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Life cycle costing and life cycle assessment on Industrial S

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Ben Zhu

on 21 August 2013

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Transcript of Life cycle costing and life cycle assessment on Industrial S

Life cycle costing and life cycle assessment on Industrial Symbiosis
To perform the assessments in a life cycle approach is a novel way of thinking, implementing one of the key tools of Industrial Ecology on one of its hot spots – industrial symbiosis.
Literature review
Broadening of LCA
Conclusions & discussion
Ben Zhu


August 2013

Thesis of Erasmus Mundus Master in Industrial Ecology

Graduation committee:
Dr. Gijsbert Korevaar, Delft University of Technology
Dr. Callie Babbitt, Rochester Institute of Technology

Life cycle costing and life cycle assessment on Industrial Symbiosis
Life Cycle Costing
Integrating LCC and LCA
Life cycle assessment
Case study
Industrial symbiosis
Qualitative research on IS
Quantitative research on IS
“Life cycle thinking is the prerequisite of any sound sustainability assessment. It does not make any sense at all to improve (environmentally, economically, or socially) one part of the system in one country, in one step of the life cycle, or in one environmental compartment, if this 'improvement' has negative consequences for other parts of the system which may outweigh the advantages achieved” (Klöpffer 2003)
One is that the objective of LCA not only limits to single product or service, but includes the whole system even several connected industrial system
The scope of LCA can also be enlarged to incorporate economic assessment.
Types of LCC
Traditional LCC (ISO 2008)
Conventional LCC
Environmental LCC
Social LCC (Hunkeler et al. 2008)
Financial LCC
Environmental LCC
(Carlsson Reich 2005)
Difference between LCC and LCA
To have a unified structure of LCC and LCA or an expanded LCA incorporating LCC:
1. The system boundary of the two assessments should be consistent (nearly identical)
2. And the scope of the method should naturally consist of economic and environmental aspects.
3. As LCA is a steady-state model, the whole method should also in steady state instead of quasi-dynamic, unless LCA evolves to a higher resolution, consisting a temporal characterization.
4. The method should be a management-oriented tool rather accounting oriented. It should be a tool of assisting decision making for individual, organizations or even system coordinator.

LCI-based LCC
For whom this analysis is conducted
Steady - state, same as LCA
It is regarded as
cost modeling

Separate scope
Costs bears or LCC from the perspectives of: Supply chain, producers, user , end-of-life owner, all stakeholders (all the life cycle)
Symbiosis in nature
Both species benefits from the short and long term interaction, which results a higher chance of survival in the environmental
Industrial symbiosis
Engaging traditionally separate companies in a collective approach
Types of IS
By-product synergy
Utility synergy
Supply synergies
Qualitative assessments give a decent understanding of the performances of the symbiosis, but it fails to address the issue of presenting quantitative results to stakeholders
The focus is mainly on the estimation of volume of exchange flows and finally the costs changes brought by the action of the establishment of symbiosis
Benefits brought about the avoidance of upstream activities & Trade-offs of introducing symbiosis are neglected
Existing LCA on IS
Critical analysis
Functional unit
System boundary
Comparable alternatives
For industrial symbiosis analysis, the function of which has two aspects,
•Firstly, the industrial symbiosis as an industrial cluster is providing products for the society. This is the function that focuses rather on the system itself. So here the total products provided to the society from the symbiosis can be the functional unit.

•The other function that industrial symbiosis can provide focuses on single product itself. For example, if one industrial symbiosis produces car, the function unit of car as elucidated above, can be adopted as the functional unit.

Alternatives are always compared in the reference of the functional unit. For example, one industrial system produces certain product mix to the society as a functional unit; the alternative industrial system should also produce the same amount of production mix
Cradle to gate
Entry to gate
Cradle to grave
One common feature is that they all have adopted or modified LCA for the evaluation of their specific cases rather than developing a general methodology that covers the special features of applying LCA on industrial symbiosis
Most of the cases define the functional unit as the annual production of the symbiosis directly or indirectly. So that it can be interpreted that the function of symbiosis is to provide certain amount of products to the society while the functions of the delivered products are not mentioned.
(Singh et al. 2007) has two alternatives but the products produced from the two systems are not same.
(Sokka 2011) uses allocation method to align the products mix from stand-alone cases with the mix of the symbiosis case to achieve a comparable LCA results
Material flow quantification is a prerequisite for the analysis. Regard company as subsystem. Connecting these subsystems together forms inflow and outflow quantification of the symbiosis as a system
System boundary discussed in these cases is from “cradle to gate” or “entry to gate”. None of these cases have a “cradle to grave” approach, which means all the downstream impacts of these products are neglected.
Data availability, practicality and products serving as intermediate input for other industries are the main reasons
Introduction and research question
Research purposes
System boundary: As the delivered products from all the alternatives are the same, activities happening in the use phases and downstream disposal phases of these products can be regarded as same, thus the system boundary “cradle to gate”
When firms are operating on their own, as extra by-product might be delivered outside of the boundary, the products delivered by reference cases will become more than these from the symbiosis case both in terms of quantity and type. But the functional unit defined for both alternatives are the production mix of the symbiosis, so that allocation method should be used on the stand-alone cases to separate the emission of the surplus by-products.
Functional unit: Total production from the symbiosis over certain period of time

Not choosing sector average technology as LCA alternatives
1.The selection of sector average technology is subjective
2.Using sector average technology as alternative also fails to address the goal of the research, which is to quantify the benefits of symbiosis
The hypothetical case is the symbiosis, while the stand-alone firms are currently in operating. In order to establish life cycle inventory data, the data can be collected from the onsite firms. However, as the symbiosis does not exist in reality, inventory data regarding symbiosis is relevant with how individual firms interacting with each other.
1.The functional unit is always defined by the production of symbiosis side;
2.Stand-alone cases have to modify their output and input according to the functional unit to be comparable with symbiosis case;
3.Material flow quantification of symbiosis is based on inventory results of stand-alone cases with focuses on the interactions of materials as the consequence of the forming symbiosis linkages;
4.Symbiosis system avoids the raw material input for firms receiving exchanged products and materials. In addition, the firms providing wastes for others also avoid the associated impacts with these waste treatment processes.

A LCC & LCA Framework
Only if LCC and LCA share the same boundary, can the assessment be called an integrated framework
Stand-alone firms as reference scenario
If the purpose is only to quantify the environmental differences between symbiosis and stand-alone case, only the changes induced by the by-product exchanges need to be identified. These changed processes are characterized and multiplied with impact assessment categories to achieve the environmental impact differences
LCC from the perspective of the symbiosis or of individual firm has “entry-gate” as its system boundary

This system boundary actually doesn’t have upstream nor downstream considerations. LCC from these perspectives resembles normal costing analysis for the company

Only when multiple actors in the life cycle stages are analyzed, e.g. (symbiosis + supply chain), can the LCC have life cycle approach.

Even if the system boundary of LCC and LCA is inconsistent, assessments can be conducted separately

Establishing an integrated framework for the aim of advocating the integrated framework

“Marketing the fur before the bear has been shot”
The consequences of system-wide economic and environmental changes of improving or expanding symbiosis in the future can be assessed by consequential LCA
This paper treats the symbiosis as a multifunctional process. So that the consequential LCA analysis discussed in (Ekvall & Weidema 2004) can be directly applied. The dependencies of multiple products of the symbiosis can be analyzed. What activities should be included in the inventory as a result of a change, can be an interesting topic for future research
Thank you for your attention!
Q & A
Peer reviewed
Proceedings of 7th international Society for Industrial Ecology Biennial Conference
Full transcript