Economics and IRR
On this page
FREE ENERGY Provides COMMUNITIES . . .
The IRR on YouTube Video
An Estimated Economics and Internal Rate of Return
The Spreadsheet with Live RECALCS
FREE ENERGY Provides COMMUNITIES . . .
The IRR on YouTube Video
The Internal Rate of Return (IRR) is an indication of whether the owners of a business will see achievement and successes in their investment. Included is the length of time that will allow them ro recover their investment.
This project looks at the sense of the equality of People. A Credit Union, for example, owns the Business and ALL the MEMBERS own the Credit Union with equal votes.
The Members all SHARE the profits.
The RECOMMENDATION is for the project to be eventually TURNED OVER to the COMMUNITY where it is located.
The ideal process of handing over the Business to a COMMUNITY is through a Build-Operate-and-Transfer (BOT) method. After the Business Entity recovers it Investment with Profits, agreed upon, a Community becomes the OWNER of the Project, through the BOT Contract.
At this point, the Community may reduce the selling prices of Electricity, Water, Drying, Freezing, and Chilling to DECREASE the amount of the "gravy." The selling prices of Salt should match the importation price to
Maintain the Revenue of the Community at a high level
After the BOT turn-over, more Money will be CIRCULATING within the Community, since Profits have already been recovered and taken out
The leaders of the Community will determine the selling prices to provide for funds that can be set aside to stimulate other DEVELOPMENT Projects
Without the Project, the costs of the major products that are outputs this Project provides are found as entries on the Expenses.
These products are purchased independently from those who produce them. Water, salt, dryer energy, etc., are produced at those sources, and in many cases most efficiently using their technology.
Very briefly, consider the borders of the Community. Those products that cross the border coming inside are considered Expenses. The money that the Community did not spend to pay products coming in are no longer in the Expense entry.
And since the Community produces these products that members buy, the money that they will use to buy will go to income (which may be considered as savings).
The NIBIT (Net Income Before Interests and Taxes) will come out the way it always does.
When the project is completed by the Community, its Income Statement will RADICALLY change. The arrows provided, above, indicate the direction of the results.
What are the facts on the new Income Statement?
Water, salt, dryer energy, etc., are no longer costs because they are produced here from free energy. Thus, they should not be on the expense entries.
Instead, they become sources of income for the Community, thus they should be found on the Revenue entries.
Now, the equation
NIBIT = Revenues LESS Expenses
will RADICALLY reflect a very beneficial project for Communities.
It is worth noting that as the NIBIT increases fast, the more the Communities will be able to pay back the Investments.
Such Financials as generated by this Project are expected to open the arms of Banks, especially, those owned by the Government. Financial institutions will initially hesitate fo fund the first Project in the history of the country. These financial institutions will offer better proposals to Communities, after the completion and success of the first Project.
The Cash Flow Statement will also radically change, and show admirable values. The Internal Rate of Return (IRR), which reflects the forecasted performance of the Project is an important factor for financing.
This is going to create the understanding of Finance.
This is a list of advantages for the Project.
On Carbon Credit (CO2) release.
This Project uses 128 liters per hour of gasoline. At this consumption it releases 128 liters per hour x 2.35 kilograms of C02 per liter equals 300 kilograms of CO2 per hour.
Advanced Technology. 149 kW of electrical output is generated, and nothing else. With respect to energy, the Advanced Technology will release 2.01 kilograms of C02 per kilowatt-hour of electricity.
Oops, there is an exception to this statement. The Power Plants in Batangas using Natural Gas from Malampaya operate at an efficiency of 60% or more, because these plants recovered the energy from the gas turbines to generate steam and use this steam to generate more power. It is here that the First Philippine Holdings could be admired, not only for clean fuel, but also for recovery. The amount of CO2 per kilowatt-hour that is released to the environment will beat many other power plants. Data are not available for this website to pin down certain values, but the results will surely be admirable and could be a model.
The Project's Technology. This will use 1,296,800 BTU per hour or 1,296,800 / 3,412 BTU per kilowatt-hour equals 380 kilowatt-hours. This shows that the Project will release 300/380, or 0.789 kilograms of CO2 per kilowatt-hour of work. If the work performed by the Absorption Chiller is added, that value will be reduced.
What is the lesson here? For every kilowatt-hour of work done by the fuel, the Advanced technology releases 2.5 times more C02 for work done, except the Power Plants in Batangas that use Natural Gas from Malampaya.
Conclusion on Carbon Credit:
It is simply a wonderful feeling that this Project releases lesser CO2 per kilowatt-hour of electricity and work for the benefit of the Planet.
Conversions, below:
1 gallon of gasoline releases 8,887 grams of CO2
1 gallon is 3.785 liters
1 liter releases 2.35 kilograms of CO2
gasoline has a lower heating value (LHV) of 18,659 BTU/lb
200 horsepower engine consumes 128 liters per hour
On Government Incentives.
Republic Act No. 11285 (Energy Efficiency and Conservation Act) Philippines 2021. This Act, approved on 12 April 2019, sets out plans to increase energy efficiency and reduce consumption within the Philippines.
The law is to be implemented by the Department of Energy and the legislation provides for various new mandates of the department, as well as imposing responsibilities on other government bodies. An inter-agency committee on Energy efficiency is created.
https://climate-laws.org/document/republic-act-no-11285-energy-efficiency-and-conservation-act_ae48
No Toxic Brine.
No brine with high salinity beyond 6.5% (or as provided by law), is sent back to the sea. Concentrated salt water is conveyed to micro or mini salt farms on land. Salt crystals are allowed to dry there.
Responsible Human Beings Caring for Planet.
The power plants using Malampaya Natural Gas in Batangas release less CO2 than is released by Advanced Technology
EXPORT - Made in the Philippines.
If the project succeeds, everyone is sure that other countries will ask the Philippines to install the System there.
And, will these other countries experience similar movements of the ECONOMICS and IRR of the Project?
An Estimated Economics and Internal Rate of Return
This is nothing but a simple approximation.
It will need further REFINEMENTS in values that are NOT actual and current.
Values here are collected from internet posts of various dates, thus, demanding validation and verification for current true OFFICIAL values from trusted official documents.
The Spreadsheet with Live RECALCS
The arrow on the TOP RIGHT CORNER will open the whole sheet on a new tab. Near the top right is a symbol on the browser that starts a DOWNLOAD when clicked.
Anybody who wants to evaluate the Calculations for the Project will INITIALLY press the button for "Enable Editing" on the top of the spreadsheet. The edited copy will AFFECT the copy being edited.
By the way, the formulae have not been protected to allow modification at the user's discretion. To go back to the source, the user will simply retrace the steps described above, or keep a copy of the Worksheet at a preferred location.
Certain cells are provided with "Comments". While at the browser, the user can view them by clicking those that are of interest. Each comment, is for that PARTICULAR cell.
Once downloaded, the Excel will show each comment while the pointer is in a specific cell. "mouse hover" will activate.
ENJOY ! ! !
The GOAL is to bring the PROFIT to ALMOST ZERO after the Project Investment is Recovered.
This is to ADJUST the REVENUE for the COMMUNITY, which is the OWNER of the Project.
Money stays within the Community to CIRCULATE.
BENEFITS for COMMUNITIES and DESCENDANTS, for CLIMATE, and for the PLANET are not QUANTIFIED
These are the ITEMS that are DERIVED from the Project Design.
RECOMMENDATION FOR REVIEW: A Mechanical Engineer with a Professional License granted by the Professional Regulations Commission.
This estimate includes the whole picture that includes land, cost of technical assistance, transport cost of components, training and manuals, and the cost of money.
The first line on top is for components.
The last line at the bottom is the TOTAL Amount for the Project.
RECOMMENDATION FOR REVIEW: A Mechanical Engineer with a Professional License granted by the Professional Regulations Commission.
Contents of this Website
What is this Project about?
If you don't mind, I will do it this way . . .
Platform for Change and Development for the Community
To Balikatan and Back with Unbelievable Ease and Grace
The Development Philosophy
Memo from the President and Chief Executive Officer of NAPOCOR
Great Ideas
Electric and Hybrid-Electric Tricycles
Power, Water, Salt, Dryer, and Chilling Diagram
Process Flow
Introductory View of Many JOBS Created
A video of the first 3-Phase electric run of Ateneo de Manila University Hybrid-Electric Tricycle
Why, why, why, and responses . . .
Let's do it "Bayanihan"
The Whole System in Blocks
Representations of the Components of the System
The Production of Water and Salt
The Lithium-Bromide Absorption Chiller Driven by the Condensed Steam Provides would Contribute Heat Energy for the DRYER
Engine Transmits Power to Shaft where Chargers are Connected
Engine Always Operates at High Efficiency
Battery Source Gives Power at High Efficiency
Automated Engine Control System (AECS)
Supervisory Control and Data Acquisition (SCADA)
A Very Brief View of How the Philippines Achieved the Energy Independence of 56% in 1983, as a Departure from the Energy Independence of 4%, in 1973, equivalent to Energy Dependence of 96% in 1973
A YouTube Video of How Co-Generation Helps Achieve Energy Independence
"Missionary Electricity" is Amplified by this Project
A Collage of Some of the Benefits to the Communitu
The Traditional Salt Farm will be Revived with Mini or Micro Salt Farms
The Tricycle which is Electric or Hybrid-Electric
Bongao, Sibutu, or Similar Communities are examples of Isolated Communities that will Benefit
Traditional Rice Drying by the Sun
Sari-Sari Stores Selling Preserved Food will be Selling More Tapa, Danggit, Tuyo, etc
The Preparing of Copra to Become Exportable Due to the Inability of Aflatoxin to Develop
Water to Drink
Coastlines, or Shorelines, with the Philippines Being the Fifth Longest in the World with 36,289 Kilometers
This Technology here says
HOW TO . . .
Economics and IRR (Internal Rate of Return)
FREE ENERGY Provides COMMUNITIES . . .
The IRR on YouTube Video
The Spreadsheet with Live RECALCS
What are expected to be done?
Water-Cooled Gasoline Engines
The Engineering HOW with respect to the side effects of temperature and salt on the metals
The process of collecting the Energy from the cooling water of the engine
Collecting Energy from the Exhaust and from the Steam
The Engineering Aspects of the Design of the Project
The Decision on the Shapes and Layout of the Heat Transfer Components
First Intended Layout
Second Intended Layout
Third Intended Layout
Valves for the Salt Slurry
HOWTO . . . The Project Organizational Entity
Authorization by Law
ONE LAST QUESTION: How does Community PROFIT impact the Business Community OR Would it be useful for Corporations to implement CSR via this Project?
Simplified Process Flow
This Section summarizes those outputs
Electricity from Batteries Charged Here
Drinking Water
Salt Production
Rice Dryer
Economics and Internal Rate of Return (IRR)
Conversion of Ambulant Engine-Driven Rice Mill to Motor-Driven
Acceptance is Bayanihan / Balikatan / Tulongan