Life cycle cost – the most important factor for new equipment purchases Deciding factors for equipment purchases for end users (Ranking from 1 to 5 with 5 being the most likely) End users that do not have any low-charge ammonia installations at the moment were asked which factors they consider most important for their purchasing decision. The most important factor for buying a low-charge ammonia system was lower life cycle cost compared to competing technologies. Another important driver was the benefit of factory-tested systems, which means a smoother start-up process.
Lower total life cycle cost (total cost of ownership) compared to competing technologies: Lower capital cost than competing technologies Factory-tested systems, meaning a smoother start-up process Faster installation time compared to competing technologies Opportunity to “customize” standard products to suit my business needs Incentives to reduce capital cost of equipment Shorter lead times compared to competing technologies
4.5 4 4 3.5 3.5 3.5 3
More than 75% are willing to pay a premium When all the respondents were asked if they, or their customers, would pay a premium to reduce the ammonia charge, 30% answered that they would be ready to pay a premium of 5% on capital cost. 35% are even ready to pay 10%. 22% of the respondents answered this question with “no”. These results indicate that the capital costs are not as important to study participants as the overall costs, including operation and maintenance of the installations.
30%
35%
YES up to 5% on capital cost
YES up to 10% on capital cost
13%
22%
YES more than 10% on capital cost
NO
199 respondents
15 respondents
92
Future of low-charge ammonia
AMMONIA21