A private company had been considering the conversion and/or replacement of some of its existing diesel or coal-fired generation units, exploring the option of switching to Heavy Fuel Oil (HFO). To assist with this evaluation, the company engaged K&M to develop a proposal for conducting a return-on-investment analysis for different scenarios related to HFO conversion or replacement.
The proposal encompassed the following components:
- Conversion and newbuild technical analysis: This involved assessing the viability of converting existing units to HFO, considering factors such as technical feasibility, equipment compatibility, and potential modifications. Additionally, K&M conducted an analysis of newbuild HFO technology options, including the associated balance of plant (BoP) requirements and cost analysis.
- Scenario analysis: K&M performed a comprehensive scenario analysis, examining various conversion and replacement options to determine their economic viability. This analysis considered factors such as capital costs, operational efficiency, fuel availability, and environmental impacts.
- Implementation roadmap: K&M developed an implementation roadmap outlining the steps and timeline required for the execution of the selected HFO conversion or replacement strategy. This roadmap provided a structured approach to guide HSA in the successful implementation of the chosen scenario.
By conducting the return-on-investment analysis and providing a comprehensive proposal, K&M supported the private company in making informed decisions regarding the conversion or replacement of their existing diesel or coal-fired generation units with HFO. The analysis considered technical aspects and scenario evaluation and provided a roadmap for the implementation of the chosen strategy.