Process Simulation Modeling, Techno-Economic Analysis & Life Cycle Costing

Process simulation modeling, techno-economic analysis (TEA), and life cycle costing (LCC) are essential tools for assessing the technical and economic feasibility and sustainability of industrial processes and emerging technologies.

  • Process simulation modeling enables in-depth analysis of production systems, including mass and energy balances, to optimize process design, resource efficiency, and scalability.

  • Techno-economic analysis (TEA) combines engineering data with economic metrics to evaluate capital expenditures (CAPEX), operating costs (OPEX), profitability, and financial risk—providing insight into cost-effectiveness and investment potential.

  • Life cycle costing (LCC) expands on TEA by capturing the full cost of ownership across a product or system’s life span, from acquisition and operation to maintenance and end-of-life disposal.

Together, these methodologies offer a holistic evaluation of technical performance, economic viability, and long-term sustainability, empowering stakeholders to make informed decisions about the development, deployment, and scaling of innovative technologies and infrastructure.

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     Integrated Workflow for Process Simulation Modeling, Techno-Economic Analysis (TEA), and Life Cycle Costing (LCC)

Our integrated approach combines process simulation, techno-economic analysis (TEA), and life cycle costing (LCC) to evaluate technologies from both technical and financial perspectives. We define clear objectives, model processes with advanced tools, and assess costs and risks across the full life cycle. By integrating these insights, CSA delivers decision-ready strategies that are technically sound, economically viable, and environmentally sustainable—helping clients reduce uncertainty and accelerate implementation.

1. Define Objectives & Boundaries

  • Establish the study’s purpose (e.g., cost optimization, sustainability assessment).

  • Specify the functional unit, system limits (cradle-to-gate or cradle-to-grave), and scope.

2. Process Simulation Modeling

  • Build process flow diagrams (PFDs) to map units, streams, and connections.

  • Input technical data (reaction kinetics, thermodynamics, mass/energy balances).

  • Simulate with tools like Aspen Plus or SuperPro Designer.

  • Validate outputs against experimental, pilot-scale, or historical data.

3. Techno-Economic Analysis (TEA)

  • Estimate CAPEX (equipment, installation, land, construction).

  • Estimate OPEX (raw materials, utilities, labor, waste management).

  • Calculate financial metrics: NPV, IRR, payback period.

  • Run sensitivity analysis on key variables (feedstock cost, yield, energy price).

4. Life Cycle Costing (LCC)

  • Capture costs across acquisition, operation, maintenance, and end-of-life.

  • Apply discounting to calculate Net Present Cost (NPC).

  • Allocate shared costs among co-products where relevant.

  • Compare alternatives to evaluate cost trade-offs.

5. Integration & Interpretation

  • Combine insights from simulation, TEA, and LCC.

  • Identify technically feasible, economically viable, and sustainable pathways.

  • Deliver decision-ready outputs (reports, dashboards, scenario analyses).