cost of each product of the integrated complex, as well as Net Present Value, NPV, the Internal Rate of Return, IRR, and the Pay Back of an investment to install 23 MW of electric power in this factory. They are obtained as more important results that the investment will facilitate to obtain earnings for the sales of alcohol, sugar and electricity; on the other hand the results of the NPV, IRR and Pay Back demonstrate that the investment is feasible.

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Published

2006-04-01

How to Cite

Romero Romero, O., Quintero Concepción, E. J., Hernández León, R. A., & Pérez de Alejo Victoria, H. (2006). ANALYSIS OF THE COST AND THE ECONOMIC FEASIBILITY OF AN INVESTMENT FOR COGENERATION IN THE SUGAR INDUSTRY. Centro Azúcar Journal, 33(2). Retrieved from http://centroazucar.uclv.edu.cu/index.php/centro_azucar/article/view/617

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