Hi,
We are planning to set up a food processing factory here in West Africa.
One of the challenging issues here is power which is virtually non-existent from the national grid. The other options are using Diesel or gas (CNG) fired generator sets.
To help me compare the operating costs of both options (i.e Diesel vs CNG) , is it fair to create an equation as follows and then fix numbers onto it? -
Equation -
1 litre of Diesel = xyz Kilowatt Hours
1 Standard Cubic Metre of CNG = xyz Kilowatt hours
As we know the cost of 1 litre Diesel & 1 SCM of CNG , we could now divide this cost with the "xyz" number in the equation above, which should be a simple way to compare cost advantage of using CNG over Diesel.
To be more specific ,
1 Litre Diesel = 1USD
1 SCM of CNG = 0.2USD
Assuming the equation is as follows -
1Litre Diesel = 3Kilowatt hours and
1 SCM of CNG = 3Kilowarr hours , this would mean that the cost per kilowatt hour is as follows -
For Diesel , 1USD/3Kilowatt hours = 0.333USD and
For CNG , 0.2USD/3Kilowatt hours = 0.07USD
Therefore CNG is cheaper than Diesel by 80%. I have just assumed 3Kilowatt hours as the figure for each unit of fuel (Diesel & CNG).
Can somebody help please.
Warm Regards
Baiju
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