The TCO tool helps the customer choose the most suitable pre-insulated piping system for both fixed and flexible systems in terms of Total Cost of Ownership (TCO) and makes it easy to conduct sensitivity analyses with different requirements.
The Total Cost of Ownership calculation takes into account investment costs for pre-insulated materials, excavation works, installation as well as operating costs for heat loss and carbon allowance. Investment costs can be adjusted to reflect local conditions. You can also use your own prices when comparing projects.
The TCO tool budgets the energy company’s project according to:
- Channel meterage per dimension of pipework
- The customer’s requirements for design data such as flow and return temperature in summer and winter winter, ground temperature, laying depth etc.
- The customer’s requirements regarding the calculation period and energy price
- The customer’s requirements regarding the fuel mix and carbon allowance price
These requirements are used to calculate Total Cost of Ownership across all potential systems for the dimensions involved in the project and the system with the lowest Total Cost of Ownership being highlighted. Potential systems might be:
- Single-pipe or TwinPipe
- Series 1, 2 or 3
- Pipe with of without diffusion barrier to ensure consistent heat loss over its lifetime
In addition to Total Cost of Ownership, the TCO tool also calculates the following:
- Heat loss in the first year
- CO2 emissions over the calculation period
- Comparison of two projects and calculation of payback time for additional investment in the better insulated system
- When comparing two projects, the customer can use investment costs from projects with specifically calculated budgets
For further questions or assistance, please contact our Product & Academy Manager Peter Jorsal - peter.jorsal@kingspan.com