PDF Publication Title:
Text from PDF Page: 045
METHANE RECOVERY FROM ANIMAL MANURES: THE CURRENT OPPORTUNITIES CASEBOOK Tax Reform Act of 1986, depreciation of capital equipment is one of the few incentives which can legitimately increase the economic performance of AD technologies. 5,6 After review of Internal Revenue Service publications, the 7-year 150% declining balance general depreciation system (150% DB-GDS) election offered under the modified accelerated cost recovery system (MACRS) was used. The depreciation method and time period was one choice under the MACRS. Although it appears that the 200% double DB-GDS can also be used in situations involving ownership by an unrelated party, the 150% DB-GDS is directed toward farm rather than non-farm property classes. As with all matters related to taxes, a competent accountant or attorney should be consulted to maximize all legitimate incentives. Because there is not much long-term experience using covered lagoon digesters in North Carolina, the last area of uncertainty relates to project life. As will be shown in the next section, a number of swine farm covered lagoon digesters have demonstrated practical lives longer than 10 years. Based on this objective evidence, it was assumed that a well-designed and maintained covered lagoon digester had a project life of 15 years. There were a number of other smaller-impact assumptions. To be conservative in estimating tax rates, this study assumed a 32% combined tax rate. All financial exchanges were assumed to be “cash-and-carry” with no budget constraints. This study assumed a zero salvage value of all capital equipment. The last implicit macro assumption was in the use of the end-of-year convention. It was assumed that all project capital costs were incurred during Time 0. TABLE 3.1: Macro CashFlow Variables O&M Nominal Growth Rate Energy Expense Nominal Growth Rate Nominal Discount Rate Marginal Tax Rate Depreciation Method Project Life 3.1.1 Base Water Usage Digester Cost and Energy Estimates 2.4% 1.2% 14.25% 32.0% 7-Year 150% DB-GDS 15 Years For the purpose of estimating capital cost and energy production rates, the covered lagoon digester was assumed to be located in Duplin County, North Carolina. The next step was estimating herd size, which refers to the number of on-farm animals. The herd size information 7 wasobtainedfromadesignreport usedtosizeacoveredlagoondigesterona“typical”1000- sow farrow-to-finish swine farm. The farm population (sows, nursery, grower, finisher, and boars) was 11,474 animals with a total live animal weight (LAW) of 1,558,808 lb. 5 Internal Revenue Service (1996). Publication 534: Depreciation. Washington, DC: Internal Revenue Service. Internal Revenue Service (1996). Publication 946: Depreciating Your Property. Washington, DC: Internal 6 Revenue Service. 7 Preliminary Design Report. Raleigh, NC: NC Energy Division, Department of Commerce. Safley, L.M.; Crawford, S. (1992). Carroll’s Foods Farm #37 Biogas Project: Low Temperature Lagoon Digester 3-4PDF Image | Methane Recovery from Animal Manures The Current Opportunities Casebook
PDF Search Title:
Methane Recovery from Animal Manures The Current Opportunities CasebookOriginal File Name Searched:
biogas02.pdfDIY PDF Search: Google It | Yahoo | Bing
Capstone Turbine and Microturbine: Capstone microturbines used and new surplus for sale listing More Info
Consulting and Strategy Services: Need help with Capstone Turbine, sizing systems, applications, or renewable energy strategy, we are here to assist More Info
Container Lumber Dry Kiln: Since 1991 developing and innovating dry kilns using standard shipping containers More Info
Supercritical CO2 Lumber Dry Kiln: Compact fast drying in 3 days or less for small amounts of wood and lumber drying More Info
BitCoin Mining: Bitcoin Mining and Cryptocurrency... More Info
Publications: Capstone Turbine publications for microturbine and distributed energy More Info
FileMaker Software for Renewable Energy Developing database software for the renewable energy industry More Info
CO2 Gas to Liquids On-Demand Production Cart Developing a supercritical CO2 to alcohol on-demand production system (via Nafion reverse fuel cell) More Info
Stranded Gas for low cost power Bitcoin Mining Using stranded gas for generators may provide breakthrough low power costs for cryptocurrency miners. More Info
| CONTACT TEL: 608-238-6001 Email: greg@globalmicroturbine.com | RSS | AMP |