RE:RE:Carbon Tax savings/payback timelinevers1demainvert wrote: WOW ! Congrats j11, good job.
jefftrade11 wrote: Someone recently asked, "How much money can be saved on carbon taxes by using Plasma torches, and what is the pay back time on the investment?"
So a quick google search gave me the carbon tax rates for most countries in the EU. They vary widely, but result in an average price in USD of 36.63$ per ton/Year. There are other differences such as taxing different gases specifically, also fines involved for going over certain limits, but to keep it simple I just used the standard posted rates (as of 2019) and took an average of the 16 countries. One could also cross reference steel producing coutnries VS non producers to get a better average, but again I never went that far.
So as stated in PYR news release, this could redude GHG emmisions by "350 000 TPY per plant"
So 36.63$ x 350000 = $12, 820,500.00 USD per year in savings on carbon taxes per plant.
So at 3M$ per torch, 50 torches per plant = $150M per plant for torches which means approx 11 years to pay back investment based on Carbon tax savings alone ( which also rise each year, cutting the payback time)
Those are numbers based on the average tax rate, some countries are .08$ per ton (Poland) to as high as $132.17 per ton (Sweden) so it will really depend on where the plants are located.
If we look at a Swedish scenario (where RISE is located so very likely where some customers are based) we get a much quicker pay back schedule
Sweden $132.17/ton x 350000 = $46,259,500.00 per year savings on Carbon taxes alone. Keep in mind these are recurring savings year after year.
So at $46.25M/year paback time = 3.24 years. Thats based stricly off of carbon tax savings, not accounting for any other fines, or production savings from using torches vs burners.
I'd say that makes a VERY compelling investment case for many producers, especially those with stricter enviro policies. Hopefully the final modelling phases will help shed more light on the benifits of switching, and possibly where the clients are located so we could crunch numbers more effectivley.
These are by no means end all be all numbers, just stuff I quickly pulled off the web, so feel free to correct me if I'm wrong, or if you come up with a more efficent data set.
here is where I pulled the numbers from.
https://taxfoundation.org/carbon-taxes-in-europe-2019/
Cheers
Awesome DD
With Carbon Tax savings like this, it is a no brainer for large industry to switch to PYR torches.
Plus the power savings and social licence that comes along with lower GHG's
Long and Stong
Tip of the Iceberg!